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Fair Credit Reporting Act (FCRA)
15 U.S.C. 1681. Congressional Findings and Statement of
Purpose.
(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 subchapter 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 subchapter.
15 U.S.C. 1681a. Definitions; Rules of Construction.
(a) Definitions and rules of
construction set forth in this
section are applicable for the purposes of this subchapter.
(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) credit or insurance to be used primarily for personal,
family, or household purposes;
(B) employment purposes; or
(C) any other purpose authorized under section
1681b of this
title.
(2) Exclusions. — Except as provided in paragraph (3), the term
"consumer report" does not include —
(A) subject to section
1681s-3 of this title, 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
1681m of this title; or
(D) a communication described in subsection (o) or (x) of this
section.
(3) Restriction on sharing of medical information. — Except for
information or any communication of information disclosed as
provided in section
1681b(g)(3) of this title, 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) Medical Information. — 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) Overdue support. — The term "overdue support" has the
meaning given to such term in section 666(e) of title 42.
(2) State or local child support enforcement agency. — 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 1691(d)(6) of this
title; 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
1681b(a)(3)(D) of this title; 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
1681b(a)(3)(F)(ii) of this title; 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
1691(d)(6) of this title by the Board of Governors of the Federal
Reserve System or any court shall apply.
(l) Firm Offer of Credit or Insurance. — 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) Credit or Insurance Transaction That Is Not Initiated by the
Consumer. — 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) State. — 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) of this section, 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) Consumer Reporting Agency That Compiles and Maintains Files
on Consumers on a Nationwide Basis. — 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) Active duty military consumer. — 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) 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; and
(B) is assigned to service away from the usual duty station
of the consumer.
(2) Fraud alert; active duty alert. — 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) Identity theft. — 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.
(4) Identity theft report. — 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.
(5) New credit plan. — The term "new credit plan" means a new
account under an open end credit plan (as defined in section
1602(i) of this title) or a new credit transaction not under an
open end credit plan.
(r) Credit and Debit Related Terms —
(1) Card issuer. — 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) Credit card. — The term "credit card" has the same meaning
as in section 1602 of this title.
(3) Debit card. — 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) Account and electronic fund transfer. — The terms "account"
and "electronic fund transfer" have the same meanings as in
section 1693a of this title.
(5) Credit and creditor. — The terms "credit" and "creditor"
have the same meanings as in section 1691a of this title.
(s) Federal Banking Agency. — The term "Federal banking agency"
has the same meaning as in section 1813 of title 12.
(t) Financial Institution. — 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 461(b) of title 12)
belonging to a consumer.
(u) Reseller. — 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) Commission. — The term "Commission" means the Federal Trade
Commission.
(w) Nationwide Specialty Consumer Reporting Agency. — 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) Communications described in this subsection. — A
communication is described in this subsection if —
(A) but for subsection (d)(2)(D) of this section, 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 1681f of this
title.
(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) of this section an investigative
consumer report need not be disclosed.
(3) Self-regulatory organization defined. — For purposes of
this subsection, the term "self-regulatory organization" includes
any self-regulatory organization (as defined in section
78c(a)(26) of this title), any entity established under title I
of the Sarbanes-Oxley Act of 2002 [15 U.S.C. 7211 et seq.], any
board of trade designated by the Commodity Futures Trading
Commission, and any futures association registered with such
Commission.
15 U.S.C. 1681b. Permissible Purposes of Consumer Reports.
(a) In general
Subject to subsection (c) of this section, 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 654
of title 42 for use to set an initial or modified child support
award.
(6) To the Federal Deposit Insurance Corporation or the National
Credit Union Administration as part of its preparation for its
appointment or as part of its exercise of powers, as conservator,
receiver, or liquidating agent for an insured depository
institution or insured credit union under the Federal Deposit
Insurance Act [12 U.S.C. 1811 et seq.] or the Federal Credit Union
Act [12 U.S.C. 1751 et seq.], or other applicable Federal or State
law, or in connection with the resolution or liquidation of a
failed or failing insured depository institution or insured credit
union, as applicable.
