The Fair Credit Reporting Act
As a public service, the staff of the
Federal Trade Commission (FTC) has prepared the following
complete text of the Fair Credit Reporting Act (FCRA), 15
U.S.C. 1681 et seq. Although staff generally followed the
format of the U.S. Code as published by the Government
Printing Office, the format of this text does differ in
minor ways from the Code (and from West's U.S. Code
Annotated). For example, this version uses FCRA section
numbers ( 601-625) in the headings. (The relevant U.S. Code
citation is included with each section heading and each
reference to the FCRA in the text.)
This version of the FCRA is complete as of
January 7, 2002. It includes the amendments to the FCRA set
forth in the Consumer Credit Reporting Reform Act of 1996
(Public Law 104-208, the Omnibus Consolidated Appropriations
Act for Fiscal Year 1997, Title II, Subtitle D, Chapter 1),
Section 311 of the Intelligence Authorization for Fiscal
Year 1998 (Public Law 105-107), the Consumer Reporting
Employment Clarification Act of 1998 (Public Law 105-347),
Section 506 of the Gramm-Leach-Bliley Act (Public Law
106-102), and Sections 358(g) and 505(c) of the Uniting and
Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001
(USA PATRIOT Act) (Public Law 107-56).
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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
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 Relation to State laws
625 Disclosures to FBI for counterintelligence purposes
626 Disclosures to governmental agencies for
counterterrorism purposes
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601. Short title
This title may be cited as the Fair Credit
Reporting Act.
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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.
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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. The term "consumer report" does not include
(A) 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).
(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" means information or
records obtained, with the consent of the individual to whom
it relates, from licensed physicians or medical
practitioners, hospitals, clinics, or other medical or
medically related facilities.
(j) Definitions relating to child support obligations.
(1) Overdue support. The term "overdue support" has the
meaning given to such term in section 666(e) of title 42
[Social Security Act, 42 U.S.C. 666(e)].
(2) State or local child support enforcement agency. The
term "State or local child support enforcement agency" means
a State or local agency which administers a State or local
program for establishing and enforcing child support
obligations.
(k) Adverse action.
(1) Actions included. The term "adverse action"
(A) has the same meaning as in section 701(d)(6) of the
Equal Credit Opportunity Act; and
(B) means
(i) a denial or cancellation of, an increase in any charge
for, or a reduction or other adverse or unfavorable change
in the terms of coverage or amount of, any insurance,
existing or applied for, in connection with the underwriting
of insurance;
(ii) a denial of employment or any other decision for
employment purposes that adversely affects any current or
prospective employee;
(iii) a denial or cancellation of, an increase in any charge
for, or any other adverse or unfavorable change in the terms
of, any license or benefit described in section 604(a)(3)(D)
[ 1681b]; and
(iv) an action taken or determination that is
(I) made in connection with an application that was made by,
or a transaction that was initiated by, any consumer, or in
connection with a review of an account under section
604(a)(3)(F)(ii)[ 1681b]; and
(II) adverse to the interests of the consumer.
(2) Applicable findings, decisions, commentary, and orders.
For purposes of any determination of whether an action is an
adverse action under paragraph (1)(A), all appropriate final
findings, decisions, commentary, and orders issued under
section 701(d)(6) of the Equal Credit Opportunity Act by the
Board of Governors of the Federal Reserve System or any
court shall apply.
(l) Firm offer of credit or insurance. The term "firm offer
of credit or insurance" means any offer of credit or
insurance to a consumer that will be honored if the consumer
is determined, based on information in a consumer report on
the consumer, to meet the specific criteria used to select
the consumer for the offer, except that the offer may be
further conditioned on one or more of the following:
(1) The consumer being determined, based on information in
the consumer's application for the credit or insurance, to
meet specific criteria bearing on credit worthiness or
insurability, as applicable, that are established
(A) before selection of the consumer for the offer; and
(B) for the purpose of determining whether to extend credit
or insurance pursuant to the offer.
(2) Verification
(A) that the consumer continues to meet the specific
criteria used to select the consumer for the offer, by using
information in a consumer report on the consumer,
information in the consumer's application for the credit or
insurance, or other information bearing on the credit
worthiness or insurability of the consumer; or
(B) of the information in the consumer's application for the
credit or insurance, to determine that the consumer meets
the specific criteria bearing on credit worthiness or
insurability.
(3) The consumer furnishing any collateral that is a
requirement for the extension of the credit or insurance
that was
(A) established before selection of the consumer for the
offer of credit or insurance; and
(B) disclosed to the consumer in the offer of credit or
insurance.
(m) Credit or insurance transaction that is not initiated by
the consumer. The term"credit or insurance transaction that
is not initiated by the consumer" does not include the use
of a consumer report by a person with which the consumer has
an account or insurance policy, for purposes of
(1) reviewing the account or insurance policy; or
(2) collecting the account.
(n) State. The term "State" means any State, the
Commonwealth of Puerto Rico, the District of Columbia, and
any territory or possession of the United States.
(o) Excluded communications. A communication is described in
this subsection if it is a communication
(1) that, but for subsection (d)(2)(D), would be an
investigative consumer report;
(2) that is made to a prospective employer for the purpose
of
(A) procuring an employee for the employer; or
(B) procuring an opportunity for a natural person to work
for the employer;
(3) that is made by a person who regularly performs such
procurement;
(4) that is not used by any person for any purpose other
than a purpose described in subparagraph (A) or (B) of
paragraph (2); and
(5) with respect to which
(A) the consumer who is the subject of the communication
(i) consents orally or in writing to the nature and scope of
the communication, before the collection of any information
for the purpose of making the communication;
(ii) consents orally or in writing to the making of the
communication to a prospective employer, before the making
of the communication; and
(iii) in the case of consent under clause (i) or (ii) given
orally, is provided written confirmation of that consent by
the person making the communication, not later than 3
business days after the receipt of the consent by that
person;
(B) the person who makes the communication does not, for the
purpose of making the communication, make any inquiry that
if made by a prospective employer of the consumer who is the
subject of the communication would violate any applicable
Federal or State equal employment opportunity law or
regulation; and
(C) the person who makes the communication
(i) discloses in writing to the consumer who is the subject
of the communication, not later than 5 business days after
receiving any request from the consumer for such disclosure,
the nature and substance of all information in the
consumer's file at the time of the request, except that the
sources of any information that is acquired solely for use
in making the communication and is actually used for no
other purpose, need not be disclosed other than under
appropriate discovery procedures in any court of competent
jurisdiction in which an action is brought; and
(ii) notifies the consumer who is the subject of the
communication, in writing, of the consumer's right to
request the information described in clause (i).
(p) Consumer reporting agency that compiles and maintains
files on consumers on a nationwide basis. The term "consumer
reporting agency that compiles and maintains files on
consumers on a nationwide basis" means a consumer reporting
agency that regularly engages in the practice of assembling
or evaluating, and maintaining, for the purpose of
furnishing consumer reports to third parties bearing on a
consumer's credit worthiness, credit standing, or credit
capacity, each of the following regarding consumers residing
nationwide:
(1) Public record information.
