Fair Credit
Reporting
Act
15 U.S.C § 1681
Revised
September 2018
A
s 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 (§§ 601-629) in the headings. (The relevant U.S. Code citation
is included with each section heading and each reference to the FCRA in the
text.) Although the staff has made every effort to transcribe the statutory
material accurately, this compendium is intended only as a convenience for the
public and not a substitute for the text in the U.S. Code.
This version of the FCRA includes the amendments to the FCRA set forth in
the Consumer Credit Reporting Reform Act of 1996 (Public Law 104-208, the
Omnibus Consolidated Appropriations Act for Fiscal Year 1997, Title II,
Subtitle D, Chapter 1), Section 311 of the Intelligence Authorization for Fiscal
Year 1998 (Public Law 105-107), the Consumer Reporting Employment
Clarification Act of 1998 (Public Law 105-347), Section 506 of the Gramm-
Leach-Bliley Act (Public Law 106-102), Sections 358(g) and 505(c) of the
Uniting and Strengthening America by Providing Appropriate Tools Required
to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) (Public
Law 107-56), the Fair and Accurate Credit Transactions Act of 2003 (FACT
Act) (Public Law 108-159), Section 719 of the Financial Services Regulatory
Relief Act of 2006 (Public Law 109-351), Section 743 (Div. D, Title VII) of
the Consolidated Appropriations Act of 2008 (Public Law 110-161), the Credit
and Debit Card Receipt Clarification Act of 2007 (Public Law 110-241), and
Sections 205 and 302 of the Credit Card Accountability Responsibility and
Disclosure (CARD) Act of 2009 (Public Law 111-24), the Consumer Financial
Protection Act of 2010 (CFPA) (Title X of the Dodd-Frank Wall Street Reform
and Consumer Protection Act, Public Law 111-203), and the Red Flag Program
Clarification Act of 2010 (Public Law 111-203), and Sections 301, 302, and
602 of the Economic Growth, Regulatory Relief, and Consumer Protection
Act (Public Law 115-174). The Commission website posted this document on
September 1, 2011.
The provisions added to the FCRA by the FACT Act became effective at
different times. In some cases, the provision includes its own effective date. In
other cases, the FACT Act provides that the effective dates be prescribed by the
FTC and Federal Reserve Board. See 16 CFR Part 602 (69 Fed. Reg. 6526;
February 11, 2004) (69 Fed. Reg. 29061; May 20, 2004).
The provisions added to the FCRA by the CFPA became effective on July 21,
2011, the “designated transfer date” on which the Bureau of Consumer Financial
Protection assumed certain duties specified by the CFPA. See 75 Fed. Reg.
57252 (Sept. 20, 2010).
Contents
§ 601. Short title ............................................1
§ 602. Congressional findings and statement of purpose [15 U.S.C. § 1681]......1
§ 603. Definitions; rules of construction [15 U.S.C. § 1681a] ...............1
§ 604. Permissible purposes of consumer reports [15 U.S.C. § 1681b] ........ 11
§ 605. Requirements relating to information contained in consumer reports
[15 U.S.C. § 1681c] .................................... 22
§ 605A. Identity theft prevention; fraud alerts and active duty alerts
[15 U.S.C. § 1681c-1] .................................. 26
§ 605B. Block of information resulting from identity theft [15 U.S.C. § 1681c-2] .. 39
§ 606. Disclosure of investigative consumer reports [15 U.S.C. § 1681d] ...... 41
§ 607. Compliance procedures [15 U.S.C. § 1681e] .................... 43
§ 608. Disclosures to governmental agencies [15 U.S.C. § 1681f] ........... 45
§ 609. Disclosures to consumers [15 U.S.C. § 1681g] ................... 45
§ 610. Conditions and form of disclosure to consumers [15 U.S.C. § 1681h] .... 57
§ 611. Procedure in case of disputed accuracy [15 U.S.C. § 1681i] .......... 58
§ 612. Charges for certain disclosures [15 U.S.C. § 1681j] ............... 66
§ 613. Public record information for employment purposes [15 U.S.C. § 1681k].. 70
§ 614. Restrictions on investigative consumer reports [15 U.S.C. § 1681l]...... 70
§ 615. Requirements on users of consumer reports [15 U.S.C. § 1681m] ...... 70
§ 616. Civil liability for willful noncompliance [15 U.S.C. § 1681n] ......... 79
§ 617. Civil liability for negligent noncompliance [15 U.S.C. § 1681o]........ 80
§ 618. Jurisdiction of courts; limitation of actions [15 U.S.C. § 1681p]........ 80
§ 619. Obtaining information under false pretenses [15 U.S.C. § 1681q] ....... 81
§ 620. Unauthorized disclosures by officers or employees [15 U.S.C. § 1681r]... 81
§ 621. Administrative enforcement [15 U.S.C. § 1681s] ................. 81
§ 622. Information on overdue child support obligations [15 U.S.C. § 1681s-1] .. 87
§ 623. Responsibilities of furnishers of information to consumer reporting
agencies [15 U.S.C. § 1681s-2]............................. 87
§ 624. Affiliate sharing [15 U.S.C. § 1681s-3]........................ 97
§ 625. Relation to State laws [15 U.S.C. § 1681t]......................100
§ 626. Disclosures to FBI for counterintelligence purposes [15 U.S.C. § 1681u] ..103
§ 627. Disclosures to governmental agencies for counterterrorism purposes
[15 U.S.C. § 1681v] ....................................108
§ 628. Disposal of records [15 U.S.C. § 1681w] ......................109
§ 629. Corporate and technological circumvention prohibited
[15 U.S.C. § 1681x] ....................................110
§ 603 - 15 U.S.C. § 1681a
1
§601. Short title
This title may be cited as the “Fair Credit Reporting Act.”
§602. Congressional findings and statement of purpose
[15 U.S.C. §1681]
(a) Accuracy and fairness of credit reporting. The Congress makes the
following findings:
(1) The banking system is dependent upon fair and accurate credit
reporting. Inaccurate credit reports directly impair the efficiency of
the banking system, and unfair credit reporting methods undermine
the public confidence which is essential to the continued functioning
of the banking system.
(2) An elaborate mechanism has been developed for investigating and
evaluating the credit worthiness, credit standing, credit capacity,
character, and general reputation of consumers.
(3) Consumer reporting agencies have assumed a vital role in assembling
and evaluating consumer credit and other information on consumers.
(4) There is a need to insure that consumer reporting agencies exercise
their grave responsibilities with fairness, impartiality, and a respect
for the consumer’s right to privacy.
(b) Reasonable procedures. It is the purpose of this title to require that
consumer reporting agencies adopt reasonable procedures for meeting the
needs of commerce for consumer credit, personnel, insurance, and other
information in a manner which is fair and equitable to the consumer, with
regard to the confidentiality, accuracy, relevancy, and proper utilization of
such information in accordance with the requirements of this title.
§603. Definitions; rules of construction [15 U.S.C. §1681a]
(a) Definitions and rules of construction set forth in this section are applicable
for the purposes of this title.
(b) The term “person” means any individual, partnership, corporation, trust,
estate, cooperative, association, government or governmental subdivision
or agency, or other entity.
(c) The term “consumer” means an individual.
(d) Consumer 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,
2
§ 603 - 15 U.S.C. § 1681a
credit capacity, character, general reputation, personal characteristics,
or mode of living which is used or expected to be used or collected in
whole or in part for the purpose of serving as a factor in establishing
the consumer’s eligibility for
(A) credit or insurance to be used primarily for personal, family, or
household purposes;
(B) employment purposes; or
(C) any other purpose authorized under section 604 [§ 1681b].
(2) Exclusions. Except as provided in paragraph (3), the term “consumer
report” does not include
(A) subject to section 624, any
(i) report containing information solely as to transactions or
experiences between the consumer and the person making
the report;
(ii) communication of that information among persons related
by common ownership or affiliated by corporate control;
or
(iii) communication of other information among persons
related by common ownership or affiliated by corporate
control, if it is clearly and conspicuously disclosed to
the consumer that the information may be communicated
among such persons and the consumer is given the
opportunity, before the time that the information is initially
communicated, to direct that such information not be
communicated among such persons;
(B) any authorization or approval of a specific extension of credit
directly or indirectly by the issuer of a credit card or similar
device;
(C) any report in which a person who has been requested by a third
party to make a specific extension of credit directly or indirectly
to a consumer conveys his or her decision with respect to such
request, if the third party advises the consumer of the name and
address of the person to whom the request was made, and such
person makes the disclosures to the consumer required under
section 615 [§ 1681m]; or
(D) a communication described in subsection (o) or (x).
1
1 Should be read as “(o) or (y)” because section 603(x) was re-designated as 603(y) in 2010 by the CFPA.
§ 603 - 15 U.S.C. § 1681a
3
(3) Restriction on sharing of medical information. Except for information
or any communication of information disclosed as provided in section
604(g)(3), the exclusions in paragraph (2) shall not apply with respect
to information disclosed to any person related by common ownership
or affiliated by corporate control, if the information is –
(A) medical information;
(B) an individualized list or description based on the payment
transactions of the consumer for medical products or services; or
(C) an aggregate list of identified consumers based on payment
transactions for medical products or services.
(e) The term “investigative consumer report” means a consumer report or
portion thereof in which information on a consumer’s character, general
reputation, personal characteristics, or mode of living is obtained through
personal interviews with neighbors, friends, or associates of the consumer
reported on or with others with whom he is acquainted or who may have
knowledge concerning any such items of information. However, such
information shall not include specific factual information on a consumer’s
credit record obtained directly from a creditor of the consumer or from a
consumer reporting agency when such information was obtained directly
from a creditor of the consumer or from the consumer.
(f) The term “consumer reporting agency” means any person which, for
monetary fees, dues, or on a cooperative nonprofit basis, regularly engages
in whole or in part in the practice of assembling or evaluating consumer
credit information or other information on consumers for the purpose of
furnishing consumer reports to third parties, and which uses any means or
facility of interstate commerce for the purpose of preparing or furnishing
consumer reports.
(g) The term “file,” when used in connection with information on any
consumer, means all of the information on that consumer recorded and
retained by a consumer reporting agency regardless of how the information
is stored.
(h) The term “employment purposes” when used in connection with a
consumer report means a report used for the purpose of evaluating a
consumer for employment, promotion, reassignment or retention as an
employee.
(i) The term “medical information” –
(1) means information or data, whether oral or recorded, in any form
or medium, created by or derived from a health care provider or the
consumer, that relates to –
4
§ 603 - 15 U.S.C. § 1681a
(A) the past, present, or future physical, mental, or behavioral
health or condition of an individual;
(B) the provision of health care to an individual; or
(C) the payment for the provision of health care to an individual.
(2) does not include the age or gender of a consumer, demographic
information about the consumer, including a consumer’s residence
address or e-mail address, or any other information about a consumer
that does not relate to the physical, mental, or behavioral health or
condition of a consumer, including the existence or value of any
insurance policy.
(j) Definitions Relating to Child Support Obligations
(1) The “overdue support” has the meaning given to such term in section
666(e) of title 42 [Social Security Act, 42 U.S.C. § 666(e)].
(2) The term “State or local child support enforcement agency” means a
State or local agency which administers a State or local program for
establishing and enforcing child support obligations.
(k) Adverse Action
(1) Actions included. The term “adverse action” –
(A) has the same meaning as in section 701(d)(6) of the Equal
Credit Opportunity Act; and
(B) means
(i) a denial or cancellation of, an increase in any charge for,
or a reduction or other adverse or unfavorable change in
the terms of coverage or amount of, any insurance,
existing or applied for, in connection with the underwriting
of insurance;
(ii) a denial of employment or any other decision for
employment purposes that adversely affects any current or
prospective employee;
(iii) a denial or cancellation of, an increase in any charge for,
or any other adverse or unfavorable change in the terms
of, any license or benefit described in section 604(a)(3)(D)
[§ 1681b]; and
(iv) an action taken or determination that is
(I) made in connection with an application that was made
by, or a transaction that was initiated by, any
§ 603 - 15 U.S.C. § 1681a
5
consumer, or in connection with a review of an
account under section 604(a)(3)(F)(ii)[§ 1681b]; and
(II) adverse to the interests of the consumer.
(2) Applicable findings, decisions, commentary, and orders. For purposes
of any determination of whether an action is an adverse action under
paragraph (1)(A), all appropriate final findings, decisions, commentary,
and orders issued under section 701(d)(6) of the Equal Credit
Opportunity Act by the Bureau or any court shall apply.
(l) The term “firm offer of credit or insurance” means any offer of credit or
insurance to a consumer that will be honored if the consumer is
determined, based on information in a consumer report on the consumer,
to meet the specific criteria used to select the consumer for the offer,
except that the offer may be further conditioned on one or more of the
following:
(1) The consumer being determined, based on information in the
consumer’s application for the credit or insurance, to meet specific
criteria bearing on credit worthiness or insurability, as applicable,
that are established
(A) before selection of the consumer for the offer; and
(B) for the purpose of determining whether to extend credit or
insurance pursuant to the offer.
(2) Verification
(A) that the consumer continues to meet the specific criteria used
to select the consumer for the offer, by using information in a
consumer report on the consumer, information in the consumer’s
application for the credit or insurance, or other information
bearing on the credit worthiness or insurability of the
consumer; or
(B) of the information in the consumer’s application for the credit
or insurance, to determine that the consumer meets the specific
criteria bearing on credit worthiness or insurability.
(3) The consumer furnishing any collateral that is a requirement for the
extension of the credit or insurance that was
(A) established before selection of the consumer for the offer of
credit or insurance; and
(B) disclosed to the consumer in the offer of credit or insurance.
6
§ 603 - 15 U.S.C. § 1681a
(m) The term “credit or insurance transaction that is not initiated by the
consumer” does not include the use of a consumer report by a person with
which the consumer has an account or insurance policy, for purposes of
(1) reviewing the account or insurance policy; or
(2) collecting the account.
(n) The term “State” means any State, the Commonwealth of Puerto Rico, the
District of Columbia, and any territory or possession of the United States.
(o) Excluded communications. A communication is described in this
subsection if it is a communication
(1) that, but for subsection (d)(2)(D), would be an investigative
consumer report;
(2) that is made to a prospective employer for the purpose of
(A) procuring an employee for the employer; or
(B) procuring an opportunity for a natural person to work for the
employer;
(3) that is made by a person who regularly performs such procurement;
(4) that is not used by any person for any purpose other than a purpose
described in subparagraph (A) or (B) of paragraph (2); and
(5) with respect to which
(A) the consumer who is the subject of the communication
(i) consents orally or in writing to the nature and scope of the
communication, before the collection of any information
for the purpose of making the communication;
(ii) consents orally or in writing to the making of the
communication to a prospective employer, before the
making of the communication; and
(iii) in the case of consent under clause (i) or (ii) given orally,
is provided written confirmation of that consent by the
person making the communication, not later than 3 business
days after the receipt of the consent by that person;
(B) the person who makes the communication does not, for the
purpose of making the communication, make any inquiry that
if made by a prospective employer of the consumer who is the
subject of the communication would violate any applicable
Federal or State equal employment opportunity law or
regulation; and
§ 603 - 15 U.S.C. § 1681a
7
(C) the person who makes the communication
(i) discloses in writing to the consumer who is the subject of
the communication, not later than 5 business days after
receiving any request from the consumer for such
disclosure, the nature and substance of all information in
the consumer’s file at the time of the request, except that
the sources of any information that is acquired solely for
use in making the communication and is actually used for
no other purpose, need not be disclosed other than under
appropriate discovery procedures in any court of competent
jurisdiction in which an action is brought; and
(ii) notifies the consumer who is the subject of the
communication, in writing, of the consumer’s right to
request the information described in clause (i).
(p) The term “consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis” means a consumer reporting agency that
regularly engages in the practice of assembling or evaluating, and
maintaining, for the purpose of furnishing consumer reports to third parties
bearing on a consumer’s credit worthiness, credit standing, or credit
capacity, each of the following regarding consumers residing nationwide:
(1) Public record information.
(2) Credit account information from persons who furnish that
information regularly and in the ordinary course of business.
(q) Definitions relating to fraud alerts.
(1) The term “active duty military consumer” means a consumer in
military service who –
(A) is on active duty (as defined in section 101(d)(1) of title 10,
United States Code) or is a reservist performing duty under a
call or order to active duty under a provision of law referred to
in section 101(a)(13) of title 10, United States Code; and
(B) is assigned to service away from the usual duty station of the
consumer.
(2) The terms “fraud alert” and “active duty alert” mean a statement in
the file of a consumer that –
(A) notifies all prospective users of a consumer report relating to
the consumer that the consumer may be a victim of fraud,
including identity theft, or is an active duty military consumer,
as applicable; and
8
§ 603 - 15 U.S.C. § 1681a
(B) is presented in a manner that facilitates a clear and conspicuous
view of the statement described in subparagraph (A) by any
person requesting such consumer report.
(3) The term “identity theft” means a fraud committed using the
identifying information of another person, subject to such further
definition as the Bureau may prescribe, by regulation.
See also 16 CFR Part 603.2
69 Fed. Reg. 63922 (11/03/04)
(4) The term “identity theft report” has the meaning given that term by
rule of the Bureau, and means, at a minimum, a report –
See also 16 CFR Part 603.3
69 Fed. Reg. 63922 (11/03/04)
(A) that alleges an identity theft;
(B) that is a copy of an official, valid report filed by a consumer
with an appropriate Federal, State, or local law enforcement
agency, including the United States Postal Inspection Service,
or such other government agency deemed appropriate by the
Bureau; and
(C) the filing of which subjects the person filing the report to
criminal penalties relating to the filing of false information if,
in fact, the information in the report is false.
(5) The term “new credit plan” means a new account under an open end
credit plan (as defined in section 103(i) of the Truth in Lending Act)
or a new credit transaction not under an open end credit plan.
(r) Credit and Debit Related Terms
(1) The term “card issuer” means –
(A) a credit card issuer, in the case of a credit card; and
(B) a debit card issuer, in the case of a debit card.
(2) The term “credit card” has the same meaning as in section 103 of the
Truth in Lending Act.
(3) The term “debit card” means any card issued by a financial institution
to a consumer for use in initiating an electronic fund transfer from
the account of the consumer at such financial institution, for the
purpose of transferring money between accounts or obtaining money,
property, labor, or services.
(4) The terms “account” and “electronic fund transfer” have the same
meanings as in section 903 of the Electronic Fund Transfer Act.
§ 603 - 15 U.S.C. § 1681a
9
(5) The terms “credit” and “creditor” have the same meanings as in
section 702 of the Equal Credit Opportunity Act.
(s) The term “Federal banking agency” has the same meaning as in section 3
of the Federal Deposit Insurance Act.
(t) The term “financial institution” means a State or National bank, a State
or Federal savings and loan association, a mutual savings bank, a State or
Federal credit union, or any other person that, directly or indirectly, holds
a transaction account (as defined in section 19(b) of the Federal Reserve
Act) belonging to a consumer.
(u) The term “reseller” means a consumer reporting agency that –
(1) assembles and merges information contained in the database of
another consumer reporting agency or multiple consumer reporting
agencies concerning any consumer for purposes of furnishing such
information to any third party, to the extent of such activities; and
(2) does not maintain a database of the assembled or merged information
from which new consumer reports are produced.
(v) The term “Commission” means the Federal Trade Commission.
(w) The term “Bureau” means the Bureau of Consumer Financial Protection.
(x) The term “nationwide specialty consumer reporting agency” means a
consumer reporting agency that compiles and maintains files on consumers
on a nationwide basis relating to –
(1) medical records or payments;
(2) residential or tenant history;
(3) check writing history;
(4) employment history; or
(5) insurance claims.
(y) Exclusion of Certain Communications for Employee Investigations
(1) A communication is described in this subsection if –
(A) but for subsection (d)(2)(D), the communication would be a
consumer report;
(B) the communication is made to an employer in connection with
an investigation of –
(i) suspected misconduct relating to employment; or
10
§ 603 - 15 U.S.C. § 1681a
(ii) compliance with Federal, State, or local laws and
regulations, the rules of a self-regulatory organization,
or any preexisting written policies of the employer;
(C) the communication is not made for the purpose of investigating
a consumer’s credit worthiness, credit standing, or credit
capacity; and
(D) the communication is not provided to any person except –
(i) to the employer or an agent of the employer;
(ii) to any Federal or State officer, agency, or department,
or any officer, agency, or department of a unit of general
local government;
(iii) to any self-regulatory organization with regulatory
authority over the activities of the employer or employee;
(iv) as otherwise required by law; or
(v) pursuant to section 608.
(2) Subsequent disclosure. After taking any adverse action based in
whole or in part on a communication described in paragraph (1), the
employer shall disclose to the consumer a summary containing the
nature and substance of the communication upon which the adverse
action is based, except that the sources of information acquired solely
for use in preparing what would be but for subsection (d)(2)(D) an
investigative consumer report need not be disclosed.
(3) For purposes of this subsection, the term “self-regulatory organization”
includes any self-regulatory organization (as defined in section 3(a)
(26) of the Securities Exchange Act of 1934), any entity established
under title I of the Sarbanes-Oxley Act of 2002, any board of trade
designated by the Commodity Futures Trading Commission, and any
futures association registered with such Commission.
