Full text of FDIC Consumer News : January 1981

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FDlct
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/ •· . EDITOR: Josie Downe)I

The Bank Customer's Publication

'-----How the FDIC Offers Protection To Consumers:
• By insuring bank customers' deposits up to $100,000
• By regulating insured State-chartered banks that are not members of the Federal Reserve
System {insured State non-member banks)
• By having FDIC bank examiners promote and maintain the safety and soundness of the
banking system through examinations
• By having FDIC examiners ensure that the banks are complying with the federal
consumer protection and civil rights laws.

If you had to take a quiz on how much you
know about consumer credit laws, how high
would you score?
If you feel that you would not s_c ore well on such
a quiz, read this newsletter and th9se that
follow. This is the first edition of a monthly
newsletter to be published by FDIC to help
educate bank customers about the consumer
credit and civil rights laws.

PREPARED BY THE DIVISION OF BANK SUPERVISION
Federal Deposit Insurance Corporation
Washington, D.C. 20429

Januar~ 1981

VIEWPOINT
WHAT YOU SHOULD KNOW ABOUT YOUR CREDIT REPORT
Many people have probably never reviewed a copy of
their credit report. In this automated age when computers
store extensive information on individuals, it is imperative that you understand the nature and extent of information maintained and provided by credit reporting
agencies.
A typical credit report contains a consumer's name,
current and previous address, employer's name and
address, social security number, year of birth, and the
name of the consumer reporting agency.
In the sample credit profile provided with this newsletter, which the TRW Information Services Division has
allowed us to use, the right hand column contains a
detailed explanation of the computer codes which may be
used in a report. The code numbers are different for each
reporting agency and you should ask the credit agency to
interpret these codes if you do not understand them.
It is important that you understand the "payment profile" because any payment received after the date specified
in the loan contract is reflected in the credit report. Potential creditors often interpret this information to mean
possible delinquency in meeting credit obligations. This is
sufficient reason under the consumer credit laws for a
lender to deny a request for credit.

This information may also include late payments which
occurred as much as seven years earlier. Other adverse
information may include any judgments or bankruptcies.
The law regarding bankruptcies was recently changed and
the length of time this information may be reported by
credit agencies is now 10 years instead of 14 years.
The Fair Credit Reporting Act is enforced by the Federal Deposit Insurance Corporation on nonmember
banks and was passed by Congress to ensure consumer
protection against unfair or inaccurate consumer reports.
If you discover that a consumer report is inaccurate, the
law requires that the credit reporting agency reinvestigate
and correct or update the information. The agency must
also notify anyone who received inaccurate or incomplete
information. You may request the credit agency to add to
your credit record a statement describing any dispute or
disagreement, so that it will be furnished to anyone
requesting credit information about you.
Although all agencies' policies vary, some will provide
the consumer with a copy of his or her credit report upon
request and free of charge, if the consumer is denied
credit. If the consumer is not denied credit but wishes to
examine his or her file, the agency usually will charge the
consumer between $3 and $5 for a copy.

LO QUE USTED DEBE SABER SOBRE SU INFORME DE CREDITO
Muchas personas jamas han examinado una copia
de su informe de credito. En la presente era de
automatizaci6n cuando las computadoras almacenan
informaci6n extensa sobre individuos, es imperativo
que usted conozca la naturaleza y amplitud de la
informaci6n que es mantenida y suministrada por las
agencias de informaci6n de credito.
Un informe de credito tipico incluye el nombre del
consumidor, la direcci6n corriente y las direcciones
previas, el nombre y la direccion del patron, el numero
del seguro social, la fecha de nacimiento, y el nombre
de la agencia de informacion s6bre el consumidor.
lncluimos en este boletin un modelo de un informe
de credito. Este modelo incluye en la columna derecha
una explicacion detallada de los numeros cl aves de la
computadora que pueden ser asignados a un informe.
Usted debe indicarle a la agencia de informacion de
credito que le suministre una explicaci6n de los
numeros claves, ya que estos pueden ser diferentes
en cada agencia.
Es importante que usted conozca el historial de
pagos en un prestamo, ya que cualquier pago recibido
_despues de la fecha especificada en el contrato del
prestamo puede ser incluido en el informe de credito.
Los acreedores frecuentemente interpretan esta informacion como un factor indicador de morosidad en
el cumplimiento con las obligaciones de credito. Bajo
las leyes de credito del consumidor este factor puede
ser la razon para que un prestamista le niegue credito
a un solicitante.
El informe de credito puede incluir los pagos
atrasados que se efectuaron por un periodo de siete

