This is a copy of the Fair Credit Reporting Act as posted on the website of the Federal Trade Commission. ¹ However, this copy has anchors and links on it to facilitate moving within the law. We hope you find it useful.

 

THE FAIR CREDIT REPORTING ACT (FCRA) [15 U.S.C. § 1681]

 

 

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. (top of page)

 

§ 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 Report

        (1) In general. The term "consumer report" means any written, oral, or other

        communication of any information by a consumer reporting agency bearing on a

        consumer's credit worthiness, credit standing, credit capacity, character, general

        reputation, personal characteristics, or mode of living which is used or expected to be

        used or collected in whole or in part for the purpose of serving as a factor in

        establishing the consumer's eligibility for

 

                (A) credit or insurance to be used primarily for personal, family, or household purposes;

 

                (B) employment purposes; or

 

                (C) any other purpose authorized under section 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).1

       

        (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 Bureau 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

        Bureau may prescribe, by regulation.

 

        (4) The term "identity theft report" has the meaning given that term by rule of the Bureau,

        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 Bureau; and

 

                (C) the filing of which subjects the person filing the report to criminal penalties

                relating to the filing of false information if, in fact, the information in the

                report is false.

 

        (5) 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 "Bureau" means the Bureau of Consumer Financial Protection.

 

(x) 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.

 

(y) 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. (top of page)

 

§ 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.

 

                (G) executive departments and agencies in connection with the issuance of

                government-sponsored individually-billed travel charge cards.

 

        (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 Bureau 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 Bureau under section 609(c)(3).

 

                (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 Bureau 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);

 

                        (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; and

 

                        (iv) the consumer report does not contain a date of birth that shows that the consumer

                        has not attained the age of 21, or, if the date of birth on the consumer

                        report shows that the consumer has not attained the age of 21, such consumer

                        consents to the consumer reporting agency to such furnishing.

 

        (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, by the Bureau 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. The Bureau may, 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.

 

        (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. (top of page)

 

§ 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.5

 

        (5) Any other adverse item of information, other than records of convictions of crimes

        which antedates the report by more than seven years.5

 

        (6) The name, address, and telephone number of any medical information furnisher that

        has notified the agency of its status, unless--

 

                (A) such name, address, and telephone number are restricted or reported using

                codes that do not identify, or provide information sufficient to infer, the

                specific provider or the nature of such services, products, or devices to a

                person other than the consumer; or

 

                (B) the report is being provided to an insurance company for a purpose relating to

                engaging in the business of insurance other than property and casualty insurance.

 

(b) Exempted cases. The provisions of paragraphs (1) through (5) of subsection (a) of this

section are not applicable in the case of any consumer credit report to be used in connection

with

 

        (1) a credit transaction involving, or which may reasonably be expected to involve, a

        principal amount of $150,000 or more;

 

        (2) the underwriting of life insurance involving, or which may reasonably be expected to

        involve, a face amount of $150,000 or more; or

 

        (3) the employment of any individual at an annual salary which equals, or which may

        reasonably be expected to equal $75,000, or more.

 

(c) Running of Reporting Period

 

        (1) In general. The 7-year period referred to in paragraphs (4) and (6) of subsection (a)

        shall begin, with respect to any delinquent account that is placed for collection (internally

        or by referral to a third party, whichever is earlier), charged to profit and loss, or

        subjected to any similar action, upon the expiration of the 180-day period beginning on

        the date of the commencement of the delinquency which immediately preceded the

        collection activity, charge to profit and loss, or similar action.

 

        (2) Effective date. Paragraph (1) shall apply only to items of information added to the file

        of a consumer on or after the date that is 455 days after the date of enactment of the

        Consumer Credit Reporting Reform Act of 1996.

 

(d) Information Required to be Disclosed

 

        (1) Title 11 information. Any consumer reporting agency that furnishes a consumer

        report that contains information regarding any case involving the consumer that arises

        under title 11, United States Code, shall include in the report an identification of the

        chapter of such title 11 under which such case arises if provided by the source of the

        information. If any case arising or filed under title 11, United States Code, is

        withdrawn by the consumer before a final judgment, the consumer reporting agency

        shall include in the report that such case or filing was withdrawn upon receipt of

        documentation certifying such withdrawal.

