2757 44th St Sw #306
Wyoming, MI 49519 616-530-4883
Your Friends In Credit Reports and Credit Scoring
The Fair Credit Reporting Act
As a public service, the staff of the Federal Trade Commission (FTC) has prepared the following complete text of the Fair Credit Reporting Act (FCRA), 15 U.S.C. & 1681 et seq. Although staff generally followed the format of the U.S. Code as published by the Government Printing Office, the format of this text does differ in minor ways from the Code (and from West's U.S. Code Annotated). For example, this version uses FCRA section numbers (&& 601-625) in the headings. (The relevant U.S. Code citation is included with each section heading and each reference to the FCRA in the text.) Although the staff has made every effort to transcribe the statutory material accurately, this compendium is intended only as a convenience for the public and not a substitute for the text in the U. S. Code. The Commission's website (www.ftc.gov) posted this document on October 20, 2006.
This version of the FCRA includes the amendments to the FCRA set forth in the Consumer Credit Reporting Reform Act of 1996 (Public Law 104-208, the Omnibus Consolidated Appropriations Act for Fiscal Year 1997, Title II, Subtitle D, Chapter 1), Section 311 of the Intelligence Authorization for Fiscal Year 1998 (Public Law 105-107), the Consumer Reporting Employment Clarification Act of 1998 (Public Law 105-347), Section 506 of the Gramm-Leach-Bliley Act (Public Law 106-102), Sections 358(G) and 505(C) of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) (Public Law 107-56), the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) (Public Law 108-159), and Section 719 of the Financial Services Regulatory Relief Act of 2006 (Public Law 109-351).
The provisions added to the FCRA by the FACT Act became effective at different times. In some cases, the provision includes its own effective date. In other cases, the FACT Act provides that the effective dates be prescribed by the FTC and Federal Reserve Board. See 16 CFR Part 602. (69 Fed. Reg. 6526; February 11, 2004) (69 Fed. Reg. 29061; May 20, 2004).
TABLE OF CONTENTS
601 Short title
602 Congressional findings and statement of purpose
603 Definitions; rules of construction
604 Permissible purposes of consumer reports
605 Requirements relating to information contained in consumer reports
605A Identity theft prevention; fraud alerts and active duty alerts
605B Block of information resulting from identity theft
606 Disclosure of investigative consumer reports
607 Compliance procedures
608 Disclosures to governmental agencies
609 Disclosures to consumers
610 Conditions and form of disclosure to consumers
611 Procedure in case of disputed accuracy
612 Charges for certain disclosures
613 Public record information for employment purposes
614 Restrictions on investigative consumer reports
615 Requirements on users of consumer reports
616 Civil liability for willful noncompliance
617 Civil liability for negligent noncompliance
618 Jurisdiction of courts; limitation of actions
619 Obtaining information under false pretenses
620 Unauthorized disclosures by officers or employees
621 Administrative enforcement
622 Information on overdue child support obligations
623 Responsibilities of furnishers of information to consumer reporting agencies
624 Affiliate sharing
625 Relation to state laws
626 Disclosures to FBI for counterintelligence purposes
627 Disclosures to governmental agencies for counterterrorism purposes
628 Disposal of records
629 Corporate and technological circumvention prohibited
601. Short title
This title may be cited as the "Fair Credit Reporting Act".
602. Congressional findings and statement of purpose [15 U.S.C. & 1681]
(a)Accuracy and fairness of credit reporting. The Congress makes the following findings:
(1)The
banking system is dependent upon fair and accurate credit reporting.
Inaccurate credit reports directly impair the efficiency of the banking
system, and unfair credit reporting methods undermine the public
confidence which is essential to the continued functioning of the
banking system.
(2)An elaborate mechanism
has been developed for investigating and evaluating the credit
worthiness, credit standing, credit capacity, character, and general
reputation of consumers.
(3)Consumer
reporting agencies have assumed a vital role in assembling and
evaluating consumer credit and other information on consumers.
(4)There
is a need to insure that consumer reporting agencies exercise their
grave responsibilities with fairness, impartiality, and a respect for
the consumer's right to privacy.
(b)Reasonable procedures. It is the purpose
of this title to require that consumer reporting agencies adopt
reasonable procedures for meeting the needs of commerce for consumer
credit, personnel, insurance, and other information in a manner which
is fair and equitable to the consumer, with regard to the
confidentiality, accuracy, relevancy, and proper utilization of such
information in accordance with the requirements of this title.
603. Definitions; rules of construction [15 U.S.C. & 1681a]
(a)Definitions and rules of construction set forth in this section are applicable for the purposes of this title.
(b)The term "person" means any individual,
partnership, corporation, trust, estate, cooperative, association,
government or governmental subdivision or agency, or other entity.
(c)The term "consumer" means an individual.
(d)Consumer Repor
(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 604 [& 1681b].
(2)Exclusions. Except as provided in paragraph (3), the term "consumer report" does not include
(A)subject to section 624, any
(i)report containing information solely as to transactions or experiences between the consumer and the person making the report;
(ii)communication of that information among persons related by common ownership or affiliated by corporate control; or
(iii)communication
of other information among persons related by common ownership or
affiliated by corporate control, if it is clearly and conspicuously
disclosed to the consumer that the information may be communicated
among such persons and the consumer is given the opportunity, before
the time that the information is initially communicated, to direct that
such information not be communicated among such persons;
(B)any
authorization or approval of a specific extension of credit directly or
indirectly by the issuer of a credit card or similar device;
(C)any
report in which a person who has been requested by a third party to
make a specific extension of credit directly or indirectly to a
consumer conveys his or her decision with respect to such request, if
the third party advises the consumer of the name and address of the
person to whom the request was made, and such person makes the
disclosures to the consumer required under section 615 [& 1681m]; or
(D)a communication described in subsection (o) or (x).
(3)Restriction on sharing of medical information.
Except for information or any communication of information disclosed as
provided in section 604(g)(3), the exclusions in paragraph (2) shall
not apply with respect to information disclosed to any person related
by common ownership or affiliated by corporate control, if the
information is--
(A)medical information;
(B)an individualized list or description based on the payment transactions of the consumer for medical products or services; or
(C)an aggregate list of identified consumers based on payment transactions for medical products or services.
(e)The term "investigative consumer report" means a
consumer report or portion thereof in which information on a consumer's
character, general reputation, personal characteristics, or mode of
living is obtained through personal interviews with neighbors, friends,
or associates of the consumer reported on or with others with whom he
is acquainted or who may have knowledge concerning any such items of
information. However, such information shall not include specific
factual information on a consumer's credit record obtained directly
from a creditor of the consumer or from a consumer reporting agency
when such information was obtained directly from a creditor of the
consumer or from the consumer.
(f)The term "consumer reporting agency" means any
person which, for monetary fees, dues, or on a cooperative nonprofit
basis, regularly engages in whole or in part in the practice of
assembling or evaluating consumer credit information or other
information on consumers for the purpose of furnishing consumer reports
to third parties, and which uses any means or facility of interstate
commerce for the purpose of preparing or furnishing consumer reports.
(g)The term "file," when used in connection with
information on any consumer, means all of the information on that
consumer recorded and retained by a consumer reporting agency
regardless of how the information is stored.
(h)The term "employment purposes" when used in
connection with a consumer report means a report used for the purpose
of evaluating a consumer for employment, promotion, reassignment or
retention as an employee.
(i)The term "medical information" --
(1)means
information or data, whether oral or recorded, in any form or medium,
created by or derived from a health care provider or the consumer, that
relates to--
(A)the past, present, or future physical, mental, or behavioral health or condition of an individual;
(B)the provision of health care to an individual; or
(C)the payment for the provision of health care to an individual.
(2)does
not include the age or gender of a consumer, demographic information
about the consumer, including a consumer's residence address or e-mail
address, or any other information about a consumer that does not relate
to the physical, mental, or behavioral health or condition of a
consumer, including the existence or value of any insurance policy.
(j)Definitions Relating to Child Support Obligations
(1)The
"overdue support" has the meaning given to such term in section 666(e)
of title 42 [Social Security Act, 42 U.S.C. & 666(e)].
(2)The
term "State or local child support enforcement agency" means a State or
local agency which administers a State or local program for
establishing and enforcing child support obligations.
(k)Adverse Action
(1)Actions included. The term "adverse action"
(A)has the same meaning as in section 701(d)(6) of the Equal Credit Opportunity Act; and
(B)means
(i)a
denial or cancellation of, an increase in any charge for, or a
reduction or other adverse or unfavorable change in the terms of
coverage or amount of, any insurance, existing or applied for, in
connection with the underwriting of insurance;
(ii)a denial of employment or any other decision for employment purposes that adversely affects any current or prospective employee;
(iii)a
denial or cancellation of, an increase in any charge for, or any other
adverse or unfavorable change in the terms of, any license or benefit
described in section 604(a)(3)(D) [& 1681b]; and
(iv)an action taken or determination that is
(I)made
in connection with an application that was made by, or a transaction
that was initiated by, any consumer, or in connection with a review of
an account under section 604(a)(3)(F)(ii)[& 1681b]; and
(II)adverse to the interests of the consumer.
(2)Applicable findings, decisions, commentary, and orders.
For purposes of any determination of whether an action is an adverse
action under paragraph (1)(A), all appropriate final findings,
decisions, commentary, and orders issued under section 701(d)(6) of the
Equal Credit Opportunity Act by the Board of Governors of the Federal
Reserve System or any court shall apply.
(l)The term "firm offer of credit or insurance" means
any offer of credit or insurance to a consumer that will be honored if
the consumer is determined, based on information in a consumer report
on the consumer, to meet the specific criteria used to select the
consumer for the offer, except that the offer may be further
conditioned on one or more of the following:
(1)The consumer being determined, based on
information in the consumer's application for the credit or insurance,
to meet specific criteria bearing on credit worthiness or insurability,
as applicable, that are established
(A)before selection of the consumer for the offer; and
(B)for the purpose of determining whether to extend credit or insurance pursuant to the offer.
(2)Verification<
(A)that
the consumer continues to meet the specific criteria used to select the
consumer for the offer, by using information in a consumer report on
the consumer, information in the consumer's application for the credit
or insurance, or other information bearing on the credit worthiness or
insurability of the consumer; or
(B)of the
information in the consumer's application for the credit or insurance,
to determine that the consumer meets the specific criteria bearing on
credit worthiness or insurability.
(3)The consumer furnishing any collateral that is a requirement for the extension of the credit or insurance that was
(A)established before selection of the consumer for the offer of credit or insurance; and
(B)disclosed to the consumer in the offer of credit or insurance.
(m)The term "credit or insurance transaction that is
not initiated by the consumer" does not include the use of a consumer
report by a person with which the consumer has an account or insurance
policy, for purposes of
(1)reviewing the account or insurance policy; or
(2)collecting the account.
(n)The term "State" means any State, the Commonwealth
of Puerto Rico, the District of Columbia, and any territory or
possession of the United States.
(o)Excluded communications. A communication is described in this subsection if it is a communication
(1)that, but for subsection (d)(2)(D), would be an investigative consumer report;
(2)that is made to a prospective employer for the purpose of
(A)procuring an employee for the employer; or
(B)procuring an opportunity for a natural person to work for the employer;
(3)that is made by a person who regularly performs such procurement;
(4)that is not used by any person for any purpose other than a purpose described in subparagraph (A) or (B) of paragraph (2); and
(5)with respect to which
(A)the consumer who is the subject of the communication
(i)consents
orally or in writing to the nature and scope of the communication,
before the collection of any information for the purpose of making the
communication;
(ii)consents orally or in
writing to the making of the communication to a prospective employer,
before the making of the communication; and
(iii) in the case of consent under clause (i) or (ii) given orally, is
provided written confirmation of that consent by the person making the
communication, not later than 3 business days after the receipt of the
consent by that person;
(B)the
person who makes the communication does not, for the purpose of making
the communication, make any inquiry that if made by a prospective
employer of the consumer who is the subject of the communication would
violate any applicable Federal or State equal employment opportunity
law or regulation; and
(C)the person who makes the communication
(i)discloses
in writing to the consumer who is the subject of the communication, not
later than 5 business days after receiving any request from the
consumer for such disclosure, the nature and substance of all
information in the consumer's file at the time of the request, except
that the sources of any information that is acquired solely for use in
making the communication and is actually used for no other purpose,
need not be disclosed other than under appropriate discovery procedures
in any court of competent jurisdiction in which an action is brought;
and
(ii)notifies the consumer who is the
subject of the communication, in writing, of the consumer's right to
request the information described in clause (i).
(p)The term "consumer reporting agency that compiles
and maintains files on consumers on a nationwide basis" means a
consumer reporting agency that regularly engages in the practice of
assembling or evaluating, and maintaining, for the purpose of
furnishing consumer reports to third parties bearing on a consumer's
credit worthiness, credit standing, or credit capacity, each of the
following regarding consumers residing nationwide:
(1)Public record information.
(2)Credit account information from persons who furnish that information regularly and in the ordinary course of business.
(q)Definitions relating to fraud alerts.
(1)The term "active duty military consumer" means a consumer in military service who--
(A)is
on active duty (as defined in section 101(d)(1) of title 10, United
States Code) or is a reservist performing duty under a call or order to
active duty under a provision of law referred to in section 101(a)(13)
of title 10, United States Code; and
(B)is assigned to service away from the usual duty station of the consumer.
(2)The terms "fraud alert" and "active duty alert" mean a statement in the file of a consumer that--
(A)notifies
all prospective users of a consumer report relating to the consumer
that the consumer may be a victim of fraud, including identity theft,
or is an active duty military consumer, as applicable; and
(B)is
presented in a manner that facilitates a clear and conspicuous view of
the statement described in subparagraph (A) by any person requesting
such consumer report.
(3)The term
"identity theft" means a fraud committed using the identifying
information of another person, subject to such further definition as
the Commission may prescribe, by regulation.
See also 16 CFR Part 603.2
69 Fed. Reg. 63922 (11/03/04)
69 Fed. Reg. 63922 (11/03/04)
(4) The term "identity theft report" has the meaning given that term by rule of the Commission, and means, at a minimum, a report--
(A)that alleges an identity theft;
(B)that
is a copy of an official, valid report filed by a consumer with an
appropriate Federal, State, or local law enforcement agency, including
the United States Postal Inspection Service, or such other government
agency deemed appropriate by the Commission; and
(C)the
filing of which subjects the person filing the report to criminal
penalties relating to the filing of false information if, in fact, the
information in the report is false.
See also 16 CFR Part 603.3
69 Fed. Reg. 63922 (11/03/04)
69 Fed. Reg. 63922 (11/03/04)
(5)The
term "new credit plan" means a new account under an open end credit
plan (as defined in section 103(i) of the Truth in Lending Act) or a
new credit transaction not under an open end credit plan.
(r)Credit and Debit Related Terms
(1)The term "card issuer" means--
(A)a credit card issuer, in the case of a credit card; and
(B)a debit card issuer, in the case of a debit card.
(2)The term "credit card" has the same meaning as in section 103 of the Truth in Lending Act.
(3)The
term "debit card" means any card issued by a financial institution to a
consumer for use in initiating an electronic fund transfer from the
account of the consumer at such financial institution, for the purpose
of transferring money between accounts or obtaining money, property,
labor, or services.
(4)The terms "account" and "electronic fund transfer" have the same meanings as in section 903 of the Electronic Fund Transfer Act.
(5)The terms "credit" and "creditor" have the same meanings as in section 702 of the Equal Credit Opportunity Act.
(s)The term "Federal banking agency" has the same meaning as in section 3 of the Federal Deposit Insurance Act.
(t)The term "financial institution" means a State or
National bank, a State or Federal savings and loan association, a
mutual savings bank, a State or Federal credit union, or any other
person that, directly or indirectly, holds a transaction account (as
defined in section 19(b) of the Federal Reserve Act) belonging to a
consumer.
(u)The term "reseller" means a consumer reporting agency that--
(1)assembles
and merges information contained in the database of another consumer
reporting agency or multiple consumer reporting agencies concerning any
consumer for purposes of furnishing such information to any third
party, to the extent of such activities; and
(2)does not maintain a database of the assembled or merged information from which new consumer reports are produced.
(v)The term "Commission" means the Federal Trade Commission.
(w)The term "nationwide specialty consumer reporting
agency" means a consumer reporting agency that compiles and maintains
files on consumers on a nationwide basis relating to--
(1)medical records or payments;
(2)residential or tenant history;
(3)check writing history;
(4)employment history; or
(5)insurance claims.
(x)Exclusion of Certain Communications for Employee Investigations
(1)A communication is described in this subsection if--
(A)but for subsection (d)(2)(D), the communication would be a consumer report;
(B)the communication is made to an employer in connection with an investigation of-
(i)suspected misconduct relating to employment; or
(ii)compliance
with Federal, State, or local laws and regulations, the rules of a
self-regulatory organization, or any preexisting written policies of
the employer;
(C)the
communication is not made for the purpose of investigating a consumer's
credit worthiness, credit standing, or credit capacity; and
(D)the communication is not provided to any person except--
(i)to the employer or an agent of the employer;
(ii)to
any Federal or State officer, agency, or department, or any officer,
agency, or department of a unit of general local government;
(iii)to any self-regulatory organization with regulatory authority over the activities of the employer or employee;
(iv)as otherwise required by law; or
(v)pursuant to section 608.
(2)Subsequent disclosure.
After taking any adverse action based in whole or in part on a
communication described in paragraph (1), the employer shall disclose
to the consumer a summary containing the nature and substance of the
communication upon which the adverse action is based, except that the
sources of information acquired solely for use in preparing what would
be but for subsection (d)(2)(D) an investigative consumer report need
not be disclosed.
(3)For purposes of this
subsection, the term "self-regulatory organization" includes any
self-regulatory organization (as defined in section 3(a)(26) of the
Securities Exchange Act of 1934), any entity established under title I
of the Sarbanes-Oxley Act of 2002, any board of trade designated by the
Commodity Futures Trading Commission, and any futures association
registered with such Commission.
604. Permissible purposes of consumer reports [15 U.S.C. & 1681b]
(a)In general. Subject to subsection (c),
any consumer reporting agency may furnish a consumer report under the
following circumstances and no other:
(1)In response to the order of a court having
jurisdiction to issue such an order, or a subpoena issued in connection
with proceedings before a Federal grand jury.
(2)In accordance with the written instructions of the consumer to whom it relates.
(3)To a person which it has reason to believe
(A)intends
to use the information in connection with a credit transaction
involving the consumer on whom the information is to be furnished and
involving the extension of credit to, or review or collection of an
account of, the consumer; or
(B)intends to use the information for employment purposes; or
(C)intends to use the information in connection with the underwriting of insurance involving the consumer; or
(D)intends
to use the information in connection with a determination of the
consumer's eligibility for a license or other benefit granted by a
governmental instrumentality required by law to consider an applicant's
financial responsibility or status; or
(E)intends
to use the information, as a potential investor or servicer, or current
insurer, in connection with a valuation of, or an assessment of the
credit or prepayment risks associated with, an existing credit
obligation; or
(F)otherwise has a legitimate business need for the information
(i)in connection with a business transaction that is initiated by the consumer; or
(ii)to review an account to determine whether the consumer continues to meet the terms of the account.
