The Fair Credit
Reporting Act
As a public service, the staff of the Federal Trade Commission (FTC) has
prepared the following complete text of the Fair Credit Reporting Act (FCRA), 15 U.S.C. §
1681 et seq. Although staff generally followed the format of the U.S. Code as
published by the Government Printing Office, the format of this text does differ in minor
ways from the Code (and from West's U.S. Code Annotated). For example, this version uses
FCRA section numbers (§§ 601-625) in the headings. (The relevant U.S. Code citation is
included with each section heading and each reference to the FCRA in the text.)
This version of the FCRA is complete as of July 1999. It includes the
amendments to the FCRA set forth in the Consumer Credit Reporting Reform Act of 1996
(Public Law 104-208, the Omnibus Consolidated Appropriations Act for Fiscal Year 1997,
Title II, Subtitle D, Chapter 1), Section 311 of the Intelligence Authorization for Fiscal
Year 1998 (Public Law 105-107), and the Consumer Reporting Employment Clarification Act of
1998 (Public Law 105-347).
Table of Contents
§ 601 Short title
§ 602 Congressional findings and statement of purpose
§ 603 Definitions; rules of construction
§ 604 Permissible purposes of consumer reports
§ 605 Requirements relating to information contained in
consumer reports
§ 606 Disclosure of investigative consumer reports
§ 607 Compliance procedures
§ 608 Disclosures to governmental agencies
§ 609 Disclosures to consumers
§ 610 Conditions and form of disclosure to consumers
§ 611 Procedure in case of disputed accuracy
§ 612 Charges for certain disclosures
§ 613 Public record information for employment purposes
§ 614 Restrictions on investigative consumer reports
§ 615 Requirements on users of consumer reports
§ 616 Civil liability for willful noncompliance
§ 617 Civil liability for negligent noncompliance
§ 618 Jurisdiction of courts; limitation of actions
§ 619 Obtaining information under false pretenses
§ 620 Unauthorized disclosures by officers or employees
§ 621 Administrative enforcement
§ 622 Information on overdue child support obligations
§ 623 Responsibilities of furnishers of information to
consumer reporting agencies
§ 624 Relation to State laws
§ 625 Disclosures to FBI for counterintelligence purposes
§ 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, credit capacity, character, general reputation,
personal characteristics, or mode of living which is used or expected to be used or
collected in whole or in part for the purpose of serving as a factor in establishing the
consumer's eligibility for
-
(A) credit or insurance to be used primarily for personal, family, or household
purposes;
(B) employment purposes; or
(C) any other purpose authorized under section 604 [§ 1681b].
- (2) Exclusions. The term "consumer report" does not include
-
(A) any
(i) report containing information solely as to transactions or experiences between the
consumer and the person making the report;
(ii) communication of that information among persons related by common ownership or
affiliated by corporate control; or
(iii) communication of other information among persons related by common ownership or
affiliated by corporate control, if it is clearly and conspicuously disclosed to the
consumer that the information may be communicated among such persons and the consumer is
given the opportunity, before the time that the information is initially communicated, to
direct that such information not be communicated among such persons;
(B) any authorization or approval of a specific extension of credit directly or
indirectly by the issuer of a credit card or similar device;
(C) any report in which a person who has been requested by a third party to make a
specific extension of credit directly or indirectly to a consumer conveys his or her
decision with respect to such request, if the third party advises the consumer of the name
and address of the person to whom the request was made, and such person makes the
disclosures to the consumer required under section 615 [§ 1681m]; or
(D) a communication described in subsection (o).
(e) The term "investigative consumer report" means a consumer report or
portion thereof in which information on a consumer's character, general reputation,
personal characteristics, or mode of living is obtained through personal interviews with
neighbors, friends, or associates of the consumer reported on or with others with whom he
is acquainted or who may have knowledge concerning any such items of information. However,
such information shall not include specific factual information on a consumer's credit
record obtained directly from a creditor of the consumer or from a consumer reporting
agency when such information was obtained directly from a creditor of the consumer or from
the consumer.
(f) The term "consumer reporting agency" means any person which, for monetary
fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in
the practice of assembling or evaluating consumer credit information or other information
on consumers for the purpose of furnishing consumer reports to third parties, and which
uses any means or facility of interstate commerce for the purpose of preparing or
furnishing consumer reports.
(g) The term "file," when used in connection with information on any
consumer, means all of the information on that consumer recorded and retained by a
consumer reporting agency regardless of how the information is stored.
(h) The term "employment purposes" when used in connection with a consumer
report means a report used for the purpose of evaluating a consumer for employment,
promotion, reassignment or retention as an employee.
(i) The term "medical information" means information or records obtained,
with the consent of the individual to whom it relates, from licensed physicians or medical
practitioners, hospitals, clinics, or other medical or medically related facilities.
(j) Definitions relating to child support obligations.
- (1) Overdue support. The term "overdue support" has the meaning given to such
term in section 666(e) of title 42 [Social Security Act, 42 U.S.C. § 666(e)].
-
- (2) State or local child support enforcement agency. The term "State or local child
support enforcement agency" means a State or local agency which administers a State
or local program for establishing and enforcing child support obligations.
(k) Adverse action.
- (1) Actions included. The term "adverse action"
-
(A) has the same meaning as in section 701(d)(6) of the Equal Credit Opportunity Act;
and
(B) means
(i) a denial or cancellation of, an increase in any charge for, or a reduction or other
adverse or unfavorable change in the terms of coverage or amount of, any insurance,
existing or applied for, in connection with the underwriting of insurance;
(ii) a denial of employment or any other decision for employment purposes that
adversely affects any current or prospective employee;
(iii) a denial or cancellation of, an increase in any charge for, or any other adverse
or unfavorable change in the terms of, any license or benefit described in section
604(a)(3)(D) [§ 1681b]; and
(iv) an action taken or determination that is
- (I) made in connection with an application that was made by, or a transaction that was
initiated by, any consumer, or in connection with a review of an account under section
604(a)(3)(F)(ii)[§ 1681b]; and
(II) adverse to the interests of the consumer.
- (2) Applicable findings, decisions, commentary, and orders. For purposes of any
determination of whether an action is an adverse action under paragraph (1)(A), all
appropriate final findings, decisions, commentary, and orders issued under section
701(d)(6) of the Equal Credit Opportunity Act by the Board of Governors of the Federal
Reserve System or any court shall apply.
(l) Firm offer of credit or insurance. The term "firm offer of credit or
insurance" means any offer of credit or insurance to a consumer that will be honored
if the consumer is determined, based on information in a consumer report on the consumer,
to meet the specific criteria used to select the consumer for the offer, except that the
offer may be further conditioned on one or more of the following:
- (1) The consumer being determined, based on information in the consumer's application
for the credit or insurance, to meet specific criteria bearing on credit worthiness or
insurability, as applicable, that are established
-
(A) before selection of the consumer for the offer; and
(B) for the purpose of determining whether to extend credit or insurance pursuant to
the offer.
- (2) Verification
-
(A) that the consumer continues to meet the specific criteria used to select the
consumer for the offer, by using information in a consumer report on the consumer,
information in the consumer's application for the credit or insurance, or other
information bearing on the credit worthiness or insurability of the consumer; or
(B) of the information in the consumer's application for the credit or insurance, to
determine that the consumer meets the specific criteria bearing on credit worthiness or
insurability.
- (3) The consumer furnishing any collateral that is a requirement for the extension of
the credit or insurance that was
-
(A) established before selection of the consumer for the offer of credit or insurance;
and
(B) disclosed to the consumer in the offer of credit or insurance.
(m) Credit or insurance transaction that is not initiated by the consumer. The term
"credit or insurance transaction that is not initiated by the consumer" does not
include the use of a consumer report by a person with which the consumer has an account or
insurance policy, for purposes of
- (1) reviewing the account or insurance policy; or
-
- (2) collecting the account.
(n) State. The term "State" means any State, the Commonwealth of Puerto Rico,
the District of Columbia, and any territory or possession of the United States.
