The Fair Credit Reporting Act
As a public service, the staff of Credit.com
posts this version of the Fair Credit Reporting
Act (FCRA), 15 U.S.C. § 1681 et seq. prepared by
the Federal Trade Commission. This version uses
FCRA section numbers (§§ 601-625) in the
headings (The relevant U.S. Code citation is
included with each section heading and each
reference to the FCRA in the text.)This document
is intended only as a convenience for you and
not a substitute for the actual text in the U.
S. Code. The Commission’s website (
www.ftc.gov ) posted this document on
October 20, 2006.
This version includes the amendments to the
FCRA set forth in the Consumer Credit Reporting
Reform Act of 1996 (Public Law 104-208, the
Omnibus Consolidated Appropriations Act for
Fiscal Year 1997, Title II, Subtitle D, Chapter
1), Section 311 of the Intelligence
Authorization for Fiscal Year 1998 (Public Law
105-107), the Consumer Reporting Employment
Clarification Act of 1998 (Public Law 105-347),
Section 506 of the Gramm-Leach- Bliley Act
(Public Law 106-102), Sections 358(g) and 505(c)
of the Uniting and Strengthening America by
Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001
(USA PATRIOT Act) (Public Law 107-56), and the
Fair and Accurate Credit Transactions Act of
2003 (FACT Act) (Public Law 108-159). Many of
the provisions added by the FACT Act will become
effective at different times depending on the
results of rulemaking proceedings announced by
the Federal Trade Commission and other
regulatory agencies.
Table of Contents
§ 601 Short title
§
602 Congressional findings and
statement of purpose
§
603 Definitions; rules of
construction
§
604 Permissible purposes of
consumer reports
§
605 Requirements relating to
information contained in consumer reports
§
605A Identity theft
prevention; fraud alerts and active duty alerts
§
605B Block of information
resulting from identity theft
§
606 Disclosure of investigative
consumer reports
§
607 Compliance procedures
§
608 Disclosures to governmental
agencies
§
609 Disclosures to consumers
§
610 Conditions and form of
disclosure to consumers
§
611 Procedure in case of
disputed accuracy
§
612 Charges for certain
disclosures
§
613 Public record information
for employment purposes
§
614 Restrictions on
investigative consumer reports
§
615 Requirements on users of
consumer reports
§
616 Civil liability for willful
noncompliance
§
617 Civil liability for
negligent noncompliance
§
618 Jurisdiction of courts;
limitation of actions
§
619 Obtaining information under
false pretenses
§
620 Unauthorized disclosures by
officers or employees
§
621 Administrative enforcement
§
622 Information on overdue
child support obligations
§
623 Responsibilities of
furnishers of information to consumer reporting
agencies
§
624. Affiliate sharing
§
625. Relation to State laws
§
626. Disclosures to FBI for
counterintelligence purposes
§
627. Disclosures to
governmental agencies for counterterrorism
purposes
§
628. Disposal of records
§
629. Corporate and
technological circumvention prohibited
This title may be cited as the Fair Credit
Reporting Act.
Table of Contents
(a) Accuracy and fairness of credit
reporting. The Congress makes the following
findings:
(1) The banking system is dependent upon
fair and accurate credit reporting.
Inaccurate credit reports directly impair
the efficiency of the banking system, and
unfair credit reporting methods undermine
the public confidence which is essential to
the continued functioning of the banking
system.
(2) An elaborate mechanism has been
developed for investigating and evaluating
the credit worthiness, credit standing,
credit capacity, character, and general
reputation of consumers.
(3) Consumer reporting agencies have
assumed a vital role in assembling and
evaluating consumer credit and other
information on consumers.
(4) There is a need to insure that
consumer reporting agencies exercise their
grave responsibilities with fairness,
impartiality, and a respect for the
consumer's right to privacy.
(b) Reasonable procedures. It is the purpose
of this title to require that consumer reporting
agencies adopt reasonable procedures for meeting
the needs of commerce for consumer credit,
personnel, insurance, and other information in a
manner which is fair and equitable to the
consumer, with regard to the confidentiality,
accuracy, relevancy, and proper utilization of
such information in accordance with the
requirements of this title.
Table of Contents
(a) Definitions and rules of construction set
forth in this section are applicable for the
purposes of this title.
(b) The term “person” means any individual,
partnership, corporation, trust, estate,
cooperative, association, government or
governmental subdivision or agency, or other
entity.
(c) The term “consumer” means an individual.
(d) Consumer Report
(1) In general. The term "consumer
report" means any written, oral, or other
communication of any information by a
consumer reporting agency bearing on a
consumer's credit worthiness, credit
standing, credit capacity, character,
general reputation, personal
characteristics, or mode of living which is
used or expected to be used or collected in
whole or in part for the purpose of serving
as a factor in establishing the consumer's
eligibility for
(A) subject to
section
624, credit or insurance to be used
primarily for personal, family, or
household purposes;
(B) employment purposes; or
(C) any other purpose authorized
under
section 604 [§
1681b].
(2) Exclusions. Except as provided in
paragraph (3), the term "consumer report"
does not include
(A) subject to
section
624, any
(i) report containing information
solely as to transactions or
experiences between the consumer and
the person making the report;
(ii) communication of that
information among persons related by
common ownership or affiliated by
corporate control; or
(iii) communication of other
information among persons related by
common ownership or affiliated by
corporate control, if it is clearly
and conspicuously disclosed to the
consumer that the information may be
communicated among such persons and
the consumer is given the
opportunity, before the time that
the information is initially
communicated, to direct that such
information not be communicated
among such persons;
(B) any authorization or approval of
a specific extension of credit directly
or indirectly by the issuer of a credit
card or similar device;
(C) any report in which a person who
has been requested by a third party to
make a specific extension of credit
directly or indirectly to a consumer
conveys his or her decision with respect
to such request, if the third party
advises the consumer of the name and
address of the person to whom the
request was made, and such person makes
the disclosures to the consumer required
under
section 615 [§
1681m]; or
(D) a communication described in
subsection (o) or (x).
(3) Restriction on sharing of medical
information. Except for information or any
communication of information disclosed as
provided in section
604(g)(3), the exclusions in paragraph
(2) shall not apply with respect to
information disclosed to any person related
by common ownership or affiliated by
corporate control, if the information is--
(A) medical information;
(B) an individualized list or
description based on the payment
transactions of the consumer for medical
products or services; or
(C) an aggregate list of identified
consumers based on payment transactions
for medical products or services.
(e) The term “investigative consumer report”
means a consumer report or portion thereof in
which information on a consumer's character,
general reputation, personal characteristics, or
mode of living is obtained through personal
interviews with neighbors, friends, or
associates of the consumer reported on or with
others with whom he is acquainted or who may
have knowledge concerning any such items of
information. However, such information shall not
include specific factual information on a
consumer's credit record obtained directly from
a creditor of the consumer or from a consumer
reporting agency when such information was
obtained directly from a creditor of the
consumer or from the consumer.
(f) The term “consumer reporting agency”
means any person which, for monetary fees, dues,
or on a cooperative nonprofit basis, regularly
engages in whole or in part in the practice of
assembling or evaluating consumer credit
information or other information on consumers
for the purpose of furnishing consumer reports
to third parties, and which uses any means or
facility of interstate commerce for the purpose
of preparing or furnishing consumer reports.
(g) The term “file,” when used in connection
with information on any consumer, means all of
the information on that consumer recorded and
retained by a consumer reporting agency
regardless of how the information is stored.
(h) The term “employment purposes” when used
in connection with a consumer report means a
report used for the purpose of evaluating a
consumer for employment, promotion, reassignment
or retention as an employee.
(i) The term “medical information” --
(1) means information or data, whether
oral or recorded, in any form or medium,
created by or derived from a health care
provider or the consumer, that relates to--
(A) the past, present, or future
physical, mental, or behavioral health
or condition of an individual;
(B) the provision of health care to
an individual; or
(C) the payment for the provision of
health care to an individual.
(2) does not include the age or gender of
a consumer, demographic information about
the consumer, including a consumer's
residence address or e-mail address, or any
other information about a consumer that does
not relate to the physical, mental, or
behavioral health or condition of a
consumer, including the existence or value
of any insurance policy.
(j) Definitions Relating to Child Support
Obligations
(1) The “overdue support” has the meaning
given to such term in section 666(e) of
title 42 [Social Security Act, 42 U.S.C. §
666(e)].
(2) The term “State or local child
support enforcement agency” means a State or
local agency which administers a State or
local program for establishing and enforcing
child support obligations.
(k) Adverse Action
(1) Actions included. The term “adverse
action”
(A) has the same meaning as in
section 701(d)(6) of the Equal Credit
Opportunity Act; and
(B) means
(i) a denial or cancellation of,
an increase in any charge for, or a
reduction or other adverse or
unfavorable change in the terms of
coverage or amount of, any
insurance, existing or applied for,
in connection with the underwriting
of insurance;
(ii) a denial of employment or
any other decision for employment
purposes that adversely affects any
current or prospective employee;
(iii) a denial or cancellation
of, an increase in any charge for,
or any other adverse or unfavorable
change in the terms of, any license
or benefit described in
section
604(a)(3)(D) [§ 1681b]; and
(iv) an action taken or
determination that is
(I) made in connection with
an application that was made by,
or a transaction that was
initiated by, any consumer, or
in connection with a review of
an account under
section
604(a)(3)(F)(ii) [§ 1681b];
and
(II) adverse to the interests
of the consumer.
(2) Applicable findings, decisions,
commentary, and orders. For purposes of any
determination of whether an action is an
adverse action under paragraph (1)(A), all
appropriate final findings, decisions,
commentary, and orders issued under section
701(d)(6) of the Equal Credit Opportunity
Act by the Board of Governors of the Federal
Reserve System or any court shall apply.
(l) The term “firm offer of credit or
insurance” means any offer of credit or
insurance to a consumer that will be honored if
the consumer is determined, based on information
in a consumer report on the consumer, to meet
the specific criteria used to select the
consumer for the offer, except that the offer
may be further conditioned on one or more of the
following:
(1) The consumer being determined, based
on information in the consumer's application
for the credit or insurance, to meet
specific criteria bearing on credit
worthiness or insurability, as applicable,
that are established
(A) before selection of the consumer
for the offer; and
(B) for the purpose of determining
whether to extend credit or insurance
pursuant to the offer.
(2) Verification
(A) that the consumer continues to
meet the specific criteria used to
select the consumer for the offer, by
using information in a consumer report
on the consumer, information in the
consumer's application for the credit or
insurance, or other information bearing
on the credit worthiness or insurability
of the consumer; or
(B) of the information in the
consumer's application for the credit or
insurance, to determine that the
consumer meets the specific criteria
bearing on credit worthiness or
insurability.
(3) The consumer furnishing any
collateral that is a requirement for the
extension of the credit or insurance that
was
(A) established before selection of
the consumer for the offer of credit or
insurance; and
(B) disclosed to the consumer in the
offer of credit or insurance.
(m) The term “credit or insurance transaction
that is not initiated by the consumer” does not
include the use of a consumer report by a person
with which the consumer has an account or
insurance policy, for purposes of
(1) reviewing the account or insurance
policy; or
(2) collecting the account.
(n) The term “State” means any State, the
Commonwealth of Puerto Rico, the District of
Columbia, and any territory or possession of the
United States.
(o) Excluded communications. A communication
is described in this subsection if it is a
communication
(1) that, but for subsection (d)(2)(D),
would be an investigative consumer report;
(2) that is made to a prospective
employer for the purpose of
(A) procuring an employee for the
employer; or
(B) procuring an opportunity for a
natural person to work for the employer;
(3) that is made by a person who
regularly performs such procurement;
(4) that is not used by any person for
any purpose other than a purpose described
in subparagraph (A) or (B) of paragraph (2);
and
(5) with respect to which
(A) the consumer who is the subject
of the communication
(i) consents orally or in writing
to the nature and scope of the
communication, before the collection
of any information for the purpose
of making the communication;
(ii) consents orally or in
writing to the making of the
communication to a prospective
employer, before the making of the
communication; and
(iii) in the case of consent
under clause (i) or (ii) given
orally, is provided written
confirmation of that consent by the
person making the communication, not
later than 3 business days after the
receipt of the consent by that
person;
(B) the person who makes the
communication does not, for the purpose
of making the communication, make any
inquiry that if made by a prospective
employer of the consumer who is the
subject of the communication would
violate any applicable Federal or State
equal employment opportunity law or
regulation; and
(C) the person who makes the
communication
(i) discloses in writing to the
consumer who is the subject of the
communication, not later than 5
business days after receiving any
request from the consumer for such
disclosure, the nature and substance
of all information in the consumer's
file at the time of the request,
except that the sources of any
information that is acquired solely
for use in making the communication
and is actually used for no other
purpose, need not be disclosed other
than under appropriate discovery
procedures in any court of competent
jurisdiction in which an action is
brought; and
(ii) notifies the consumer who is
the subject of the communication, in
writing, of the consumer's right to
request the information described in
clause (i).
(p) The term “consumer reporting agency that
compiles and maintains files on consumers on a
nationwide basis” means a consumer reporting
agency that regularly engages in the practice of
assembling or evaluating, and maintaining, for
the purpose of furnishing consumer reports to
third parties bearing on a consumer's credit
worthiness, credit standing, or credit capacity,
each of the following regarding consumers
residing nationwide:
(1) Public record information.
(2) Credit account information from
persons who furnish that information
regularly and in the ordinary course of
business.
(q) Definitions relating to fraud alerts.
(1) The term “active duty military
consumer” means a consumer in military
service who--
(A) is on active duty (as defined in
section 101(d)(1) of title 10, United
States Code) or is a reservist
performing duty under a call or order to
active duty under a provision of law
referred to in section 101(a)(13) of
title 10, United States Code; and
(B) is assigned to service away from
the usual duty station of the consumer.
(2) The terms “fraud alert” and “active
duty alert” mean a statement in the file of
a consumer that--
(A) notifies all prospective users of
a consumer report relating to the
consumer that the consumer may be a
victim of fraud, including identity
theft, or is an active duty military
consumer, as applicable; and
(B) is presented in a manner that
facilitates a clear and conspicuous view
of the statement described in
subparagraph (A) by any person
requesting such consumer report.
(3) The term “identity theft” means a
fraud committed using the identifying
information of another person, subject to
such further definition as the Commission
may prescribe, by regulation. See also
16 CFR Part 603.2
(4) The term “identity theft report” has
the meaning given that term by rule of the
Commission, and means, at a minimum, a
report--
(A) that alleges an identity theft;
(B) that is a copy of an official,
valid report filed by a consumer with an
appropriate Federal, State, or local law
enforcement agency, including the United
States Postal Inspection Service, or
such other government agency deemed
appropriate by the Commission; and
(C) the filing of which subjects the
person filing the report to criminal
penalties relating to the filing of
false information if, in fact, the
information in the report is false.
See also 16 CFR Part 603.3
(5) The term “new credit plan” means a
new account under an open end credit plan
(as defined in section 103(i) of the Truth
in Lending Act) or a new credit transaction
not under an open end credit plan.
(r) Credit and Debit Related Terms
(1) The term “card issuer” means--
(A) a credit card issuer, in the case
of a credit card; and
(B) a debit card issuer, in the case
of a debit card.
(2) The term “credit card” has the same
meaning as in section 103 of the Truth in
Lending Act.
(3) The term “debit card” means any card
issued by a financial institution to a
consumer for use in initiating an electronic
fund transfer from the account of the
consumer at such financial institution, for
the purpose of transferring money between
accounts or obtaining money, property,
labor, or services.
(4) The terms “account” and “electronic
fund transfer” have the same meanings as in
section 903 of the Electronic Fund Transfer
Act.
(5) The terms “credit” and “creditor”
have the same meanings as in section 702 of
the Equal Credit Opportunity Act.
(s) The term “Federal banking agency” has the
same meaning as in section 3 of the Federal
Deposit Insurance Act.
(t) The term “financial institution” means a
State or National bank, a State or Federal
savings and loan association, a mutual savings
bank, a State or Federal credit union, or any
other person that, directly or indirectly, holds
a transaction account (as defined in section
19(b) of the Federal Reserve Act) belonging to a
consumer.
(u) The term “reseller” means a consumer
reporting agency that--
(1) assembles and merges information
contained in the database of another
consumer reporting agency or multiple
consumer reporting agencies concerning any
consumer for purposes of furnishing such
information to any third party, to the
extent of such activities; and
(2) does not maintain a database of the
assembled or merged information from which
new consumer reports are produced.
(v) The term “Commission” means the Federal
Trade Commission.
(w) The term “nationwide specialty consumer
reporting agency” means a consumer reporting
agency that compiles and maintains files on
consumers on a nationwide basis relating to--
(1) medical records or payments;
(2) residential or tenant history;
(3) check writing history;
(4) employment history; or
(5) insurance claims.
(x) Exclusion of Certain Communications for
Employee Investigations
(1) A communication is described in this
subsection if--
(A) but for subsection (d)(2)(D), the
communication would be a consumer
report;
(B) the communication is made to an
employer in connection with an
investigation of–
(i) suspected misconduct relating
to employment; or
(ii) compliance with Federal,
State, or local laws and
regulations, the rules of a
self-regulatory organization, or any
preexisting written policies of the
employer;
(C) the communication is not made for
the purpose of investigating a
consumer's credit worthiness, credit
standing, or credit capacity; and
(D) the communication is not provided
to any person except--
(i) to the employer or an agent
of the employer;
(ii) to any Federal or State
officer, agency, or department, or
any officer, agency, or department
of a unit of general local
government;
(iii) to any self-regulatory
organization with regulatory
authority over the activities of the
employer or employee;
(iv) as otherwise required by
law; or
(v) pursuant to
section 608.
(2) Subsequent disclosure. After taking
any adverse action based in whole or in part
on a communication described in paragraph
(1), the employer shall disclose to the
consumer a summary containing the nature and
substance of the communication upon which
the adverse action is based, except that the
sources of information acquired solely for
use in preparing what would be but for
subsection (d)(2)(D) an investigative
consumer report need not be disclosed.
(3) For purposes of this subsection, the
term “self-regulatory organization” includes
any self-regulatory organization (as defined
in section 3(a)(26) of the Securities
Exchange Act of 1934), any entity
established under title I of the
Sarbanes-Oxley Act of 2002, any board of
trade designated by the Commodity Futures
Trading Commission, and any futures
association registered with such Commission.
Table of Contents
(a) In general. Subject to subsection (c),
any consumer reporting agency may furnish a
consumer report under the following
circumstances and no other:
(1) In response to the order of a court
having jurisdiction to issue such an order,
or a subpoena issued in connection with
proceedings before a Federal grand jury.
(2) In accordance with the written
instructions of the consumer to whom it
relates.
(3) To a person which it has reason to
believe
(A) intends to use the information in
connection with a credit transaction
involving the consumer on whom the
information is to be furnished and
involving the extension of credit to, or
review or collection of an account of,
the consumer; or
(B) intends to use the information
for employment purposes; or
(C) intends to use the information in
connection with the underwriting of
insurance involving the consumer; or
(D) intends to use the information in
connection with a determination of the
consumer's eligibility for a license or
other benefit granted by a governmental
instrumentality required by law to
consider an applicant's financial
responsibility or status; or
(E) intends to use the information,
as a potential investor or servicer, or
current insurer, in connection with a
valuation of, or an assessment of the
credit or prepayment risks associated
with, an existing credit obligation; or
(F) otherwise has a legitimate
business need for the information
(i) in connection with a business
transaction that is initiated by the
consumer; or
(ii) to review an account to
determine whether the consumer
continues to meet the terms of the
account.
(4) In response to a request by the head
of a State or local child support
enforcement agency (or a State or local
government official authorized by the head
of such an agency), if the person making the
request certifies to the consumer reporting
agency that
(A) the consumer report is needed for
the purpose of establishing an
individual’s capacity to make child
support payments or determining the
appropriate level of such payments;
(B) the paternity of the consumer for
the child to which the obligation
relates has been established or
acknowledged by the consumer in
accordance with State laws under which
the obligation arises (if required by
those laws);
(C) the person has provided at least
10 days’ prior notice to the consumer
whose report is requested, by certified
or registered mail to the last known
address of the consumer, that the report
will be requested; and
(D) the consumer report will be kept
confidential, will be used solely for a
purpose described in subparagraph (A),
and will not be used in connection with
any other civil, administrative, or
criminal proceeding, or for any other
purpose.
