Comments:

U.S. House of Representatives
Committee on Financial Services
2129 Rayburn House Office Building
Washington, DC 20515

April 15, 2004

Re:  FACTA Free File Disclosures Proposed Rule, Matter No. R411005

We are writing to object to the FTC's proposed schedule for implementing the FACT Act's provisions permitting consumers to

obtain a free annual credit report from each nationwide consumer reporting agency.

Section 211(d) of the FACT Act empowers the FTC to establish a mechanism and schedule for consumers to obtain free credit

reports. Understanding the potential burdens to nationwide consumer reporting agencies, Congress (in Section 21 1(d)(4))

also empowered the FTC to "provide for an orderly transition...in a manner that does not temporarily overwhelm such

consumer reporting agencies with requests." Under the law, this transition could begin at any time following the date of

enactment (December 4, 2003), so long as such regulations are:  (A) issued in final form within six months; and (B) become

effective within an additional six months (Therefore, if the proposed rule were issued June 4, 2004, the final rule must

become effective December 4, 2004).

Unfortunately, the proposed rule would treat this "effective date" requirement as a start date (for when free credit

reports should be available to some consumers), rather than an end date (for when they should be available to all

consumers). As proposed, individuals on the east coast would not be eligible for their free reports until September 1,

2005. This approach unnecessarily delays the benefit Congress sought to provide. Given the safe-harbor available to

consumer reporting agencies experiencing "extraordinary request volume," there is no reason to further delay consumer

access to free credit reports. If nationwide credit reporting agencies are "overwhelmed" they will benefit from the

safe-harbor, if they are not overwhelmed, they should not turn away consumers because they live in other sections of the

country.

Given the importance of accurate information to our financial system and the likely improvement in accuracy that will

result from access to free credit reports, it is vital that the FTC revise this rule and make free consumer reports

available to all consumers by December 4,2004.

Thank you for your attention to this request and we look forward to your response.

Barney Frank
Member of Congress

Luis V. Gutierrez
Member of Congress

Brad Sherman
Member of Congress

Harold E. Ford, Jr.
Member of Congress

Stephen Lynch
Member of Congress

Maxine Waters
Member of Congress

Julia Carson
Member of Congress

Barbara Lee
Member of Congress

Joseph Crowley
Member of Congress