(o) Excluded communications. A communication is described in this subsection if it is a
communication
- (1) that, but for subsection (d)(2)(D), would be an investigative consumer report;
-
- (2) that is made to a prospective employer for the purpose of
-
- (A) procuring an employee for the employer; or
-
- (B) procuring an opportunity for a natural person to work for the employer;
-
- (3) that is made by a person who regularly performs such procurement;
-
- (4) that is not used by any person for any purpose other than a purpose described in
subparagraph (A) or (B) of paragraph (2); and
-
- (5) with respect to which
-
- (A) the consumer who is the subject of the communication
-
- (i) consents orally or in writing to the nature and scope of the communication, before
the collection of any information for the purpose of making the communication;
-
- (ii) consents orally or in writing to the making of the communication to a prospective
employer, before the making of the communication; and
-
- (iii) in the case of consent under clause (i) or (ii) given orally, is provided written
confirmation of that consent by the person making the communication, not later than 3
business days after the receipt of the consent by that person;
-
- (B) the person who makes the communication does not, for the purpose of making the
communication, make any inquiry that if made by a prospective employer of the consumer who
is the subject of the communication would violate any applicable Federal or State equal
employment opportunity law or regulation; and
-
- (C) the person who makes the communication
-
(i) discloses in writing to the consumer who is the subject of the communication, not
later than 5 business days after receiving any request from the consumer for such
disclosure, the nature and substance of all information in the consumer's file at the time
of the request, except that the sources of any information that is acquired solely for use
in making the communication and is actually used for no other purpose, need not be
disclosed other than under appropriate discovery procedures in any court of competent
jurisdiction in which an action is brought; and
(ii) notifies the consumer who is the subject of the communication, in writing, of the
consumer's right to request the information described in clause (i).
(p) Consumer reporting agency that compiles and maintains files on consumers on a
nationwide basis. The term "consumer reporting agency that compiles and maintains
files on consumers on a nationwide basis" means a consumer reporting agency that
regularly engages in the practice of assembling or evaluating, and maintaining, for the
purpose of furnishing consumer reports to third parties bearing on a consumer's credit
worthiness, credit standing, or credit capacity, each of the following regarding consumers
residing nationwide:
- (1) Public record information.
-
- (2) Credit account information from persons who furnish that information regularly and
in the ordinary course of business.
§ 604. Permissible purposes of consumer reports [15
U.S.C. § 1681b]
(a) In general. Subject to subsection (c), any consumer reporting agency may furnish a
consumer report under the following circumstances and no other:
- (1) In response to the order of a court having jurisdiction to issue such an order, or a
subpoena issued in connection with proceedings before a Federal grand jury.
-
- (2) In accordance with the written instructions of the consumer to whom it relates.
-
- (3) To a person which it has reason to believe
-
- (A) intends to use the information in connection with a credit transaction involving the
consumer on whom the information is to be furnished and involving the extension of credit
to, or review or collection of an account of, the consumer; or
-
- (B) intends to use the information for employment purposes; or
-
- (C) intends to use the information in connection with the underwriting of insurance
involving the consumer; or
-
- (D) intends to use the information in connection with a determination of the consumer's
eligibility for a license or other benefit granted by a governmental instrumentality
required by law to consider an applicant's financial responsibility or status; or
-
- (E) intends to use the information, as a potential investor or servicer, or current
insurer, in connection with a valuation of, or an assessment of the credit or prepayment
risks associated with, an existing credit obligation; or
-
- (F) otherwise has a legitimate business need for the information
-
- (i) in connection with a business transaction that is initiated by the consumer; or
-
- (ii) to review an account to determine whether the consumer continues to meet the terms
of the account.
-
- (4) In response to a request by the head of a State or local child support enforcement
agency (or a State or local government official authorized by the head of such an agency),
if the person making the request certifies to the consumer reporting agency that
-
- (A) the consumer report is needed for the purpose of establishing an individual's
capacity to make child support payments or determining the appropriate level of such
payments;
-
- (B) the paternity of the consumer for the child to which the obligation relates has been
established or acknowledged by the consumer in accordance with State laws under which the
obligation arises (if required by those laws);
-
- (C) the person has provided at least 10 days' prior notice to the consumer whose report
is requested, by certified or registered mail to the last known address of the consumer,
that the report will be requested; and
-
- (D) the consumer report will be kept confidential, will be used solely for a purpose
described in subparagraph (A), and will not be used in connection with any other civil,
administrative, or criminal proceeding, or for any other purpose.
-
- (5) To an agency administering a State plan under Section 454 of the Social Security Act
(42 U.S.C. § 654) for use to set an initial or modified child support award.
(b) Conditions for furnishing and using consumer reports for employment purposes.
- (1) Certification from user. A consumer reporting agency may furnish a consumer report
for employment purposes only if
-
- (A) the person who obtains such report from the agency certifies to the agency that
-
(i) the person has complied with paragraph (2) with respect to the consumer report, and
the person will comply with paragraph (3) with respect to the consumer report if paragraph
(3) becomes applicable; and
(ii) information from the consumer report will not be used in violation of any
applicable Federal or State equal employment opportunity law or regulation; and
- (B) the consumer reporting agency provides with the report, or has previously provided,
a summary of the consumer's rights under this title, as prescribed by the Federal Trade
Commission under section 609(c)(3) [§ 1681g].
-
- (2) Disclosure to consumer.
-
- (A) In general. Except as provided in subparagraph (B), a person may not procure a
consumer report, or cause a consumer report to be procured, for employment purposes with
respect to any consumer, unless--
-
- (i) a clear and conspicuous disclosure has been made in writing to the consumer at any
time before the report is procured or caused to be procured, in a document that consists
solely of the disclosure, that a consumer report may be obtained for employment purposes;
and
-
- (ii) the consumer has authorized in writing (which authorization may be made on the
document referred to in clause (i)) the procurement of the report by that person.
-
- (B) Application by mail, telephone, computer, or other similar means. If a consumer
described in subparagraph (C) applies for employment by mail, telephone, computer, or
other similar means, at any time before a consumer report is procured or caused to be
procured in connection with that application--
-
- (i) the person who procures the consumer report on the consumer for employment purposes
shall provide to the consumer, by oral, written, or electronic means, notice that a
consumer report may be obtained for employment purposes, and a summary of the consumer's
rights under section 615(a)(3); and
-
- (ii) the consumer shall have consented, orally, in writing, or electronically to the
procurement of the report by that person.
-
- (C) Scope. Subparagraph (B) shall apply to a person procuring a consumer report on a
consumer in connection with the consumer's application for employment only if--
-
- (i) the consumer is applying for a position over which the Secretary of Transportation
has the power to establish qualifications and maximum hours of service pursuant to the
provisions of section 31502 of title 49, or a position subject to safety regulation by a
State transportation agency; and
-
- (ii) as of the time at which the person procures the report or causes the report to be
procured the only interaction between the consumer and the person in connection with that
employment application has been by mail, telephone, computer, or other similar means.
-
- (3) Conditions on use for adverse actions.
-
- (A) In general. Except as provided in subparagraph (B), in using a consumer report for
employment purposes, before taking any adverse action based in whole or in part on the
report, the person intending to take such adverse action shall provide to the consumer to
whom the report relates--
-
- (i) a copy of the report; and
-
- (ii) a description in writing of the rights of the consumer under this title, as
prescribed by the Federal Trade Commission under section 609(c)(3).
-
- (B) Application by mail, telephone, computer, or other similar means.
-
(i) If a consumer described in subparagraph (C) applies for employment by mail,
telephone, computer, or other similar means, and if a person who has procured a consumer
report on the consumer for employment purposes takes adverse action on the employment
application based in whole or in part on the report, then the person must provide to the
consumer to whom the report relates, in lieu of the notices required under subparagraph
(A) of this section and under section 615(a), within 3 business days of taking such
action, an oral, written or electronic notification--
(I) that adverse action has been taken based in whole or in part on a consumer report
received from a consumer reporting agency;
(II) of the name, address and telephone number of the consumer reporting agency that
furnished the consumer report (including a toll-free telephone number established by the
agency if the agency compiles and maintains files on consumers on a nationwide basis);
(III) that the consumer reporting agency did not make the decision to take the adverse
action and is unable to provide to the consumer the specific reasons why the adverse
action was taken; and
(IV) that the consumer may, upon providing proper identification, request a free copy
of a report and may dispute with the consumer reporting agency the accuracy or
completeness of any information in a report.
- (ii) If, under clause (B)(i)(IV), the consumer requests a copy of a consumer report from
the person who procured the report, then, within 3 business days of receiving the
consumer's request, together with proper identification, the person must send or provide
to the consumer a copy of a report and a copy of the consumer's rights as prescribed by
the Federal Trade Commission under section 609(c)(3).