(4)In
response to a request by the head of a State or local child support
enforcement agency (or a State or local government official authorized
by the head of such an agency), if the person making the request
certifies to the consumer reporting agency that
(A)the consumer report is needed for the purpose
of establishing an individual's capacity to make child support payments
or determining the appropriate level of such payments;
(B)the
paternity of the consumer for the child to which the obligation relates
has been established or acknowledged by the consumer in accordance with
State laws under which the obligation arises (if required by those
laws);
(C)the person has provided at least
10 days' prior notice to the consumer whose report is requested, by
certified or registered mail to the last known address of the consumer,
that the report will be requested; and
(D)the
consumer report will be kept confidential, will be used solely for a
purpose described in subparagraph (A), and will not be used in
connection with any other civil, administrative, or criminal
proceeding, or for any other purpose.
(5)To
an agency administering a State plan under Section 454 of the Social
Security Act (42 U.S.C. & 654) for use to set an initial or modified
child support award.
(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 or the Federal
Credit Union Act, 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 title, as prescribed by
the Federal Trade Commission under section 609(c)(3) [& 1681g].
(2)Disclosure to Consumer.
(A)In general.
Except as provided in subparagraph (B), a person may not procure a
consumer report, or cause a consumer report to be procured, for
employment purposes with respect to any consumer, unless--
(i)a clear and conspicuous disclosure has been
made in writing to the consumer at any time before the report is
procured or caused to be procured, in a document that consists solely
of the disclosure, that a consumer report may be obtained for
employment purposes; and
(ii)the consumer
has authorized in writing (which authorization may be made on the
document referred to in clause (i)) the procurement of the report by
that person.
(B)Application by mail, telephone, computer, or other similar means.
If a consumer described in subparagraph (C) applies for employment by
mail, telephone, computer, or other similar means, at any time before a
consumer report is procured or caused to be procured in connection with
that application-
(i)the person who procures the consumer report
on the consumer for employment purposes shall provide to the consumer,
by oral, written, or electronic means, notice that a consumer report
may be obtained for employment purposes, and a summary of the
consumer's rights under section 615(a)(3); and
(ii)the consumer shall have consented, orally, in writing, or electronically to the procurement of the report by that person.
(C)Scope.
Subparagraph (B) shall apply to a person procuring a consumer report on
a consumer in connection with the consumer's application for employment
only if--
(i)the consumer is applying for a position over
which the Secretary of Transportation has the power to establish
qualifications and maximum hours of service pursuant to the provisions
of section 31502 of title 49, or a position subject to safety
regulation by a State transportation agency; and
(ii)as
of the time at which the person procures the report or causes the
report to be procured the only interaction between the consumer and the
person in connection with that employment application has been by mail,
telephone, computer, or other similar means.
(3)Conditions on use for adverse actions.
(A)In general.
Except as provided in subparagraph (B), in using a consumer report for
employment purposes, before taking any adverse action based in whole or
in part on the report, the person intending to take such adverse action
shall provide to the consumer to whom the report relates--
(i)a copy of the report; and
(ii)a
description in writing of the rights of the consumer under this title,
as prescribed by the Federal Trade Commission under section 609(c)(3).1
(B)Application by mail, telephone, computer, or other similar means.
(i)If
a consumer described in subparagraph (C) applies for employment by
mail, telephone, computer, or other similar means, and if a person who
has procured a consumer report on the consumer for employment purposes
takes adverse action on the employment application based in whole or in
part on the report, then the person must provide to the consumer to
whom the report relates, in lieu of the notices required under
subparagraph (A) of this section and under section 615(a), within 3
business days of taking such action, an oral, written or electronic
notification--
(I)that adverse action has been taken based in whole or in part on a consumer report received from a consumer reporting agency;
(II)of
the name, address and telephone number of the consumer reporting agency
that furnished the consumer report (including a toll-free telephone
number established by the agency if the agency compiles and maintains
files on consumers on a nationwide basis);
(III)that
the consumer reporting agency did not make the decision to take the
adverse action and is unable to provide to the consumer the specific
reasons why the adverse action was taken; and
(IV)that
the consumer may, upon providing proper identification, request a free
copy of a report and may dispute with the consumer reporting agency the
accuracy or completeness of any information in a report.
(ii)If,
under clause (B)(i)(IV), the consumer requests a copy of a consumer
report from the person who procured the report, then, within 3 business
days of receiving the consumer's request, together with proper
identification, the person must send or provide to the consumer a copy
of a report and a copy of the consumer's rights as prescribed by the
Federal Trade Commission under section 609(c)(3).
(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)Report to the Congress.
Not later than January 31 of each year, the head of each agency and
department of the United States Government that exercised authority
under this paragraph during the preceding year shall submit a report to
the Congress on the number of times the department or agency exercised
such authority during the year.
(E)Definitions. For purposes of this paragraph, the following definitions shall apply:
(i)The
term "classified information" means information that is protected from
unauthorized disclosure under Executive Order No. 12958 or successor
orders.
(ii)The term "national security
investigation" means any official inquiry by an agency or department of
the United States Government to determine the eligibility of a consumer
to receive access or continued access to classified information or to
determine whether classified information has been lost or compromised.
(c)Furnishing reports in connection with credit or insurance transactions that are not initiated by the consumer.
(1)In general.
A consumer reporting agency may furnish a consumer report relating to
any consumer pursuant to subparagraph (A) or (C) of subsection (a)(3)
in connection with any credit or insurance transaction that is not
initiated by the consumer only if
(A)the consumer authorizes the agency to provide such report to such person; or
(B)(i)the transaction consists of a firm offer of credit or insurance;
(ii)the consumer reporting agency has complied with subsection (e); and
(iii)there
is not in effect an election by the consumer, made in accordance with
subsection (e), to have the consumer's name and address excluded from
lists of names provided by the agency pursuant to this paragraph.
(2)Limits on information received under paragraph (1)(B). A person may receive pursuant to paragraph (1)(B) only
(A)the name and address of a consumer;
(B)an
identifier that is not unique to the consumer and that is used by the
person solely for the purpose of verifying the identity of the
consumer; and
(C)other information
pertaining to a consumer that does not identify the relationship or
experience of the consumer with respect to a particular creditor or
other entity.
(3)Information regarding inquiries.
Except as provided in section 609(a)(5) [&1681g], a consumer reporting
agency shall not furnish to any person a record of inquiries in
connection with a credit or insurance transaction that is not initiated
by a consumer.
(d)Reserved.
(e)Election of consumer to be excluded from lists.
(1)In general.
A consumer may elect to have the consumer's name and address excluded
from any list provided by a consumer reporting agency under subsection
(c)(1)(B) in connection with a credit or insurance transaction that is
not initiated by the consumer, by notifying the agency in accordance
with paragraph (2) that the consumer does not consent to any use of a
consumer report relating to the consumer in connection with any credit
or insurance transaction that is not initiated by the consumer.
(2)Manner of notification. A consumer shall notify a consumer reporting agency under paragraph (1)
(A)through the notification system maintained by the agency under paragraph (5); or
(B)by submitting to the agency a signed notice of election form issued by the agency for purposes of this subparagraph.
(3)Response of agency after notification through system.
Upon receipt of notification of the election of a consumer under
paragraph (1) through the notification system maintained by the agency
under paragraph (5), a consumer reporting agency shall
(A)inform the consumer that the election is
effective only for the 5-year period following the election if the
consumer does not submit to the agency a signed notice of election form
issued by the agency for purposes of paragraph (2)(B); and
(B)provide
to the consumer a notice of election form, if requested by the
consumer, not later than 5 business days after receipt of the
notification of the election through the system established under
paragraph (5), in the case of a request made at the time the consumer
provides notification through the system.
(4)Effectiveness of election. An election of a consumer under paragraph (1)
(A)shall
be effective with respect to a consumer reporting agency beginning 5
business days after the date on which the consumer notifies the agency
in accordance with paragraph (2);
(B)shall be effective with respect to a consumer reporting agency
(i)subject
to subparagraph (C), during the 5-year period beginning 5 business days
after the date on which the consumer notifies the agency of the
election, in the case of an election for which a consumer notifies the
agency only in accordance with paragraph (2)(A); or
(ii)until
the consumer notifies the agency under subparagraph (C), in the case of
an election for which a consumer notifies the agency in accordance with
paragraph (2)(B);
(C)shall not
be effective after the date on which the consumer notifies the agency,
through the notification system established by the agency under
paragraph (5), that the election is no longer effective; and
(D)shall be effective with respect to each affiliate of the agency.
(5)Notification System
(A)In general.
Each consumer reporting agency that, under subsection (c)(1)(B),
furnishes a consumer report in connection with a credit or insurance
transaction that is not initiated by a consumer, shall
(i)establish and maintain a notification system,
including a toll-free telephone number, which permits any consumer
whose consumer report is maintained by the agency to notify the agency,
with appropriate identification, of the consumer's election to have the
consumer's name and address excluded from any such list of names and
addresses provided by the agency for such a transaction; and
(ii)publish
by not later than 365 days after the date of enactment of the Consumer
Credit Reporting Reform Act of 1996, and not less than annually
thereafter, in a publication of general circulation in the area served
by the agency
(I)a notification that information in consumer files maintained by the agency may be used in connection with such transactions; and
(II)the
address and toll-free telephone number for consumers to use to notify
the agency of the consumer's election under clause (I).
(B)Establishment and maintenance as compliance.
Establishment and maintenance of a notification system (including a
toll-free telephone number) and publication by a consumer reporting
agency on the agency's own behalf and on behalf of any of its
affiliates in accordance with this paragraph is deemed to be compliance
with this paragraph by each of those affiliates.
(6)Notification system by agencies that operate nationwide.
Each consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis shall establish and maintain a
notification system for purposes of paragraph (5) jointly with other
such consumer reporting agencies.
(f)Certain use or obtaining of information prohibited. A person shall not use or obtain a consumer report for any purpose unless
(1)the
consumer report is obtained for a purpose for which the consumer report
is authorized to be furnished under this section; and
(2)the
purpose is certified in accordance with section 607 [& 1681e] by a
prospective user of the report through a general or specific
certification.
(g)Protection of Medical Information
(1)Limitation on consumer reporting agencies.
A consumer reporting agency shall not furnish for employment purposes,
or in connection with a credit or insurance transaction, a consumer
report that contains medical information (other than medical contact
information treated in the manner required under section 605(a)(6))
about a consumer, unless--
(A)if furnished in connection with an insurance transaction, the consumer affirmatively consents to the furnishing of the report;
(B)if furnished for employment purposes or in connection with a credit transaction--
(i)the information to be furnished is relevant to process or effect the employment or credit transaction; and
(ii)the
consumer provides specific written consent for the furnishing of the
report that describes in clear and conspicuous language the use for
which the information will be furnished; or
(C)the
information to be furnished pertains solely to transactions, accounts,
or balances relating to debts arising from the receipt of medical
services, products, or devises, where such information, other than
account status or amounts, is restricted or reported using codes that
do not identify, or do not provide information sufficient to infer, the
specific provider or the nature of such services, products, or devices,
as provided in section 605(a)(6).
(2)Limitation on creditors.
Except as permitted pursuant to paragraph (3)(C) or regulations
prescribed under paragraph (5)(A), a creditor shall not obtain or use
medical information (other than medical contact information treated in
the manner required under section 605(a)(6)) pertaining to a consumer
in connection with any determination of the consumer's eligibility, or
continued eligibility, for credit.
(3)Actions authorized by federal law, insurance activities and regulatory determinations.
Section 603(d)(3) shall not be construed so as to treat information or
any communication of information as a consumer report if the
information or communication is disclosed--
(A)in connection with the business of insurance
or annuities, including the activities described in section 18B of the
model Privacy of Consumer Financial and Health Information Regulation
issued by the National Association of Insurance Commissioners (as in
effect on January 1, 2003);
(B)for any
purpose permitted without authorization under the Standards for
Individually Identifiable Health Information promulgated by the
Department of Health and Human Services pursuant to the Health
Insurance Portability and Accountability Act of 1996, or referred to
under section 1179 of such Act, or described in section 502(e) of
Public Law 106-102; or
(C)as otherwise
determined to be necessary and appropriate, by regulation or order and
subject to paragraph (6), by the Commission, any Federal banking agency
or the National Credit Union Administration (with respect to any
financial institution subject to the jurisdiction of such agency or
Administration under paragraph (1), (2), or (3) of section 621(b), or
the applicable State insurance authority (with respect to any person
engaged in providing insurance or annuities).
(4)Limitation on redisclosure of medical information.
Any person that receives medical information pursuant to paragraph (1)
or (3) shall not disclose such information to any other person, except
as necessary to carry out the purpose for which the information was
initially disclosed, or as otherwise permitted by statute, regulation,
or order.
(5)Regulations and Effective Date for Paragraph (2)
(A)Regulations required.
Each Federal banking agency and the National Credit Union
Administration shall, subject to paragraph (6) and after notice and
opportunity for comment, prescribe regulations that permit transactions
under paragraph (2) that are determined to be necessary and appropriate
to protect legitimate operational, transactional, risk, consumer, and
other needs (and which shall include permitting actions necessary for
administrative verification purposes), consistent with the intent of
paragraph (2) to restrict the use of medical information for
inappropriate purposes.
(B)Final regulations required. The Federal banking agencies and the National Credit Union
Administration shall issue the regulations required under sub-paragraph
(A) in final form before the end of the 6-month period beginning on the
date of enactment of the Fair and Accurate Credit Transactions Act of
2003.
See also 12 CFR Parts 41/222/232/334/571/717
70 Fed. Reg. 70664 (11/22/05)
70 Fed. Reg. 70664 (11/22/05)
(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.
605. Requirements relating to information contained in consumer reports [15 U.S.C. &1681c]
(a)Information excluded from consumer reports. Except as authorized under subsection
(b)of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:
(1)Cases
under title 11 [United States Code] or under the Bankruptcy Act that,
from the date of entry of the order for relief or the date of
adjudication, as the case may be, antedate the report by more than 10
years.
(2)Civil suits, civil judgments, and
records of arrest that from date of entry, antedate the report by more
than seven years or until the governing statute of limitations has
expired, whichever is the longer period.
(3)Paid tax liens which, from date of payment, antedate the report by more than seven years.
(4)Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.2
(5)Any
other adverse item of information, other than records of convictions of
crimes which antedates the report by more than seven years.2
(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)3 of subsection (a) shall begin, with respect to any delinquent account
that is placed for collection (internally or by referral to a third
party, whichever is earlier), charged to profit and loss, or subjected
to any similar action, upon the expiration of the 180-day period
beginning on the date of the commencement of the delinquency which
immediately preceded the collection activity, charge to profit and
loss, or similar action.
(2)Effective date.
Paragraph (1) shall apply only to items of information added to the
file of a consumer on or after the date that is 455 days after the date
of enactment of the Consumer Credit Reporting Reform Act of 1996.
(d)Information Required to be Disclosed
(1)Title 11 information.
Any consumer reporting agency that furnishes a consumer report that
contains information regarding any case involving the consumer that
arises under title 11, United States Code, shall include in the report
an identification of the chapter of such title 11 under which such case
arises if provided by the source of the information. If any case
arising or filed under title 11, United States Code, is withdrawn by
the consumer before a final judgment, the consumer reporting agency
shall include in the report that such case or filing was withdrawn upon
receipt of documentation certifying such withdrawal.
(2)Key factor in credit score information.
Any consumer reporting agency that furnishes a consumer report that
contains any credit score or any other risk score or predictor on any
consumer shall include in the report a clear and conspicuous statement
that a key factor (as defined in section 609(f)(2)(B)) that adversely
affected such score or predictor was the number of enquiries, if such a
predictor was in fact a key factor that adversely affected such score.
This paragraph shall not apply to a check services company, acting as
such, which issues authorizations for the purpose of approving or
processing negotiable instruments, electronic fund transfers, or
similar methods of payments, but only to the extent that such company
is engaged in such activities.
(e)Indication of closure of account by consumer.
If a consumer reporting agency is notified pursuant to section
623(a)(4) [& 1681s-2] that a credit account of a consumer was
voluntarily closed by the consumer, the agency shall indicate that fact
in any consumer report that includes information related to the account.
(f)Indication of dispute by consumer. If a
consumer reporting agency is notified pursuant to section 623(a)(3) [&
1681s-2] that information regarding a consumer who was furnished to the
agency is disputed by the consumer, the agency shall indicate that fact
in each consumer report that includes the disputed information.
(g)Truncation of Credit Card and Debit Card Numbers
(1)In general.
Except as otherwise provided in this subsection, no person that accepts
credit cards or debit cards for the transaction of business shall print
more than the last 5 digits of the card number or the expiration date
upon any receipt provided to the cardholder at the point of the sale or
transaction.
(2)Limitation. This
subsection shall apply only to receipts that are electronically
printed, and shall not apply to transactions in which the sole means of
recording a credit card or debit card account number is by handwriting
or by an imprint or copy of the card.
(3)Effective date. This subsection shall become effective--
(A)3
years after the date of enactment of this subsection, with respect to
any cash register or other machine or device that electronically prints
receipts for credit card or debit card transactions that is in use
before January 1, 2005; and
(B)1 year after
the date of enactment of this subsection, with respect to any cash
register or other machine or device that electronically prints receipts
for credit card or debit card transactions that is first put into use
on or after January 1, 2005.
(h)Notice of Discrepancy in Address
(1)In general.
If a person has requested a consumer report relating to a consumer from
a consumer reporting agency described in section 603(p), the request
includes an address for the consumer that substantially differs from
the addresses in the file of the consumer, and the agency provides a
consumer report in response to the request, the consumer reporting
agency shall notify the requester of the existence of the discrepancy.
(2)Regulations
(A)Regulations required.
The Federal banking agencies, the National Credit Union Administration,
and the Commission shall jointly, with respect to the entities that are
subject to their respective enforcement authority under section 621,
prescribe regulations providing guidance regarding reasonable policies
and procedures that a user of a consumer report should employ when such
user has received a notice of discrepancy under paragraph (1).
(B)Policies and procedures to be included.
The regulations prescribed under subparagraph (A) shall describe
reasonable policies and procedures for use by a user of a consumer
report--
(i)to form a reasonable belief that the user knows the identity of the person to whom the consumer report pertains; and
(ii)if
the user establishes a continuing relationship with the consumer, and
the user regularly and in the ordinary course of business furnishes
information to the consumer reporting agency from which the notice of
discrepancy pertaining to the consumer was obtained, to reconcile the
address of the consumer with the consumer reporting agency by
furnishing such address to such consumer reporting agency as part of
information regularly furnished by the user for the period in which the
relationship is established.
605A. Identity theft prevention; fraud alerts and active duty alerts [15 U.S.C. &1681c-1]
(a)One-call Fraud Alerts
(1)Initial alerts.
Upon the direct request of a consumer, or an individual acting on
behalf of or as a personal representative of a consumer, who asserts in
good faith a suspicion that the consumer has been or is about to become
a victim of fraud or related crime, including identity theft, a
consumer reporting agency described in section 603(p) that maintains a
file on the consumer and has received appropriate proof of the identity
of the requester shall--
(A)include a fraud alert in the file of that
consumer, and also provide that alert along with any credit score
generated in using that file, for a period of not less than 90 days,
beginning on the date of such request, unless the consumer or such
representative requests that such fraud alert be removed before the end
of such period, and the agency has received appropriate proof of the
identity of the requester for such purpose; and
(B)refer
the information regarding the fraud alert under this paragraph to each
of the other consumer reporting agencies described in section 603(p),
in accordance with procedures developed under section 621(f).
(2)Access to free reports.
In any case in which a consumer reporting agency includes a fraud alert
in the file of a consumer pursuant to this subsection, the consumer
reporting agency shall--
(A)disclose to the consumer that the consumer may request a free copy of the file of the consumer pursuant to section 612(d); and
(B)provide
to the consumer all disclosures required to be made under section 609,
without charge to the consumer, not later than 3 business days after
any request described in subparagraph (A).