(z) Veteran. The term ‘veteran’ has the meaning given the term in section
101 of title 38, United States Code.
(aa) Veteran’s medical debt. The term ‘veteran’s medical debt’
(1) means a medical collection debt of a veteran owed to a non-Department
of Veterans Affairs health care provider that was submitted to the
Department for payment for health care authorized by the
Department of Veterans Affairs; and
(2) includes medical collection debt that the Department of Veterans
Affairs has wrongfully charged a veteran.
§ 604 - 15 U.S.C. § 1681b
11
§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.
2
(G) executive departments and agencies in connection with the
issuance of government-sponsored individually-billed travel
charge cards.
2
2 As written in the 2007 amendment that added section 604(a)(3)(G). Subsection F(ii) should end with “;
or” instead of a period, and the text of subsection (g) should conform to the style of the rest of section
605(a)(3).
12
§ 604 - 15 U.S.C. § 1681b
(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, determining
the appropriate level of such payments, or enforcing a child
support order, award, agreement, or judgment;
(B) the parentage 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); and
(C) 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.
(D) Redesignated (C)
(5) To an agency administering a State plan under Section 454 of the
Social Security Act (42 U.S.C. § 654) for use to set an initial or
modified child support award.
(6) To the Federal Deposit Insurance Corporation or the National Credit
Union Administration as part of its preparation for its appointment or
as part of its exercise of powers, as conservator, receiver, or
liquidating agent for an insured depository institution or insured
credit union under the Federal Deposit Insurance Act or the Federal
Credit Union Act, or other applicable Federal or State law, or in
connection with the resolution or liquidation of a failed or failing
insured depository institution or insured credit union, as applicable.
(b) Conditions for Furnishing and Using Consumer Reports for Employment
Purposes.
(1) Certification from user. A consumer reporting agency may furnish a
consumer report for employment purposes only if
(A) the person who obtains such report from the agency certifies to
the agency that
(i) the person has complied with paragraph (2) with respect
to the consumer report, and the person will comply with
paragraph (3) with respect to the consumer report if
paragraph (3) becomes applicable; and
§ 604 - 15 U.S.C. § 1681b
13
(ii) information from the consumer report will not be used in
violation of any applicable Federal or State equal
employment opportunity law or regulation; and
(B) the consumer reporting agency provides with the report, or has
previously provided, a summary of the consumer’s rights under
this title, as prescribed by the Bureau under section 609(c)(3)
[§ 1681g].
(2) Disclosure to Consumer.
(A) In general. Except as provided in subparagraph (B), a person
may not procure a consumer report, or cause a consumer report
to be procured, for employment purposes with respect to any
consumer, unless –
(i) a clear and conspicuous disclosure has been made in
writing to the consumer at any time before the report is
procured or caused to be procured, in a document that
consists solely of the disclosure, that a consumer report
may be obtained for employment purposes; and
(ii) the consumer has authorized in writing (which authorization
may be made on the document referred to in clause (i)) the
procurement of the report by that person.
(B) Application by mail, telephone, computer, or other similar
means. If a consumer described in subparagraph (C) applies
for employment by mail, telephone, computer, or other similar
means, at any time before a consumer report is procured or
caused to be procured in connection with that application –
(i) the person who procures the consumer report on the
consumer for employment purposes shall provide to the
consumer, by oral, written, or electronic means, notice
that a consumer report may be obtained for employment
purposes, and a summary of the consumer’s rights under
section 615(a)(3); and
(ii) the consumer shall have consented, orally, in writing,
or electronically to the procurement of the report by that
person.
(C) Scope. Subparagraph (B) shall apply to a person procuring a
consumer report on a consumer in connection with the
consumer’s application for employment only if –
14
§ 604 - 15 U.S.C. § 1681b
(i) the consumer is applying for a position over which the
Secretary of Transportation has the power to establish
qualifications and maximum hours of service pursuant to
the provisions of section 31502 of title 49, or a
position subject to safety regulation by a State
transportation agency; and
(ii) as of the time at which the person procures the report
or causes the report to be procured the only interaction
between the consumer and the person in connection with
that employment application has been by mail, telephone,
computer, or other similar means.
(3) Conditions on use for adverse actions.
(A) In general. Except as provided in subparagraph (B), in using
a consumer report for employment purposes, before taking
any adverse action based in whole or in part on the report, the
person intending to take such adverse action shall provide to the
consumer to whom the report relates –
(i) a copy of the report; and
(ii) a description in writing of the rights of the consumer
under this title, as prescribed by the Bureau under section
609(c)(3).
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;
3 The references in Sections 604(b)(3)(A) and 604(b)(3)(B) should be to Section 609(c)(1), not (c)(3) that no
longer exists as the result of Congress’ re-organization of Section 609(c) in 2003 (FACT Act).
§ 604 - 15 U.S.C. § 1681b
15
(II) of the name, address and telephone number of the
consumer reporting agency that furnished the
consumer report (including a toll-free telephone
number established by the agency if the agency
compiles and maintains files on consumers on a
nationwide basis);
(III) that the consumer reporting agency did not make the
decision to take the adverse action and is unable to
provide to the consumer the specific reasons why the
adverse action was taken; and
(IV) that the consumer may, upon providing proper
identification, request a free copy of a report and may
dispute with the consumer reporting agency the
accuracy or completeness of any information in a
report.
(ii) If, under clause (B)(i)(IV), the consumer requests a copy
of a consumer report from the person who procured the
report, then, within 3 business days of receiving the
consumer’s request, together with proper identification,
the person must send or provide to the consumer a copy of
a report and a copy of the consumer’s rights as prescribed
by the Bureau under section 609(c)(3).
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
16
§ 604 - 15 U.S.C. § 1681b
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
§ 604 - 15 U.S.C. § 1681b
17
authorities under this paragraph to an official of such agency or
department who has personnel security responsibilities and is a
member of the Senior Executive Service or equivalent civilian
or military rank.
(D) Definitions. For purposes of this paragraph, the following
definitions shall apply:
(i) Classified information. The term “classified information”
means information that is protected from unauthorized
disclosure under Executive Order No. 12958 or successor
orders.
(ii) National security investigation. The term “national security
investigation” means any official inquiry by an agency or
department of the United States Government to determine
the eligibility of a consumer to receive access or continued
access to classified information or to determine whether
classified information has been lost or compromised.
(c) Furnishing reports in connection with credit or insurance transactions that
are not initiated by the consumer.
(1) In general. A consumer reporting agency may furnish a consumer
report relating to any consumer pursuant to subparagraph (A) or (C)
of subsection (a)(3) in connection with any credit or insurance
transaction that is not initiated by the consumer only if
(A) the consumer authorizes the agency to provide such report to
such person; or
(B) (i) the transaction consists of a firm offer of credit or insurance;
(ii) the consumer reporting agency has complied with
subsection (e);
(iii) there is not in effect an election by the consumer, made
in accordance with subsection (e), to have the consumer’s
name and address excluded from lists of names provided
by the agency pursuant to this paragraph; and
(iv) the consumer report does not contain a date of birth that
shows that the consumer has not attained the age of 21,
or, if the date of birth on the consumer report shows that
the consumer has not attained the age of 21, such
consumer consents to the consumer reporting agency to
such furnishing.
18
§ 604 - 15 U.S.C. § 1681b
(2) Limits on information received under paragraph (1)(B). A person
may receive pursuant to paragraph (1)(B) only
(A) the name and address of a consumer;
(B) an identifier that is not unique to the consumer and that is used
by the person solely for the purpose of verifying the identity of
the consumer; and
(C) other information pertaining to a consumer that does not identify
the relationship or experience of the consumer with respect to a
particular creditor or other entity.
(3) Information regarding inquiries. Except as provided in section
609(a)(5) [§ 1681g], a consumer reporting agency shall not furnish to
any person a record of inquiries in connection with a credit or
insurance transaction that is not initiated by a consumer.
(d) Reserved.
(e) Election of consumer to be excluded from lists.
(1) In general. A consumer may elect to have the consumer’s name and
address excluded from any list provided by a consumer reporting
agency under subsection (c)(1)(B) in connection with a credit or
insurance transaction that is not initiated by the consumer, by
notifying the agency in accordance with paragraph (2) that the
consumer does not consent to any use of a consumer report relating
to the consumer in connection with any credit or insurance
transaction that is not initiated by the consumer.
(2) Manner of notification. A consumer shall notify a consumer
reporting agency under paragraph (1)
(A) through the notification system maintained by the agency under
paragraph (5); or
(B) by submitting to the agency a signed notice of election form
issued by the agency for purposes of this subparagraph.
(3) Response of agency after notification through system. Upon receipt
of notification of the election of a consumer under paragraph (1)
through the notification system maintained by the agency under
paragraph (5), a consumer reporting agency shall
(A) inform the consumer that the election is effective only for the
5-year period following the election if the consumer does not
submit to the agency a signed notice of election form issued by
the agency for purposes of paragraph (2)(B); and
§ 604 - 15 U.S.C. § 1681b
19
(B) provide to the consumer a notice of election form, if requested
by the consumer, not later than 5 business days after receipt of
the notification of the election through the system established
under paragraph (5), in the case of a request made at the time
the consumer provides notification through the system.
(4) Effectiveness of election. An election of a consumer under
paragraph (1)
(A) shall be effective with respect to a consumer reporting agency
beginning 5 business days after the date on which the consumer
notifies the agency in accordance with paragraph (2);
(B) shall be effective with respect to a consumer reporting agency
(i) subject to subparagraph (C), during the 5-year period
beginning 5 business days after the date on which the
consumer notifies the agency of the election, in the case of
an election for which a consumer notifies the agency only
in accordance with paragraph (2)(A); or
(ii) until the consumer notifies the agency under subparagraph
(C), in the case of an election for which a consumer
notifies the agency in accordance with paragraph (2)(B);
(C) shall not be effective after the date on which the consumer
notifies the agency, through the notification system established
by the agency under paragraph (5), that the election is no
longer effective; and
(D) shall be effective with respect to each affiliate of the agency.
(5) Notification System
(A) In general. Each consumer reporting agency that, under
subsection (c)(1)(B), furnishes a consumer report in connection
with a credit or insurance transaction that is not initiated by a
consumer, shall
(i) establish and maintain a notification system, including a
toll-free telephone number, which permits any consumer
whose consumer report is maintained by the agency to
notify the agency, with appropriate identification, of the
consumer’s election to have the consumer’s name and
address excluded from any such list of names and addresses
provided by the agency for such a transaction; and
(ii) publish by not later than 365 days after the date of enactment
of the Consumer Credit Reporting Reform Act of 1996,
20
§ 604 - 15 U.S.C. § 1681b
and not less than annually thereafter, in a publication of
general circulation in the area served by the agency
(I) a notification that information in consumer files
maintained by the agency may be used in connection
with such transactions; and
(II) the address and toll-free telephone number for
consumers to use to notify the agency of the
consumer’s election under clause (I).
(B) Establishment and maintenance as compliance. Establishment
and maintenance of a notification system (including a toll-free
telephone number) and publication by a consumer reporting
agency on the agency’s own behalf and on behalf of any of its
affiliates in accordance with this paragraph is deemed to be
compliance with this paragraph by each of those affiliates.
(6) Notification system by agencies that operate nationwide. Each
consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis shall establish and maintain a
notification system for purposes of paragraph (5) jointly with other
such consumer reporting agencies.
(f) Certain use or obtaining of information prohibited. A person shall not use
or obtain a consumer report for any purpose unless
(1) the consumer report is obtained for a purpose for which the consumer
report is authorized to be furnished under this section; and
(2) the purpose is certified in accordance with section 607 [§ 1681e]
by a prospective user of the report through a general or specific
certification.
(g) Protection of Medical Information
(1) Limitation on consumer reporting agencies. A consumer reporting
agency shall not furnish for employment purposes, or in connection
with a credit or insurance transaction, a consumer report that contains
medical information (other than medical contact information treated
in the manner required under section 605(a)(6)) about a consumer,
unless –
(A) if furnished in connection with an insurance transaction, the
consumer affirmatively consents to the furnishing of the report;
(B) if furnished for employment purposes or in connection with a
credit transaction –
§ 604 - 15 U.S.C. § 1681b
21
(i) the information to be furnished is relevant to process or
effect the employment or credit transaction; and
(ii) the consumer provides specific written consent for the
furnishing of the report that describes in clear and
conspicuous language the use for which the information
will be furnished; or
(C) the information to be furnished pertains solely to transactions,
accounts, or balances relating to debts arising from the receipt
of medical services, products, or devises, where such
information, other than account status or amounts, is restricted
or reported using codes that do not identify, or do not provide
information sufficient to infer, the specific provider or the
nature of such services, products, or devices, as provided in
section 605(a)(6).
(2) Limitation on creditors. Except as permitted pursuant to paragraph
(3)(C) or regulations prescribed under paragraph (5)(A), a creditor
shall not obtain or use medical information (other than medical contact
information treated in the manner required under section 605(a)(6))
pertaining to a consumer in connection with any determination of the
consumer’s eligibility, or continued eligibility, for credit.
(3) Actions authorized by federal law, insurance activities and regulatory
determinations. Section 603(d)(3) shall not be construed so as to
treat information or any communication of information as a consumer
report if the information or communication is disclosed –
(A) in connection with the business of insurance or annuities,
including the activities described in section 18B of the model
Privacy of Consumer Financial and Health Information
Regulation issued by the National Association of Insurance
Commissioners (as in effect on January 1, 2003);
(B) for any purpose permitted without authorization under the
Standards for Individually Identifiable Health Information
promulgated by the Department of Health and Human Services
pursuant to the Health Insurance Portability and Accountability
Act of 1996, or referred to under section 1179 of such Act, or
described in section 502(e) of Public Law 106-102; or
(C) as otherwise determined to be necessary and appropriate, by
regulation or order, by the Bureau or the applicable State
insurance authority (with respect to any person engaged in
providing insurance or annuities).
22
§605 - 15 U.S.C. § 1681c
(4) Limitation on redisclosure of medical information. Any person that
receives medical information pursuant to paragraph (1) or (3) shall
not disclose such information to any other person, except as necessary
to carry out the purpose for which the information was initially
disclosed, or as otherwise permitted by statute, regulation, or order.
(5) Regulations and Effective Date for Paragraph (2)
(A)
4
Regulations required. The Bureau may, after notice and
opportunity for comment, prescribe regulations that permit
transactions under paragraph (2) that are determined to be
necessary and appropriate to protect legitimate operational,
transactional, risk, consumer, and other needs (and which shall
include permitting actions necessary for administrative verica-
tion purposes), consistent with the intent of paragraph (2) to
restrict the use of medical information for inappropriate purposes.
See also 12 CFR Parts 41/222/232/334/571/717
70 Fed. Reg. 70664 (11/22/05)
(6) Coordination with other laws. No provision of this subsection shall
be construed as altering, affecting, or superseding the applicability of
any other provision of Federal law relating to medical confidentiality.
§605. Requirements relating to information contained in
consumer reports [15 U.S.C. § 1681c]
(a) Information excluded from consumer reports. Except as authorized under
subsection (b) of this section, no consumer reporting agency may make
any consumer report containing any of the following items of information:
(1) Cases under title 11 [United States Code] or under the Bankruptcy
Act that, from the date of entry of the order for relief or the date of
adjudication, as the case may be, antedate the report by more than
10 years.
(2) Civil suits, civil judgments, and records of arrest that from date
of entry, antedate the report by more than seven years or until the
governing statute of limitations has expired, whichever is the longer
period.
(3) Paid tax liens which, from date of payment, antedate the report by
more than seven years.
4 As written in section 1088(a)(4)(B) of the CFPA in 2010. The previous version of section 604(b)(5),
added in 2003 by the FACT Act, contained two subsections (A) and (B). The latter stated that the rules
required to be prescribed by the Federal financial agencies (not including the Commission) be finalized by
June 4, 2004.
§605 - 15 U.S.C. § 1681c
23
(4) Accounts placed for collection or charged to profit and loss which
antedate the report by more than seven years.
5
(5) Any other adverse item of information, other than records of convic-
tions of crimes which antedates the report by more than seven years.
5
(6) The name, address, and telephone number of any medical information
furnisher that has notified the agency of its status, unless –
(A) such name, address, and telephone number are restricted or
reported using codes that do not identify, or provide information
sufficient to infer, the specific provider or the nature of such
services, products, or devices to a person other than the
consumer; or
(B) the report is being provided to an insurance company for a
purpose relating to engaging in the business of insurance other
than property and casualty insurance.
(7) With respect to a consumer reporting agency described in section
603(p), any information related to a veteran’s medical debt if the
date on which the hospital care, medical services, or extended care
services was rendered relating to the debt antedates the report by less
than 1 year if the consumer reporting agency has actual knowledge
that the information is related to a veteran’s medical debt and the
consumer reporting agency is in compliance with its obligation under
section 302(c)(5) of the Economic Growth, Regulatory Relief, and
Consumer Protection Act.
(8) With respect to a consumer reporting agency described in section
603(p), any information related to a fully paid or settled veteran’s
medical debt that had been characterized as delinquent, charged off,
or in collection if the consumer reporting agency has actual knowledge
that the information is related to a veteran’s medical debt and the
consumer reporting agency is in compliance with its obligation under
section 302(c)(5) of the Economic Growth, Regulatory Relief, and
Consumer Protection Act.
(b) Exempted cases. The provisions of paragraphs (1) through (5) of
subsection (a) of this section are not applicable in the case of any
consumer credit report to be used in connection with
(1) a credit transaction involving, or which may reasonably be expected
to involve, a principal amount of $150,000 or more;
5 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.
24
§605 - 15 U.S.C. § 1681c
(2) the underwriting of life insurance involving, or which may reason-
ably 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)
6
of subsection (a) shall begin, with respect to any delinquent account
that is placed for collection (internally or by referral to a third party,
whichever is earlier), charged to profit and loss, or subjected to any
similar action, upon the expiration of the 180-day period beginning
on the date of the commencement of the delinquency which
immediately preceded the collection activity, charge to profit and
loss, or similar action.
(2) Effective date. Paragraph (1) shall apply only to items of information
added to the file of a consumer on or after the date that is 455 days
after the date of enactment of the Consumer Credit Reporting Reform
Act of 1996.
(d) Information Required to be Disclosed
(1) Title 11 information. Any consumer reporting agency that furnishes
a consumer report that contains information regarding any case
involving the consumer that arises under title 11, United States Code,
shall include in the report an identification of the chapter of such
title 11 under which such case arises if provided by the source of the
information. If any case arising or filed under title 11, United States
Code, is withdrawn by the consumer before a final judgment, the
consumer reporting agency shall include in the report that such case
or filing was withdrawn upon receipt of documentation certifying
such withdrawal.
(2) Key factor in credit score information. Any consumer reporting
agency that furnishes a consumer report that contains any credit score
or any other risk score or predictor on any consumer shall include
in the report a clear and conspicuous statement that a key factor (as
defined in section 609(f)(2)(B)) that adversely affected such score or
predictor was the number of enquiries, if such a predictor was in fact
a key factor that adversely affected such score. This paragraph shall
not apply to a check services company, acting as such, which issues
authorizations for the purpose of approving or processing negotiable
6 This provision, added in September 1996, should read “paragraphs (4) and (5)....” Prior Section 605(a)(6)
was amended and re-designated as Section 605(a)(5) in November 1998. The current Section 605(a)(6),
added in December 2003 and now containing no reference to any 7-year period, is obviously inapplicable.
§605 - 15 U.S.C. § 1681c
25
instruments, electronic fund transfers, or similar methods of payments,
but only to the extent that such company is engaged in such activities.
(e) Indication of closure of account by consumer. If a consumer reporting
agency is notified pursuant to section 623(a)(4) [§ 1681s-2] that a credit
account of a consumer was voluntarily closed by the consumer, the agency
shall indicate that fact in any consumer report that includes information
related to the account.
(f) Indication of dispute by consumer. If a consumer reporting agency is
notified pursuant to section 623(a)(3) [§ 1681s-2] that information
regarding a consumer who was furnished to the agency is disputed by the
consumer, the agency shall indicate that fact in each consumer report that
includes the disputed information.
(g) Truncation of Credit Card and Debit Card Numbers
(1) In general. Except as otherwise provided in this subsection, no
person that accepts credit cards or debit cards for the transaction of
business shall print more than the last 5 digits of the card number or
the expiration date upon any receipt provided to the cardholder at the
point of the sale or transaction.
(2) Limitation. This subsection shall apply only to receipts that are
electronically printed, and shall not apply to transactions in which the
sole means of recording a credit card or debit card account number is
by handwriting or by an imprint or copy of the card.
(3) Effective date. This subsection shall become effective –
(A) 3 years after the date of enactment of this subsection, with
respect to any cash register or other machine or device that
electronically prints receipts for credit card or debit card
transactions that is in use before January 1, 2005; and
(B) 1 year after the date of enactment of this subsection, with
respect to any cash register or other machine or device that
electronically prints receipts for credit card or debit card
transactions that is first put into use on or after January 1, 2005.