(5) To an agency administering a State
plan under Section 454 of the Social
Security Act (42 U.S.C. § 654) for use to
set an initial or modified child support
award.
(b) Conditions for Furnishing and Using
Consumer Reports for Employment Purposes.
(1) Certification from user. A consumer
reporting agency may furnish a consumer
report for employment purposes only if
(A) the person who obtains such
report from the agency certifies to the
agency that
(i) the person has complied with
paragraph (2) with respect to the
consumer report, and the person will
comply with paragraph (3) with
respect to the consumer report if
paragraph (3) becomes applicable;
and
(ii) information from the
consumer report will not be used in
violation of any applicable Federal
or State equal employment
opportunity law or regulation; and
(B) the consumer reporting agency
provides with the report, or has
previously provided, a summary of the
consumer's rights under this title, as
prescribed by the Federal Trade
Commission under section 609(c)(2) [§ 1681g].
(2) Disclosure to Consumer.
(A) In general. Except as provided in
subparagraph (B), a person may not
procure a consumer report, or cause a
consumer report to be procured, for
employment purposes with respect to any
consumer, unless--
(i) a clear and conspicuous
disclosure has been made in writing
to the consumer at any time before
the report is procured or caused to
be procured, in a document that
consists solely of the disclosure,
that a consumer report may be
obtained for employment purposes;
and
(ii) the consumer has authorized
in writing (which authorization may
be made on the document referred to
in clause (i)) the procurement of
the report by that person.
(B) Application by mail, telephone,
computer, or other similar means. If a
consumer described in subparagraph (C)
applies for employment by mail,
telephone, computer, or other similar
means, at any time before a consumer
report is procured or caused to be
procured in connection with that
application--
(i) the person who procures the
consumer report on the consumer for
employment purposes shall provide to
the consumer, by oral, written, or
electronic means, notice that a
consumer report may be obtained for
employment purposes, and a summary
of the consumer's rights under
section 615(a)(3);
and
(ii) the consumer shall have
consented, orally, in writing, or
electronically to the procurement of
the report by that person.
(C) Scope. Subparagraph (B) shall
apply to a person procuring a consumer
report on a consumer in connection with
the consumer's application for
employment only if--
(i) the consumer is applying for
a position over which the Secretary
of Transportation has the power to
establish qualifications and maximum
hours of service pursuant to the
provisions of section 31502 of title
49, or a position subject to safety
regulation by a State transportation
agency; and
(ii) as of the time at which the
person procures the report or causes
the report to be procured the only
interaction between the consumer and
the person in connection with that
employment application has been by
mail, telephone, computer, or other
similar means.
(3) Conditions on use for adverse
actions.
(A) In general. Except as provided in
subparagraph (B), in using a consumer
report for employment purposes, before
taking any adverse action based in whole
or in part on the report, the person
intending to take such adverse action
shall provide to the consumer to whom
the report relates--
(i) a copy of the report; and
(ii) a description in writing of
the rights of the consumer under
this title, as prescribed by the
Federal Trade Commission under
section 609(c)(2).
(B) Application by mail, telephone,
computer, or other similar means.
(i) If a consumer described in
subparagraph (C) applies for
employment by mail, telephone,
computer, or other similar means,
and if a person who has procured a
consumer report on the consumer for
employment purposes takes adverse
action on the employment application
based in whole or in part on the
report, then the person must provide
to the consumer to whom the report
relates, in lieu of the notices
required under subparagraph (A) of
this section and under
section 615(a),
within 3 business days of taking
such action, an oral, written or
electronic notification--
(I) that adverse action has
been taken based in whole or in
part on a consumer report
received from a consumer
reporting agency;
(II) of the name, address and
telephone number of the consumer
reporting agency that furnished
the consumer report (including a
toll-free telephone number
established by the agency if the
agency compiles and maintains
files on consumers on a
nationwide basis);
The references in Sections
604(b)(3)(A) and 604(b)(3)(B)
should be to Section 609(c)(1),
not (c)(3) that no longer exists
as the result of Congress’
re-organization of Section
609(c) in 2003 (FACT Act).
(III) that the consumer
reporting agency did not make
the decision to take the adverse
action and is unable to provide
to the consumer the specific
reasons why the adverse action
was taken; and
(IV) that the consumer may,
upon providing proper
identification, request a free
copy of a report and may dispute
with the consumer reporting
agency the accuracy or
completeness of any information
in a report.
(ii) If, under clause (B)(i)(IV),
the consumer requests a copy of a
consumer report from the person who
procured the report, then, within 3
business days of receiving the
consumer's request, together with
proper identification, the person
must send or provide to the consumer
a copy of a report and a copy of the
consumer's rights as prescribed by
the Federal Trade Commission under
section 609(c)(2).
(C) Scope. Subparagraph (B) shall
apply to a person procuring a consumer
report on a consumer in connection with
the consumer's application for
employment only if--
(i) the consumer is applying for
a position over which the Secretary
of Transportation has the power to
establish qualifications and maximum
hours of service pursuant to the
provisions of section 31502 of title
49, or a position subject to safety
regulation by a State transportation
agency; and
(ii) as of the time at which the
person procures the report or causes
the report to be procured the only
interaction between the consumer and
the person in connection with that
employment application has been by
mail, telephone, computer, or other
similar means.
(4) Exception for national security
investigations.
(A) In general. In the case of an
agency or department of the United
States Government which seeks to obtain
and use a consumer report for employment
purposes, paragraph (3) shall not apply
to any adverse action by such agency or
department which is based in part on
such consumer report, if the head of
such agency or department makes a
written finding that–
(i) the consumer report is
relevant to a national security
investigation of such agency or
department;
(ii) the investigation is within
the jurisdiction of such agency or
department;
(iii) there is reason to believe
that compliance with paragraph (3)
will--
(I) endanger the life or
physical safety of any person;
(II) result in flight from
prosecution;
(III) result in the
destruction of, or tampering
with, evidence relevant to the
investigation;
(IV) result in the
intimidation of a potential
witness relevant to the
investigation;
(V) result in the compromise
of classified information; or
(VI) otherwise seriously
jeopardize or unduly delay the
investigation or another
official proceeding.
(B) Notification of consumer upon
conclusion of investigation. Upon the
conclusion of a national security
investigation described in subparagraph
(A), or upon the determination that the
exception under subparagraph (A) is no
longer required for the reasons set
forth in such subparagraph, the official
exercising the authority in such
subparagraph shall provide to the
consumer who is the subject of the
consumer report with regard to which
such finding was made--
(i) a copy of such consumer
report with any classified
information redacted as necessary;
(ii) notice of any adverse action
which is based, in part, on the
consumer report; and
(iii) the identification with
reasonable specificity of the nature
of the investigation for which the
consumer report was sought.
(C) Delegation by head of agency or
department. For purposes of
subparagraphs (A) and (B), the head of
any agency or department of the United
States Government may delegate his or
her authorities under this paragraph to
an official of such agency or department
who has personnel security
responsibilities and is a member of the
Senior Executive Service or equivalent
civilian or military rank.
(D) Definitions. For purposes of this
paragraph, the following definitions
shall apply:
(i) The term “classified
information” means information that
is protected from unauthorized
disclosure under Executive Order No.
12958 or successor orders.
(ii) The term “national security
investigation” means any official
inquiry by an agency or department
of the United States Government to
determine the eligibility of a
consumer to receive access or
continued access to classified
information or to determine whether
classified information has been lost
or compromised.
(c) Furnishing reports in connection with
credit or insurance transactions that are not
initiated by the consumer.
(1) In general. A consumer reporting
agency may furnish a consumer report
relating to any consumer pursuant to
subparagraph (A) or (C) of subsection (a)(3)
in connection with any credit or insurance
transaction that is not initiated by the
consumer only if
(A) the consumer authorizes the
agency to provide such report to such
person; or
(B)
(i) the transaction consists of a
firm offer of credit or insurance;
(ii) the consumer reporting
agency has complied with subsection
(e); and
(iii) there is not in effect an
election by the consumer, made in
accordance with subsection (e), to
have the consumer's name and address
excluded from lists of names
provided by the agency pursuant to
this paragraph.
(2) Limits on information received under
paragraph (1)(B). A person may receive
pursuant to paragraph (1)(B) only
(A) the name and address of a
consumer;
(B) an identifier that is not unique
to the consumer and that is used by the
person solely for the purpose of
verifying the identity of the consumer;
and
(C) other information pertaining to a
consumer that does not identify the
relationship or experience of the
consumer with respect to a particular
creditor or other entity.
(3) Information regarding inquiries.
Except as provided in section 609(a)(5) [§1681g], a consumer
reporting agency shall not furnish to any
person a record of inquiries in connection
with a credit or insurance transaction that
is not initiated by a consumer.
(d) Reserved.
(e) Election of consumer to be excluded from
lists.
(1) In general. A consumer may elect to
have the consumer's name and address
excluded from any list provided by a
consumer reporting agency under subsection
(c)(1)(B) in connection with a credit or
insurance transaction that is not initiated
by the consumer, by notifying the agency in
accordance with paragraph (2) that the
consumer does not consent to any use of a
consumer report relating to the consumer in
connection with any credit or insurance
transaction that is not initiated by the
consumer.
(2) Manner of notification. A consumer
shall notify a consumer reporting agency
under paragraph (1)
(A) through the notification system
maintained by the agency under paragraph
(5); or
(B) by submitting to the agency a
signed notice of election form issued by
the agency for purposes of this
subparagraph.
(3) Response of agency after notification
through system. Upon receipt of notification
of the election of a consumer under
paragraph (1) through the notification
system maintained by the agency under
paragraph (5), a consumer reporting agency
shall
(A) inform the consumer that the
election is effective only for the
5-year period following the election if
the consumer does not submit to the
agency a signed notice of election form
issued by the agency for purposes of
paragraph (2)(B); and
(B) provide to the consumer a notice
of election form, if requested by the
consumer, not later than 5 business days
after receipt of the notification of the
election through the system established
under paragraph (5), in the case of a
request made at the time the consumer
provides notification through the
system.
(4) Effectiveness of election. An
election of a consumer under paragraph (1)
(A) shall be effective with respect
to a consumer reporting agency beginning
5 business days after the date on which
the consumer notifies the agency in
accordance with paragraph (2);
(B) shall be effective with respect
to a consumer reporting agency
(i) subject to subparagraph (C),
during the 5-year period beginning 5
business days after the date on
which the consumer notifies the
agency of the election, in the case
of an election for which a consumer
notifies the agency only in
accordance with paragraph (2)(A); or
(ii) until the consumer notifies
the agency under subparagraph (C),
in the case of an election for which
a consumer notifies the agency in
accordance with paragraph (2)(B);
(C) shall not be effective after the
date on which the consumer notifies the
agency, through the notification system
established by the agency under
paragraph (5), that the election is no
longer effective; and
(D) shall be effective with respect
to each affiliate of the agency.
(5) Notification System
(A) In general. Each consumer
reporting agency that, under subsection
(c)(1)(B), furnishes a consumer report
in connection with a credit or insurance
transaction that is not initiated by a
consumer, shall
(i) establish and maintain a
notification system, including a
toll-free telephone number, which
permits any consumer whose consumer
report is maintained by the agency
to notify the agency, with
appropriate identification, of the
consumer's election to have the
consumer's name and address excluded
from any such list of names and
addresses provided by the agency for
such a transaction; and
(ii) publish by not later than
365 days after the date of enactment
of the Consumer Credit Reporting
Reform Act of 1996, and not less
than annually thereafter, in a
publication of general circulation
in the area served by the agency
(I) a notification that
information in consumer files
maintained by the agency may be
used in connection with such
transactions; and
(II) the address and
toll-free telephone number for
consumers to use to notify the
agency of the consumer's
election under clause (I).
(B) Establishment and maintenance as
compliance. Establishment and
maintenance of a notification system
(including a toll-free telephone number)
and publication by a consumer reporting
agency on the agency's own behalf and on
behalf of any of its affiliates in
accordance with this paragraph is deemed
to be compliance with this paragraph by
each of those affiliates.
(6) Notification system by agencies that
operate nationwide. Each consumer reporting
agency that compiles and maintains files on
consumers on a nationwide basis shall
establish and maintain a notification system
for purposes of paragraph (5) jointly with
other such consumer reporting agencies.
(f) Certain use or obtaining of information
prohibited. A person shall not use or obtain a
consumer report for any purpose unless
(1) the consumer report is obtained for a
purpose for which the consumer report is
authorized to be furnished under this
section; and
(2) the purpose is certified in
accordance with
section 607
[§1681e] by a prospective user of the report
through a general or specific certification.
(g) Protection of Medical Information
(1) Limitation on consumer reporting
agencies. A consumer reporting agency shall
not furnish for employment purposes, or in
connection with a credit or insurance
transaction, a consumer report that contains
medical information (other than medical
contact information treated in the manner
required under section
605(a)(6) about a consumer, unless--
(A) if furnished in connection with
an insurance transaction, the consumer
affirmatively consents to the furnishing
of the report;
(B) if furnished for employment
purposes or in connection with a credit
transaction--
(i) the information to be
furnished is relevant to process or
effect the employment or credit
transaction; and
(ii) the consumer provides
specific written consent for the
furnishing of the report that
describes in clear and conspicuous
language the use for which the
information will be furnished; or
(C) the information to be furnished
pertains solely to transactions,
accounts, or balances relating to debts
arising from the receipt of medical
services, products, or devises, where
such information, other than account
status or amounts, is restricted or
reported using codes that do not
identify, or do not provide information
sufficient to infer, the specific
provider or the nature of such services,
products, or devices, as provided in
section 605(a)(6).
(2) Limitation on creditors. Except as
permitted pursuant to paragraph (3)(C) or
regulations prescribed under paragraph
(5)(A), a creditor shall not obtain or use
medical information (other than medical
contact information treated in the manner
required under section 605(a)(6) pertaining
to a consumer in connection with any
determination of the consumer's eligibility,
or continued eligibility, for credit.
(3) Actions authorized by federal law,
insurance activities and regulatory
determinations. Section 603(d)(3) shall not be construed so as
to treat information or any communication of
information as a consumer report if the
information or communication is disclosed--
(A) in connection with the business
of insurance or annuities, including the
activities described in section 18B of
the model Privacy of Consumer Financial
and Health Information Regulation issued
by the National Association of Insurance
Commissioners (as in effect on January
1, 2003);
(B) for any purpose permitted without
authorization under the Standards for
Individually Identifiable Health
Information promulgated by the
Department of Health and Human Services
pursuant to the Health Insurance
Portability and Accountability Act of
1996, or referred to under section 1179
of such Act, or described in section
502(e) of Public Law 106-102; or
(C) as otherwise determined to be
necessary and appropriate, by regulation
or order and subject to paragraph (6),
by the Commission, any Federal banking
agency or the National Credit Union
Administration (with respect to any
financial institution subject to the
jurisdiction of such agency or
Administration under paragraph (1), (2),
or (3) of section 621(b),
or the applicable State insurance
authority (with respect to any person
engaged in providing insurance or
annuities).
(4) Limitation on redisclosure of medical
information. Any person that receives
medical information pursuant to paragraph
(1) or (3) shall not disclose such
information to any other person, except as
necessary to carry out the purpose for which
the information was initially disclosed, or
as otherwise permitted by statute,
regulation, or order.
(5) Regulations and Effective Date for
Paragraph (2)
(A) Regulations required. Each
Federal banking agency and the National
Credit Union Administration shall,
subject to paragraph (6) and after
notice and opportunity for comment,
prescribe regulations that permit
transactions under paragraph (2) that
are determined to be necessary and
appropriate to protect legitimate
operational, transactional, risk,
consumer, and other needs (and which
shall include permitting actions
necessary for administrative
verification purposes), consistent with
the intent of paragraph (2) to restrict
the use of medical information for
inappropriate purposes.
(B) Final regulations required. The
Federal banking agencies and the
National Credit Union Administration
shall issue the regulations required
under subparagraph (A) in final form
before the end of the 6-month period
beginning on the date of enactment of
the Fair and Accurate Credit
Transactions Act of 2003. See also
12 CFR Parts 41/222/232/334/571/717
(6) Coordination with other laws. No
provision of this subsection shall be
construed as altering, affecting, or
superseding the applicability of any other
provision of Federal law relating to medical
confidentiality.
Table of Contents
(a) Information excluded from consumer
reports. Except as authorized under subsection
(b) of this section, no consumer reporting
agency may make any consumer report containing
any of the following items of information:
(1) Cases under title 11 [United States
Code] or under the Bankruptcy Act that, from
the date of entry of the order for relief or
the date of adjudication, as the case may
be, antedate the report by more than 10
years.
(2) Civil suits, civil judgments, and
records of arrest that from date of entry,
antedate the report by more than seven years
or until the governing statute of
limitations has expired, whichever is the
longer period.
(3) Paid tax liens which, from date of
payment, antedate the report by more than
seven years.
(4) Accounts placed for collection or
charged to profit and loss which antedate
the report by more than seven years.
(5) Any other adverse item of
information, other than records of
convictions of crimes which antedates the
report by more than seven years.1
(6) The name, address, and telephone
number of any medical information furnisher
that has notified the agency of its status,
unless--
(A) such name, address, and telephone
number are restricted or reported using
codes that do not identify, or provide
information sufficient to infer, the
specific provider or the nature of such
services, products, or devices to a
person other than the consumer; or
(B) the report is being provided to
an insurance company for a purpose
relating to engaging in the business of
insurance other than property and
casualty insurance.
(b) Exempted cases. The provisions of
paragraphs (1) through (5) of subsection (a) of
this section are not applicable in the case of
any consumer credit report to be used in
connection with (1) a credit transaction
involving, or which may reasonably be expected
to involve, a principal amount of $150,000 or
more;
(2) the underwriting of life insurance
involving, or which may reasonably be
expected to involve, a face amount of
$150,000 or more; or
(3) the employment of any individual at
an annual salary which equals, or which may
reasonably be expected to equal $75,000, or
more.
(c) Running of Reporting Period
(1) In general. The 7-year period
referred to in paragraphs (4) and (6) of
subsection
(a) shall begin, with respect to any
delinquent account that is placed for
collection (internally or by referral to
a third party, whichever is earlier),
charged to profit and loss, or subjected
to any similar action, upon the
expiration of the 180-day period
beginning on the date of the
commencement of the delinquency which
immediately preceded the collection
activity, charge to profit and loss, or
similar action.
(2) Effective date. Paragraph (1) shall
apply only to items of information added to
the file of a consumer on or after the date
that is 455 days after the date of enactment
of the Consumer Credit Reporting Reform Act
of 1996.
(d) Information Required to be Disclosed
(1) Title 11 information. Any consumer
reporting agency that furnishes a consumer
report that contains information regarding
any case involving the consumer that arises
under title 11, United States Code, shall
include in the report an identification of
the chapter of such title 11 under which
such case arises if provided by the source
of the information. If any case arising or
filed under title 11, United States Code, is
withdrawn by the consumer before a final
judgment, the consumer reporting agency
shall include in the report that such case
or filing was withdrawn upon receipt of
documentation certifying such withdrawal.
(2) Key factor in credit score
information. Any consumer reporting agency
that furnishes a consumer report that
contains any credit score or any other risk
score or predictor on any consumer shall
include in the report a clear and
conspicuous statement that a key factor (as
defined in section
609(f)(2)(B) that adversely affected
such score or predictor was the number of
enquiries, if such a predictor was in fact a
key factor that adversely affected such
score. This paragraph shall not apply to a
check services company, acting as such,
which issues authorizations for the purpose
of approving or processing negotiable
instruments, electronic fund transfers, or
similar methods of payments, but only to the
extent that such company is engaged in such
activities.