 

        (2) Key factor in credit score information. Any consumer reporting agency that furnishes

        a consumer report that contains any credit score or any other risk score or predictor on

        any consumer shall include in the report a clear and conspicuous statement that a key

        factor (as defined in section 609(f)(2)(B)) that adversely affected such score or

        predictor was the number of enquiries, if such a predictor was in fact a key factor that

        adversely affected such score. This paragraph shall not apply to a check services

        company, acting as such, which issues authorizations for the purpose of approving or

        processing negotiable instruments, electronic fund transfers, or similar methods of

        payments, but only to the extent that such company is engaged in such activities.

 

(e) Indication of closure of account by consumer. If a consumer reporting agency is notified

pursuant to section 623(a)(4) [§ 1681s-2] that a credit account of a consumer was

voluntarily closed by the consumer, the agency shall indicate that fact in any consumer

report that includes information related to the account.

 

(f) Indication of dispute by consumer. If a consumer reporting agency is notified pursuant to

section 623(a)(3) [§ 1681s-2] that information regarding a consumer who was furnished

to the agency is disputed by the consumer, the agency shall indicate that fact in each

consumer report that includes the disputed information.

 

(g) Truncation of Credit Card and Debit Card Numbers

 

        (1) In general. Except as otherwise provided in this subsection, no person that accepts

        credit cards or debit cards for the transaction of business shall print more than the last

        5 digits of the card number or the expiration date upon any receipt provided to the

        cardholder at the point of the sale or transaction.

 

        (2) Limitation. This subsection shall apply only to receipts that are electronically printed,

        and shall not apply to transactions in which the sole means of recording a credit card

        or debit card account number is by handwriting or by an imprint or copy of the card.

 

        (3) Effective date. This subsection shall become effective –

 

                (A) 3 years after the date of enactment of this subsection, with respect to any cash

                register or other machine or device that electronically prints receipts for credit

                card or debit card transactions that is in use before January 1, 2005; and

       

                (B) 1 year after the date of enactment of this subsection, with respect to any cash register

        or other machine or device that electronically prints receipts for credit card

        or debit card transactions that is first put into use on or after January 1, 2005.

 

(h) Notice of Discrepancy in Address

 

        (1) In general. If a person has requested a consumer report relating to a consumer from a

        consumer reporting agency described in section 603(p), the request includes an address

        for the consumer that substantially differs from the addresses in the file of the consumer,

        and the agency provides a consumer report in response to the request, the consumer

        reporting agency shall notify the requester of the existence of the discrepancy.

 

        (2) Regulations

 

                (A) Regulations required. The Bureau shall, in consultation with the Federal banking

                agencies, the National Credit Union Administration, and the Federal Trade

                Commission, 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. (top of page)

 

§ 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 Bureau 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).

 

(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 Bureau 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. (top of page)

 

§ 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 Bureau 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. (top of page)

 

§ 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. (top of page)

 

§ 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.

 

        (2) Content of notice. The Bureau 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 Bureau

        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. (top of page)

 

§ 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. (top of page)

 

§ 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

 

        (1) Bureau Summary of Rights Required

 

                (A) In general. The Bureau 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 Bureau 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 Bureau prescribed under section

                        612(a)(1)(C).

 

                (C) Availability of summary of rights. The Bureau 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 Bureau 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

 

        (1) In general. The Bureau, 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 Bureau 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 Bureau under paragraph (1), and

        information on how to contact the Bureau 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 Bureau; 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 Bureau, for providing the information

        required under this subsection. See also 69 Fed. Reg. 64698 (11/08/04)

 

        (9) Use of enquiries as a key factor. If a key factor that adversely affects the credit score

        of a consumer consists of the number of enquiries made with respect to a consumer

        report, that factor shall be included in the disclosure pursuant to paragraph (1)(C)

        without regard to the numerical limitation in such paragraph.