(h) Notice of Discrepancy in Address
(1) In general. If a person has requested a consumer report relating to
a consumer from a consumer reporting agency described in section
603(p), the request includes an address for the consumer that
substantially differs from the addresses in the file of the consumer,
and the agency provides a consumer report in response to the request,
26
§605A - 15 U.S.C. § 1681c-1
the consumer reporting agency shall notify the requester of the
existence of the discrepancy.
See also 16 CFR Part 641
72 Fed. Reg. 63771-72 (11/09/07)
74 Fed. Reg. 22640-41 (05/14/09)
(2) Regulations
(A) Regulations required. The Bureau shall, in consultation with
the Federal banking agencies, the National Credit Union
Administration, and the Federal Trade Commission, prescribe
regulations providing guidance regarding reasonable policies
and procedures that a user of a consumer report should employ
when such user has received a notice of discrepancy under
paragraph (1).
(B) Policies and procedures to be included. The regulations
prescribed under subparagraph (A) shall describe reasonable
policies and procedures for use by a user of a consumer report –
(i) to form a reasonable belief that the user knows the identity
of the person to whom the consumer report pertains; and
(ii) if the user establishes a continuing relationship with the
consumer, and the user regularly and in the ordinary course
of business furnishes information to the consumer reporting
agency from which the notice of discrepancy pertaining to
the consumer was obtained, to reconcile the address of the
consumer with the consumer reporting agency by furnishing
such address to such consumer reporting agency as part of
information regularly furnished by the user for the period in
which the relationship is established.
§605A. Identity theft prevention; fraud alerts and active duty
alerts [15 U.S.C. § 1681c-1]
(a) One-call Fraud Alerts
(1) Initial alerts. Upon the direct request of a consumer, or an individual
acting on behalf of or as a personal representative of a consumer,
who asserts in good faith a suspicion that the consumer has been or is
about to become a victim of fraud or related crime, including identity
theft, a consumer reporting agency described in section 603(p) that
maintains a file on the consumer and has received appropriate proof
of the identity of the requester shall –
§605A - 15 U.S.C. § 1681c-1
27
(A) include a fraud alert in the file of that consumer, and also
provide that alert along with any credit score generated in using
that file, for a period of not less than 1 year, beginning on the
date of such request, unless the consumer or such representative
requests that such fraud alert be removed before the end of such
period, and the agency has received appropriate proof of the
identity of the requester for such purpose; and
(B) refer the information regarding the fraud alert under this
paragraph to each of the other consumer reporting agencies
described in section 603(p), in accordance with procedures
developed under section 621(f).
(2) Access to free reports. In any case in which a consumer reporting
agency includes a fraud alert in the file of a consumer pursuant to this
subsection, the consumer reporting agency shall –
(A) disclose to the consumer that the consumer may request a free
copy of the file of the consumer pursuant to section 612(d); and
(B) provide to the consumer all disclosures required to be made
under section 609, without charge to the consumer, not later
than 3 business days after any request described in
subparagraph (A).
(b) Extended Alerts
(1) In general. Upon the direct request of a consumer, or an individual
acting on behalf of or as a personal representative of a consumer,
who submits an identity theft report to a consumer reporting agency
described in section 603(p) that maintains a file on the consumer,
if the agency has received appropriate proof of the identity of the
requester, the agency shall –
(A) include a fraud alert in the file of that consumer, and also
provide that alert along with any credit score generated in using
that file, during the 7-year period beginning on the date of such
request, unless the consumer or such representative requests
that such fraud alert be removed before the end of such period
and the agency has received appropriate proof of the identity of
the requester for such purpose;
(B) during the 5-year period beginning on the date of such request,
exclude the consumer from any list of consumers prepared by
the consumer reporting agency and provided to any third party
to offer credit or insurance to the consumer as part of a
transaction that was not initiated by the consumer, unless the
28
§605A - 15 U.S.C. § 1681c-1
consumer or such representative requests that such exclusion be
rescinded before the end of such period; and
(C) refer the information regarding the extended fraud alert under
this paragraph to each of the other consumer reporting agen-
cies described in section 603(p), in accordance with procedures
developed under section 621(f).
(2) Access to free reports. In any case in which a consumer reporting
agency includes a fraud alert in the file of a consumer pursuant to this
subsection, the consumer reporting agency shall –
(A) disclose to the consumer that the consumer may request 2 free
copies of the file of the consumer pursuant to section 612(d)
during the 12-month period beginning on the date on which the
fraud alert was included in the file; and
(B) provide to the consumer all disclosures required to be made
under section 609, without charge to the consumer, not later
than 3 business days after any request described in
subparagraph (A).
(c) Active duty alerts. Upon the direct request of an active duty military
consumer, or an individual acting on behalf of or as a personal
representative of an active duty military consumer, a consumer reporting
agency described in section 603(p) that maintains a file on the active duty
military consumer and has received appropriate proof of the identity of the
requester shall –
(1) include an active duty alert in the file of that active duty military
consumer, and also provide that alert along with any credit score
generated in using that file, during a period of not less than 12
months, or such longer period as the Bureau shall determine, by
regulation, beginning on the date of the request, unless the active
duty military consumer or such representative requests that such
fraud alert be removed before the end of such period, and the agency
has received appropriate proof of the identity of the requester for
such purpose;
(2) during the 2-year period beginning on the date of such request,
exclude the active duty military consumer from any list of consumers
prepared by the consumer reporting agency and provided to any third
party to offer credit or insurance to the consumer as part of a
transaction that was not initiated by the consumer, unless the
consumer requests that such exclusion be rescinded before the end of
such period; and
§605A - 15 U.S.C. § 1681c-1
29
(3) refer the information regarding the active duty alert to each of the
other consumer reporting agencies described in section 603(p), in
accordance with procedures developed under section 621(f).
See also 16 CFR Part 613.1
69 Fed. Reg. 63922 (11/03/04)
(d) Procedures. Each consumer reporting agency described in section 603(p)
shall establish policies and procedures to comply with this section, including
procedures that inform consumers of the availability of initial, extended,
and active duty alerts and procedures that allow consumers and active duty
military consumers to request initial, extended, or active duty alerts (as
applicable) in a simple and easy manner, including by telephone.
(e) Referrals of alerts. Each consumer reporting agency described in section
603(p) that receives a referral of a fraud alert or active duty alert from
another consumer reporting agency pursuant to this section shall, as
though the agency received the request from the consumer directly, follow
the procedures required under –
(1) paragraphs (1)(A) and (2) of subsection (a), in the case of a referral
under subsection (a)(1)(B);
(2) paragraphs (1)(A), (1)(B), and (2) of subsection (b), in the case of a
referral under subsection (b)(1)(C); and
(3) paragraphs (1) and (2) of subsection (c), in the case of a referral
under subsection (c)(3).
(f) Duty of reseller to reconvey alert. A reseller shall include in its report
any fraud alert or active duty alert placed in the file of a consumer
pursuant to this section by another consumer reporting agency.
(g) Duty of other consumer reporting agencies to provide contact information.
If a consumer contacts any consumer reporting agency that is not
described in section 603(p) to communicate a suspicion that the consumer
has been or is about to become a victim of fraud or related crime,
including identity theft, the agency shall provide information to the
consumer on how to contact the Bureau and the consumer reporting
agencies described in section 603(p) to obtain more detailed information
and request alerts under this section.
(h) Limitations on Use of Information for Credit Extensions
(1) Requirements for initial and active duty alerts
(A) Notification. Each initial fraud alert and active duty alert under
this section shall include information that notifies all prospective
users of a consumer report on the consumer to which the alert
30
§605A - 15 U.S.C. § 1681c-1
relates that the consumer does not authorize the establishment
of any new credit plan or extension of credit, other than under
an open-end credit plan (as defined in section 103(i)), in the
name of the consumer, or issuance of an additional card on an
existing credit account requested by a consumer, or any
increase in credit limit on an existing credit account requested
by a consumer, except in accordance with subparagraph (B).
(B) Limitation on Users
(i) In general. No prospective user of a consumer report that
includes an initial fraud alert or an active duty alert in
accordance with this section may establish a new credit
plan or extension of credit, other than under an open-end
credit plan (as defined in section 103(i)), in the name of
the consumer, or issue an additional card on an existing
credit account requested by a consumer, or grant any
increase in credit limit on an existing credit account
requested by a consumer, unless the user utilizes reasonable
policies and procedures to form a reasonable belief that
the user knows the identity of the person making the request.
(ii) Verification. If a consumer requesting the alert has
specified a telephone number to be used for identity
verification purposes, before authorizing any new credit
plan or extension described in clause (i) in the name of
such consumer, a user of such consumer report shall
contact the consumer using that telephone number or take
reasonable steps to verify the consumer’s identity and
confirm that the application for a new credit plan is not
the result of identity theft.
(2) Requirements for Extended Alerts
(A) Notification. Each extended alert under this section shall
include information that provides all prospective users of a
consumer report relating to a consumer with –
(i) notification that the consumer does not authorize the
establishment of any new credit plan or extension of credit
described in clause (i), other than under an open-end
credit plan (as defined in section 103(i)), in the name of
the consumer, or issuance of an additional card on an
existing credit account requested by a consumer, or any
increase in credit limit on an existing credit account
§605A - 15 U.S.C. § 1681c-1
31
requested by a consumer, except in accordance with
subparagraph (B); and
(ii) a telephone number or other reasonable contact method
designated by the consumer.
(B) Limitation on users. No prospective user of a consumer report
or of a credit score generated using the information in the file
of a consumer that includes an extended fraud alert in
accordance with this section may establish a new credit plan or
extension of credit, other than under an open-end credit plan
(as defined in section 103(i)), in the name of the consumer, or
issue an additional card on an existing credit account requested
by a consumer, or any increase in credit limit on an existing
credit account requested by a consumer, unless the user
contacts the consumer in person or using the contact method
described in subparagraph (A)(ii) to confirm that the application
for a new credit plan or increase in credit limit, or request for
an additional card is not the result of identity theft.
(i) National security freeze.
(1) Definitions. For purposes of this subsection:
(A) The term ‘consumer reporting agency’ means a consumer
reporting agency described in section 603(p).
(B) The term ‘proper identification’ has the meaning of such term
as used under section 610.
(C) The term ‘security freeze’ means a restriction that prohibits a
consumer reporting agency from disclosing the contents of a
consumer report that is subject to such security freeze to any
person requesting the consumer report.
(2) Placement of security freeze.
(A) In general. Upon receiving a direct request from a consumer
that a consumer reporting agency place a security freeze, and
upon receiving proper identification from the consumer, the
consumer reporting agency shall, free of charge, place the
security freeze not later than –
(i) in the case of a request that is by toll-free telephone or
secure electronic means, 1 business day after receiving the
request directly from the consumer; or
(ii) in the case of a request that is by mail, 3 business days
after receiving the request directly from the consumer.
32
§605A - 15 U.S.C. § 1681c-1
(B) Confirmation and additional information.
Not later than 5 business days after placing a security freeze
under subparagraph (A), a consumer reporting agency shall –
(i) send confirmation of the placement to the consumer; and
(ii) inform the consumer of –
(I) the process by which the consumer may remove the
security freeze, including a mechanism to authenticate
the consumer; and
(II) the consumer’s right described in section 615(d)(1)
(D).
(C) Notice to third parties. A consumer reporting agency may
advise a third party that a security freeze has been placed with
respect to a consumer under subparagraph (A).
(3) Removal of security freeze.
(A) In general. A consumer reporting agency shall remove a
security freeze placed on the consumer report of a consumer
only in the following cases:
(i) Upon the direct request of the consumer.
(ii) The security freeze was placed due to a material
misrepresentation of fact by the consumer.
(B) Notice if removal not by request. If a consumer reporting
agency removes a security freeze under subparagraph (A)(ii),
the consumer reporting agency shall notify the consumer in
writing prior to removing the security freeze.
(C) Removal of security freeze by consumer request. Except as
provided in subparagraph (A)(ii), a security freeze shall remain
in place until the consumer directly requests that the security
freeze be removed. Upon receiving a direct request from a
consumer that a consumer reporting agency remove a security
freeze, and upon receiving proper identification from the
consumer, the consumer reporting agency shall, free of charge,
remove the security freeze not later than –
(i) in the case of a request that is by toll-free telephone or
secure electronic means, 1 hour after receiving the request
for removal; or
(ii) in the case of a request that is by mail, 3 business days
after receiving the request for removal.
§605A - 15 U.S.C. § 1681c-1
33
(D) Third-party requests. If a third party requests access to a
consumer report of a consumer with respect to which a security
freeze is in effect, where such request is in connection with an
application for credit, and the consumer does not allow such
consumer report to be accessed, the third party may treat the
application as incomplete.
(E) Temporary removal of security freeze. Upon receiving a direct
request from a consumer under subparagraph (A)(i), if the
consumer requests a temporary removal of a security freeze,
the consumer reporting agency shall, in accordance with
subparagraph (C), remove the security freeze for the period of
time specified by the consumer.
(4) Exceptions. A security freeze shall not apply to the making of a
consumer report for use of the following:
(A) A person or entity, or a subsidiary, affiliate, or agent of that
person or entity, or an assignee of a financial obligation owed
by the consumer to that person or entity, or a prospective
assignee of a financial obligation owed by the consumer to that
person or entity in conjunction with the proposed purchase of
the financial obligation, with which the consumer has or had
prior to assignment an account or contract including a demand
deposit account, or to whom the consumer issued a negotiable
instrument, for the purposes of reviewing the account or
collecting the financial obligation owed for the account,
contract, or negotiable instrument. For purposes of this
subparagraph, ‘reviewing the account’ includes activities related
to account maintenance, monitoring, credit line increases, and
account upgrades and enhancements.
(B) Any Federal, State, or local agency, law enforcement agency,
trial court, or private collection agency acting pursuant to a
court order, warrant, or subpoena.
(C) A child support agency acting pursuant to part D of title IV of
the Social Security Act (42 U.S.C. 651 et seq.).
(D) A Federal agency or a State or its agents or assigns acting to
investigate fraud or acting to investigate or collect delinquent
taxes or unpaid court orders or to fulfill any of its other
statutory responsibilities, provided such responsibilities are
consistent with a permissible purpose under section 604.
34
§605A - 15 U.S.C. § 1681c-1
(E) By a person using credit information for the purposes described
under section 604(c).
(F) Any person or entity administering a credit file monitoring
subscription or similar service to which the consumer has
subscribed.
(G) Any person or entity for the purpose of providing a consumer
with a copy of the consumer’s consumer report or credit score,
upon the request of the consumer.
(H) Any person using the information in connection with the
underwriting of insurance.
(I) Any person using the information for employment, tenant, or
background screening purposes.
(J) Any person using the information for assessing, verifying, or
authenticating a consumer’s identity for purposes other than the
granting of credit, or for investigating or preventing actual or
potential fraud.
(5) Notice of rights. At any time a consumer is required to receive a
summary of rights required under section 609, the following notice
shall be included:
“Consumers Have THe rigHT To obTain a seCuriTy Freeze
“You have a right to place a ‘security freeze’ on your credit report,
which will prohibit a consumer reporting agency from releasing
information in your credit report without your express authorization.
The security freeze is designed to prevent credit, loans, and services
from being approved in your name without your consent. However,
you should be aware that using a security freeze to take control over
who gets access to the personal and financial information in your
credit report may delay, interfere with, or prohibit the timely
approval of any subsequent request or application you make
regarding a new loan, credit, mortgage, or any other account
involving the extension of credit.
“As an alternative to a security freeze, you have the right to place an
initial or extended fraud alert on your credit file at no cost. An initial
fraud alert is a 1-year alert that is placed on a consumer’s credit file.
Upon seeing a fraud alert display on a consumer’s credit file, a
business is required to take steps to verify the consumer’s identity
before extending new credit. If you are a victim of identity theft, you
are entitled to an extended fraud alert, which is a fraud alert lasting 7
years.
§605A - 15 U.S.C. § 1681c-1
35
“A security freeze does not apply to a person or entity, or its
affiliates, or collection agencies acting on behalf of the person or
entity, with which you have an existing account that requests
information in your credit report for the purposes of reviewing or
collecting the account. Reviewing the account includes activities
related to account maintenance, monitoring, credit line increases,
and account upgrades and enhancements.”
(6) Webpage.
(A) Consumer reporting agencies. A consumer reporting agency
shall establish a webpage that –
(i) allows a consumer to request a security freeze;
(ii) allows a consumer to request an initial fraud alert;
(iii) allows a consumer to request an extended fraud alert;
(iv) allows a consumer to request an active duty fraud alert;
(v) allows a consumer to opt-out of the use of information in
a consumer report to send the consumer a solicitation of
credit or insurance, in accordance with section 615(d);
and
(vi) shall not be the only mechanism by which a consumer
may request a security freeze.
(B) FTC. The Federal Trade Commission shall establish a single
webpage that includes a link to each webpage established under
subparagraph (A) within the Federal Trade Commission’s
website www.IdentityTheft.gov, or a successor website.
(j) National protection for files and credit records of protected consumers.
(1) Definitions. As used in this subsection:
(A) The term ‘consumer reporting agency’ means a consumer
reporting agency described in section 603(p).
(B) The term ‘protected consumer’ means an individual who is –
(i) under the age of 16 years at the time a request for the
placement of a security freeze is made; or
(ii) an incapacitated person or a protected person for whom a
guardian or conservator has been appointed.
(C) The term ‘protected consumer’s representative’ means a person
who provides to a consumer reporting agency sufficient proof
of authority to act on behalf of a protected consumer.
36
§605A - 15 U.S.C. § 1681c-1
(D) The term ‘record’ means a compilation of information that –
(i) identifies a protected consumer;
(ii) is created by a consumer reporting agency solely for the
purpose of complying with this subsection; and
(iii) may not be created or used to consider the protected
consumer’s credit worthiness, credit standing, credit
capacity, character, general reputation, personal
characteristics, or mode of living.
(E) The term ‘security freeze’ means a restriction that prohibits a
consumer reporting agency from disclosing the contents of a
consumer report that is the subject of such security freeze or,
in the case of a protected consumer for whom the consumer
reporting agency does not have a file, a record that is subject
to such security freeze to any person requesting the consumer
report for the purpose of opening a new account involving the
extension of credit.
(F) The term ‘sufficient proof of authority’ means documentation
that shows a protected consumer’s representative has authority
to act on behalf of a protected consumer and includes –
(i) an order issued by a court of law;
(ii) a lawfully executed and valid power of attorney;
(iii) a document issued by a Federal, State, or local government
agency in the United States showing proof of parentage,
including a birth certificate; or
(iv) with respect to a protected consumer who has been placed
in a foster care setting, a written communication from a
county welfare department or its agent or designee, or
a county probation department or its agent or designee,
certifying that the protected consumer is in a foster care
setting under its jurisdiction.
(G) The term ‘sufficient proof of identification’ means information
or documentation that identifies a protected consumer and a
protected consumer’s representative and includes –
(i) a social security number or a copy of a social security
card issued by the Social Security Administration;
S. 2155—36
(ii) a certified or official copy of a birth certificate issued by
the entity authorized to issue the birth certificate; or
§605A - 15 U.S.C. § 1681c-1
37
(iii) a copy of a driver’s license, an identification card issued
by the motor vehicle administration, or any other
government issued identification.
(2) Placement of security freeze for a protected consumer.
(A) In general. Upon receiving a direct request from a protected
consumer’s representative that a consumer reporting agency
place a security freeze, and upon receiving sufficient proof of
identification and sufficient proof of authority, the consumer
reporting agency shall, free of charge, place the security freeze
not later than –
(i) in the case of a request that is by toll-free telephone or
secure electronic means, 1 business day after receiving
the request directly from the protected consumer’s
representative; or
(ii) in the case of a request that is by mail, 3 business days
after receiving the request directly from the protected
consumer’s representative.
(B) Confirmation and additional information.
Not later than 5 business days after placing a security freeze
under subparagraph (A), a consumer reporting agency shall –
(i) send confirmation of the placement to the protected
consumer’s representative; and
(ii) inform the protected consumer’s representative of the
process by which the protected consumer may remove the
security freeze, including a mechanism to authenticate the
protected consumer’s representative.
(C) Creation of file. If a consumer reporting agency does not have
a file pertaining to a protected consumer when the consumer
reporting agency receives a direct request under subparagraph
(A), the consumer reporting agency shall create a record for the
protected consumer.
(3) Prohibition on release of record or file of protected consumer. After
a security freeze has been placed under paragraph (2)(A), and unless
the security freeze is removed in accordance with this subsection, a
consumer reporting agency may not release the protected consumer’s
consumer report, any information derived from the protected
consumer’s consumer report, or any record created for the protected
consumer.
38
§605A - 15 U.S.C. § 1681c-1
(4) Removal of a protected consumer security freeze.
(A) In general. A consumer reporting agency shall remove a
security freeze placed on the consumer report of a protected
consumer only in the following cases:
(i) Upon the direct request of the protected consumer’s
representative.
(ii) Upon the direct request of the protected consumer, if the
protected consumer is not under the age of 16 years at the
time of the request.
(iii) The security freeze was placed due to a material
misrepresentation of fact by the protected consumer’s
representative.