(e) Indication of closure of account by
consumer. If a consumer reporting agency is
notified pursuant to section
623(a)(4) [§ 1681s-2] that a credit account
of a consumer was voluntarily closed by the
consumer, the agency shall indicate that fact in
any consumer report that includes information
related to the account.
(f) Indication of dispute by consumer. If a
consumer reporting agency is notified pursuant
to section 623(a)(3) [§
1681s-2] that information regarding a consumer
who was furnished to the agency is disputed by
the consumer, the agency shall indicate that
fact in each consumer report that includes the
disputed information.
(g) Truncation of Credit Card and Debit Card
Numbers (1) In general. Except as otherwise
provided in this subsection, no person that
accepts credit cards or debit cards for the
transaction of business shall print more than
the last 5 digits of the card number or the
expiration date upon any receipt provided to the
cardholder at the point of the sale or
transaction.
(2) Limitation. This subsection shall
apply only to receipts that are
electronically printed, and shall not apply
to transactions in which the sole means of
recording a credit card or debit card
account number is by handwriting or by an
imprint or copy of the card.
(3) Effective date. This subsection shall
become effective--
(A) 3 years after the date of
enactment of this subsection, with
respect to any cash register or other
machine or device that electronically
prints receipts for credit card or debit
card transactions that is in use before
January 1, 2005; and
(B) 1 year after the date of
enactment of this subsection, with
respect to any cash register or other
machine or device that electronically
prints receipts for credit card or debit
card transactions that is first put into
use on or after January 1, 2005.
(h) Notice of Discrepancy in Address
(1) In general. If a person has requested
a consumer report relating to a consumer
from a consumer reporting agency described
in section 603(p), the
request includes an address for the consumer
that substantially differs from the
addresses in the file of the consumer, and
the agency provides a consumer report in
response to the request, the consumer
reporting agency shall notify the requester
of the existence of the discrepancy.
(2) Regulations
(A) Regulations required. The Federal
banking agencies, the National Credit
Union Administration, and the Commission
shall jointly, with respect to the
entities that are subject to their
respective enforcement authority under
section 621,
prescribe regulations providing guidance
regarding reasonable policies and
procedures that a user of a consumer
report should employ when such user has
received a notice of discrepancy under
paragraph (1).
(B) Policies and procedures to be
included. The regulations prescribed
under subparagraph (A) shall describe
reasonable policies and procedures for
use by a user of a consumer report—
(i) to form a reasonable belief
that the user knows the identity of
the person to whom the consumer
report pertains; and
(ii) if the user establishes a
continuing relationship with the
consumer, and the user regularly and
in the ordinary course of business
furnishes information to the
consumer reporting agency from which
the notice of discrepancy pertaining
to the consumer was obtained, to
reconcile the address of the
consumer with the consumer reporting
agency by furnishing such address to
such consumer reporting agency as
part of information regularly
furnished by the user for the period
in which the relationship is
established.
Table of Contents
(a) One-call Fraud Alerts
(1) Initial alerts. Upon the direct
request of a consumer, or an individual
acting on behalf of or as a personal
representative of a consumer, who asserts in
good faith a suspicion that the consumer has
been or is about to become a victim of fraud
or related crime, including identity theft,
a consumer reporting agency described in
section 603(p) that
maintains a file on the consumer and has
received appropriate proof of the identity
of the requester shall--
(A) include a fraud alert in the file
of that consumer, and also provide that
alert along with any credit score
generated in using that file, for a
period of not less than 90 days,
beginning on the date of such request,
unless the consumer or such
representative requests that such fraud
alert be removed before the end of such
period, and the agency has received
appropriate proof of the identity of the
requester for such purpose; and
(B) refer the information regarding
the fraud alert under this paragraph to
each of the other consumer reporting
agencies described in section 603(p), in accordance with
procedures developed under
section 621(f).
(2) Access to free reports. In any case
in which a consumer reporting agency
includes a fraud alert in the file of a
consumer pursuant to this subsection, the
consumer reporting agency shall--
(A) disclose to the consumer that the
consumer may request a free copy of the
file of the consumer pursuant to
section 612(d); and
(B) provide to the consumer all
disclosures required to be made under
section 609, without
charge to the consumer, not later than 3
business days after any request
described in subparagraph (A).
(b) Extended Alerts
(1) In general. Upon the direct request
of a consumer, or an individual acting on
behalf of or as a personal representative of
a consumer, who submits an identity theft
report to a consumer reporting agency
described in section 603(p)
that maintains a file on the consumer, if
the agency has received appropriate proof of
the identity of the requester, the agency
shall--
(A) include a fraud alert in the file
of that consumer, and also provide that
alert along with any credit score
generated in using that file, during the
7-year period beginning on the date of
such request, unless the consumer or
such representative requests that such
fraud alert be removed before the end of
such period and the agency has received
appropriate proof of the identity of the
requester for such purpose;
(B) during the 5-year period
beginning on the date of such request,
exclude the consumer from any list of
consumers prepared by the consumer
reporting agency and provided to any
third party to offer credit or insurance
to the consumer as part of a transaction
that was not initiated by the consumer,
unless the consumer or such
representative requests that such
exclusion be rescinded before the end of
such period; and
(C) refer the information regarding
the extended fraud alert under this
paragraph to each of the other consumer
reporting agencies described in
section 603(p), in
accordance with procedures developed
under section 621(f).
(2) Access to free reports. In any case
in which a consumer reporting agency
includes a fraud alert in the file of a
consumer pursuant to this subsection, the
consumer reporting agency shall--
(A) disclose to the consumer that the
consumer may request 2 free copies of
the file of the consumer pursuant to
section 612(d)
during the 12-month period beginning on
the date on which the fraud alert was
included in the file; and (B) provide to
the consumer all disclosures required to
be made under
section 609,
without charge to the consumer, not
later than 3 business days after any
request described in subparagraph (A).
(c) Active duty alerts. Upon the direct
request of an active duty military consumer, or
an individual acting on behalf of or as a
personal representative of an active duty
military consumer, a consumer reporting agency
described in section 603(p) that maintains a file on the active duty
military consumer and has received appropriate
proof of the identity of the requester shall--
(1) include an active duty alert in the
file of that active duty military consumer,
and also provide that alert along with any
credit score generated in using that file,
during a period of not less than 12 months,
or such longer period as the Commission
shall determine, by regulation, beginning on
the date of the request, unless the active
duty military consumer or such
representative requests that such fraud
alert be removed before the end of such
period, and the agency has received
appropriate proof of the identity of the
requester for such purpose;
(2) during the 2-year period beginning on
the date of such request, exclude the active
duty military consumer from any list of
consumers prepared by the consumer reporting
agency and provided to any third party to
offer credit or insurance to the consumer as
part of a transaction that was not initiated
by the consumer, unless the consumer
requests that such exclusion be rescinded
before the end of such period; and
(3) refer the information regarding the
active duty alert to each of the other
consumer reporting agencies described in
section 603(p), in
accordance with procedures developed under
section 621(f) . See
also 16 CFR Part 613.1
69 Fed. Reg. 63922 (11/03/04)
(d) Procedures. Each consumer
reporting agency described in section 603(p) shall establish policies and
procedures to comply with this section,
including procedures that inform consumers of
the availability of initial, extended, and
active duty alerts and procedures that allow
consumers and active duty military consumers to
request initial, extended, or active duty alerts
(as applicable) in a simple and easy manner,
including by telephone.
(e) Referrals of alerts. Each consumer
reporting agency described in section 603(p) that receives a referral of a
fraud alert or active duty alert from another
consumer reporting agency pursuant to this
section shall, as though the agency received the
request from the consumer directly, follow the
procedures required under--
(1) paragraphs (1)(A) and (2) of
subsection (a), in the case of a referral
under subsection (a)(1)(B);
(2) paragraphs (1)(A), (1)(B), and (2) of
subsection (b), in the case of a referral
under subsection (b)(1)(C); and
(3) paragraphs (1) and (2) of subsection
(c), in the case of a referral under
subsection (c)(3).
(f) Duty of reseller to reconvey alert. A
reseller shall include in its report any fraud
alert or active duty alert placed in the file of
a consumer pursuant to this section by another
consumer reporting agency.
(g) Duty of other consumer reporting agencies
to provide contact information. If a consumer
contacts any consumer reporting agency that is
not described in section 603(p)
to communicate a suspicion that the consumer has
been or is about to become a victim of fraud or
related crime, including identity theft, the
agency shall provide information to the consumer
on how to contact the Commission and the
consumer reporting agencies described in
section 603(p) to obtain
more detailed information and request alerts
under this section.
(h) Limitations on Use of Information for
Credit Extensions
(1) Requirements for initial and active
duty alerts-
(A) Notification. Each initial fraud
alert and active duty alert under this
section shall include information that
notifies all prospective users of a
consumer report on the consumer to which
the alert relates that the consumer does
not authorize the establishment of any
new credit plan or extension of credit,
other than under an open-end credit plan
(as defined in section 103(i)), in the
name of the consumer, or issuance of an
additional card on an existing credit
account requested by a consumer, or any
increase in credit limit on an existing
credit account requested by a consumer,
except in accordance with subparagraph
(B).
(B) Limitation on Users
(i) In general. No prospective
user of a consumer report that
includes an initial fraud alert or
an active duty alert in accordance
with this section may establish a
new credit plan or extension of
credit, other than under an open-end
credit plan (as defined in section
103(i)), in the name of the
consumer, or issue an additional
card on an existing credit account
requested by a consumer, or grant
any increase in credit limit on an
existing credit account requested by
a consumer, unless the user utilizes
reasonable policies and procedures
to form a reasonable belief that the
user knows the identity of the
person making the request.
(ii) Verification. If a consumer
requesting the alert has specified a
telephone number to be used for
identity verification purposes,
before authorizing any new credit
plan or extension described in
clause (i) in the name of such
consumer, a user of such consumer
report shall contact the consumer
using that telephone number or take
reasonable steps to verify the
consumer's identity and confirm that
the application for a new credit
plan is not the result of identity
theft.
(2) Requirements for Extended Alerts
(A) Notification. Each extended alert
under this section shall include
information that provides all
prospective users of a consumer report
relating to a consumer with–
(i) notification that the
consumer does not authorize the
establishment of any new credit plan
or extension of credit described in
clause (i), other than under an
open-end credit plan (as defined in
section 103(i)), in the name of the
consumer, or issuance of an
additional card on an existing
credit account requested by a
consumer, or any increase in credit
limit on an existing credit account
requested by a consumer, except in
accordance with subparagraph (B);
and
(ii) a telephone number or other
reasonable contact method designated
by the consumer.
(B) Limitation on users. No
prospective user of a consumer report or
of a credit score generated using the
information in the file of a consumer
that includes an extended fraud alert in
accordance with this section may
establish a new credit plan or extension
of credit, other than under an open-end
credit plan (as defined in section
103(i)), in the name of the consumer, or
issue an additional card on an existing
credit account requested by a consumer,
or any increase in credit limit on an
existing credit account requested by a
consumer, unless the user contacts the
consumer in person or using the contact
method described in subparagraph (A)(ii)
to confirm that the application for a
new credit plan or increase in credit
limit, or request for an additional card
is not the result of identity theft.
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(a) Block. Except as otherwise provided in
this section, a consumer reporting agency shall
block the reporting of any information in the
file of a consumer that the consumer identifies
as information that resulted from an alleged
identity theft, not later than 4 business days
after the date of receipt by such agency of--
(1) appropriate proof of the identity of
the consumer;
(2) a copy of an identity theft report;
(3) the identification of such
information by the consumer; and
(4) a statement by the consumer that the
information is not information relating to
any transaction by the consumer.
(b) Notification. A consumer reporting agency
shall promptly notify the furnisher of
information identified by the consumer under
subsection (a)--
(1) that the information may be a result
of identity theft;
(2) that an identity theft report has
been filed;
(3) that a block has been requested under
this section; and
(4) of the effective dates of the block.
(c) Authority to Decline or Rescind
(1) In general. A consumer reporting
agency may decline to block, or may rescind
any block, of information relating to a
consumer under this section, if the consumer
reporting agency reasonably determines
that--
(A) the information was blocked in
error or a block was requested by the
consumer in error;
(B) the information was blocked, or a
block was requested by the consumer, on
the basis of a material
misrepresentation of fact by the
consumer relevant to the request to
block; or
(C) the consumer obtained possession
of goods, services, or money as a result
of the blocked transaction or
transactions.
(2) Notification to consumer. If a block
of information is declined or rescinded
under this subsection, the affected consumer
shall be notified promptly, in the same
manner as consumers are notified of the
reinsertion of information under
section 611(a)(5)(B).
(3) Significance of block. For purposes
of this subsection, if a consumer reporting
agency rescinds a block, the presence of
information in the file of a consumer prior
to the blocking of such information is not
evidence of whether the consumer knew or
should have known that the consumer obtained
possession of any goods, services, or money
as a result of the block.
(d) Exception for Resellers
(1) No reseller file. This section shall
not apply to a consumer reporting agency, if
the consumer reporting agency--
(A) is a reseller;
(B) is not, at the time of the
request of the consumer under subsection
(a), otherwise furnishing or reselling a
consumer report concerning the
information identified by the consumer;
and
(C) informs the consumer, by any
means, that the consumer may report the
identity theft to the Commission to
obtain consumer information regarding
identity theft.
(2) Reseller with file. The sole
obligation of the consumer reporting agency
under this section, with regard to any
request of a consumer under this section,
shall be to block the consumer report
maintained by the consumer reporting agency
from any subsequent use, if--
(A) the consumer, in accordance with
the provisions of subsection (a),
identifies, to a consumer reporting
agency, information in the file of the
consumer that resulted from identity
theft; and
(B) the consumer reporting agency is
a reseller of the identified
information.
(3) Notice. In carrying out its
obligation under paragraph (2), the reseller
shall promptly provide a notice to the
consumer of the decision to block the file.
Such notice shall contain the name, address,
and telephone number of each consumer
reporting agency from which the consumer
information was obtained for resale.
(e) Exception for verification companies. The
provisions of this section do not apply to a
check services company, acting as such, which
issues authorizations for the purpose of
approving or processing negotiable instruments,
electronic fund transfers, or similar methods of
payments, except that, beginning 4 business days
after receipt of information described in
paragraphs (1) through (3) of subsection (a), a
check services company shall not report to a
national consumer reporting agency described in
section 603(p), any
information identified in the subject identity
theft report as resulting from identity theft.
(f) Access to blocked information by law
enforcement agencies. No provision of this
section shall be construed as requiring a
consumer reporting agency to prevent a Federal,
State, or local law enforcement agency from
accessing blocked information in a consumer file
to which the agency could otherwise obtain
access under this title.
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(a) Disclosure of fact of preparation. A
person may not procure or cause to be prepared
an investigative consumer report on any consumer
unless
(1) it is clearly and accurately
disclosed to the consumer that an
investigative consumer report including
information as to his character, general
reputation, personal characteristics and
mode of living, whichever are applicable,
may be made, and such disclosure (A) is made
in a writing mailed, or otherwise delivered,
to the consumer, not later than three days
after the date on which the report was first
requested, and
(B) includes a statement informing
the consumer of his right to request the
additional disclosures provided for
under subsection (b) of this section and
the written summary of the rights of the
consumer prepared pursuant to
section 609(c) [§
1681g]; and
(2) the person certifies or has certified
to the consumer reporting agency that
(A) the person has made the
disclosures to the consumer required by
paragraph(1); and
(B) the person will comply with
subsection (b).
(b) Disclosure on request of nature and scope
of investigation. Any person who procures or
causes to be prepared an investigative consumer
report on any consumer shall, upon written
request made by the consumer within a reasonable
period of time after the receipt by him of the
disclosure required by subsection (a)(1) of this
section, make a complete and accurate disclosure
of the nature and scope of the investigation
requested. This disclosure shall be made in a
writing mailed, or otherwise delivered, to the
consumer not later than five days after the date
on which the request for such disclosure was
received from the consumer or such report was
first requested, whichever is the later.
(c) Limitation on liability upon showing of
reasonable procedures for compliance with
provisions. No person may be held liable for any
violation of subsection (a) or (b) of this
section if he shows by a preponderance of the
evidence that at the time of the violation he
maintained reasonable procedures to assure
compliance with subsection (a) or (b) of this
section.
(d) Prohibitions
(1) Certification. A consumer reporting
agency shall not prepare or furnish
investigative consumer report unless the
agency has received a certification under
subsection (a)(2) from the person who
requested the report.
(2) Inquiries. A consumer reporting
agency shall not make an inquiry for the
purpose of preparing an investigative
consumer report on a consumer for employment
purposes if the making of the inquiry by an
employer or prospective employer of the
consumer would violate any applicable
Federal or State equal employment
opportunity law or regulation.
(3) Certain public record information.
Except as otherwise provided in
section 613 [§ 1681k], a
consumer reporting agency shall not furnish
an investigative consumer report that
includes information that is a matter of
public record and that relates to an arrest,
indictment, conviction, civil judicial
action, tax lien, or outstanding judgment,
unless the agency has verified the accuracy
of the information during the 30-day period
ending on the date on which the report is
furnished.
(4) Certain adverse information. A
consumer reporting agency shall not prepare
or furnish an investigative consumer report
on a consumer that contains information that
is adverse to the interest of the consumer
and that is obtained through a personal
interview with a neighbor, friend, or
associate of the consumer or with another
person with whom the consumer is acquainted
or who has knowledge of such item of
information, unless
(A) the agency has followed
reasonable procedures to obtain
confirmation of the information, from an
additional source that has independent
and direct knowledge of the information;
or
(B) the person interviewed is the
best possible source of the information.
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(a) Identity and purposes of credit users.
Every consumer reporting agency shall maintain
reasonable procedures designed to avoid
violations of
section 605 [§
1681c] and to limit the furnishing of consumer
reports to the purposes listed under
section 604 [§ 1681b] of this
title. These procedures shall require that
prospective users of the information identify
themselves, certify the purposes for which the
information is sought, and certify that the
information will be used for no other purpose.
Every consumer reporting agency shall make a
reasonable effort to verify the identity of a
new prospective user and the uses certified by
such prospective user prior to furnishing such
user a consumer report. No consumer reporting
agency may furnish a consumer report to any
person if it has reasonable grounds for
believing that the consumer report will not be
used for a purpose listed in section 604 [§
1681b] of this title.
(b) Accuracy of report. Whenever a consumer
reporting agency prepares a consumer report it
shall follow reasonable procedures to assure
maximum possible accuracy of the information
concerning the individual about whom the report
relates.
(c) Disclosure of consumer reports by users
allowed. A consumer reporting agency may not
prohibit a user of a consumer report furnished
by the agency on a consumer from disclosing the
contents of the report to the consumer, if
adverse action against the consumer has been
taken by the user based in whole or in part on
the report.
(d) Notice to Users and Furnishers of
Information
(1) Notice requirement. A consumer
reporting agency shall provide to any person
(A) who regularly and in the ordinary
course of business furnishes information
to the agency with respect to any
consumer; or
(B) to whom a consumer report is
provided by the agency; a notice of such
person's responsibilities under this
title. See also 16 CFR 698, App G-H
69 Fed. Reg. 69776 (11/30/04)
(2) Content of notice. The Federal Trade
Commission shall prescribe the content of
notices under paragraph (1), and a consumer
reporting agency shall be in compliance with
this subsection if it provides a notice
under paragraph (1) that is substantially
similar to the Federal Trade Commission
prescription under this paragraph.
(e) Procurement of Consumer Report for Resale
(1) Disclosure. A person may not procure
a consumer report for purposes of reselling
the report (or any information in the
report) unless the person discloses to the
consumer reporting agency that originally
furnishes the report
(A) the identity of the end-user of
the report (or information); and
(B) each permissible purpose under
section 604 [§ 1681b]
for which the report is furnished to the
end-user of the report (or information).