(b)Extended Alerts
(1)In general.
Upon the direct request of a consumer, or an individual acting on
behalf of or as a personal representative of a consumer, who submits an
identity theft report to a consumer reporting agency described in
section 603(p) that maintains a file on the consumer, if the agency has
received appropriate proof of the identity of the requester, the agency
shall--
(A)include a fraud alert in the file of that
consumer, and also provide that alert along with any credit score
generated in using that file, during the 7-year period beginning on the
date of such request, unless the consumer or such representative
requests that such fraud alert be removed before the end of such period
and the agency has received appropriate proof of the identity of the
requester for such purpose;
(B)during the
5-year period beginning on the date of such request, exclude the
consumer from any list of consumers prepared by the consumer reporting
agency and provided to any third party to offer credit or insurance to
the consumer as part of a transaction that was not initiated by the
consumer, unless the consumer or such representative requests that such
exclusion be rescinded before the end of such period; and
(C)refer
the information regarding the extended fraud alert under this paragraph
to each of the other consumer reporting agencies described in section
603(p), in accordance with procedures developed under section 621(f).
(2)Access to free reports.
In any case in which a consumer reporting agency includes a fraud alert
in the file of a consumer pursuant to this subsection, the consumer
reporting agency shall--
(A)disclose to the consumer that the consumer may
request 2 free copies of the file of the consumer pursuant to section
612(d) during the 12-month period beginning on the date on which the
fraud alert was included in the file; and
(B)provide
to the consumer all disclosures required to be made under section 609,
without charge to the consumer, not later than 3 business days after
any request described in subparagraph (A).
(c)Active duty alerts. Upon the direct
request of an active duty military consumer, or an individual acting on
behalf of or as a personal representative of an active duty military
consumer, a consumer reporting agency described in section 603(p) that
maintains a file on the active duty military consumer and has received
appropriate proof of the identity of the requester shall--
(1)include an active duty alert in the file of
that active duty military consumer, and also provide that alert along
with any credit score generated in using that file, during a period of
not less than 12 months, or such longer period as the Commission shall
determine, by regulation, beginning on the date of the request, unless
the active duty military consumer or such representative requests that
such fraud alert be removed before the end of such period, and the
agency has received appropriate proof of the identity of the requester
for such purpose;
(2)during the 2-year
period beginning on the date of such request, exclude the active duty
military consumer from any list of consumers prepared by the consumer
reporting agency and provided to any third party to offer credit or
insurance to the consumer as part of a transaction that was not
initiated by the consumer, unless the consumer requests that such
exclusion be rescinded before the end of such period; and
(3)refer
the information regarding the active duty alert to each of the other
consumer reporting agencies described in section 603(p), in accordance
with procedures developed under section 621(f).
See also 16 CFR Part 613.1
69 Fed. Reg. 63922 (11/03/04)
69 Fed. Reg. 63922 (11/03/04)
(d)Procedures. Each consumer reporting
agency described in section 603(p) shall establish policies and
procedures to comply with this section, including procedures that
inform consumers of the availability of initial, extended, and active
duty alerts and procedures that allow consumers and active duty
military consumers to request initial, extended, or active duty alerts
(as applicable) in a simple and easy manner, including by telephone.
(e)Referrals of alerts. Each consumer
reporting agency described in section 603(p) that receives a referral
of a fraud alert or active duty alert from another consumer reporting
agency pursuant to this section shall, as though the agency received
the request from the consumer directly, follow the procedures required
under--
(1)paragraphs (1)(A) and (2) of subsection (a), in the case of a referral under subsection (a)(1)(B);
(2)paragraphs (1)(A), (1)(B), and (2) of subsection (b), in the case of a referral under subsection (b)(1)(C); and
(3)paragraphs (1) and (2) of subsection (c), in the case of a referral under subsection (c)(3).
(f)Duty of reseller to reconvey alert. A
reseller shall include in its report any fraud alert or active duty
alert placed in the file of a consumer pursuant to this section by
another consumer reporting agency.
(g)Duty of other consumer reporting agencies to provide contact information.
If a consumer contacts any consumer reporting agency that is not
described in section 603(p) to communicate a suspicion that the
consumer has been or is about to become a victim of fraud or related
crime, including identity theft, the agency shall provide information
to the consumer on how to contact the Commission and the consumer
reporting agencies described in section 603(p) to obtain more detailed
information and request alerts under this section.
(h)Limitations on Use of Information for Credit Extensions
(1)Requirements for initial and active duty alerts-
(A)Notification.
Each initial fraud alert and active duty alert under this section shall
include information that notifies all prospective users of a consumer
report on the consumer to which the alert relates that the consumer
does not authorize the establishment of any new credit plan or
extension of credit, other than under an open-end credit plan (as
defined in section 103(i)), in the name of the consumer, or issuance of
an additional card on an existing credit account requested by a
consumer, or any increase in credit limit on an existing credit account
requested by a consumer, except in accordance with subparagraph (B).
(B)Limitation on Users
(i)In general.
No prospective user of a consumer report that includes an initial fraud
alert or an active duty alert in accordance with this section may
establish a new credit plan or extension of credit, other than under an
open-end credit plan (as defined in section 103(i)), in the name of the
consumer, or issue an additional card on an existing credit account
requested by a consumer, or grant any increase in credit limit on an
existing credit account requested by a consumer, unless the user
utilizes reasonable policies and procedures to form a reasonable belief
that the user knows the identity of the person making the request.
(ii)Verification.
If a consumer requesting the alert has specified a telephone number to
be used for identity verification purposes, before authorizing any new
credit plan or extension described in clause (i) in the name of such
consumer, a user of such consumer report shall contact the consumer
using that telephone number or take reasonable steps to verify the
consumer's identity and confirm that the application for a new credit
plan is not the result of identity theft.
(2)Requirements for Extended Alerts
(A)Notification.
Each extended alert under this section shall include information that
provides all prospective users of a consumer report relating to a
consumer with-
(i)notification that the consumer does not
authorize the establishment of any new credit plan or extension of
credit described in clause (i), other than under an open-end credit
plan (as defined in section 103(i)), in the name of the consumer, or
issuance of an additional card on an existing credit account requested
by a consumer, or any increase in credit limit on an existing credit
account requested by a consumer, except in accordance with subparagraph
(B); and
(ii)a telephone number or other reasonable contact method designated by the consumer.
(B)Limitation on users.
No prospective user of a consumer report or of a credit score generated
using the information in the file of a consumer that includes an
extended fraud alert in accordance with this section may establish a
new credit plan or extension of credit, other than under an open-end
credit plan (as defined in section 103(i)), in the name of the
consumer, or issue an additional card on an existing credit account
requested by a consumer, or any increase in credit limit on an existing
credit account requested by a consumer, unless the user contacts the
consumer in person or using the contact method described in
subparagraph (A)(ii) to confirm that the application for a new credit
plan or increase in credit limit, or request for an additional card is
not the result of identity theft.
605B. Block of information resulting from identity theft [15 U.S.C. &1681c-2]
(a)Block. Except as otherwise provided in
this section, a consumer reporting agency shall block the reporting of
any information in the file of a consumer that the consumer identifies
as information that resulted from an alleged identity theft, not later
than 4 business days after the date of receipt by such agency of-
(1)appropriate proof of the identity of the consumer;
(2)a copy of an identity theft report;
(3)the identification of such information by the consumer; and
(4)a statement by the consumer that the information is not information relating to any transaction by the consumer.
(b)Notification. A consumer reporting agency
shall promptly notify the furnisher of information identified by the
consumer under subsection (a)--
(1)that the information may be a result of identity theft;
(2)that an identity theft report has been filed;
(3)that a block has been requested under this section; and
(4)of the effective dates of the block.
(c)Authority to Decline or Rescind
(1)In general.
A consumer reporting agency may decline to block, or may rescind any
block, of information relating to a consumer under this section, if the
consumer reporting agency reasonably determines that--
(A)the information was blocked in error or a block was requested by the consumer in error;
(B)the
information was blocked, or a block was requested by the consumer, on
the basis of a material misrepresentation of fact by the consumer
relevant to the request to block; or
(C)the consumer obtained possession of goods, services, or money as a result of the blocked transaction or transactions.
(2)Notification to consumer.
If a block of information is declined or rescinded under this
subsection, the affected consumer shall be notified promptly, in the
same manner as consumers are notified of the reinsertion of information
under section 611(a)(5)(B).
(3)Significance of block.
For purposes of this subsection, if a consumer reporting agency
rescinds a block, the presence of information in the file of a consumer
prior to the blocking of such information is not evidence of whether
the consumer knew or should have known that the consumer obtained
possession of any goods, services, or money as a result of the block.
(d)Exception for Resellers
(1)No reseller file. This section shall not apply to a consumer reporting agency, if the consumer reporting agency--
(A)is a reseller;
(B)is
not, at the time of the request of the consumer under subsection (a),
otherwise furnishing or reselling a consumer report concerning the
information identified by the consumer; and
(C)informs
the consumer, by any means, that the consumer may report the identity
theft to the Commission to obtain consumer information regarding
identity theft.
(2)Reseller with file.
The sole obligation of the consumer reporting agency under this
section, with regard to any request of a consumer under this section,
shall be to block the consumer report maintained by the consumer
reporting agency from any subsequent use, if--
(A)the consumer, in accordance with the
provisions of subsection (a), identifies, to a consumer reporting
agency, information in the file of the consumer that resulted from
identity theft; and
(B)the consumer reporting agency is a reseller of the identified information.
(3)Notice.
In carrying out its obligation under paragraph (2), the reseller shall
promptly provide a notice to the consumer of the decision to block the
file. Such notice shall contain the name, address, and telephone number
of each consumer reporting agency from which the consumer information
was obtained for resale.
(e)Exception for verification companies. The
provisions of this section do not apply to a check services company,
acting as such, which issues authorizations for the purpose of
approving or processing negotiable instruments, electronic fund
transfers, or similar methods of payments, except that, beginning 4
business days after receipt of information described in paragraphs (1)
through (3) of subsection (a), a check services company shall not
report to a national consumer reporting agency described in section
603(p), any information identified in the subject identity theft report
as resulting from identity theft.
(f)Access to blocked information by law enforcement agencies.
No provision of this section shall be construed as requiring a consumer
reporting agency to prevent a Federal, State, or local law enforcement
agency from accessing blocked information in a consumer file to which
the agency could otherwise obtain access under this title.
606. Disclosure of investigative consumer reports [15 U.S.C. & 1681d]
(a)Disclosure of fact of preparation. A person may not procure or cause to be prepared an investigative consumer report on any consumer unless
(1)it
is clearly and accurately disclosed to the consumer that an
investigative consumer report including information as to his
character, general reputation, personal characteristics and mode of
living, whichever are applicable, may be made, and such disclosure
(A)is made in a writing mailed, or otherwise
delivered, to the consumer, not later than three days after the date on
which the report was first requested, and
(B)includes
a statement informing the consumer of his right to request the
additional disclosures provided for under subsection (b) of this
section and the written summary of the rights of the consumer prepared
pursuant to section 609(c) [& 1681g]; and
(2)the person certifies or has certified to the consumer reporting agency that
(A)the person has made the disclosures to the consumer required by paragraph (1); and
(B)the person will comply with subsection (b).
(b)Disclosure on request of nature and scope of investigation.
Any person who procures or causes to be prepared an investigative
consumer report on any consumer shall, upon written request made by the
consumer within a reasonable period of time after the receipt by him of
the disclosure required by subsection (a)(1) of this section, make a
complete and accurate disclosure of the nature and scope of the
investigation requested. This disclosure shall be made in a writing
mailed, or otherwise delivered, to the consumer not later than five
days after the date on which the request for such disclosure was
received from the consumer or such report was first requested,
whichever is the later.
(c)Limitation on liability upon showing of reasonable procedures for compliance with provisions.
No person may be held liable for any violation of subsection (a) or (b)
of this section if he shows by a preponderance of the evidence that at
the time of the violation he maintained reasonable procedures to assure
compliance with subsection (a) or (b) of this section.
(d)Prohibitions
(1)Certification.
A consumer reporting agency shall not prepare or furnish investigative
consumer report unless the agency has received a certification under
subsection (a)(2) from the person who requested the report.
(2)Inquiries.
A consumer reporting agency shall not make an inquiry for the purpose
of preparing an investigative consumer report on a consumer for
employment purposes if the making of the inquiry by an employer or
prospective employer of the consumer would violate any applicable
Federal or State equal employment opportunity law or regulation.
(3)Certain public record information.
Except as otherwise provided in section 613 [& 1681k], a consumer
reporting agency shall not furnish an investigative consumer report
that includes information that is a matter of public record and that
relates to an arrest, indictment, conviction, civil judicial action,
tax lien, or outstanding judgment, unless the agency has verified the
accuracy of the information during the 30-day period ending on the date
on which the report is furnished.
(4)Certain adverse information.
A consumer reporting agency shall not prepare or furnish an
investigative consumer report on a consumer that contains information
that is adverse to the interest of the consumer and that is obtained
through a personal interview with a neighbor, friend, or associate of
the consumer or with another person with whom the consumer is
acquainted or who has knowledge of such item of information, unless
(A)the agency has followed reasonable procedures
to obtain confirmation of the information, from an additional source
that has independent and direct knowledge of the information; or
(B)the person interviewed is the best possible source of the information.
607. Compliance procedures [15 U.S.C. & 1681e]
(a)Identity and purposes of credit users.
Every consumer reporting agency shall maintain reasonable procedures
designed to avoid violations of section 605 [& 1681c] and to limit the
furnishing of consumer reports to the purposes listed under section 604
[& 1681b] of this title. These procedures shall require that
prospective users of the information identify themselves, certify the
purposes for which the information is sought, and certify that the
information will be used for no other purpose. Every consumer reporting
agency shall make a reasonable effort to verify the identity of a new
prospective user and the uses certified by such prospective user prior
to furnishing such user a consumer report. No consumer reporting agency
may furnish a consumer report to any person if it has reasonable
grounds for believing that the consumer report will not be used for a
purpose listed in section 604 [& 1681b] of this title.
(b)Accuracy of report. Whenever a consumer
reporting agency prepares a consumer report it shall follow reasonable
procedures to assure maximum possible accuracy of the information
concerning the individual about whom the report relates.
(c)Disclosure of consumer reports by users allowed.
A consumer reporting agency may not prohibit a user of a consumer
report furnished by the agency on a consumer from disclosing the
contents of the report to the consumer, if adverse action against the
consumer has been taken by the user based in whole or in part on the
report.
(d)Notice to Users and Furnishers of Information
(1)Notice requirement. A consumer reporting agency shall provide to any person
(A)who regularly and in the ordinary course of business furnishes information to the agency with respect to any consumer; or
(B)to whom a consumer report is provided by the agency; a notice of such person's responsibilities under this title.
See also 16 CFR 698, App G-H
69 Fed. Reg. 69776 (11/30/04)
69 Fed. Reg. 69776 (11/30/04)
(2)Content of notice.
The Federal Trade Commission shall prescribe the content of notices
under paragraph (1), and a consumer reporting agency shall be in
compliance with this subsection if it provides a notice under paragraph
(1) that is substantially similar to the Federal Trade Commission
prescription under this paragraph.
(e)Procurement of Consumer Report for Resale
(1)Disclosure.
A person may not procure a consumer report for purposes of reselling
the report (or any information in the report) unless the person
discloses to the consumer reporting agency that originally furnishes
the report
(A)the identity of the end-user of the report (or information); and
(B)each
permissible purpose under section 604 [& 1681b] for which the report is
furnished to the end-user of the report (or information).
(2)Responsibilities of procurers for resale. A person who procures a consumer report for purposes of reselling the report (or any information in the report) shall
(A)establish
and comply with reasonable procedures designed to ensure that the
report (or information) is resold by the person only for a purpose for
which the report may be furnished under section 604 [& 1681b],
including by requiring that each person to which the report (or
information) is resold and that resells or provides the report (or
information) to any other person
(i)identifies each end user of the resold report (or information);
(ii)certifies each purpose for which the report (or information) will be used; and
(iii)certifies that the report (or information) will be used for no other purpose; and
(B)before
reselling the report, make reasonable efforts to verify the
identifications and certifications made under subparagraph (A).
(3)Resale of consumer report to a federal agency or department.
Notwithstanding paragraph (1) or (2), a person who procures a consumer
report for purposes of reselling the report (or any information in the
report) shall not disclose the identity of the end-user of the report
under paragraph (1) or (2) if-
(A)the end user is an agency or department of the
United States Government which procures the report from the person for
purposes of determining the eligibility of the consumer concerned to
receive access or continued access to classified information (as
defined in section 604(b)(4)(E)(i)); 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.
608. Disclosures to governmental agencies [15 U.S.C. & 1681f]
Notwithstanding the provisions of section 604 [& 1681b] of this
title, a consumer reporting agency may furnish identifying information
respecting any consumer, limited to his name, address, former
addresses, places of employment, or former places of employment, to a
governmental agency.
609. Disclosures to consumers [15 U.S.C. & 1681g]
(a)Information on file; sources; report recipients.
Every consumer reporting agency shall, upon request, and subject to
610(a)(1) [& 1681h], clearly and accurately disclose to the consumer:
(1)All information in the consumer's file at the time of the request except that--
(A)if
the consumer to whom the file relates requests that the first 5 digits
of the social security number (or similar identification number) of the
consumer not be included in the disclosure and the consumer reporting
agency has received appropriate proof of the identity of the requester,
the consumer reporting agency shall so truncate such number in such
disclosure; and
(B)nothing in this
paragraph shall be construed to require a consumer reporting agency to
disclose to a consumer any information concerning credit scores or any
other risk scores or predictors relating to the consumer.
(2)The
sources of the information; except that the sources of information
acquired solely for use in preparing an investigative consumer report
and actually use for no other purpose need not be disclosed: Provided,
That in the event an action is brought under this title, such sources
shall be available to the plaintiff under appropriate discovery
procedures in the court in which the action is brought.
(3)(A)Identification of each person (including
each end-user identified under section 607(e)(1) [& 1681e]) that
procured a consumer report
(i)for employment purposes, during the 2-year period preceding the date on which the request is made; or
(ii)for any other purpose, during the 1-year period preceding the date on which the request is made.
(B)An identification of a person under subparagraph (A) shall include
(i)the name of the person or, if applicable, the trade name (written in full) under which such person conducts business; and
(ii)upon request of the consumer, the address and telephone number of the person.
(C)Subparagraph (A) does not apply if--
(i)the
end user is an agency or department of the United States Government
that procures the report from the person for purposes of determining
the eligibility of the consumer to whom the report relates to receive
access or continued access to classified information (as defined in
section 604(b)(4)(E)(i)); and
(ii)the head of the agency or department makes a written finding as prescribed under section 604(b)(4)(A).
(4)The
dates, original payees, and amounts of any checks upon which is based
any adverse characterization of the consumer, included in the file at
the time of the disclosure.
(5)A record of
all inquiries received by the agency during the 1-year period preceding
the request that identified the consumer in connection with a credit or
insurance transaction that was not initiated by the consumer.
(6)If
the consumer requests the credit file and not the credit score, a
statement that the consumer may request and obtain a credit score.
(b)Exempt information. The requirements of
subsection (a) of this section respecting the disclosure of sources of
information and the recipients of consumer reports do not apply to
information received or consumer reports furnished prior to the
effective date of this title except to the extent that the matter
involved is contained in the files of the consumer reporting agency on
that date.