(B) Notice if removal not by request. If a consumer reporting
agency removes a security freeze under subparagraph (A)(iii),
the consumer reporting agency shall notify the protected
consumer’s representative in writing prior to removing the
security freeze.
(C) Removal of freeze by request. Except as provided in
subparagraph (A)(iii), a security freeze shall remain in place
until a protected consumer’s representative or protected
consumer described in subparagraph (A)(ii) directly requests
that the security freeze be removed. Upon receiving a direct
request from the protected consumer’s representative or
protected consumer described in subparagraph (A)(ii) that a
consumer reporting agency remove a security freeze, and upon
receiving sufficient proof of identification and sufficient proof
of authority, the consumer reporting agency shall, free of
charge, remove the security freeze not later than –
(i) in the case of a request that is by toll-free telephone or
secure electronic means, 1 hour after receiving the request
for removal; or
(ii) in the case of a request that is by mail, 3 business days
after receiving the request for removal.
(D) Temporary removal of security freeze. Upon receiving a direct
request from a protected consumer or a protected consumer’s
representative under subparagraph (A)(i), if the protected
consumer or protected consumer’s representative requests a
temporary removal of a security freeze, the consumer reporting
agency shall, in accordance with subparagraph (C), remove the
§605B - 15 U.S.C. § 1681c-2
39
security freeze for the period of time specified by the protected
consumer or protected consumer’s representative.
(k) Credit monitoring.
(1) Definitions. In this subsection:
(A) The term ‘active duty military consumer’ includes a member of
the National Guard.
(B) The term ‘National Guard’ has the meaning given the term in
section 101(c) of title 10, United States Code.
(2) Credit monitoring. A consumer reporting agency described in section
603(p) shall provide a free electronic credit monitoring service that,
at a minimum, notifies a consumer of material additions or modifica-
tions to the file of the consumer at the consumer reporting agency to
any consumer who provides to the consumer reporting agency –
(A) appropriate proof that the consumer is an active duty military
consumer; and
(B) contact information of the consumer.
(3) Rulemaking. Not later than 1 year after the date of enactment of this
subsection, the Federal Trade Commission shall promulgate
regulations regarding the requirements of this subsection, which
shall at a minimum include –
(A) a definition of an electronic credit monitoring service and
material additions or modifications to the file of a consumer; and
(B) what constitutes appropriate proof.
(4) Applicability.
(A) Sections 616 and 617 shall not apply to any violation of this
subsection.
(B) This subsection shall be enforced exclusively under section 621
by the Federal agencies and Federal and State officials
identified in that section.
§605B. Block of information resulting from identity theft
[15 U.S.C. § 1681c-2]
(a) Block. Except as otherwise provided in this section, a consumer reporting
agency shall block the reporting of any information in the file of a
consumer that the consumer identifies as information that resulted from
an alleged identity theft, not later than 4 business days after the date of
receipt by such agency of –
40
§605B - 15 U.S.C. § 1681c-2
(1) appropriate proof of the identity of the consumer;
(2) a copy of an identity theft report;
(3) the identification of such information by the consumer; and
(4) a statement by the consumer that the information is not information
relating to any transaction by the consumer.
(b) Notification. A consumer reporting agency shall promptly notify the
furnisher of information identified by the consumer under subsection (a) –
(1) that the information may be a result of identity theft;
(2) that an identity theft report has been filed;
(3) that a block has been requested under this section; and
(4) of the effective dates of the block.
(c) Authority to Decline or Rescind
(1) In general. A consumer reporting agency may decline to block, or may
rescind any block, of information relating to a consumer under this
section, if the consumer reporting agency reasonably determines that –
(A) the information was blocked in error or a block was requested
by the consumer in error;
(B) the information was blocked, or a block was requested by the
consumer, on the basis of a material misrepresentation of fact
by the consumer relevant to the request to block; or
(C) the consumer obtained possession of goods, services, or money
as a result of the blocked transaction or transactions.
(2) Notification to consumer. If a block of information is declined or
rescinded under this subsection, the affected consumer shall be
notified promptly, in the same manner as consumers are notified of
the reinsertion of information under section 611(a)(5)(B).
(3) Significance of block. For purposes of this subsection, if a consumer
reporting agency rescinds a block, the presence of information in the
file of a consumer prior to the blocking of such information is not
evidence of whether the consumer knew or should have known that
the consumer obtained possession of any goods, services, or money
as a result of the block.
(d) Exception for Resellers
(1) No reseller file. This section shall not apply to a consumer reporting
agency, if the consumer reporting agency –
(A) is a reseller;
§606 - 15 U.S.C. §1681d
41
(B) is not, at the time of the request of the consumer under sub-
section (a), otherwise furnishing or reselling a consumer report
concerning the information identified by the consumer; and
(C) informs the consumer, by any means, that the consumer may
report the identity theft to the Bureau to obtain consumer
information regarding identity theft.
(2) Reseller with file. The sole obligation of the consumer reporting
agency under this section, with regard to any request of a consumer
under this section, shall be to block the consumer report maintained
by the consumer reporting agency from any subsequent use, if –
(A) the consumer, in accordance with the provisions of subsection
(a), identifies, to a consumer reporting agency, information in
the file of the consumer that resulted from identity theft; and
(B) the consumer reporting agency is a reseller of the identified
information.
(3) Notice. In carrying out its obligation under paragraph (2), the
reseller shall promptly provide a notice to the consumer of the
decision to block the file. Such notice shall contain the name,
address, and telephone number of each consumer reporting agency
from which the consumer information was obtained for resale.
(e) Exception for verification companies. The provisions of this section do
not apply to a check services company, acting as such, which issues
authorizations for the purpose of approving or processing negotiable
instruments, electronic fund transfers, or similar methods of payments,
except that, beginning 4 business days after receipt of information
described in paragraphs (1) through (3) of subsection (a), a check services
company shall not report to a national consumer reporting agency
described in section 603(p), any information identified in the subject
identity theft report as resulting from identity theft.
(f) Access to blocked information by law enforcement agencies. No provision
of this section shall be construed as requiring a consumer reporting agency
to prevent a Federal, State, or local law enforcement agency from
accessing blocked information in a consumer file to which the agency
could otherwise obtain access under this title.
§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
42
§606 - 15 U.S.C. §1681d
(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 compli-
ance 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
§607 - 15 U.S.C. §1681e
43
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
44
§607 - 15 U.S.C. §1681e
possible accuracy of the information concerning the individual about
whom the report relates.
(c) Disclosure of consumer reports by users allowed. A consumer reporting
agency may not prohibit a user of a consumer report furnished by the
agency on a consumer from disclosing the contents of the report to the
consumer, if adverse action against the consumer has been taken by the
user based in whole or in part on the report.
(d) Notice to Users and Furnishers of Information
(1) Notice requirement. A consumer reporting agency shall provide to
any person
(A) who regularly and in the ordinary course of business furnishes
information to the agency with respect to any consumer; or
(B) to whom a consumer report is provided by the agency; a notice
of such person’s responsibilities under this title.
See also 16 CFR 698, App G-H
69 Fed. Reg. 69776 (11/30/04)
(2) Content of notice. The Bureau shall prescribe the content of notices
under paragraph (1), and a consumer reporting agency shall be in
compliance with this subsection if it provides a notice under para-
graph (1) that is substantially similar to the Bureau prescription under
this paragraph.
(e) Procurement of Consumer Report for Resale
(1) Disclosure. A person may not procure a consumer report for
purposes of reselling the report (or any information in the report)
unless the person discloses to the consumer reporting agency that
originally furnishes the report
(A) the identity of the end-user of the report (or information); and
(B) each permissible purpose under section 604 [§ 1681b] for which
the report is furnished to the end-user of the report (or
information).
(2) Responsibilities of procurers for resale. A person who procures a
consumer report for purposes of reselling the report (or any
information in the report) shall
(A) establish and comply with reasonable procedures designed to
ensure that the report (or information) is resold by the person
only for a purpose for which the report may be furnished under
section 604 [§ 1681b], including by requiring that each person
§609 - 15 U.S.C. §1681g
45
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. Not-
withstanding 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 –
46
§609 - 15 U.S.C. §1681g
(A) if the consumer to whom the file relates requests that the first
5 digits of the social security number (or similar identification
number) of the consumer not be included in the disclosure and
the consumer reporting agency has received appropriate proof
of the identity of the requester, the consumer reporting agency
shall so truncate such number in such disclosure; and
(B) nothing in this paragraph shall be construed to require a
consumer reporting agency to disclose to a consumer any
information concerning credit scores or any other risk scores or
predictors relating to the consumer.
(2) The sources of the information; except that the sources of information
acquired solely for use in preparing an investigative consumer report
and actually use for no other purpose need not be disclosed:
Provided, That in the event an action is brought under this title, such
sources shall be available to the plaintiff under appropriate discovery
procedures in the court in which the action is brought.
(3) (A) Identification of each person (including each end-user identified
under section 607(e)(1) [§ 1681e]) that procured a consumer
report
(i) for employment purposes, during the 2-year period
preceding the date on which the request is made; or
(ii) for any other purpose, during the 1-year period preceding
the date on which the request is made.
(B) An identification of a person under subparagraph (A) shall
include
(i) the name of the person or, if applicable, the trade name
(written in full) under which such person conducts
business; and
(ii) upon request of the consumer, the address and telephone
number of the person.
(C) Subparagraph (A) does not apply if –
(i) the end user is an agency or department of the United
States Government that procures the report from the
person for purposes of determining the eligibility of the
consumer to whom the report relates to receive access or
continued access to classified information (as defined in
section 604(b)(4)(E)(i)); and
§609 - 15 U.S.C. §1681g
47
(ii) the head of the agency or department makes a written
finding as prescribed under section 604(b)(4)(A).
(4) The dates, original payees, and amounts of any checks upon which is
based any adverse characterization of the consumer, included in the
file at the time of the disclosure.
(5) A record of all inquiries received by the agency during the 1-year
period preceding the request that identified the consumer in
connection with a credit or insurance transaction that was not initiated
by the consumer.
(6) If the consumer requests the credit file and not the credit score, a
statement that the consumer may request and obtain a credit score.
(b) Exempt information. The requirements of subsection (a) of this section
respecting the disclosure of sources of information and the recipients
of consumer reports do not apply to information received or consumer
reports furnished prior to the effective date of this title except to the extent
that the matter involved is contained in the files of the consumer reporting
agency on that date.
(c) Summary of Rights to Obtain and Dispute Information in Consumer
Reports and to Obtain Credit Scores
See also 16 CFR Part 698, App F
69 Fed. Reg. 69776 (11/30/04)
(1) Bureau Summary of Rights Required
(A) In general. The Bureau shall prepare a model summary of the
rights of consumers under this title.
(B) Content of summary. The summary of rights prepared under
subparagraph (A) shall include a description of –
(i) the right of a consumer to obtain a copy of a consumer
report under subsection (a) from each consumer reporting
agency;
(ii) the frequency and circumstances under which a consumer
is entitled to receive a consumer report without charge
under section 612;
(iii) the right of a consumer to dispute information in the file
of the consumer under section 611;
(iv) the right of a consumer to obtain a credit score from a
consumer reporting agency, and a description of how to
obtain a credit score;
48
§609 - 15 U.S.C. §1681g
(v) the method by which a consumer can contact, and obtain a
consumer report from, a consumer reporting agency
without charge, as provided in the regulations of the
Bureau prescribed under section 211(c) of the Fair and
Accurate Credit Transactions Act of 2003; and
(vi) the method by which a consumer can contact, and obtain
a consumer report from, a consumer reporting agency
described in section 603(w), as provided in the regulations
of the Bureau prescribed under section 612(a)(1)(C).
(C) Availability of summary of rights. The Bureau shall –
(i) actively publicize the availability of the summary of rights
prepared under this paragraph;
(ii) conspicuously post on its Internet website the availability
of such summary of rights; and
(iii) promptly make such summary of rights available to
consumers, on request.
(2) Summary of rights required to be included with agency disclosures.
A consumer reporting agency shall provide to a consumer, with each
written disclosure by the agency to the consumer under this section –
(A) the summary of rights prepared by the Bureau under paragraph
(1);
(B) in the case of a consumer reporting agency described in section
603(p), a toll-free telephone number established by the agency,
at which personnel are accessible to consumers during normal
business hours;
(C) a list of all Federal agencies responsible for enforcing any
provision of this title, and the address and any appropriate
phone number of each such agency, in a form that will assist
the consumer in selecting the appropriate agency;
(D) a statement that the consumer may have additional rights under
State law, and that the consumer may wish to contact a State or
local consumer protection agency or a State attorney general (or
the equivalent thereof) to learn of those rights; and
(E) a statement that a consumer reporting agency is not required
to remove accurate derogatory information from the file of a
consumer, unless the information is outdated under section 605
or cannot be verified.
§609 - 15 U.S.C. §1681g
49
(d) Summary of Rights of Identity Theft Victims
See also 16 CFR Part 698, App E
69 Fed. Reg. 69776 (11/30/04)
(1) In general. The Bureau, in consultation with the Federal banking
agencies and the National Credit Union Administration, shall prepare
a model summary of the rights of consumers under this title with
respect to the procedures for remedying the effects of fraud or identity
theft involving credit, an electronic fund transfer, or an account or
transaction at or with a financial institution or other creditor.
(2) Summary of rights and contact information. Beginning 60 days
after the date on which the model summary of rights is prescribed in
final form by the Bureau pursuant to paragraph (1), if any consumer
contacts a consumer reporting agency and expresses a belief that the
consumer is a victim of fraud or identity theft involving credit, an
electronic fund transfer, or an account or transaction at or with a
financial institution or other creditor, the consumer reporting agency
shall, in addition to any other action that the agency may take,
provide the consumer with a summary of rights that contains all of
the information required by the Bureau under paragraph (1), and
information on how to contact the Bureau to obtain more detailed
information.
(e) Information Available to Victims
(1) In general. For the purpose of documenting fraudulent transactions
resulting from identity theft, not later than 30 days after the date of
receipt of a request from a victim in accordance with paragraph (3),
and subject to verification of the identity of the victim and the claim
of identity theft in accordance with paragraph (2), a business entity
that has provided credit to, provided for consideration products,
goods, or services to, accepted payment from, or otherwise entered
into a commercial transaction for consideration with, a person who
has allegedly made unauthorized use of the means of identification of
the victim, shall provide a copy of application and business transaction
records in the control of the business entity, whether maintained by
the business entity or by another person on behalf of the business
entity, evidencing any transaction alleged to be a result of identity
theft to –
(A) the victim;
(B) any Federal, State, or local government law enforcement
agency or officer specified by the victim in such a request; or
50
§609 - 15 U.S.C. §1681g
(C) Any law enforcement agency investigating the identity theft
and authorized by the victim to take receipt of records provided
under this subsection.
(2) Verification of identity and claim. Before a business entity provides
any information under paragraph (1), unless the business entity, at its
discretion, otherwise has a high degree of confidence that it knows
the identity of the victim making a request under paragraph (1), the
victim shall provide to the business entity –
(A) as proof of positive identification of the victim, at the election
of the business entity –
(i) the presentation of a government-issued identification
card;
(ii) personally identifying information of the same type as was
provided to the business entity by the unauthorized
person; or
(iii) personally identifying information that the business entity
typically requests from new applicants or for new
transactions, at the time of the victim’s request for
information, including any documentation described in
clauses (i) and (ii); and
(B) as proof of a claim of identity theft, at the election of the
business entity –
(i) a copy of a police report evidencing the claim of the
victim of identity theft; and
(ii) a properly completed –
(I) copy of a standardized affidavit of identity theft
developed and made available by the Bureau; or
(II) an affidavit of fact that is acceptable to the business
entity for that purpose.
(3) Procedures. The request of a victim under paragraph (1) shall –
(A) be in writing;
(B) be mailed to an address specified by the business entity, if any;
and
(C) if asked by the business entity, include relevant information
about any transaction alleged to be a result of identity theft to
facilitate compliance with this section including –
§609 - 15 U.S.C. §1681g
51
(i) if known by the victim (or if readily obtainable by the
victim), the date of the application or transaction; and
(ii) if known by the victim (or if readily obtainable by the
victim), any other identifying information such as an
account or transaction number.
(4) No charge to victim. Information required to be provided under
paragraph (1) shall be so provided without charge.
(5) Authority to decline to provide information. A business entity may
decline to provide information under paragraph (1) if, in the exercise
of good faith, the business entity determines that –
(A) this subsection does not require disclosure of the information;
(B) after reviewing the information provided pursuant to paragraph
(2), the business entity does not have a high degree of
confidence in knowing the true identity of the individual
requesting the information;
(C) the request for the information is based on a misrepresentation
of fact by the individual requesting the information relevant to
the request for information; or
(D the information requested is Internet navigational data or
similar information about a person’s visit to a website or online
service.
(6) Limitation on liability. Except as provided in section 621, sections
616 and 617 do not apply to any violation of this subsection.
(7) Limitation on civil liability. No business entity may be held civilly
liable under any provision of Federal, State, or other law for
disclosure, made in good faith pursuant to this subsection.
(8) No new recordkeeping obligation. Nothing in this subsection creates
an obligation on the part of a business entity to obtain, retain, or
maintain information or records that are not otherwise required to be
obtained, retained, or maintained in the ordinary course of its
business or under other applicable law.
(9) Rule of Construction
(A) In general. No provision of subtitle A of title V of Public Law
106-102, prohibiting the disclosure of financial information by
a business entity to third parties shall be used to deny disclosure
of information to the victim under this subsection.
52
§609 - 15 U.S.C. §1681g
(B) Limitation. Except as provided in subparagraph (A), nothing
in this subsection permits a business entity to disclose
information, including information to law enforcement under
subparagraphs (B) and (C) of paragraph (1), that the business
entity is otherwise prohibited from disclosing under any other
applicable provision of Federal or State law.
(10) Affirmative defense. In any civil action brought to enforce this
subsection, it is an affirmative defense (which the defendant must
establish by a preponderance of the evidence) for a business entity to
file an affidavit or answer stating that –
(A) the business entity has made a reasonably diligent search of its
available business records; and
(B) the records requested under this subsection do not exist or are
not reasonably available.
(11) Definition of victim. For purposes of this subsection, the term
“victim” means a consumer whose means of identification or
financial information has been used or transferred (or has been
alleged to have been used or transferred) without the authority of that
consumer, with the intent to commit, or to aid or abet, an identity
theft or a similar crime.
(12) Effective date. This subsection shall become effective 180 days after
the date of enactment of this subsection.
(13) Effectiveness study. Not later than 18 months after the date of
enactment of this subsection, the Comptroller General of the United
States shall submit a report to Congress assessing the effectiveness of
this provision.
(f) Disclosure of Credit Scores
(1) In general. Upon the request of a consumer for a credit score, a
consumer reporting agency shall supply to the consumer a statement
indicating that the information and credit scoring model may be
different than the credit score that may be used by the lender, and a
notice which shall include –
(A) the current credit score of the consumer or the most recent
credit score of the consumer that was previously calculated by
the credit reporting agency for a purpose related to the
extension of credit;
(B) the range of possible credit scores under the model used;
§609 - 15 U.S.C. §1681g
53
(C) all of the key factors that adversely affected the credit score
of the consumer in the model used, the total number of which
shall not exceed 4, subject to paragraph (9);
(D) the date on which the credit score was created; and
(E) the name of the person or entity that provided the credit score
or credit file upon which the credit score was created.
(2) Definitions. For purposes of this subsection, the following
definitions shall apply:
(A) The term “credit score” –
(i) means a numerical value or a categorization derived from
a statistical tool or modeling system used by a person who
makes or arranges a loan to predict the likelihood of certain
credit behaviors, including default (and the numerical
value or the categorization derived from such analysis
may also be referred to as a “risk predictor” or “risk
score”); and
(ii) does not include –
(I) any mortgage score or rating of an automated
underwriting system that considers one or more
factors in addition to credit information, including the
loan to value ratio, the amount of down payment, or
the financial assets of a consumer; or
(II) any other elements of the underwriting process or
underwriting decision.
(B) The term “key factors” means all relevant elements or reasons
adversely affecting the credit score for the particular individual,
listed in the order of their importance based on their effect on
the credit score.
(3) Timeframe and manner of disclosure. The information required by
this subsection shall be provided in the same timeframe and manner
as the information described in subsection (a).
(4) Applicability to certain uses. This subsection shall not be construed
so as to compel a consumer reporting agency to develop or disclose a
score if the agency does not –
(A) distribute scores that are used in connection with residential real
property loans; or
54
§609 - 15 U.S.C. §1681g
(B) develop scores that assist credit providers in understanding the
general credit behavior of a consumer and predicting the future
credit behavior of the consumer.
(5) Applicability to credit scores developed by another person.
(A) In general. This subsection shall not be construed to require a
consumer reporting agency that distributes credit scores
developed by another person or entity to provide a further
explanation of them, or to process a dispute arising pursuant
to section 611, except that the consumer reporting agency shall
provide the consumer with the name and address and website
for contacting the person or entity who developed the score or
developed the methodology of the score.
(B) Exception. This paragraph shall not apply to a consumer
reporting agency that develops or modifies scores that are
developed by another person or entity.
(6) Maintenance of credit scores not required. This subsection shall
not be construed to require a consumer reporting agency to maintain
credit scores in its files.