(2) Responsibilities of procurers for
resale. A person who procures a consumer
report for purposes of reselling the report
(or any information in the report) shall
(A) establish and comply with
reasonable procedures designed to ensure
that the report (or information) is
resold by the person only for a purpose
for which the report may be furnished
under
section 604 [§
1681b], including by requiring that each
person to which the report (or
information) is resold and that resells
or provides the report (or information)
to any other person
(i) identifies each end user of
the resold report (or information);
(ii) certifies each purpose for
which the report (or information)
will be used; and
(iii) certifies that the report
(or information) will be used for no
other purpose; and
(B) before reselling the report, make
reasonable efforts to verify the
identifications and certifications made
under subparagraph (A).
(3) Resale of consumer report to a
federal agency or department.
Notwithstanding paragraph (1) or (2), a
person who procures a consumer report for
purposes of reselling the report (or any
information in the report) shall not
disclose the identity of the end-user of the
report under paragraph (1) or (2) if--
(A) the end user is an agency or
department of the United States
Government which procures the report
from the person for purposes of
determining the eligibility of the
consumer concerned to receive access or
continued access to classified
information (as defined in section
604(b)(4)(E)(i)) (Section
604(b)(4)(E)(i)
(B) the agency or department
certifies in writing to the person
reselling the report that nondisclosure
is necessary to protect classified
information or the safety of persons
employed by or contracting with, or
undergoing investigation for work or
contracting with the agency or
department.
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Notwithstanding the provisions of
section 604 [§ 1681b] of this
title, a consumer reporting agency may furnish
identifying information respecting any consumer,
limited to his name, address, former addresses,
places of employment, or former places of
employment, to a governmental agency.
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(a) Information on file; sources; report
recipients. Every consumer reporting agency
shall, upon request, and subject to 610(a)(1) [§ 1681h], clearly and
accurately disclose to the consumer:
(1) All information in the consumer's
file at the time of the request except
that--
(A) if the consumer to whom the file
relates requests that the first 5 digits
of the social security number (or
similar identification number) of the
consumer not be included in the
disclosure and the consumer reporting
agency has received appropriate proof of
the identity of the requester, the
consumer reporting agency shall so
truncate such number in such disclosure;
and
(B) nothing in this paragraph shall
be construed to require a consumer
reporting agency to disclose to a
consumer any information concerning
credit scores or any other risk scores
or predictors relating to the consumer.
(2) The sources of the information;
except that the sources of information
acquired solely for use in preparing an
investigative consumer report and actually
use for no other purpose need not be
disclosed: Provided, That in the event an
action is brought under this title, such
sources shall be available to the plaintiff
under appropriate discovery procedures in
the court in which the action is brought.
(3)
(A) Identification of each person
(including each end-user identified
under section 607(e)(1)
[§ 1681e]) that procured a consumer
report
(i) for employment purposes,
during the 2-year period preceding
the date on which the request is
made; or
(ii) for any other purpose,
during the 1-year period preceding
the date on which the request is
made.
(B) An identification of a person
under subparagraph (A) shall include
(i) the name of the person or, if
applicable, the trade name (written
in full) under which such person
conducts business; and
(ii) upon request of the
consumer, the address and telephone
number of the person.
(C) Subparagraph (A) does not apply
if--
(i) the end user is an agency or
department of the United States
Government that procures the report
from the person for purposes of
determining the eligibility of the
consumer to whom the report relates
to receive access or continued
access to classified information (as
defined in section 604(b)(4)(E)(i))
(ii) the head of the agency or
department makes a written finding
as prescribed under
section
604(b)(4)(A). (4) The dates,
original payees, and amounts of any
checks upon which is based any
adverse characterization of the
consumer, included in the file at
the time of the disclosure.
(5) A record of all inquiries received by
the agency during the 1-year period
preceding the request that identified the
consumer in connection with a credit or
insurance transaction that was not initiated
by the consumer.
(6) If the consumer requests the credit
file and not the credit score, a statement
that the consumer may request and obtain a
credit score.
(b) Exempt information. The requirements of
subsection (a) of this section respecting the
disclosure of sources of information and the
recipients of consumer reports do not apply to
information received or consumer reports
furnished prior to the effective date of this
title except to the extent that the matter
involved is contained in the files of the
consumer reporting agency on that date.
(c) Summary of Rights to Obtain and Dispute
Information in Consumer Reports and to Obtain
Credit Scores
(1) Commission Summary of Rights Required
(A) In general. The Commission shall
prepare a model summary of the rights of
consumers under this title.
(B) Content of summary. The summary
of rights prepared under subparagraph
(A) shall include a description of–
(i) the right of a consumer to
obtain a copy of a consumer report
under subsection (a) from each
consumer reporting agency;
(ii) the frequency and
circumstances under which a consumer
is entitled to receive a consumer
report without charge under
section 612;
(iii) the right of a consumer to
dispute information in the file of
the consumer under
section 611;
(iv) the right of a consumer to
obtain a credit score from a
consumer reporting agency, and a
description of how to obtain a
credit score; (v) the method by
which a consumer can contact, and
obtain a consumer report from, a
consumer reporting agency without
charge, as provided in the
regulations of the Commission
prescribed under section 211(c) of
the Fair and Accurate Credit
Transactions Act of 2003; and
(vi) the method by which a
consumer can contact, and obtain a
consumer report from, a consumer
reporting agency described in
section 603(w),
as provided in the regulations of
the Commission prescribed under
section
612(a)(1)(C).
(C) Availability of summary of
rights. The Commission shall--
(i) actively publicize the
availability of the summary of
rights prepared under this
paragraph;
(ii) conspicuously post on its
Internet website the availability of
such summary of rights; and
(iii) promptly make such summary
of rights available to consumers, on
request.
(2) Summary of rights required to be
included with agency disclosures. A consumer
reporting agency shall provide to a
consumer, with each written disclosure by
the agency to the consumer under this
section--
(A) the summary of rights prepared by
the Commission under paragraph (1);
(B) in the case of a consumer
reporting agency described in
section 603(p), a
toll-free telephone number established
by the agency, at which personnel are
accessible to consumers during normal
business hours;
(C) a list of all Federal agencies
responsible for enforcing any provision
of this title, and the address and any
appropriate phone number of each such
agency, in a form that will assist the
consumer in selecting the appropriate
agency;
(D) a statement that the consumer may
have additional rights under State law,
and that the consumer may wish to
contact a State or local consumer
protection agency or a State attorney
general (or the equivalent thereof) to
learn of those rights; and
(E) a statement that a consumer
reporting agency is not required to
remove accurate derogatory information
from the file of a consumer, unless the
information is outdated under
section 605 or cannot
be verified.
(d) Summary of Rights of Identity Theft
Victims. See also 16 CFR Part 698, App E 69
Fed. Reg. 69776 (11/30/04)
(1) In general. The Commission, in
consultation with the Federal banking
agencies and the National Credit Union
Administration, shall prepare a model
summary of the rights of consumers under
this title with respect to the procedures
for remedying the effects of fraud or
identity theft involving credit, an
electronic fund transfer, or an account or
transaction at or with a financial
institution or other creditor.
(2) Summary of rights and contact
information. Beginning 60 days after the
date on which the model summary of rights is
prescribed in final form by the Commission
pursuant to paragraph (1), if any consumer
contacts a consumer reporting agency and
expresses a belief that the consumer is a
victim of fraud or identity theft involving
credit, an electronic fund transfer, or an
account or transaction at or with a
financial institution or other creditor, the
consumer reporting agency shall, in addition
to any other action that the agency may
take, provide the consumer with a summary of
rights that contains all of the information
required by the Commission under paragraph
(1), and information on how to contact the
Commission to obtain more detailed
information.
(e) Information Available to Victims
(1) In general. For the purpose of
documenting fraudulent transactions
resulting from identity theft, not later
than 30 days after the date of receipt of a
request from a victim in accordance with
paragraph (3), and subject to verification
of the identity of the victim and the claim
of identity theft in accordance with
paragraph (2), a business entity that has
provided credit to, provided for
consideration products, goods, or services
to, accepted payment from, or otherwise
entered into a commercial transaction for
consideration with, a person who has
allegedly made unauthorized use of the means
of identification of the victim, shall
provide a copy of application and business
transaction records in the control of the
business entity, whether maintained by the
business entity or by another person on
behalf of the business entity, evidencing
any transaction alleged to be a result of
identity theft to--
(A) the victim;
(B) any Federal, State, or local
government law enforcement agency or
officer specified by the victim in such
a request; or
(C) any law enforcement agency
investigating the identity theft and
authorized by the victim to take receipt
of records provided under this
subsection.
(2) Verification of identity and claim.
Before a business entity provides any
information under paragraph (1), unless the
business entity, at its discretion,
otherwise has a high degree of confidence
that it knows the identity of the victim
making a request under paragraph (1), the
victim shall provide to the business
entity--
(A) as proof of positive
identification of the victim, at the
election of the business entity–
(i) the presentation of a
government-issued identification
card;
(ii) personally identifying
information of the same type as was
provided to the business entity by
the unauthorized person; or
(iii) personally identifying
information that the business entity
typically requests from new
applicants or for new transactions,
at the time of the victim's request
for information, including any
documentation described in clauses
(i) and (ii); and
(B) as proof of a claim of identity
theft, at the election of the business
entity--
(i) a copy of a police report
evidencing the claim of the victim
of identity theft; and
(ii) a properly completed--
(I) copy of a standardized
affidavit of identity theft
developed and made available by
the Commission; or
(II) an affidavit of fact
that is acceptable to the
business entity for that
purpose.
(3) Procedures. The request of a victim
under paragraph (1) shall--
(A) be in writing;
(B) be mailed to an address specified
by the business entity, if any; and
(C) if asked by the business entity,
include relevant information about any
transaction alleged to be a result of
identity theft to facilitate compliance
with this section including–
(i) if known by the victim (or if
readily obtainable by the victim),
the date of the application or
transaction; and
(ii) if known by the victim (or
if readily obtainable by the
victim), any other identifying
information such as an account or
transaction number.
(4) No charge to victim. Information
required to be provided under paragraph (1)
shall be so provided without charge.
(5) Authority to decline to provide
information. A business entity may decline
to provide information under paragraph (1)
if, in the exercise of good faith, the
business entity determines that--
(A) this subsection does not require
disclosure of the information;
(B) after reviewing the information
provided pursuant to paragraph (2), the
business entity does not have a high
degree of confidence in knowing the true
identity of the individual requesting
the information;
(C) the request for the information
is based on a misrepresentation of fact
by the individual requesting the
information relevant to the request for
information; or
(D) the information requested is
Internet navigational data or similar
information about a person's visit to a
website or online service.
(6) Limitation on liability. Except as
provided in
section 621,
sections 616 and
617 do not apply to any
violation of this subsection.
(7) Limitation on civil liability. No
business entity may be held civilly liable
under any provision of Federal, State, or
other law for disclosure, made in good faith
pursuant to this subsection.
(8) No new recordkeeping obligation.
Nothing in this subsection creates an
obligation on the part of a business entity
to obtain, retain, or maintain information
or records that are not otherwise required
to be obtained, retained, or maintained in
the ordinary course of its business or under
other applicable law.
(9) Rule of Construction
(A) In general. No provision of
subtitle A of title V of Public Law
106-102, prohibiting the disclosure of
financial information by a business
entity to third parties shall be used to
deny disclosure of information to the
victim under this subsection.
(B) Limitation. Except as provided in
subparagraph (A), nothing in this
subsection permits a business entity to
disclose information, including
information to law enforcement under
subparagraphs (B) and (C) of paragraph
(1), that the business entity is
otherwise prohibited from disclosing
under any other applicable provision of
Federal or State law.
(10) Affirmative defense. In any civil
action brought to enforce this subsection,
it is an affirmative defense (which the
defendant must establish by a preponderance
of the evidence) for a business entity to
file an affidavit or answer stating that--
(A) the business entity has made a
reasonably diligent search of its
available business records; and
(B) the records requested under this
subsection do not exist or are not
reasonably available.
(11) Definition of victim. For purposes
of this subsection, the term “victim” means
a consumer whose means of identification or
financial information has been used or
transferred (or has been alleged to have
been used or transferred) without the
authority of that consumer, with the intent
to commit, or to aid or abet, an identity
theft or a similar crime.
(12) Effective date. This subsection
shall become effective 180 days after the
date of enactment of this subsection.
(13) Effectiveness study. Not later than
18 months after the date of enactment of
this subsection, the Comptroller General of
the United States shall submit a report to
Congress assessing the effectiveness of this
provision.
(f) Disclosure of Credit Scores
(1) In general. Upon the request of a
consumer for a credit score, a consumer
reporting agency shall supply to the
consumer a statement indicating that the
information and credit scoring model may be
different than the credit score that may be
used by the lender, and a notice which shall
include--
(A) the current credit score of the
consumer or the most recent credit score
of the consumer that was previously
calculated by the credit reporting
agency for a purpose related to the
extension of credit;
(B) the range of possible credit
scores under the model used;
(C) all of the key factors that
adversely affected the credit score of
the consumer in the model used, the
total number of which shall not exceed
4, subject to paragraph (9);
(D) the date on which the credit
score was created; and
(E) the name of the person or entity
that provided the credit score or credit
file upon which the credit score was
created.
(2) Definitions. For purposes of this
subsection, the following definitions shall
apply:
(A) The term “credit score” --
(i) means a numerical value or a
categorization derived from a
statistical tool or modeling system used
by a person who makes or arranges a loan
to predict the likelihood of certain
credit behaviors, including default (and
the numerical value or the
categorization derived from such
analysis may also be referred to as a
“risk predictor” or “risk score”); and
(ii) does not include--
(I) any mortgage score or rating of
an automated underwriting system that
considers one or more factors in
addition to credit information,
including the loan to value ratio, the
amount of down payment, or the financial
assets of a consumer; or
(II) any other elements of the
underwriting process or underwriting
decision.
(B) The term “key factors” means all
relevant elements or reasons adversely
affecting the credit score for the
particular individual, listed in the
order of their importance based on their
effect on the credit score.
(3) Timeframe and manner of disclosure.
The information required by this subsection
shall be provided in the same timeframe and
manner as the information described in
subsection (a).
(4) Applicability to certain uses. This
subsection shall not be construed so as to
compel a consumer reporting agency to
develop or disclose a score if the agency
does not--
(A) distribute scores that are used
in connection with residential real
property loans; or
(B) develop scores that assist credit
providers in understanding the general
credit behavior of a consumer and
predicting the future credit behavior of
the consumer.
(5) Applicability to credit scores
developed by another person.
(A) In general. This subsection shall
not be construed to require a consumer
reporting agency that distributes credit
scores developed by another person or
entity to provide a further explanation
of them, or to process a dispute arising
pursuant to
section 611,
except that the consumer reporting
agency shall provide the consumer with
the name and address and website for
contacting the person or entity who
developed the score or developed the
methodology of the score.
(B) Exception. This paragraph shall
not apply to a consumer reporting agency
that develops or modifies scores that
are developed by another person or
entity.
(6) Maintenance of credit scores not
required. This subsection shall not be
construed to require a consumer reporting
agency to maintain credit scores in its
files.
(7) Compliance in certain cases. In
complying with this subsection, a consumer
reporting agency shall--
(A) supply the consumer with a credit
score that is derived from a credit
scoring model that is widely distributed
to users by that consumer reporting
agency in connection with residential
real property loans or with a credit
score that assists the consumer in
understanding the credit scoring
assessment of the credit behavior of the
consumer and predictions about the
future credit behavior of the consumer;
and
(B) a statement indicating that the
information and credit scoring model may
be different than that used by the
lender.
(8) Fair and reasonable fee. A consumer
reporting agency may charge a fair and
reasonable fee, as determined by the
Commission, for providing the information
required under this subsection. See also
69 Fed. Reg. 64698 (11/08/04)
(9) Use of enquiries as a key factor. If
a key factor that adversely affects the
credit score of a consumer consists of the
number of enquiries made with respect to a
consumer report, that factor shall be
included in the disclosure pursuant to
paragraph (1)(C) without regard to the
numerical limitation in such paragraph.
(g) Disclosure of Credit Scores by Certain
Mortgage Lenders
(1) In general. Any person who makes or
arranges loans and who uses a consumer
credit score, as defined in subsection (f),
in connection with an application initiated
or sought by a consumer for a closed end
loan or the establishment of an open end
loan for a consumer purpose that is secured
by 1 to 4 units of residential real property
(hereafter in this subsection referred to as
the “lender”) shall provide the following to
the consumer as soon as reasonably
practicable:
(A) Information Required under
Subsection (f)
(i) In general. A copy of the
information identified in subsection
(f) that was obtained from a
consumer reporting agency or was
developed and used by the user of
the information.
(ii) Notice under subparagraph
(D). In addition to the information
provided to it by a third party that
provided the credit score or scores,
a lender is only required to provide
the notice contained in subparagraph
(D).
(B) Disclosures in Case of Automated
Underwriting System
(i) In general. If a person that
is subject to this subsection uses
an automated underwriting system to
underwrite a loan, that person may
satisfy the obligation to provide a
credit score by disclosing a credit
score and associated key factors
supplied by a consumer reporting
agency.
(ii) Numerical credit score.
However, if a numerical credit score
is generated by an automated
underwriting system used by an
enterprise, and that score is
disclosed to the person, the score
shall be disclosed to the consumer
consistent with subparagraph (C).
(iii) Enterprise defined. For
purposes of this subparagraph, the
term “enterprise” has the same
meaning as in paragraph (6) of
section 1303 of the Federal Housing
Enterprises Financial Safety and
Soundness Act of 1992.
(C) Disclosures of credit scores not
obtained from a consumer reporting
agency. A person that is subject to the
provisions of this subsection and that
uses a credit score, other than a credit
score provided by a consumer reporting
agency, may satisfy the obligation to
provide a credit score by disclosing a
credit score and associated key factors
supplied by a consumer reporting agency.
(D) Notice to home loan applicants. A
copy of the following notice, which
shall include the name, address, and
telephone number of each consumer
reporting agency providing a credit
score that was used: “Notice To The Home
Loan Applicant
“In connection with your
application for a home loan, the
lender must disclose to you the
score that a consumer reporting
agency distributed to users and the
lender used in connection with your
home loan, and the key factors
affecting your credit scores. “The
credit score is a computer generated
summary calculated at the time of
the request and based on information
that a consumer reporting agency or
lender has on file. The scores are
based on data about your credit
history and payment patterns. Credit
scores are important because they
are used to assist the lender in
determining whether you will obtain
a loan. They may also be used to
determine what interest rate you may
be offered on the mortgage. Credit
scores can change over time,
depending on your conduct, how your
credit history and payment patterns
change, and how credit scoring
technologies change. “Because the
score is based on information in
your credit history, it is very
important that you review the
credit-related information that is
being furnished to make sure it is
accurate. Credit records may vary
from one company to another. “If you
have questions about your credit
score or the credit information that
is furnished to you, contact the
consumer reporting agency at the
address and telephone number
provided with this notice, or
contact the lender, if the lender
developed or generated the credit
score. The consumer reporting agency
plays no part in the decision to
take any action on the loan
application and is unable to provide
you with specific reasons for the
decision on a loan application. “If
you have questions concerning the
terms of the loan, contact the
lender.”
(E) Actions not required under this
subsection. This subsection shall not
require any person to–
(i) explain the information
provided pursuant to subsection (f);
(ii) disclose any information
other than a credit score or key
factors, as defined in subsection
(f);
(iii) disclose any credit score
or related information obtained by
the user after a loan has closed;
(iv) provide more than 1
disclosure per loan transaction; or
(v) provide the disclosure
required by this subsection when
another person has made the
disclosure to the consumer for that
loan transaction.
(F) No Obligation for Content
(i) In general. The obligation of
any person pursuant to this
subsection shall be limited solely
to providing a copy of the
information that was received from
the consumer reporting agency.
(ii) Limit on liability. No
person has liability under this
subsection for the content of that
information or for the omission of
any information within the report
provided by the consumer reporting
agency.
(G) Person defined as excluding
enterprise. As used in this subsection,
the term “person” does not include an
enterprise (as defined in paragraph (6)
of section 1303 of the Federal Housing
Enterprises Financial Safety and
Soundness Act of 1992).