- (C) Scope. Subparagraph (B) shall apply to a person procuring a consumer report on a
consumer in connection with the consumer's application for employment only if--
-
- (i) the consumer is applying for a position over which the Secretary of Transportation
has the power to establish qualifications and maximum hours of service pursuant to the
provisions of section 31502 of title 49, or a position subject to safety regulation by a
State transportation agency; and
-
- (ii) as of the time at which the person procures the report or causes the report to be
procured the only interaction between the consumer and the person in connection with that
employment application has been by mail, telephone, computer, or other similar means.
-
- (4) Exception for national security investigations.
-
- (A) In general. In the case of an agency or department of the United States Government
which seeks to obtain and use a consumer report for employment purposes, paragraph (3)
shall not apply to any adverse action by such agency or department which is based in part
on such consumer report, if the head of such agency or department makes a written finding
that--
-
- (i) the consumer report is relevant to a national security investigation of such agency
or department;
-
- (ii) the investigation is within the jurisdiction of such agency or department;
-
- (iii) there is reason to believe that compliance with paragraph (3) will--
-
- (I) endanger the life or physical safety of any person;
-
- (II) result in flight from prosecution;
-
- (III) result in the destruction of, or tampering with, evidence relevant to the
investigation;
-
- (IV) result in the intimidation of a potential witness relevant to the investigation;
-
- (V) result in the compromise of classified information; or
-
- (VI) otherwise seriously jeopardize or unduly delay the investigation or another
official proceeding.
-
- (B) Notification of consumer upon conclusion of investigation. Upon the conclusion of a
national security investigation described in subparagraph (A), or upon the determination
that the exception under subparagraph (A) is no longer required for the reasons set forth
in such subparagraph, the official exercising the authority in such subparagraph shall
provide to the consumer who is the subject of the consumer report with regard to which
such finding was made--
-
- (i) a copy of such consumer report with any classified information redacted as
necessary;
-
- (ii) notice of any adverse action which is based, in part, on the consumer report; and
-
- (iii) the identification with reasonable specificity of the nature of the investigation
for which the consumer report was sought.
-
- (C) Delegation by head of agency or department. For purposes of subparagraphs (A) and
(B), the head of any agency or department of the United States Government may delegate his
or her authorities under this paragraph to an official of such agency or department who
has personnel security responsibilities and is a member of the Senior Executive Service or
equivalent civilian or military rank.
-
- (D) Report to the congress. Not later than January 31 of each year, the head of each
agency and department of the United States Government that exercised authority under this
paragraph during the preceding year shall submit a report to the Congress on the number of
times the department or agency exercised such authority during the year.
-
- (E) Definitions. For purposes of this paragraph, the following definitions shall apply:
-
- (i) Classified information. The term `classified information' means information that is
protected from unauthorized disclosure under Executive Order No. 12958 or successor
orders.
-
- (ii) National security investigation. The term 'national
security investigation' means any official inquiry by an
agency or department of the United States Government to
determine the eligibility of a consumer to receive access or
continued access to classified information or to determine
whether classified information has been lost or compromised.
(c) Furnishing reports in connection with credit or insurance transactions that are not
initiated by the consumer.
- (1) In general. A consumer reporting agency may furnish a consumer report relating to
any consumer pursuant to subparagraph (A) or (C) of subsection (a)(3) in connection with
any credit or insurance transaction that is not initiated by the consumer only if
-
- (A) the consumer authorizes the agency to provide such report to such person; or
-
- (B) (i) the transaction consists of a firm offer of credit or insurance;
-
- (ii) the consumer reporting agency has complied with subsection (e); and
-
- (iii) there is not in effect an election by the consumer, made in accordance with
subsection (e), to have the consumer's name and address excluded from lists of names
provided by the agency pursuant to this paragraph.
-
- (2) Limits on information received under paragraph (1)(B). A person may receive pursuant
to paragraph (1)(B) only
-
- (A) the name and address of a consumer;
-
- (B) an identifier that is not unique to the consumer and that is used by the person
solely for the purpose of verifying the identity of the consumer; and
-
- (C) other information pertaining to a consumer that does not identify the relationship
or experience of the consumer with respect to a particular creditor or other entity.
-
- (3) Information regarding inquiries. Except as provided in section 609(a)(5)
[§ 1681g], a consumer reporting agency shall not furnish to any person a record of
inquiries in connection with a credit or insurance transaction that is not initiated by a
consumer.
(d) Reserved.
(e) Election of consumer to be excluded from lists.
- (1) In general. A consumer may elect to have the consumer's name and address excluded
from any list provided by a consumer reporting agency under subsection (c)(1)(B) in
connection with a credit or insurance transaction that is not initiated by the consumer,
by notifying the agency in accordance with paragraph (2) that the consumer does not
consent to any use of a consumer report relating to the consumer in connection with any
credit or insurance transaction that is not initiated by the consumer.
-
- (2) Manner of notification. A consumer shall notify a consumer reporting agency under
paragraph (1)
-
- (A) through the notification system maintained by the agency under paragraph (5); or
-
- (B) by submitting to the agency a signed notice of election form issued by the agency
for purposes of this subparagraph.
-
- (3) Response of agency after notification through system. Upon receipt of notification
of the election of a consumer under paragraph (1) through the notification system
maintained by the agency under paragraph (5), a consumer reporting agency shall
-
- (A) inform the consumer that the election is effective only for the 2-year period
following the election if the consumer does not submit to the agency a signed notice of
election form issued by the agency for purposes of paragraph (2)(B); and
-
- (B) provide to the consumer a notice of election form, if requested by the consumer, not
later than 5 business days after receipt of the notification of the election through the
system established under paragraph (5), in the case of a request made at the time the
consumer provides notification through the system.
-
- (4) Effectiveness of election. An election of a consumer under paragraph (1)
-
- (A) shall be effective with respect to a consumer reporting agency beginning 5 business
days after the date on which the consumer notifies the agency in accordance with paragraph
(2);
-
- (B) shall be effective with respect to a consumer reporting agency
-
- (i) subject to subparagraph (C), during the 2-year period beginning 5 business days
after the date on which the consumer notifies the agency of the election, in the case of
an election for which a consumer notifies the agency only in accordance with paragraph
(2)(A); or
-
- (ii) until the consumer notifies the agency under subparagraph (C), in the case of an
election for which a consumer notifies the agency in accordance with paragraph (2)(B);
-
- (C) shall not be effective after the date on which the consumer notifies the agency,
through the notification system established by the agency under paragraph (5), that the
election is no longer effective; and
-
- (D) shall be effective with respect to each affiliate of the agency.
-
- (5) Notification system.
-
- (A) In general. Each consumer reporting agency that, under subsection (c)(1)(B),
furnishes a consumer report in connection with a credit or insurance transaction that is
not initiated by a consumer, shall
-
- (i) establish and maintain a notification system, including a toll-free telephone
number, which permits any consumer whose consumer report is maintained by the agency to
notify the agency, with appropriate identification, of the consumer's election to have the
consumer's name and address excluded from any such list of names and addresses provided by
the agency for such a transaction; and
-
- (ii) publish by not later than 365 days after the date of enactment of the Consumer
Credit Reporting Reform Act of 1996, and not less than annually thereafter, in a
publication of general circulation in the area served by the agency
-
- (I) a notification that information in consumer files maintained by the agency may be
used in connection with such transactions; and
-
- (II) the address and toll-free telephone number for consumers to use to notify the
agency of the consumer's election under clause (I).
-
- (B) Establishment and maintenance as compliance. Establishment and maintenance of a
notification system (including a toll-free telephone number) and publication by a consumer
reporting agency on the agency's own behalf and on behalf of any of its affiliates in
accordance with this paragraph is deemed to be compliance with this paragraph by each of
those affiliates.
-
- (6) Notification system by agencies that operate nationwide. Each consumer reporting
agency that compiles and maintains files on consumers on a nationwide basis shall
establish and maintain a notification system for purposes of paragraph (5) jointly with
other such consumer reporting agencies.
(f) Certain use or obtaining of information prohibited. A person shall not use or
obtain a consumer report for any purpose unless
- (1) the consumer report is obtained for a purpose for which the consumer report is
authorized to be furnished under this section; and
-
- (2) the purpose is certified in accordance with section 607 [§ 1681e] by a
prospective user of the report through a general or specific certification.
(g) Furnishing reports containing medical information. A consumer reporting agency
shall not furnish for employment purposes, or in connection with a credit or insurance
transaction, a consumer report that contains medical information about a consumer, unless
the consumer consents to the furnishing of the report.