(7) Compliance in certain cases. In complying with this subsection, a
consumer reporting agency shall –
(A) supply the consumer with a credit score that is derived from a
credit scoring model that is widely distributed to users by that
consumer reporting agency in connection with residential real
property loans or with a credit score that assists the consumer
in understanding the credit scoring assessment of the credit
behavior of the consumer and predictions about the future credit
behavior of the consumer; and
(B) a statement indicating that the information and credit scoring
model may be different than that used by the lender.
(8) Fair and reasonable fee. A consumer reporting agency may charge
a fair and reasonable fee, as determined by the Bureau, for providing
the information required under this subsection.
See also 69 Fed. Reg. 64698 (11/08/04)
(9) Use of enquiries as a key factor. If a key factor that adversely affects
the credit score of a consumer consists of the number of enquiries
made with respect to a consumer report, that factor shall be included
in the disclosure pursuant to paragraph (1)(C) without regard to the
numerical limitation in such paragraph.
§609 - 15 U.S.C. §1681g
55
(g) Disclosure of Credit Scores by Certain Mortgage Lenders
(1) In general. Any person who makes or arranges loans and who uses
a consumer credit score, as defined in subsection (f), in connection
with an application initiated or sought by a consumer for a closed end
loan or the establishment of an open end loan for a consumer purpose
that is secured by 1 to 4 units of residential real property (hereafter in
this subsection referred to as the “lender”) shall provide the following
to the consumer as soon as reasonably practicable:
(A) Information Required under Subsection (f)
(i) In general. A copy of the information identified in
subsection (f) that was obtained from a consumer
reporting agency or was developed and used by the user
of the information.
(ii) Notice under subparagraph (D). In addition to the
information provided to it by a third party that provided
the credit score or scores, a lender is only required to
provide the notice contained in subparagraph (D).
(B) Disclosures in Case of Automated Underwriting System
(i) In general. If a person that is subject to this subsection
uses an automated underwriting system to underwrite a
loan, that person may satisfy the obligation to provide a
credit score by disclosing a credit score and associated key
factors supplied by a consumer reporting agency.
(ii) Numerical credit score. However, if a numerical credit
score is generated by an automated underwriting system
used by an enterprise, and that score is disclosed to the
person, the score shall be disclosed to the consumer
consistent with subparagraph (c).
(iii) Enterprise defined. For purposes of this subparagraph,
the term “enterprise” has the same meaning as in
paragraph (6) of section 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992.
(C) Disclosures of credit scores not obtained from a consumer
reporting agency. A person that is subject to the provisions of
this subsection and that uses a credit score, other than a credit
score provided by a consumer reporting agency, may satisfy the
obligation to provide a credit score by disclosing a credit score
and associated key factors supplied by a consumer reporting
agency.
56
§609 - 15 U.S.C. §1681g
(D) Notice to home loan applicants. A copy of the following
notice, which shall include the name, address, and telephone
number of each consumer reporting agency providing a credit
score that was used:
“noTiCe To THe Home Loan appLiCanT
“In connection with your application for a home loan, the lender must disclose
to you the score that a consumer reporting agency distributed to users and the
lender used in connection with your home loan, and the key factors affecting
your credit scores.
“The credit score is a computer generated summary calculated at the time of the
request and based on information that a consumer reporting agency or lender
has on file. The scores are based on data about your credit history and payment
patterns. Credit scores are important because they are used to assist the lender
in determining whether you will obtain a loan. They may also be used to
determine what interest rate you may be offered on the mortgage. Credit scores
can change over time, depending on your conduct, how your credit history and
payment patterns change, and how credit scoring technologies change.
“Because the score is based on information in your credit history, it is very
important that you review the credit-related information that is being furnished
to make sure it is accurate. Credit records may vary from one company to
another.
“If you have questions about your credit score or the credit information that
is furnished to you, contact the consumer reporting agency at the address and
telephone number provided with this notice, or contact the lender, if the lender
developed or generated the credit score. The consumer reporting agency plays
no part in the decision to take any action on the loan application and is unable
to provide you with specific reasons for the decision on a loan application.
“If you have questions concerning the terms of the loan, contact the lender.”
(E) Actions not required under this subsection. This subsection
shall not require any person to –
(i) explain the information provided pursuant to subsection
(f);
(ii disclose any information other than a credit score or key
factors, as defined in subsection (f);
(iii) disclose any credit score or related information obtained
by the user after a loan has closed;
(iv) provide more than 1 disclosure per loan transaction; or
§610 - 15 U.S.C. §1681h
57
(v) provide the disclosure required by this subsection when
another person has made the disclosure to the consumer
for that loan transaction.
(F) No Obligation for Content
(i) In general. The obligation of any person pursuant to
this subsection shall be limited solely to providing a copy
of the information that was received from the consumer
reporting agency.
(ii) Limit on liability. No person has liability under this
subsection for the content of that information or for the
omission of any information within the report provided by
the consumer reporting agency.
(G) Person defined as excluding enterprise. As used in this
subsection, the term “person” does not include an enterprise (as
defined in paragraph (6) of section 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992).
(2) Prohibition on Disclosure Clauses Null and Void
(A) In general. Any provision in a contract that prohibits the
disclosure of a credit score by a person who makes or arranges
loans or a consumer reporting agency is void.
(B) No liability for disclosure under this subsection. A lender shall
not have liability under any contractual provision for disclosure
of a credit score pursuant to this subsection.
§610. Conditions and form of disclosure to consumers
[15 U.S.C. §1681h]
(a) In General
(1) Proper identification. A consumer reporting agency shall require,
as a condition of making the disclosures required under section 609
[§ 1681g], that the consumer furnish proper identification.
(2) Disclosure in writing. Except as provided in subsection (b), the
disclosures required to be made under section 609 [§ 1681g] shall be
provided under that section in writing.
(b) Other Forms of Disclosure
(1) In general. If authorized by a consumer, a consumer reporting
agency may make the disclosures required under 609 [§ 1681g]
(A) other than in writing; and
58
§611 - 15 U.S.C. §1681i
(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 rea-
sonable identification. A consumer reporting agency may require the con-
sumer 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
§611 - 15 U.S.C. §1681i
59
(A) In general. Subject to subsection (f), and except as provided
in subsection (g) if the completeness or accuracy of any item
of information contained in a consumer’s file at a consumer
reporting agency is disputed by the consumer and the consumer
notifies the agency directly, or indirectly through a reseller,
of such dispute, the agency shall, free of charge, conduct a
reasonable reinvestigation to determine whether the disputed
information is inaccurate and record the current status of the
disputed information, or delete the item from the file in
accordance with paragraph (5), before the end of the 30-day
period beginning on the date on which the agency receives the
notice of the dispute from the consumer or reseller.
(B) Extension of period to reinvestigate. Except as provided in
subparagraph (c), the 30-day period described in subparagraph
(A) may be extended for not more than 15 additional days if the
consumer reporting agency receives information from the
consumer during that 30-day period that is relevant to the
reinvestigation.
(C) Limitations on extension of period to reinvestigate.
Subparagraph (B) shall not apply to any reinvestigation in
which, during the 30-day period described in subparagraph
(A), the information that is the subject of the reinvestigation is
found to be inaccurate or incomplete or the consumer reporting
agency determines that the information cannot be verified.
(2) Prompt Notice of Dispute to Furnisher of Information
(A) In general. Before the expiration of the 5-business-day period
beginning on the date on which a consumer reporting agency
receives notice of a dispute from any consumer or a reseller in
accordance with paragraph (1), the agency shall provide
notification of the dispute to any person who provided any item
of information in dispute, at the address and in the manner
established with the person. The notice shall include all relevant
information regarding the dispute that the agency has received
from the consumer or reseller.
(B) Provision of other information. The consumer reporting agency
shall promptly provide to the person who provided the
information in dispute all relevant information regarding the
dispute that is received by the agency from the consumer or
the reseller after the period referred to in subparagraph (A) and
before the end of the period referred to in paragraph (1)(A).
60
§611 - 15 U.S.C. §1681i
(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 deter-
mines 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)i dentification of any information required to investigate the
disputed information, which may consist of a standardized
form describing the general nature of such information.
(4) Consideration of consumer information. In conducting any
reinvestigation under paragraph (1) with respect to disputed
information in the file of any consumer, the consumer reporting
agency shall review and consider all relevant information submitted
by the consumer in the period described in paragraph (1)(A) with
respect to such disputed information.
(5) Treatment of Inaccurate or Unverifiable Information
(A) In general. If, after any reinvestigation under paragraph (1) of
any information disputed by a consumer, an item of the
information is found to be inaccurate or incomplete or cannot
be verified, the consumer reporting agency shall –
(i) promptly delete that item of information from the file of
the consumer, or modify that item of information, as
appropriate, based on the results of the reinvestigation; and
(ii) promptly notify the furnisher of that information that the
information has been modified or deleted from the file of
the consumer.
§611 - 15 U.S.C. §1681i
61
(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
62
§611 - 15 U.S.C. §1681i
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 comple-
tion of the reinvestigation, by mail or, if authorized by the con-
sumer 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 complete-
ness 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
§611 - 15 U.S.C. §1681i
63
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. When-
ever a statement of a dispute is filed, unless there is reasonable grounds
to believe that it is frivolous or irrelevant, the consumer reporting agency
shall, in any subsequent report containing the information in question,
clearly note that it is disputed by the consumer and provide either the con-
sumer’s statement or a clear and accurate codification or summary thereof.
(d) Notification of deletion of disputed information. Following any deletion of
information which is found to be inaccurate or whose accuracy can no
longer be verified or any notation as to disputed information, the
consumer reporting agency shall, at the request of the consumer, furnish
notification that the item has been deleted or the statement, codification
or summary pursuant to subsection (b) or (c) of this section to any person
specifically designated by the consumer who has within two years prior
thereto received a consumer report for employment purposes, or within
six months prior thereto received a consumer report for any other
purpose, which contained the deleted or disputed information.
(e) Treatment of Complaints and Report to Congress
(1) In general. The Bureau shall –
64
§611 - 15 U.S.C. §1681i
(A) compile all complaints that it receives that a file of a consumer
that is maintained by a consumer reporting agency described in
section 603(p) contains incomplete or inaccurate information,
with respect to which, the consumer appears to have disputed the
completeness or accuracy with the consumer reporting agency or
otherwise utilized the procedures provided by subsection (a); and
(B) transmit each such complaint to each consumer reporting
agency involved.
(2) Exclusion. Complaints received or obtained by the Bureau pursuant
to its investigative authority under the Consumer Financial Protection
Act of 2010 shall not be subject to paragraph (1).
(3) Agency responsibilities. Each consumer reporting agency described
in section 603(p) that receives a complaint transmitted by the Bureau
pursuant to paragraph (1) shall –
(A) review each such complaint to determine whether all legal
obligations imposed on the consumer reporting agency under
this title (including any obligation imposed by an applicable
court or administrative order) have been met with respect to the
subject matter of the complaint;
(B) provide reports on a regular basis to the Bureau regarding the
determinations of and actions taken by the consumer reporting
agency, if any, in connection with its review of such
complaints; and
(C) maintain, for a reasonable time period, records regarding the
disposition of each such complaint that is sufficient to
demonstrate compliance with this subsection.
(4) Rulemaking authority. The Bureau may prescribe regulations, as
appropriate to implement this subsection.
(5) Annual report. The Bureau shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives an annual report
regarding information gathered by the Bureau under this subsection.
(f) Reinvestigation Requirement Applicable to Resellers
(1) Exemption from general reinvestigation requirement. Except as
provided in paragraph (2), a reseller shall be exempt from the
requirements of this section.
(2) Action required upon receiving notice of a dispute. If a reseller
receives a notice from a consumer of a dispute concerning the
§611 - 15 U.S.C. §1681i
65
completeness or accuracy of any item of information contained in
a consumer report on such consumer produced by the reseller, the
reseller shall, within 5 business days of receiving the notice, and free
of charge –
(A) determine whether the item of information is incomplete or
inaccurate as a result of an act or omission of the reseller; and
(B) (i) if the reseller determines that the item of information is
incomplete or inaccurate as a result of an act or omission
of the reseller, not later than 20 days after receiving the
notice, correct the information in the consumer report or
delete it; or
(ii) if the reseller determines that the item of information
is not incomplete or inaccurate as a result of an act or
omission of the reseller, convey the notice of the dispute,
together with all relevant information provided by the
consumer, to each consumer reporting agency that
provided the reseller with the information that is the
subject of the dispute, using an address or a notification
mechanism specified by the consumer reporting agency
for such notices.
(3) Responsibility of consumer reporting agency to notify consumer
through reseller. Upon the completion of a reinvestigation under this
section of a dispute concerning the completeness or accuracy of any
information in the file of a consumer by a consumer reporting agency
that received notice of the dispute from a reseller under paragraph (2) –
(A) the notice by the consumer reporting agency under paragraph
(6), (7), or (8) of subsection (a) shall be provided to the reseller
in lieu of the consumer; and
(B) the reseller shall immediately reconvey such notice to the
consumer, including any notice of a deletion by telephone in the
manner required under paragraph (8)(A).
(4) Reseller reinvestigations. No provision of this subsection shall be
construed as prohibiting a reseller from conducting a reinvestigation
of a consumer dispute directly.
(g) Dispute Process for Veteran’s Medical Debt
(1) In general. With respect to a veteran’s medical debt, the veteran
may submit a notice described in paragraph (2), proof of liability of
the Department of Veterans Affairs for payment of that debt, or
documentation that the Department of Veterans Affairs is in the
66
§612 - 15 U.S.C. §1681j
process of making payment for authorized hospital care, medical
services, or extended care services rendered to a consumer reporting
agency or a reseller to dispute the inclusion of that debt on a
consumer report of the veteran.
(2) Notification to veteran. The Department of Veterans Affairs shall
submit to a veteran a notice that the Department of Veterans Affairs
has assumed liability for part or all of a veteran’s medical debt.
(3) Deletion of information from file. If a consumer reporting agency
receives notice, proof of liability, or documentation under paragraph
(1), the consumer reporting agency shall delete all information
relating to the veteran’s medical debt from the file of the veteran and
notify the furnisher and the veteran of that deletion.
§612. Charges for certain disclosures [15 U.S.C. §1681j]
See also 16 CFR Part 610
69 Fed. Reg. 35467 (06/24/04)
75 Fed. Reg. 9726 (03/03/10)
(a) Free Annual Disclosure
(1) Nationwide Consumer Reporting Agencies
(A) In general. All consumer reporting agencies described in
subsections (p) and (w) of section 603 shall make all disclosures
pursuant to section 609 once during any 12-month period upon
request of the consumer and without charge to the consumer.
(B) Centralized source. Subparagraph (A) shall apply with respect
to a consumer reporting agency described in section 603(p)
only if the request from the consumer is made using the
centralized source established for such purpose in accordance
with section 211(c) of the Fair and Accurate Credit
Transactions Act of 2003.
(C) Nationwide Specialty Consumer Reporting Agency
(i) In general. The Bureau shall prescribe regulations
applicable to each consumer reporting agency described
in section 603(w) to require the establishment of a
streamlined process for consumers to request consumer
reports under subparagraph (A), which shall include, at a
minimum, the establishment by each such agency of a toll-
free telephone number for such requests.
(ii) Considerations. In prescribing regulations under clause
(i), the Bureau shall consider –
§612 - 15 U.S.C. §1681j
67
(I) the significant demands that may be placed on
consumer reporting agencies in providing such
consumer reports;
(II) appropriate means to ensure that consumer reporting
agencies can satisfactorily meet those demands,
including the efficacy of a system of staggering the
availability to consumers of such consumer reports;
and
(III) the ease by which consumers should be able to
contact consumer reporting agencies with respect to
access to such consumer reports.
(iii)
7
Date of issuance. The Bureau shall issue the regulations
required by this subparagraph in nal form not later than 6
months after the date of enactment of the Fair and Accurate
Credit Transactions Act of 2003.
(iv)
7
Consideration of ability to comply. The regulations of the
Bureau under this subparagraph shall establish an effective
date by which each nationwide specialty consumer report-
ing agency (as dened in section 603(w)) shall be required
to comply with subsection (a), which effective date –
(I) shall be established after consideration of the ability
of each nationwide specialty consumer reporting
agency to comply with subsection (a); and
(II) shall be not later than 6 months after the date on
which such regulations are issued in final form (or
such additional period not to exceed 3 months, as the
Bureau determines appropriate).
(2) Timing. A consumer reporting agency shall provide a consumer
report under paragraph (1) not later than 15 days after the date on
which the request is received under paragraph (1).
(3) Reinvestigations. Notwithstanding the time periods specified in
section 611(a)(1), a reinvestigation under that section by a consumer
reporting agency upon a request of a consumer that is made after
receiving a consumer report under this subsection shall be completed
not later than 45 days after the date on which the request is received.
7 Subsections 612(a)(1)(C)(iii) and (iv) are obsolete. They relate to the to the issuance and effective dates
of the “free report” rules that the 2003 FACT Act required the Commission to publish. The rules were
published on time in June 2004 and updated in March 2010. The subsections appear as written, includ-
ing 2010 amendments to the FCRA that changed “Commission” to “Bureau” (effective July 21, 2011) in
several places in the FCRA.
68
§612 - 15 U.S.C. §1681j
(4) Exception for first 12 months of operation. This subsection shall
not apply to a consumer reporting agency that has not been
furnishing consumer reports to third parties on a continuing basis
during the 12-month period preceding a request under paragraph (1),
with respect to consumers residing nationwide.
(b) Free disclosure after adverse notice to consumer. Each consumer
reporting agency that maintains a file on a consumer shall make all
disclosures pursuant to section 609 [§ 1681g] without charge to the
consumer if, not later than 60 days after receipt by such consumer of a
notification pursuant to section 615 [§ 1681m], or of a notification from a
debt collection agency affiliated with that consumer reporting agency
stating that the consumer’s credit rating may be or has been adversely
affected, the consumer makes a request under section 609 [§ 1681g].
(c) Free disclosure under certain other circumstances. Upon the request of
the consumer, a consumer reporting agency shall make all disclosures
pursuant to section 609 [§ 1681g] once during any 12-month period
without charge to that consumer if the consumer certifies in writing that
the consumer
(1) is unemployed and intends to apply for employment in the 60-day
period beginning on the date on which the certification is made;
(2) is a recipient of public welfare assistance; or
(3) has reason to believe that the file on the consumer at the agency
contains inaccurate information due to fraud.
(d) Free disclosures in connection with fraud alerts. Upon the request of a
consumer, a consumer reporting agency described in section 603(p) shall
make all disclosures pursuant to section 609 without charge to the
consumer, as provided in subsections (a)(2) and (b)(2) of section 605A,
as applicable.
(e) Other charges prohibited. A consumer reporting agency shall not impose
any charge on a consumer for providing any notification required by this
title or making any disclosure required by this title, except as authorized
by subsection (f).
(f) Reasonable Charges Allowed for Certain Disclosures
(1) In general. In the case of a request from a consumer other than a
request that is covered by any of subsections (a) through (d), a
consumer reporting agency may impose a reasonable charge on a
consumer
§612 - 15 U.S.C. §1681j
69
(A) for making a disclosure to the consumer pursuant to section 609
[§ 1681g], which charge
(i) shall not exceed $8;
8
and
(ii) shall be indicated to the consumer before making the
disclosure; and
(B) for furnishing, pursuant to 611(d) [§ 1681i], following a
reinvestigation under section 611(a) [§ 1681i], a statement,
codification, or summary to a person designated by the
consumer under that section after the 30-day period beginning
on the date of notification of the consumer under paragraph (6)
or (8) of section 611(a) [§ 1681i] with respect to the
reinvestigation, which charge
(i) shall not exceed the charge that the agency would impose
on each designated recipient for a consumer report; and
(ii) shall be indicated to the consumer before furnishing such
information.
(2) Modification of amount. The Bureau shall increase the amount
referred to in paragraph (1)(A)(i) on January 1 of each year, based
proportionally on changes in the Consumer Price Index, with
fractional changes rounded to the nearest fifty cents.
8
(g) Prevention of Deceptive Marketing of Credit Reports
(1) In general. Subject to rulemaking pursuant to section 205(b) of
the Credit CARD Act of 2009, any advertisement for a free credit
report in any medium shall prominently disclose in such advertise-
ment that free credit reports are available under Federal law at
AnnualCreditReport.com (or such other source as may be authorized
under Federal law).
(2) Television and radio advertisement. In the case of an advertisement
broadcast by television, the disclosures required under paragraph (1)
shall be included in the audio and visual part of such advertisement.
In the case of an advertisement broadcast by televison or radio, the
disclosure required under paragraph (1) shall consist only of the
following: “This is not the free credit report provided for by Federal
law.”
8 Pursuant to Section 612(f)(2), the Federal Trade Commission set the maximum charge at $11.00, effective
January 1, 2011. See 75 Fed. Reg. 80817 (Dec. 23, 2010). The Bureau will set the charge for 2012 and
later years.