 

(g) Disclosure of Credit Scores by Certain Mortgage Lenders

 

        (1) In general. Any person who makes or arranges loans and who uses a consumer credit

        score, as defined in subsection (f), in connection with an application initiated or

        sought by a consumer for a closed end loan or the establishment of an open end loan

        for a consumer purpose that is secured by 1 to 4 units of residential real property

        (hereafter in this subsection referred to as the "lender") shall provide the following to

        the consumer as soon as reasonably practicable:

 

                (A) Information Required under Subsection (f)

 

                        (i) In general. A copy of the information identified in subsection (f) that was

                        obtained from a consumer reporting agency or was developed and used by

                        the user of the information.

 

                        (ii) Notice under subparagraph (D). In addition to the information provided

                        to it by a third party that provided the credit score or scores, a lender is

                        only required to provide the notice contained in subparagraph (D).

 

                (B) Disclosures in Case of Automated Underwriting System

 

                        (i) In general. If a person that is subject to this subsection uses an automated

                        underwriting system to underwrite a loan, that person may satisfy the obligation

                        to provide a credit score by disclosing a credit score and associated

                        key factors supplied by a consumer reporting agency.

 

                        (ii) Numerical credit score. However, if a numerical credit score is generated

                        by an automated underwriting system used by an enterprise, and that score

                        is disclosed to the person, the score shall be disclosed to the consumer

                        consistent with subparagraph (c).

 

                        (iii) Enterprise defined. For purposes of this subparagraph, the term "enterprise"

                        has the same meaning as in paragraph (6) of section 1303 of the

                        Federal Housing Enterprises Financial Safety and Soundness Act of 1992.

 

                (C) Disclosures of credit scores not obtained from a consumer reporting agency.

                A person that is subject to the provisions of this subsection and that uses a

                credit score, other than a credit score provided by a consumer reporting

                agency, may satisfy the obligation to provide a credit score by disclosing a

                credit score and associated key factors supplied by a consumer reporting

                agency.

 

                (D) Notice to home loan applicants. A copy of the following notice, which shall

                include the name, address, and telephone number of each consumer reporting

                agency providing a credit score that was used:

 

        "Notice To The Home Loan Applicant

 

        "In connection with your application for a home loan, the lender must disclose to you

the score that a consumer reporting agency distributed to users and the lender used in

connection with your home loan, and the key factors affecting your credit scores.

 

        "The credit score is a computer generated summary calculated at the time of the

request and based on information that a consumer reporting agency or lender has on file.

The scores are based on data about your credit history and payment patterns. Credit

scores are important because they are used to assist the lender in determining whether

you will obtain a loan. They may also be used to determine what interest rate you may be

offered on the mortgage. Credit scores can change over time, depending on your conduct,

how your credit history and payment patterns change, and how credit scoring

technologies change.

 

        "Because the score is based on information in your credit history, it is very important

that you review the credit-related information that is being furnished to make sure it is

accurate. Credit records may vary from one company to another.

 

        "If you have questions about your credit score or the credit information that is

furnished to you, contact the consumer reporting agency at the address and telephone

number provided with this notice, or contact the lender, if the lender developed or

generated the credit score. The consumer reporting agency plays no part in the decision

to take any action on the loan application and is unable to provide you with specific

reasons for the decision on a loan application.

 

        "If you have questions concerning the terms of the loan, contact the lender."

 

 

                (E) Actions not required under this subsection. This subsection shall not require

                any person to –

 

                        (i) explain the information provided pursuant to subsection (f);

 

                        (ii) disclose any information other than a credit score or key factors, as defined

                        in subsection (f);

 

                        (iii) disclose any credit score or related information obtained by the user after

                        a loan has closed;

 

                        (iv) provide more than 1 disclosure per loan transaction; or

 

                        (v) provide the disclosure required by this subsection when another person

                        has made the disclosure to the consumer for that loan transaction.

 

                (F) No Obligation for Content

 

                        (i) In general. The obligation of any person pursuant to this subsection shall

                        be limited solely to providing a copy of the information that was received

                        from the consumer reporting agency.