(2) Credit account information from persons who furnish that
information regularly and in the ordinary course of
business.
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604. Permissible purposes of consumer
reports [15 U.S.C. 1681b]
(a) In general. Subject to subsection (c), any consumer
reporting agency may furnish a consumer report under the
following circumstances and no other:
(1) In response to the order of a court having jurisdiction
to issue such an order, or a subpoena issued in connection
with proceedings before a Federal grand jury.
(2) In accordance with the written instructions of the
consumer to whom it relates.
(3) To a person which it has reason to believe
(A) intends to use the information in connection with a
credit transaction involving the consumer on whom the
information is to be furnished and involving the extension
of credit to, or review or collection of an account of, the
consumer; or
(B) intends to use the information for employment purposes;
or
(C) intends to use the information in connection with the
underwriting of insurance involving the consumer; or
(D) intends to use the information in connection with a
determination of the consumer's eligibility for a license or
other benefit granted by a governmental instrumentality
required by law to consider an applicant's financial
responsibility or status; or
(E) intends to use the information, as a potential investor
or servicer, or current insurer, in connection with a
valuation of, or an assessment of the credit or prepayment
risks associated with, an existing credit obligation; or
(F) otherwise has a legitimate business need for the
information
(i) in connection with a business transaction that is
initiated by the consumer; or
(ii) to review an account to determine whether the consumer
continues to meet the terms of the account.
(4) In response to a request by the head of a State or local
child support enforcement agency (or a State or local
government official authorized by the head of such an
agency), if the person making the request certifies to the
consumer reporting agency that
(A) the consumer report is needed for the purpose of
establishing an individual's capacity to make child support
payments or determining the appropriate level of such
payments;
(B) the paternity of the consumer for the child to which the
obligation relates has been established or acknowledged by
the consumer in accordance with State laws under which the
obligation arises (if required by those laws);
(C) the person has provided at least 10 days' prior notice
to the consumer whose report is requested, by certified or
registered mail to the last known address of the consumer,
that the report will be requested; and
(D) the consumer report will be kept confidential, will be
used solely for a purpose described in subparagraph (A), and
will not be used in connection with any other civil,
administrative, or criminal proceeding, or for any other
purpose.
(5) To an agency administering a State plan under Section
454 of the Social Security Act (42 U.S.C. 654) for use to
set an initial or modified child support award.
(b) Conditions for furnishing and using consumer reports for
employment purposes.
(1) Certification from user. A consumer reporting agency may
furnish a consumer report for employment purposes only if
(A) the person who obtains such report from the agency
certifies to the agency that
(i) the person has complied with paragraph (2) with respect
to the consumer report, and the person will comply with
paragraph (3) with respect to the consumer report if
paragraph (3) becomes applicable; and
(ii) information from the consumer report will not be used
in violation of any applicable Federal or State equal
employment opportunity law or regulation; and
(B) the consumer reporting agency provides with the report,
or has previously provided, a summary of the consumer's
rights under this title, as prescribed by the Federal Trade
Commission under section 609(c)(3) [ 1681g].
(2) Disclosure to consumer.
(A) In general. Except as provided in subparagraph (B), a
person may not procure a consumer report, or cause a
consumer report to be procured, for employment purposes with
respect to any consumer, unless--
(i) a clear and conspicuous disclosure has been made in
writing to the consumer at any time before the report is
procured or caused to be procured, in a document that
consists solely of the disclosure, that a consumer report
may be obtained for employment purposes; and
(ii) the consumer has authorized in writing (which
authorization may be made on the document referred to in
clause (i)) the procurement of the report by that person.
(B) Application by mail, telephone, computer, or other
similar means. If a consumer described in subparagraph (C)
applies for employment by mail, telephone, computer, or
other similar means, at any time before a consumer report is
procured or caused to be procured in connection with that
application--
(i) the person who procures the consumer report on the
consumer for employment purposes shall provide to the
consumer, by oral, written, or electronic means, notice that
a consumer report may be obtained for employment purposes,
and a summary of the consumer's rights under section
615(a)(3); and
(ii) the consumer shall have consented, orally, in writing,
or electronically to the procurement of the report by that
person.
(C) Scope. Subparagraph (B) shall apply to a person
procuring a consumer report on a consumer in connection with
the consumer's application for employment only if--
(i) the consumer is applying for a position over which the
Secretary of Transportation has the power to establish
qualifications and maximum hours of service pursuant to the
provisions of section 31502 of title 49, or a position
subject to safety regulation by a State transportation
agency; and
(ii) as of the time at which the person procures the report
or causes the report to be procured the only interaction
between the consumer and the person in connection with that
employment application has been by mail, telephone,
computer, or other similar means.
(3) Conditions on use for adverse actions.
(A) In general. Except as provided in subparagraph (B), in
using a consumer report for employment purposes, before
taking any adverse action based in whole or in part on the
report, the person intending to take such adverse action
shall provide to the consumer to whom the report relates--
(i) a copy of the report; and
(ii) a description in writing of the rights of the consumer
under this title, as prescribed by the Federal Trade
Commission under section 609(c)(3).
(B) Application by mail, telephone, computer, or other
similar means.
(i) If a consumer described in subparagraph (C) applies for
employment by mail, telephone, computer, or other similar
means, and if a person who has procured a consumer report on
the consumer for employment purposes takes adverse action on
the employment application based in whole or in part on the
report, then the person must provide to the consumer to whom
the report relates, in lieu of the notices required under
subparagraph (A) of this section and under section 615(a),
within 3 business days of taking such action, an oral,
written or electronic notification--
(I) that adverse action has been taken based in whole or in
part on a consumer report received from a consumer reporting
agency;
(II) of the name, address and telephone number of the
consumer reporting agency that furnished the consumer report
(including a toll-free telephone number established by the
agency if the agency compiles and maintains files on
consumers on a nationwide basis);
(III) that the consumer reporting agency did not make the
decision to take the adverse action and is unable to provide
to the consumer the specific reasons why the adverse action
was taken; and
(IV) that the consumer may, upon providing proper
identification, request a free copy of a report and may
dispute with the consumer reporting agency the accuracy or
completeness of any information in a report.
(ii) If, under clause (B)(i)(IV), the consumer requests a
copy of a consumer report from the person who procured the
report, then, within 3 business days of receiving the
consumer's request, together with proper identification, the
person must send or provide to the consumer a copy of a
report and a copy of the consumer's rights as prescribed by
the Federal Trade Commission under section 609(c)(3).
(C) Scope. Subparagraph (B) shall apply to a person
procuring a consumer report on a consumer in connection with
the consumer's application for employment only if--
(i) the consumer is applying for a position over which the
Secretary of Transportation has the power to establish
qualifications and maximum hours of service pursuant to the
provisions of section 31502 of title 49, or a position
subject to safety regulation by a State transportation
agency; and
(ii) as of the time at which the person procures the report
or causes the report to be procured the only interaction
between the consumer and the person in connection with that
employment application has been by mail, telephone,
computer, or other similar means.
