Two weeks ago, I addressed language placement in a consumer credit contract concerning reporting missed payments, late payment or other defaults to credit bureaus required by the Fair Credit Reporting Act (FCRA). See Back to Basics Continued—Let’s Talk About Language Placement—Negative Information Reporting Under the Fair Credit Reporting Act. And, last week I addressed language placement in a credit application under the Equal Credit Opportunity Act. See Back to Basics, Continued—Let’s Talk About Language Placement (Part II)—the Credit Application. This week I address required language in a “live check” or “check-in-the-mail” under the FCRA.

Those creditors using live checks should be accustomed to seeing two sets of notice language—both advising the consumer in a simple and easy to understand manner that the consumer has the right to opt out of receiving prescreened solicitations. The law and regulation refer to the two notices as the “short notice” and the “long notice.”

The “short notice” is a clear and conspicuous statement of the consumer’s right. This notice must be in a type size larger than the type size of the principal text on the solicitation page, but in no event smaller than 12-point type. It must be on the front side of the promotional document and located on the page in a format so that the notice is distinct from other text, such as placed inside a border or “boxed.” Finally, the short notice is to be distinct from the type style of the solicitation, by means of a contrasting color or type style. 

The “long notice” also has to appear within the solicitation clearly and conspicuously. For this notice, larger type must be used in a distinctive style; and this notice must be set apart from other text on the page by use of lines, “boxing” or indentation. Most importantly, the long notice must include the following heading in capital letters and underlined: “PRESCREEN&OPT-OUT NOTICE;”.

I’m not making this stuff up! The language of the two required notices is set forth in the FCRA itself and in Regulation V.

So, take a look at your live checks to make certain that your solicitation format includes these two types of notices; and, that they are included within the manner required.

Practice Pointer: See Back to Basics Continued—The Guaranteed Offer of Credit! for a more detailed discussion of The Guaranteed Offer of Credit.

Please Note: This is the two hundred-thirty-sixth blog in a series of Back to Basics blogs, in which relevant and resourceful information can be easily accessed by clicking Dentons - Consumer Finance Report.