§ 605. Requirements relating to information contained in
consumer reports [15 U.S.C. § 1681c]
(a) Information excluded from consumer reports. Except as authorized under subsection
(b) of this section, no consumer reporting agency may make any consumer report containing
any of the following items of information:
- (1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the
date of entry of the order for relief or the date of adjudication, as the case may be,
antedate the report by more than 10 years.
-
- (2) Civil suits, civil judgments, and records of arrest that from date of entry,
antedate the report by more than seven years or until the governing statute of limitations
has expired, whichever is the longer period.
-
- (3) Paid tax liens which, from date of payment, antedate the report by more than seven
years.
-
- (4) Accounts placed for collection or charged to profit and loss which antedate the
report by more than seven years.(1)
-
- (5) Any other adverse item of information, other than records of convictions of crimes
which antedates the report by more than seven years.1
(b) Exempted cases. The provisions of subsection (a) of this section are not applicable
in the case of any consumer credit report to be used in connection with
- (1) a credit transaction involving, or which may reasonably be expected to involve, a
principal amount of $150,000 or more;
-
- (2) the underwriting of life insurance involving, or which may reasonably be expected to
involve, a face amount of $150,000 or more; or
-
- (3) the employment of any individual at an annual salary which equals, or which may
reasonably be expected to equal $75,000, or more.
(c) Running of reporting period.
- (1) In general. The 7-year period referred to in paragraphs (4) and (6)
** of subsection
(a) shall begin, with respect to any delinquent account that is placed for collection
(internally or by referral to a third party, whichever is earlier), charged to profit and
loss, or subjected to any similar action, upon the expiration of the 180-day period
beginning on the date of the commencement of the delinquency which immediately preceded
the collection activity, charge to profit and loss, or similar action.
-
- (2) Effective date. Paragraph (1) shall apply only to items of information added to the
file of a consumer on or after the date that is 455 days after the date of enactment of
the Consumer Credit Reporting Reform Act of 1996.
(d) Information required to be disclosed. Any consumer reporting agency that furnishes
a consumer report that contains information regarding any case involving the consumer that
arises under title 11, United States Code, shall include in the report an identification
of the chapter of such title 11 under which such case arises if provided by the source of
the information. If any case arising or filed under title 11, United States Code, is
withdrawn by the consumer before a final judgment, the consumer reporting agency shall
include in the report that such case or filing was withdrawn upon receipt of documentation
certifying such withdrawal.
(e) Indication of closure of account by consumer. If a consumer reporting agency is
notified pursuant to section 623(a)(4) [§ 1681s-2] that a credit account of a
consumer was voluntarily closed by the consumer, the agency shall indicate that fact in
any consumer report that includes information related to the account.
(f) Indication of dispute by consumer. If a consumer reporting agency is notified
pursuant to section 623(a)(3) [§ 1681s-2] that information regarding a consumer who
was furnished to the agency is disputed by the consumer, the agency shall indicate that
fact in each consumer report that includes the disputed information.
§ 606. Disclosure of investigative consumer reports
[15 U.S.C. § 1681d]
(a) Disclosure of fact of preparation. A person may not procure or cause to be prepared
an investigative consumer report on any consumer unless
- (1) it is clearly and accurately disclosed to the consumer that an investigative
consumer report including information as to his character, general reputation, personal
characteristics and mode of living, whichever are applicable, may be made, and such
disclosure
-
- (A) is made in a writing mailed, or otherwise delivered, to the consumer, not later than
three days after the date on which the report was first requested, and
-
- (B) includes a statement informing the consumer of his right to request the additional
disclosures provided for under subsection (b) of this section and the written summary of
the rights of the consumer prepared pursuant to section 609(c) [§ 1681g]; and
-
- (2) the person certifies or has certified to the consumer reporting agency that
-
- (A) the person has made the disclosures to the consumer required by paragraph (1); and
-
- (B) the person will comply with subsection (b).
(b) Disclosure on request of nature and scope of investigation. Any person who procures
or causes to be prepared an investigative consumer report on any consumer shall, upon
written request made by the consumer within a reasonable period of time after the receipt
by him of the disclosure required by subsection (a)(1) of this section, make a complete
and accurate disclosure of the nature and scope of the investigation requested. This
disclosure shall be made in a writing mailed, or otherwise delivered, to the consumer not
later than five days after the date on which the request for such disclosure was received
from the consumer or such report was first requested, whichever is the later.
(c) Limitation on liability upon showing of reasonable procedures for compliance with
provisions. No person may be held liable for any violation of subsection (a) or (b) of
this section if he shows by a preponderance of the evidence that at the time of the
violation he maintained reasonable procedures to assure compliance with subsection (a) or
(b) of this section.
(d) Prohibitions.
- (1) Certification. A consumer reporting agency shall not prepare or furnish
investigative consumer report unless the agency has received a certification under
subsection (a)(2) from the person who requested the report.
-
- (2) Inquiries. A consumer reporting agency shall not make an inquiry for the purpose of
preparing an investigative consumer report on a consumer for employment purposes if the
making of the inquiry by an employer or prospective employer of the consumer would violate
any applicable Federal or State equal employment opportunity law or regulation.
-
- (3) Certain public record information. Except as otherwise provided in section 613
[§ 1681k], a consumer reporting agency shall not furnish an investigative consumer
report that includes information that is a matter of public record and that relates to an
arrest, indictment, conviction, civil judicial action, tax lien, or outstanding judgment,
unless the agency has verified the accuracy of the information during the 30-day period
ending on the date on which the report is furnished.
-
- (4) Certain adverse information. A consumer reporting agency shall not prepare or
furnish an investigative consumer report on a consumer that contains information that is
adverse to the interest of the consumer and that is obtained through a personal interview
with a neighbor, friend, or associate of the consumer or with another person with whom the
consumer is acquainted or who has knowledge of such item of information, unless
-
- (A) the agency has followed reasonable procedures to obtain confirmation of the
information, from an additional source that has independent and direct knowledge of the
information; or
-
- (B) the person interviewed is the best possible source of the information.
§ 607. Compliance procedures [15 U.S.C.
§ 1681e]
(a) Identity and purposes of credit users. Every consumer reporting agency shall
maintain reasonable procedures designed to avoid violations of section 605 [§ 1681c]
and to limit the furnishing of consumer reports to the purposes listed under section 604
[§ 1681b] of this title. These procedures shall require that prospective users of
the information identify themselves, certify the purposes for which the information is
sought, and certify that the information will be used for no other purpose. Every consumer
reporting agency shall make a reasonable effort to verify the identity of a new
prospective user and the uses certified by such prospective user prior to furnishing such
user a consumer report. No consumer reporting agency may furnish a consumer report to any
person if it has reasonable grounds for believing that the consumer report will not be
used for a purpose listed in section 604 [§ 1681b] of this title.
(b) Accuracy of report. Whenever a consumer reporting agency prepares a consumer report
it shall follow reasonable procedures to assure maximum possible accuracy of the
information concerning the individual about whom the report relates.
(c) Disclosure of consumer reports by users allowed. A consumer reporting agency may
not prohibit a user of a consumer report furnished by the agency on a consumer from
disclosing the contents of the report to the consumer, if adverse action against the
consumer has been taken by the user based in whole or in part on the report.
(d) Notice to users and furnishers of information.
- (1) Notice requirement. A consumer reporting agency shall provide to any person
-
- (A) who regularly and in the ordinary course of business furnishes information to the
agency with respect to any consumer; or
-
- (B) to whom a consumer report is provided by the agency;
-
- a notice of such person's responsibilities under this title.
-
- (2) Content of notice. The Federal Trade Commission shall prescribe the content of
notices under paragraph (1), and a consumer reporting agency shall be in compliance with
this subsection if it provides a notice under paragraph (1) that is substantially similar
to the Federal Trade Commission prescription under this paragraph.
(e) Procurement of consumer report for resale.
- (1) Disclosure. A person may not procure a consumer report for purposes of reselling the
report (or any information in the report) unless the person discloses to the consumer
reporting agency that originally furnishes the report
-
- (A) the identity of the end-user of the report (or information); and
-
- (B) each permissible purpose under section 604 [§ 1681b] for which the report is
furnished to the end-user of the report (or information).
-
- (2) Responsibilities of procurers for resale. A person who procures a consumer report
for purposes of reselling the report (or any information in the report) shall
-
- (A) establish and comply with reasonable procedures designed to ensure that the report
(or information) is resold by the person only for a purpose for which the report may be
furnished under section 604 [§ 1681b], including by requiring that each person to
which the report (or information) is resold and that resells or provides the report (or
information) to any other person
-
- (i) identifies each end user of the resold report (or information);
-
- (ii) certifies each purpose for which the report (or information) will be used; and
-
- (iii) certifies that the report (or information) will be used for no other purpose; and
-
- (B) before reselling the report, make reasonable efforts to verify the identifications
and certifications made under subparagraph (A).
