◆ SpookStack

To: Counterterrorism From: Office of the General Counsel Re: 319X-HO-Al1487720-0G6C 04/11/2006 reimbursement of costs for information obtained from financial institutions to which NSLs are issued under Section 3414(a)(5) (A); Title 12, Code of Federal Regulations (CFR), Part 219, and Appendix A, provides a reimbursement of costs schedule.’ The Fair Credit Reporting Act {FCRA), 15 U.S.C. § 1681lu, requires reimbursement of costs for financial institution listings and consumer identifying information obtained from credit reporting companies but no reimbursement schedule has been promulgated.’ Its counterpart, FCRA, Section 168lv, enacted as part of the 2001 USA Patriot Act, providing for full credit reports in international terrorism cases, does not authorize reimbursement of costs. Variations in Cost Reimbursement Policy Among FBI Field Offices The differences in the payment provisions of the NSL statutes have caused field offices to adopt varying policies as to whether they pay bills that are submitted by NSLs recipients. When bills are submitted by RFPA NSL recipients, the rules are clear, Field offices must and do pay for such NSLs based on the reimbursement of costs schedule set out in the CFR. When bills are submitted by ECPA NSL recipients, where reimbursement is not reguired, some field offices pay the bills as submitted, others negotiate the amount of the charge, and others flatly refuse to pay. As to credit reporting companies responding to 168lv NSLs,? at least one such company submits bills which, to date, we have paid. With respect to credit reporting companies responding to 1681lu NSLs, at least two have a policy of submitting bills, which we pay or intend to pay. While there is no fee schedule ' RFPA, Section 3415 provides that "a Government entity shall pay to the financial institution assembling or providing financial records pertaining to a customer and in accordance with procedures established by this chapter a fee for reimbursement of costs as reasonably necessary and which have heen directly incurred in searching for, reproducing, or transporting books, papers, records, or other data required ro requested to be produced. The Board of Governors of the Federal Reserve System shall, by regulation, establish the rates and conditions under which such payment shall be made. Under 12 C.F.R. $219.3, Appendix A, a fee schedule has bean adopted, under which photecopyirg is reimbursable at $.25 per page and searching is reimbursable at $11 per hour for clerical staff. 2 FCRA, Section 1681u(e} provides that “{tjhe Federal Bureau of Investigation shali, subject to the availability of appropriations, pay to the consumer reporting agency assembling or providing report or information in accordance with procedures established under this section a fee for reimbursement for such costs as are reasonably necessary and which have been directly incurred in searching, reproducing, or transporting books, papers, records, or other data required or requested to be produced under this section." The three mator credit reporting companies are Experien, Transunion, and Equifax.