anos. La informaci6n adversa tambien puede incluir
cualquier fallo judicial o quiebra. Recientemente la
ley sobre quiebra fue modificada y el periodo que
dicha informaci6n puede ser divulgada por las
agencias de informacion de credito es de 10 en vez de
14 anos.
La Corporacion Federal de Seguro de Dep6sitos vela
por el cumplimiento de la Ley Sobre Justa lnformacion de Credito en los bancos de caracter Estatal que
no son miembros del Sistema de la Reserva Federal.
Esta ley fue aprobada por el Congreso para proteger a
los consumidores de la circulacion de informes sobre
el consumidor incorrectos y obsoletos. Si usted
descubre que un informe sobre el consumidor incluye
informaci6n incorrecta la ley requiere que la agencia
de informaci6n de credito reinvestigue y corrija o
ponga al dia dicha informaci6n. La agencia de informacion de credito tiene que notificar a aquellos
que recibieron informaci6n incorrecta o incompleta.
Usted tambien puede exigir a la agencia de informacion de credito que incluya en su expediente su
version de cualquier discrepancia o disputa ya que
esta sera suministrada a cualquiera que la solicite.
Si al consumidor le niegan credito, el puede solicitar
informaci6n al respecto. Algunas agencias de informacion de credito le proveeran libre de gastos una
copia del informe de credito. Si a este no le niegan
credito, pero desea informacion sobre el mismo, la
agencia de informacion de credito puede cobrarle de
$3 a $5 por una copia del informe de credito.

TRWcREDIT DATA

EASTERN REGION

SAMPLE UPDATED CREDIT PROFILE
PRMOUS

APPLICANT'S

CURRENT

ADDRESSES

NAME

ADDRESS

TYPE, TERMS

AND AMOUNT

SUBSCRIBER

SOCIAL
SECURITY

YEAR OF

NUMBER

BIRTH

EMPLOYMENT

CONFIDENTIAL

1. Name and address as reported by a
subscriber and stored in the computer.
2. Employment name and address as
reported by a subscriber on the date
shown and stored in the computer.

3. Columns under Account Profile indicates
negative, non-evaluated and positive
status comments.
SS# 548603388

4. A and M indicate the method by which
the credit grantor reports information to
TRW:
(M) Manual: Manually prepared form.
(A) Automated: Automated tapes,
prepared from the credit grantor's
computer.

5. Name and number of reporting
subscriber.
7-78
A

@-{A
M

BAY CO
CURWAS60

10-78

6-75
10-Y

BOWERS
CURR ACCT

9.75

8-75

WISTERIA FIN
PAID SATIS

7.75

6-74

HILLSIDE BK
INQUIRY

7-18-78

6. Assooiation Code.

$600

$437

986543184026
2-12-79

ccccccc321cc

$300

$206

46812391013
2-11-79

cccc2ccccccc

212250
D
12

$500

1140018
AUT

$5300

REVOLVING CREDIT CORP
INQUIRY
2-27-79

1600829
ISC

$800

GROVE CREDIT UNION
INQUIRY
10-15-78

1784340
H/I

$1000

SPR CT TRENTON
COURT JUDGMENT 9-19-77
*ATTN* FILE VARIATI

1011207

10. Date account opened; type, terms and
amount of account when opened.
11. Balance on account, date input, and
amount past due, if applicable.
12. 1 2-Month Payment Profile-Shown are
the definitions of the coding that will
display in the 12-month payment profile
for balance reporting subscribers only.

