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FCC/FTC regulations

php111
Regular Contributor

FCC/FTC regulations

If I have a fraud alert (security alert as what companies calls it) on my credit reports. The fraud alert specifically states to call the number before extending credit. What if applying for something like CU membership, where the CU instead insisted in removing the alert, if it is not removed in a certain timeframe than the application is canceled? Does the FCC or FTC have regulations for this?

 

Please move my thread as needed.

Message 1 of 4
3 REPLIES 3
Birdman7
Super Contributor

Re: FCC/FTC regulations

@php111 Did this actually happen? Or is it theoretical and academic?

Because that’s mighty crazy. Congress created that legislation to give you a right to place that alert there for your protection and it’s not right for them to make you remove something that’s designed for your protection. At least not for any valid reason I can conceive in my humble opinion.

I would contact the national credit union administration, NCUA, at 1 800 755 1030, if its a federal CU as they regulate federal CUs. If it is a state chartered credit union, then you need to find the agency that regulates state chartered credit unions in the relevant state.

The FTC does not regulate credit unions and the CFPB has limited oversight.

“ The FTC's authority covers for-profit entities such as mortgage companies, mortgage brokers, creditors, and debt collectors – but not banks, savings and loan institutions, and federal credit unions.” - https://www.ftc.gov/news-events/media-resources/consumer-finance

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Message 2 of 4
php111
Regular Contributor

Re: FCC/FTC regulations

Thanks for your help! I will contact the NCUA as it is a federal CU, and yes, it really does happen.

Message 3 of 4
RobertEG
Legendary Contributor

Re: FCC/FTC regulations

Fraud alerts are a feature of the FCRA, and thus federal law.

 

The statute provides for initial fraud alerts if the consumer simply asserts suspicion of fraud/identity theft, while extended fraud alerts require that an actual fraud/identity theft has occured.

 

Imposition of fraud alerts are sanctioned on request of the consumer, and there is no provision for a creditor to remove them.

Message 4 of 4
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