(3) Resale of consumer report to a federal agency or department.
Notwithstanding paragraph (1) or (2), a person who procures a consumer
report for purposes of reselling the report (or any information in
the report) shall not disclose the identity of the end-user of the
report under paragraph (1) or (2) if --
- (A) the end user is an agency or department of the United States
Government which procures the report from the person for purposes of
determining the eligibility of the consumer concerned to receive
access or continued access to classified information (as defined in
section 604(b)(4)(E)(i)); and
-
- (B) the agency or department certifies in writing to the person
reselling the report that nondisclosure is necessary to protect
classified information or the safety of persons employed by or
contracting with, or undergoing investigation for work or
contracting with the agency or department.
§ 608. Disclosures to governmental agencies [15
U.S.C. § 1681f]
Notwithstanding the provisions of section 604 [§ 1681b] of this title, a consumer
reporting agency may furnish identifying information respecting any consumer, limited to
his name, address, former addresses, places of employment, or former places of employment,
to a governmental agency.
§ 609. Disclosures to consumers [15 U.S.C.
§ 1681g]
(a) Information on file; sources; report recipients. Every consumer reporting agency
shall, upon request, and subject to 610(a)(1) [§ 1681h], clearly and accurately
disclose to the consumer:
- (1) All information in the consumer's file at the time of the request, except that
nothing in this paragraph shall be construed to require a consumer reporting agency to
disclose to a consumer any information concerning credit scores or any other risk scores
or predictors relating to the consumer.
-
- (2) The sources of the information; except that the sources of information acquired
solely for use in preparing an investigative consumer report and actually used for no
other purpose need not be disclosed: Provided, That in the event an action is brought
under this title, such sources shall be available to the plaintiff under appropriate
discovery procedures in the court in which the action is brought.
-
- (3) (A) Identification of each person (including each end-user identified under section
607(e)(1) [§ 1681e]) that procured a consumer report
-
(i) for employment purposes, during the 2-year period preceding the date on which the
request is made; or
(ii) for any other purpose, during the 1-year period preceding the date on which the
request is made.
- (B) An identification of a person under subparagraph (A) shall include
-
- (i) the name of the person or, if applicable, the trade name (written in full) under
which such person conducts business; and
-
- (ii) upon request of the consumer, the address and telephone number of the person.
-
- (C) Subparagraph (A) does not apply if--
-
- (i) the end user is an agency or department of the United States Government that
procures the report from the person for purposes of determining the eligibility of the
consumer to whom the report relates to receive access or continued access to classified
information (as defined in section 604(b)(4)(E)(i)); and
-
- (ii) the head of the agency or department makes a written finding as prescribed under
section 604(b)(4)(A).
- (4) The dates, original payees, and amounts of any checks upon which is based any
adverse characterization of the consumer, included in the file at the time of the
disclosure.
-
- (5) A record of all inquiries received by the agency during the 1-year period preceding
the request that identified the consumer in connection with a credit or insurance
transaction that was not initiated by the consumer.
(b) Exempt information. The requirements of subsection (a) of this section respecting
the disclosure of sources of information and the recipients of consumer reports do not
apply to information received or consumer reports furnished prior to the effective date of
this title except to the extent that the matter involved is contained in the files of the
consumer reporting agency on that date.
(c) Summary of rights required to be included with disclosure.
- (1) Summary of rights. A consumer reporting agency shall provide to a consumer, with
each written disclosure by the agency to the consumer under this section
-
- (A) a written summary of all of the rights that the consumer has under this title; and
-
- (B) in the case of a consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis, a toll-free telephone number established by the agency,
at which personnel are accessible to consumers during normal business hours.
-
- (2) Specific items required to be included. The summary of rights required under
paragraph (1) shall include
-
- (A) a brief description of this title and all rights of consumers under this title;
-
- (B) an explanation of how the consumer may exercise the rights of the consumer under
this title;
-
- (C) a list of all Federal agencies responsible for enforcing any provision of this title
and the address and any appropriate phone number of each such agency, in a form that will
assist the consumer in selecting the appropriate agency;
-
- (D) a statement that the consumer may have additional rights under State law and that
the consumer may wish to contact a State or local consumer protection agency or a State
attorney general to learn of those rights; and
-
- (E) a statement that a consumer reporting agency is not required to remove accurate
derogatory information from a consumer's file, unless the information is outdated under
section 605 [§ 1681c] or cannot be verified.
-
- (3) Form of summary of rights. For purposes of this subsection and any disclosure by a
consumer reporting agency required under this title with respect to consumers' rights, the
Federal Trade Commission (after consultation with each Federal agency referred to in
section 621(b) [§ 1681s]) shall prescribe the form and content of any such
disclosure of the rights of consumers required under this title. A consumer reporting
agency shall be in compliance with this subsection if it provides disclosures under
paragraph (1) that are substantially similar to the Federal Trade Commission prescription
under this paragraph.
-
- (4) Effectiveness. No disclosures shall be required under this subsection until the date
on which the Federal Trade Commission prescribes the form and content of such disclosures
under paragraph (3).
§ 610. Conditions and form of disclosure to consumers
[15 U.S.C. § 1681h]
(a) In general.
- (1) Proper identification. A consumer reporting agency shall require, as a condition of
making the disclosures required under section 609 [§ 1681g], that the consumer
furnish proper identification.
-
- (2) Disclosure in writing. Except as provided in subsection (b), the disclosures
required to be made under section 609 [§ 1681g] shall be provided under that section
in writing.
(b) Other forms of disclosure.
- (1) In general. If authorized by a consumer, a consumer reporting agency may make the
disclosures required under 609 [§ 1681g]
-
- (A) other than in writing; and
-
- (B) in such form as may be
-
- (i) specified by the consumer in accordance with paragraph (2); and
-
- (ii) available from the agency.
-
- (2) Form. A consumer may specify pursuant to paragraph (1) that disclosures under
section 609 [§ 1681g] shall be made
-
- (A) in person, upon the appearance of the consumer at the place of business of the
consumer reporting agency where disclosures are regularly provided, during normal business
hours, and on reasonable notice;
-
- (B) by telephone, if the consumer has made a written request for disclosure by
telephone;
-
- (C) by electronic means, if available from the agency; or
-
- (D) by any other reasonable means that is available from the agency.
(c) Trained personnel. Any consumer reporting agency shall provide trained personnel to
explain to the consumer any information furnished to him pursuant to section 609
[§ 1681g] of this title.
(d) Persons accompanying consumer. The consumer shall be permitted to be accompanied by
one other person of his choosing, who shall furnish reasonable identification. A consumer
reporting agency may require the consumer to furnish a written statement granting
permission to the consumer reporting agency to discuss the consumer's file in such
person's presence.
(e) Limitation of liability. Except as provided in sections 616 and 617
[§§ 1681n and 1681o] of this title, no consumer may bring any action or proceeding
in the nature of defamation, invasion of privacy, or negligence with respect to the
reporting of information against any consumer reporting agency, any user of information,
or any person who furnishes information to a consumer reporting agency, based on
information disclosed pursuant to section 609, 610, or 615 [§§ 1681g, 1681h, or
1681m] of this title or based on information disclosed by a user of a consumer report to
or for a consumer against whom the user has taken adverse action, based in whole or in
part on the report, except as to false information furnished with malice or willful intent
to injure such consumer.
§ 611. Procedure in case of disputed accuracy [15
U.S.C. § 1681i]
(a) Reinvestigations of disputed information.
- (1) Reinvestigation required.
-
- (A) In general. If the completeness or accuracy of any item of information contained in
a consumer's file at a consumer reporting agency is disputed by the consumer and the
consumer notifies the agency directly of such dispute, the agency shall reinvestigate free
of charge and record the current status of the disputed information, or delete the item
from the file in accordance with paragraph (5), before the end of the 30-day period
beginning on the date on which the agency receives the notice of the dispute from the
consumer.
-
- (B) Extension of period to reinvestigate. Except as provided in subparagraph (C), the
30-day period described in subparagraph (A) may be extended for not more than 15
additional days if the consumer reporting agency receives information from the consumer
during that 30-day period that is relevant to the reinvestigation.