 

                        (ii) Limit on liability. No person has liability under this subsection for the

                        content of that information or for the omission of any information within

                        the report provided by the consumer reporting agency.

 

                (G) Person defined as excluding enterprise. As used in this subsection, the term

                "person" does not include an enterprise (as defined in paragraph (6) of section

                1303 of the Federal Housing Enterprises Financial Safety and Soundness Act

                of 1992).

 

        (2) Prohibition on Disclosure Clauses Null and Void

 

                (A) In general. Any provision in a contract that prohibits the disclosure of a

                credit score by a person who makes or arranges loans or a consumer reporting

                agency is void.

 

                (B) No liability for disclosure under this subsection. A lender shall not have liability

                under any contractual provision for disclosure of a credit score pursuant

                to this subsection. (top of page)

 

§ 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. (top of page)

 

§ 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 Bureau 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 Bureau pursuant to its

        investigative authority under the Consumer Financial Protection Act of 2010 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 Bureau 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 Bureau 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 Bureau may prescribe regulations, as appropriate to

        implement this subsection.

 

        (5) Annual report. The Bureau 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 Bureau 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)    (i) if 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. (top of page)

 

§ 612. Charges for certain disclosures [15 U.S.C. § 1681j]

 

(a) Free Annual Disclosure 75 Fed. Reg. 9726 (03/03/10)

 

        (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 Bureau 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 Bureau

                        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 Bureau 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 Bureau 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 Bureau determines appropriate).

 

        (2) Timing. A consumer reporting agency shall provide a consumer report under paragraph(1)

        not later than 15 days after the date on which the request is received under paragraph (1).

 

        (3) Reinvestigations. Notwithstanding the time periods specified in section 611(a)(1), a

        reinvestigation under that section by a consumer reporting agency upon a request of a

        consumer that is made after receiving a consumer report under this subsection shall

        be completed not later than 45 days after the date on which the request is received.

 

        (4) Exception for first 12 months of operation. This subsection shall not apply to a

        consumer reporting agency that has not been furnishing consumer reports to third

        parties on a continuing basis during the 12-month period preceding a request under

        paragraph (1), with respect to consumers residing nationwide.

 

(b) Free disclosure after adverse notice to consumer. Each consumer reporting agency that

maintains a file on a consumer shall make all disclosures pursuant to section 609

[§ 1681g] without charge to the consumer if, not later than 60 days after receipt by such

consumer of a notification pursuant to section 615 [§ 1681m], or of a notification from a

debt collection agency affiliated with that consumer reporting agency stating that the

consumer's credit rating may be or has been adversely affected, the consumer makes a

request under section 609 [§ 1681g].

 

(c) Free disclosure under certain other circumstances. Upon the request of the consumer, a

consumer reporting agency shall make all disclosures pursuant to section 609 [§ 1681g]

once during any 12-month period without charge to that consumer if the consumer

certifies in writing that the consumer

 

        (1) is unemployed and intends to apply for employment in the 60-day period beginning

        on the date on which the certification is made;

 

        (2) is a recipient of public welfare assistance; or

 

        (3) has reason to believe that the file on the consumer at the agency contains inaccurate

        information due to fraud.

 

(d) Free disclosures in connection with fraud alerts. Upon the request of a consumer, a consumer

reporting agency described in section 603(p) shall make all disclosures pursuant to

section 609 without charge to the consumer, as provided in subsections (a)(2) and (b)(2)

of section 605A, as applicable.

 

(e) Other charges prohibited. A consumer reporting agency shall not impose any charge on

a consumer for providing any notification required by this title or making any disclosure

required by this title, except as authorized by subsection (f).