07505853
JONES

$300

JOHN OCONSUMER
10655 BIRCH ST
BROOKLYN NY 11201
GARDEN FIN
DELIN0 90

2-79

TRW CREDIT DATA WILL ACCOMMO
IN ACCORDANCE WITH THE FAIR CRE

8. Current status of account.

9. The status shown in Number 8 is as of
this date.

5238610

1542240
SEC

7. Account or Docket Number.

$49

241870
2-15-79

ER STAT MENT

$49 21 cccccccccc

END

-Current
C
1
-30 days past due
-60 days past due
2
3
-90 days past due
4
-1 20 days past due
-1 50 days past due
5
-180 days past due
6
-(Dash) -No history has been reported
for that particular month.
Blank
-No history maintained, see
status comment.
13. Two lines of data for each transaction.

14. Legal data: Court name, court code,
docket number, public record items, filing
date, amount, judgment creditor.
@

TRW INC.

1971, 1978

15. File Message-Indication of a variation
between the input data and file
identification.
16. Up to 100 word statement by consumer
request.

IMPORTANT: Use of !his information is governed by !he rerms and conditions of !he subscriber c;igreemenr. NOTE: Ir is pos.sible rhor all of !he above Information may nor pertain ro !he indMdual
inquired upon unless otherwise nored. Employmenrs shown on !his report ore os reported by subscribers.

TRWcREDIT DATA. a division of TRW Inc.
1521/109 E
Rev. 8180

TRWcREDJT DATA

EASTERN REGION
modelo de un

lnforme de Credito
Direccion
Previa

Nombre
del
Solicitante

Numero
del
Subscriptor

Direccion
Actual

Numero
del
Seguro
Social

Clase, T,rminos
y Cantidad

Fecha
de
Nacimiento

1. Nombre y direcci6n divulgados por el
subscriptor y almacenados en la
computadora.

Empleo

CONFIDENTIAL

SS# 548603388

2. Nombre y dir.e.cci6n del empleo
divulgados por el subscriptor en la fecha
indicada y almacenados en la
computadora.
3. Las columnas bajo el encabezamiento
"account profile"' (historial de cuenta)
indican comentarios negativos,
comentarios no evaluados y comentarios
positivos.

4. Las iniciales "A"' y "M" indican el
metodo por el cual el otorgante de credito
divulg6 la informaci6n al TRW (agencia
de informaci6n del consumidor):
(M) Manual : si el formulario fue preparado manualmente
(A) Automatizado: si el formulario fue
preparado por la computadora del
otorgante de credito.
5. Nombre y numero del subscriptor que
divulga informaci6n.
6. Numero clave de la asociaci6n.

7-78

6-75

$600

$437

986543184026
2-12-79

cccccccJ21cc

$206

46812391013
2-11-79

cccc2ccccccc

A
10-78

10-Y

@-{A

BOWERS
CURR ACCT

9-75

8-75

WISTERIA FIN
PAIO SATIS

7-75

6-74

HILLSIDE BK
INQUIRY

7-18-78

A
M
A

$300

8. Estado corriente de la cuenta.

212250
1542240
SEC

0
12

$500

1140018
AUT

$5300

REVOLVING CREDIT CORP
INQUIRY
2-27-79

1600829
ISC

$800

GROVE CREDIT UNION
INQUIRY
10-15-78

1784340
H/1

$1000

SPA CT TRENTON
COURT JUDGMENT 9-19-77
*ATTN* FILE VARIATI

1011207

2-79

TRW CREDIT DATA WILL ACCOMMO
IN ACCORDANCE WITH THE FAIR CREDIT REPORTING CT.