(2) Prohibition on Disclosure Clauses
Null and Void
(A) In general. Any provision in a
contract that prohibits the disclosure
of a credit score by a person who makes
or arranges loans or a consumer
reporting agency is void.
(B) No liability for disclosure under
this subsection- A lender shall not have
liability under any contractual
provision for disclosure of a credit
score pursuant to this subsection.
Table of Contents
(a) In General
(1) Proper identification. A consumer
reporting agency shall require, as a
condition of making the disclosures required
under
section 609 [§
1681g], that the consumer furnish proper
identification.
(2) Disclosure in writing. Except as
provided in subsection (b), the disclosures
required to be made under
section 609 [§ 1681g] shall be provided
under that section in writing.
(b) Other Forms of Disclosure
(1) In general. If authorized by a
consumer, a consumer reporting agency may
make the disclosures required under
609 [§ 1681g]
(A) other than in writing; and
(B) in such form as may be
(i) specified by the consumer in
accordance with paragraph (2); and
(ii) available from the agency.
(2) Form. A consumer may specify pursuant
to paragraph (1) that disclosures under
section 609 [§ 1681g]
shall be made
(A) in person, upon the appearance of
the consumer at the place of business of
the consumer reporting agency where
disclosures are regularly provided,
during normal business hours, and on
reasonable notice;
(B) by telephone, if the consumer has
made a written request for disclosure by
telephone;
(C) by electronic means, if available
from the agency; or
(D) by any other reasonable means
that is available from the agency.
(c) Trained personnel. Any consumer reporting
agency shall provide trained personnel to
explain to the consumer any information
furnished to him pursuant to
section 609 [§ 1681g] of this title.
(d) Persons accompanying consumer. The
consumer shall be permitted to be accompanied by
one other person of his choosing, who shall
furnish reasonable identification. A consumer
reporting agency may require the consumer to
furnish a written statement granting permission
to the consumer reporting agency to discuss the
consumer's file in such person's presence.
(e) Limitation of liability. Except as
provided in
sections 616 and
617 [§§ 1681n and 1681o] of
this title, no consumer may bring any action or
proceeding in the nature of defamation, invasion
of privacy, or negligence with respect to the
reporting of information against any consumer
reporting agency, any user of information, or
any person who furnishes information to a
consumer reporting agency, based on information
disclosed pursuant to
section 609,
610, or 615
[§§ 1681g, 1681h, or 1681m] of this title or
based on information disclosed by a user of a
consumer report to or for a consumer against
whom the user has taken adverse action, based in
whole or in part on the report, except as to
false information furnished with malice or
willful intent to injure such consumer.
Table of Contents
(a) Reinvestigations of Disputed Information
(1) Reinvestigation Required
(A) In general. Subject to subsection
(f), if the completeness or accuracy of
any item of information contained in a
consumer's file at a consumer reporting
agency is disputed by the consumer and
the consumer notifies the agency
directly, or indirectly through a
reseller, of such dispute, the agency
shall, free of charge, conduct a
reasonable reinvestigation to determine
whether the disputed information is
inaccurate and record the current status
of the disputed information, or delete
the item from the file in accordance
with paragraph (5), before the end of
the 30-day period beginning on the date
on which the agency receives the notice
of the dispute from the consumer or
reseller.
(B) Extension of period to
reinvestigate. Except as provided in
subparagraph (C), the 30-day period
described in subparagraph (A) may be
extended for not more than 15 additional
days if the consumer reporting agency
receives information from the consumer
during that 30-day period that is
relevant to the reinvestigation.
(C) Limitations on extension of
period to reinvestigate. Subparagraph
(B) shall not apply to any
reinvestigation in which, during the
30-day period described in subparagraph
(A), the information that is the subject
of the reinvestigation is found to be
inaccurate or incomplete or the consumer
reporting agency determines that the
information cannot be verified.
(2) Prompt Notice of Dispute to Furnisher
of Information
(A) In general. Before the expiration
of the 5-business-day period beginning
on the date on which a consumer
reporting agency receives notice of a
dispute from any consumer or a reseller
in accordance with paragraph (1), the
agency shall provide notification of the
dispute to any person who provided any
item of information in dispute, at the
address and in the manner established
with the person. The notice shall
include all relevant information
regarding the dispute that the agency
has received from the consumer or
reseller.
(B) Provision of other information.
The consumer reporting agency shall
promptly provide to the person who
provided the information in dispute all
relevant information regarding the
dispute that is received by the agency
from the consumer or the reseller after
the period referred to in subparagraph
(A) and before the end of the period
referred to in paragraph (1)(A).
(3) Determination That Dispute Is
Frivolous or Irrelevant
(A) In general. Notwithstanding
paragraph (1), a consumer reporting
agency may terminate a reinvestigation
of information disputed by a consumer
under that paragraph if the agency
reasonably determines that the dispute
by the consumer is frivolous or
irrelevant, including by reason of a
failure by a consumer to provide
sufficient information to investigate
the disputed information.
(B) Notice of determination. Upon
making any determination in accordance
with subparagraph (A) that a dispute is
frivolous or irrelevant, a consumer
reporting agency shall notify the
consumer of such determination not later
than 5 business days after making such
determination, by mail or, if authorized
by the consumer for that purpose, by any
other means available to the agency.
(C) Contents of notice. A notice
under subparagraph (B) shall include
(i) the reasons for the determination
under subparagraph (A); and
(ii) identification of any
information required to investigate the
disputed information, which may consist
of a standardized form describing the
general nature of such information.
(4) Consideration of consumer
information. In conducting any
reinvestigation under paragraph (1) with
respect to disputed information in the file
of any consumer, the consumer reporting
agency shall review and consider all
relevant information submitted by the
consumer in the period described in
paragraph (1)(A) with respect to such
disputed information.
(5) Treatment of Inaccurate or
Unverifiable Information
(A) In general. If, after any
reinvestigation under paragraph (1) of
any information disputed by a consumer,
an item of the information is found to
be inaccurate or incomplete or cannot be
verified, the consumer reporting agency
shall–
(i) promptly delete that item of
information from the file of the
consumer, or modify that item of
information, as appropriate, based
on the results of the
reinvestigation; and
(ii) promptly notify the
furnisher of that information that
the information has been modified or
deleted from the file of the
consumer.
(B) Requirements Relating to
Reinsertion of Previously Deleted
Material
(i) Certification of accuracy of
information. If any information is
deleted from a consumer's file
pursuant to subparagraph (A), the
information may not be reinserted in
the file by the consumer reporting
agency unless the person who
furnishes the information certifies
that the information is complete and
accurate.
(ii) Notice to consumer. If any
information that has been deleted
from a consumer's file pursuant to
subparagraph (A) is reinserted in
the file, the consumer reporting
agency shall notify the consumer of
the reinsertion in writing not later
than 5 business days after the
reinsertion or, if authorized by the
consumer for that purpose, by any
other means available to the agency.
(iii) Additional information. As
part of, or in addition to, the
notice under clause (ii), a consumer
reporting agency shall provide to a
consumer in writing not later than 5
business days after the date of the
reinsertion
(I) a statement that the
disputed information has been
reinserted;
(II) the business name and
address of any furnisher of
information contacted and the
telephone number of such
furnisher, if reasonably
available, or of any furnisher
of information that contacted
the consumer reporting agency,
in connection with the
reinsertion of such information;
and
(III) a notice that the
consumer has the right to add a
statement to the consumer's file
disputing the accuracy or
completeness of the disputed
information.
(C) Procedures to prevent
reappearance. A consumer reporting
agency shall maintain reasonable
procedures designed to prevent the
reappearance in a consumer's file, and
in consumer reports on the consumer, of
information that is deleted pursuant to
this paragraph (other than information
that is reinserted in accordance with
subparagraph (B)(i)).
(D) Automated reinvestigation system.
Any consumer reporting agency that
compiles and maintains files on
consumers on a nationwide basis shall
implement an automated system through
which furnishers of information to that
consumer reporting agency may report the
results of a reinvestigation that finds
incomplete or inaccurate information in
a consumer's file to other such consumer
reporting agencies.
(6) Notice of Results of Reinvestigation
(A) In general. A consumer reporting
agency shall provide written notice to a
consumer of the results of a
reinvestigation under this subsection
not later than 5 business days after the
completion of the reinvestigation, by
mail or, if authorized by the consumer
for that purpose, by other means
available to the agency.
(B) Contents. As part of, or in
addition to, the notice under
subparagraph (A), a consumer reporting
agency shall provide to a consumer in
writing before the expiration of the
5-day period referred to in subparagraph
(A)
(i) a statement that the
reinvestigation is completed;
(ii) a consumer report that is
based upon the consumer's file as
that file is revised as a result of
the reinvestigation;
(iii) a notice that, if requested
by the consumer, a description of
the procedure used to determine the
accuracy and completeness of the
information shall be provided to the
consumer by the agency, including
the business name and address of any
furnisher of information contacted
in connection with such information
and the telephone number of such
furnisher, if reasonably available;
(iv) a notice that the consumer
has the right to add a statement to
the consumer's file disputing the
accuracy or completeness of the
information; and
(v) a notice that the consumer
has the right to request under
subsection (d) that the consumer
reporting agency furnish
notifications under that subsection.
(7) Description of reinvestigation
procedure. A consumer reporting agency shall
provide to a consumer a description referred
to in paragraph (6)(B)(iii) by not later
than 15 days after receiving a request from
the consumer for that description.
(8) Expedited dispute resolution. If a
dispute regarding an item of information in
a consumer's file at a consumer reporting
agency is resolved in accordance with
paragraph (5)(A) by the deletion of the
disputed information by not later than 3
business days after the date on which the
agency receives notice of the dispute from
the consumer in accordance with paragraph
(1)(A), then the agency shall not be
required to comply with paragraphs (2), (6),
and (7) with respect to that dispute if the
agency
(A) provides prompt notice of the
deletion to the consumer by telephone;
(B) includes in that notice, or in a
written notice that accompanies a
confirmation and consumer report
provided in accordance with subparagraph
(C), a statement of the consumer's right
to request under subsection (d) that the
agency furnish notifications under that
subsection; and
(C) provides written confirmation of
the deletion and a copy of a consumer
report on the consumer that is based on
the consumer's file after the deletion,
not later than 5 business days after
making the deletion.
(b) Statement of dispute. If the
reinvestigation does not resolve the dispute,
the consumer may file a brief statement setting
forth the nature of the dispute. The consumer
reporting agency may limit such statements to
not more than one hundred words if it provides
the consumer with assistance in writing a clear
summary of the dispute.
(c) Notification of consumer dispute in
subsequent consumer reports. Whenever a
statement of a dispute is filed, unless there is
reasonable grounds to believe that it is
frivolous or irrelevant, the consumer reporting
agency shall, in any subsequent report
containing the information in question, clearly
note that it is disputed by the consumer and
provide either the consumer's statement or a
clear and accurate codification or summary
thereof.
(d) Notification of deletion of disputed
information. Following any deletion of
information which is found to be inaccurate or
whose accuracy can no longer be verified or any
notation as to disputed information, the
consumer reporting agency shall, at the request
of the consumer, furnish notification that the
item has been deleted or the statement,
codification or summary pursuant to subsection
(b) or (c) of this section to any person
specifically designated by the consumer who has
within two years prior thereto received a
consumer report for employment purposes, or
within six months prior thereto received a
consumer report for any other purpose, which
contained the deleted or disputed information.
(e) Treatment of Complaints and Report to
Congress
(1) In general. The Commission shall--
(A) compile all complaints that it
receives that a file of a consumer that
is maintained by a consumer reporting
agency described in section 603(p) contains incomplete
or inaccurate information, with respect
to which, the consumer appears to have
disputed the completeness or accuracy
with the consumer reporting agency or
otherwise utilized the procedures
provided by subsection (a); and
(B) transmit each such complaint to
each consumer reporting agency involved.
(2) Exclusion. Complaints received or
obtained by the Commission pursuant to its
investigative authority under the Federal
Trade Commission Act shall not be subject to
paragraph (1).
(3) Agency responsibilities. Each
consumer reporting agency described in
section 603(p) that
receives a complaint transmitted by the
Commission pursuant to paragraph (1) shall--
(A) review each such complaint to
determine whether all legal obligations
imposed on the consumer reporting agency
under this title (including any
obligation imposed by an applicable
court or administrative order) have been
met with respect to the subject matter
of the complaint;
(B) provide reports on a regular
basis to the Commission regarding the
determinations of and actions taken by
the consumer reporting agency, if any,
in connection with its review of such
complaints; and
(C) maintain, for a reasonable time
period, records regarding the
disposition of each such complaint that
is sufficient to demonstrate compliance
with this subsection.
(4) Rulemaking authority. The Commission
may prescribe regulations, as appropriate to
implement this subsection.
(5) Annual report. The Commission shall
submit to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the
Committee on Financial Services of the House
of Representatives an annual report
regarding information gathered by the
Commission under this subsection.'.
(f) Reinvestigation Requirement Applicable to
Resellers
(1) Exemption from general reinvestigation
requirement. Except as provided in paragraph
(2), a reseller shall be exempt from the
requirements of this section.
(2) Action required upon receiving notice of
a dispute. If a reseller receives a notice from
a consumer of a dispute concerning the
completeness or accuracy of any item of
information contained in a consumer report on
such consumer produced by the reseller, the
reseller shall, within 5 business days of
receiving the notice, and free of charge–
(A) determine whether the item of
information is incomplete or inaccurate as a
result of an act or omission of the
reseller; and
(B) if
(i) the reseller determines that the
item of information is incomplete or
inaccurate as a result of an act or
omission of the reseller, not later than
20 days after receiving the notice,
correct the information in the consumer
report or delete it; or
(ii) if the reseller determines that
the item of information is not
incomplete or inaccurate as a result of
an act or omission of the reseller,
convey the notice of the dispute,
together with all relevant information
provided by the consumer, to each
consumer reporting agency that provided
the reseller with the information that
is the subject of the dispute, using an
address or a notification mechanism
specified by the consumer reporting
agency for such notices.
(3) Responsibility of consumer reporting
agency to notify consumer through reseller.
Upon the completion of a reinvestigation
under this section of a dispute concerning
the completeness or accuracy of any
information in the file of a consumer by a
consumer reporting agency that received
notice of the dispute from a reseller under
paragraph (2)--
(A) the notice by the consumer
reporting agency under paragraph (6),
(7), or (8) of subsection (a) shall be
provided to the reseller in lieu of the
consumer; and
(B) the reseller shall immediately
reconvey such notice to the consumer,
including any notice of a deletion by
telephone in the manner required under
paragraph (8)(A).
(4) Reseller reinvestigations. No
provision of this subsection shall be
construed as prohibiting a reseller from
conducting a reinvestigation of a consumer
dispute directly.
Table of Contents
(a) Free Annual Disclosure
(1) Nationwide Consumer Reporting
Agencies
(A) In general. All consumer
reporting agencies described in
subsections (p) and (w) of
section 603 shall
make all disclosures pursuant to
section 609 once
during any 12-month period upon request
of the consumer and without charge to
the consumer.
(B) Centralized source. Subparagraph
(A) shall apply with respect to a
consumer reporting agency described in
section 603(p) only
if the request from the consumer is made
using the centralized source established
for such purpose in accordance with
section 211(c) of the Fair and Accurate
Credit Transactions Act of 2003.
(C) Nationwide Specialty Consumer
Reporting Agency
(i) In general. The Commission
shall prescribe regulations
applicable to each consumer
reporting agency described in
section 603(w) to require the establishment of a
streamlined process for consumers to
request consumer reports under
subparagraph (A), which shall
include, at a minimum, the
establishment by each such agency of
a toll-free telephone number for
such requests.
(ii) Considerations. In
prescribing regulations under clause
(i), the Commission shall consider–
(I) the significant demands
that may be placed on consumer
reporting agencies in providing
such consumer reports;
(II) appropriate means to
ensure that consumer reporting
agencies can satisfactorily meet
those demands, including the
efficacy of a system of
staggering the availability to
consumers of such consumer
reports; and
(III) the ease by which
consumers should be able to
contact consumer reporting
agencies with respect to access
to such consumer reports.
(iii) Date of issuance. The
Commission shall issue the
regulations required by this
subparagraph in final form not later
than 6 months after the date of
enactment of the Fair and Accurate
Credit Transactions Act of 2003.
(iv) Consideration of ability to
comply. The regulations of the
Commission under this subparagraph
shall establish an effective date by
which each nationwide specialty
consumer reporting agency (as
defined in section
603(w)) shall be required to
comply with subsection (a), which
effective date--
(I) shall be established
after consideration of the
ability of each nationwide
specialty consumer reporting
agency to comply with subsection
(a); and
(II) shall be not later than
6 months after the date on which
such regulations are issued in
final form (or such additional
period not to exceed 3 months,
as the Commission determines
appropriate).
(2) Timing. A consumer reporting agency
shall provide a consumer report under
paragraph (1) not later than 15 days after
the date on which the request is received
under paragraph (1).
(3) Reinvestigations. Notwithstanding the
time periods specified in section 611(a)(1), a reinvestigation
under that section by a consumer reporting
agency upon a request of a consumer that is
made after receiving a consumer report under
this subsection shall be completed not later
than 45 days after the date on which the
request is received.
(4) Exception for first 12 months of
operation. This subsection shall not apply
to a consumer reporting agency that has not
been furnishing consumer reports to third
parties on a continuing basis during the
12-month period preceding a request under
paragraph (1), with respect to consumers
residing nationwide.
(b) Free disclosure after adverse notice to
consumer. Each consumer reporting agency that
maintains a file on a consumer shall make all
disclosures pursuant to section
609 [§ 1681g] without charge to the consumer
if, not later than 60 days after receipt by such
consumer of a notification pursuant to
section 615 [§ 1681m], or of
a notification from a debt collection agency
affiliated with that consumer reporting agency
stating that the consumer's credit rating may be
or has been adversely affected, the consumer
makes a request under
section 609
[§ 1681g].
(c) Free disclosure under certain other
circumstances. Upon the request of the consumer,
a consumer reporting agency shall make all
disclosures pursuant to
section
609 [§ 1681g] once during any 12-month
period without charge to that consumer if the
consumer certifies in writing that the consumer
(1) is unemployed and intends to apply
for employment in the 60-day period
beginning on the date on which the
certification is made;
(2) is a recipient of public welfare
assistance; or
(3) has reason to believe that the file
on the consumer at the agency contains
inaccurate information due to fraud.
(d) Free disclosures in connection with fraud
alerts. Upon the request of a consumer, a
consumer reporting agency described in
section 603(p) shall make
all disclosures pursuant to
section 609 without charge to the consumer,
as provided in subsections (a)(2) and (b)(2) of
section 605A, as applicable.
(e) Other charges prohibited A consumer
reporting agency shall not impose any charge on
a consumer for providing any notification
required by this title or making any disclosure
required by this title, except as authorized by
subsection (f).
(f) Reasonable Charges Allowed for Certain
Disclosures
(1) In general. In the case of a request
from a consumer other than a request that is
covered by any of subsections (a) through
(d), a consumer reporting agency may impose
a reasonable charge on a consumer
(A) for making a disclosure to the
consumer pursuant to
section 609 [§ 1681g], which charge
(i) shall not exceed $8; and
(ii) shall be indicated to the
consumer before making the
disclosure; and
(B) for furnishing, pursuant to
611(d) [§ 1681i],
following a reinvestigation under
section 611(a) [§
1681i], a statement, codification, or
summary to a person designated by the
consumer under that section after the
30-day period beginning on the date of
notification of the consumer under
paragraph (6) or (8) of section 611(a) [§ 1681i] with
respect to the reinvestigation, which
charge
(i) shall not exceed the charge
that the agency would impose on each
designated recipient for a consumer
report; and
(ii) shall be indicated to the
consumer before furnishing such
information.
(2) Modification of amount. The Federal
Trade Commission shall increase the amount
referred to in paragraph (1)(A)(I) on
January 1 of each year, based proportionally
on changes in the Consumer Price Index, with
fractional changes rounded to the nearest
fifty cents.