(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 subchapter, as prescribed
by the Federal Trade Commission under section
1681g(c)(3)of this title.
(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
1681m (a)(3) of this title; 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 subchapter, as prescribed by the Federal
Trade Commission under section
1681g(c)(3)of this
title.
(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
1681m(a) of this title, 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);
(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
1681g(c)(3) of this title.
(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) Classified information
The term "classified information" means information that
is protected from unauthorized disclosure under
Executive Order No. 12958 or successor orders.
(ii) National security investigation
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) of this section 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) of this section; and
(iii) there is not in effect an election by the consumer, made
in accordance with subsection (e) of this section, 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
1681g(a)(5) of this title, 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) of this section 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) of this section, 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 September 30,
1997, 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
1681e of
this title 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
1681c(a)(6) of this title) 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
1681c(a)(6) of this title.
(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 information treated in
the manner required under section
1681c(a)(6) of this title)
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
1681a(d)(3) of this title 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 6802(e) of this title; 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
1681s(b) of this
title, 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 December 4, 2003.
(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.
15 U.S.C. 1681c. Requirements Relating to Information
Contained in Consumer Reports.
(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 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.
(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) of this section 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 September 30, 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 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 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
1681g(f)(2)(B) of this title) 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
1681s-2(a)(4) of this title 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
1681s-2(a)(3) of this title 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 December 4, 2003, 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 December 4, 2003, 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
1681a(p) of this title, 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
1681s of this title, 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.
15 U.S.C. 1681c-1. Identity Theft Prevention; Fraud Alerts
and Active Duty Alerts.
(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
1681a(p) of this title 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
1681a(p) of this title, in accordance with
procedures developed under section
1681s(f) of this title.
(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
1681j(d) of this title; and
(B) provide to the consumer all disclosures required to be
made under section
1681g of this title, 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
1681a(p) of this title 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
1681a(p) of this title, in
accordance with procedures developed under section
1681s(f) of
this title.
(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
1681j(d) of this title 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
1681g of this title, 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
1681a(p) of this title 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
1681a(p) of this title, in accordance with procedures developed
under section
1681s(f) of this title.
(d) Procedures
Each consumer reporting agency described in section
1681a(p) of
this title 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
1681a(p) of
this title 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) of this section,
in the case of a referral under subsection (a)(1)(B) of this
section;
(2) paragraphs (1)(A), (1)(B), and (2) of subsection (b) of this
section, in the case of a referral under subsection (b)(1)(C) of
this section; and
(3) paragraphs (1) and (2) of subsection (c) of this section, in
the case of a referral under subsection (c)(3) of this section.
(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
1681a(p) of this title 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
1681a(p) of this title 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 1602(i) of this
title), 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 1602(i) of this title), 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 1602(i) of this title), 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
1602(i) of this title), 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.
15 U.S.C. 1681c-2. Block of Information Resulting from
Identity Theft.
(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) of this
section —
(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
1681i(a)(5)(B) of this title.
(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) of this section, 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) of this section, 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) of this section, a check services
company shall not report to a national consumer reporting agency
described in section
1681a(p) of this title, 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
subchapter.
15 U.S.C. 1681d. Disclosure of investigative consumer
reports
(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
1681g(c) of this title; 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) of this
section.
(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 an
investigative consumer report unless the agency has received a
certification under subsection (a)(2) of this section 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
1681k of this title, 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.
15 U.S.C. 1681e. Compliance procedures
(a) Identity and purposes of credit
users
Every consumer reporting agency shall maintain reasonable
procedures designed to avoid violations of section
1681c of this
title and to limit the furnishing of consumer reports to the
purposes listed under section
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
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 subchapter.
(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
1681b of this
title 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
1681b of this title, 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
1681b(b)(4)(E)(i) of this
title); and
(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.
15 U.S.C. 1681f. Disclosures to governmental agencies
Notwithstanding the provisions of section
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.