(4) Exception for national security investigations.
(A) In general. In the case of an agency or department of
the United States Government which seeks to obtain and use a
consumer report for employment purposes, paragraph (3) shall
not apply to any adverse action by such agency or department
which is based in part on such consumer report, if the head
of such agency or department makes a written finding that--
(i) the consumer report is relevant to a national security
investigation of such agency or department;
(ii) the investigation is within the jurisdiction of such
agency or department;
(iii) there is reason to believe that compliance with
paragraph (3) will--
(I) endanger the life or physical safety of any person;
(II) result in flight from prosecution;
(III) result in the destruction of, or tampering with,
evidence relevant to the investigation;
(IV) result in the intimidation of a potential witness
relevant to the investigation;
(V) result in the compromise of classified information; or
(VI) otherwise seriously jeopardize or unduly delay the
investigation or another official proceeding.
(B) Notification of consumer upon conclusion of
investigation. Upon the conclusion of a national security
investigation described in subparagraph (A), or upon the
determination that the exception under subparagraph (A) is
no longer required for the reasons set forth in such
subparagraph, the official exercising the authority in such
subparagraph shall provide to the consumer who is the
subject of the consumer report with regard to which such
finding was made--
(i) a copy of such consumer report with any classified
information redacted as necessary;
(ii) notice of any adverse action which is based, in part,
on the consumer report; and
(iii) the identification with reasonable specificity of the
nature of the investigation for which the consumer report
was sought.
(C) Delegation by head of agency or department. For purposes
of subparagraphs (A) and (B), the head of any agency or
department of the United States Government may delegate his
or her authorities under this paragraph to an official of
such agency or department who has personnel security
responsibilities and is a member of the Senior Executive
Service or equivalent civilian or military rank.
(D) Report to the congress. Not later than January 31 of
each year, the head of each agency and department of the
United States Government that exercised authority under this
paragraph during the preceding year shall submit a report to
the Congress on the number of times the department or agency
exercised such authority during the year.
(E) Definitions. For purposes of this paragraph, the
following definitions shall apply:
(i) Classified information. The term `classified
information' means information that is protected from
unauthorized disclosure under Executive Order No. 12958 or
successor orders.
(ii) National security investigation. The term `national
security investigation' means any official inquiry by an
agency or department of the United States Government to
determine the eligibility of a consumer to receive access or
continued access to classified information or to determine
whether classified information has been lost or compromised.
(c) Furnishing reports in connection with credit or
insurance transactions that are not initiated by the
consumer.
(1) In general. A consumer reporting agency may furnish a
consumer report relating to any consumer pursuant to
subparagraph (A) or (C) of subsection (a)(3) in connection
with any credit or insurance transaction that is not
initiated by the consumer only if
(A) the consumer authorizes the agency to provide such
report to such person; or
(B) (i) the transaction consists of a firm offer of credit
or insurance;
(ii) the consumer reporting agency has complied with
subsection (e); and
(iii) there is not in effect an election by the consumer,
made in accordance with subsection (e), to have the
consumer's name and address excluded from lists of names
provided by the agency pursuant to this paragraph.
(2) Limits on information received under paragraph (1)(B). A
person may receive pursuant to paragraph (1)(B) only
(A) the name and address of a consumer;
(B) an identifier that is not unique to the consumer and
that is used by the person solely for the purpose of
verifying the identity of the consumer; and
(C) other information pertaining to a consumer that does not
identify the relationship or experience of the consumer with
respect to a particular creditor or other entity.
(3) Information regarding inquiries. Except as provided in
section 609(a)(5) [ 1681g], a consumer reporting agency
shall not furnish to any person a record of inquiries in
connection with a credit or insurance transaction that is
not initiated by a consumer.
(d) Reserved.
(e) Election of consumer to be excluded from lists.
(1) In general. A consumer may elect to have the consumer's
name and address excluded from any list provided by a
consumer reporting agency under subsection (c)(1)(B) in
connection with a credit or insurance transaction that is
not initiated by the consumer, by notifying the agency in
accordance with paragraph (2) that the consumer does not
consent to any use of a consumer report relating to the
consumer in connection with any credit or insurance
transaction that is not initiated by the consumer.
(2) Manner of notification. A consumer shall notify a
consumer reporting agency under paragraph (1)
(A) through the notification system maintained by the agency
under paragraph (5); or
(B) by submitting to the agency a signed notice of election
form issued by the agency for purposes of this subparagraph.
(3) Response of agency after notification through system.
Upon receipt of notification of the election of a consumer
under paragraph (1) through the notification system
maintained by the agency under paragraph (5), a consumer
reporting agency shall
(A) inform the consumer that the election is effective only
for the 2-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 2-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) Furnishing reports containing medical information. 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 about a consumer, unless the consumer consents
to the furnishing of the report.
--------------------------------------------------------------------------------
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.(1)
(5) Any other adverse item of information, other than
records of convictions of crimes which antedates the report
by more than seven years.1
(b) Exempted cases. The provisions 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)(2) 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. 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.
(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.
--------------------------------------------------------------------------------
606. Disclosure of investigative
consumer reports [15 U.S.C. 1681d]
(a) Disclosure of fact of preparation. A person may not
procure or cause to be prepared an investigative consumer
report on any consumer unless
(1) it is clearly and accurately disclosed to the consumer
that an investigative consumer report including information
as to his character, general reputation, personal
characteristics and mode of living, whichever are
applicable, may be made, and such disclosure
(A) is made in a writing mailed, or otherwise delivered, to
the consumer, not later than three days after the date on
which the report was first requested, and
(B) includes a statement informing the consumer of his right
to request the additional disclosures provided for under
subsection (b) of this section and the written summary of
the rights of the consumer prepared pursuant to section
609(c) [ 1681g]; and
(2) the person certifies or has certified to the consumer
reporting agency that
(A) the person has made the disclosures to the consumer
required by paragraph (1); and
(B) the person will comply with subsection (b).
(b) Disclosure on request of nature and scope of
investigation. Any person who procures or causes to be
prepared an investigative consumer report on any consumer
shall, upon written request made by the consumer within a
reasonable period of time after the receipt by him of the
disclosure required by subsection (a)(1) of this section,
make a complete and accurate disclosure of the nature and
scope of the investigation requested. This disclosure shall
be made in a writing mailed, or otherwise delivered, to the
consumer not later than five days after the date on which
the request for such disclosure was received from the
consumer or such report was first requested, whichever is
the later.
(c) Limitation on liability upon showing of reasonable
procedures for compliance with provisions. No person may be
held liable for any violation of subsection (a) or (b) of
this section if he shows by a preponderance of the evidence
that at the time of the violation he maintained reasonable
procedures to assure compliance with subsection (a) or (b)
of this section.