(c)Summary of Rights to Obtain and Dispute Information in Consumer Reports and to Obtain Credit Scores
See also 16 CFR Part 698, App F
69 Fed. Reg. 69776 (11/30/04)
69 Fed. Reg. 69776 (11/30/04)
(1)Commission Summary of Rights Required
(A)In general. The Commission shall prepare a model summary of the rights of consumers under this title.
(B)Content of summary. The summary of rights prepared under subparagraph (A) shall include a description of-
(i)the right of a consumer to obtain a copy of a consumer report under subsection (a) from each consumer reporting agency;
(ii)the
frequency and circumstances under which a consumer is entitled to
receive a consumer report without charge under section 612;
(iii)the right of a consumer to dispute information in the file of the consumer under section 611;
(iv)the
right of a consumer to obtain a credit score from a consumer reporting
agency, and a description of how to obtain a credit score;
(v)the
method by which a consumer can contact, and obtain a consumer report
from, a consumer reporting agency without charge, as provided in the
regulations of the Commission prescribed under section 211(c) of the
Fair and Accurate Credit Transactions Act of 2003; and
(vi)the
method by which a consumer can contact, and obtain a consumer report
from, a consumer reporting agency described in section 603(w), as
provided in the regulations of the Commission prescribed under section
612(a)(1)(C).
(C)Availability of summary of rights. The Commission shall--
(i)actively publicize the availability of the summary of rights prepared under this paragraph;
(ii)conspicuously post on its Internet website the availability of such summary of rights; and
(iii)promptly make such summary of rights available to consumers, on request.
(2)Summary of rights required to be included with agency disclosures.
A consumer reporting agency shall provide to a consumer, with each
written disclosure by the agency to the consumer under this section--
(A)the summary of rights prepared by the Commission under paragraph (1);
(B)in
the case of a consumer reporting agency described in section 603(p), a
toll-free telephone number established by the agency, at which
personnel are accessible to consumers during normal business hours;
(C)a
list of all Federal agencies responsible for enforcing any provision of
this title, and the address and any appropriate phone number of each
such agency, in a form that will assist the consumer in selecting the
appropriate agency;
(D)a statement that the
consumer may have additional rights under State law, and that the
consumer may wish to contact a State or local consumer protection
agency or a State attorney general (or the equivalent thereof) to learn
of those rights; and
(E)a statement that a
consumer reporting agency is not required to remove accurate derogatory
information from the file of a consumer, unless the information is
outdated under section 605 or cannot be verified.
(d)Summary of Rights of Identity Theft Victims
See also 16 CFR Part 698, App E
69 Fed. Reg. 69776 (11/30/04)
69 Fed. Reg. 69776 (11/30/04)
(1)In general. The Commission, in
consultation with the Federal banking agencies and the National Credit
Union Administration, shall prepare a model summary of the rights of
consumers under this title with respect to the procedures for remedying
the effects of fraud or identity theft involving credit, an electronic
fund transfer, or an account or transaction at or with a financial
institution or other creditor.
(2)Summary of rights and contact information.
Beginning 60 days after the date on which the model summary of rights
is prescribed in final form by the Commission pursuant to paragraph
(1), if any consumer contacts a consumer reporting agency and expresses
a belief that the consumer is a victim of fraud or identity theft
involving credit, an electronic fund transfer, or an account or
transaction at or with a financial institution or other creditor, the
consumer reporting agency shall, in addition to any other action that
the agency may take, provide the consumer with a summary of rights that
contains all of the information required by the Commission under
paragraph (1), and information on how to contact the Commission to
obtain more detailed information.
(e)Information Available to Victims
(1)In general.
For the purpose of documenting fraudulent transactions resulting from
identity theft, not later than 30 days after the date of receipt of a
request from a victim in accordance with paragraph (3), and subject to
verification of the identity of the victim and the claim of identity
theft in accordance with paragraph (2), a business entity that has
provided credit to, provided for consideration products, goods, or
services to, accepted payment from, or otherwise entered into a
commercial transaction for consideration with, a person who has
allegedly made unauthorized use of the means of identification of the
victim, shall provide a copy of application and business transaction
records in the control of the business entity, whether maintained by
the business entity or by another person on behalf of the business
entity, evidencing any transaction alleged to be a result of identity
theft to--
(A)the victim;
(B)any Federal, State, or local government law enforcement agency or officer specified by the victim in such a request; or
(C)any
law enforcement agency investigating the identity theft and authorized
by the victim to take receipt of records provided under this subsection.
(2)Verification of identity and claim.
Before a business entity provides any information under paragraph (1),
unless the business entity, at its discretion, otherwise has a high
degree of confidence that it knows the identity of the victim making a
request under paragraph (1), the victim shall provide to the business
entity--
(A)as proof of positive identification of the victim, at the election of the business entity-
(i)the presentation of a government-issued identification card;
(ii)personally identifying information of the same type as was provided to the business entity by the unauthorized person; or
(iii)personally
identifying information that the business entity typically requests
from new applicants or for new transactions, at the time of the
victim's request for information, including any documentation described
in clauses (i) and (ii); and
(B)as proof of a claim of identity theft, at the election of the business entity--
(i)a copy of a police report evidencing the claim of the victim of identity theft; and
(ii)a properly completed--
(I)copy of a standardized affidavit of identity theft developed and made available by the Commission; or
(II)an affidavit of fact that is acceptable to the business entity for that purpose.
(3)Procedures. The request of a victim under paragraph (1) shall--
(A)be in writing;
(B)be mailed to an address specified by the business entity, if any; and
(C)if
asked by the business entity, include relevant information about any
transaction alleged to be a result of identity theft to facilitate
compliance with this section including-
(i)if known by the victim (or if readily obtainable by the victim), the date of the application or transaction; and
(ii)if
known by the victim (or if readily obtainable by the victim), any other
identifying information such as an account or transaction number.
(4)No charge to victim. Information required to be provided under paragraph (1) shall be so provided without charge.
(5)Authority to decline to provide information.
A business entity may decline to provide information under paragraph
(1) if, in the exercise of good faith, the business entity determines
that--
(A)this subsection does not require disclosure of the information;
(B)after
reviewing the information provided pursuant to paragraph (2), the
business entity does not have a high degree of confidence in knowing
the true identity of the individual requesting the information;
(C)the
request for the information is based on a misrepresentation of fact by
the individual requesting the information relevant to the request for
information; or
(D)the information
requested is Internet navigational data or similar information about a
person's visit to a website or online service.
(6)Limitation on liability. Except as provided in section 621, sections 616 and 617 do not apply to any violation of this subsection.
(7)Limitation on civil liability.
No business entity may be held civilly liable under any provision of
Federal, State, or other law for disclosure, made in good faith
pursuant to this subsection.
(8)No new recordkeeping obligation.
Nothing in this subsection creates an obligation on the part of a
business entity to obtain, retain, or maintain information or records
that are not otherwise required to be obtained, retained, or maintained
in the ordinary course of its business or under other applicable law.
(9)Rule of Construction
(A)In general.
No provision of subtitle A of title V of Public Law 106-102,
prohibiting the disclosure of financial information by a business
entity to third parties shall be used to deny disclosure of information
to the victim under this subsection.
(B)Limitation.
Except as provided in subparagraph (A), nothing in this subsection
permits a business entity to disclose information, including
information to law enforcement under subparagraphs (B) and (C) of
paragraph (1), that the business entity is otherwise prohibited from
disclosing under any other applicable provision of Federal or State law.
(10)Affirmative defense.
In any civil action brought to enforce this subsection, it is an
affirmative defense (which the defendant must establish by a
preponderance of the evidence) for a business entity to file an
affidavit or answer stating that-
(A)the business entity has made a reasonably diligent search of its available business records; and
(B)the records requested under this subsection do not exist or are not reasonably available.
(11)Definition of victim.
For purposes of this subsection, the term "victim" means a consumer
whose means of identification or financial information has been used or
transferred (or has been alleged to have been used or transferred)
without the authority of that consumer, with the intent to commit, or
to aid or abet, an identity theft or a similar crime.
(12)Effective date. This subsection shall become effective 180 days after the date of enactment of this subsection.
(13)Effectiveness study.
Not later than 18 months after the date of enactment of this
subsection, the Comptroller General of the United States shall submit a
report to Congress assessing the effectiveness of this provision.
(f)Disclosure of Credit Scores
(1)In general.
Upon the request of a consumer for a credit score, a consumer reporting
agency shall supply to the consumer a statement indicating that the
information and credit scoring model may be different than the credit
score that may be used by the lender, and a notice which shall
include--
(A)the current credit score of the consumer or
the most recent credit score of the consumer that was previously
calculated by the credit reporting agency for a purpose related to the
extension of credit;
(B)the range of possible credit scores under the model used;
(C)all
of the key factors that adversely affected the credit score of the
consumer in the model used, the total number of which shall not exceed
4, subject to paragraph (9);
(D)the date on which the credit score was created; and
(E)the name of the person or entity that provided the credit score or credit file upon which the credit score was created.
(2)Definitions. For purposes of this subsection, the following definitions shall apply:
(A)The term "credit score" --
(i)means
a numerical value or a categorization derived from a statistical tool
or modeling system used by a person who makes or arranges a loan to
predict the likelihood of certain credit behaviors, including default
(and the numerical value or the categorization derived from such
analysis may also be referred to as a "risk predictor" or "risk
score"); and
(ii)does not include--
(I)any
mortgage score or rating of an automated underwriting system that
considers one or more factors in addition to credit information,
including the loan to value ratio, the amount of down payment, or the
financial assets of a consumer; or
(II)any other elements of the underwriting process or underwriting decision.
(B)The
term "key factors" means all relevant elements or reasons adversely
affecting the credit score for the particular individual, listed in the
order of their importance based on their effect on the credit score.
(3)Timeframe and manner of disclosure.
The information required by this subsection shall be provided in the
same timeframe and manner as the information described in subsection
(a).
(4)Applicability to certain uses.
This subsection shall not be construed so as to compel a consumer
reporting agency to develop or disclose a score if the agency does
not--
(A)distribute scores that are used in connection with residential real property loans; or
(B)develop
scores that assist credit providers in understanding the general credit
behavior of a consumer and predicting the future credit behavior of the
consumer.
(5)Applicability to credit scores developed by another person.
(A)In general.
This subsection shall not be construed to require a consumer reporting
agency that distributes credit scores developed by another person or
entity to provide a further explanation of them, or to process a
dispute arising pursuant to section 611, except that the consumer
reporting agency shall provide the consumer with the name and address
and website for contacting the person or entity who developed the score
or developed the methodology of the score.
(B)Exception.
This paragraph shall not apply to a consumer reporting agency that
develops or modifies scores that are developed by another person or
entity.
(6)Maintenance of credit scores not required. This subsection shall not be construed to require a consumer reporting agency to maintain credit scores in its files.
(7)Compliance in certain cases. In complying with this subsection, a consumer reporting agency shall--
(A)supply
the consumer with a credit score that is derived from a credit scoring
model that is widely distributed to users by that consumer reporting
agency in connection with residential real property loans or with a
credit score that assists the consumer in understanding the credit
scoring assessment of the credit behavior of the consumer and
predictions about the future credit behavior of the consumer; and
(B)a statement indicating that the information and credit scoring model may be different than that used by the lender.
(8)Fair and reasonable fee.
A consumer reporting agency may charge a fair and reasonable fee, as
determined by the Commission, for providing the information required
under this subsection.
See also 69 Fed. Reg. 64698 (11/08/04)
(9)Use of enquiries as a key factor.
If a key factor that adversely affects the credit score of a consumer
consists of the number of enquiries made with respect to a consumer
report, that factor shall be included in the disclosure pursuant to
paragraph (1)(C) without regard to the numerical limitation in such
paragraph.
(g)Disclosure of Credit Scores by Certain Mortgage Lenders
(1)In general.
Any person who makes or arranges loans and who uses a consumer credit
score, as defined in subsection (f), in connection with an application
initiated or sought by a consumer for a closed end loan or the
establishment of an open end loan for a consumer purpose that is
secured by 1 to 4 units of residential real property (hereafter in this
subsection referred to as the "lender") shall provide the following to
the consumer as soon as reasonably practicable:
(A)Information Required under Subsection (f)
(i)In general.
A copy of the information identified in subsection (f) that was
obtained from a consumer reporting agency or was developed and used by
the user of the information.
(ii)Notice under subparagraph (D).
In addition to the information provided to it by a third party that
provided the credit score or scores, a lender is only required to
provide the notice contained in subparagraph (D).
(B)Disclosures in Case of Automated Underwriting System
(i)In general.
If a person that is subject to this subsection uses an automated
underwriting system to underwrite a loan, that person may satisfy the
obligation to provide a credit score by disclosing a credit score and
associated key factors supplied by a consumer reporting agency.
(ii)Numerical credit score.
However, if a numerical credit score is generated by an automated
underwriting system used by an enterprise, and that score is disclosed
to the person, the score shall be disclosed to the consumer consistent
with subparagraph (C).
(iii)Enterprise defined.
For purposes of this subparagraph, the term "enterprise" has the same
meaning as in paragraph (6) of section 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992.
(C)Disclosures of credit scores not obtained from a consumer reporting agency.
A person that is subject to the provisions of this subsection and that
uses a credit score, other than a credit score provided by a consumer
reporting agency, may satisfy the obligation to provide a credit score
by disclosing a credit score and associated key factors supplied by a
consumer reporting agency.
(D)Notice to home loan applicants.
A copy of the following notice, which shall include the name, address,
and telephone number of each consumer reporting agency providing a
credit score that was used:
"Notice To The Home Loan Applicant
"In connection with your application for a home loan, the lender must disclose to you the score that a consumer reporting agency distributed to users and the lender used in connection with your home loan, and the key factors affecting your credit scores.
"The credit score is a computer generated summary calculated at the time of the request and based on information that a consumer reporting agency or lender has on file. The scores are based on data about your credit history and payment patterns. Credit scores are important because they are used to assist the lender in determining whether you will obtain a loan. They may also be used to determine what interest rate you may be offered on the mortgage. Credit scores can change over time, depending on your conduct, how your credit history and payment patterns change, and how credit scoring technologies change.
"Because the score is based on information in your credit history, it is very important that you review the credit-related information that is being furnished to make sure it is accurate. Credit records may vary from one company to another.
"If you have questions about your credit score or the credit information that is furnished to you, contact the consumer reporting agency at the address and telephone number provided with this notice, or contact the lender, if the lender developed or generated the credit score. The consumer reporting agency plays no part in the decision to take any action on the loan application and is unable to provide you with specific reasons for the decision on a loan application.
"If you have questions concerning the terms of the loan, contact the lender."
"Notice To The Home Loan Applicant
"In connection with your application for a home loan, the lender must disclose to you the score that a consumer reporting agency distributed to users and the lender used in connection with your home loan, and the key factors affecting your credit scores.
"The credit score is a computer generated summary calculated at the time of the request and based on information that a consumer reporting agency or lender has on file. The scores are based on data about your credit history and payment patterns. Credit scores are important because they are used to assist the lender in determining whether you will obtain a loan. They may also be used to determine what interest rate you may be offered on the mortgage. Credit scores can change over time, depending on your conduct, how your credit history and payment patterns change, and how credit scoring technologies change.
"Because the score is based on information in your credit history, it is very important that you review the credit-related information that is being furnished to make sure it is accurate. Credit records may vary from one company to another.
"If you have questions about your credit score or the credit information that is furnished to you, contact the consumer reporting agency at the address and telephone number provided with this notice, or contact the lender, if the lender developed or generated the credit score. The consumer reporting agency plays no part in the decision to take any action on the loan application and is unable to provide you with specific reasons for the decision on a loan application.
"If you have questions concerning the terms of the loan, contact the lender."
(E)Actions not required under this subsection. This subsection shall not require any person to-
(i)explain the information provided pursuant to subsection (f);
(ii)disclose any information other than a credit score or key factors, as defined in subsection (f);
(iii)disclose any credit score or related information obtained by the user after a loan has closed;
(iv)provide more than 1 disclosure per loan transaction; or
(v)provide
the disclosure required by this subsection when another person has made
the disclosure to the consumer for that loan transaction.
(F)No Obligation for Content
(i)In general.
The obligation of any person pursuant to this subsection shall be
limited solely to providing a copy of the information that was received
from the consumer reporting agency.
(ii)Limit on liability.
No person has liability under this subsection for the content of that
information or for the omission of any information within the report
provided by the consumer reporting agency.
(G)Person defined as excluding enterprise.
As used in this subsection, the term "person" does not include an
enterprise (as defined in paragraph (6) of section 1303 of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992).
(2)Prohibition on Disclosure Clauses Null and Void
(A)In general.
Any provision in a contract that prohibits the disclosure of a credit
score by a person who makes or arranges loans or a consumer reporting
agency is void.
(B)No liability for disclosure under this subsection-
A lender shall not have liability under any contractual provision for
disclosure of a credit score pursuant to this subsection.
610. Conditions and form of disclosure to consumers [15 U.S.C. & 1681h]
(a)In General
(1)Proper identification.
A consumer reporting agency shall require, as a condition of making the
disclosures required under section 609 [& 1681g], that the consumer
furnish proper identification.
(2)Disclosure in writing.
Except as provided in subsection (b), the disclosures required to be
made under section 609 [& 1681g] shall be provided under that section
in writing.
(b)Other Forms of Disclosure
(1)In general. If authorized by a consumer, a consumer reporting agency may make the disclosures required under 609 [& 1681g]
(A)other than in writing; and
(B)in such form as may be
(i)specified by the consumer in accordance with paragraph (2); and
(ii)available from the agency.
(2)Form. A consumer may specify pursuant to paragraph (1) that disclosures under section 609 [& 1681g] shall be made
(A)in
person, upon the appearance of the consumer at the place of business of
the consumer reporting agency where disclosures are regularly provided,
during normal business hours, and on reasonable notice;
(B)by telephone, if the consumer has made a written request for disclosure by telephone;
(C)by electronic means, if available from the agency; or
(D)by any other reasonable means that is available from the agency.
(c)Trained personnel. Any consumer reporting
agency shall provide trained personnel to explain to the consumer any
information furnished to him pursuant to section 609 [& 1681g] of this
title.
(d)Persons accompanying consumer. The
consumer shall be permitted to be accompanied by one other person of
his choosing, who shall furnish reasonable identification. A consumer
reporting agency may require the consumer to furnish a written
statement granting permission to the consumer reporting agency to
discuss the consumer's file in such person's presence.
(e)Limitation of liability. Except as
provided in sections 616 and 617 [&&1681n and 1681o] of this title, no
consumer may bring any action or proceeding in the nature of
defamation, invasion of privacy, or negligence with respect to the
reporting of information against any consumer reporting agency, any
user of information, or any person who furnishes information to a
consumer reporting agency, based on information disclosed pursuant to
section 609, 610, or 615 [&& 1681g, 1681h, or 1681m] of this title or
based on information disclosed by a user of a consumer report to or for
a consumer against whom the user has taken adverse action, based in
whole or in part on the report, except as to false information
furnished with malice or willful intent to injure such consumer.
611. Procedure in case of disputed accuracy [15 U.S.C. & 1681i]
(a)Reinvestigations of Disputed Information
(1)Reinvestigation Required
(A)In general.