9. El estado que se refleja en al numero 8
es a partir de esta fecha.

10. Fecha en que se abri6 la cuenta, la clase,
los terminos, y la cantidad de dicha
cuenta.

5238610

11. Balance de la cuenta, fecha en la cual se
hizo la entrada, y si es pertinente la cantidad sobrevencida.
12. Historial de pagos durante 12 meses: en
el historial de pagos de 12 meses
mostramos las definiciones de las claves
que exhiben el balance de los
subscriptores que divulgan informaci6n.

07505853
JONES

$300

JOHN QCONSUMER
10655 BIRCH ST
BROOKLYN NY 11201
GARDEN FIN
DELINQ 90

7. Numero de cuenta o numero de registro.

$49

241870
2-15-79

ER STAT MENT

$49 21 cccccccccc

C
1
2
3
4
5
6
-(raya)

END

Blanco

-al dia
-30 dias sobrevencido
-60 dias sobrevencido
-90 dias sobrevencido
-1 20 dias sobrevencido
-1 50 dias sobrevencido
-1 80 dias sobrevencido
-No han divulgado historial
para ese mes en particular.
-Vea los comentarios, no han
mantenido historial.

13. Dos lineas de datos por cada transacci6n.

TRW INC.

1971. 1978

14. Datos legales: nombre de la corte, c6digo
de las corte, numero del registro,
articulos de registros puQlicos, fecha de
archivo, cantidad y decision del acreedor.

15. Mensaje en el archivo: indicaci6n de cualquier discrepancia entre los datos entrados
y la identificaci6n del archivo.

16. Declaraci6n (de hasta 100 palabras)
solicitada por el consumidor.
IMPORTANT: Use of this information is governed by the rerms and conditions of the subscriber agreement. NOTE: It is possible that all of the above information may not pertain to the individual
inquired upon unless otherwise noted. Employments shown on this report ore as reported by subscribers.

TRWcREDIT DATA.

a division of TRW Inc

1521/109 E
Rev. 8/80

QUESTIONS FROM BANK CUSTOMERS
QUESTION:

ANSWER:

QUESTION:
ANSWER:

,
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QUESTION:

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ft

ANSWER:

Is there a grace period in which to cancel
the original purchase of a certificate of
deposit (CD)?
No, however, if you already have acertificate of deposit and it reaches its
maturity date, there may be a grace
period to either renew the CD or withdraw the money. Check the language on
your CD.
What is the highest interest rate a lender
can charge on a loan?
Maximum interest rates are controlled
by the individual States and rates may
vary from State to State. To find out the
allowable rate for your Stat~, contact
the State Banking Authority or Commission.
How long can a bank put a "hold" on a
check? (Delay in making funds deposited by a consumer available for withdrawal)
This depends on the individual bank's
policy. The period may vary from immediate credit to more than IO days on
certain out-of-state banks. Banks usually consider the type .of check and the
payor as well as the location of the payor's bank in establishing criteria for
delaying the availability of funds.

CONSUMER HOTLINE - 800-424-5488

DOs AND DON'Ts
DO

Do obtain and retain deposit slips until your account has
been credited, as reflected on your statement.
DON'T!

Don't wait more than 24 hours to report lost or stolen
cards.
DO

Do keep a list of your credit card numbers and immediately notify all card issuers if your credit cards are lost
or stolen.

ANYTOWN BANK
CREDIT

CARD

7412 5789 4580 5209
Carol Cardholder

YOU ARE LIABLE FOR UNAUTHORIZED CREDIT
CARD USE ONLY IF:

REMEMBER CONSUMERS ARE PROTECTED BY
THE TRUTH IN LENDING ACT!

1. The card was issued at your request.
2. The card issuer provided some means, such as a line for
your signature or a photo, for stores that accept the
card to identify you as the person authorized to use it.
3. The card issuer notified you of your maximum potential $50 liability.
4. The card issuer provided you with a self-addressed
envelope or form to notify them of loss or theft.