(d) Prohibitions.
(1) Certification. A consumer reporting agency shall not
prepare or furnish investigative consumer report unless the
agency has received a certification under subsection (a)(2)
from the person who requested the report.
(2) Inquiries. A consumer reporting agency shall not make an
inquiry for the purpose of preparing an investigative
consumer report on a consumer for employment purposes if the
making of the inquiry by an employer or prospective employer
of the consumer would violate any applicable Federal or
State equal employment opportunity law or regulation.
(3) Certain public record information. Except as otherwise
provided in section 613 [ 1681k], a consumer reporting
agency shall not furnish an investigative consumer report
that includes information that is a matter of public record
and that relates to an arrest, indictment, conviction, civil
judicial action, tax lien, or outstanding judgment, unless
the agency has verified the accuracy of the information
during the 30-day period ending on the date on which the
report is furnished.
(4) Certain adverse information. A consumer reporting agency
shall not prepare or furnish an investigative consumer
report on a consumer that contains information that is
adverse to the interest of the consumer and that is obtained
through a personal interview with a neighbor, friend, or
associate of the consumer or with another person with whom
the consumer is acquainted or who has knowledge of such item
of information, unless
(A) the agency has followed reasonable procedures to obtain
confirmation of the information, from an additional source
that has independent and direct knowledge of the
information; or
(B) the person interviewed is the best possible source of
the information.
--------------------------------------------------------------------------------
607. Compliance procedures [15 U.S.C.
1681e]
(a) Identity and purposes of credit users. Every consumer
reporting agency shall maintain reasonable procedures
designed to avoid violations of section 605 [ 1681c] and to
limit the furnishing of consumer reports to the purposes
listed under section 604 [ 1681b] of this title. These
procedures shall require that prospective users of the
information identify themselves, certify the purposes for
which the information is sought, and certify that the
information will be used for no other purpose. Every
consumer reporting agency shall make a reasonable effort to
verify the identity of a new prospective user and the uses
certified by such prospective user prior to furnishing such
user a consumer report. No consumer reporting agency may
furnish a consumer report to any person if it has reasonable
grounds for believing that the consumer report will not be
used for a purpose listed in section 604 [ 1681b] of this
title.
(b) Accuracy of report. Whenever a consumer reporting agency
prepares a consumer report it shall follow reasonable
procedures to assure maximum possible accuracy of the
information concerning the individual about whom the report
relates.
(c) Disclosure of consumer reports by users allowed. A
consumer reporting agency may not prohibit a user of a
consumer report furnished by the agency on a consumer from
disclosing the contents of the report to the consumer, if
adverse action against the consumer has been taken by the
user based in whole or in part on the report.
(d) Notice to users and furnishers of information.
(1) Notice requirement. A consumer reporting agency shall
provide to any person
(A) who regularly and in the ordinary course of business
furnishes information to the agency with respect to any
consumer; or
(B) to whom a consumer report is provided by the agency;
a notice of such person's responsibilities under this title.
(2) Content of notice. The Federal Trade Commission shall
prescribe the content of notices under paragraph (1), and a
consumer reporting agency shall be in compliance with this
subsection if it provides a notice under paragraph (1) that
is substantially similar to the Federal Trade Commission
prescription under this paragraph.
(e) Procurement of consumer report for resale.
(1) Disclosure. A person may not procure a consumer report
for purposes of reselling the report (or any information in
the report) unless the person discloses to the consumer
reporting agency that originally furnishes the report
(A) the identity of the end-user of the report (or
information); and
(B) each permissible purpose under section 604 [ 1681b] for
which the report is furnished to the end-user of the report
(or information).
(2) Responsibilities of procurers for resale. A person who
procures a consumer report for purposes of reselling the
report (or any information in the report) shall
(A) establish and comply with reasonable procedures designed
to ensure that the report (or information) is resold by the
person only for a purpose for which the report may be
furnished under section 604 [ 1681b], including by requiring
that each person to which the report (or information) is
resold and that resells or provides the report (or
information) to any other person
(i) identifies each end user of the resold report (or
information);
(ii) certifies each purpose for which the report (or
information) will be used; and
(iii) certifies that the report (or information) will be
used for no other purpose; and
(B) before reselling the report, make reasonable efforts to
verify the identifications and certifications made under
subparagraph (A).
(3) Resale of consumer report to a federal agency or
department. Notwithstanding paragraph (1) or (2), a person
who procures a consumer report for purposes of reselling the
report (or any information in the report) shall not disclose
the identity of the end-user of the report under paragraph
(1) or (2) if--
(A) the end user is an agency or department of the United
States Government which procures the report from the person
for purposes of determining the eligibility of the consumer
concerned to receive access or continued access to
classified information (as defined in section 604(b)(4)(E)(i));
and
(B) the agency or department certifies in writing to the
person reselling the report that nondisclosure is necessary
to protect classified information or the safety of persons
employed by or contracting with, or undergoing investigation
for work or contracting with the agency or department.
--------------------------------------------------------------------------------
608. Disclosures to governmental
agencies [15 U.S.C. 1681f]
Notwithstanding the provisions of section 604 [ 1681b] of
this title, a consumer reporting agency may furnish
identifying information respecting any consumer, limited to
his name, address, former addresses, places of employment,
or former places of employment, to a governmental agency.
--------------------------------------------------------------------------------
609. Disclosures to consumers [15 U.S.C.
1681g]
(a) Information on file; sources; report recipients. Every
consumer reporting agency shall, upon request, and subject
to 610(a)(1) [ 1681h], clearly and accurately disclose to
the consumer:
(1) All information in the consumer's file at the time of
the request, except that nothing in this paragraph shall be
construed to require a consumer reporting agency to disclose
to a consumer any information concerning credit scores or
any other risk scores or predictors relating to the
consumer.
(2) The sources of the information; except that the sources
of information acquired solely for use in preparing an
investigative consumer report and actually used for no other
purpose need not be disclosed: Provided, That in the event
an action is brought under this 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.
(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 required to be included with
disclosure.
(1) Summary of rights. A consumer reporting agency shall
provide to a consumer, with each written disclosure by the
agency to the consumer under this section
(A) a written summary of all of the rights that the consumer
has under this title; and
(B) in the case of a consumer reporting agency that compiles
and maintains files on consumers on a nationwide basis, a
toll-free telephone number established by the agency, at
which personnel are accessible to consumers during normal
business hours.
(2) Specific items required to be included. The summary of
rights required under paragraph (1) shall include
(A) a brief description of this title and all rights of
consumers under this title;
(B) an explanation of how the consumer may exercise the
rights of the consumer under this title;
(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 to learn of those rights; and
(E) a statement that a consumer reporting agency is not
required to remove accurate derogatory information from a
consumer's file, unless the information is outdated under
section 605 [ 1681c] or cannot be verified.