Subject to subsection (f), if the completeness or accuracy of any item
of information contained in a consumer's file at a consumer reporting
agency is disputed by the consumer and the consumer notifies the agency
directly, or indirectly through a reseller, of such dispute, the agency
shall, free of charge, conduct a reasonable reinvestigation to
determine whether the disputed information is inaccurate and record the
current status of the disputed information, or delete the item from the
file in accordance with paragraph (5), before the end of the 30-day
period beginning on the date on which the agency receives the notice of
the dispute from the consumer or reseller.
(B)Extension of period to reinvestigate.
Except as provided in subparagraph (C), the 30-day period described in
subparagraph (A) may be extended for not more than 15 additional days
if the consumer reporting agency receives information from the consumer
during that 30-day period that is relevant to the reinvestigation.
(C)Limitations on extension of period to reinvestigate.
Subparagraph (B) shall not apply to any reinvestigation in which,
during the 30-day period described in subparagraph (A), the information
that is the subject of the reinvestigation is found to be inaccurate or
incomplete or the consumer reporting agency determines that the
information cannot be verified.
(2)Prompt Notice of Dispute to Furnisher of Information
(A)In general.
Before the expiration of the 5-business-day period beginning on the
date on which a consumer reporting agency receives notice of a dispute
from any consumer or a reseller in accordance with paragraph (1), the
agency shall provide notification of the dispute to any person who
provided any item of information in dispute, at the address and in the
manner established with the person. The notice shall include all
relevant information regarding the dispute that the agency has received
from the consumer or reseller.
(B)Provision of other information.
The consumer reporting agency shall promptly provide to the person who
provided the information in dispute all relevant information regarding
the dispute that is received by the agency from the consumer or the
reseller after the period referred to in subparagraph (A) and before
the end of the period referred to in paragraph (1)(A).
(3)Determination That Dispute Is Frivolous or Irrelevant
(A)In general.
Notwithstanding paragraph (1), a consumer reporting agency may
terminate a reinvestigation of information disputed by a consumer under
that paragraph if the agency reasonably determines that the dispute by
the consumer is frivolous or irrelevant, including by reason of a
failure by a consumer to provide sufficient information to investigate
the disputed information.
(B)Notice of determination.
Upon making any determination in accordance with subparagraph (A) that
a dispute is frivolous or irrelevant, a consumer reporting agency shall
notify the consumer of such determination not later than 5 business
days after making such determination, by mail or, if authorized by the
consumer for that purpose, by any other means available to the agency.
(C)Contents of notice. A notice under subparagraph (B) shall include
(i)the reasons for the determination under subparagraph (A); and
(ii)identification
of any information required to investigate the disputed information,
which may consist of a standardized form describing the general nature
of such information.
(4)Consideration of consumer information.
In conducting any reinvestigation under paragraph (1) with respect to
disputed information in the file of any consumer, the consumer
reporting agency shall review and consider all relevant information
submitted by the consumer in the period described in paragraph (1)(A)
with respect to such disputed information.
(5)Treatment of Inaccurate or Unverifiable Information
(A)In general.
If, after any reinvestigation under paragraph (1) of any information
disputed by a consumer, an item of the information is found to be
inaccurate or incomplete or cannot be verified, the consumer reporting
agency shall-
(i)promptly delete that item of information from
the file of the consumer, or modify that item of information, as
appropriate, based on the results of the reinvestigation; and
(ii)promptly
notify the furnisher of that information that the information has been
modified or deleted from the file of the consumer.
(B)Requirements Relating to Reinsertion of Previously Deleted Material
(i)Certification of accuracy of information.
If any information is deleted from a consumer's file pursuant to
subparagraph (A), the information may not be reinserted in the file by
the consumer reporting agency unless the person who furnishes the
information certifies that the information is complete and accurate.
(ii)Notice to consumer.
If any information that has been deleted from a consumer's file
pursuant to subparagraph (A) is reinserted in the file, the consumer
reporting agency shall notify the consumer of the reinsertion in
writing not later than 5 business days after the reinsertion or, if
authorized by the consumer for that purpose, by any other means
available to the agency.
(iii)Additional information.
As part of, or in addition to, the notice under clause (ii), a consumer
reporting agency shall provide to a consumer in writing not later than
5 business days after the date of the reinsertion
(I)a statement that the disputed information has been reinserted;
(II)the
business name and address of any furnisher of information contacted and
the telephone number of such furnisher, if reasonably available, or of
any furnisher of information that contacted the consumer reporting
agency, in connection with the reinsertion of such information; and
(III)a
notice that the consumer has the right to add a statement to the
consumer's file disputing the accuracy or completeness of the disputed
information.
(C)Procedures to prevent reappearance.
A consumer reporting agency shall maintain reasonable procedures
designed to prevent the reappearance in a consumer's file, and in
consumer reports on the consumer, of information that is deleted
pursuant to this paragraph (other than information that is reinserted
in accordance with subparagraph (B)(i)).
(D)Automated reinvestigation system.
Any consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis shall implement an automated system
through which furnishers of information to that consumer reporting
agency may report the results of a reinvestigation that finds
incomplete or inaccurate information in a consumer's file to other such
consumer reporting agencies.
(6)Notice of Results of Reinvestigation
(A)In general.
A consumer reporting agency shall provide written notice to a consumer
of the results of a reinvestigation under this subsection not later
than 5 business days after the completion of the reinvestigation, by
mail or, if authorized by the consumer for that purpose, by other means
available to the agency.
(B)Contents.
As part of, or in addition to, the notice under subparagraph (A), a
consumer reporting agency shall provide to a consumer in writing before
the expiration of the 5-day period referred to in subparagraph (A)
(i)a statement that the reinvestigation is completed;
(ii)a consumer report that is based upon the consumer's file as that file is revised as a result of the reinvestigation;
(iii)a
notice that, if requested by the consumer, a description of the
procedure used to determine the accuracy and completeness of the
information shall be provided to the consumer by the agency, including
the business name and address of any furnisher of information contacted
in connection with such information and the telephone number of such
furnisher, if reasonably available;
(iv)a
notice that the consumer has the right to add a statement to the
consumer's file disputing the accuracy or completeness of the
information; and
(v)a notice that the
consumer has the right to request under subsection (d) that the
consumer reporting agency furnish notifications under that subsection.
(7)Description of reinvestigation procedure.
A consumer reporting agency shall provide to a consumer a description
referred to in paragraph (6)(B)(iii) by not later than 15 days after
receiving a request from the consumer for that description.
(8)Expedited dispute resolution.
If a dispute regarding an item of information in a consumer's file at a
consumer reporting agency is resolved in accordance with paragraph
(5)(A) by the deletion of the disputed information by not later than 3
business days after the date on which the agency receives notice of the
dispute from the consumer in accordance with paragraph (1)(A), then the
agency shall not be required to comply with paragraphs (2), (6), and
(7) with respect to that dispute if the agency
(A)provides prompt notice of the deletion to the consumer by telephone;
(B)includes
in that notice, or in a written notice that accompanies a confirmation
and consumer report provided in accordance with subparagraph (C), a
statement of the consumer's right to request under subsection (d) that
the agency furnish notifications under that subsection; and
(C)provides
written confirmation of the deletion and a copy of a consumer report on
the consumer that is based on the consumer's file after the deletion,
not later than 5 business days after making the deletion.
(b)Statement of dispute. If the
reinvestigation does not resolve the dispute, the consumer may file a
brief statement setting forth the nature of the dispute. The consumer
reporting agency may limit such statements to not more than one hundred
words if it provides the consumer with assistance in writing a clear
summary of the dispute.
(c)Notification of consumer dispute in subsequent consumer reports.
Whenever a statement of a dispute is filed, unless there is reasonable
grounds to believe that it is frivolous or irrelevant, the consumer
reporting agency shall, in any subsequent report containing the
information in question, clearly note that it is disputed by the
consumer and provide either the consumer's statement or a clear and
accurate codification or summary thereof.
(d)Notification of deletion of disputed information.
Following any deletion of information which is found to be inaccurate
or whose accuracy can no longer be verified or any notation as to
disputed information, the consumer reporting agency shall, at the
request of the consumer, furnish notification that the item has been
deleted or the statement, codification or summary pursuant to
subsection (b) or (c) of this section to any person specifically
designated by the consumer who has within two years prior thereto
received a consumer report for employment purposes, or within six
months prior thereto received a consumer report for any other purpose,
which contained the deleted or disputed information.
(e)Treatment of Complaints and Report to Congress
(1)In general. The Commission shall--
(A)compile
all complaints that it receives that a file of a consumer that is
maintained by a consumer reporting agency described in section 603(p)
contains incomplete or inaccurate information, with respect to which,
the consumer appears to have disputed the completeness or accuracy with
the consumer reporting agency or otherwise utilized the procedures
provided by subsection (a); and
(B)transmit each such complaint to each consumer reporting agency involved.
(2)Exclusion.
Complaints received or obtained by the Commission pursuant to its
investigative authority under the Federal Trade Commission Act shall
not be subject to paragraph (1).
(3)Agency responsibilities.
Each consumer reporting agency described in section 603(p) that
receives a complaint transmitted by the Commission pursuant to
paragraph (1) shall--
(A)review each such complaint to determine
whether all legal obligations imposed on the consumer reporting agency
under this title (including any obligation imposed by an applicable
court or administrative order) have been met with respect to the
subject matter of the complaint;
(B)provide
reports on a regular basis to the Commission regarding the
determinations of and actions taken by the consumer reporting agency,
if any, in connection with its review of such complaints; and
(C)maintain,
for a reasonable time period, records regarding the disposition of each
such complaint that is sufficient to demonstrate compliance with this
subsection.
(4)Rulemaking authority. The Commission may prescribe regulations, as appropriate to implement this subsection.
(5)Annual report.
The Commission shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial Services of
the House of Representatives an annual report regarding information
gathered by the Commission under this subsection.'.
(f)Reinvestigation Requirement Applicable to Resellers
(1)Exemption from general reinvestigation requirement. Except as provided in paragraph (2), a reseller shall be exempt from the requirements of this section.
(2)Action required upon receiving notice of a dispute.
If a reseller receives a notice from a consumer of a dispute concerning
the completeness or accuracy of any item of information contained in a
consumer report on such consumer produced by the reseller, the reseller
shall, within 5 business days of receiving the notice, and free of
charge-
(A)determine whether the item of information is incomplete or inaccurate as a result of an act or omission of the reseller; and
(B)if
(i) the reseller determines that the item of information is incomplete
or inaccurate as a result of an act or omission of the reseller, not
later than 20 days after receiving the notice, correct the information
in the consumer report or delete it; or (ii) if the reseller determines
that the item of information is not incomplete or inaccurate as a
result of an act or omission of the reseller, convey the notice of the
dispute, together with all relevant information provided by the
consumer, to each consumer reporting agency that provided the reseller
with the information that is the subject of the dispute, using an
address or a notification mechanism specified by the consumer reporting
agency for such notices.
(3)Responsibility of consumer reporting agency to notify consumer through reseller.
Upon the completion of a reinvestigation under this section of a
dispute concerning the completeness or accuracy of any information in
the file of a consumer by a consumer reporting agency that received
notice of the dispute from a reseller under paragraph (2)--
(A)the notice by the consumer reporting agency
under paragraph (6), (7), or (8) of subsection (a) shall be provided to
the reseller in lieu of the consumer; and
(B)the
reseller shall immediately reconvey such notice to the consumer,
including any notice of a deletion by telephone in the manner required
under paragraph (8)(A).
(4)Reseller reinvestigations.
No provision of this subsection shall be construed as prohibiting a
reseller from conducting a reinvestigation of a consumer dispute
directly.
612. Charges for certain disclosures [15 U.S.C. & 1681j]
See also 16 CFR Part 610
69 Fed. Reg. 35467 (06/24/04)
69 Fed. Reg. 35467 (06/24/04)
(a)Free Annual Disclosure
(1)Nationwide Consumer Reporting Agencies
(A)In general.
All consumer reporting agencies described in subsections (p) and (w) of
section 603 shall make all disclosures pursuant to section 609 once
during any 12-month period upon request of the consumer and without
charge to the consumer.
(B)Centralized source.
Subparagraph (A) shall apply with respect to a consumer reporting
agency described in section 603(p) only if the request from the
consumer is made using the centralized source established for such
purpose in accordance with section 211(c) of the Fair and Accurate
Credit Transactions Act of 2003.
(C)Nationwide Specialty Consumer Reporting Agency
(i)In general.
The Commission shall prescribe regulations applicable to each consumer
reporting agency described in section 603(w) to require the
establishment of a streamlined process for consumers to request
consumer reports under subparagraph (A), which shall include, at a
minimum, the establishment by each such agency of a toll-free telephone
number for such requests.
(ii)Considerations. In prescribing regulations under clause (i), the Commission shall consider-
(I)the significant demands that may be placed on consumer reporting agencies in providing such consumer reports;
(II)appropriate
means to ensure that consumer reporting agencies can satisfactorily
meet those demands, including the efficacy of a system of staggering
the availability to consumers of such consumer reports; and
(III)the
ease by which consumers should be able to contact consumer reporting
agencies with respect to access to such consumer reports.
(iii)Date of issuance.
The Commission shall issue the regulations required by this
subparagraph in final form not later than 6 months after the date of
enactment of the Fair and Accurate Credit Transactions Act of 2003.
(iv)Consideration of ability to comply.
The regulations of the Commission under this subparagraph shall
establish an effective date by which each nationwide specialty consumer
reporting agency (as defined in section 603(w)) shall be required to
comply with subsection (a), which effective date--
(I)shall be established after consideration of
the ability of each nationwide specialty consumer reporting agency to
comply with subsection (a); and
(II)shall
be not later than 6 months after the date on which such regulations are
issued in final form (or such additional period not to exceed 3 months,
as the Commission determines appropriate).
(2)Timing.
A consumer reporting agency shall provide a consumer report under
paragraph (1) not later than 15 days after the date on which the
request is received under paragraph (1).
(3)Reinvestigations.
Notwithstanding the time periods specified in section 611(a)(1), a
reinvestigation under that section by a consumer reporting agency upon
a request of a consumer that is made after receiving a consumer report
under this subsection shall be completed not later than 45 days after
the date on which the request is received.
(4)Exception for first 12 months of operation.
This subsection shall not apply to a consumer reporting agency that has
not been furnishing consumer reports to third parties on a continuing
basis during the 12-month period preceding a request under paragraph
(1), with respect to consumers residing nationwide.
(b)Free disclosure after adverse notice to consumer.
Each consumer reporting agency that maintains a file on a consumer
shall make all disclosures pursuant to section 609 [& 1681g] without
charge to the consumer if, not later than 60 days after receipt by such
consumer of a notification pursuant to section 615 [& 1681m], or of a
notification from a debt collection agency affiliated with that
consumer reporting agency stating that the consumer's credit rating may
be or has been adversely affected, the consumer makes a request under
section 609 [& 1681g].
(c)Free disclosure under certain other circumstances.
Upon the request of the consumer, a consumer reporting agency shall
make all disclosures pursuant to section 609 [& 1681g] once during any
12-month period without charge to that consumer if the consumer
certifies in writing that the consumer
(1)is unemployed and intends to apply for employment in the 60-day period beginning on the date on which the certification is made;
(2)is a recipient of public welfare assistance; or
(3)has reason to believe that the file on the consumer at the agency contains inaccurate information due to fraud.
(d)Free disclosures in connection with fraud alerts.
Upon the request of a consumer, a consumer reporting agency described
in section 603(p) shall make all disclosures pursuant to section 609
without charge to the consumer, as provided in subsections (a)(2) and
(b)(2) of section 605A, as applicable.
(e)Other charges prohibited A consumer
reporting agency shall not impose any charge on a consumer for
providing any notification required by this title or making any
disclosure required by this title, except as authorized by subsection
(f).
(f)Reasonable Charges Allowed for Certain Disclosures
(1)In general.
In the case of a request from a consumer other than a request that is
covered by any of subsections (a) through (d), a consumer reporting
agency may impose a reasonable charge on a consumer
(A)for making a disclosure to the consumer pursuant to section 609 [& 1681g], which charge
(i)shall not exceed $8;4 and
(ii)shall be indicated to the consumer before making the disclosure; and
(B)for
furnishing, pursuant to 611(d) [& 1681i], following a reinvestigation
under section 611(a) [& 1681i], a statement, codification, or summary
to a person designated by the consumer under that section after the
30-day period beginning on the date of notification of the consumer
under paragraph (6) or (8) of section 611(a) [& 1681i] with respect to
the reinvestigation, which charge
(i)shall not exceed the charge that the agency would impose on each designated recipient for a consumer report; and
(ii)shall be indicated to the consumer before furnishing such information.
(2)Modification of amount.
The Federal Trade Commission shall increase the amount referred to in
paragraph (1)(A)(i) on January 1 of each year, based proportionally on
changes in the Consumer Price Index, with fractional changes rounded to
the nearest fifty cents.
613. Public record information for employment purposes [15 U.S.C. & 1681k]
(a)In general. A consumer reporting agency
which furnishes a consumer report for employment purposes and which for
that purpose compiles and reports items of information on consumers
which are matters of public record and are likely to have an adverse
effect upon a consumer's ability to obtain employment shall
(1)at the time such public record information is
reported to the user of such consumer report, notify the consumer of
the fact that public record information is being reported by the
consumer reporting agency, together with the name and address of the
person to whom such information is being reported; or
(2)maintain
strict procedures designed to insure that whenever public record
information which is likely to have an adverse effect on a consumer's
ability to obtain employment is reported it is complete and up to date.
For purposes of this paragraph, items of public record relating to
arrests, indictments, convictions, suits, tax liens, and outstanding
judgments shall be considered up to date if the current public record
status of the item at the time of the report is reported.
(b)Exemption for national security investigations.
Subsection (a) does not apply in the case of an agency or department of
the United States Government that seeks to obtain and use a consumer
report for employment purposes, if the head of the agency or department
makes a written finding as prescribed under section 604(b)(4)(A).
614. Restrictions on investigative consumer reports [15 U.S.C. & 1681l]
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.
615. Requirements on users of consumer reports [15 U.S.C. & 1681m]
(a)Duties of users taking adverse actions on the basis of information contained in consumer reports.
If any person takes any adverse action with respect to any consumer
that is based in whole or in part on any information contained in a
consumer report, the person shall
(1)provide oral, written, or electronic notice of the adverse action to the consumer;
(2)provide to the consumer orally, in writing, or electronically
(A)the
name, address, and telephone number of the consumer reporting agency
(including a toll-free telephone number established by the agency if
the agency compiles and maintains files on consumers on a nationwide
basis) that furnished the report to the person; and
(B)a
statement that the consumer reporting agency did not make the decision
to take the adverse action and is unable to provide the consumer the
specific reasons why the adverse action was taken; and
(3)provide to the consumer an oral, written, or electronic notice of the consumer's right
(A)to
obtain, under section 612 [& 1681j], a free copy of a consumer report
on the consumer from the consumer reporting agency referred to in
paragraph (2), which notice shall include an indication of the 60-day
period under that section for obtaining such a copy; and
(B)to
dispute, under section 611 [& 1681i], with a consumer reporting agency
the accuracy or completeness of any information in a consumer report
furnished by the agency.
(b)Adverse Action Based on Information Obtained from Third Parties Other than Consumer Reporting Agencies
(1)In general.
Whenever credit for personal, family, or household purposes involving a
consumer is denied or the charge for such credit is increased either
wholly or partly because of information obtained from a person other
than a consumer reporting agency bearing upon the consumer's credit
worthiness, credit standing, credit capacity, character, general
reputation, personal characteristics, or mode of living, the user of
such information shall, within a reasonable period of time, upon the
consumer's written request for the reasons for such adverse action
received within sixty days after learning of such adverse action,
disclose the nature of the information to the consumer. The user of
such information shall clearly and accurately disclose to the consumer
his right to make such written request at the time such adverse action
is communicated to the consumer.
