The FCRA, enacted in 1970, brought the consumer reporting industry under federal regulation, provided consumers with various rights and protections, and imposed certain duties and obligations on the industry and businesses that supply and use the information contained in consumer reports.

The FCRA preempts state law in prescreening, use of consumer reports to make credit decisions, the furnishing of information to consumer reporting agencies, and the sharing of information with affiliated corporations.

If preemption is not secured beyond January, states will be able to pass regulations on how financial institutions may offer credit. The resulting patchwork of varied legislation will hinder the ability of financial institutions to offer credit nationwide. Random standards, in turn, will result in higher costs for the consumer.

Acknowledging the need for immediate action, AFSA has set up a FCRA working group. Comprised of AFSA members throughout the industry, this working group has grown dramatically in the past month. The working group's goal is to explore all available avenues to ensure the expiration date is extended past the January 1, 2004 deadline. Member companies interested in more information about the working group may contact AFSA's George McElwee at (202) 296-5544, ext. 672.