(3) Form of summary of rights. For purposes of this
subsection and any disclosure by a consumer reporting agency
required under this title with respect to consumers' rights,
the Federal Trade Commission (after consultation with each
Federal agency referred to in section 621(b) [ 1681s]) shall
prescribe the form and content of any such disclosure of the
rights of consumers required under this title. A consumer
reporting agency shall be in compliance with this subsection
if it provides disclosures under paragraph (1) that are
substantially similar to the Federal Trade Commission
prescription under this paragraph.
(4) Effectiveness. No disclosures shall be required under
this subsection until the date on which the Federal Trade
Commission prescribes the form and content of such
disclosures under paragraph (3).
--------------------------------------------------------------------------------
610. Conditions and form of disclosure
to consumers [15 U.S.C. 1681h]
(a) In general.
(1) Proper identification. A consumer reporting agency shall
require, as a condition of making the disclosures required
under section 609 [ 1681g], that the consumer furnish proper
identification.
(2) Disclosure in writing. Except as provided in subsection
(b), the disclosures required to be made under section 609 [
1681g] shall be provided under that section in writing.
(b) Other forms of disclosure.
(1) In general. If authorized by a consumer, a consumer
reporting agency may make the disclosures required under 609
[ 1681g]
(A) other than in writing; and
(B) in such form as may be
(i) specified by the consumer in accordance with paragraph
(2); and
(ii) available from the agency.
(2) Form. A consumer may specify pursuant to paragraph (1)
that disclosures under section 609 [ 1681g] shall be made
(A) in person, upon the appearance of the consumer at the
place of business of the consumer reporting agency where
disclosures are regularly provided, during normal business
hours, and on reasonable notice;
(B) by telephone, if the consumer has made a written request
for disclosure by telephone;
(C) by electronic means, if available from the agency; or
(D) by any other reasonable means that is available from the
agency.
(c) Trained personnel. Any consumer reporting agency shall
provide trained personnel to explain to the consumer any
information furnished to him pursuant to section 609 [
1681g] of this title.
(d) Persons accompanying consumer. The consumer shall be
permitted to be accompanied by one other person of his
choosing, who shall furnish reasonable identification. A
consumer reporting agency may require the consumer to
furnish a written statement granting permission to the
consumer reporting agency to discuss the consumer's file in
such person's presence.
(e) Limitation of liability. Except as provided in sections
616 and 617 [ 1681n and 1681o] of this title, no consumer
may bring any action or proceeding in the nature of
defamation, invasion of privacy, or negligence with respect
to the reporting of information against any consumer
reporting agency, any user of information, or any person who
furnishes information to a consumer reporting agency, based
on information disclosed pursuant to section 609, 610, or
615 [ 1681g, 1681h, or 1681m] of this title or based on
information disclosed by a user of a consumer report to or
for a consumer against whom the user has taken adverse
action, based in whole or in part on the report, except as
to false information furnished with malice or willful intent
to injure such consumer.
--------------------------------------------------------------------------------
611. Procedure in case of disputed
accuracy [15 U.S.C. 1681i]
(a) Reinvestigations of disputed information.
(1) Reinvestigation required.
(A) In general. 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 of such dispute, the
agency shall reinvestigate free of charge 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.
(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 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.
(B) Provision of other information from consumer. 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 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 promptly delete that item of information from
the consumer's file or modify that item of information, as
appropriate, based on the results of the reinvestigation.
(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 consumer report containing the information in
question, clearly note that it is disputed by the consumer
and provide either the consumer's statement or a clear and
accurate codification or summary thereof.
(d) Notification of deletion of disputed information.
Following any deletion of information which is found to be
inaccurate or whose accuracy can no longer be verified or
any notation as to disputed information, the consumer
reporting agency shall, at the request of the consumer,
furnish notification that the item has been deleted or the
statement, codification or summary pursuant to subsection
(b) or (c) of this section to any person specifically
designated by the consumer who has within two years prior
thereto received a consumer report for employment purposes,
or within six months prior thereto received a consumer
report for any other purpose, which contained the deleted or
disputed information.
--------------------------------------------------------------------------------
612. Charges for certain disclosures
[15 U.S.C. 1681j]
(a) Reasonable charges allowed for certain disclosures.
(1) In general. Except as provided in subsections (b), (c),
and (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;(3) and
(ii) shall be indicated to the consumer before making the
disclosure; and
(B) for furnishing, pursuant to 611(d) [ 1681i], following a
reinvestigation under section 611(a) [ 1681i], a statement,
codification, or summary to a person designated by the
consumer under that section after the 30-day period
beginning on the date of notification of the consumer under
paragraph (6) or (8) of section 611(a) [ 1681i] with respect
to the reinvestigation, which charge
(i) shall not exceed the charge that the agency would impose
on each designated recipient for a consumer report; and
(ii) shall be indicated to the consumer before furnishing
such information.
(2) Modification of amount. The Federal Trade Commission
shall increase the amount referred to in paragraph (1)(A)(I)
on January 1 of each year, based proportionally on changes
in the Consumer Price Index, with fractional changes rounded
to the nearest fifty cents.
(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) 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
(a).
--------------------------------------------------------------------------------
613. Public record information for
employment purposes [15 U.S.C. 1681k]
(a) In general. A consumer reporting agency which furnishes
a consumer report for employment purposes and which for that
purpose compiles and reports items of information on
consumers which are matters of public record and are likely
to have an adverse effect upon a consumer's ability to
obtain employment shall
(1) at the time such public record information is reported
to the user of such consumer report, notify the consumer of
the fact that public record information is being reported by
the consumer reporting agency, together with the name and
address of the person to whom such information is being
reported; or
(2) maintain strict procedures designed to insure that
whenever public record information which is likely to have
an adverse effect on a consumer's ability to obtain
employment is reported it is complete and up to date. For
purposes of this paragraph, items of public record relating
to arrests, indictments, convictions, suits, tax liens, and
outstanding judgments shall be considered up to date if the
current public record status of the item at the time of the
report is reported.
(b) Exemption for national security investigations.
Subsection (a) does not apply in the case of an agency or
department of the United States Government that seeks to
obtain and use a consumer report for employment purposes, if
the head of the agency or department makes a written finding
as prescribed under section 604(b)(4)(A).
--------------------------------------------------------------------------------
614. Restrictions on investigative
consumer reports [15 U.S.C. 1681l]
Whenever a consumer reporting agency prepares an
investigative consumer report, no adverse information in the
consumer report (other than information which is a matter of
public record) may be included in a subsequent consumer
report unless such adverse information has been verified in
the process of making such subsequent consumer report, or
the adverse information was received within the three-month
period preceding the date the subsequent report is
furnished.