(2)Duties of Person Taking Certain Actions Based on Information Provided by Affiliate
(A)Duties, generally.
If a person takes an action described in subparagraph (B) with respect
to a consumer, based in whole or in part on information described in
subparagraph (C), the person shall
(i)notify the consumer of the action, including
a statement that the consumer may obtain the information in accordance
with clause (ii); and
(ii)upon a written
request from the consumer received within 60 days after transmittal of
the notice required by clause (i), disclose to the consumer the nature
of the information upon which the action is based by not later than 30
days after receipt of the request.
(B)Action described.
An action referred to in subparagraph (A) is an adverse action
described in section 603(k)(1)(A) [& 1681a], taken in connection with a
transaction initiated by the consumer, or any adverse action described
in clause (i) or (ii) of section 603(k)(1)(B) [& 1681a].
(C)Information described. Information referred to in subparagraph (A)
(i)except as provided in clause (ii), is information that
(I)is
furnished to the person taking the action by a person related by common
ownership or affiliated by common corporate control to the person
taking the action; and
(II)bears on the
credit worthiness, credit standing, credit capacity, character, general
reputation, personal characteristics, or mode of living of the
consumer; and
(ii)does not include
(I)information solely as to transactions or experiences between the consumer and the person furnishing the information; or
(II)information in a consumer report.
(c)Reasonable procedures to assure compliance.
No person shall be held liable for any violation of this section if he
shows by a preponderance of the evidence that at the time of the
alleged violation he maintained reasonable procedures to assure
compliance with the provisions of this section.
(d)Duties of Users Making Written Credit or Insurance Solicitations on the Basis of Information Contained in Consumer Files
(1)In general.
Any person who uses a consumer report on any consumer in connection
with any credit or insurance transaction that is not initiated by the
consumer, that is provided to that person under section 604(c)(1)(B) [&
1681b], shall provide with each written solicitation made to the
consumer regarding the transaction a clear and conspicuous statement
that
(A)information contained in the consumer's consumer report was used in connection with the transaction;
(B)the
consumer received the offer of credit or insurance because the consumer
satisfied the criteria for credit worthiness or insurability under
which the consumer was selected for the offer;
(C)if
applicable, the credit or insurance may not be extended if, after the
consumer responds to the offer, the consumer does not meet the criteria
used to select the consumer for the offer or any applicable criteria
bearing on credit worthiness or insurability or does not furnish any
required collateral;
(D)the consumer has a
right to prohibit information contained in the consumer's file with any
consumer reporting agency from being used in connection with any credit
or insurance transaction that is not initiated by the consumer; and
(E)the
consumer may exercise the right referred to in subparagraph (D) by
notifying a notification system established under section 604(e) [&
1681b].
(2)Disclosure of address and telephone number; format. A statement under paragraph(1) shall--
(A)include the address and toll-free telephone number of the appropriate notification system established under section 604(e); and
(B)be
presented in such format and in such type size and manner as to be
simple and easy to understand, as established by the Commission, by
rule, in consultation with the Federal banking agencies and the
National Credit Union Administration.
See also 16 CFR Part 642
16 CFR Part 698 App A
70 Fed. Reg. 5022 (01/31/05)
16 CFR Part 698 App A
70 Fed. Reg. 5022 (01/31/05)
(3)Maintaining criteria on file.
A person who makes an offer of credit or insurance to a consumer under
a credit or insurance transaction described in paragraph (1) shall
maintain on file the criteria used to select the consumer to receive
the offer, all criteria bearing on credit worthiness or insurability,
as applicable, that are the basis for determining whether or not to
extend credit or insurance pursuant to the offer, and any requirement
for the furnishing of collateral as a condition of the extension of
credit or insurance, until the expiration of the 3-year period
beginning on the date on which the offer is made to the consumer.
(4)Authority of federal agencies regarding unfair or deceptive acts or practices not affected.
This section is not intended to affect the authority of any Federal or
State agency to enforce a prohibition against unfair or deceptive acts
or practices, including the making of false or misleading statements in
connection with a credit or insurance transaction that is not initiated
by the consumer.
(e)Red Flag Guidelines and Regulations Required
(1)Guidelines.
The Federal banking agencies, the National Credit Union Administration,
and the Commission shall jointly, with respect to the entities that are
subject to their respective enforcement authority under section 621-
(A)establish and maintain guidelines for use by
each financial institution and each creditor regarding identity theft
with respect to account holders at, or customers of, such entities, and
update such guidelines as often as necessary;
(B)prescribe
regulations requiring each financial institution and each creditor to
establish reasonable policies and procedures for implementing the
guidelines established pursuant to subparagraph (A), to identify
possible risks to account holders or customers or to the safety and
soundness of the institution or customers; and
(C)prescribe
regulations applicable to card issuers to ensure that, if a card issuer
receives notification of a change of address for an existing account,
and within a short period of time (during at least the first 30 days
after such notification is received) receives a request for an
additional or replacement card for the same account, the card issuer
may not issue the additional or replacement card, unless the card
issuer, in accordance with reasonable policies and procedures-
(i)notifies the cardholder of the request at the
former address of the cardholder and provides to the cardholder a means
of promptly reporting incorrect address changes;
(ii)notifies
the cardholder of the request by such other means of communication as
the cardholder and the card issuer previously agreed to; or
(iii)uses
other means of assessing the validity of the change of address, in
accordance with reasonable policies and procedures established by the
card issuer in accordance with the regulations prescribed under
subparagraph (B).
(2)Criteria
(A)In general.
In developing the guidelines required by paragraph (1)(A), the agencies
described in paragraph (1) shall identify patterns, practices, and
specific forms of activity that indicate the possible existence of
identity theft.
(B)Inactive accounts.
In developing the guidelines required by paragraph (1)(A), the agencies
described in paragraph (1) shall consider including reasonable
guidelines providing that when a transaction occurs with respect to a
credit or deposit account that has been inactive for more than 2 years,
the creditor or financial institution shall follow reasonable policies
and procedures that provide for notice to be given to a consumer in a
manner reasonably designed to reduce the likelihood of identity theft
with respect to such account.
(3)Consistency with verification requirements.
Guidelines established pursuant to paragraph (1) shall not be
inconsistent with the policies and procedures required under section
5318(l) of title 31, United States Code.
(f)Prohibition on Sale or Transfer of Debt Caused by Identity Theft
(1)In general.
No person shall sell, transfer for consideration, or place for
collection a debt that such person has been notified under section 605B
has resulted from identity theft.
(2)Applicability.
The prohibitions of this subsection shall apply to all persons
collecting a debt described in paragraph (1) after the date of a
notification under paragraph (1).
(3)Rule of construction. Nothing in this subsection shall be construed to prohibit--
(A)the
repurchase of a debt in any case in which the assignee of the debt
requires such repurchase because the debt has resulted from identity
theft;
(B)the securitization of a debt or the pledging of a portfolio of debt as collateral in connection with a borrowing; or
(C)the
transfer of debt as a result of a merger, acquisition, purchase and
assumption transaction, or transfer of substantially all of the assets
of an entity.
(g)Debt collector communications concerning identity theft.
If a person acting as a debt collector (as that term is defined in
title VIII) on behalf of a third party that is a creditor or other user
of a consumer report is notified that any information relating to a
debt that the person is attempting to collect may be fraudulent or may
be the result of identity theft, that person shall--
(1)notify the third party that the information may be fraudulent or may be the result of identity theft; and
(2)upon
request of the consumer to whom the debt purportedly relates, provide
to the consumer all information to which the consumer would otherwise
be entitled if the consumer were not a victim of identity theft, but
wished to dispute the debt under provisions of law applicable to that
person.
(h)Duties of Users in Certain Credit Transactions
(1)In general.
Subject to rules prescribed as provided in paragraph (6), if any person
uses a consumer report in connection with an application for, or a
grant, extension, or other provision of, credit on material terms that
are materially less favorable than the most favorable terms available
to a substantial proportion of consumers from or through that person,
based in whole or in part on a consumer report, the person shall
provide an oral, written, or electronic notice to the consumer in the
form and manner required by regulations prescribed in accordance with
this subsection.
(2)Timing. The
notice required under paragraph (1) may be provided at the time of an
application for, or a grant, extension, or other provision of, credit
or the time of communication of an approval of an application for, or
grant, extension, or other provision of, credit, except as provided in
the regulations prescribed under paragraph (6).
(3)Exceptions. No notice shall be required from a person under this subsection if-
(A)the
consumer applied for specific material terms and was granted those
terms, unless those terms were initially specified by the person after
the transaction was initiated by the consumer and after the person
obtained a consumer report; or
(B)the person has provided or will provide a notice to the consumer under subsection (a) in connection with the transaction.
(4)Other notice not sufficient.
A person that is required to provide a notice under subsection (a)
cannot meet that requirement by providing a notice under this
subsection.
(5)Content and delivery of notice. A notice under this subsection shall, at a minimum-
(A)include
a statement informing the consumer that the terms offered to the
consumer are set based on information from a consumer report;
(B)identify the consumer reporting agency furnishing the report;
(C)include
a statement informing the consumer that the consumer may obtain a copy
of a consumer report from that consumer reporting agency without
charge; and
(D)include the contact
information specified by that consumer reporting agency for obtaining
such consumer reports (including a toll-free telephone number
established by the agency in the case of a consumer reporting agency
described in section 603(p)).
(6)Rulemaking
(A)Rules required. The Commission and the Board shall jointly prescribe rules.
(B)Content. Rules required by subparagraph (A) shall address, but are not limited to-
(i)the form, content, time, and manner of delivery of any notice under this subsection;
(ii)clarification
of the meaning of terms used in this subsection, including what credit
terms are material, and when credit terms are materially less favorable;
(iii)exceptions
to the notice requirement under this subsection for classes of persons
or transactions regarding which the agencies determine that notice
would not significantly benefit consumers;
(iv)a model notice that may be used to comply with this subsection; and
(v)the
timing of the notice required under paragraph (1), including the
circumstances under which the notice must be provided after the terms
offered to the consumer were set based on information from a consumer
report.
(7)Compliance.
A person shall not be liable for failure to perform the duties required
by this section if, at the time of the failure, the person maintained
reasonable policies and procedures to comply with this section.
(8)Enforcement
(A)No civil actions. Sections 616 and 617 shall not apply to any failure by any person to comply with this section.
(B)Administrative enforcement. This section shall be enforced exclusively under section 621 by the Federal agencies and officials identified in that section.
616. Civil liability for willful noncompliance [15 U.S.C. & 1681n]
(a)In general. Any person who willfully
fails to comply with any requirement imposed under this title with
respect to any consumer is liable to that consumer in an amount equal
to the sum of
(1)
(A)any actual damages
sustained by the consumer as a result of the failure or damages of not
less than $100 and not more than $1,000; or
(B)in
the case of liability of a natural person for obtaining a consumer
report under false pretenses or knowingly without a permissible
purpose, actual damages sustained by the consumer as a result of the
failure or $1,000, whichever is greater;
(2)such amount of punitive damages as the court may allow; and
(3)in
the case of any successful action to enforce any liability under this
section, the costs of the action together with reasonable attorney's
fees as determined by the court.
(b)Civil liability for knowing noncompliance.
Any person who obtains a consumer report from a consumer reporting
agency under false pretenses or knowingly without a permissible purpose
shall be liable to the consumer reporting agency for actual damages
sustained by the consumer reporting agency or $1,000, whichever is
greater.
(c)Attorney's fees. Upon a finding by the
court that an unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in bad faith or
for purposes of harassment, the court shall award to the prevailing
party attorney's fees reasonable in relation to the work expended in
responding to the pleading, motion, or other paper.
617. Civil liability for negligent noncompliance [15 U.S.C. & 1681o]
(a)In general. Any person who is negligent
in failing to comply with any requirement imposed under this title with
respect to any consumer is liable to that consumer in an amount equal
to the sum of
(1)any actual damages sustained by the consumer as a result of the failure; and
(2)in
the case of any successful action to enforce any liability under this
section, the costs of the action together with reasonable attorney's
fees as determined by the court.
(b)Attorney's fees. On a finding by the
court that an unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in bad faith or
for purposes of harassment, the court shall award to the prevailing
party attorney's fees reasonable in relation to the work expended in
responding to the pleading, motion, or other paper.
618. Jurisdiction of courts; limitation of actions [15 U.S.C. & 1681p]
An action to enforce any liability created under this title may be
brought in any appropriate United States district court, without regard
to the amount in controversy, or in any other court of competent
jurisdiction, not later than the earlier of (1) 2 years after the date
of discovery by the plaintiff of the violation that is the basis for
such liability; or (2) 5 years after the date on which the violation
that is the basis for such liability occurs.
619. Obtaining information under false pretenses [15 U.S.C. & 1681q]
Any person who knowingly and willfully obtains information on a
consumer from a consumer reporting agency under false pretenses shall
be fined under title 18, United States Code, imprisoned for not more
than 2 years, or both.
620. Unauthorized disclosures by officers or employees [15 U.S.C. & 1681r]
Any officer or employee of a consumer reporting agency who
knowingly and willfully provides information concerning an individual
from the agency's files to a person not authorized to receive that
information shall be fined under title 18, United States Code,
imprisoned for not more than 2 years, or both.
621. Administrative enforcement [15 U.S.C. & 1681s]
(a)
(1)Enforcement by Federal Trade Commission.
Compliance with the requirements imposed under this title shall be
enforced under the Federal Trade Commission Act [15 U.S.C. && 41 et
seq.] by the Federal Trade Commission with respect to consumer
reporting agencies and all other persons subject thereto, except to the
extent that enforcement of the requirements imposed under this title is
specifically committed to some other government agency under subsection
(b) hereof. For the purpose of the exercise by the Federal Trade
Commission of its functions and powers under the Federal Trade
Commission Act, a violation of any requirement or prohibition imposed
under this title shall constitute an unfair or deceptive act or
practice in commerce in violation of section 5(a) of the Federal Trade
Commission Act [15 U.S.C. & 45(a)] and shall be subject to enforcement
by the Federal Trade Commission under section 5(b) thereof [15 U.S.C. &
45(b)] with respect to any consumer reporting agency or person subject
to enforcement by the Federal Trade Commission pursuant to this
subsection, irrespective of whether that person is engaged in commerce
or meets any other jurisdictional tests in the Federal Trade Commission
Act. The Federal Trade Commission shall have such procedural,
investigative, and enforcement powers, including the power to issue
procedural rules in enforcing compliance with the requirements imposed
under this title and to require the filing of reports, the production
of documents, and the appearance of witnesses as though the applicable
terms and conditions of the Federal Trade Commission Act were part of
this title. Any person violating any of the provisions of this title
shall be subject to the penalties and entitled to the privileges and
immunities provided in the Federal Trade Commission Act as though the
applicable terms and provisions thereof were part of this title.
(2)
(A)In
the event of a knowing violation, which constitutes a pattern or
practice of violations of this title, the Commission may commence a
civil action to recover a civil penalty in a district court of the
United States against any person that violates this title. In such
action, such person shall be liable for a civil penalty of not more
than $2,500 per violation.
(B)In
determining the amount of a civil penalty under subparagraph (A), the
court shall take into account the degree of culpability, any history of
prior such conduct, ability to pay, effect on ability to continue to do
business, and such other matters as justice may require.
(3)Notwithstanding
paragraph (2), a court may not impose any civil penalty on a person for
a violation of section 623(a)(1) [& 1681s-2] unless the person has been
enjoined from committing the violation, or ordered not to commit the
violation, in an action or proceeding brought by or on behalf of the
Federal Trade Commission, and has violated the injunction or order, and
the court may not impose any civil penalty for any violation occurring
before the date of the violation of the injunction or order.
(b)Enforcement by other agencies. Compliance
with the requirements imposed under this title with respect to consumer
reporting agencies, persons who use consumer reports from such
agencies, persons who furnish information to such agencies, and users
of information that are subject to subsection (d) of section 615 [&
1681m] shall be enforced under
(1)section 8 of the Federal Deposit Insurance Act [12 U.S.C. & 1818], in the case of
(A)national banks, and Federal branches and Federal agencies of foreign banks, by the Office of the Comptroller of the Currency;
(B)member
banks of the Federal Reserve System (other than national banks),
branches and agencies of foreign banks (other than Federal branches,
Federal agencies, and insured State branches of foreign banks),
commercial lending companies owned or controlled by foreign banks, and
organizations operating under section 25 or 25A of the Federal Reserve
Act [12 U.S.C. && 601 et seq., && 611 et seq], by the Board of
Governors of the Federal Reserve System; and
(C)banks
insured by the Federal Deposit Insurance Corporation (other than
members of the Federal Reserve System) and insured State branches of
foreign banks, by the Board of Directors of the Federal Deposit
Insurance Corporation;
(2)section
8 of the Federal Deposit Insurance Act [12 U.S.C. & 1818], by the
Director of the Office of Thrift Supervision, in the case of a savings
association the deposits of which are insured by the Federal Deposit
Insurance Corporation;
(3)the Federal Credit
Union Act [12 U.S.C. && 1751 et seq.], by the Administrator of the
National Credit Union Administration [National Credit Union
Administration Board] with respect to any Federal credit union;
(4)subtitle
IV of title 49 [49 U.S.C. && 10101 et seq.], by the Secretary of
Transportation, with respect to all carriers subject to the
jurisdiction of the Surface Transportation Board;
(5)the
Federal Aviation Act of 1958 [49 U.S.C. Appx && 1301 et seq.], by the
Secretary of Transportation with respect to any air carrier or foreign
air carrier subject to that Act [49 U.S.C. Appx && 1301 et seq.]; and
(6)the
Packers and Stockyards Act, 1921 [7 U.S.C. && 181 et seq.] (except as
provided in section 406 of that Act [7 U.S.C. && 226 and 227]), by the
Secretary of Agriculture with respect to any activities subject to that
Act.
The terms used in paragraph (1) that are not defined in this
title or otherwise defined in section 3(s) of the Federal Deposit
Insurance Act (12 U.S.C. &1813(s)) shall have the meaning given to them
in section 1(b) of the International Banking Act of 1978 (12 U.S.C. &
3101).
(c)State Action for Violations
(1)Authority of states.
In addition to such other remedies as are provided under State law, if
the chief law enforcement officer of a State, or an official or agency
designated by a State, has reason to believe that any person has
violated or is violating this title, the State
(A)may bring an action to enjoin such violation
in any appropriate United States district court or in any other court
of competent jurisdiction;
(B)subject to paragraph (5), may bring an action on behalf of the residents of the State to recover
(i)damages
for which the person is liable to such residents under sections 616 and
617 [&& 1681n and 1681o] as a result of the violation;
(ii)in
the case of a violation described in any of paragraphs (1) through (3)
of section 623(c), damages for which the person would, but for section
623(c) [& 1681s-2], be liable to such residents as a result of the
violation; or
(iii)damages of not more than $1,000 for each willful or negligent violation; and
(C)in
the case of any successful action under subparagraph (A) or (B), shall
be awarded the costs of the action and reasonable attorney fees as
determined by the court.
(2)Rights of federal regulators.