70
§613 - 15 U.S.C. §1681k
§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 veried 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
§615 - 15 U.S.C. §1681m
71
with respect to any consumer that is based in whole or in part on any
information contained in a consumer report, the person shall
(1) provide oral, written, or electronic notice of the adverse action to the
consumer;
(2) provide to the consumer written or electronic disclosure
(A) of a numerical credit score as defined in section 609(f)(2)
(A) used by such person in taking any adverse action based in
whole or in part on any information in a consumer report; and
(B) of the information set forth in subparagraphs (B) through (E) of
section 609(f)(1);
(3) provide to the consumer orally, in writing, or electronically
(A) the name, address, and telephone number of the consumer
reporting agency (including a toll-free telephone number
established by the agency if the agency compiles and maintains
files on consumers on a nationwide basis) that furnished the
report to the person; and
(B) a statement that the consumer reporting agency did not make
the decision to take the adverse action and is unable to provide
the consumer the specific reasons why the adverse action was
taken; and
(4) provide to the consumer an oral, written, or electronic notice of the
consumer’s right
(A) to obtain, under section 612 [§ 1681j], a free copy of a
consumer report on the consumer from the consumer reporting
agency referred to in paragraph (3), which notice shall include
an indication of the 60-day period under that section for
obtaining such a copy; and
(B) to dispute, under section 611 [§ 1681i], with a consumer
reporting agency the accuracy or completeness of any
information in a consumer report furnished by the agency.
(b) Adverse Action Based on Information Obtained from Third Parties Other
than Consumer Reporting Agencies
(1) In general. Whenever credit for personal, family, or household
purposes involving a consumer is denied or the charge for such credit
is increased either wholly or partly because of information obtained
from a person other than a consumer reporting agency bearing upon
the consumer’s credit worthiness, credit standing, credit capacity,
character, general reputation, personal characteristics, or mode of
72
§615 - 15 U.S.C. §1681m
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
§615 - 15 U.S.C. §1681m
73
(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 reason-
able procedures to assure compliance with the provisions of this section.
(d) Duties of Users Making Written Credit or Insurance Solicitations on the
Basis of Information Contained in Consumer Files
(1) In general. Any person who uses a consumer report on any
consumer in connection with any credit or insurance transaction that
is not initiated by the consumer, that is provided to that person under
section 604(c)(1)(B) [§ 1681b], shall provide with each written
solicitation made to the consumer regarding the transaction a clear
and conspicuous statement that
(A) information contained in the consumer’s consumer report was
used in connection with the transaction;
(B) the consumer received the offer of credit or insurance because
the consumer satisfied the criteria for credit worthiness or
insurability under which the consumer was selected for the offer;
(C) if applicable, the credit or insurance may not be extended if,
after the consumer responds to the offer, the consumer does not
meet the criteria used to select the consumer for the offer or
any applicable criteria bearing on credit worthiness or
insurability or does not furnish any required collateral;
(D) the consumer has a right to prohibit information contained in
the consumer’s file with any consumer reporting agency from
being used in connection with any credit or insurance
transaction that is not initiated by the consumer; and
(E) the consumer may exercise the right referred to in subparagraph
(D) by notifying a notification system established under section
604(e) [§ 1681b].
(2) Disclosure of address and telephone number; format. A statement
under paragraph (1) shall –
(A) include the address and toll-free telephone number of the
appropriate notification system established under section
604(e); and
74
§615 - 15 U.S.C. §1681m
(B) be presented in such format and in such type size and manner
as to be simple and easy to understand, as established by the
Bureau, by rule, in consultation with the Federal Trade
Commission, Federal banking agencies and the National Credit
Union Administration.
See also 16 CFR Part 642
16 CFR Part 698 App A
70 Fed. Reg. 5022 (01/31/05)
(3) Maintaining criteria on file. A person who makes an offer of credit
or insurance to a consumer under a credit or insurance transaction
described in paragraph (1) shall maintain on file the criteria used to
select the consumer to receive the offer, all criteria bearing on credit
worthiness or insurability, as applicable, that are the basis for
determining whether or not to extend credit or insurance pursuant to
the offer, and any requirement for the furnishing of collateral as a
condition of the extension of credit or insurance, until the expiration
of the 3-year period beginning on the date on which the offer is made
to the consumer.
(4) Authority of federal agencies regarding unfair or deceptive acts or
practices not affected. This section is not intended to affect the
authority of any Federal or State agency to enforce a prohibition
against unfair or deceptive acts or practices, including the making of
false or misleading statements in connection with a credit or
insurance transaction that is not initiated by the consumer.
See also 16 CFR Part 681
72 Fed. Reg. 63772-74 (11/09/07)
74 Fed. Reg. 22640-41 (05/14/09)
(e) Red Flag Guidelines and Regulations Required (1)Guidelines. The
Federal banking agencies, the National Credit Union Administration, the
Federal Trade Commission, the Commodity Futures Trading Commission,
and the Securities and Exchange Commission shall jointly, with respect to
the entities that are subject to their respective enforcement authority under
section 621 –
(A) establish and maintain guidelines for use by each financial
institution and each creditor regarding identity theft with
respect to account holders at, or customers of, such entities,
and update such guidelines as often as necessary;
(B) prescribe regulations requiring each financial institution and
each creditor to establish reasonable policies and procedures for
implementing the guidelines established pursuant to
§615 - 15 U.S.C. §1681m
75
subparagraph (A), to identify possible risks to account holders
or customers or to the safety and soundness of the institution or
customers; and
(C) prescribe regulations applicable to card issuers to ensure that, if
a card issuer receives notification of a change of address for an
existing account, and within a short period of time (during
at least the first 30 days after such notification is received)
receives a request for an additional or replacement card for the
same account, the card issuer may not issue the additional or
replacement card, unless the card issuer, in accordance with
reasonable policies and procedures –
(i) notifies the cardholder of the request at the former address
of the cardholder and provides to the cardholder a means
of promptly reporting incorrect address changes;
(ii) notifies the cardholder of the request by such other means
of communication as the cardholder and the card issuer
previously agreed to; or
(iii) uses other means of assessing the validity of the change
of address, in accordance with reasonable policies and
procedures established by the card issuer in accordance
with the regulations prescribed under subparagraph (B).
(2) Criteria
(A) In general. In developing the guidelines required by paragraph
(1)(A), the agencies described in paragraph (1) shall identify
patterns, practices, and specific forms of activity that indicate
the possible existence of identity theft.
(B) Inactive accounts. In developing the guidelines required by
paragraph (1)(A), the agencies described in paragraph (1) shall
consider including reasonable guidelines providing that when
a transaction occurs with respect to a credit or deposit account
that has been inactive for more than 2 years, the creditor or
financial institution shall follow reasonable policies and
procedures that provide for notice to be given to a consumer
in a manner reasonably designed to reduce the likelihood of
identity theft with respect to such account.
(3) Consistency with verification requirements. Guidelines established
pursuant to paragraph (1) shall not be inconsistent with the policies
and procedures required under section 5318(l) of title 31, United
States Code.
76
§615 - 15 U.S.C. §1681m
(4) Definitions. As used in this subsection, the term “creditor” –
(A) means a creditor, as defined in section 702 of the Equal Credit
Opportunity Act (15 U.S.C. 1691a), that regularly and in the
ordinary course of business
(i) obtains or uses consumer reports, directly or indirectly, in
connection with a credit transaction;
(ii) furnishes information to consumer reporting agencies, as
described in section 623, in connection with a credit
transaction; or
(iii) advances funds to or on behalf of a person, based on an
obligation of the person to repay the funds or repayable
from specific property pledged by or on behalf of the
person;
(B) does not include a creditor described in subparagraph (A)(iii)
that advances funds on behalf of a person for expenses incidental
to a service provided by the creditor to that person; and
(C) includes any other type of creditor, as defined in that section
702, as the agency described in paragraph (1) having authority
over that creditor may determine appropriate by rule
promulgated by that agency, based on a determination that
such creditor offers or maintains accounts that are subject to a
reasonably foreseeable risk of identity theft.
(f) Prohibition on Sale or Transfer of Debt Caused by Identity Theft
(1) In general. No person shall sell, transfer for consideration, or place
for collection a debt that such person has been notified under section
605B has resulted from identity theft.
(2) pplicability. The prohibitions of this subsection shall apply to all
persons collecting a debt described in paragraph (1) after the date of
a notification under paragraph (1).
(3) Rule of construction. Nothing in this subsection shall be construed to
prohibit –
(A) the repurchase of a debt in any case in which the assignee of
the debt requires such repurchase because the debt has resulted
from identity theft;
(B) the securitization of a debt or the pledging of a portfolio of debt
as collateral in connection with a borrowing; or
§615 - 15 U.S.C. §1681m
77
(C) the transfer of debt as a result of a merger, acquisition,
purchase and assumption transaction, or transfer of substantially
all of the assets of an entity.
(g) Debt collector communications concerning identity theft. If a person acting
as a debt collector (as that term is defined in title VIII) on behalf of a third
party that is a creditor or other user of a consumer report is notified that
any information relating to a debt that the person is attempting to collect
may be fraudulent or may be the result of identity theft, that person shall –
(1) notify the third party that the information may be fraudulent or may
be the result of identity theft; and
(2) upon request of the consumer to whom the debt purportedly relates,
provide to the consumer all information to which the consumer would
otherwise be entitled if the consumer were not a victim of identity
theft, but wished to dispute the debt under provisions of law
applicable to that person.
(h) Duties of Users in Certain Credit Transactions
(1) In general. Subject to rules prescribed as provided in paragraph (6),
if any person uses a consumer report in connection with an
application for, or a grant, extension, or other provision of, credit
on material terms that are materially less favorable than the most
favorable terms available to a substantial proportion of consumers
from or through that person, based in whole or in part on a consumer
report, the person shall provide an oral, written, or electronic notice
to the consumer in the form and manner required by regulations
prescribed in accordance with this subsection.
(2) Timing. The notice required under paragraph (1) may be provided
at the time of an application for, or a grant, extension, or other
provision of, credit or the time of communication of an approval of
an application for, or grant, extension, or other provision of, credit,
except as provided in the regulations prescribed under paragraph (6).
(3) Exceptions. No notice shall be required from a person under this
subsection if –
(A) the consumer applied for specific material terms and was
granted those terms, unless those terms were initially specified
by the person after the transaction was initiated by the
consumer and after the person obtained a consumer report; or
(B) the person has provided or will provide a notice to the consumer
under subsection (a) in connection with the transaction.
78
§615 - 15 U.S.C. §1681m
(4) Other notice not sufficient. A person that is required to provide a
notice under subsection (a) cannot meet that requirement by
providing a notice under this subsection.
(5) Content and delivery of notice. A notice under this subsection shall,
at a minimum –
(A) include a statement informing the consumer that the terms
offered to the consumer are set based on information from a
consumer report;
(B) identify the consumer reporting agency furnishing the report;
(C) include a statement informing the consumer that the consumer
may obtain a copy of a consumer report from that consumer
reporting agency without charge;
(D) include the contact information specified by that consumer
reporting agency for obtaining such consumer reports
(including a toll-free telephone number established by the
agency in the case of a consumer reporting agency described in
section 603(p)); and
(E) include a statement informing the consumer of –
(i) a numerical credit score as defined in section 609(f)(2)
(A), used by such person in making the credit decision
described in paragraph (1) based in whole or in part on
any information in a consumer report; and
(ii) the information set forth in subparagraphs (B) through (E)
of section 609(f)(1).
See also 16 CFR Part 610
75 Fed. Reg. 2724 (01/15/10)
(6) Rulemaking
(A) Rules required. The Bureau shall prescribe rules to carry out
this subsection.
(B) Content. Rules required by subparagraph (A) shall address, but
are not limited to –
(i) the form, content, time, and manner of delivery of any
notice under this subsection;
(ii) clarification of the meaning of terms used in this
subsection, including what credit terms are material, and
when credit terms are materially less favorable;
§616 - 15 U.S.C. §1681n
79
(iii) exceptions to the notice requirement under this subsection
for classes of persons or transactions regarding which
the agencies determine that notice would not significantly
benefit consumers;
(iv) a model notice that may be used to comply with this
subsection; and
(v) the timing of the notice required under paragraph (1),
including the circumstances under which the notice must
be provided after the terms offered to the consumer were
set based on information from a consumer report.
(7) Compliance. A person shall not be liable for failure to perform the
duties required by this section if, at the time of the failure, the person
maintained reasonable policies and procedures to comply with this
section.
(8) Enforcement
(A) No civil actions. Sections 616 and 617 shall not apply to any
failure by any person to comply with this section.
(B) Administrative enforcement. This section shall be enforced
exclusively under section 621 by the Federal agencies and
officials identified in that section.
§616. Civil liability for willful noncompliance [15 U.S.C. §1681n]
(a) In general. Any person who willfully fails to comply with any requirement
imposed under this title with respect to any consumer is liable to that
consumer in an amount equal to the sum of
(1) (A) any actual damages sustained by the consumer as a result of
the failure or damages of not less than $100 and not more than
$1,000; or
(B) in the case of liability of a natural person for obtaining a
consumer report under false pretenses or knowingly without a
permissible purpose, actual damages sustained by the consumer
as a result of the failure or $1,000, whichever is greater;
(2) such amount of punitive damages as the court may allow; and
(3) in the case of any successful action to enforce any liability under this
section, the costs of the action together with reasonable attorney’s
fees as determined by the court.
(b) Civil liability for knowing noncompliance. Any person who obtains a
consumer report from a consumer reporting agency under false pretenses
80
§617 - 15 U.S.C. §1681o
or knowingly without a permissible purpose shall be liable to the consumer
reporting agency for actual damages sustained by the consumer reporting
agency or $1,000, whichever is greater.
(c) Attorney’s fees. Upon a finding by the court that an unsuccessful pleading,
motion, or other paper filed in connection with an action under this
section was filed in bad faith or for purposes of harassment, the court
shall award to the prevailing party attorney’s fees reasonable in relation to
the work expended in responding to the pleading, motion, or other paper.
(d) Clarification of willful noncompliance. For the purposes of this section,
any person who printed an expiration date on any receipt provided to a
consumer cardholder at a point of sale or transaction between December
4, 2004, and the date of the enactment of this subsection but otherwise
complied with the requirements of section 605(g) for such receipt shall not
be in willful noncompliance with section 605(g) by reason of printing such
expiration date on the receipt.
§617. Civil liability for negligent noncompliance
[15 U.S.C. §1681o]
(a) In general. Any person who is negligent in failing to comply with any
requirement imposed under this title with respect to any consumer is liable
to that consumer in an amount equal to the sum of
(1) any actual damages sustained by the consumer as a result of the
failure; and
(2) in the case of any successful action to enforce any liability under this
section, the costs of the action together with reasonable attorney’s
fees as determined by the court.
(b) Attorney’s fees. On a finding by the court that an unsuccessful pleading,
motion, or other paper filed in connection with an action under this
section was filed in bad faith or for purposes of harassment, the court
shall award to the prevailing party attorney’s fees reasonable in relation to
the work expended in responding to the pleading, motion, or other paper.
§618. Jurisdiction of courts; limitation of actions
[15 U.S.C. §1681p]
An action to enforce any liability created under this title may be brought in
any appropriate United States district court, without regard to the amount in
controversy, or in any other court of competent jurisdiction, not later than the
earlier of (1) 2 years after the date of discovery by the plaintiff of the violation
§621 - 15 U.S.C. §1681s
81
that is the basis for such liability; or (2) 5 years after the date on which the
violation that is the basis for such liability occurs.
§619. Obtaining information under false pretenses
[15 U.S.C. §1681q]
Any person who knowingly and willfully obtains information on a consumer
from a consumer reporting agency under false pretenses shall be fined under
title 18, United States Code, imprisoned for not more than 2 years, or both.
§620. Unauthorized disclosures by officers or employees
[15 U.S.C. §1681r]
Any officer or employee of a consumer reporting agency who knowingly and
willfully provides information concerning an individual from the agency’s files
to a person not authorized to receive that information shall be fined under title
18, United States Code, imprisoned for not more than 2 years, or both.
§621. Administrative enforcement [15 U.S.C. §1681s]
(a) Enforcement by Federal Trade Commission.
(1) In General. The Federal Trade Commission shall be authorized
to enforce compliance with the requirements imposed by this title
under the Federal Trade Commission Act (15 U.S.C. 41 et seq.),
with respect to consumer reporting agencies and all other persons
subject thereto, except to the extent that enforcement of the require-
ments imposed under this title is specifically committed to some
other Government agency under any of subparagraphs (A) through
(G) of subsection (b)(1), and subject to subtitle B of the Consumer
Financial Protection Act of 2010, subsection (b). For the purpose of
the exercise by the Federal Trade Commission of its functions and
powers under the Federal Trade Commission Act, a violation of any
requirement or prohibition imposed under this title shall constitute
an unfair or deceptive act or practice in commerce, in violation of
section 5(a) of the Federal Trade Commission Act (15 U.S.C. 45(a)),
and shall be subject to enforcement by the Federal Trade Commission
under section 5(b) of that Act with respect to any consumer reporting
agency or person that is subject to enforcement by the Federal Trade
Commission pursuant to this subsection, irrespective of whether that
person is engaged in commerce or meets any other jurisdictional tests
under the Federal Trade Commission Act. The Federal Trade Com-
mission 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
82
§621 - 15 U.S.C. §1681s
require the filing of reports, the production of documents, and the
appearance of witnesses, as though the applicable terms and
conditions of the Federal Trade Commission Act were part of this
title. Any person violating any of the provisions of this title shall be
subject to the penalties and entitled to the privileges and immunities
provided in the Federal Trade Commission Act as though the
applicable terms and provisions of such Act are part of this title.
(2) Penalties
(A) Knowing Violations. Except as otherwise provided by subtitle
B of the Consumer Financial Protection Act of 2010, in the
event of a knowing violation, which constitutes a pattern or
practice of violations of this title, the Federal Trade Commis-
sion may commence a civil action to recover a civil penalty
in a district court of the United States against any person that
violates this title. In such action, such person shall be liable for
a civil penalty of not more than $2,500 per violation.
9
(B) Determining Penalty Amount. In determining the amount of a
civil penalty under subparagraph (A), the court shall take into
account the degree of culpability, any history of such prior
conduct, ability to pay, effect on ability to continue to do
business, and such other matters as justice may require.
(C) Limitation. Notwithstanding paragraph (2), a court may not
impose any civil penalty on a person for a violation of section
623(a)(1), unless the person has been enjoined from committing
the violation, or ordered not to commit the violation, in an action
or proceeding brought by or on behalf of the Federal Trade
Commission, and has violated the injunction or order, and the
court may not impose any civil penalty for any violation occurring
before the date of the violation of the injunction or order.
(b) Enforcement by Other Agencies.
(1) In General. Subject to subtitle B of the Consumer Financial
Protection Act of 2010, compliance with the requirements imposed
under this title with respect to consumer reporting agencies, persons
who use consumer reports from such agencies, persons who furnish
information to such agencies, and users of information that are
subject to section 615(d) shall be enforced under –
9 Pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, the Federal Trade Commission
increased the maximum civil penalty to $3,500 per violation. See 74 Fed. Reg. 857 (Jan. 9, 2009).
§621 - 15 U.S.C. §1681s
83
(A) section 8 of the Federal Deposit Insurance Act (12 U.S.C.
1818), by the appropriate Federal banking agency, as defined
in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C.
1813(q)), with respect to –
(i) any national bank or State savings association, and any
Federal branch or Federal agency of a foreign bank;
(ii) any member bank of the Federal Reserve System (other
than a national bank), a branch or agency of a foreign
bank (other than a Federal branch, Federal agency, or
insured State branch of a foreign bank), a commercial
lending company owned or controlled by a foreign bank,
and any organization operating under section 25 or 25A of
the Federal Reserve Act; and
(iii) any bank or Federal savings association insured by the
Federal Deposit Insurance Corporation (other than a
member of the Federal Reserve System) and any insured
State branch of a foreign bank;
(B) the Federal Credit Union Act (12 U.S.C. 1751 et seq.), by the
Administrator of the National Credit Union Administration with
respect to any Federal credit union;
(C) subtitle IV of title 49, United States Code, by the Secretary of
Transportation, with respect to all carriers subject to the
jurisdiction of the Surface Transportation Board;
(D) the Federal Aviation Act of 1958 (49 U.S.C. App. 1301 et
seq.), by the Secretary of Transportation, with respect to any
air carrier or foreign air carrier subject to that Act;
(E) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.)
(except as provided in section 406 of that Act), by the Secretary
of Agriculture, with respect to any activities subject to that Act;
(F) the Commodity Exchange Act, with respect to a person subject
to the jurisdiction of the Commodity Futures Trading
Commission;
(G) the Federal securities laws, and any other laws that are subject
to the jurisdiction of the Securities and Exchange Commission,
with respect to a person that is subject to the jurisdiction of the
Securities and Exchange Commission; and
(H) subtitle E of the Consumer Financial Protection Act of 2010, by
the Bureau, with respect to any person subject to this title.
84
§621 - 15 U.S.C. §1681s
(2) Incorporated Definitions. The terms used in paragraph (1) that are
not defined in this title or otherwise defined in section 3(s) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(s)) have the same
meanings as in section 1(b) of the International Banking Act of 1978
(12 U.S.C. 3101).