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(a) In general. A consumer reporting agency
which furnishes a consumer report for employment
purposes and which for that purpose compiles and
reports items of information on consumers which
are matters of public record and are likely to
have an adverse effect upon a consumer's ability
to obtain employment shall
(1) at the time such public record
information is reported to the user of such
consumer report, notify the consumer of the
fact that public record information is being
reported by the consumer reporting agency,
together with the name and address of the
person to whom such information is being
reported; or
(2) maintain strict procedures designed
to insure that whenever public record
information which is likely to have an
adverse effect on a consumer's ability to
obtain employment is reported it is complete
and up to date. For purposes of this
paragraph, items of public record relating
to arrests, indictments, convictions, suits,
tax liens, and outstanding judgments shall
be considered up to date if the current
public record status of the item at the time
of the report is reported.
(b) Exemption for national security
investigations. Subsection (a) does not apply in
the case of an agency or department of the
United States Government that seeks to obtain
and use a consumer report for employment
purposes, if the head of the agency or
department makes a written finding as prescribed
under section 604(b)(4)(A).
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Whenever a consumer reporting agency prepares
an investigative consumer report, no adverse
information in the consumer report (other than
information which is a matter of public record)
may be included in a subsequent consumer report
unless such adverse information has been
verified in the process of making such
subsequent consumer report, or the adverse
information was received within the three-month
period preceding the date the subsequent report
is furnished.
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(a) Duties of users taking adverse actions on
the basis of information contained in consumer
reports. If any person takes any adverse action
with respect to any consumer that is based in
whole or in part on any information contained in
a consumer report, the person shall
(1) provide oral, written, or electronic
notice of the adverse action to the
consumer;
(2) provide to the consumer orally, in
writing, or electronically
(A) the name, address, and telephone
number of the consumer reporting agency
(including a toll-free telephone number
established by the agency if the agency
compiles and maintains files on
consumers on a nationwide basis) that
furnished the report to the person; and
(B) a statement that the consumer
reporting agency did not make the
decision to take the adverse action and
is unable to provide the consumer the
specific reasons why the adverse action
was taken; and
(3) provide to the consumer an oral,
written, or electronic notice of the
consumer's right
(A) to obtain, under
section 612 [§ 1681j], a free copy
of a consumer report on the consumer
from the consumer reporting agency
referred to in paragraph (2), which
notice shall include an indication of
the 60-day period under that section for
obtaining such a copy; and
(B) to dispute, under
section 611 [§ 1681i], with a
consumer reporting agency the accuracy
or completeness of any information in a
consumer report furnished by the agency.
(b) Adverse Action Based on Information
Obtained from Third Parties Other than Consumer
Reporting Agencies
(1) In general. Whenever credit for
personal, family, or household purposes
involving a consumer is denied or the charge
for such credit is increased either wholly
or partly because of information obtained
from a person other than a consumer
reporting agency bearing upon the consumer's
credit worthiness, credit standing, credit
capacity, character, general reputation,
personal characteristics, or mode of living,
the user of such information shall, within a
reasonable period of time, upon the
consumer's written request for the reasons
for such adverse action received within
sixty days after learning of such adverse
action, disclose the nature of the
information to the consumer. The user of
such information shall clearly and
accurately disclose to the consumer his
right to make such written request at the
time such adverse action is communicated to
the consumer.
(2) Duties of Person Taking Certain
Actions Based on Information Provided by
Affiliate
(A) Duties, generally. If a person
takes an action described in
subparagraph (B) with respect to a
consumer, based in whole or in part on
information described in subparagraph
(C), the person shall
(i) notify the consumer of the
action, including a statement that
the consumer may obtain the
information in accordance with
clause (ii); and
(ii) upon a written request from
the consumer received within 60 days
after transmittal of the notice
required by clause (I), disclose to
the consumer the nature of the
information upon which the action is
based by not later than 30 days
after receipt of the request.
(B) Action described. An action
referred to in subparagraph (A) is an
adverse action described in
section 603(k)(1)(A)
[§ 1681a], taken in connection with a
transaction initiated by the consumer,
or any adverse action described in
clause (i) or (ii) of section 603(k)(1)(B) [§ 1681a].
(C) Information described.
Information referred to in subparagraph
(A)
(i) except as provided in clause
(ii), is information that
(I) is furnished to the
person taking the action by a
person related by common
ownership or affiliated by
common corporate control to the
person taking the action; and
(II) bears on the credit
worthiness, credit standing,
credit capacity, character,
general reputation, personal
characteristics, or mode of
living of the consumer; and
(ii) does not include
(I) information solely as to
transactions or experiences
between the consumer and the
person furnishing the
information; or
(II) information in a
consumer report.
(c) Reasonable procedures to assure
compliance. No person shall be held liable for
any violation of this section if he shows by a
preponderance of the evidence that at the time
of the alleged violation he maintained
reasonable procedures to assure compliance with
the provisions of this section.
(d) Duties of Users Making Written Credit or
Insurance Solicitations on the Basis of
Information Contained in Consumer Files
(1) In general. Any person who uses a
consumer report on any consumer in
connection with any credit or insurance
transaction that is not initiated by the
consumer, that is provided to that person
under section 604(c)(1)(B)
[§ 1681b], shall provide with each written
solicitation made to the consumer regarding
the transaction a clear and conspicuous
statement that
(A) information contained in the
consumer's consumer report was used in
connection with the transaction;
(B) the consumer received the offer
of credit or insurance because the
consumer satisfied the criteria for
credit worthiness or insurability under
which the consumer was selected for the
offer;
(C) if applicable, the credit or
insurance may not be extended if, after
the consumer responds to the offer, the
consumer does not meet the criteria used
to select the consumer for the offer or
any applicable criteria bearing on
credit worthiness or insurability or
does not furnish any required
collateral;
(D) the consumer has a right to
prohibit information contained in the
consumer's file with any consumer
reporting agency from being used in
connection with any credit or insurance
transaction that is not initiated by the
consumer; and
(E) the consumer may exercise the
right referred to in subparagraph (D) by
notifying a notification system
established under section 604(e) [§ 1681b].
(2) Disclosure of address and telephone
number; format. A statement under paragraph
(1) shall--
(A) include the address and toll-free
telephone number of the appropriate
notification system established under
section 604(e); and
(B) be presented in such format and
in such type size and manner as to be
simple and easy to understand, as
established by the Commission, by rule,
in consultation with the Federal banking
agencies and the National Credit Union
Administration. See also 16 CFR Part
642
(3) Maintaining criteria on file. A
person who makes an offer of credit or
insurance to a consumer under a credit or
insurance transaction described in paragraph
(1) shall maintain on file the criteria used
to select the consumer to receive the offer,
all criteria bearing on credit worthiness or
insurability, as applicable, that are the
basis for determining whether or not to
extend credit or insurance pursuant to the
offer, and any requirement for the
furnishing of collateral as a condition of
the extension of credit or insurance, until
the expiration of the 3-year period
beginning on the date on which the offer is
made to the consumer.
(4) Authority of federal agencies
regarding unfair or deceptive acts or
practices not affected. This section is not
intended to affect the authority of any
Federal or State agency to enforce a
prohibition against unfair or deceptive acts
or practices, including the making of false
or misleading statements in connection with
a credit or insurance transaction that is
not initiated by the consumer.
(e) Red Flag Guidelines and Regulations
Required
(1) Guidelines. The Federal banking
agencies, the National Credit Union
Administration, and the Commission shall
jointly, with respect to the entities that
are subject to their respective enforcement
authority under
section 621–
(A) establish and maintain guidelines
for use by each financial institution
and each creditor regarding identity
theft with respect to account holders
at, or customers of, such entities, and
update such guidelines as often as
necessary;
(B) prescribe regulations requiring
each financial institution and each
creditor to establish reasonable
policies and procedures for implementing
the guidelines established pursuant to
subparagraph (A), to identify possible
risks to account holders or customers or
to the safety and soundness of the
institution or customers; and
(C) prescribe regulations applicable
to card issuers to ensure that, if a
card issuer receives notification of a
change of address for an existing
account, and within a short period of
time (during at least the first 30 days
after such notification is received)
receives a request for an additional or
replacement card for the same account,
the card issuer may not issue the
additional or replacement card, unless
the card issuer, in accordance with
reasonable policies and procedures--
(i) notifies the cardholder of
the request at the former address of
the cardholder and provides to the
cardholder a means of promptly
reporting incorrect address changes;
(ii) notifies the cardholder of
the request by such other means of
communication as the cardholder and
the card issuer previously agreed
to; or
(iii) uses other means of
assessing the validity of the change
of address, in accordance with
reasonable policies and procedures
established by the card issuer in
accordance with the regulations
prescribed under subparagraph (B).
(2) Criteria
(A) In general. In developing the
guidelines required by paragraph (1)(A),
the agencies described in paragraph (1)
shall identify patterns, practices, and
specific forms of activity that indicate
the possible existence of identity
theft.
(B) Inactive accounts. In developing
the guidelines required by paragraph
(1)(A), the agencies described in
paragraph (1) shall consider including
reasonable guidelines providing that
when a transaction occurs with respect
to a credit or deposit account that has
been inactive for more than 2 years, the
creditor or financial institution shall
follow reasonable policies and
procedures that provide for notice to be
given to a consumer in a manner
reasonably designed to reduce the
likelihood of identity theft with
respect to such account.
(3) Consistency with verification
requirements. Guidelines established
pursuant to paragraph (1) shall not be
inconsistent with the policies and
procedures required under section 5318(l) of
title 31, United States Code.
(f) Prohibition on Sale or Transfer of Debt
Caused by Identity Theft
(1) In general. No person shall sell,
transfer for consideration, or place for
collection a debt that such person has been
notified under
section 605B
has resulted from identity theft.
(2) Applicability. The prohibitions of
this subsection shall apply to all persons
collecting a debt described in paragraph (1)
after the date of a notification under
paragraph (1).
(3) Rule of construction. Nothing in this
subsection shall be construed to prohibit--
(A) the repurchase of a debt in any
case in which the assignee of the debt
requires such repurchase because the
debt has resulted from identity theft;
(B) the securitization of a debt or
the pledging of a portfolio of debt as
collateral in connection with a
borrowing; or
(C) the transfer of debt as a result
of a merger, acquisition, purchase and
assumption transaction, or transfer of
substantially all of the assets of an
entity.
(g) Debt collector communications concerning
identity theft. If a person acting as a debt
collector (as that term is defined in title
VIII) on behalf of a third party that is a
creditor or other user of a consumer report is
notified that any information relating to a debt
that the person is attempting to collect may be
fraudulent or may be the result of identity
theft, that person shall--
(1) notify the third party that the
information may be fraudulent or may be the
result of identity theft; and
(2) upon request of the consumer to whom
the debt purportedly relates, provide to the
consumer all information to which the
consumer would otherwise be entitled if the
consumer were not a victim of identity
theft, but wished to dispute the debt under
provisions of law applicable to that person.
(h) Duties of Users in Certain Credit
Transactions
(1) In general. Subject to rules
prescribed as provided in paragraph (6), if
any person uses a consumer report in
connection with an application for, or a
grant, extension, or other provision of,
credit on material terms that are materially
less favorable than the most favorable terms
available to a substantial proportion of
consumers from or through that person, based
in whole or in part on a consumer report,
the person shall provide an oral, written,
or electronic notice to the consumer in the
form and manner required by regulations
prescribed in accordance with this
subsection.
(2) Timing. The notice required under
paragraph (1) may be provided at the time of
an application for, or a grant, extension,
or other provision of, credit or the time of
communication of an approval of an
application for, or grant, extension, or
other provision of, credit, except as
provided in the regulations prescribed under
paragraph (6).
(3) Exceptions. No notice shall be
required from a person under this subsection
if–
(A) the consumer applied for specific
material terms and was granted those
terms, unless those terms were initially
specified by the person after the
transaction was initiated by the
consumer and after the person obtained a
consumer report; or
(B) the person has provided or will
provide a notice to the consumer under
subsection (a) in connection with the
transaction.
(4) Other notice not sufficient. A person
that is required to provide a notice under
subsection (a) cannot meet that requirement
by providing a notice under this subsection.
(5) Content and delivery of notice. A
notice under this subsection shall, at a
minimum–
(A) include a statement informing the
consumer that the terms offered to the
consumer are set based on information
from a consumer report;
(B) identify the consumer reporting
agency furnishing the report;
(C) include a statement informing the
consumer that the consumer may obtain a
copy of a consumer report from that
consumer reporting agency without
charge; and
(D) include the contact information
specified by that consumer reporting
agency for obtaining such consumer
reports (including a toll-free telephone
number established by the agency in the
case of a consumer reporting agency
described in section
603(p)).
(6) Rulemaking
(A) Rules required. The Commission
and the Board shall jointly prescribe
rules.
(B) Content. Rules required by
subparagraph (A) shall address, but are
not limited to–
(i) the form, content, time, and
manner of delivery of any notice
under this subsection;
(ii) clarification of the meaning
of terms used in this subsection,
including what credit terms are
material, and when credit terms are
materially less favorable;
(iii) exceptions to the notice
requirement under this subsection
for classes of persons or
transactions regarding which the
agencies determine that notice would
not significantly benefit consumers;
(iv) a model notice that may be
used to comply with this subsection;
and
(v) the timing of the notice
required under paragraph (1),
including the circumstances under
which the notice must be provided
after the terms offered to the
consumer were set based on
information from a consumer report.
(7) Compliance. A person shall not be
liable for failure to perform the duties
required by this section if, at the time of
the failure, the person maintained
reasonable policies and procedures to comply
with this section.
(8) Enforcement
(A) No civil actions.
Sections 616 and 617
shall not apply to any failure by any
person to comply with this section.
(B) Administrative enforcement. This
section shall be enforced exclusively
under
section 621 by
the Federal agencies and officials
identified in that section.
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(a) In general. Any person who willfully
fails to comply with any requirement imposed
under this title with respect to any consumer is
liable to that consumer in an amount equal to
the sum of
(1)
(A) any actual damages sustained by
the consumer as a result of the failure
or damages of not less than $100 and not
more than $1,000; or
(B) in the case of liability of a
natural person for obtaining a consumer
report under false pretenses or
knowingly without a permissible purpose,
actual damages sustained by the consumer
as a result of the failure or $1,000,
whichever is greater;
(2) such amount of punitive damages as
the court may allow; and
(3) in the case of any successful action
to enforce any liability under this section,
the costs of the action together with
reasonable attorney's fees as determined by
the court.
(b) Civil liability for knowing
noncompliance. Any person who obtains a consumer
report from a consumer reporting agency under
false pretenses or knowingly without a
permissible purpose shall be liable to the
consumer reporting agency for actual damages
sustained by the consumer reporting agency or
$1,000, whichever is greater.
(c) Attorney's fees. Upon a finding by the
court that an unsuccessful pleading, motion, or
other paper filed in connection with an action
under this section was filed in bad faith or for
purposes of harassment, the court shall award to
the prevailing party attorney's fees reasonable
in relation to the work expended in responding
to the pleading, motion, or other paper.
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(a) In general. Any person who is negligent
in failing to comply with any requirement
imposed under this title with respect to any
consumer is liable to that consumer in an amount
equal to the sum of
(1) any actual damages sustained by the
consumer as a result of the failure; and
(2) in the case of any successful action
to enforce any liability under this section,
the costs of the action together with
reasonable attorney's fees as determined by
the court.
(b) Attorney's fees. On a finding by the
court that an unsuccessful pleading, motion, or
other paper filed in connection with an action
under this section was filed in bad faith or for
purposes of harassment, the court shall award to
the prevailing party attorney's fees reasonable
in relation to the work expended in responding
to the pleading, motion, or other paper.
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An action to enforce any liability created
under this title may be brought in any
appropriate United States district court,
without regard to the amount in controversy, or
in any other court of competent jurisdiction,
not later than the earlier of (1) 2 years after
the date of discovery by the plaintiff of the
violation that is the basis for such liability;
or (2) 5 years after the date on which the
violation that is the basis for such liability
occurs.
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Any person who knowingly and willfully
obtains information on a consumer from a
consumer reporting agency under false pretenses
shall be fined under title 18, United States
Code, imprisoned for not more than 2 years, or
both.
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Any officer or employee of a consumer
reporting agency who knowingly and willfully
provides information concerning an individual
from the agency's files to a person not
authorized to receive that information shall be
fined under title 18, United States Code,
imprisoned for not more than 2 years, or both.
Table of Contents
(a)
(1) Enforcement by Federal Trade
Commission. Compliance with the requirements
imposed under this title shall be enforced
under the Federal Trade Commission Act [15
U.S.C. §§ 41 et seq.] by the Federal Trade
Commission with respect to consumer
reporting agencies and all other persons
subject thereto, except to the extent that
enforcement of the requirements imposed
under this title is specifically committed
to some other government agency under
subsection (b) hereof. For the purpose of
the exercise by the Federal Trade Commission
of its functions and powers under the
Federal Trade Commission Act, a violation of
any requirement or prohibition imposed under
this title shall constitute an unfair or
deceptive act or practice in commerce in
violation of section 5(a) of the Federal
Trade Commission Act [15 U.S.C. § 45(a)] and
shall be subject to enforcement by the
Federal Trade Commission under section 5(b)
thereof [15 U.S.C. § 45(b)] with respect to
any consumer reporting agency or person
subject to enforcement by the Federal Trade
Commission pursuant to this subsection,
irrespective of whether that person is
engaged in commerce or meets any other
jurisdictional tests in the Federal Trade
Commission Act. The Federal Trade Commission
shall have such procedural, investigative,
and enforcement powers, including the power
to issue procedural rules in enforcing
compliance with the requirements imposed
under this title and to require the filing
of reports, the production of documents, and
the appearance of witnesses as though the
applicable terms and conditions of the
Federal Trade Commission Act were part of
this title. Any person violating any of the
provisions of this title shall be subject to
the penalties and entitled to the privileges
and immunities provided in the Federal Trade
Commission Act as though the applicable
terms and provisions thereof were part of
this title.
(2)
(A) In the event of a knowing
violation, which constitutes a pattern
or practice of violations of this title,
the Commission may commence a civil
action to recover a civil penalty in a
district court of the United States
against any person that violates this
title. In such action, such person shall
be liable for a civil penalty of not
more than $2,500 per violation.
(B) In determining the amount of a
civil penalty under subparagraph (A),
the court shall take into account the
degree of culpability, any history of
prior such conduct, ability to pay,
effect on ability to continue to do
business, and such other matters as
justice may require.
(3) Notwithstanding paragraph (2), a
court may not impose any civil penalty on a
person for a violation of section 623(a)(1)
[§ 1681s-2] unless the
person has been enjoined from committing the
violation, or ordered not to commit the
violation, in an action or proceeding
brought by or on behalf of the Federal Trade
Commission, and has violated the injunction
or order, and the court may not impose any
civil penalty for any violation occurring
before the date of the violation of the
injunction or order.