--------------------------------------------------------------------------------
615. Requirements on users of consumer
reports [15 U.S.C. 1681m]
(a) Duties of users taking adverse actions on the basis of
information contained in consumer reports. If any person
takes any adverse action with respect to any consumer that
is based in whole or in part on any information contained in
a consumer report, the person shall
(1) provide oral, written, or electronic notice of the
adverse action to the consumer;
(2) provide to the consumer orally, in writing, or
electronically
(A) the name, address, and telephone number of the consumer
reporting agency (including a toll-free telephone number
established by the agency if the agency compiles and
maintains files on consumers on a nationwide basis) that
furnished the report to the person; and
(B) a statement that the consumer reporting agency did not
make the decision to take the adverse action and is unable
to provide the consumer the specific reasons why the adverse
action was taken; and
(3) provide to the consumer an oral, written, or electronic
notice of the consumer's right
(A) to obtain, under section 612 [ 1681j], a free copy of a
consumer report on the consumer from the consumer reporting
agency referred to in paragraph (2), which notice shall
include an indication of the 60-day period under that
section for obtaining such a copy; and
(B) to dispute, under section 611 [ 1681i], with a consumer
reporting agency the accuracy or completeness of any
information in a consumer report furnished by the agency.
(b) Adverse action based on information obtained from third
parties other than consumer reporting agencies.
(1) In general. Whenever credit for personal, family, or
household purposes involving a consumer is denied or the
charge for such credit is increased either wholly or partly
because of information obtained from a person other than a
consumer reporting agency bearing upon the consumer's credit
worthiness, credit standing, credit capacity, character,
general reputation, personal characteristics, or mode of
living, the user of such information shall, within a
reasonable period of time, upon the consumer's written
request for the reasons for such adverse action received
within sixty days after learning of such adverse action,
disclose the nature of the information to the consumer. The
user of such information shall clearly and accurately
disclose to the consumer his right to make such written
request at the time such adverse action is communicated to
the consumer.
(2) Duties of person taking certain actions based on
information provided by affiliate.
(A) Duties, generally. If a person takes an action described
in subparagraph (B) with respect to a consumer, based in
whole or in part on information described in subparagraph
(C), the person shall
(i) notify the consumer of the action, including a statement
that the consumer may obtain the information in accordance
with clause (ii); and
(ii) upon a written request from the consumer received
within 60 days after transmittal of the notice required by
clause (I), disclose to the consumer the nature of the
information upon which the action is based by not later than
30 days after receipt of the request.
(B) Action described. An action referred to in subparagraph
(A) is an adverse action described in section 603(k)(1)(A) [
1681a], taken in connection with a transaction initiated by
the consumer, or any adverse action described in clause (i)
or (ii) of section 603(k)(1)(B) [ 1681a].
(C) Information described. Information referred to in
subparagraph (A)
(i) except as provided in clause (ii), is information that
(I) is furnished to the person taking the action by a person
related by common ownership or affiliated by common
corporate control to the person taking the action; and
(II) bears on the credit worthiness, credit standing, credit
capacity, character, general reputation, personal
characteristics, or mode of living of the consumer; and
(ii) does not include
(I) information solely as to transactions or experiences
between the consumer and the person furnishing the
information; or
(II) information in a consumer report.
(c) Reasonable procedures to assure compliance. No person
shall be held liable for any violation of this section if he
shows by a preponderance of the evidence that at the time of
the alleged violation he maintained reasonable procedures to
assure compliance with the provisions of this section.
(d) Duties of users making written credit or insurance
solicitations on the basis of information contained in
consumer files.
(1) In general. Any person who uses a consumer report on any
consumer in connection with any credit or insurance
transaction that is not initiated by the consumer, that is
provided to that person under section 604(c)(1)(B) [ 1681b],
shall provide with each written solicitation made to the
consumer regarding the transaction a clear and conspicuous
statement that
(A) information contained in the consumer's consumer report
was used in connection with the transaction;
(B) the consumer received the offer of credit or insurance
because the consumer satisfied the criteria for credit
worthiness or insurability under which the consumer was
selected for the offer;
(C) if applicable, the credit or insurance may not be
extended if, after the consumer responds to the offer, the
consumer does not meet the criteria used to select the
consumer for the offer or any applicable criteria bearing on
credit worthiness or insurability or does not furnish any
required collateral;
(D) the consumer has a right to prohibit information
contained in the consumer's file with any consumer reporting
agency from being used in connection with any credit or
insurance transaction that is not initiated by the consumer;
and
(E) the consumer may exercise the right referred to in
subparagraph (D) by notifying a notification system
established under section 604(e) [ 1681b].
(2) Disclosure of address and telephone number. A statement
under paragraph (1) shall include the address and toll-free
telephone number of the appropriate notification system
established under section 604(e) [ 1681b].
(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.
--------------------------------------------------------------------------------
616. Civil liability for willful
noncompliance [15 U.S.C. 1681n]
(a) In general. Any person who willfully fails to comply
with any requirement imposed under this title with respect
to any consumer is liable to that consumer in an amount
equal to the sum of
(1)(A) any actual damages sustained by the consumer as a
result of the failure or damages of not less than $100 and
not more than $1,000; or
(B) in the case of liability of a natural person for
obtaining a consumer report under false pretenses or
knowingly without a permissible purpose, actual damages
sustained by the consumer as a result of the failure or
$1,000, whichever is greater;
(2) such amount of punitive damages as the court may allow;
and
(3) in the case of any successful action to enforce any
liability under this section, the costs of the action
together with reasonable attorney's fees as determined by
the court.
(b) Civil liability for knowing noncompliance. Any person
who obtains a consumer report from a consumer reporting
agency under false pretenses or knowingly without a
permissible purpose shall be liable to the consumer
reporting agency for actual damages sustained by the
consumer reporting agency or $1,000, whichever is greater.
(c) Attorney's fees. Upon a finding by the court that an
unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in
bad faith or for purposes of harassment, the court shall
award to the prevailing party attorney's fees reasonable in
relation to the work expended in responding to the pleading,
motion, or other paper.
--------------------------------------------------------------------------------
617. Civil liability for negligent
noncompliance [15 U.S.C. 1681o]
(a) In general. Any person who is negligent in failing to
comply with any requirement imposed under this title with
respect to any consumer is liable to that consumer in an
amount equal to the sum of
(1) any actual damages sustained by the consumer as a result
of the failure;
(2) in the case of any successful action to enforce any
liability under this section, the costs of the action
together with reasonable attorney's fees as determined by
the court.
(b) Attorney's fees. On a finding by the court that an
unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in
bad faith or for purposes of harassment, the court shall
award to the prevailing party attorney's fees reasonable in
relation to the work expended in responding to the pleading,
motion, or other paper.
--------------------------------------------------------------------------------
618. Jurisdiction of courts; limitation
of actions [15 U.S.C. 1681p]
An action to enforce any liability created under this title
may be brought in any appropriate United States district
court without regard to the amount in controversy, or in any
other court of competent jurisdiction, within two years from
the date on which the liability arises, except that where a
defendant has materially and willfully misrepresented any
information required under this title to be disclosed to an
individual and the information so misrepresented is material
to the establishment of the defendant's liability to that
individual under this title, the action may be brought at
any time within two years after discovery by the individual
of the misrepresentation.