-
- (C) Limitations on extension of period to reinvestigate. Subparagraph (B) shall not
apply to any reinvestigation in which, during the 30-day period described in subparagraph
(A), the information that is the subject of the reinvestigation is found to be inaccurate
or incomplete or the consumer reporting agency determines that the information cannot be
verified.
-
- (2) Prompt notice of dispute to furnisher of information.
-
- (A) In general. Before the expiration of the 5-business-day period beginning on the date
on which a consumer reporting agency receives notice of a dispute from any consumer in
accordance with paragraph (1), the agency shall provide notification of the dispute to any
person who provided any item of information in dispute, at the address and in the manner
established with the person. The notice shall include all relevant information regarding
the dispute that the agency has received from the consumer.
-
- (B) Provision of other information from consumer. The consumer reporting agency shall
promptly provide to the person who provided the information in dispute all relevant
information regarding the dispute that is received by the agency from the consumer after
the period referred to in subparagraph (A) and before the end of the period referred to in
paragraph (1)(A).
-
- (3) Determination that dispute is frivolous or irrelevant.
-
(A) In general. Notwithstanding paragraph (1), a consumer reporting agency may
terminate a reinvestigation of information disputed by a consumer under that paragraph if
the agency reasonably determines that the dispute by the consumer is frivolous or
irrelevant, including by reason of a failure by a consumer to provide sufficient
information to investigate the disputed information.
(B) Notice of determination. Upon making any determination in accordance with
subparagraph (A) that a dispute is frivolous or irrelevant, a consumer reporting agency
shall notify the consumer of such determination not later than 5 business days after
making such determination, by mail or, if authorized by the consumer for that purpose, by
any other means available to the agency.
(C) Contents of notice. A notice under subparagraph (B) shall include
(i) the reasons for the determination under subparagraph (A); and
(ii) identification of any information required to investigate the disputed
information, which may consist of a standardized form describing the general nature of
such information.
- (4) Consideration of consumer information. In conducting any reinvestigation under
paragraph (1) with respect to disputed information in the file of any consumer, the
consumer reporting agency shall review and consider all relevant information submitted by
the consumer in the period described in paragraph (1)(A) with respect to such disputed
information.
-
- (5) Treatment of inaccurate or unverifiable information.
-
(A) In general. If, after any reinvestigation under paragraph (1) of any information
disputed by a consumer, an item of the information is found to be inaccurate or incomplete
or cannot be verified, the consumer reporting agency shall promptly delete that item of
information from the consumer's file or modify that item of information, as appropriate,
based on the results of the reinvestigation.
(B) Requirements relating to reinsertion of previously deleted material.
(i) Certification of accuracy of information. If any information is deleted from a
consumer's file pursuant to subparagraph (A), the information may not be reinserted in the
file by the consumer reporting agency unless the person who furnishes the information
certifies that the information is complete and accurate.
(ii) Notice to consumer. If any information that has been deleted from a consumer's
file pursuant to subparagraph (A) is reinserted in the file, the consumer reporting agency
shall notify the consumer of the reinsertion in writing not later than 5 business days
after the reinsertion or, if authorized by the consumer for that purpose, by any other
means available to the agency.
(iii) Additional information. As part of, or in addition to, the notice under clause
(ii), a consumer reporting agency shall provide to a consumer in writing not later than 5
business days after the date of the reinsertion
(I) a statement that the disputed information has been reinserted;
(II) the business name and address of any furnisher of information contacted and the
telephone number of such furnisher, if reasonably available, or of any furnisher of
information that contacted the consumer reporting agency, in connection with the
reinsertion of such information; and
(III) a notice that the consumer has the right to add a statement to the consumer's
file disputing the accuracy or completeness of the disputed information.
(C) Procedures to prevent reappearance. A consumer reporting agency shall maintain
reasonable procedures designed to prevent the reappearance in a consumer's file, and in
consumer reports on the consumer, of information that is deleted pursuant to this
paragraph (other than information that is reinserted in accordance with subparagraph
(B)(i)).
(D) Automated reinvestigation system. Any consumer reporting agency that compiles and
maintains files on consumers on a nationwide basis shall implement an automated system
through which furnishers of information to that consumer reporting agency may report the
results of a reinvestigation that finds incomplete or inaccurate information in a
consumer's file to other such consumer reporting agencies.
- (6) Notice of results of reinvestigation.
-
(A) In general. A consumer reporting agency shall provide written notice to a consumer
of the results of a reinvestigation under this subsection not later than 5 business days
after the completion of the reinvestigation, by mail or, if authorized by the consumer for
that purpose, by other means available to the agency.
(B) Contents. As part of, or in addition to, the notice under subparagraph (A), a
consumer reporting agency shall provide to a consumer in writing before the expiration of
the 5-day period referred to in subparagraph (A)
(i) a statement that the reinvestigation is completed;
(ii) a consumer report that is based upon the consumer's file as that file is revised
as a result of the reinvestigation;
(iii) a notice that, if requested by the consumer, a description of the procedure used
to determine the accuracy and completeness of the information shall be provided to the
consumer by the agency, including the business name and address of any furnisher of
information contacted in connection with such information and the telephone number of such
furnisher, if reasonably available;
(iv) a notice that the consumer has the right to add a statement to the consumer's file
disputing the accuracy or completeness of the information; and
(v) a notice that the consumer has the right to request under subsection (d) that the
consumer reporting agency furnish notifications under that subsection.
- (7) Description of reinvestigation procedure. A consumer reporting agency shall provide
to a consumer a description referred to in paragraph (6)(B)(iii) by not later than 15 days
after receiving a request from the consumer for that description.
-
- (8) Expedited dispute resolution. If a dispute regarding an item of information in a
consumer's file at a consumer reporting agency is resolved in accordance with paragraph
(5)(A) by the deletion of the disputed information by not later than 3 business days after
the date on which the agency receives notice of the dispute from the consumer in
accordance with paragraph (1)(A), then the agency shall not be required to comply with
paragraphs (2), (6), and (7) with respect to that dispute if the agency
(A) provides prompt notice of the deletion to the consumer by telephone;
(B) includes in that notice, or in a written notice that accompanies a confirmation and
consumer report provided in accordance with subparagraph (C), a statement of the
consumer's right to request under subsection (d) that the agency furnish notifications
under that subsection; and
(C) provides written confirmation of the deletion and a copy of a consumer report on
the consumer that is based on the consumer's file after the deletion, not later than 5
business days after making the deletion.
(b) Statement of dispute. If the reinvestigation does not resolve the dispute, the
consumer may file a brief statement setting forth the nature of the dispute. The consumer
reporting agency may limit such statements to not more than one hundred words if it
provides the consumer with assistance in writing a clear summary of the dispute.
(c) Notification of consumer dispute in subsequent consumer reports. Whenever a
statement of a dispute is filed, unless there is reasonable grounds to believe that it is
frivolous or irrelevant, the consumer reporting agency shall, in any subsequent consumer
report containing the information in question, clearly note that it is disputed by the
consumer and provide either the consumer's statement or a clear and accurate codification
or summary thereof.
(d) Notification of deletion of disputed information. Following any deletion of
information which is found to be inaccurate or whose accuracy can no longer be verified or
any notation as to disputed information, the consumer reporting agency shall, at the
request of the consumer, furnish notification that the item has been deleted or the
statement, codification or summary pursuant to subsection (b) or (c) of this section to
any person specifically designated by the consumer who has within two years prior thereto
received a consumer report for employment purposes, or within six months prior thereto
received a consumer report for any other purpose, which contained the deleted or disputed
information.
§ 612. Charges for certain disclosures [15
U.S.C. § 1681j]
(a) Reasonable charges allowed for certain disclosures.
- (1) In general. Except as provided in subsections (b), (c), and (d), a consumer
reporting agency may impose a reasonable charge on a consumer
-
(A) for making a disclosure to the consumer pursuant to section 609 [§ 1681g],
which charge
(i) shall not exceed $8; and
(ii) shall be indicated to the consumer before making the disclosure; and
(B) for furnishing, pursuant to 611(d) [§ 1681i], following a reinvestigation
under section 611(a) [§ 1681i], a statement, codification, or summary to a person
designated by the consumer under that section after the 30-day period beginning on the
date of notification of the consumer under paragraph (6) or (8) of section 611(a)
[§ 1681i] with respect to the reinvestigation, which charge
(i) shall not exceed the charge that the agency would impose on each designated
recipient for a consumer report; and
(ii) shall be indicated to the consumer before furnishing such information.
