To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
In a press release, the Federal Reserve Board approved a final rule amending Regulation B, which implements the Equal Credit Opportunity Act (ECOA). The final rule addresses the collection of applicants' personal characteristics in connection with nonmortgage credit and record retention for prescreened solicitations.
The Board is now creating an exception that will allow creditors to collect personal characteristics in a self-test for compliance with the ECOA. This exception will enable creditors to develop compliance programs that utilize applicant data in a controlled and targeted manner. The self-test must meet standards set by the regulation, which carries out a provision contained in the ECOA.
The final rule is effective April 15, 2003. However, to allow time for any necessary operational changes, the mandatory compliance date is April 15, 2004.
The Board's final rule is attached.
Questions on this matter may be directed at this Bank to Kathleen H. Hollings, Examining Officer, Legal and Compliance Risk.