--------------------------------------------------------------------------------
619. Obtaining information under false
pretenses [15 U.S.C. 1681q]
Any person who knowingly and willfully obtains information
on a consumer from a consumer reporting agency under false
pretenses shall be fined under title 18, United States Code,
imprisoned for not more than 2 years, or both.
--------------------------------------------------------------------------------
620. Unauthorized disclosures by
officers or employees [15 U.S.C. 1681r]
Any officer or employee of a consumer reporting agency who
knowingly and willfully provides information concerning an
individual from the agency's files to a person not
authorized to receive that information shall be fined under
title 18, United States Code, imprisoned for not more than 2
years, or both.
--------------------------------------------------------------------------------
621. Administrative enforcement [15
U.S.C. 1681s]
(a) (1) Enforcement by Federal Trade Commission. Compliance
with the requirements imposed under this title shall be
enforced under the Federal Trade Commission Act [15 U.S.C.
41 et seq.] by the Federal Trade Commission with respect to
consumer reporting agencies and all other persons subject
thereto, except to the extent that enforcement of the
requirements imposed under this title is specifically
committed to some other government agency under subsection
(b) hereof. For the purpose of the exercise by the Federal
Trade Commission of its functions and powers under the
Federal Trade Commission Act, a violation of any requirement
or prohibition imposed under this title shall constitute an
unfair or deceptive act or practice in commerce in violation
of section 5(a) of the Federal Trade Commission Act [15
U.S.C. 45(a)] and shall be subject to enforcement by the
Federal Trade Commission under section 5(b) thereof [15
U.S.C. 45(b)] with respect to any consumer reporting agency
or person subject to enforcement by the Federal Trade
Commission pursuant to this subsection, irrespective of
whether that person is engaged in commerce or meets any
other jurisdictional tests in the Federal Trade Commission
Act. The Federal Trade Commission shall have such
procedural, investigative, and enforcement powers, including
the power to issue procedural rules in enforcing compliance
with the requirements imposed under this title and to
require the filing of reports, the production of documents,
and the appearance of witnesses as though the applicable
terms and conditions of the Federal Trade Commission Act
were part of this title. Any person violating any of the
provisions of this title shall be subject to the penalties
and entitled to the privileges and immunities provided in
the Federal Trade Commission Act as though the applicable
terms and provisions thereof were part of this title.
(2)(A) In the event of a knowing violation, which
constitutes a pattern or practice of violations of this
title, the Commission may commence a civil action to recover
a civil penalty in a district court of the United States
against any person that violates this title. In such action,
such person shall be liable for a civil penalty of not more
than $2,500 per violation.
(B) In determining the amount of a civil penalty under
subparagraph (A), the court shall take into account the
degree of culpability, any history of prior such conduct,
ability to pay, effect on ability to continue to do
business, and such other matters as justice may require.
(3) Notwithstanding paragraph (2), a court may not impose
any civil penalty on a person for a violation of section
623(a)(1) [ 1681s-2] unless the person has been enjoined
from committing the violation, or ordered not to commit the
violation, in an action or proceeding brought by or on
behalf of the Federal Trade Commission, and has violated the
injunction or order, and the court may not impose any civil
penalty for any violation occurring before the date of the
violation of the injunction or order.
(b) Enforcement by other agencies. Compliance with the
requirements imposed under this title with respect to
consumer reporting agencies, persons who use consumer
reports from such agencies, persons who furnish information
to such agencies, and users of information that are subject
to subsection (d) of section 615 [ 1681m] shall be enforced
under
(1) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
1818], in the case of
(A) national banks, and Federal branches and Federal
agencies of foreign banks, by the Office of the Comptroller
of the Currency;
(B) member banks of the Federal Reserve System (other than
national banks), branches and agencies of foreign banks
(other than Federal branches, Federal agencies, and insured
State branches of foreign banks), commercial lending
companies owned or controlled by foreign banks, and
organizations operating under section 25 or 25(a) [25A] of
the Federal Reserve Act [12 U.S.C. 601 et seq., 611 et seq],
by the Board of Governors of the Federal Reserve System; and
(C) banks insured by the Federal Deposit Insurance
Corporation (other than members of the Federal Reserve
System) and insured State branches of foreign banks, by the
Board of Directors of the Federal Deposit Insurance
Corporation;
(2) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
1818], by the Director of the Office of Thrift Supervision,
in the case of a savings association the deposits of which
are insured by the Federal Deposit Insurance Corporation;
(3) the Federal Credit Union Act [12 U.S.C. 1751 et seq.],
by the Administrator of the National Credit Union
Administration [National Credit Union Administration Board]
with respect to any Federal credit union;
(4) subtitle IV of title 49 [49 U.S.C. 10101 et seq.], by
the Secretary of Transportation, with respect to all
carriers subject to the jurisdiction of the Surface
Transportation Board;
(5) the Federal Aviation Act of 1958 [49 U.S.C. Appx 1301 et
seq.], by the Secretary of Transportation with respect to
any air carrier or foreign air carrier subject to that Act
[49 U.S.C. Appx 1301 et seq.]; and
(6) the Packers and Stockyards Act, 1921 [7 U.S.C. 181 et
seq.] (except as provided in section 406 of that Act [7
U.S.C. 226 and 227]), by the Secretary of Agriculture with
respect to any activities subject to that Act.
The terms used in paragraph (1) that are not defined in this
title or otherwise defined in section 3(s) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the
meaning given to them in section 1(b) of the International
Banking Act of 1978 (12 U.S.C. 3101).
(c) State action for violations.
(1) Authority of states. In addition to such other remedies
as are provided under State law, if the chief law
enforcement officer of a State, or an official or agency
designated by a State, has reason to believe that any person
has violated or is violating this title, the State
(A) may bring an action to enjoin such violation in any
appropriate United States district court or in any other
court of competent jurisdiction;
(B) subject to paragraph (5), may bring an action on behalf
of the residents of the State to recover
(i) damages for which the person is liable to such residents
under sections 616 and 617 [ 1681n and 1681o] as a result of
the violation;
(ii) in the case of a violation of section 623(a) [
1681s-2], damages for which the person would, but for
section 623(c) [ 1681s-2], be liable to such residents as a
result of the violation; or
(iii) damages of not more than $1,000 for each willful or
negligent violation; and
(C) in the case of any successful action under subparagraph
(A) or (B), shall be awarded the costs of the action and
reasonable attorney fees as determined by the court.
(2) Rights of federal regulators. The State shall serve
prior written notice of any action under paragraph (1) upon
the Federal Trade Commission or the appropriate Federal
regulator determined under subsection (b) and provide the
Commission or appropriate Federal regulator with a copy of
its complaint, except in any case in which such prior notice
is not feasible, in which case the State shall serve such
notice immediately upon instituting such action. The Federal
Trade Commission or appropriate Federal regulator shall have
the right
(A) to intervene in the action;
(B) upon so intervening, to be heard on all matters arising
therein;
(C) to remove the action to the appropriate United States
district court; and
(D) to file petitions for appeal.