 

(f) Reasonable Charges Allowed for Certain Disclosures

 

        (1) In general. In the case of a request from a consumer other than a request that is covered

        by any of subsections (a) through (d), a consumer reporting agency may impose

        a reasonable charge on a consumer

 

                (A) for making a disclosure to the consumer pursuant to section 609 [§ 1681g],

                which charge

 

                        (i) shall not exceed $8; and

 

                        (ii) shall be indicated to the consumer before making the disclosure; and

 

                (B) for furnishing, pursuant to 611(d) [§ 1681i], following a reinvestigation under

                section 611(a) [§ 1681i], a statement, codification, or summary to a person

                designated by the consumer under that section after the 30-day period beginning

                on the date of notification of the consumer under paragraph (6) or (8) of

                section 611(a) [§ 1681i] with respect to the reinvestigation, which charge

 

                        (i) shall not exceed the charge that the agency would impose on each

                        designated recipient for a consumer report; and

 

                        (ii) shall be indicated to the consumer before furnishing such information.

 

        (2) Modification of amount. The Bureau 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.8

 

(g) Prevention of Deceptive Marketing of Credit Reports

 

        (1) In general. Subject to rulemaking pursuant to section 205(b) of the Credit CARD Act of

        2009, any advertisement for a free credit report in any medium shall prominently disclose

        in such advertisement that free credit reports are available under Federal law at

        AnnualCreditReport.com (or such other source as may be authorized under Federal law).

 

        (2) Television and radio advertisement. In the case of an advertisement broadcast by

        television, the disclosures required under paragraph (1) shall be included in the audio

        and visual part of such advertisement. In the case of an advertisement broadcast by

        television or radio, the disclosure required under paragraph (1) shall consist only of

        the following: "This is not the free credit report provided for by Federal law.'' (top of page)

 

§ 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. (top of page)

 

§ 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 written or electronic disclosure

 

                (A) of a numerical credit score as defined in section 609(f)(2)(A) used by such person

                in taking any adverse action based in whole or in part on any information

                in a consumer report; and

 

                (B) of the information set forth in subparagraphs (B) through (E) of section

                609(f)(1);

 

        (3) 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

 

        (4) 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 (3),

                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 Bureau, by rule, in consultation

                with the Federal Trade Commission, Federal banking agencies and the

                National Credit Union Administration.

 

        (3) Maintaining criteria on file. A person who makes an offer of credit or insurance to a

        consumer under a credit or insurance transaction described in paragraph (1) shall

        maintain on file the criteria used to select the consumer to receive the offer, all criteria

        bearing on credit worthiness or insurability, as applicable, that are the basis for

        determining whether or not to extend credit or insurance pursuant to the offer, and

        any requirement for the furnishing of collateral as a condition of the extension of

        credit or insurance, until the expiration of the 3-year period beginning on the date on

        which the offer is made to the consumer.

 

        (4) Authority of federal agencies regarding unfair or deceptive acts or practices not

        affected. This section is not intended to affect the authority of any Federal or State

        agency to enforce a prohibition against unfair or deceptive acts or practices, including

        the making of false or misleading statements in connection with a credit or insurance

        transaction that is not initiated by the consumer.

 

(e) Red Flag Guidelines and Regulations Required

 

        (1) Guidelines. The Federal banking agencies, the National Credit Union Administration,

        the Federal Trade Commission, the Commodity Futures Trading Commission, and the

        Securities and Exchange 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.

 

        (4) Definitions. As used in this subsection, the term "creditor" –

 

                (A) means a creditor, as defined in section 702 of the Equal Credit Opportunity

                Act (15 U.S.C. 1691a), that regularly and in the ordinary course of business

 

                        (i) obtains or uses consumer reports, directly or indirectly, in connection with

                        a credit transaction;

 

                        (ii) furnishes information to consumer reporting agencies, as described in

                        section 623, in connection with a credit transaction; or

 

                        (iii) advances funds to or on behalf of a person, based on an obligation of the

                        person to repay the funds or repayable from specific property pledged by

                        or on behalf of the person;

 

                (B) does not include a creditor described in subparagraph (A)(iii) that advances

                funds on behalf of a person for expenses incidental to a service provided by

                the creditor to that person; and

 

                (C) includes any other type of creditor, as defined in that section 702, as the

                agency described in paragraph (1) having authority over that creditor may

                determine appropriate by rule promulgated by that agency, based on a

                determination that such creditor offers or maintains accounts that are subject

                to a reasonably foreseeable risk of identity theft.