(b) Enforcement by other agencies. Compliance
with the requirements imposed under this title
with respect to consumer reporting agencies,
persons who use consumer reports from such
agencies, persons who furnish information to
such agencies, and users of information that are
subject to subsection (d) of
section 615 [§ 1681m] shall be enforced
under
(1) section 8 of the Federal Deposit
Insurance Act [12 U.S.C. § 1818], in the
case of
(A) national banks, and Federal
branches and Federal agencies of foreign
banks, by the Office of the Comptroller
of the Currency;
(B) member banks of the Federal
Reserve System (other than national
banks), branches and agencies of foreign
banks (other than Federal branches,
Federal agencies, and insured State
branches of foreign banks), commercial
lending companies owned or controlled by
foreign banks, and organizations
operating under section 25 or 25A of the
Federal Reserve Act [12 U.S.C. §§ 601 et
seq., §§ 611 et seq], by the Board of
Governors of the Federal Reserve System;
and
(C) banks insured by the Federal
Deposit Insurance Corporation (other
than members of the Federal Reserve
System) and insured State branches of
foreign banks, by the Board of Directors
of the Federal Deposit Insurance
Corporation;
(2) section 8 of the Federal Deposit
Insurance Act [12 U.S.C. § 1818], by the
Director of the Office of Thrift
Supervision, in the case of a savings
association the deposits of which are
insured by the Federal Deposit Insurance
Corporation;
(3) the Federal Credit Union Act [12
U.S.C. §§ 1751 et seq.], by the
Administrator of the National Credit Union
Administration [National Credit Union
Administration Board] with respect to any
Federal credit union;
(4) subtitle IV of title 49 [49 U.S.C. §§
10101 et seq.], by the Secretary of
Transportation, with respect to all carriers
subject to the jurisdiction of the Surface
Transportation Board;
(5) the Federal Aviation Act of 1958 [49
U.S.C. Appx §§ 1301 et seq.], by the
Secretary of Transportation with respect to
any air carrier or foreign air carrier
subject to that Act [49 U.S.C. Appx §§ 1301
et seq.]; and
(6) the Packers and Stockyards Act, 1921
[7 U.S.C. §§ 181 et seq.] (except as
provided in section 406 of that Act [7
U.S.C. §§ 226 and 227]), by the Secretary of
Agriculture with respect to any activities
subject to that Act. The terms used in
paragraph (1) that are not defined in this
title or otherwise defined in section 3(s)
of the Federal Deposit Insurance Act (12
U.S.C. §1813(s)) shall have the meaning
given to them in section 1(b) of the
International Banking Act of 1978 (12 U.S.C.
§ 3101).
(c) State Action for Violations
(1) Authority of states. In addition to
such other remedies as are provided under
State law, if the chief law enforcement
officer of a State, or an official or agency
designated by a State, has reason to believe
that any person has violated or is violating
this title, the State
(A) may bring an action to enjoin
such violation in any appropriate United
States district court or in any other
court of competent jurisdiction;
(B) subject to paragraph (5), may
bring an action on behalf of the
residents of the State to recover
(i) damages for which the person is
liable to such residents under
sections 616 and
617 [§§ 1681n and
1681o] as a result of the violation;
(ii) in the case of a violation
described in any of paragraphs (1)
through (3) of section 623(c), damages for
which the person would, but for
section 623(c)
[§ 1681s-2], be liable to such
residents as a result of the
violation;
or
(iii) damages of not more than
$1,000 for each willful or negligent
violation; and
(C) in the case of any successful
action under subparagraph (A) or (B),
shall be awarded the costs of the action
and reasonable attorney fees as
determined by the court.
(2) Rights of federal regulators. The
State shall serve prior written notice of
any action under paragraph (1) upon the
Federal Trade Commission or the appropriate
Federal regulator determined under
subsection (b) and provide the Commission or
appropriate Federal regulator with a copy of
its complaint, except in any case in which
such prior notice is not feasible, in which
case the State shall serve such notice
immediately upon instituting such action.
The Federal Trade Commission or appropriate
Federal regulator shall have the right
(A) to intervene in the action;
(B) upon so intervening, to be heard
on all matters arising therein;
(C) to remove the action to the
appropriate United States district
court; and
(D) to file petitions for appeal.
(3) Investigatory powers. For purposes of
bringing any action under this subsection,
nothing in this subsection shall prevent the
chief law enforcement officer, or an
official or agency designated by a State,
from exercising the powers conferred on the
chief law enforcement officer or such
official by the laws of such State to
conduct investigations or to administer
oaths or affirmations or to compel the
attendance of witnesses or the production of
documentary and other evidence.
(4) Limitation on state action while
federal action pending. If the Federal Trade
Commission or the appropriate Federal
regulator has instituted a civil action or
an administrative action under section 8 of
the Federal Deposit Insurance Act for a
violation of this title, no State may,
during the pendency of such action, bring an
action under this section against any
defendant named in the complaint of the
Commission or the appropriate Federal
regulator for any violation of this title
that is alleged in that complaint.
(5) Limitations on State Actions for
Certain Violations
(A) Violation of injunction required.
A State may not bring an action against
a person under paragraph (1)(B) for a
violation described in any of paragraphs
(1) through (3) of section 623(c), unless
(i) the person has been enjoined
from committing the violation, in an
action brought by the State under
paragraph (1)(A); and
(ii) the person has violated the
injunction.
(B) Limitation on damages
recoverable. In an action against a
person under paragraph (1)(B) for a
violation described in any of paragraphs
(1) through
(3) of section 623(c),
a State may not recover any damages incurred
before the date of the violation of an
injunction on which the action is based.
(d) Enforcement under other authority. For
the purpose of the exercise by any agency
referred to in subsection (b) of this section of
its powers under any Act referred to in that
subsection, a violation of any requirement
imposed under this title shall be deemed to be a
violation of a requirement imposed under that
Act. In addition to its powers under any
provision of law specifically referred to in
subsection (b) of this section, each of the
agencies referred to in that subsection may
exercise, for the purpose of enforcing
compliance with any requirement imposed under
this title any other authority conferred on it
by law.
(e) Regulatory authority
(1) The Federal banking agencies referred
to in paragraphs (1) and (2) of subsection
(b) shall jointly prescribe such regulations
as necessary to carry out the purposes of
this Act with respect to any persons
identified under paragraphs (1) and (2) of
subsection (b), and the Board of Governors
of the Federal Reserve System shall have
authority to prescribe regulations
consistent with such joint regulations with
respect to bank holding companies and
affiliates (other than depository
institutions and consumer reporting
agencies) of such holding companies.
(2) The Board of the National Credit
Union Administration shall prescribe such
regulations as necessary to carry out the
purposes of this Act with respect to any
persons identified under paragraph (3) of
subsection (b).
(f) Coordination of Consumer Complaint
Investigations
(1) In general. Each consumer
reporting agency described in
section 603(p) shall
develop and maintain procedures for the
referral to each other such agency of
any consumer complaint received by the
agency alleging identity theft, or
requesting a fraud alert under
section 605A or a
block under
section 605B.
(2) Model form and procedure for
reporting identity theft. The
Commission, in consultation with the
Federal banking agencies and the
National Credit Union Administration,
shall develop a model form and model
procedures to be used by consumers who
are victims of identity theft for
contacting and informing creditors and
consumer reporting agencies of the
fraud. See also 70 Fed.Reg. 21792
(04/27/05)
(3) Annual summary reports. Each
consumer reporting agency described in
section 603(p) shall
submit an annual summary report to the
Commission on consumer complaints
received by the agency on identity theft
or fraud alerts.
(g) FTC regulation of coding of trade names.
If the Commission determines that a person
described in paragraph (9) of section 623(a) has not met the requirements
of such paragraph, the Commission shall take
action to ensure the person's compliance with
such paragraph, which may include issuing model
guidance or prescribing reasonable policies and
procedures, as necessary to ensure that such
person complies with such paragraph.
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Notwithstanding any other provision of this
title, a consumer reporting agency shall include
in any consumer report furnished by the agency
in accordance with
section 604
[§ 1681b] of this title, any information on the
failure of the consumer to pay overdue support
which (1) is provided (A) to the consumer
reporting agency by a State or local child
support enforcement agency; or (B) to the
consumer reporting agency and verified by any
local, State, or Federal government agency; and
(2) antedates the report by 7 years or less.
Table of Contents
(a) Duty of Furnishers of Information to
Provide Accurate Information
(1) Prohibition
(A) Reporting information with actual
knowledge of errors. A person shall not
furnish any information relating to a
consumer to any consumer reporting
agency if the person knows or has
reasonable cause to believe that the
information is inaccurate.
(B) Reporting information after
notice and confirmation of errors. A
person shall not furnish information
relating to a consumer to any consumer
reporting agency if
(i) the person has been notified
by the consumer, at the address
specified by the person for such
notices, that specific information
is inaccurate; and
(ii) the information is, in fact,
inaccurate.
(C) No address requirement. A person
who clearly and conspicuously specifies
to the consumer an address for notices
referred to in subparagraph (B) shall
not be subject to subparagraph (A);
however, nothing in subparagraph (B)
shall require a person to specify such
an address.
(D) Definition. For purposes of
subparagraph (A), the term “reasonable
cause to believe that the information is
inaccurate” means having specific
knowledge, other than solely allegations
by the consumer, that would cause a
reasonable person to have substantial
doubts about the accuracy of the
information.
(2) Duty to correct and update
information. A person who
(A) regularly and in the ordinary
course of business furnishes information
to one or more consumer reporting
agencies about the person's transactions
or experiences with any consumer; and
(B) has furnished to a consumer
reporting agency information that the
person determines is not complete or
accurate, shall promptly notify the
consumer reporting agency of that
determination and provide to the agency
any corrections to that information, or
any additional information, that is
necessary to make the information
provided by the person to the agency
complete and accurate, and shall not
thereafter furnish to the agency any of
the information that remains not
complete or accurate.
(3) Duty to provide notice of dispute. If
the completeness or accuracy of any
information furnished by any person to any
consumer reporting agency is disputed to
such person by a consumer, the person may
not furnish the information to any consumer
reporting agency without notice that such
information is disputed by the consumer.
(4) Duty to provide notice of closed
accounts. A person who regularly and in the
ordinary course of business furnishes
information to a consumer reporting agency
regarding a consumer who has a credit
account with that person shall notify the
agency of the voluntary closure of the
account by the consumer, in information
regularly furnished for the period in which
the account is closed.
(5) Duty to Provide Notice of Delinquency
of Accounts
(A) In general. A person who
furnishes information to a consumer
reporting agency regarding a delinquent
account being placed for collection,
charged to profit or loss, or subjected
to any similar action shall, not later
than 90 days after furnishing the
information, notify the agency of the
date of delinquency on the account,
which shall be the month and year of the
commencement of the delinquency on the
account that immediately preceded the
action.
(B) Rule of construction. For
purposes of this paragraph only, and
provided that the consumer does not
dispute the information, a person that
furnishes information on a delinquent
account that is placed for collection,
charged for profit or loss, or subjected
to any similar action, complies with
this paragraph, if--
(i) the person reports the same date
of delinquency as that provided by the
creditor to which the account was owed
at the time at which the commencement of
the delinquency occurred, if the
creditor previously reported that date
of delinquency to a consumer reporting
agency;
(ii) the creditor did not previously
report the date of delinquency to a
consumer reporting agency, and the
person establishes and follows
reasonable procedures to obtain the date
of delinquency from the creditor or
another reliable source and reports that
date to a consumer reporting agency as
the date of delinquency; or
(iii) the creditor did not previously
report the date of delinquency to a
consumer reporting agency and the date
of delinquency cannot be reasonably
obtained as provided in clause (ii), the
person establishes and follows
reasonable procedures to ensure the date
reported as the date of delinquency
precedes the date on which the account
is placed for collection, charged to
profit or loss, or subjected to any
similar action, and reports such date to
the credit reporting agency.
(6) Duties of Furnishers Upon Notice of
Identity Theft-Related Information
(A) Reasonable procedures. A person
that furnishes information to any
consumer reporting agency shall have in
place reasonable procedures to respond
to any notification that it receives
from a consumer reporting agency under
section 605B
relating to information resulting from
identity theft, to prevent that person
from refurnishing such blocked
information.
(B) Information alleged to result
from identity theft. If a consumer
submits an identity theft report to a
person who furnishes information to a
consumer reporting agency at the address
specified by that person for receiving
such reports stating that information
maintained by such person that purports
to relate to the consumer resulted from
identity theft, the person may not
furnish such information that purports
to relate to the consumer to any
consumer reporting agency, unless the
person subsequently knows or is informed
by the consumer that the information is
correct.
(7) Negative Information
(A) Notice to Consumer Required
(i) In general. If any financial
institution that extends credit and
regularly and in the ordinary course
of business furnishes information to
a consumer reporting agency
described in section
603(p) furnishes negative
information to such an agency
regarding credit extended to a
customer, the financial institution
shall provide a notice of such
furnishing of negative information,
in writing, to the customer.
(ii) Notice effective for
subsequent submissions. After
providing such notice, the financial
institution may submit additional
negative information to a consumer
reporting agency described in
section 603(p)
with respect to the same
transaction, extension of credit,
account, or customer without
providing additional notice to the
customer.
(B) Time of Notice
(i) In general. The notice
required under subparagraph (A)
shall be provided to the customer
prior to, or no later than 30 days
after, furnishing the negative
information to a consumer reporting
agency described in section 603(p).
(ii) Coordination with new
account disclosures. If the notice
is provided to the customer prior to
furnishing the negative information
to a consumer reporting agency, the
notice may not be included in the
initial disclosures provided under
section 127(a) of the Truth in
Lending Act.
(C) Coordination with other
disclosures- The notice required under
subparagraph (A)--
(i) may be included on or with
any notice of default, any billing
statement, or any other materials
provided to the customer; and
(ii) must be clear and
conspicuous.
(D) Model Disclosure
(i) Duty of board to prepare. The
Board shall prescribe a brief model
disclosure a financial institution
may use to comply with subparagraph
(A), which shall not exceed 30
words. See also 12 CFR Part 222,
App B
(ii) Use of model not required.
No provision of this paragraph shall
be construed as requiring a
financial institution to use any
such model form prescribed by the
Board.
(iii) Compliance using model. A
financial institution shall be
deemed to be in compliance with
subparagraph (A) if the financial
institution uses any such model form
prescribed by the Board, or the
financial institution uses any such
model form and rearranges its
format.
(E) Use of notice without submitting
negative information. No provision of
this paragraph shall be construed as
requiring a financial institution that
has provided a customer with a notice
described in subparagraph (A) to furnish
negative information about the customer
to a consumer reporting agency.
(F) Safe harbor. A financial
institution shall not be liable for
failure to perform the duties required
by this paragraph if, at the time of the
failure, the financial institution
maintained reasonable policies and
procedures to comply with this paragraph
or the financial institution reasonably
believed that the institution is
prohibited, by law, from contacting the
consumer.
(G) Definitions. For purposes of this
paragraph, the following definitions
shall apply:
(i) The term “negative
information” means information
concerning a customer's
delinquencies, late payments,
insolvency, or any form of default.
(ii) The terms “customer” and
“financial institution” have the
same meanings as in section 509
Public Law 106-102.
(8) Ability of Consumer to Dispute
Information Directly with Furnisher
(A) In general. The Federal banking
agencies, the National Credit Union
Administration, and the Commission shall
jointly prescribe regulations that shall
identify the circumstances under which a
furnisher shall be required to
reinvestigate a dispute concerning the
accuracy of information contained in a
consumer report on the consumer, based
on a direct request of a consumer.
(B) Considerations. In prescribing
regulations under subparagraph (A), the
agencies shall weigh--
(i) the benefits to consumers
with the costs on furnishers and the
credit reporting system;
(ii) the impact on the overall
accuracy and integrity of consumer
reports of any such requirements;
(iii) whether direct contact by
the consumer with the furnisher
would likely result in the most
expeditious resolution of any such
dispute; and
(iv) the potential impact on the
credit reporting process if credit
repair organizations, as defined in
section 403(3) [15 U.S.C.
§1679a(3)], including entities that
would be a credit repair
organization, but for section
403(3)(B)(i), are able to circumvent
the prohibition in subparagraph (G).
(C) Applicability. Subparagraphs (D)
through (G) shall apply in any
circumstance identified under the
regulations promulgated under
subparagraph (A).
(D) Submitting a notice of dispute- A
consumer who seeks to dispute the
accuracy of information shall provide a
dispute notice directly to such person
at the address specified by the person
for such notices that--
(i) identifies the specific
information that is being disputed;
(ii) explains the basis for the
dispute; and
(iii) includes all supporting
documentation required by the
furnisher to substantiate the basis
of the dispute.
(E) Duty of person after receiving
notice of dispute. After receiving a
notice of dispute from a consumer
pursuant to subparagraph (D), the person
that provided the information in dispute
to a consumer reporting agency shall--
(i) conduct an investigation with
respect to the disputed information;
(ii) review all relevant
information provided by the consumer
with the notice;
(iii) complete such person's
investigation of the dispute and
report the results of the
investigation to the consumer before
the expiration of the period under
section 611(a)(1)
within which a consumer reporting
agency would be required to complete
its action if the consumer had
elected to dispute the information
under that section; and
(iv) if the investigation finds
that the information reported was
inaccurate, promptly notify each
consumer reporting agency to which
the person furnished the inaccurate
information of that determination
and provide to the agency any
correction to that information that
is necessary to make the information
provided by the person accurate.
(F) Frivolous or Irrelevant Dispute
(i) In general. This paragraph
shall not apply if the person
receiving a notice of a dispute from
a consumer reasonably determines
that the dispute is frivolous or
irrelevant, including--
(I) by reason of the failure
of a consumer to provide
sufficient information to
investigate the disputed
information; or
(II) the submission by a
consumer of a dispute that is
substantially the same as a
dispute previously submitted by
or for the consumer, either
directly to the person or
through a consumer reporting
agency under subsection (b),
with respect to which the person
has already performed the
person's duties under this
paragraph or subsection (b), as
applicable.
(ii) Notice of determination.
Upon making any determination under
clause (i) that a dispute is
frivolous or irrelevant, the person
shall notify the consumer of such
determination not later than 5
business days after making such
determination, by mail or, if
authorized by the consumer for that
purpose, by any other means
available to the person.
(iii) Contents of notice. A
notice under clause (ii) shall
include--
(I) the reasons for the
determination under clause (i);
and
(II) identification of any
information required to
investigate the disputed
information, which may consist
of a standardized form
describing the general nature of
such information.
(G) Exclusion of credit repair
organizations. This paragraph shall not
apply if the notice of the dispute is
submitted by, is prepared on behalf of
the consumer by, or is submitted on a
form supplied to the consumer by, a
credit repair organization, as defined
in section 403(3), or an entity that
would be a credit repair organization,
but for section 403(3)(B)(i).
(9) Duty to provide notice of status as
medical information furnisher. A person
whose primary business is providing medical
services, products, or devices, or the
person's agent or assignee, who furnishes
information to a consumer reporting agency
on a consumer shall be considered a medical
information furnisher for purposes of this
title, and shall notify the agency of such
status.
(b) Duties of Furnishers of Information upon
Notice of Dispute
(1) In general. After receiving notice
pursuant to section
611(a)(2) [§ 1681i] of a dispute with
regard to the completeness or accuracy of
any information provided by a person to a
consumer reporting agency, the person shall
(A) conduct an investigation with
respect to the disputed information;
(B) review all relevant information
provided by the consumer reporting
agency pursuant to section 611(a)(2) [§ 1681i];
(C) report the results of the
investigation to the consumer reporting
agency;
(D) if the investigation finds that
the information is incomplete or
inaccurate, report those results to all
other consumer reporting agencies to
which the person furnished the
information and that compile and
maintain files on consumers on a
nationwide basis; and (E) if an item of
information disputed by a consumer is
found to be inaccurate or incomplete or
cannot be verified after any
reinvestigation under paragraph (1), for
purposes of reporting to a consumer
reporting agency only, as appropriate,
based on the results of the
reinvestigation promptly–
(i) modify that item of
information;
(ii) delete that item of
information; or
(iii) permanently block the
reporting of that item of
information.
(2) Deadline. A person shall complete all
investigations, reviews, and reports
required under paragraph (1) regarding
information provided by the person to a
consumer reporting agency, before the
expiration of the period under
section 611(a)(1) [§
1681i] within which the consumer reporting
agency is required to complete actions
required by that section regarding that
information.
(c) Limitation on liability. Except as
provided in section
621(c)(1)(B),
sections 616
and 617 do not apply to any
violation of--
(1) subsection (a) of this section,
including any regulations issued thereunder;
(2) subsection (e) of this section,
except that nothing in this paragraph shall
limit, expand, or otherwise affect liability
under
section 616 or
617, as applicable, for
violations of subsection (b) of this
section; or
(3) subsection (e) of
section 615.
(d) Limitation on enforcement. The provisions
of law described in paragraphs (1) through (3)
of subsection (c) (other than with respect to
the exception described in paragraph (2) of
subsection (c)) shall be enforced exclusively as
provided under section 621 by the Federal
agencies and officials and the State officials
identified in
section 621.