The TILA requires creditors to disclose credit finance
charges and annual percentage rates. The TILA protects
consumers against unauthorized credit card use. The
TILA regulates the advertising of credit terms. The TILA
gives the consumer cancellation rights when a home is
used as security in a credit transaction. For additional
information about the TILA, request a copy of the pamphlet "Truth In Lending Act" from the FDIC.

WHAT YOU SHOULD KNOW ABOUT SUPERVISORY AGENCIES
If you have a consumer or civil rights complaint against a lending institution regulated by one of these supervisory
agencies, you are urged to first try to resolve your problem directly with the institution. If, however, you are unable
to do so, please write to the supervisory agency that regulates your financial institution.
If you are unable to decide which agency to contact, call the FDIC on the toll free number - 800-424~5488.
OFFICE OF THE COMPTROLLER OF THE
CURRENCY

The Office of the Comptroller of the Currency (OCC)
was established in 1863 as a bureau of the Treasury
Department. It is headed by the Comptroller who is
appointed by the President, with the advice and consent
of the Senate, for a 5-year term. The OCC regulates
national banks.
Comptroller ofthe Currency, Consumer Community &
Fair Lending, Examination Division, Washington, D.C.
20219
FEDERAL RESERVE SYSTEM

The Federal Reserve System (FRS) was established in
1913. It is headed by a seven member Board of Governors,
each of whom is appointed by the President with the
advice and consent of the Senate for a 14 year term. The
President selects two Board members to serve 4-year
terms as Chairman and Vice-Chairman. The FRS regulates State-chartered banks that are members of the FRS.
Division of Consumer & Community Affairs, Board of
Governors of the Federal Reserve System, 20th and Constitution Avenue, N.W., Washington, D.C. 20551

Department of Consumer & Civil Rights, Federal Home
Loan Bank Board, 1700 G Street, N.W., Washington,
D.C. 20552
FEDERAL DEPOSIT INSURANCE CORPORATION

The Federal Deposit Insurance Corporation (FDIC)
was created in 1933 as the third federal bank regulatory
agency. Jt is headed by a three-member Board of Directors, no more than two of whom may be of the same
political party. Two 9f the Directors are appointed by the
President with the advice, and consent of the Senate for
6-year terms, and one of those two is elec_ted by the Board
to be Chairman. The Comptroller of the Currency is the
third Board member and serves on the Board during his
or her tenure a~_Comptroller. The ·FDIC regulates insured
State-chartered commercial and mutual savings banks
that are not members of the Federal Reserve System.
Office of Consumer and Compliance Programs, FederalDeposit Insurance Corporation, 550 17th Street, N. W .,
Washington, D.C. 20429
NATIONAL CREDIT UNION ADMINISTRATION
The National Credit Union Administration (NCUA)

FEDERAL HOME LOAN BANK BOARD

The Federal Home Loan Bank Board (FHLBB) was
established in 1932. It is headed by a bi-partisan threemember Board. Members of the Board are appointed by
the President with the advice and consent of the Senate.
Each member is appointed for a 4-year term. The Board is
headed by a Chairman who is designated by the President. The Board regulates federally chartered savings and
loan associations and supervises the Federal Home Loan
Bank System and the Federal Savings and Loan Insurance Corporation (FSLIC).

was created in 1970 to charter, examine, supervise and
provide insurance for all federal credit unions and those
state-,chartered credit unions which apply and are
accepted for insurance. The NCU A is headed by a sevenmember Board appointed by the President with the
advice and consent of the Senate, for 6-year terms. The
· Board consists of a Chairman, named by the President,
and one member from each of the six regions.
National Credit Union Administration, Division of Consumer Affairs, 1776 G Street, N.W., Washington, D.C.
20456

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Full text of FDIC Consumer News : January 1981

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