(3) Investigatory powers. For purposes of bringing any
action under this subsection, nothing in this subsection
shall prevent the chief law enforcement officer, or an
official or agency designated by a State, from exercising
the powers conferred on the chief law enforcement officer or
such official by the laws of such State to conduct
investigations or to administer oaths or affirmations or to
compel the attendance of witnesses or the production of
documentary and other evidence.
(4) Limitation on state action while federal action pending.
If the Federal Trade Commission or the appropriate Federal
regulator has instituted a civil action or an administrative
action under section 8 of the Federal Deposit Insurance Act
for a violation of this title, no State may, during the
pendency of such action, bring an action under this section
against any defendant named in the complaint of the
Commission or the appropriate Federal regulator for any
violation of this title that is alleged in that complaint.
(5) Limitations on state actions for violation of section
623(a)(1) [ 1681s-2].
(A) Violation of injunction required. A State may not bring
an action against a person under paragraph (1)(B) for a
violation of section 623(a)(1) [ 1681s-2], 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 of section
623(a)(1) [ 1681s-2], a State may not recover any damages
incurred before the date of the violation of an injunction
on which the action is based.
(d) Enforcement under other authority. For the purpose of
the exercise by any agency referred to in subsection (b) of
this section of its powers under any Act referred to in that
subsection, a violation of any requirement imposed under
this title shall be deemed to be a violation of a
requirement imposed under that Act. In addition to its
powers under any provision of law specifically referred to
in subsection (b) of this section, each of the agencies
referred to in that subsection may exercise, for the purpose
of enforcing compliance with any requirement imposed under
this title any other authority conferred on it by law.
(e) Regulatory authority
(1) The Federal banking agencies referred to in paragraphs
(1) and (2) of subsection (b) shall jointly prescribe such
regulations as necessary to carry out the purposes of this
Act with respect to any persons identified under paragraphs
(1) and (2) of subsection (b), and the Board of Governors of
the Federal Reserve System shall have authority to prescribe
regulations consistent with such joint regulations with
respect to bank holding companies and affiliates (other than
depository institutions and consumer reporting agencies) of
such holding companies.
(2) The Board of the National Credit Union Administration
shall prescribe such regulations as necessary to carry out
the purposes of this Act with respect to any persons
identified under paragraph (3) of subsection (b).
--------------------------------------------------------------------------------
622. Information on overdue child
support obligations [15 U.S.C. 1681s-1]
Notwithstanding any other provision of this title, a
consumer reporting agency shall include in any consumer
report furnished by the agency in accordance with section
604 [ 1681b] of this title, any information on the failure
of the consumer to pay overdue support which
(1) is provided
(A) to the consumer reporting agency by a State or local
child support enforcement agency; or
(B) to the consumer reporting agency and verified by any
local, State, or Federal government agency; and
(2) antedates the report by 7 years or less.
--------------------------------------------------------------------------------
623. Responsibilities of furnishers of
information to consumer reporting agencies [15 U.S.C.
1681s-2]
(a) Duty of furnishers of information to provide accurate
information.
(1) Prohibition.
(A) Reporting information with actual knowledge of errors. A
person shall not furnish any information relating to a
consumer to any consumer reporting agency if the person
knows or consciously avoids knowing 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.
(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
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 month
and year of the commencement of the delinquency that
immediately preceded the action.
(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; and
(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.
(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. Sections 616 and 617 [ 1681n
and 1681o] do not apply to any failure to comply with
subsection (a), except as provided in section 621(c)(1)(B) [
1681s].
(d) Limitation on enforcement. Subsection (a) shall be
enforced exclusively under section 621 [ 1681s] by the
Federal agencies and officials and the State officials
identified in that section.
--------------------------------------------------------------------------------
624. 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, 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; or
(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);
(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); or
(3) with respect to the form and content of any disclosure
required to be made under section 609(c) [ 1681g].
(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)
(1) 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; and
(2) do not apply to any provision of State law (including
any provision of a State constitution) that
(A) is enacted after January 1, 2004;
(B) states explicitly that the provision is intended to
supplement this title; and
(C) gives greater protection to consumers than is provided
under this title.
--------------------------------------------------------------------------------
625. 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.
--------------------------------------------------------------------------------
626. 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 625 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.
--------------------------------------------------------------------------------
Legislative History
House Reports:
No. 91-975 (Comm. on Banking and Currency) and
No. 91-1587 (Comm. of Conference)
Senate Reports:
No. 91-1139 accompanying S. 3678 (Comm. on Banking and
Currency)
Congressional Record, Vol. 116 (1970)
May 25, considered and passed House.
Sept. 18, considered and passed Senate, amended.
Oct. 9, Senate agreed to conference report.
Oct. 13, House agreed to conference report.
Enactment:
Public Law No. 91-508 (October 26, 1970):
Amendments: Public Law Nos.
95-473 (October 17, 1978)
95-598 (November 6, 1978)
98-443 (October 4, 1984)
101-73 (August 9, 1989)
102-242 (December 19, 1991)
102-537 (October 27, 1992)
102-550 (October 28, 1992)
103-325 (September 23, 1994)
104-88 (December 29, 1995)
104-93 (January 6, 1996)
104-193 (August 22, 1996)
104-208 (September 30, 1996)
105-107 (November 20, 1997)
105-347 (November 2, 1998)
106-102 (November 12, 1999)
107-56 (October 26, 2001)
Endnotes:
The reporting periods have been lengthened for certain
adverse information pertaining to U.S. Government insured or
guaranteed student loans, or pertaining to national direct
student loans. See sections 430A(f) and 463(c)(3) of the
Higher Education Act of 1965, 20 U.S.C. 1080a(f) and 20
U.S.C. 1087cc(c)(3), respectively.
Should read "paragraphs (4) and (5)...." Prior Section
605(a)(6) was amended and re-designated as Section 605(a)(5)
in November 1998.
The Federal Trade Commission increased the maximum allowable
charge to $9.00, effective January 1, 2002. 66 Fed. Reg.
63545 (Dec. 7, 2001).
© Copyright 2007 Staver & Gainsberg, P.C. All rights
Reserved.
Disclaimer: The information provided pertains to
Chapter 7 and Chapter 13 consumer bankruptcy as it relates
to this practice in Illinois. Bankruptcy law is generally
federal law. Laws in Illinois are going to be similar (but
not exactly the same) to laws anywhere in the country.
However, this information only applies to Chapter 7 and
Chapter 13 consumer debt and no other type of bankruptcy.
Additionally, this information is not intended as a legal
opinion or legal advice at all. The facts of every case are
different and give rise to issues that may not even be
discussed here. You are urged to consult an attorney who is
licensed to practice in your area before you take any
action.
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