 

(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;

 

                (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)); and

 

                (E) include a statement informing the consumer of –

 

                        (i) a numerical credit score as defined in section 609(f)(2)(A), used by such

                        person in making the credit decision described in paragraph (1) based in

                        whole or in part on any information in a consumer report; and

 

                        (ii) the information set forth in subparagraphs (B) through (E) of section

                        609(f)(1).

 

        (6) Rulemaking

 

                (A) Rules required. The Bureau shall prescribe rules to carry out this subsection.

 

                (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. (top of page)

 

§ 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.

 

(d) Clarification of willful noncompliance. For the purposes of this section, any person who

printed an expiration date on any receipt provided to a consumer cardholder at a point of

sale or transaction between December 4, 2004, and the date of the enactment of this subsection

but otherwise complied with the requirements of section 605(g) for such receipt

shall not be in willful noncompliance with section 605(g) by reason of printing such

expiration date on the receipt. (top of page)

 

§ 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. (top of page)

 

§ 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. (top of page)

 

§ 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. (top of page)

 

§ 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. (top of page)

 

§ 621. Administrative enforcement [15 U.S.C. § 1681s]

 

 (a) Enforcement by Federal Trade Commission.

 

        (1) In General. The Federal Trade Commission shall be authorized to enforce compliance

        with the requirements imposed by this title under the Federal Trade Commission Act

        (15 U.S.C. 41 et seq.), 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 any of subparagraphs (A) through (G) of subsection (b)(1), and subject to

        subtitle B of the Consumer Financial Protection Act of 2010, subsection (b). 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) of that Act with respect to any consumer reporting agency or person

        that is 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 under 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 of such Act are part of this title.

 

        (2) Penalties

 

                (A) Knowing Violations. Except as otherwise provided by subtitle B of the

                Consumer Financial Protection Act of 2010, in the event of a knowing

                violation, which constitutes a pattern or practice of violations of this title, the

                Federal Trade 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.9

 

                (B) Determining Penalty Amount. In determining the amount of a civil penalty

                under subparagraph (A), the court shall take into account the degree of

                culpability, any history of such prior conduct, ability to pay, effect on ability

                to continue to do business, and such other matters as justice may require.

 

                (C) Limitation. Notwithstanding paragraph (2), a court may not impose any civil

                penalty on a person for a violation of section 623(a)(1), 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.

 

        (1) In General. Subject to subtitle B of the Consumer Financial Protection Act of 2010,

        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

        section 615(d) shall be enforced under –

 

                (A) section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818), by the

                appropriate Federal banking agency, as defined in section 3(q) of the Federal

                Deposit Insurance Act (12 U.S.C. 1813(q)), with respect to –

 

                        (i) any national bank or State savings association, and any Federal branch or

                        Federal agency of a foreign bank;

 

                        (ii) any member bank of the Federal Reserve System (other than a national

                        bank), a branch or agency of a foreign bank (other than a Federal branch,

                        Federal agency, or insured State branch of a foreign bank), a commercial

                        lending company owned or controlled by a foreign bank, and any

                        organization operating under section 25 or 25A of the Federal Reserve

                        Act; and

 

                        (iii) any bank or Federal savings association insured by the Federal Deposit

                        Insurance Corporation (other than a member of the Federal Reserve

                        System) and any insured State branch of a foreign bank;

 

                (B) the Federal Credit Union Act (12 U.S.C. 1751 et seq.), by the Administrator

                of the National Credit Union Administration with respect to any Federal credit

                union;

 

                (C) subtitle IV of title 49, United States Code, by the Secretary of Transportation,

                with respect to all carriers subject to the jurisdiction of the Surface

                Transportation Board;

 

                (D) the Federal Aviation Act of 1958 (49 U.S.C. App. 1301 et seq.), by the

                Secretary of Transportation, with respect to any air carrier or foreign air

                carrier subject to that Act;

 

                (E) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.) (except as

                provided in section 406 of that Act), by the Secretary of Agriculture, with

                respect to any activities subject to that Act;

 

                (F) the Commodity Exchange Act, with respect to a person subject to the

                jurisdiction of the Commodity Futures Trading Commission;

 

                (G) the Federal securities laws, and any other laws that are subject to the

                jurisdiction of the Securities and Exchange Commission, with respect to a

                person that is subject to the jurisdiction of the Securities and Exchange

                Commission; and

 

                (H) subtitle E of the Consumer Financial Protection Act of 2010, by the Bureau,

                with respect to any person subject to this title.