15 U.S.C. 1681g. Disclosures to Consumers.
(a) Information on file; sources;
report recipients
Every consumer reporting agency shall, upon request, and subject
to section
1681h(a)(1) of this title, 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 used for no other purpose need not be
disclosed: Provided, That in the event an action is brought under
this subchapter, 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
1681e(e)(1) of this title) 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
1681b(b)(4)(E)(i)
of this title); and
(ii) the head of the agency or department makes a written
finding as prescribed under section
1681b(b)(4)(A) of this title.
(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 subchapter 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 subchapter.
(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) of this section 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
1681j of this title;
(iii) the right of a consumer to dispute information in the
file of the consumer under section
1681i of this title;
(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
1681a(w) of this title, as provided in the
regulations of the Commission prescribed under section
1681j(a)(1)(C) of this title.
(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
1681a(p) of this title, 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 subchapter, 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
1681c of this title or cannot be verified.
(d) Summary of rights of identity theft victims
(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
subchapter 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
1681s of this title, sections
1681n and
1681o of this title 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
[15 U.S.C. 6801 et seq.], 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 December
4, 2003.
(13) Effectiveness study
Not later than 18 months after December 4, 2003, 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) Credit score
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) Key factors
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) of this section.
(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 1681i
of this title, 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.
(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) of this section, 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) of
this section 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 4502 of
title 12.
(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) of this section;
(ii) disclose any information other than a credit score or
key factors, as defined in subsection (f) of this section;
(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
4502 of title 12).
(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.
15 U.S.C. 1681h. Conditions and form of disclosure to
consumers
(a) In general
(1) Proper identification
A consumer reporting agency shall require, as a condition of
making the disclosures required under section
1681g of this
title, that the consumer furnish proper identification.
(2) Disclosure in writing
Except as provided in subsection (b) of this section, the
disclosures required to be made under section
1681g of this title
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 1681g of this
title —
(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
1681g of this title 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
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
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
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.
15 U.S.C. 1681i. Procedure in Case of Disputed Accuracy.
(a) Reinvestigations of disputed information
(1) Reinvestigation required
(A) In general
Subject to subsection (f) of this section, 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) of this section 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) of this section 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 consumer
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
1681a(p) of this title 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) of this section; 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
[15 U.S.C. 41 et seq.] shall not be subject to paragraph (1).
(3) Agency responsibilities
Each consumer reporting agency described in section
1681a(p) of
this title 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) of this section
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.
15 U.S.C. 1681j. Charges for Certain Disclosures.
(a) Free annual disclosure
(1) Nationwide consumer reporting agencies
(A) In general
All consumer reporting agencies described in subsections (p)
and (w) of section
1681a of this title shall make all
disclosures pursuant to section
1681g of this title 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
1681a(p) of this title
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
1681a(w)
of this title 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
December 4, 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
1681a(w) of this title) shall be required to comply with
subsection (a) of this section, which effective date —
(I) shall be established after consideration of the
ability of each nationwide specialty consumer reporting
agency to comply with subsection (a) of this section; 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
1681i(a)(1) of this title, 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
1681g of
this title without charge to the consumer if, not later than 60
days after receipt by such consumer of a notification pursuant to
section
1681m of this title, 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
1681g of this title.
(c) Free disclosure under certain other circumstances
Upon the request of the consumer, a consumer reporting agency
shall make all disclosures pursuant to section
1681g of this title
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
1681a(p) of this title shall make all
disclosures pursuant to section
1681g of this title without charge
to the consumer, as provided in subsections (a)(2) and (b)(2) of
section
1681c-1 of this title, 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 subchapter
or making any disclosure required by this subchapter, except as
authorized by subsection (f) of this section.
(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) of this
section, a consumer reporting agency may impose a reasonable
charge on a consumer —
(A) for making a disclosure to the consumer pursuant to
section
1681g of this title, 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 section
1681i(d) of this
title, following a reinvestigation under section
1681i(a) of
this title, 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
1681i(a) of this title
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.