- (2) Modification of amount. The Federal Trade Commission shall increase the amount
referred to in paragraph (1)(A)(I) on January 1 of each year, based proportionally on
changes in the Consumer Price Index, with fractional changes rounded to the nearest fifty
cents.
(b) Free disclosure after adverse notice to consumer. Each consumer reporting agency
that maintains a file on a consumer shall make all disclosures pursuant to section 609
[§ 1681g] without charge to the consumer if, not later than 60 days after receipt by
such consumer of a notification pursuant to section 615 [§ 1681m], or of a
notification from a debt collection agency affiliated with that consumer reporting agency
stating that the consumer's credit rating may be or has been adversely affected, the
consumer makes a request under section 609 [§ 1681g].
(c) Free disclosure under certain other circumstances. Upon the request of the
consumer, a consumer reporting agency shall make all disclosures pursuant to section 609
[§ 1681g] once during any 12-month period without charge to that consumer if the
consumer certifies in writing that the consumer
- (1) is unemployed and intends to apply for employment in the 60-day period beginning on
the date on which the certification is made;
-
- (2) is a recipient of public welfare assistance; or
-
- (3) has reason to believe that the file on the consumer at the agency contains
inaccurate information due to fraud.
(d) Other charges prohibited. A consumer reporting agency shall not impose any charge
on a consumer for providing any notification required by this title or making any
disclosure required by this title, except as authorized by subsection (a).
§ 613. Public record information for employment purposes
[15 U.S.C. § 1681k]
(a) In general. A consumer reporting agency which furnishes a consumer report for
employment purposes and which for that purpose compiles and reports items of information
on consumers which are matters of public record and are likely to have an adverse effect
upon a consumer's ability to obtain employment shall
- (1) at the time such public record information is reported to the user of such consumer
report, notify the consumer of the fact that public record information is being reported
by the consumer reporting agency, together with the name and address of the person to whom
such information is being reported; or
-
- (2) maintain strict procedures designed to insure that whenever public record
information which is likely to have an adverse effect on a consumer's ability to obtain
employment is reported it is complete and up to date. For purposes of this paragraph,
items of public record relating to arrests, indictments, convictions, suits, tax liens,
and outstanding judgments shall be considered up to date if the current public record
status of the item at the time of the report is reported.
(b) Exemption for national security investigations. Subsection (a) does not apply in
the case of an agency or department of the United States Government that seeks to obtain
and use a consumer report for employment purposes, if the head of the agency or department
makes a written finding as prescribed under section 604(b)(4)(A).
§ 614. Restrictions on investigative consumer reports
[15 U.S.C. § 1681l]
Whenever a consumer reporting agency prepares an investigative consumer report, no
adverse information in the consumer report (other than information which is a matter of
public record) may be included in a subsequent consumer report unless such adverse
information has been verified in the process of making such subsequent consumer report, or
the adverse information was received within the three-month period preceding the date the
subsequent report is furnished.
§ 615. Requirements on users of consumer reports [15
U.S.C. § 1681m]
(a) Duties of users taking adverse actions on the basis of information contained in
consumer reports. If any person takes any adverse action with respect to any consumer that
is based in whole or in part on any information contained in a consumer report, the person
shall
- (1) provide oral, written, or electronic notice of the adverse action to the consumer;
-
- (2) provide to the consumer orally, in writing, or electronically
-
(A) the name, address, and telephone number of the consumer reporting agency (including
a toll-free telephone number established by the agency if the agency compiles and
maintains files on consumers on a nationwide basis) that furnished the report to the
person; and
(B) a statement that the consumer reporting agency did not make the decision to take
the adverse action and is unable to provide the consumer the specific reasons why the
adverse action was taken; and
- (3) provide to the consumer an oral, written, or electronic notice of the consumer's
right
-
- (A) to obtain, under section 612 [§ 1681j], a free copy of a consumer report on
the consumer from the consumer reporting agency referred to in paragraph (2), which notice
shall include an indication of the 60-day period under that section for obtaining such a
copy; and
-
- (B) to dispute, under section 611 [§ 1681i], with a consumer reporting agency the
accuracy or completeness of any information in a consumer report furnished by the agency.
(b) Adverse action based on information obtained from third parties other than consumer
reporting agencies.
- (1) In general. Whenever credit for personal, family, or household purposes involving a
consumer is denied or the charge for such credit is increased either wholly or partly
because of information obtained from a person other than a consumer reporting agency
bearing upon the consumer's credit worthiness, credit standing, credit capacity,
character, general reputation, personal characteristics, or mode of living, the user of
such information shall, within a reasonable period of time, upon the consumer's written
request for the reasons for such adverse action received within sixty days after learning
of such adverse action, disclose the nature of the information to the consumer. The user
of such information shall clearly and accurately disclose to the consumer his right to
make such written request at the time such adverse action is communicated to the consumer.
-
- (2) Duties of person taking certain actions based on information provided by affiliate.
-
(A) Duties, generally. If a person takes an action described in subparagraph (B) with
respect to a consumer, based in whole or in part on information described in subparagraph
(C), the person shall
(i) notify the consumer of the action, including a statement that the consumer may
obtain the information in accordance with clause (ii); and
(ii) upon a written request from the consumer received within 60 days after transmittal
of the notice required by clause (I), disclose to the consumer the nature of the
information upon which the action is based by not later than 30 days after receipt of the
request.
(B) Action described. An action referred to in subparagraph (A) is an adverse action
described in section 603(k)(1)(A) [§ 1681a], taken in connection with a transaction
initiated by the consumer, or any adverse action described in clause (i) or (ii) of
section 603(k)(1)(B) [§ 1681a].
(C) Information described. Information referred to in subparagraph (A)
- (i) except as provided in clause (ii), is information that
- (I) is furnished to the person taking the action by a person related by common ownership
or affiliated by common corporate control to the person taking the action; and
-
- (II) bears on the credit worthiness, credit standing, credit capacity, character,
general reputation, personal characteristics, or mode of living of the consumer; and
-
- (ii) does not include
-
- (I) information solely as to transactions or experiences between the consumer and the
person furnishing the information; or
-
- (II) information in a consumer report.
(c) Reasonable procedures to assure compliance. No person shall be held liable for any
violation of this section if he shows by a preponderance of the evidence that at the time
of the alleged violation he maintained reasonable procedures to assure compliance with the
provisions of this section.
(d) Duties of users making written credit or insurance solicitations on the basis of
information contained in consumer files.
- (1) In general. Any person who uses a consumer report on any consumer in connection with
any credit or insurance transaction that is not initiated by the consumer, that is
provided to that person under section 604(c)(1)(B) [§ 1681b], shall provide with
each written solicitation made to the consumer regarding the transaction a clear and
conspicuous statement that
-
(A) information contained in the consumer's consumer report was used in connection with
the transaction;
(B) the consumer received the offer of credit or insurance because the consumer
satisfied the criteria for credit worthiness or insurability under which the consumer was
selected for the offer;
(C) if applicable, the credit or insurance may not be extended if, after the consumer
responds to the offer, the consumer does not meet the criteria used to select the consumer
for the offer or any applicable criteria bearing on credit worthiness or insurability or
does not furnish any required collateral;
(D) the consumer has a right to prohibit information contained in the consumer's file
with any consumer reporting agency from being used in connection with any credit or
insurance transaction that is not initiated by the consumer; and
(E) the consumer may exercise the right referred to in subparagraph (D) by notifying a
notification system established under section 604(e) [§ 1681b].
- (2) Disclosure of address and telephone number. A statement under paragraph (1) shall
include the address and toll-free telephone number of the appropriate notification system
established under section 604(e) [§ 1681b].
-
- (3) Maintaining criteria on file. A person who makes an offer of credit or insurance to
a consumer under a credit or insurance transaction described in paragraph (1) shall
maintain on file the criteria used to select the consumer to receive the offer, all
criteria bearing on credit worthiness or insurability, as applicable, that are the basis
for determining whether or not to extend credit or insurance pursuant to the offer, and
any requirement for the furnishing of collateral as a condition of the extension of credit
or insurance, until the expiration of the 3-year period beginning on the date on which the
offer is made to the consumer.
-
- (4) Authority of federal agencies regarding unfair or deceptive acts or practices not
affected. This section is not intended to affect the authority of any Federal or State
agency to enforce a prohibition against unfair or deceptive acts or practices, including
the making of false or misleading statements in connection with a credit or insurance
transaction that is not initiated by the consumer.