 

        (2) Incorporated Definitions. 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)) have the same meanings as 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) [§ 1681s-2], damages for which the person would, but for

                        section 623(c), 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 Bureau and the Federal Trade Commission or the appropriate

        Federal regulator determined under subsection (b) and provide the Bureau and

        the Federal Trade 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 Bureau and

        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 Bureau, 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 Bureau,

        the Federal Trade 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) In General. The Bureau shall prescribe such regulations as are necessary to carry out

        the purposes of this title, except with respect to sections 615(e) and 628. The Bureau

        may prescribe regulations as may be necessary or appropriate to administer and carry

        out the purposes and objectives of this title, and to prevent evasions thereof or to facilitate

        compliance therewith. Except as provided in section 1029(a) of the Consumer

        Financial Protection Act of 2010, the regulations prescribed by the Bureau under this

        title shall apply to any person that is subject to this title, notwithstanding the enforcement

        authorities granted to other agencies under this section.

 

        (2) Deference. Notwithstanding any power granted to any Federal agency under this

        title, the deference that a court affords to a Federal agency with respect to a determination

        made by such agency relating to the meaning or interpretation of any provision

        of this title that is subject to the jurisdiction of such agency shall be applied as if that

        agency were the only agency authorized to apply, enforce, interpret, or administer the

        provisions of this title The regulations prescribed by the Bureau under this title shall

        apply to any person that is subject to this title, notwithstanding the enforcement

        authorities granted to other agencies under this section.

 

(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 Bureau, in consultation

        with the Federal Trade Commission, 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 Bureau on consumer complaints received

        by the agency on identity theft or fraud alerts.

 

(g) Bureau regulation of coding of trade names. If the Bureau determines that a person

described in paragraph (9) of section 623(a) has not met the requirements of such

paragraph, the Bureau 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. (top of page)

 

§ 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. (top of page)

 

§ 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 Bureau. The Bureau shall prescribe a brief model disclosure that

                        a financial institution may use to comply with subparagraph (A), which

                        shall not exceed 30 words.

 

                        (ii) Use of model not required. No provision of this paragraph may be

                        construed to require a financial institution to use any such model form

                        prescribed by the Bureau.

 

                        (iii) Compliance using model. A financial institution shall be deemed to be in

                        compliance with subparagraph (A) if the financial institution uses any

                        model form prescribed by the Bureau under this subparagraph, 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 Bureau, in consultation with the Federal Trade Commission,

                the Federal banking agencies, and the National Credit Union Administration,

                shall 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 See also 16 CFR Part 660

74 Fed. Reg. 31484 (07/01/09)

 

        (1) Guidelines. The Bureau shall, with respect to persons or entities that are subject to

        the enforcement authority of the Bureau under section 621 –

 

                (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) Criteria. In developing the guidelines required by paragraph (1)(A), the Bureau 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 ensure 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 re investigations and correct

                inaccurate information relating to consumers that has been furnished to

                consumer reporting agencies. (top of page)

 

§ 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. (top of page)

 

§ 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. (top of page)

 

§ 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. (top of page)

 

§ 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. (top of page)

 

§ 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. The Federal Trade Commission, the Securities and Exchange Commission,

        the Commodity Futures Trading Commission, the Federal banking agencies, and the

        National Credit Union Administration, with respect to the entities that are subject to

        their respective enforcement authority under section 621, 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 agencies identified in

paragraph (1) 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. (top of page)

 

§ 629. Corporate and technological circumvention prohibited [15 U.S.C. §1681x]

 

The Bureau 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). (top of page)