(e) Accuracy Guidelines and Regulations
Required
(1) Guidelines. The Federal banking
agencies, the National Credit Union
Administration, and the Commission shall,
with respect to the entities that are
subject to their respective enforcement
authority under
section 621,
and in coordination as described in
paragraph (2)--
(A) establish and maintain guidelines
for use by each person that furnishes
information to a consumer reporting
agency regarding the accuracy and
integrity of the information relating to
consumers that such entities furnish to
consumer reporting agencies, and update
such guidelines as often as necessary;
and
(B) prescribe regulations requiring
each person that furnishes information
to a consumer reporting agency to
establish reasonable policies and
procedures for implementing the
guidelines established pursuant to
subparagraph (A).
(2) Coordination. Each agency required to
prescribe regulations under paragraph (1)
shall consult and coordinate with each other
such agency so that, to the extent possible,
the regulations prescribed by each such
entity are consistent and comparable with
the regulations prescribed by each other
such agency.
(3) Criteria. In developing the
guidelines required by paragraph (1)(A), the
agencies described in paragraph (1) shall--
(A) identify patterns, practices, and
specific forms of activity that can
compromise the accuracy and integrity of
information furnished to consumer
reporting agencies;
(B) review the methods (including
technological means) used to furnish
information relating to consumers to
consumer reporting agencies;
(C) determine whether persons that
furnish information to consumer
reporting agencies maintain and enforce
policies to assure the accuracy and
integrity of information furnished to
consumer reporting agencies; and
(D) examine the policies and
processes that persons that furnish
information to consumer reporting
agencies employ to conduct
reinvestigations and correct inaccurate
information relating to consumers that
has been furnished to consumer reporting
agencies.
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(a) Special Rule for Solicitation for
Purposes of Marketing
(1) Notice. Any person that receives from
another person related to it by common
ownership or affiliated by corporate control
a communication of information that would be
a consumer report, but for clauses (i),
(ii), and (iii) of section
603 (d)(2)(A), may not use the
information to make a solicitation for
marketing purposes to a consumer about its
products or services, unless--
(A) it is clearly and conspicuously
disclosed to the consumer that the
information may be communicated among
such persons for purposes of making such
solicitations to the consumer; and
(B) the consumer is provided an
opportunity and a simple method to
prohibit the making of such
solicitations to the consumer by such
person.
(2) Consumer Choice
(A) In general. The notice required
under paragraph (1) shall allow the
consumer the opportunity to prohibit all
solicitations referred to in such
paragraph, and may allow the consumer to
choose from different options when
electing to prohibit the sending of such
solicitations, including options
regarding the types of entities and
information covered, and which methods
of delivering solicitations the consumer
elects to prohibit.
(B) Format. Notwithstanding
subparagraph (A), the notice required
under paragraph (1) shall be clear,
conspicuous, and concise, and any method
provided under paragraph (1)(B) shall be
simple. The regulations prescribed to
implement this section shall provide
specific guidance regarding how to
comply with such standards.
(3) Duration
(A) In general. The election of a
consumer pursuant to paragraph (1)(B) to
prohibit the making of solicitations
shall be effective for at least 5 years,
beginning on the date on which the
person receives the election of the
consumer, unless the consumer requests
that such election be revoked.
(B) Notice upon expiration of
effective period. At such time as the
election of a consumer pursuant to
paragraph (1)(B) is no longer effective,
a person may not use information that
the person receives in the manner
described in paragraph (1) to make any
solicitation for marketing purposes to
the consumer, unless the consumer
receives a notice and an opportunity,
using a simple method, to extend the
opt-out for another period of at least 5
years, pursuant to the procedures
described in paragraph (1).
(4) Scope. This section shall not apply
to a person–
(A) using information to make a
solicitation for marketing purposes to a
consumer with whom the person has a
pre-existing business relationship;
(B) using information to facilitate
communications to an individual for
whose benefit the person provides
employee benefit or other services
pursuant to a contract with an employer
related to and arising out of the
current employment relationship or
status of the individual as a
participant or beneficiary of an
employee benefit plan;
(C) using information to perform
services on behalf of another person
related by common ownership or
affiliated by corporate control, except
that this subparagraph shall not be
construed as permitting a person to send
solicitations on behalf of another
person, if such other person would not
be permitted to send the solicitation on
its own behalf as a result of the
election of the consumer to prohibit
solicitations under paragraph (1)(B);
(D) using information in response to
a communication initiated by the
consumer;
(E) using information in response to
solicitations authorized or requested by
the consumer; or
(F) if compliance with this section
by that person would prevent compliance
by that person with any provision of
State insurance laws pertaining to
unfair discrimination in any State in
which the person is lawfully doing
business.
(5) No retroactivity. This subsection
shall not prohibit the use of information to
send a solicitation to a consumer if such
information was received prior to the date
on which persons are required to comply with
regulations implementing this subsection.
(b) Notice for other purposes permissible. A
notice or other disclosure under this section
may be coordinated and consolidated with any
other notice required to be issued under any
other provision of law by a person that is
subject to this section, and a notice or other
disclosure that is equivalent to the notice
required by subsection (a), and that is provided
by a person described in subsection (a) to a
consumer together with disclosures required by
any other provision of law, shall satisfy the
requirements of subsection (a).
(c) User requirements. Requirements with
respect to the use by a person of information
received from another person related to it by
common ownership or affiliated by corporate
control, such as the requirements of this
section, constitute requirements with respect to
the exchange of information among persons
affiliated by common ownership or common
corporate control, within the meaning of
section 625(b)(2).
(d) Definitions. For purposes of this
section, the following definitions shall apply:
(1) The term “pre-existing business
relationship” means a relationship between a
person, or a person's licensed agent, and a
consumer, based on--
(A) a financial contract between a
person and a consumer which is in force;
(B) the purchase, rental, or lease by
the consumer of that person's goods or
services, or a financial transaction
(including holding an active account or
a policy in force or having another
continuing relationship) between the
consumer and that person during the
18-month period immediately preceding
the date on which the consumer is sent a
solicitation covered by this section;
(C) an inquiry or application by the
consumer regarding a product or service
offered by that person, during the
3-month period immediately preceding the
date on which the consumer is sent a
solicitation covered by this section; or
(D) any other pre-existing customer
relationship defined in the regulations
implementing this section.
(2) The term “solicitation” means the
marketing of a product or service initiated
by a person to a particular consumer that is
based on an exchange of information
described in subsection (a), and is intended
to encourage the consumer to purchase such
product or service, but does not include
communications that are directed at the
general public or determined not to be a
solicitation by the regulations prescribed
under this section.
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(a) In general. Except as provided in
subsections (b) and (c), this title does not
annul, alter, affect, or exempt any person
subject to the provisions of this title from
complying with the laws of any State with
respect to the collection, distribution, or use
of any information on consumers, or for the
prevention or mitigation of identity theft,
except to the extent that those laws are
inconsistent with any provision of this title,
and then only to the extent of the
inconsistency.
(b) General exceptions. No requirement or
prohibition may be imposed under the laws of any
State
(1) with respect to any subject matter
regulated under (A) subsection (c) or (e) of
section 604 [§ 1681b],
relating to the prescreening of consumer
reports;
(B)
section 611 [§
1681i], relating to the time by which a
consumer reporting agency must take any
action, including the provision of
notification to a consumer or other
person, in any procedure related to the
disputed accuracy of information in a
consumer's file, except that this
subparagraph shall not apply to any
State law in effect on the date of
enactment of the Consumer Credit
Reporting Reform Act of 1996;
(C) subsections (a) and (b) of
section 615 [§
1681m], relating to the duties of a
person who takes any adverse action with
respect to a consumer;
(D) section 615(d)
[§ 1681m], relating to the duties of
persons who use a consumer report of a
consumer in connection with any credit
or insurance transaction that is not
initiated by the consumer and that
consists of a firm offer of credit or
insurance;
(E)
section 605 [§
1681c], relating to information
contained in consumer reports, except
that this subparagraph shall not apply
to any State law in effect on the date
of enactment of the Consumer Credit
Reporting Reform Act of 1996;
(F)
section 623 [§
1681s-2], relating to the
responsibilities of persons who furnish
information to consumer reporting
agencies, except that this paragraph
shall not apply
(i) with respect to section
54A(a) of chapter 93 of the
Massachusetts Annotated Laws (as in
effect on the date of enactment of
the Consumer Credit Reporting Reform
Act of 1996); or
(ii) with respect to section
1785.25(a) of the California Civil
Code (as in effect on the date of
enactment of the Consumer Credit
Reporting Reform Act of 1996);
(G) section 609(e),
relating to information available to
victims under section 609(e);
(H)
section 624,
relating to the exchange and use of
information to make a solicitation for
marketing purposes; or
(I) section 615(h),
relating to the duties of users of
consumer reports to provide notice with
respect to terms in certain credit
transactions;
(2) with respect to
the exchange of information among persons
affiliated by common ownership or common
corporate control, except that this
paragraph shall not apply with respect to
subsection (a) or (c)(1) of section 2480e of
title 9, Vermont Statutes Annotated (as in
effect on the date of enactment of the
Consumer Credit Reporting Reform Act of
1996)
(3) with respect to the disclosures
required to be made under subsection (c),
(d), (e), or (g) of
section
609, or subsection (f) of section 609
relating to the disclosure of credit scores
for credit granting purposes, except that
this paragraph--
(A) shall not apply with respect to
sections 1785.10, 1785.16, and 1785.20.2
of the California Civil Code (as in
effect on the date of enactment of the
Fair and Accurate Credit Transactions
Act of 2003) and section 1785.15 through
section 1785.15.2 of such Code (as in
effect on such date);
(B) shall not apply with respect to
sections 5-3-106(2) and 212-14.3-104.3
of the Colorado Revised Statutes (as in
effect on the date of enactment of the
Fair and Accurate Credit Transactions
Act of 2003); and
(C) shall not be construed as
limiting, annulling, affecting, or
superseding any provision of the laws of
any State regulating the use in an
insurance activity, or regulating
disclosures concerning such use, of a
credit-based insurance score of a
consumer by any person engaged in the
business of insurance;
(4) with respect to the frequency of any
disclosure under section
612(a), except that this paragraph shall
not apply–
(A) with respect to section
12-14.3-105(1)(d) of the Colorado
Revised Statutes (as in effect on the
date of enactment of the Fair and
Accurate Credit Transactions Act of
2003);
(B) with respect to section
10-1-393(29)(C) of the Georgia Code (as
in effect on the date of enactment of
the Fair and Accurate Credit
Transactions Act of 2003);
(C) with respect to section 1316.2 of
title 10 of the Maine Revised Statutes
(as in effect on the date of enactment
of the Fair and Accurate Credit
Transactions Act of 2003);
(D) with respect to sections
14-1209(a)(1) and 14-1209(b)(1)(i) of
the Commercial Law Article of the Code
of Maryland (as in effect on the date of
enactment of the Fair and Accurate
Credit Transactions Act of 2003);
(E) with respect to section 59(d) and
section 59(e) of chapter 93 of the
General Laws of Massachusetts (as in
effect on the date of enactment of the
Fair and Accurate Credit Transactions
Act of 2003);
(F) with respect to section
56:11-37.10(a)(1) of the New Jersey
Revised Statutes (as in effect on the
date of enactment of the Fair and
Accurate Credit Transactions Act of
2003); or
(G) with respect to section
2480c(a)(1) of title 9 of the Vermont
Statutes Annotated (as in effect on the
date of enactment of the Fair and
Accurate Credit Transactions Act of
2003); or
(5) with respect to the conduct required
by the specific provisions of--
(A) section 605(g);
(B) section 605A;
(C) section 605B;
(D) section 609(a)(1)(A);
(E) section 612(a);
(F) subsections (e), (f), and (g) of
section 615;
(G) section 621(f);
(H) section 623(a)(6); or
(I) section 628.
(c) Definition of firm offer of credit or
insurance. Notwithstanding any definition of the
term “firm offer of credit or insurance” (or any
equivalent term) under the laws of any State,
the definition of that term contained in section
603(l) [§ 1681a] shall be construed to apply in
the enforcement and interpretation of the laws
of any State governing consumer reports.
(d) Limitations. Subsections (b) and (c) do
not affect any settlement, agreement, or consent
judgment between any State Attorney General and
any consumer reporting agency in effect on the
date of enactment of the Consumer Credit
Reporting Reform Act of 1996.
Table of Contents
(a) Identity of financial institutions.
Notwithstanding section 604 [15 USCS § 1681b] or
any other provision of this title, a consumer
reporting agency shall furnish to the Federal
Bureau of Investigation the names and addresses
of all financial institutions (as that term is
defined in section 1101 of the Right to
Financial Privacy Act of 1978 [12 USCS § 3401])
at which a consumer maintains or has maintained
an account, to the extent that information is in
the files of the agency, when presented with a
written request for that information, signed by
the Director of the Federal Bureau of
Investigation, or the Director's designee in a
position not lower than Deputy Assistant
Director at Bureau headquarters or a Special
Agent in Charge of a Bureau field office
designated by the Director, which certifies
compliance with this section. The Director or
the Director's designee may make such a
certification only if the Director or the
Director's designee has determined in writing,
that such information is sought for the conduct
of an authorized investigation to protect
against international terrorism or clandestine
intelligence activities, provided that such an
investigation of a United States person is not
conducted solely upon the basis of activities
protected by the first amendment to the
Constitution of the United States.
(b) Identifying information. Notwithstanding
the provisions of
section 604
[15 USCS § 1681b] or any other provision of this
title, a consumer reporting agency shall furnish
identifying information respecting a consumer,
limited to name, address, former addresses,
places of employment, or former places of
employment, to the Federal Bureau of
Investigation when presented with a written
request, signed by the Director or the
Director's designee, which certifies compliance
with this subsection. The Director or the
Director's designee in a position not lower than
Deputy Assistant Director at Bureau headquarters
or a Special Agent in Charge of a Bureau field
office designated by the Director may make such
a certification only if the Director or the
Director's designee has determined in writing
that such information is sought for the conduct
of an authorized investigation to protect
against international terrorism or clandestine
intelligence activities, provided that such an
investigation of a United States person is not
conducted solely upon the basis of activities
protected by the first amendment to the
Constitution of the United States.
(c) Court order for disclosure of consumer
reports. Notwithstanding
section
604 [15 USCS § 1681b] or any other provision
of this title, if requested in writing by the
Director of the Federal Bureau of Investigation,
or a designee of the Director in a position not
lower than Deputy Assistant Director at Bureau
headquarters or a Special Agent in Charge of a
Bureau field office designated by the Director,
a court may issue an order ex parte directing a
consumer reporting agency to furnish a consumer
report to the Federal Bureau of Investigation,
upon a showing in camera that the consumer
report is sought for the conduct of an
authorized investigation to protect against
international terrorism or clandestine
intelligence activities, provided that such an
investigation of a United States person is not
conducted solely upon the basis of activities
protected by the first amendment to the
Constitution of the United States. The terms of
an order issued under this subsection shall not
disclose that the order is issued for purposes
of a counterintelligence investigation.
(d) Confidentiality. No consumer reporting
agency or officer, employee, or agent of
consumer reporting agency shall disclose to any
person, other than those officers, employees, or
agents of consumer reporting agency necessary to
fulfill the requirement to disclose information
to the Federal Bureau of Investigation under
this section, the Federal Bureau of
Investigation has sought or obtained the
identity of financial institutions or a consumer
report respecting any consumer under subsection
(a), (b), or (c), and no consumer reporting
agency or officer, employee, or agent of a
consumer reporting agency shall include in any
consumer report any information that would
indicate that the Federal Bureau of
Investigation has sought or obtained such
information or consumer report.
(e) Payment of fees. The Federal Bureau of
Investigation shall, 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.
(f) Limit on dissemination. The Federal
Bureau of Investigation may not disseminate
information obtained pursuant to this section
outside of the Federal Bureau of Investigation,
except to other Federal agencies as may be
necessary for the approval or conduct of a
foreign counterintelligence investigation, or,
where the information concerns a person subject
to the Uniform Code of Military Justice, to
appropriate investigative authorities within the
military department concerned as may be
necessary for the conduct of a joint foreign
counterintelligence investigation.
(g) Rules of construction. Nothing in this
section shall be construed to prohibit
information from being furnished by the Federal
Bureau of Investigation pursuant to a subpoena
or court order, in connection with a judicial or
administrative proceeding to enforce the
provisions of this Act. Nothing in this section
shall be construed to authorize or permit the
withholding of information from the Congress.
Table of Contents
(a) Disclosure. Notwithstanding
section 604 [15 USCS § 1681b]
or any other provision of this title [15 USCS §
§ 1681 et seq.], a consumer reporting agency
shall furnish a consumer report of a consumer
and all other information in a consumer's file
to a government agency authorized to conduct
investigations of, or intelligence or
counterintelligence activities or analysis
related to, international terrorism when
presented with a written certification by such
government agency that such information is
necessary for the agency's conduct or such
investigation, activity or analysis.
(b) Form of certification. The certification
described in subsection (a) shall be signed by a
supervisory official designated by the head of a
Federal agency or an officer of a Federal agency
whose appointment to office is required to be
made by the President, by and with the advice
and consent of the Senate.
(c) Confidentiality. No consumer reporting
agency or officer, employee, or agent of such
consumer reporting agency, shall disclose to any
person , or specify in any consumer report, that
a government agency has sought or obtained
access to information under subsection (a).
(d) Rule of construction. Nothing in
section 626 [15 USCS § 1681u]
shall be construed to limit the authority of the
Director of the Federal Bureau of Investigation
under this section.
(e) Safe harbor. Notwithstanding any other
provision of this title [15 USCS § § 1681 et
seq.], any consumer reporting agency or agent or
employee thereof making disclosure of consumer
reports or other information pursuant to this
section in good-faith reliance upon a
certification of a government agency pursuant to
the provisions of this section shall not be
liable to any person for such disclosure under
this subchapter, the constitution of any State,
or any law or regulation of any State or any
political subdivision of any State.
Table of Contents
(a) Regulations 69 Fed. Reg. 68690
(11/24/04)
(1) In general. Not later than 1 year
after the date of enactment of this section,
the Federal banking agencies, the National
Credit Union Administration, and the
Commission with respect to the entities that
are subject to their respective enforcement
authority under
section 621,
and the Securities and Exchange Commission,
and in coordination as described in
paragraph (2), shall issue final regulations
requiring any person that maintains or
otherwise possesses consumer information, or
any compilation of consumer information,
derived from consumer reports for a business
purpose to properly dispose of any such
information or compilation.
(2) Coordination. Each agency required to
prescribe regulations under paragraph (1)
shall–
(A) consult and coordinate with each
other such agency so that, to the extent
possible, the regulations prescribed by
each such agency are consistent and
comparable with the regulations by each
such other agency; and
(B) ensure that such regulations are
consistent with the requirements and
regulations issued pursuant to Public
Law 106-102 and other provisions of
Federal law.
(3) Exemption authority. In issuing
regulations under this section, the Federal
banking agencies, the National Credit Union
Administration, the Commission, and the
Securities and Exchange Commission may
exempt any person or class of persons from
application of those regulations, as such
agency deems appropriate to carry out the
purpose of this section.
(b) Rule of construction. Nothing in this
section shall be construed--
(1) to require a person to maintain or
destroy any record pertaining to a consumer
that is not imposed under other law; or
(2) to alter or affect any requirement
imposed under any other provision of law to
maintain or destroy such a record.
Table of Contents
The Commission shall prescribe regulations,
to become effective not later than 90 days after
the date of enactment of this section, to
prevent a consumer reporting agency from
circumventing or evading treatment as a consumer
reporting agency described in section 603(p) for purposes of this title,
including--
(1) by means of a corporate reorganization or
restructuring, including a merger, acquisition,
dissolution, divestiture, or asset sale of a
consumer reporting agency; or
(2) by maintaining or merging public record
and credit account information in a manner that
is substantially equivalent to that described in
paragraphs (1) and (2) of section 603(p), in the
manner described in section
603(p). |