15 U.S.C. 1681k. Public record information for employment
purposes
(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) of this section 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
1681b(b)(4)(A) of this title.
15 U.S.C. 1681l. Restrictions on investigative consumer
reports
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.
15 U.S.C. 1681m. Requirements on Users of Consumer Reports.
(a) Duties of users taking adverse actions on 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
1681j of this title, 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
1681i of this title, 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
1681a(k)(1)(A) of this title, taken
in connection with a transaction initiated by the consumer, or
any adverse action described in clause (i) or (ii) of section
1681a(k)(1)(B) of this title.
(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 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
1681b(c)(1)(B) of this title, 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
1681b(e) of this title.
(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
1681b(e) of this title; 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.
(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
1681s of this title —
(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.
(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
1681c-2 of this title 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
subchapter V of this chapter) 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) of this section in connection with
the transaction.
(4) Other notice not sufficient
A person that is required to provide a notice under subsection
(a) of this section 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
1681a(p) of this title).
(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
1681n and
1681o of this title 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
1681s
of this title by the Federal agencies and officials identified
in that section.
15 U.S.C. 1681n. Civil Liability for Willful Noncompliance.
(a) In general
Any person who willfully fails to comply with any requirement
imposed under this subchapter 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.
15 U.S.C. 1681o. Civil Liability for Negligent
Noncompliance.
(a) In general
Any person who is negligent in failing to comply with any
requirement imposed under this subchapter 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.
15 U.S.C. 1681p. Jurisdiction of Courts; Limitation of
Actions.
An action to enforce any liability created under this
subchapter
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.
15 U.S.C. 1681q. Obtaining information under false pretenses
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, imprisoned for not more than 2
years, or both.
15 U.S.C. 1681r. Unauthorized disclosures by officers or
employees
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, imprisoned
for not more than 2 years, or both.
15 U.S.C. 1681s. Administrative Enforcement.
(a) Enforcement by Federal Trade Commission
(1) Compliance with the requirements imposed under this
subchapter 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 subchapter 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
subchapter 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 subchapter 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 subchapter. Any person violating any of the
provisions of this subchapter 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 subchapter.
(2)(A) In the event of a knowing violation, which constitutes a
pattern or practice of violations of this subchapter, 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 subchapter. 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
1681s-2(a)(1)
of this title 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 subchapter
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
1681m of this title 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
with respect to any Federal credit union;
(4) subtitle IV of title 49, by the Secretary of
Transportation, with respect to all carriers subject to the
jurisdiction of the Surface Transportation Board;
(5) part A of subtitle VII of title 49, by the Secretary of
Transportation with respect to any air carrier or foreign air
carrier subject to that part; 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,
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
subchapter 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 subchapter, 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 1681n and 1681o of this title as a
result of the violation;
(ii) in the case of a violation described in any of
paragraphs (1) through (3) of section 1681s-2(c)
of this
title, damages for which the person would, but for section
1681s-2(c) of this title, 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) of
this section 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 [12
U.S.C. 1818] for a violation of this subchapter, 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 subchapter 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
1681s-2(c) of this title, 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
1681s-2(c) of this title, 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 subchapter 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 subchapter 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) of this section shall jointly prescribe
such regulations as necessary to carry out the purposes of this
subchapter with respect to any persons identified under paragraphs
(1) and (2) of subsection (b) of this section, 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 subchapter with respect to any persons identified under
paragraph (3) of subsection (b) of this section.
(f) Coordination of consumer complaint investigations
(1) In general
Each consumer reporting agency described in section
1681a(p) of
this title 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
1681c-1 of this title or a block under section
1681c-2 of this title.
(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.
(3) Annual summary reports
Each consumer reporting agency described in section
1681a(p) of
this title 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
1681s-2(a) of this title 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.
15 U.S.C. 1681s-1. Information on overdue child support
obligations
Notwithstanding any other provision of this subchapter, a
consumer reporting agency shall include in any consumer report
furnished by the agency in accordance with section
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.
.15 U.S.C. 1681s-2. Responsibilities of Furnishers of
Information to Consumer Reporting Agencies.