The State shall serve prior written notice of any action under
paragraph (1) upon the Federal Trade Commission or the appropriate
Federal regulator determined under subsection (b) and provide the
Commission or appropriate Federal regulator with a copy of its
complaint, except in any case in which such prior notice is not
feasible, in which case the State shall serve such notice immediately
upon instituting such action. The Federal Trade Commission or
appropriate Federal regulator shall have the right
(A)to intervene in the action;
(B)upon so intervening, to be heard on all matters arising therein;
(C)to remove the action to the appropriate United States district court; and
(D)to file petitions for appeal.
(3)Investigatory powers.
For purposes of bringing any action under this subsection, nothing in
this subsection shall prevent the chief law enforcement officer, or an
official or agency designated by a State, from exercising the powers
conferred on the chief law enforcement officer or such official by the
laws of such State to conduct investigations or to administer oaths or
affirmations or to compel the attendance of witnesses or the production
of documentary and other evidence.
(4)Limitation on state action while federal action pending.
If the Federal Trade Commission or the appropriate Federal regulator
has instituted a civil action or an administrative action under section
8 of the Federal Deposit Insurance Act for a violation of this title,
no State may, during the pendency of such action, bring an action under
this section against any defendant named in the complaint of the
Commission or the appropriate Federal regulator for any violation of
this title that is alleged in that complaint.
(5)Limitations on State Actions for Certain Violations
(A)Violation of injunction required.
A State may not bring an action against a person under paragraph (1)(B)
for a violation described in any of paragraphs (1) through (3) of
section 623(c), unless
(i)the person has been enjoined from committing the violation, in an action brought by the State under paragraph (1)(A); and
(ii)the person has violated the injunction.
(B)Limitation on damages recoverable.
In an action against a person under paragraph (1)(B) for a violation
described in any of paragraphs (1) through (3) of section 623(c), a
State may not recover any damages incurred before the date of the
violation of an injunction on which the action is based.
(d)Enforcement under other authority. For
the purpose of the exercise by any agency referred to in subsection (b)
of this section of its powers under any Act referred to in that
subsection, a violation of any requirement imposed under this title
shall be deemed to be a violation of a requirement imposed under that
Act. In addition to its powers under any provision of law specifically
referred to in subsection (b) of this section, each of the agencies
referred to in that subsection may exercise, for the purpose of
enforcing compliance with any requirement imposed under this title any
other authority conferred on it by law.
(e)Regulatory authority
(1)The
Federal banking agencies referred to in paragraphs (1) and (2) of
subsection (b) shall jointly prescribe such regulations as necessary to
carry out the purposes of this Act with respect to any persons
identified under paragraphs (1) and (2) of subsection (b), and the
Board of Governors of the Federal Reserve System shall have authority
to prescribe regulations consistent with such joint regulations with
respect to bank holding companies and affiliates (other than depository
institutions and consumer reporting agencies) of such holding companies.
(2)The
Board of the National Credit Union Administration shall prescribe such
regulations as necessary to carry out the purposes of this Act with
respect to any persons identified under paragraph (3) of subsection (b).
(f)Coordination of Consumer Complaint Investigations
(1)In general.
Each consumer reporting agency described in section 603(p) shall
develop and maintain procedures for the referral to each other such
agency of any consumer complaint received by the agency alleging
identity theft, or requesting a fraud alert under section 605A or a
block under section 605B.
(2)Model form and procedure for reporting identity theft.
The Commission, in consultation with the Federal banking agencies and
the National Credit Union Administration, shall develop a model form
and model procedures to be used by consumers who are victims of
identity theft for contacting and informing creditors and consumer
reporting agencies of the fraud.
See also 70 Fed.Reg. 21792 (04/27/05)
(3)Annual summary reports.
Each consumer reporting agency described in section 603(p) shall submit
an annual summary report to the Commission on consumer complaints
received by the agency on identity theft or fraud alerts.
(g)FTC regulation of coding of trade names.
If the Commission determines that a person described in paragraph (9)
of section 623(a) has not met the requirements of such paragraph, the
Commission shall take action to ensure the person's compliance with
such paragraph, which may include issuing model guidance or prescribing
reasonable policies and procedures, as necessary to ensure that such
person complies with such paragraph.
622. Information on overdue child support obligations [15 U.S.C. & 1681s-1]
Notwithstanding any other provision of this title, a consumer
reporting agency shall include in any consumer report furnished by the
agency in accordance with section 604 [& 1681b] of this title, any
information on the failure of the consumer to pay overdue support which
(1)is provided
(A)to the consumer reporting agency by a State or local child support enforcement agency; or
(B)to the consumer reporting agency and verified by any local, State, or Federal government agency; and
(2)antedates the report by 7 years or less.
623. Responsibilities of furnishers of information to consumer reporting agencies [15 U.S.C. & 1681s-2]
(a)Duty of Furnishers of Information to Provide Accurate Information
(1)Prohibition
(A)Reporting information with actual knowledge of errors.
A person shall not furnish any information relating to a consumer to
any consumer reporting agency if the person knows or has reasonable
cause to believe that the information is inaccurate.
(B)Reporting information after notice and confirmation of errors. A person shall not furnish information relating to a consumer to any consumer reporting agency if
(i)the
person has been notified by the consumer, at the address specified by
the person for such notices, that specific information is inaccurate;
and
(ii)the information is, in fact, inaccurate.
(C)No address requirement.
A person who clearly and conspicuously specifies to the consumer an
address for notices referred to in subparagraph (B) shall not be
subject to subparagraph (A); however, nothing in subparagraph (B) shall
require a person to specify such an address.
(D)Definition.
For purposes of subparagraph (A), the term "reasonable cause to believe
that the information is inaccurate" means having specific knowledge,
other than solely allegations by the consumer, that would cause a
reasonable person to have substantial doubts about the accuracy of the
information.
(2)Duty to correct and update information. A person who
(A)regularly
and in the ordinary course of business furnishes information to one or
more consumer reporting agencies about the person's transactions or
experiences with any consumer; and
(B)has
furnished to a consumer reporting agency information that the person
determines is not complete or accurate, shall promptly notify the
consumer reporting agency of that determination and provide to the
agency any corrections to that information, or any additional
information, that is necessary to make the information provided by the
person to the agency complete and accurate, and shall not thereafter
furnish to the agency any of the information that remains not complete
or accurate.
(3)Duty to provide notice of dispute.
If the completeness or accuracy of any information furnished by any
person to any consumer reporting agency is disputed to such person by a
consumer, the person may not furnish the information to any consumer
reporting agency without notice that such information is disputed by
the consumer.
(4)Duty to provide notice of closed accounts.
A person who regularly and in the ordinary course of business furnishes
information to a consumer reporting agency regarding a consumer who has
a credit account with that person shall notify the agency of the
voluntary closure of the account by the consumer, in information
regularly furnished for the period in which the account is closed.
(5)Duty to Provide Notice of Delinquency of Accounts
(A)In general.
A person who furnishes information to a consumer reporting agency
regarding a delinquent account being placed for collection, charged to
profit or loss, or subjected to any similar action shall, not later
than 90 days after furnishing the information, notify the agency of the
date of delinquency on the account, which shall be the month and year
of the commencement of the delinquency on the account that immediately
preceded the action.
(B)Rule of construction.
For purposes of this paragraph only, and provided that the consumer
does not dispute the information, a person that furnishes information
on a delinquent account that is placed for collection, charged for
profit or loss, or subjected to any similar action, complies with this
paragraph, if-
(i)the person reports the same date of
delinquency as that provided by the creditor to which the account was
owed at the time at which the commencement of the delinquency occurred,
if the creditor previously reported that date of delinquency to a
consumer reporting agency;
(ii)the
creditor did not previously report the date of delinquency to a
consumer reporting agency, and the person establishes and follows
reasonable procedures to obtain the date of delinquency from the
creditor or another reliable source and reports that date to a consumer
reporting agency as the date of delinquency; or
(iii)the
creditor did not previously report the date of delinquency to a
consumer reporting agency and the date of delinquency cannot be
reasonably obtained as provided in clause (ii), the person establishes
and follows reasonable procedures to ensure the date reported as the
date of delinquency precedes the date on which the account is placed
for collection, charged to profit or loss, or subjected to any similar
action, and reports such date to the credit reporting agency.
(6)Duties of Furnishers Upon Notice of Identity Theft-Related Information
(A)Reasonable procedures.
A person that furnishes information to any consumer reporting agency
shall have in place reasonable procedures to respond to any
notification that it receives from a consumer reporting agency under
section 605B relating to information resulting from identity theft, to
prevent that person from refurnishing such blocked information.
(B)Information alleged to result from identity theft.
If a consumer submits an identity theft report to a person who
furnishes information to a consumer reporting agency at the address
specified by that person for receiving such reports stating that
information maintained by such person that purports to relate to the
consumer resulted from identity theft, the person may not furnish such
information that purports to relate to the consumer to any consumer
reporting agency, unless the person subsequently knows or is informed
by the consumer that the information is correct.
(7)Negative Information
(A)Notice to Consumer Required
(i)In general.
If any financial institution that extends credit and regularly and in
the ordinary course of business furnishes information to a consumer
reporting agency described in section 603(p) furnishes negative
information to such an agency regarding credit extended to a customer,
the financial institution shall provide a notice of such furnishing of
negative information, in writing, to the customer.
(ii)Notice effective for subsequent submissions.
After providing such notice, the financial institution may submit
additional negative information to a consumer reporting agency
described in section 603(p) with respect to the same transaction,
extension of credit, account, or customer without providing additional
notice to the customer.
(B)Time of Notice
(i)In general.
The notice required under subparagraph (A) shall be provided to the
customer prior to, or no later than 30 days after, furnishing the
negative information to a consumer reporting agency described in
section 603(p).
(ii)Coordination with new account disclosures.
If the notice is provided to the customer prior to furnishing the
negative information to a consumer reporting agency, the notice may not
be included in the initial disclosures provided under section 127(a) of
the Truth in Lending Act.
(C)Coordination with other disclosures- The notice required under subparagraph (A)--
(i)may be included on or with any notice of default, any billing statement, or any other materials provided to the customer; and
(ii)must be clear and conspicuous.
(D)Model Disclosure
(i)Duty of board to prepare.
The Board shall prescribe a brief model disclosure a financial
institution may use to comply with subparagraph (A), which shall not
exceed 30 words.
See also 12 CFR Part 222, App B
70 Fed. Reg. 33281 (06/15/04)
70 Fed. Reg. 33281 (06/15/04)
(ii)Use of model not required. No provision of this paragraph shall be construed as requiring a
financial institution to use any such model form prescribed by the
Board.
(iii)Compliance using model.
A financial institution shall be deemed to be in compliance with
subparagraph (A) if the financial institution uses any such model form
prescribed by the Board, or the financial institution uses any such
model form and rearranges its format.
(E)Use of notice without submitting negative information.
No provision of this paragraph shall be construed as requiring a
financial institution that has provided a customer with a notice
described in subparagraph (A) to furnish negative information about the
customer to a consumer reporting agency.
(F)Safe harbor.
A financial institution shall not be liable for failure to perform the
duties required by this paragraph if, at the time of the failure, the
financial institution maintained reasonable policies and procedures to
comply with this paragraph or the financial institution reasonably
believed that the institution is prohibited, by law, from contacting
the consumer.
(G)Definitions. For purposes of this paragraph, the following definitions shall apply:
(i)The
term "negative information" means information concerning a customer's
delinquencies, late payments, insolvency, or any form of default.
(ii)The terms "customer" and "financial institution" have the same meanings as in section 509 Public Law 106-102.
(8)Ability of Consumer to Dispute Information Directly with Furnisher
(A)In general.
The Federal banking agencies, the National Credit Union Administration,
and the Commission shall jointly prescribe regulations that shall
identify the circumstances under which a furnisher shall be required to
reinvestigate a dispute concerning the accuracy of information
contained in a consumer report on the consumer, based on a direct
request of a consumer.
(B)Considerations. In prescribing regulations under subparagraph (A), the agencies shall weigh--
(i)the benefits to consumers with the costs on furnishers and the credit reporting system;
(ii)the impact on the overall accuracy and integrity of consumer reports of any such requirements;
(iii)whether
direct contact by the consumer with the furnisher would likely result
in the most expeditious resolution of any such dispute; and
(iv)the
potential impact on the credit reporting process if credit repair
organizations, as defined in section 403(3) [15 U.S.C. &1679a(3)],
including entities that would be a credit repair organization, but for
section 403(3)(B)(i), are able to circumvent the prohibition in
subparagraph (G).
(C)Applicability.
Subparagraphs (D) through (G) shall apply in any circumstance
identified under the regulations promulgated under subparagraph (A).
(D)Submitting a notice of dispute-
A consumer who seeks to dispute the accuracy of information shall
provide a dispute notice directly to such person at the address
specified by the person for such notices that--
(i)identifies the specific information that is being disputed;
(ii)explains the basis for the dispute; and
(iii)includes all supporting documentation required by the furnisher to substantiate the basis of the dispute.
(E)Duty of person after receiving notice of dispute.
After receiving a notice of dispute from a consumer pursuant to
subparagraph (D), the person that provided the information in dispute
to a consumer reporting agency shall-
(i)conduct an investigation with respect to the disputed information;
(ii)review all relevant information provided by the consumer with the notice;
(iii)complete
such person's investigation of the dispute and report the results of
the investigation to the consumer before the expiration of the period
under section 611(a)(1) within which a consumer reporting agency would
be required to complete its action if the consumer had elected to
dispute the information under that section; and
(iv)if
the investigation finds that the information reported was inaccurate,
promptly notify each consumer reporting agency to which the person
furnished the inaccurate information of that determination and provide
to the agency any correction to that information that is necessary to
make the information provided by the person accurate.
(F)Frivolous or Irrelevant Dispute
(i)In general.
This paragraph shall not apply if the person receiving a notice of a
dispute from a consumer reasonably determines that the dispute is
frivolous or irrelevant, including--
(I)by reason of the failure of a consumer to provide sufficient information to investigate the disputed information; or
(II)the
submission by a consumer of a dispute that is substantially the same as
a dispute previously submitted by or for the consumer, either directly
to the person or through a consumer reporting agency under subsection
(b), with respect to which the person has already performed the
person's duties under this paragraph or subsection (b), as applicable.
(ii)Notice of determination.
Upon making any determination under clause (i) that a dispute is
frivolous or irrelevant, the person shall notify the consumer of such
determination not later than 5 business days after making such
determination, by mail or, if authorized by the consumer for that
purpose, by any other means available to the person.
(iii)Contents of notice. A notice under clause (ii) shall include--
(I)the reasons for the determination under clause (i); and
(II)identification
of any information required to investigate the disputed information,
which may consist of a standardized form describing the general nature
of such information.
(G)Exclusion of credit repair organizations.
This paragraph shall not apply if the notice of the dispute is
submitted by, is prepared on behalf of the consumer by, or is submitted
on a form supplied to the consumer by, a credit repair organization, as
defined in section 403(3), or an entity that would be a credit repair
organization, but for section 403(3)(B)(i).
(9)Duty to provide notice of status as medical information furnisher.
A person whose primary business is providing medical services,
products, or devices, or the person's agent or assignee, who furnishes
information to a consumer reporting agency on a consumer shall be
considered a medical information furnisher for purposes of this title,
and shall notify the agency of such status.
(b)Duties of Furnishers of Information upon Notice of Dispute
(1)In general.
After receiving notice pursuant to section 611(a)(2) [& 1681i] of a
dispute with regard to the completeness or accuracy of any information
provided by a person to a consumer reporting agency, the person shall
(A)conduct an investigation with respect to the disputed information;
(B)review all relevant information provided by the consumer reporting agency pursuant to section 611(a)(2) [& 1681i];
(C)report the results of the investigation to the consumer reporting agency;
(D)if
the investigation finds that the information is incomplete or
inaccurate, report those results to all other consumer reporting
agencies to which the person furnished the information and that compile
and maintain files on consumers on a nationwide basis; and
(E)if
an item of information disputed by a consumer is found to be inaccurate
or incomplete or cannot be verified after any reinvestigation under
paragraph (1), for purposes of reporting to a consumer reporting agency
only, as appropriate, based on the results of the reinvestigation
promptly-
(i)modify that item of information;
(ii)delete that item of information; or
(iii)permanently block the reporting of that item of information.
(2)Deadline.
A person shall complete all investigations, reviews, and reports
required under paragraph (1) regarding information provided by the
person to a consumer reporting agency, before the expiration of the
period under section 611(a)(1) [& 1681i] within which the consumer
reporting agency is required to complete actions required by that
section regarding that information.
(c)Limitation on liability. Except as provided in section 621(c)(1)(B), sections 616 and 617 do not apply to any violation of--
(1)subsection (a) of this section, including any regulations issued thereunder;
(2)subsection
(e) of this section, except that nothing in this paragraph shall limit,
expand, or otherwise affect liability under section 616 or 617, as
applicable, for violations of subsection (b) of this section; or
(3)subsection (e) of section 615.
(d)Limitation on enforcement. The provisions
of law described in paragraphs (1) through (3) of subsection (c) (other
than with respect to the exception described in paragraph (2) of
subsection (c)) shall be enforced exclusively as provided under section
621 by the Federal agencies and officials and the State officials
identified in section 621.
(e)Accuracy Guidelines and Regulations Required
(1)Guidelines.
The Federal banking agencies, the National Credit Union Administration,
and the Commission shall, with respect to the entities that are subject
to their respective enforcement authority under section 621, and in
coordination as described in paragraph (2)--
(A)establish and maintain guidelines for use by
each person that furnishes information to a consumer reporting agency
regarding the accuracy and integrity of the information relating to
consumers that such entities furnish to consumer reporting agencies,
and update such guidelines as often as necessary; and
(B)prescribe
regulations requiring each person that furnishes information to a
consumer reporting agency to establish reasonable policies and
procedures for implementing the guidelines established pursuant to
subparagraph (A).
(2)Coordination.
Each agency required to prescribe regulations under paragraph (1) shall
consult and coordinate with each other such agency so that, to the
extent possible, the regulations prescribed by each such entity are
consistent and comparable with the regulations prescribed by each other
such agency.
(3)Criteria. In developing the guidelines required by paragraph (1)(A), the agencies described in paragraph (1) shall--
(A)identify
patterns, practices, and specific forms of activity that can compromise
the accuracy and integrity of information furnished to consumer
reporting agencies;
(B)review the methods
(including technological means) used to furnish information relating to
consumers to consumer reporting agencies;
(C)determine
whether persons that furnish information to consumer reporting agencies
maintain and enforce policies to assure the accuracy and integrity of
information furnished to consumer reporting agencies; and
(D)examine
the policies and processes that persons that furnish information to
consumer reporting agencies employ to conduct reinvestigations and
correct inaccurate information relating to consumers that has been
furnished to consumer reporting agencies.
624. Affiliate sharing [15 U.S.C. & 1681s-3]
(a)Special Rule for Solicitation for Purposes of Marketing
(1)Notice.
Any person that receives from another person related to it by common
ownership or affiliated by corporate control a communication of
information that would be a consumer report, but for clauses (i), (ii),
and (iii) of section 603(d)(2)(A), may not use the information to make
a solicitation for marketing purposes to a consumer about its products
or services, unless--
(A)it is clearly and conspicuously disclosed to
the consumer that the information may be communicated among such
persons for purposes of making such solicitations to the consumer; and
(B)the
consumer is provided an opportunity and a simple method to prohibit the
making of such solicitations to the consumer by such person.
(2)Consumer Choice
(A)In general.
The notice required under paragraph (1) shall allow the consumer the
opportunity to prohibit all solicitations referred to in such
paragraph, and may allow the consumer to choose from different options
when electing to prohibit the sending of such solicitations, including
options regarding the types of entities and information covered, and
which methods of delivering solicitations the consumer elects to
prohibit.