(c) State Action for Violations
(1) Authority of states. In addition to such other remedies as are
provided under State law, if the chief law enforcement officer of a
State, or an official or agency designated by a State, has reason to
believe that any person has violated or is violating this title, the State –
(A) may bring an action to enjoin such violation in any appropriate
United States district court or in any other court of competent
jurisdiction;
(B) subject to paragraph (5), may bring an action on behalf of the
residents of the State to recover
(i) damages for which the person is liable to such residents
under sections 616 and 617 [§§ 1681n and 1681o] as a
result of the violation;
(ii) in the case of a violation described in any of paragraphs
(1) through (3) of section 623(c) [§ 1681s-2], damages for
which the person would, but for section 623(c), be liable
to such residents as a result of the violation; or
(iii) damages of not more than $1,000 for each willful or
negligent violation; and
(C) in the case of any successful action under subparagraph (A) or
(B), shall be awarded the costs of the action and reasonable
attorney fees as determined by the court.
(2) Rights of federal regulators. The State shall serve prior written
notice of any action under paragraph (1) upon the Bureau and the
Federal Trade Commission or the appropriate Federal regulator
determined under subsection (b) and provide the Bureau and the
Federal Trade Commission or appropriate Federal regulator with a
copy of its complaint, except in any case in which such prior notice is
not feasible, in which case the State shall serve such notice immedi-
ately upon instituting such action. The Bureau and the Federal Trade
Commission or appropriate Federal regulator shall have the right –
(A) to intervene in the action;
(B) upon so intervening, to be heard on all matters arising therein;
§621 - 15 U.S.C. §1681s
85
(C) to remove the action to the appropriate United States district
court; and
(D) to file petitions for appeal.
(3) Investigatory powers. For purposes of bringing any action under
this subsection, nothing in this subsection shall prevent the chief law
enforcement officer, or an official or agency designated by a State,
from exercising the powers conferred on the chief law enforcement
officer or such official by the laws of such State to conduct
investigations or to administer oaths or affirmations or to compel the
attendance of witnesses or the production of documentary and other
evidence.
(4) Limitation on state action while federal action pending. If the
Bureau, the Federal Trade Commission, or the appropriate Federal
regulator has instituted a civil action or an administrative action
under section 8 of the Federal Deposit Insurance Act for a violation
of this title, no State may, during the pendency of such action, bring
an action under this section against any defendant named in the
complaint of the Bureau, the Federal Trade Commission, or the
appropriate Federal regulator for any violation of this title that is
alleged in that complaint.
(5) Limitations on State Actions for Certain Violations
(A) Violation of injunction required. A State may not bring an
action against a person under paragraph (1)(B) for a violation
described in any of paragraphs (1) through (3) of section
623(c), unless
(i) the person has been enjoined from committing the
violation, in an action brought by the State under paragraph
(1)(A); and
(ii) the person has violated the injunction.
(B) Limitation on damages recoverable. In an action against a
person under paragraph (1)(B) for a violation described in any
of paragraphs (1) through (3) of section 623(c), a State may not
recover any damages incurred before the date of the violation
of an injunction on which the action is based.
(d) Enforcement under other authority. For the purpose of the exercise by
any agency referred to in subsection (b) of this section of its powers under
any Act referred to in that subsection, a violation of any requirement
imposed under this title shall be deemed to be a violation of a requirement
imposed under that Act. In addition to its powers under any provision of
86
§621 - 15 U.S.C. §1681s
law specifically referred to in subsection (b) of this section, each of the
agencies referred to in that subsection may exercise, for the purpose of
enforcing compliance with any requirement imposed under this title any
other authority conferred on it by law.
(e) Regulatory Authority
(1) In General. The Bureau shall prescribe such regulations as are
necessary to carry out the purposes of this title, except with respect
to sections 615(e) and 628. The Bureau may prescribe regulations
as may be necessary or appropriate to administer and carry out the
purposes and objectives of this title, and to prevent evasions thereof
or to facilitate compliance therewith. Except as provided in section
1029(a) of the Consumer Financial Protection Act of 2010, the regu-
lations prescribed by the Bureau under this title shall apply to any
person that is subject to this title, notwithstanding the enforcement
authorities granted to other agencies under this section.
(2) Deference. Notwithstanding any power granted to any Federal
agency under this title, the deference that a court affords to a Federal
agency with respect to a determination made by such agency relating
to the meaning or interpretation of any provision of this title that is
subject to the jurisdiction of such agency shall be applied as if that
agency were the only agency authorized to apply, enforce, interpret,
or administer the provisions of this title The regulations prescribed by
the Bureau under this title shall apply to any person that is subject to
this title, notwithstanding the enforcement authorities granted to other
agencies under this section.
(f) Coordination of Consumer Complaint Investigations
(1) In general. Each consumer reporting agency described in section
603(p) shall develop and maintain procedures for the referral to each
other such agency of any consumer complaint received by the agency
alleging identity theft, or requesting a fraud alert under section 605A
or a block under section 605B.
(2) Model form and procedure for reporting identity theft. The Bureau,
in consultation with the Federal Trade Commission, the Federal
banking agencies, and the National Credit Union Administration,
shall develop a model form and model procedures to be used by
consumers who are victims of identity theft for contacting and
informing creditors and consumer reporting agencies of the fraud.
See also 70 Fed.Reg. 21792 (04/27/05)
§623 - 15 U.S.C. §1681s-2
87
(3) Annual summary reports. Each consumer reporting agency described
in section 603(p) shall submit an annual summary report to the
Bureau on consumer complaints received by the agency on identity
theft or fraud alerts.
(g) Bureau regulation of coding of trade names. If the Bureau determines
that a person described in paragraph (9) of section 623(a) has not met the
requirements of such paragraph, the Bureau shall take action to ensure the
person’s compliance with such paragraph, which may include issuing
model guidance or prescribing reasonable policies and procedures, as
necessary to ensure that such person complies with such paragraph.
§622. Information on overdue child support obligations
[15 U.S.C. §1681s-1]
Notwithstanding any other provision of this title, a consumer reporting agency
shall include in any consumer report furnished by the agency in accordance
with section 604 [§ 1681b] of this title, any information on the failure of the
consumer to pay overdue support which
(1) is provided
(A) to the consumer reporting agency by a State or local child
support enforcement agency; or
(B) to the consumer reporting agency and verified by any local,
State, or Federal government agency; and
(2) antedates the report by 7 years or less.
§623. Responsibilities of furnishers of information to consumer
reporting agencies [15 U.S.C. §1681s-2]
(a) Duty of Furnishers of Information to Provide Accurate Information
(1) Prohibition
(A) Reporting information with actual knowledge of errors. A
person shall not furnish any information relating to a consumer
to any consumer reporting agency if the person knows or has
reasonable cause to believe that the information is inaccurate.
(B) Reporting information after notice and confirmation of errors.
A person shall not furnish information relating to a consumer to
any consumer reporting agency if
(i) the person has been notified by the consumer, at the
address specified by the person for such notices, that
specific information is inaccurate; and
88
§623 - 15 U.S.C. §1681s-2
(ii) the information is, in fact, inaccurate.
(C) No address requirement. A person who clearly and conspicu-
ously specifies to the consumer an address for notices referred
to in subparagraph (B) shall not be subject to subparagraph (A);
however, nothing in subparagraph (B) shall require a person to
specify such an address.
(D) Definition. For purposes of subparagraph (A), the term
“reasonable cause to believe that the information is inaccurate”
means having specific knowledge, other than solely allegations
by the consumer, that would cause a reasonable person to have
substantial doubts about the accuracy of the information.
(E) Rehabilitation of private education loans.
(i) In general.
Notwithstanding any other provision of this
section, a consumer may request a financial institution to
remove from a consumer report a reported default
regarding a private education loan, and such information
shall not be considered inaccurate, if
(I) the financial institution chooses to offer a loan
rehabilitation program which includes, without
limitation, a requirement of the consumer to make
consecutive on-time monthly payments in a number
that demonstrates, in the assessment of the financial
institution offering the loan rehabilitation program, a
renewed ability and willingness to repay the loan; and
(II) the requirements of the loan rehabilitation program
described in subclause (I) are successfully met.
(ii) Banking agencies.
(I) In general. If a financial institution is supervised by a
Federal banking agency, the financial institution shall
seek written approval concerning the terms and
conditions of the loan rehabilitation program
described in clause (i) from the appropriate Federal
banking agency.
(II) Feedback. An appropriate Federal banking agency
shall provide feedback to a financial institution within
120 days of a request for approval under subclause (I).
(iii) Limitation.
§623 - 15 U.S.C. §1681s-2
89
(I) In general. A consumer may obtain the benefits
available under this subsection with respect to
rehabilitating a loan only 1 time per loan.
(II) Rule of construction. Nothing in this subparagraph
may be construed to require a financial institution to
offer a loan rehabilitation program or to remove any
reported default from a consumer report as a
consideration of a loan rehabilitation program,
except as described in clause (i).
(iv) Definitions. For purposes of this subparagraph
(I) the term ‘appropriate Federal banking agency’ has the
meaning given the term in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813); and
(II) the term ‘private education loan’ has the meaning
given the term in section 140(a) of the Truth in
Lending Act (15 U.S.C. 1650(a)).
(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 determi-
nation and provide to the agency any corrections to that infor-
mation, 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.
90
§623 - 15 U.S.C. §1681s-2
(5) Duty to Provide Notice of Delinquency of Accounts
(A) In general. A person who furnishes information to a consumer
reporting agency regarding a delinquent account being placed
for collection, charged to profit or loss, or subjected to any
similar action shall, not later than 90 days after furnishing the
information, notify the agency of the date of delinquency on
the account, which shall be the month and year of the
commencement of the delinquency on the account that
immediately preceded the action.
(B) Rule of construction. For purposes of this paragraph only, and
provided that the consumer does not dispute the information, a
person that furnishes information on a delinquent account that is
placed for collection, charged for profit or loss, or subjected to
any similar action, complies with this paragraph, if –
(i) the person reports the same date of delinquency as that
provided by the creditor to which the account was owed at
the time at which the commencement of the delinquency
occurred, if the creditor previously reported that date of
delinquency to a consumer reporting agency;
(ii) the creditor did not previously report the date of
delinquency to a consumer reporting agency, and the
person establishes and follows reasonable procedures to
obtain the date of delinquency from the creditor or another
reliable source and reports that date to a consumer
reporting agency as the date of delinquency; or
(iii) the creditor did not previously report the date of
delinquency to a consumer reporting agency and the date
of delinquency cannot be reasonably obtained as provided
in clause (ii), the person establishes and follows reasonable
procedures to ensure the date reported as the date of
delinquency precedes the date on which the account is
placed for collection, charged to profit or loss, or
subjected to any similar action, and reports such date to
the credit reporting agency.
(6) Duties of Furnishers Upon Notice of Identity Theft-Related Information
(A) Reasonable procedures. A person that furnishes information to
any consumer reporting agency shall have in place reasonable
procedures to respond to any notification that it receives from
a consumer reporting agency under section 605B relating to
§623 - 15 U.S.C. §1681s-2
91
information resulting from identity theft, to prevent that person
from refurnishing such blocked information.
(B) Information alleged to result from identity theft. If a consumer
submits an identity theft report to a person who furnishes
information to a consumer reporting agency at the address
specified by that person for receiving such reports stating that
information maintained by such person that purports to relate to
the consumer resulted from identity theft, the person may not
furnish such information that purports to relate to the consumer
to any consumer reporting agency, unless the person
subsequently knows or is informed by the consumer that the
information is correct.
(7) Negative Information
(A) Notice to Consumer Required
(i) In general. If any financial institution that extends credit
and regularly and in the ordinary course of business
furnishes information to a consumer reporting agency
described in section 603(p) furnishes negative information
to such an agency regarding credit extended to a
customer, the financial institution shall provide a notice of
such furnishing of negative information, in writing, to the
customer.
(ii) Notice effective for subsequent submissions. After
providing such notice, the financial institution may submit
additional negative information to a consumer reporting
agency described in section 603(p) with respect to the
same transaction, extension of credit, account, or customer
without providing additional notice to the customer.
(B) Time of Notice
(i) In general. The notice required under subparagraph (A)
shall be provided to the customer prior to, or no later than
30 days after, furnishing the negative information to a
consumer reporting agency described in section 603(p).
(ii) Coordination with new account disclosures. If the notice
is provided to the customer prior to furnishing the negative
information to a consumer reporting agency, the notice
may not be included in the initial disclosures provided
under section 127(a) of the Truth in Lending Act.
92
§623 - 15 U.S.C. §1681s-2
(C) Coordination with other disclosures. The notice required under
subparagraph (A) –
(i) may be included on or with any notice of default, any
billing statement, or any other materials provided to the
customer; and
(ii) must be clear and conspicuous.
See also 12 CFR Part 222, App B
70 Fed. Reg. 33281 (06/15/04)
(D) Model Disclosure
(i) Duty of Bureau. The Bureau shall prescribe a brief model
disclosure that a financial institution may use to comply
with subparagraph (A), which shall not exceed 30 words.
(ii) Use of model not required. No provision of this paragraph
may be construed to require a financial institution to use
any such model form prescribed by the Bureau.
(iii) Compliance using model. A financial institution shall be
deemed to be in compliance with subparagraph (A) if the
financial institution uses any model form prescribed by the
Bureau under this subparagraph, or the financial institution
uses any such model form and rearranges its format.
(E) Use of notice without submitting negative information. No
provision of this paragraph shall be construed as requiring a
financial institution that has provided a customer with a notice
described in subparagraph (A) to furnish negative information
about the customer to a consumer reporting agency.
(F) Safe harbor. A financial institution shall not be liable for
failure to perform the duties required by this paragraph if, at
the time of the failure, the financial institution maintained
reasonable policies and procedures to comply with this para-
graph or the financial institution reasonably believed that the
institution is prohibited, by law, from contacting the consumer.
(G) Definitions. For purposes of this paragraph, the following
definitions shall apply:
(i) The term “negative information” means information
concerning a customer’s delinquencies, late payments,
insolvency, or any form of default.
(ii) The terms “customer” and “financial institution” have the
same meanings as in section 509 Public Law 106-102.
§623 - 15 U.S.C. §1681s-2
93
(8) Ability of Consumer to Dispute Information Directly with Furnisher
See also 16 CFR Part 660.4
74 Fed. Reg. 31484 (07/01/09)
(A) In general. The Bureau, in consultation with the Federal Trade
Commission, the Federal banking agencies, and the National
Credit Union Administration, shall prescribe regulations that
shall identify the circumstances under which a furnisher shall
be required to reinvestigate a dispute concerning the accuracy
of information contained in a consumer report on the consumer,
based on a direct request of a consumer.
(B) Considerations. In prescribing regulations under subparagraph
(A), the agencies shall weigh –
(i) the benefits to consumers with the costs on furnishers and
the credit reporting system;
(ii) the impact on the overall accuracy and integrity of
consumer reports of any such requirements;
(iii) whether direct contact by the consumer with the furnisher
would likely result in the most expeditious resolution of
any such dispute; and
(iv) the potential impact on the credit reporting process if
credit repair organizations, as defined in section 403(3)
[15 U.S.C. §1679a(3)], including entities that would be a
credit repair organization, but for section 403(3)(B)(i), are
able to circumvent the prohibition in subparagraph (G).
(C) Applicability. Subparagraphs (D) through (G) shall apply in
any circumstance identified under the regulations promulgated
under subparagraph (A).
(D) Submitting a notice of dispute. A consumer who seeks to
dispute the accuracy of information shall provide a dispute
notice directly to such person at the address specified by the
person for such notices that –
(i) identifies the specific information that is being disputed;
(ii) explains the basis for the dispute; and
(iii) includes all supporting documentation required by the
furnisher to substantiate the basis of the dispute.
(E) Duty of person after receiving notice of dispute. After receiving
a notice of dispute from a consumer pursuant to subparagraph
94
§623 - 15 U.S.C. §1681s-2
(D), the person that provided the information in dispute to a
consumer reporting agency shall –
(i) conduct an investigation with respect to the disputed
information;
(ii) review all relevant information provided by the consumer
with the notice;
(iii) complete such person’s investigation of the dispute and
report the results of the investigation to the consumer
before the expiration of the period under section 611(a)
(1) within which a consumer reporting agency would be
required to complete its action if the consumer had elected
to dispute the information under that section; and
(iv) if the investigation finds that the information reported was
inaccurate, promptly notify each consumer reporting
agency to which the person furnished the inaccurate
information of that determination and provide to the
agency any correction to that information that is necessary
to make the information provided by the person accurate.
(F) Frivolous or Irrelevant Dispute
(i) In general. This paragraph shall not apply if the person
receiving a notice of a dispute from a consumer
reasonably determines that the dispute is frivolous or
irrelevant, including –
(I) by reason of the failure of a consumer to provide
sufficient information to investigate the disputed
information; or
(II) the submission by a consumer of a dispute that is
substantially the same as a dispute previously
submitted by or for the consumer, either directly to
the person or through a consumer reporting agency
under subsection (b), with respect to which the person
has already performed the person’s duties under this
paragraph or subsection (b), as applicable.
(ii) Notice of determination. Upon making any determination
under clause (i) that a dispute is frivolous or irrelevant,
the person shall notify the consumer of such determination
not later than 5 business days after making such determi-
nation, by mail or, if authorized by the consumer for that
purpose, by any other means available to the person.
§623 - 15 U.S.C. §1681s-2
95
(iii) Contents of notice. A notice under clause (ii) shall include –
(I) the reasons for the determination under clause (i); and
(II) identification of any information required to investigate
the disputed information, which may consist of a
standardized form describing the general nature of
such information.
(G) Exclusion of credit repair organizations. This paragraph shall
not apply if the notice of the dispute is submitted by, is
prepared on behalf of the consumer by, or is submitted on a
form supplied to the consumer by, a credit repair organization,
as defined in section 403(3), or an entity that would be a credit
repair organization, but for section 403(3)(B)(i).
(9) Duty to provide notice of status as medical information furnisher.
A person whose primary business is providing medical services,
products, or devices, or the person’s agent or assignee, who furnishes
information to a consumer reporting agency on a consumer shall be
considered a medical information furnisher for purposes of this title,
and shall notify the agency of such status.
(b) Duties of Furnishers of Information upon Notice of Dispute
(1) In general. After receiving notice pursuant to section 611(a)(2)
[§ 1681i] of a dispute with regard to the completeness or accuracy
of any information provided by a person to a consumer reporting
agency, the person shall
(A) conduct an investigation with respect to the disputed information;
(B) review all relevant information provided by the consumer
reporting agency pursuant to section 611(a)(2) [§ 1681i];
(C) report the results of the investigation to the consumer reporting
agency;
(D) if the investigation finds that the information is incomplete or
inaccurate, report those results to all other consumer reporting
agencies to which the person furnished the information and that
compile and maintain files on consumers on a nationwide basis;
and
(E) if an item of information disputed by a consumer is found to
be inaccurate or incomplete or cannot be verified after any
reinvestigation under paragraph (1), for purposes of reporting
to a consumer reporting agency only, as appropriate, based on
the results of the reinvestigation promptly –
96
§623 - 15 U.S.C. §1681s-2
(i) modify that item of information;
(ii) delete that item of information; or
(iii) permanently block the reporting of that item of information.
(2) Deadline. A person shall complete all investigations, reviews, and
reports required under paragraph (1) regarding information provided
by the person to a consumer reporting agency, before the expiration
of the period under section 611(a)(1) [§ 1681i] within which the
consumer reporting agency is required to complete actions required
by that section regarding that information.
(c) Limitation on liability. Except as provided in section 621(c)(1)(B),
sections 616 and 617 do not apply to any violation of –
(1) subsection (a) of this section, including any regulations issued
thereunder;
(2) subsection (e) of this section, except that nothing in this paragraph
shall limit, expand, or otherwise affect liability under section 616 or
617, as applicable, for violations of subsection (b) of this section; or
(3) subsection (e) of section 615.
(d) Limitation on enforcement. The provisions of law described in paragraphs
(1) through (3) of subsection (c) (other than with respect to the exception
described in paragraph (2) of subsection (c)) shall be enforced exclusively
as provided under section 621 by the Federal agencies and officials and
the State officials identified in section 621.
(e) Accuracy Guidelines and Regulations Required
See also 16 CFR Part 660
74 Fed. Reg. 31484 (07/01/09)
(1) Guidelines. The Bureau shall, with respect to persons or entities that
are subject to the enforcement authority of the Bureau under section
621 –
(A) establish and maintain guidelines for use by each person that
furnishes information to a consumer reporting agency regarding
the accuracy and integrity of the information relating to
consumers that such entities furnish to consumer reporting
agencies, and update such guidelines as often as necessary; and
(B) prescribe regulations requiring each person that furnishes
information to a consumer reporting agency to establish
reasonable policies and procedures for implementing the
guidelines established pursuant to subparagraph (A).