(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
1681c-2 of this title 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
1681a(p) of this title 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
1681a(p) of this title
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
1681a(p) of this title.
(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 1637(a) of this title.
(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.
(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) Negative information
The term "negative Information" means information
concerning a customer's delinquencies, late payments,
insolvency, or any form of default.
(ii) Customer; financial institution
The terms "customer" and "financial institution" have
the same meanings as in section 6809 of this title.
(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
1679a(3) of this title, including entities that would be a
credit repair organization, but for section 1679a(3)(B)(i)
of this title, 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
1681i(a)(1) of this title 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)
of this section, with respect to which the person has
already performed the person's duties under this paragraph
or subsection (b) of this section, 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 1679a(3) of this
title, or an entity that would be a credit repair
organization, but for section 1679a(3)(B)(i) of this title.
(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
1681i(a)(2) of this
title 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
1681i(a)(2) of this title;
(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
1681i(a)(1) of this title
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
1681s(c)(1)(B) of this title,
sections
1681n and
1681o of this title 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
1681n or
1681o of this title, as applicable, for
violations of subsection (b) of this section; or
(3) subsection (e) of section
1681m of this title.
(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
1681s of this title by the Federal agencies
and officials and the State officials identified in section
1681s of
this title.
(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
1681s of this title, 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.
15 U.S.C. 1681s-3. Affiliate Sharing.
(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
1681a(d)(2)(A) of this
title, 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) of this section, and that is
provided by a person described in subsection (a) of this section to
a consumer together with disclosures required by any other provision
of law, shall satisfy the requirements of subsection (a) of this
section.
(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
1681t(b)(2) of this
title.
(d) Definitions
For purposes of this section, the following definitions shall
apply:
(1) Pre-existing business relationship
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) Solicitation
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)
of this section, 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.
15 U.S.C. 1681t. Relation to State Laws.
(a) In general
Except as provided in subsections (b) and (c) of this section,
this subchapter does not annul, alter, affect, or exempt any person
subject to the provisions of this subchapter 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 subchapter,
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
1681b of this title,
relating to the prescreening of consumer reports;
(B) section
1681i of this title, 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 September 30,
1996;
(C) subsections (a) and (b) of section
1681m of this title,
relating to the duties of a person who takes any adverse action
with respect to a consumer;
(D) section
1681m(d) of this title, 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
1681c of this title, relating to information
contained in consumer reports, except that this subparagraph
shall not apply to any State law in effect on September 30,
1996;
(F) section
1681s-2 of this title, 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 September 30,
1996); or
(ii) with respect to section 1785.25(a) of the California
Civil Code (as in effect on September 30, 1996);
(G) section
1681g(e) of this title, relating to information
available to victims under section
1681g(e) of this title;
(H) section
1681s-3 of this title, relating to the exchange
and use of information to make a solicitation for marketing
purposes; or
(I) section
1681m(h) of this title, 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 September 30, 1996);
(3) with respect to the disclosures required to be made under
subsection (c), (d), (e), or (g) of section
1681g of this title,
or subsection (f) of section
1681g of this title 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
December 4, 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 December 4, 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
1681j(a) of this title, 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 December 4, 2003);
(B) with respect to section 10-1-393(29)(C) of the
Georgia Code (as in effect on December 4, 2003);
(C) with respect to section 1316.2 of title 10 of the
Maine Revised Statutes (as in effect on December 4, 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 December 4, 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 December 4, 2003);
(F) with respect to section 56:11-37.10(a)(1) of the New
Jersey Revised Statutes (as in effect on December 4, 2003); or
(G) with respect to section 2480c(a)(1) of title 9 of the
Vermont Statutes Annotated (as in effect on December 4, 2003);
or
(5) with respect to the conduct required by the specific
provisions of —
(A) section
1681c(g) of this title;
(B) section
1681c-1 of this title;
(C) section
1681c-2 of this title;
(D) section
1681g(a)(1)(A) of this title;
(E) section
1681j(a) of this title;
(F) subsections (e), (f), and (g) of section
1681m of this
title;
(G) section
1681s(f) of this title;
(H) section
1681s-2(a)(6) of this title; or
(I) section
1681w of this title.