(B)Format.
Notwithstanding subparagraph (A), the notice required under paragraph
(1) shall be clear, conspicuous, and concise, and any method provided
under paragraph (1)(B) shall be simple. The regulations prescribed to
implement this section shall provide specific guidance regarding how to
comply with such standards.
(3)Duration
(A)In general.
The election of a consumer pursuant to paragraph (1)(B) to prohibit the
making of solicitations shall be effective for at least 5 years,
beginning on the date on which the person receives the election of the
consumer, unless the consumer requests that such election be revoked.
(B)Notice upon expiration of effective period.
At such time as the election of a consumer pursuant to paragraph (1)(B)
is no longer effective, a person may not use information that the
person receives in the manner described in paragraph (1) to make any
solicitation for marketing purposes to the consumer, unless the
consumer receives a notice and an opportunity, using a simple method,
to extend the opt-out for another period of at least 5 years, pursuant
to the procedures described in paragraph (1).
(4)Scope. This section shall not apply to a person-
(A)using
information to make a solicitation for marketing purposes to a consumer
with whom the person has a pre-existing business relationship;
(B)using
information to facilitate communications to an individual for whose
benefit the person provides employee benefit or other services pursuant
to a contract with an employer related to and arising out of the
current employment relationship or status of the individual as a
participant or beneficiary of an employee benefit plan;
(C)using
information to perform services on behalf of another person related by
common ownership or affiliated by corporate control, except that this
subparagraph shall not be construed as permitting a person to send
solicitations on behalf of another person, if such other person would
not be permitted to send the solicitation on its own behalf as a result
of the election of the consumer to prohibit solicitations under
paragraph (1)(B);
(D)using information in response to a communication initiated by the consumer;
(E)using information in response to solicitations authorized or requested by the consumer; or
(F)if
compliance with this section by that person would prevent compliance by
that person with any provision of State insurance laws pertaining to
unfair discrimination in any State in which the person is lawfully
doing business.
(5)No retroactivity.
This subsection shall not prohibit the use of information to send a
solicitation to a consumer if such information was received prior to
the date on which persons are required to comply with regulations
implementing this subsection.
(b)Notice for other purposes permissible. A
notice or other disclosure under this section may be coordinated and
consolidated with any other notice required to be issued under any
other provision of law by a person that is subject to this section, and
a notice or other disclosure that is equivalent to the notice required
by subsection (a), and that is provided by a person described in
subsection (a) to a consumer together with disclosures required by any
other provision of law, shall satisfy the requirements of subsection
(a).
(c)User requirements. Requirements with
respect to the use by a person of information received from another
person related to it by common ownership or affiliated by corporate
control, such as the requirements of this section, constitute
requirements with respect to the exchange of information among persons
affiliated by common ownership or common corporate control, within the
meaning of section 625(b)(2).
(d)Definitions. For purposes of this section, the following definitions shall apply:
(1)The
term "pre-existing business relationship" means a relationship between
a person, or a person's licensed agent, and a consumer, based on--
(A)a financial contract between a person and a consumer which is in force;
(B)the
purchase, rental, or lease by the consumer of that person's goods or
services, or a financial transaction (including holding an active
account or a policy in force or having another continuing relationship)
between the consumer and that person during the 18-month period
immediately preceding the date on which the consumer is sent a
solicitation covered by this section;
(C)an
inquiry or application by the consumer regarding a product or service
offered by that person, during the 3-month period immediately preceding
the date on which the consumer is sent a solicitation covered by this
section; or
(D)any other pre-existing customer relationship defined in the regulations implementing this section.
(2)The
term "solicitation" means the marketing of a product or service
initiated by a person to a particular consumer that is based on an
exchange of information described in subsection (a), and is intended to
encourage the consumer to purchase such product or service, but does
not include communications that are directed at the general public or
determined not to be a solicitation by the regulations prescribed under
this section.
625. Relation to State laws [15 U.S.C. & 1681t]
(a)In general. Except as provided in
subsections (b) and (c), this title does not annul, alter, affect, or
exempt any person subject to the provisions of this title from
complying with the laws of any State with respect to the collection,
distribution, or use of any information on consumers, or for the
prevention or mitigation of identity theft, except to the extent that
those laws are inconsistent with any provision of this title, and then
only to the extent of the inconsistency.
(b)General exceptions. No requirement or prohibition may be imposed under the laws of any State
(1)with respect to any subject matter regulated under
(A)subsection (c) or (e) of section 604 [& 1681b], relating to the prescreening of consumer reports;
(B)section
611 [& 1681i], relating to the time by which a consumer reporting
agency must take any action, including the provision of notification to
a consumer or other person, in any procedure related to the disputed
accuracy of information in a consumer's file, except that this
subparagraph shall not apply to any State law in effect on the date of
enactment of the Consumer Credit Reporting Reform Act of 1996;
(C)subsections
(a) and (b) of section 615 [& 1681m], relating to the duties of a
person who takes any adverse action with respect to a consumer;
(D)section
615(d) [& 1681m], relating to the duties of persons who use a consumer
report of a consumer in connection with any credit or insurance
transaction that is not initiated by the consumer and that consists of
a firm offer of credit or insurance;
(E)section
605 [& 1681c], relating to information contained in consumer reports,
except that this subparagraph shall not apply to any State law in
effect on the date of enactment of the Consumer Credit Reporting Reform
Act of 1996;
(F)section 623 [& 1681s-2],
relating to the responsibilities of persons who furnish information to
consumer reporting agencies, except that this paragraph shall not apply
(i)with respect to section 54A(a) of chapter 93
of the Massachusetts Annotated Laws (as in effect on the date of
enactment of the Consumer Credit Reporting Reform Act of 1996); or
(ii)with
respect to section 1785.25(a) of the California Civil Code (as in
effect on the date of enactment of the Consumer Credit Reporting Reform
Act of 1996);
(G)section 609(e), relating to information available to victims under section 609(e);
(H)section 624, relating to the exchange and use of information to make a solicitation for marketing purposes; or
(I)section
615(h), relating to the duties of users of consumer reports to provide
notice with respect to terms in certain credit transactions;
(2)with
respect to the exchange of information among persons affiliated by
common ownership or common corporate control, except that this
paragraph shall not apply with respect to subsection (a) or (c)(1) of
section 2480e of title 9, Vermont Statutes Annotated (as in effect on
the date of enactment of the Consumer Credit Reporting Reform Act of
1996);
(3)with respect to the disclosures
required to be made under subsection (c), (d), (e), or (g) of section
609, or subsection (f) of section 609 relating to the disclosure of
credit scores for credit granting purposes, except that this
paragraph--
(A)shall not apply with respect to sections
1785.10, 1785.16, and 1785.20.2 of the California Civil Code (as in
effect on the date of enactment of the Fair and Accurate Credit
Transactions Act of 2003) and section 1785.15 through section 1785.15.2
of such Code (as in effect on such date);
(B)shall
not apply with respect to sections 5-3-106(2) and 212-14.3-104.3 of the
Colorado Revised Statutes (as in effect on the date of enactment of the
Fair and Accurate Credit Transactions Act of 2003); and
(C)shall
not be construed as limiting, annulling, affecting, or superseding any
provision of the laws of any State regulating the use in an insurance
activity, or regulating disclosures concerning such use, of a
credit-based insurance score of a consumer by any person engaged in the
business of insurance;
(4)with respect to the frequency of any disclosure under section 612(a), except that this paragraph shall not apply-
(A)with
respect to section 12-14.3-105(1)(d) of the Colorado Revised Statutes
(as in effect on the date of enactment of the Fair and Accurate Credit
Transactions Act of 2003);
(B)with respect
to section 10-1-393(29)(C) of the Georgia Code (as in effect on the
date of enactment of the Fair and Accurate Credit Transactions Act of
2003);
(C)with respect to section 1316.2 of
title 10 of the Maine Revised Statutes (as in effect on the date of
enactment of the Fair and Accurate Credit Transactions Act of 2003);
(D)with
respect to sections 14-1209(a)(1) and 14-1209(b)(1)(i) of the
Commercial Law Article of the Code of Maryland (as in effect on the
date of enactment of the Fair and Accurate Credit Transactions Act of
2003);
(E)with respect to section 59(d) and
section 59(e) of chapter 93 of the General Laws of Massachusetts (as in
effect on the date of enactment of the Fair and Accurate Credit
Transactions Act of 2003);
(F)with respect
to section 56:11-37.10(a)(1) of the New Jersey Revised Statutes (as in
effect on the date of enactment of the Fair and Accurate Credit
Transactions Act of 2003); or
(G)with
respect to section 2480c(a)(1) of title 9 of the Vermont Statutes
Annotated (as in effect on the date of enactment of the Fair and
Accurate Credit Transactions Act of 2003); or
(5)with respect to the conduct required by the specific provisions of--
(A)section 605(g);
(B)section 605A;
(C)section 605B;
(D)section 609(a)(1)(A);
(E)section 612(a);
(F)subsections (e), (f), and (g) of section 615;
(G)section 621(f);
(H)section 623(a)(6); or
(I)section 628.
(c)Definition of firm offer of credit or insurance.
Notwithstanding any definition of the term "firm offer of credit or
insurance" (or any equivalent term) under the laws of any State, the
definition of that term contained in section 603(l) [& 1681a] shall be
construed to apply in the enforcement and interpretation of the laws of
any State governing consumer reports.
(d)Limitations. Subsections (b) and (c) do
not affect any settlement, agreement, or consent judgment between any
State Attorney General and any consumer reporting agency in effect on
the date of enactment of the Consumer Credit Reporting Reform Act of
1996.
626. Disclosures to FBI for counterintelligence purposes [15 U.S.C. & 1681u]
(a)Identity of financial institutions.
Notwithstanding section 604 [& 1681b] or any other provision of this
title, a consumer reporting agency shall furnish to the Federal Bureau
of Investigation the names and addresses of all financial institutions
(as that term is defined in section 1101 of the Right to Financial
Privacy Act of 1978 [12 U.S.C. & 3401]) at which a consumer maintains
or has maintained an account, to the extent that information is in the
files of the agency, when presented with a written request for that
information, signed by the Director of the Federal Bureau of
Investigation, or the Director's designee in a position not lower than
Deputy Assistant Director at Bureau headquarters or a Special Agent in
Charge of a Bureau field office designated by the Director, which
certifies compliance with this section. The Director or the Director's
designee may make such a certification only if the Director or the
Director's designee has determined in writing, that such information is
sought for the conduct of an authorized investigation to protect
against international terrorism or clandestine intelligence activities,
provided that such an investigation of a United States person is not
conducted solely upon the basis of activities protected by the first
amendment to the Constitution of the United States.
(b)Identifying information. Notwithstanding
the provisions of section 604 [& 1681b] or any other provision of this
title, a consumer reporting agency shall furnish identifying
information respecting a consumer, limited to name, address, former
addresses, places of employment, or former places of employment, to the
Federal Bureau of Investigation when presented with a written request,
signed by the Director or the Director's designee, which certifies
compliance with this subsection. The Director or the Director's
designee in a position not lower than Deputy Assistant Director at
Bureau headquarters or a Special Agent in Charge of a Bureau field
office designated by the Director may make such a certification only if
the Director or the Director's designee has determined in writing that
such information is sought for the conduct of an authorized
investigation to protect against international terrorism or clandestine
intelligence activities, provided that such an investigation of a
United States person is not conducted solely upon the basis of
activities protected by the first amendment to the Constitution of the
United States.
(c)Court order for disclosure of consumer reports.
Notwithstanding section 604 [& 1681b] or any other provision of this
title, if requested in writing by the Director of the Federal Bureau of
Investigation, or a designee of the Director in a position not lower
than Deputy Assistant Director at Bureau headquarters or a Special
Agent in Charge of a Bureau field office designated by the Director, a
court may issue an order ex parte directing a consumer reporting agency
to furnish a consumer report to the Federal Bureau of Investigation,
upon a showing in camera that the consumer report is sought for the
conduct of an authorized investigation to protect against international
terrorism or clandestine intelligence activities, provided that such an
investigation of a United States person is not conducted solely upon
the basis of activities protected by the first amendment to the
Constitution of the United States. The terms of an order issued under
this subsection shall not disclose that the order is issued for
purposes of a counterintelligence investigation.
(d)Confidentiality. No consumer reporting
agency or officer, employee, or agent of a consumer reporting agency
shall disclose to any person, other than those officers, employees, or
agents of a consumer reporting agency necessary to fulfill the
requirement to disclose information to the Federal Bureau of
Investigation under this section, 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), and no consumer reporting agency or
officer, employee, or agent of a consumer reporting agency shall
include in any consumer report any information that would indicate that
the Federal Bureau of Investigation has sought or obtained such
information or a consumer report.
(e)Payment of fees. The Federal Bureau of
Investigation shall, subject to the availability of appropriations, pay
to the consumer reporting agency assembling or providing report or
information in accordance with procedures established under this
section a fee for reimbursement for such costs as are reasonably
necessary and which have been directly incurred in searching,
reproducing, or transporting books, papers, records, or other data
required or requested to be produced under this section.
(f)Limit on dissemination. The Federal
Bureau of Investigation may not disseminate information obtained
pursuant to this section outside of the Federal Bureau of
Investigation, except to other Federal agencies as may be necessary for
the approval or conduct of a foreign counterintelligence investigation,
or, where the information concerns a person subject to the Uniform Code
of Military Justice, to appropriate investigative authorities within
the military department concerned as may be necessary for the conduct
of a joint foreign counterintelligence investigation.
(g)Rules of construction. Nothing in this
section shall be construed to prohibit information from being furnished
by the Federal Bureau of Investigation pursuant to a subpoena or court
order, in connection with a judicial or administrative proceeding to
enforce the provisions of this Act. Nothing in this section shall be
construed to authorize or permit the withholding of information from
the Congress.
(h)Reports to Congress. 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).
(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 title, 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 title, 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 title, 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.
627. Disclosures to governmental agencies for counterterrorism purposes [15 U.S.C. &1681v]
(a)Disclosure. Notwithstanding section 604
or any other provision of this title, a consumer reporting agency shall
furnish a consumer report of a consumer and all other information in a
consumer's file to a government agency authorized to conduct
investigations of, or intelligence or counterintelligence activities or
analysis related to, international terrorism when presented with a
written certification by such government agency that such information
is necessary for the agency's conduct or such investigation, activity
or analysis.
(b)Form of certification. The certification
described in subsection (a) shall be signed by a supervisory official
designated by the head of a Federal agency or an officer of a Federal
agency whose appointment to office is required to be made by the
President, by and with the advice and consent of the Senate.
(c)Confidentiality. No consumer reporting
agency, or officer, employee, or agent of such consumer reporting
agency, shall disclose to any person, or specify in any consumer
report, that a government agency has sought or obtained access to
information under subsection (a).
(d)Rule of construction. Nothing in section
626 shall be construed to limit the authority of the Director of the
Federal Bureau of Investigation under this section.
(e)Safe harbor. Notwithstanding any other
provision of this title, 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 governmental 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.
628. Disposal of records [15 U.S.C. &1681w]
See also 16 CFR Part 682
(a)Regulations 69 Fed. Reg. 68690 (11/24/04)
(1)In general.
Not later than 1 year after the date of enactment of this section, the
Federal banking agencies, the National Credit Union Administration, and
the Commission with respect to the entities that are subject to their
respective enforcement authority under section 621, and the Securities
and Exchange Commission, and in coordination as described in paragraph
(2), shall issue final regulations requiring any person that maintains
or otherwise possesses consumer information, or any compilation of
consumer information, derived from consumer reports for a business
purpose to properly dispose of any such information or compilation.
(2)Coordination. Each agency required to prescribe regulations under paragraph (1) shall-
(A)consult
and coordinate with each other such agency so that, to the extent
possible, the regulations prescribed by each such agency are consistent
and comparable with the regulations by each such other agency; and
(B)ensure
that such regulations are consistent with the requirements and
regulations issued pursuant to Public Law 106-102 and other provisions
of Federal law.
(3)Exemption authority.
In issuing regulations under this section, the Federal banking
agencies, the National Credit Union Administration, the Commission, and
the Securities and Exchange Commission may exempt any person or class
of persons from application of those regulations, as such agency deems
appropriate to carry out the purpose of this section.
(b)Rule of construction. Nothing in this section shall be construed--
(1)to require a person to maintain or destroy any record pertaining to a consumer that is not imposed under other law; or
(2)to alter or affect any requirement imposed under any other provision of law to maintain or destroy such a record.
629. Corporate and technological circumvention prohibited [15 U.S.C. &1681x]
The Commission shall prescribe regulations, to become effective
not later than 90 days after the date of enactment of this section, to
prevent a consumer reporting agency from circumventing or evading
treatment as a consumer reporting agency described in section 603(p)
for purposes of this title, including--
(1)by means of a corporate reorganization or
restructuring, including a merger, acquisition, dissolution,
divestiture, or asset sale of a consumer reporting agency; or
(2)by
maintaining or merging public record and credit account information in
a manner that is substantially equivalent to that described in
paragraphs (1) and (2) of section 603(p), in the manner described in
section 603(p).
See also 16 CFR Part 611
69 Fed. Reg. 8531 (02/24/04)
69 Fed. Reg. 29061 (05/20/04)
69 Fed. Reg. 8531 (02/24/04)
69 Fed. Reg. 29061 (05/20/04)
Legislative History
House Reports:No. 91-975 (Comm. on Banking and Currency) and
No. 91-1587 (Comm. of Conference)
Senate Reports:No. 91-1139 accompanying S. 3678 (Comm. on Banking and Currency)
Congressional Record, Vol. 116 (1970)
May 25, considered and passed House.
Sept. 18, considered and passed Senate, amended.
Oct. 9, Senate agreed to conference report.
Oct. 13, House agreed to conference report.
Enactment: Public Law No. 91-508 (October 26, 1970):
Amendments:95-473 (October 17, 1978) Public Law Nos.
95-598 (November 6, 1978)
98-443 (October 4, 1984)
101-73 (August 9, 1989)
102-242 (December 19, 1991)
102-537 (October 27, 1992)
102-550 (October 28, 1992)
103-325 (September 23, 1994)
104-88 (December 29, 1995)
104-93 (January 6, 1996)
104-193 (August 22, 1996)
104-208 (September 30, 1996)
105-107 (November 20, 1997)
105-347 (November 2, 1998)
106-102 (November 12, 1999)
107-56 (October 26, 2001)
108-159 (December 4, 2003)
109-351 (October 13, 2006)
1 The references in Sections 604(b)(3)(A) and 604(b)(3)(B) should be to Section 609(c)(1), not (c)(3) that no longer exists as the result of Congress' re-organization of Section 609(c) in 2003 (FACT Act).
2 The reporting periods have been lengthened for certain adverse information pertaining to U.S. Government insured or guaranteed student loans, or pertaining to national direct student loans. See sections 430A(f) and 463(c)(3) of the Higher Education Act of 1965, 20 U.S.C. 1080a(f) and 20 U.S.C. 1087cc(c)(3), respectively.
3 This provision, added in September 1996, should read "paragraphs (4) and (5)...." Prior Section 605(a)(6) was amended and re-designated as Section 605(a)(5) in November 1998. The current Section 605(a)(6), added in December 2003 and now containing no reference to any 7-year period, is obviously inapplicable.
4 Pursuant to Section 612(f)(2), the Federal Trade Commission increased the maximum allowable charge to $10, effective January 1, 2006. See 70 Fed. Reg. 74816 (Dec. 16, 2005).
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