§624 - 15 U.S.C. §1681s-3
97
(2) Criteria. In developing the guidelines required by paragraph (1)(A),
the Bureau shall –
(A) identify patterns, practices, and specific forms of activity that
can compromise the accuracy and integrity of information
furnished to consumer reporting agencies;
(B) review the methods (including technological means) used to
furnish information relating to consumers to consumer
reporting agencies;
(C) determine whether persons that furnish information to consumer
reporting agencies maintain and enforce policies to ensure the
accuracy and integrity of information furnished to consumer
reporting agencies; and
(D) examine the policies and processes that persons that furnish
information to consumer reporting agencies employ to conduct
re investigations and correct inaccurate information relating to
consumers that has been furnished to consumer reporting agencies.
See also 16 CFR Parts 680, 698 Appx C
74 Fed. Reg. 22639-40 (05/14/09)
72 Fed. Reg. 61455-64 (10/30/07)
§624. Affiliate sharing [15 U.S.C. §1681s-3]
(a) Special Rule for Solicitation for Purposes of Marketing
(1) Notice. Any person that receives from another person related to it by
common ownership or affiliated by corporate control a communication
of information that would be a consumer report, but for clauses (i),
(ii), and (iii) of section 603(d)(2)(A), may not use the information to
make a solicitation for marketing purposes to a consumer about its
products or services, unless –
(A) it is clearly and conspicuously disclosed to the consumer that
the information may be communicated among such persons for
purposes of making such solicitations to the consumer; and
(B) the consumer is provided an opportunity and a simple method
to prohibit the making of such solicitations to the consumer by
such person.
(2) Consumer Choice
(A) In general. The notice required under paragraph (1) shall
allow the consumer the opportunity to prohibit all solicitations
referred to in such paragraph, and may allow the consumer
98
§624 - 15 U.S.C. §1681s-3
to choose from different options when electing to prohibit the
sending of such solicitations, including options regarding the
types of entities and information covered, and which methods
of delivering solicitations the consumer elects to prohibit.
(B) Format. Notwithstanding subparagraph (A), the notice
required under paragraph (1) shall be clear, conspicuous, and
concise, and any method provided under paragraph (1)(B) shall
be simple. The regulations prescribed to implement this section
shall provide specific guidance regarding how to comply with
such standards.
(3) Duration
(A) In general. The election of a consumer pursuant to paragraph
(1)(B) to prohibit the making of solicitations shall be effective
for at least 5 years, beginning on the date on which the person
receives the election of the consumer, unless the consumer
requests that such election be revoked.
(B) Notice upon expiration of effective period. At such time as the
election of a consumer pursuant to paragraph (1)(B) is no longer
effective, a person may not use information that the person
receives in the manner described in para-graph (1) to make any
solicitation for marketing purposes to the consumer, unless the
consumer receives a notice and an opportunity, using a simple
method, to extend the opt-out for another period of at least 5
years, pursuant to the procedures described in paragraph (1).
(4) Scope. This section shall not apply to a person –
(A) using information to make a solicitation for marketing purposes
to a consumer with whom the person has a pre-existing business
relationship;
(B) using information to facilitate communications to an individual
for whose benefit the person provides employee benefit or other
services pursuant to a contract with an employer related to and
arising out of the current employment relationship or status of
the individual as a participant or beneficiary of an employee
benefit plan;
(C) using information to perform services on behalf of another
person related by common ownership or affiliated by corporate
control, except that this subparagraph shall not be construed as
permitting a person to send solicitations on behalf of another
person, if such other person would not be permitted to send the
§624 - 15 U.S.C. §1681s-3
99
solicitation on its own behalf as a result of the election of the
consumer to prohibit solicitations under paragraph (1)(B);
(D) using information in response to a communication initiated by
the consumer;
(E) using information in response to solicitations authorized or
requested by the consumer; or
(F) if compliance with this section by that person would prevent
compliance by that person with any provision of State insurance
laws pertaining to unfair discrimination in any State in which
the person is lawfully doing business.
(5) No retroactivity. This subsection shall not prohibit the use of
information to send a solicitation to a consumer if such information
was received prior to the date on which persons are required to
comply with regulations implementing this subsection.
(b) Notice for other purposes permissible. A notice or other disclosure under
this section may be coordinated and consolidated with any other notice
required to be issued under any other provision of law by a person that is
subject to this section, and a notice or other disclosure that is equivalent to
the notice required by subsection (a), and that is provided by a person
described in subsection (a) to a consumer together with disclosures
required by any other provision of law, shall satisfy the requirements of
subsection (a).
(c) User requirements. Requirements with respect to the use by a person
of information received from another person related to it by common
ownership or affiliated by corporate control, such as the requirements
of this section, constitute requirements with respect to the exchange of
information among persons affiliated by common ownership or common
corporate control, within the meaning of section 625(b)(2).
(d) Definitions. For purposes of this section, the following definitions shall
apply:
(1) The term “pre-existing business relationship” means a relationship
between a person, or a person’s licensed agent, and a consumer,
based on –
(A) a financial contract between a person and a consumer which is
in force;
(B) the purchase, rental, or lease by the consumer of that person’s
goods or services, or a financial transaction (including holding
an active account or a policy in force or having another
100
§625 - 15 U.S.C. §1681t
continuing relationship) between the consumer and that person
during the 18-month period immediately preceding the date on
which the consumer is sent a solicitation covered by this section;
(C) an inquiry or application by the consumer regarding a product
or service offered by that person, during the 3-month period
immediately preceding the date on which the consumer is sent a
solicitation covered by this section; or
(D) any other pre-existing customer relationship defined in the
regulations implementing this section.
(2) The term “solicitation” means the marketing of a product or service
initiated by a person to a particular consumer that is based on an
exchange of information described in subsection (a), and is intended
to encourage the consumer to purchase such product or service, but
does not include communications that are directed at the general
public or determined not to be a solicitation by the regulations
prescribed under this section.
§625. Relation to State laws [15 U.S.C. §1681t]
(a) In general. Except as provided in subsections (b) and (c), this title does
not annul, alter, affect, or exempt any person subject to the provisions of
this title from complying with the laws of any State with respect to the
collection, distribution, or use of any information on consumers, or for
the prevention or mitigation of identity theft, except to the extent that
those laws are inconsistent with any provision of this title, and then only
to the extent of the inconsistency.
(b) General exceptions. No requirement or prohibition may be imposed under
the laws of any State
(1) with respect to any subject matter regulated under
(A) subsection (c) or (e) of section 604 [§ 1681b], relating to the
prescreening of consumer reports;
(B) section 611 [§ 1681i], relating to the time by which a consumer
reporting agency must take any action, including the provision
of notification to a consumer or other person, in any procedure
related to the disputed accuracy of information in a consumer’s
file, except that this subparagraph shall not apply to any State
law in effect on the date of enactment of the Consumer Credit
Reporting Reform Act of 1996;
§625 - 15 U.S.C. §1681t
101
(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 con-
sumer and that consists of a firm offer of credit or insurance;
(E) section 605 [§ 1681c], relating to information contained in
consumer reports, except that this subparagraph shall not apply
to any State law in effect on the date of enactment of the
Consumer Credit Reporting Reform Act of 1996;
(F) section 623 [§ 1681s-2], relating to the responsibilities of
persons who furnish information to consumer reporting
agencies, except that this paragraph shall not apply
(i) with respect to section 54A(a) of chapter 93 of the
Massachusetts Annotated Laws (as in effect on the date of
enactment of the Consumer Credit Reporting Reform Act
of 1996); or
(ii) with respect to section 1785.25(a) of the California Civil
Code (as in effect on the date of enactment of the
Consumer Credit Reporting Reform Act of 1996);
(G) section 609(e), relating to information available to victims
under section 609(e);
(H) section 624, relating to the exchange and use of information to
make a solicitation for marketing purposes;
(I) section 615(h), relating to the duties of users of consumer
reports to provide notice with respect to terms in certain credit
transactions;
(J) subsections (i) and (j) of section 605A relating to security
freezes; or
(K) subsection (k) of section 605A, relating to credit monitoring for
active duty military consumers, as defined in that subsection;
(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);
102
§625 - 15 U.S.C. §1681t
(3) with respect to the disclosures required to be made under subsection
(c), (d), (e), or (g) of section 609, or subsection (f) of section 609
relating to the disclosure of credit scores for credit granting purposes,
except that this paragraph –
(A) shall not apply with respect to sections 1785.10, 1785.16, and
1785.20.2 of the California Civil Code (as in effect on the date
of enactment of the Fair and Accurate Credit Transactions Act
of 2003) and section 1785.15 through section 1785.15.2 of such
Code (as in effect on such date);
(B) shall not apply with respect to sections 5-3-106(2) and 212-
14.3-104.3 of the Colorado Revised Statutes (as in effect on the
date of enactment of the Fair and Accurate Credit Transactions
Act of 2003); and
(C) shall not be construed as limiting, annulling, affecting, or
superseding any provision of the laws of any State regulating
the use in an insurance activity, or regulating disclosures
concerning such use, of a credit-based insurance score of a
consumer by any person engaged in the business of insurance;
(4) with respect to the frequency of any disclosure under section 612(a),
except that this paragraph shall not apply –
(A) with respect to section 12-14.3-105(1)(d) of the Colorado
Revised Statutes (as in effect on the date of enactment of the
Fair and Accurate Credit Transactions Act of 2003);
(B) with respect to section 10-1-393(29)(C) of the Georgia Code
(as in effect on the date of enactment of the Fair and Accurate
Credit Transactions Act of 2003);
(C) with respect to section 1316.2 of title 10 of the Maine Revised
Statutes (as in effect on the date of enactment of the Fair and
Accurate Credit Transactions Act of 2003);
(D) with respect to sections 14-1209(a)(1) and 14-1209(b)(1)(i) of
the Commercial Law Article of the Code of Maryland (as in
effect on the date of enactment of the Fair and Accurate Credit
Transactions Act of 2003);
(E) with respect to section 59(d) and section 59(e) of chapter 93 of
the General Laws of Massachusetts (as in effect on the date of
enactment of the Fair and Accurate Credit Transactions Act of
2003);
§626 - 15 U.S.C. §1681u
103
(F) with respect to section 56:11-37.10(a)(1) of the New Jersey
Revised Statutes (as in effect on the date of enactment of the
Fair and Accurate Credit Transactions Act of 2003); or
(G) with respect to section 2480c(a)(1) of title 9 of the Vermont
Statutes Annotated (as in effect on the date of enactment of the
Fair and Accurate Credit Transactions Act of 2003); or
(5) with respect to the conduct required by the specific provisions of –
(A) section 605(g);
(B) section 605A;
(C) section 605B;
(D) section 609(a)(1)(A);
(E) section 612(a);
(F) subsections (e), (f), and (g) of section 615;
(G) section 621(f);
(H) section 623(a)(6); or
(I) section 628.
(c) Definition of firm offer of credit or insurance. Notwithstanding any
definition of the term “firm offer of credit or insurance” (or any equiva-
lent term) under the laws of any State, the definition of that term contained
in section 603(l) [§ 1681a] shall be construed to apply in the enforcement
and interpretation of the laws of any State governing consumer reports.
(d) Limitations. Subsections (b) and (c) do not affect any settlement,
agreement, or consent judgment between any State Attorney General and
any consumer reporting agency in effect on the date of enactment of the
Consumer Credit Reporting Reform Act of 1996.
§626. Disclosures to FBI for counterintelligence purposes
[15 U.S.C. §1681u]
(a) Identity of financial institutions. Notwithstanding section 604 [§ 1681b] or
any other provision of this title, a consumer reporting agency shall furnish
to the Federal Bureau of Investigation the names and addresses of all
financial institutions (as that term is defined in section 1101 of the Right to
Financial Privacy Act of 1978 [12 U.S.C. § 3401]) at which a consumer
maintains or has maintained an account, to the extent that information is
in the files of the agency, when presented with a written request for that
information that includes a term that specifically identifies a consumer
or account to be used as the basis for the production of that information,
104
§626 - 15 U.S.C. §1681u
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 that includes a term that specifically identifies a
consumer or account to be used as the basis for the production of that
information, 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, which
shall include a term that specifically identifies a consumer or account to be
used as the basis for the production of the information, 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,
§626 - 15 U.S.C. §1681u
105
provided that such an investigation of a United States person is not
conducted solely upon the basis of activities protected by the first
amendment to the Constitution of the United States. The terms of an order
issued under this subsection shall not disclose that the order is issued for
purposes of a counterintelligence investigation.
(d) Confidentiality
(1) If the Director of the Federal Bureau of Investigation, or his designee
in a position not lower than Deputy Assistant Director at Bureau
headquarters or a Special Agent in Charge in a Bureau field office
designated by the Director, certifies that otherwise there may result a
danger to the national security of the United States, interference with
a criminal, counterterrorism, or counterintelligence investigation,
interference with diplomatic relations, or danger to the life or
physical safety of any person, no consumer reporting agency or
officer, employee, or agent of a consumer reporting agency shall
disclose to any person (other than those to whom such disclosure is
necessary to comply with the request or an attorney to obtain legal
advice or legal assistance with respect to the request) that the Federal
Bureau of Investigation has sought or obtained the identity of financial
institutions or a consumer report respecting any consumer under
subsection (a), (b), or (c) of this section, and no consumer reporting
agency or officer, employee, or agent of a consumer reporting
agency shall include in any consumer report any information that
would indicate that the Federal Bureau of Investigation has sought or
obtained such information on a consumer report.
(2) The request shall notify the person or entity to whom the request is
directed of the nondisclosure requirement under paragraph (1).
(3) Any recipient disclosing to those persons necessary to comply with
the request or to an attorney to obtain legal advice or legal assistance
with respect to the request shall inform such persons of any applicable
nondisclosure requirement. Any person who receives a disclosure
under this subsection shall be subject to the same prohibitions on
disclosure under paragraph (1).
(4) At the request of the Director of the Federal Bureau of Investigation
or the designee of the Director, any person making or intending to
make a disclosure under this section shall identify to the Director or
such designee the person to whom such disclosure will be made or
to whom such disclosure was made prior to the request, except that
nothing in this section shall require a person to inform the Director
or such designee of the identity of an attorney to whom disclosure
106
§626 - 15 U.S.C. §1681u
was made or will be made to obtain legal advice or legal assistance
with respect to the request for the identity of financial institutions or
a consumer report respecting any consumer under this section.
(e) Payment of fees. The Federal Bureau of Investigation shall, subject to
the availability of appropriations, pay to the consumer reporting agency
assembling or providing report or information in accordance with
procedures established under this section a fee for reimbursement for such
costs as are reasonably necessary and which have been directly incurred in
searching, reproducing, or transporting books, papers, records, or other
data required or requested to be produced under this section.
(f) Limit on dissemination. The Federal Bureau of Investigation may not
disseminate information obtained pursuant to this section outside of the
Federal Bureau of Investigation, except to other Federal agencies as may
be necessary for the approval or conduct of a foreign counterintelligence
investigation, or, where the information concerns a person subject to the
Uniform Code of Military Justice, to appropriate investigative authorities
within the military department concerned as may be necessary for the
conduct of a joint foreign counterintelligence investigation.
(g) Rules of construction. Nothing in this section shall be construed to
prohibit information from being furnished by the Federal Bureau of
Investigation pursuant to a subpoena or court order, in connection with a
judicial or administrative proceeding to enforce the provisions of this Act.
Nothing in this section shall be construed to authorize or permit the
withholding of information from the Congress.
(h) Reports to Congress
(1) On a semiannual basis, the Attorney General shall fully inform the
Permanent Select Committee on Intelligence and the Committee on
Banking, Finance and Urban Affairs of the House of Representatives,
and the Select Committee on Intelligence and the Committee on
Banking, Housing, and Urban Affairs of the Senate concerning all
requests made pursuant to subsections (a), (b), and (c) of this section.
(2) In the case of the semiannual reports required to be submitted under
paragraph (1) to the Permanent Select Committee on Intelligence
of the House of Representatives and the Select Committee on
Intelligence of the Senate, the submittal dates for such reports shall
be as provided in section 415b of Title 50.
(i) Damages. Any agency or department of the United States obtaining or
disclosing any consumer reports, records, or information contained therein
§626 - 15 U.S.C. §1681u
107
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.
108
§627 - 15 U.S.C. §1681v
§627. Disclosures to governmental agencies for
counterterrorism purposes [15 U.S.C. § 1681v]
(a) Disclosure. Notwithstanding section 604 or any other provision of this
title, a consumer reporting agency shall furnish a consumer report of a
consumer and all other information in a consumer’s file to a government
agency authorized to conduct investigations of, or intelligence or counter-
intelligence activities or analysis related to, international terrorism when
presented with a written certification by such government agency that such
infor mation is necessary for the agency’s conduct or such investigation,
activity or analysis and that includes a term that specifically identifies a
consumer or account to be used as the basis for the production of such
information.
(b) Form of certification. The certification described in subsection (a) shall
be signed by a supervisory official designated by the head of a Federal
agency or an officer of a Federal agency whose appointment to office is
required to be made by the President, by and with the advice and consent
of the Senate.
(c) Confidentiality. No consumer reporting agency, or officer, employee, or
agent of such consumer reporting agency, shall disclose to any person, or
specify in any consumer report, that a government agency has sought or
obtained access to information under subsection (a).
(d) Rule of construction. Nothing in section 626 shall be construed to limit
the authority of the Director of the Federal Bureau of Investigation under
this section.
(e) Safe harbor. Notwithstanding any other provision of this title, any
consumer reporting agency or agent or employee thereof making disclo-
sure of consumer reports or other information pursuant to this section in
good-faith reliance upon a certification of a government agency pursuant
to the provisions of this section shall not be liable to any person for such
disclosure under this subchapter, the constitution of any State, or any law
or regulation of any State or any political subdivision of any State.
(f) Reports to Congress
(1) On a semi-annual basis, the Attorney General shall fully inform the
Committee on the Judiciary, the Committee on Financial Services,
and the Permanent Select Committee on Intelligence of the House of
Representatives and the Committee on the Judiciary, the Committee
on Banking, Housing, and Urban Affairs, and the Select Committee
on Intelligence of the Senate concerning all requests made pursuant to
subsection (a) of this section.
§629 - 15 U.S.C. §1681w
109
(2) In the case of the semiannual reports required to be submitted under
paragraph (1) to the Permanent Select Committee on Intelligence
of the House of Representatives and the Select Committee on
Intelligence of the Senate, the submittal dates for such reports shall
be as provided in section 415b of Title 50.
§628. Disposal of records [15 U.S.C. § 1681w]
See also 16 CFR Part 682
69 Fed. Reg. 68690 (11/24/04)
(a) Regulations
(1) In general. The Federal Trade Commission, the Securities and
Exchange Commission, the Commodity Futures Trading Commission,
the Federal banking agencies, and the National Credit Union
Administration, with respect to the entities that are subject to their
respective enforcement authority under section 621, and in coor-
dination as described in paragraph (2), shall issue final regulations
requiring any person that maintains or otherwise possesses consumer
information, or any compilation of consumer information, derived
from consumer reports for a business purpose to properly dispose of
any such information or compilation.
(2) Coordination. Each agency required to prescribe regulations under
paragraph (1) shall –
(A) consult and coordinate with each other such agency so that,
to the extent possible, the regulations prescribed by each such
agency are consistent and comparable with the regulations by
each such other agency; and
(B) ensure that such regulations are consistent with the requirements
and regulations issued pursuant to Public Law 106-102 and
other provisions of Federal law.
(3) Exemption authority. In issuing regulations under this section, the
agencies identified in paragraph (1) may exempt any person or class
of persons from application of those regulations, as such agency
deems appropriate to carry out the purpose of this section.
(b) Rule of construction. Nothing in this section shall be construed –
(1) to require a person to maintain or destroy any record pertaining to a
consumer that is not imposed under other law; or
(2) to alter or affect any requirement imposed under any other provision
of law to maintain or destroy such a record.
110
§629 - 15 U.S.C. §1681x
§629. Corporate and technological circumvention prohibited
[15 U.S.C. § 1681x]
The Bureau shall prescribe regulations, to become effective not later than 90
days after the date of enactment of this section, to prevent a consumer reporting
agency from circumventing or evading treatment as a consumer reporting
agency described in section 603(p) for purposes of this title, including –
(1) by means of a corporate reorganization or restructuring, including a
merger, acquisition, dissolution, divestiture, or asset sale of a
consumer reporting agency; or
(2) by maintaining or merging public record and credit account
information in a manner that is substantially equivalent to that
described in paragraphs (1) and (2) of section 603(p), in the manner
described in section 603(p).
See also 16 CFR Part 611
69 Fed. Reg. 8531 (02/24/04)
69 Fed. Reg. 29061 (05/20/04)
Legislative History
House Report: No. 91-975 (Comm. on Banking and Currency)
Senate Report: No. 91-1139 (Comm. on Banking and Currency)
Conference Report: No. 91-1587
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)
108-159 (December 4, 2003)
109-351 (October 13, 2006)
110-161 (December 27, 2007)
110-241 (June 3, 2008)
111-24 (May 22, 2009)
107-306 (November 27, 2002)
108-177 (Dec. 13, 2003)
108-458 (December 17, 2004)
109-177 (March 9, 2006)
109-178 (March 9, 2006)
111-319 (Janaury 5, 2010)
111-203 (July 21, 2010)
114-94 (December 4, 2015)
114-23 (June 2, 2015)
115-174 (May 24, 2018)