(c) "Firm offer of credit or insurance" defined
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
1681a(l) of
this title 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) of this section do not affect any
settlement, agreement, or consent judgment between any State
Attorney General and any consumer reporting agency in effect on
September 30, 1996.
15 U.S.C. 1681u. Disclosures to FBI for counterintelligence
purposes
(a) Identity of financial institutions
Notwithstanding section
1681b of this title or any other provision
of this subchapter, 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 3401 of
title 12) 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
1681b of this title or
any other provision of this subchapter, 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 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 subsection. 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.
(c) Court order for disclosure of consumer reports
Notwithstanding section
1681b of this title or any other provision
of this subchapter, 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 in 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
(1) If the Director of the Federal Bureau of Investigation, or his
designee in a position not lower than Deputy Assistant Director at
Bureau headquarters or a Special Agent in Charge in a Bureau field
office designated by the Director, certifies that otherwise there
may result a danger to the national security of the United States,
interference with a criminal, counterterrorism, or
counterintelligence investigation, interference with diplomatic
relations, or danger to the life or physical safety of any person,
no consumer reporting agency or officer, employee, or agent of a
consumer reporting agency shall disclose to any person (other than
those to whom such disclosure is necessary to comply with the
request or an attorney to obtain legal advice or legal assistance
with respect to the request) that 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) of this section, 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 on a consumer
report.
(2) The request shall notify the person or entity to whom the
request is directed of the nondisclosure requirement under paragraph
(1).
(3) Any recipient disclosing to those persons necessary to comply
with the request or to an attorney to obtain legal advice or legal
assistance with respect to the request shall inform such persons of
any applicable nondisclosure requirement. Any person who receives a
disclosure under this subsection shall be subject to the same
prohibitions on disclosure under paragraph (1).
(4) At the request of the Director of the Federal Bureau of
Investigation or the designee of the Director, any person making or
intending to make a disclosure under this section shall identify to
the Director or such designee the person to whom such disclosure
will be made or to whom such disclosure was made prior to the
request, except that nothing in this section shall require a person
to inform the Director or such designee of the identity of an
attorney to whom disclosure was made or will be made to obtain legal
advice or legal assistance with respect to the request for the
identity of financial institutions or a consumer report respecting
any consumer under this section.
(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 subchapter. Nothing in this section shall be
construed to authorize or permit the withholding of information
from the Congress.
(h) Reports to Congress
(1) On a semiannual basis, the Attorney General shall fully inform
the Permanent Select Committee on Intelligence and the Committee on
Banking, Finance and Urban Affairs of the House of Representatives,
and the Select Committee on Intelligence and the Committee on
Banking, Housing, and Urban Affairs of the Senate concerning all
requests made pursuant to subsections (a), (b), and (c) of this
section.
(2) In the case of the semiannual reports required to be submitted
under paragraph (1) to the Permanent Select Committee on
Intelligence of the House of Representatives and the Select
Committee on Intelligence of the Senate, the submittal dates for
such reports shall be as provided in section 415b of title 50.
(i) Damages
Any agency or department of the United States obtaining or
disclosing any consumer reports, records, or information contained
therein in violation of this section is liable to the consumer to
whom such consumer reports, records, or information relate in an
amount equal to the sum of —
(1) $100, without regard to the volume of consumer reports,
records, or information involved;
(2) any actual damages sustained by the consumer as a result of
the disclosure;
(3) if the violation is found to have been willful or
intentional, such punitive damages as a court may allow; and
(4) in the case of any successful action to enforce liability
under this subsection, the costs of the action, together with
reasonable attorney fees, as determined by the court.
