The Federal Trade Commission ("FTC") proposed a rule requiring nationwide consumer reporting agencies ("CRAs") to provide a free electronic credit monitoring service for active duty military consumers. The proposal - which arises from the Economic Growth, Regulatory Relief and Consumer Protection Act - would amend the Fair Credit Reporting Act.
The proposed rule would require CRAs to notify active duty military consumers within 24 hours of any material additions or modifications to their credit file. The notification would be triggered by credit file changes, including: (i) new accounts opened in the consumer's name, (ii) inquiries or requests for a consumer report, (iii) changes to a consumer's name, address or phone number, (iv) changes to credit account limits or (v) "negative information," such as delinquencies, late payments, insolvency or any form of default.
Comments must be submitted within 60 days after the date of publication in the Federal Register.
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