(j) Disciplinary actions for violations
If a court determines that any agency or department of the United
States has violated any provision of this section and the court
finds that the circumstances surrounding the violation raise
questions of whether or not an officer or employee of the agency or
department acted willfully or intentionally with respect to the
violation, the agency or department shall promptly initiate a
proceeding to determine whether or not disciplinary action is
warranted against the officer or employee who was responsible for
the violation.
(k) Good-faith exception
Notwithstanding any other provision of this subchapter, any
consumer reporting agency or agent or employee thereof making
disclosure of consumer reports or identifying information pursuant
to this subsection in good-faith reliance upon a certification of
the Federal Bureau of Investigation pursuant to 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.
(l) Limitation of remedies
Notwithstanding any other provision of this subchapter, the
remedies and sanctions set forth in this section shall be the only
judicial remedies and sanctions for violation of this section.
(m) Injunctive relief
In addition to any other remedy contained in this section,
injunctive relief shall be available to require compliance with the
procedures of this section. In the event of any successful action
under this subsection, costs together with reasonable attorney
fees, as determined by the court, may be recovered.
15 U.S.C. 1681v. Disclosures to Governmental Agencies for
Counterterrorism Purposes
(a) Disclosure
Notwithstanding section
1681b of this title or any other provision
of this subchapter, 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) of this section
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
(1) If the head of a government agency authorized to conduct
investigations of intelligence or counterintelligence activities or
analysis related to international terrorism, or his designee,
certifies that otherwise there may result a danger to the national
security of the United States, interference with a criminal,
counterterrorism, or counterintelligence investigation, interference
with diplomatic relations, or danger to the life or physical safety
of any person, no consumer reporting agency or officer, employee, or
agent of such consumer reporting agency, shall disclose to any
person (other than those to whom such disclosure is necessary to
comply with the request or an attorney to obtain legal advice or
legal assistance with respect to the request), or specify in any
consumer report, that a government agency has sought or obtained
access to information under subsection (a) of this section.
(2) The request shall notify the person or entity to whom the
request is directed of the nondisclosure requirement under paragraph
(1).
(3) Any recipient disclosing to those persons necessary to comply
with the request or to any attorney to obtain legal advice or legal
assistance with respect to the request shall inform such persons of
any applicable nondisclosure requirement. Any person who receives a
disclosure under this subsection shall be subject to the same
prohibitions on disclosure under paragraph (1).
(4) At the request of the authorized government agency, any person
making or intending to make a disclosure under this section shall
identify to the requesting official of the authorized government
agency the person to whom such disclosure will be made or to whom
such disclosure was made prior to the request, except that nothing
in this section shall require a person to inform the requesting
official of the identity of an attorney to whom disclosure was made
or will be made to obtain legal advice or legal assistance with
respect to the request for information under subsection (a) of this
section.
(d) Rule of construction
Nothing in section
1681u of this title 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 subchapter, 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.
(f) Reports to Congress
(1) On a semi-annual basis, the Attorney General shall fully
inform the Committee on the Judiciary, the Committee on Financial
Services, and the Permanent Select Committee on Intelligence of the
House of Representatives and the Committee on the Judiciary, the
Committee on Banking, Housing, and Urban Affairs, and the Select
Committee on Intelligence of the Senate concerning all requests made
pursuant to subsection (a) of this section.
(2) In the case of the semiannual reports required to be submitted
under paragraph (1) to the Permanent Select Committee on
Intelligence of the House of Representatives and the Select
Committee on Intelligence of the Senate, the submittal dates for
such reports shall be as provided in section 415b of title 50.
15 U.S.C. 1681w. Disposal of Records.
(a) Regulations
(1) In general
Not later than 1 year after December 4, 2003, 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
1681s of this
title, 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.
15 U.S.C. 1681x. Corporate and Technological Circumvention
Prohibited.
The Commission shall prescribe regulations, to become
effective
not later than 90 days after December 4, 2003, to prevent a consumer
reporting agency from circumventing or evading treatment as a
consumer reporting agency described in section
1681a(p) of this
title for purposes of this subchapter, 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
1681a(p) of this
title, in the manner described in section
1681a(p) of this title.
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