§ 616. Civil liability for willful noncompliance
[15 U.S.C. § 1681n]
- (a) In general. Any person who willfully fails to comply with any requirement imposed
under this title with respect to any consumer is liable to that consumer in an amount
equal to the sum of
(1) (A) any actual damages sustained by the consumer as a result of the failure or damages
of not less than $100 and not more than $1,000; or
-
(B) in the case of liability of a natural person for obtaining a consumer report under
false pretenses or knowingly without a permissible purpose, actual damages sustained by
the consumer as a result of the failure or $1,000, whichever is greater;
- (2) such amount of punitive damages as the court may allow; and
-
- (3) in the case of any successful action to enforce any liability under this section,
the costs of the action together with reasonable attorney's fees as determined by the
court.
(b) Civil liability for knowing noncompliance. Any person who obtains a consumer report
from a consumer reporting agency under false pretenses or knowingly without a permissible
purpose shall be liable to the consumer reporting agency for actual damages sustained by
the consumer reporting agency or $1,000, whichever is greater.
(c) Attorney's fees. Upon a finding by the court that an unsuccessful pleading, motion,
or other paper filed in connection with an action under this section was filed in bad
faith or for purposes of harassment, the court shall award to the prevailing party
attorney's fees reasonable in relation to the work expended in responding to the pleading,
motion, or other paper.
§ 617. Civil liability for negligent noncompliance
[15 U.S.C. § 1681o]
(a) In general. Any person who is negligent in failing to comply with any requirement
imposed under this title with respect to any consumer is liable to that consumer in an
amount equal to the sum of
- (1) any actual damages sustained by the consumer as a result of the failure;
-
- (2) in the case of any successful action to enforce any liability under this section,
the costs of the action together with reasonable attorney's fees as determined by the
court.
(b) Attorney's fees. On a finding by the court that an unsuccessful pleading, motion,
or other paper filed in connection with an action under this section was filed in bad
faith or for purposes of harassment, the court shall award to the prevailing party
attorney's fees reasonable in relation to the work expended in responding to the pleading,
motion, or other paper.
§ 618. Jurisdiction of courts; limitation of actions
[15 U.S.C. § 1681p]
An action to enforce any liability created under this title may be brought in any
appropriate United States district court without regard to the amount in controversy, or
in any other court of competent jurisdiction, within two years from the date on which the
liability arises, except that where a defendant has materially and willfully
misrepresented any information required under this title to be disclosed to an individual
and the information so misrepresented is material to the establishment of the defendant's
liability to that individual under this title, the action may be brought at any time
within two years after discovery by the individual of the misrepresentation.
§ 619. Obtaining information under false pretenses [15
U.S.C. § 1681q]
Any person who knowingly and willfully obtains information on a consumer from a
consumer reporting agency under false pretenses shall be fined under title 18, United
States Code, imprisoned for not more than 2 years, or both.
§ 620. Unauthorized disclosures by officers or employees
[15 U.S.C. § 1681r]
Any officer or employee of a consumer reporting agency who knowingly and willfully
provides information concerning an individual from the agency's files to a person not
authorized to receive that information shall be fined under title 18, United States Code,
imprisoned for not more than 2 years, or both.
§ 621. Administrative enforcement [15 U.S.C.
§ 1681s]
(a) (1) Enforcement by Federal Trade Commission. Compliance with the requirements
imposed under this title shall be enforced under the Federal Trade Commission Act [15
U.S.C. §§ 41 et seq.] by the Federal Trade Commission with respect to consumer reporting
agencies and all other persons subject thereto, except to the extent that enforcement of
the requirements imposed under this title is specifically committed to some other
government agency under subsection (b) hereof. For the purpose of the exercise by the
Federal Trade Commission of its functions and powers under the Federal Trade Commission
Act, a violation of any requirement or prohibition imposed under this title shall
constitute an unfair or deceptive act or practice in commerce in violation of section 5(a)
of the Federal Trade Commission Act [15 U.S.C. § 45(a)] and shall be subject to
enforcement by the Federal Trade Commission under section 5(b) thereof [15 U.S.C. §
45(b)] with respect to any consumer reporting agency or person subject to enforcement by
the Federal Trade Commission pursuant to this subsection, irrespective of whether that
person is engaged in commerce or meets any other jurisdictional tests in the Federal Trade
Commission Act. The Federal Trade Commission shall have such procedural, investigative,
and enforcement powers, including the power to issue procedural rules in enforcing
compliance with the requirements imposed under this title and to require the filing of
reports, the production of documents, and the appearance of witnesses as though the
applicable terms and conditions of the Federal Trade Commission Act were part of this
title. Any person violating any of the provisions of this title shall be subject to the
penalties and entitled to the privileges and immunities provided in the Federal Trade
Commission Act as though the applicable terms and provisions thereof were part of this
title.
- 2) (A) In the event of a knowing violation, which constitutes a pattern or practice of
violations of this title, the Commission may commence a civil action to recover a civil
penalty in a district court of the United States against any person that violates this
title. In such action, such person shall be liable for a civil penalty of not more than
$2,500 per violation.
-
- (B) In determining the amount of a civil penalty under subparagraph (A), the court shall
take into account the degree of culpability, any history of prior such conduct, ability to
pay, effect on ability to continue to do business, and such other matters as justice may
require.
-
- (3) Notwithstanding paragraph (2), a court may not impose any civil penalty on a person
for a violation of section 623(a)(1) [§ 1681s-2] unless the person has been enjoined
from committing the violation, or ordered not to commit the violation, in an action or
proceeding brought by or on behalf of the Federal Trade Commission, and has violated the
injunction or order, and the court may not impose any civil penalty for any violation
occurring before the date of the violation of the injunction or order.
-
- (4) Neither the Commission nor any other agency referred to in subsection (b) may
prescribe trade regulation rules or other regulations with respect to this title.
(b) Enforcement by other agencies. Compliance with the requirements imposed under this
title with respect to consumer reporting agencies, persons who use consumer reports from
such agencies, persons who furnish information to such agencies, and users of information
that are subject to subsection (d) of section 615 [§ 1681m] shall be enforced under
- (1) section 8 of the Federal Deposit Insurance Act [12 U.S.C. § 1818], in the case of
-
(A) national banks, and Federal branches and Federal agencies of foreign banks, by the
Office of the Comptroller of the Currency;
(B) member banks of the Federal Reserve System (other than national banks), branches
and agencies of foreign banks (other than Federal branches, Federal agencies, and insured
State branches of foreign banks), commercial lending companies owned or controlled by
foreign banks, and organizations operating under section 25 or 25(a) [25A] of the Federal
Reserve Act [12 U.S.C. §§ 601 et seq., §§ 611 et seq], by the Board of Governors of
the Federal Reserve System; and
(C) banks insured by the Federal Deposit Insurance Corporation (other than members of
the Federal Reserve System) and insured State branches of foreign banks, by the Board of
Directors of the Federal Deposit Insurance Corporation;
- (2) section 8 of the Federal Deposit Insurance Act [12 U.S.C. § 1818], by the Director
of the Office of Thrift Supervision, in the case of a savings association the deposits of
which are insured by the Federal Deposit Insurance Corporation;
-
- (3) the Federal Credit Union Act [12 U.S.C. §§ 1751 et seq.], by the Administrator of
the National Credit Union Administration [National Credit Union Administration Board] with
respect to any Federal credit union;
-
- (4) subtitle IV of title 49 [49 U.S.C. §§ 10101 et seq.], by the Secretary of
Transportation, with respect to all carriers subject to the jurisdiction of the Surface
Transportation Board;
-
- (5) the Federal Aviation Act of 1958 [49 U.S.C. Appx §§ 1301 et seq.], by the
Secretary of Transportation with respect to any air carrier or foreign air carrier subject
to that Act [49 U.S.C. Appx §§ 1301 et seq.]; and
-
- (6) the Packers and Stockyards Act, 1921 [7 U.S.C. §§ 181 et seq.] (except as provided
in section 406 of that Act [7 U.S.C. §§ 226 and 227]), by the Secretary of Agriculture
with respect to any activities subject to that Act.
The terms used in paragraph (1) that are not defined in this title or otherwise defined
in section 3(s) of the Federal Deposit Insurance Act (12 U.S.C. § 1813(s)) shall
have the meaning given to them in section 1(b) of the International Banking Act of 1978
(12 U.S.C. § 3101).
(c) State action for violations.
- (1) Authority of states. In addition to such other remedies as are provided under State
law, if the chief law enforcement officer of a State, or an official or agency designated
by a State, has reason to believe that any person has violated or is violating this title,
the State
-
(A) may bring an action to enjoin such violation in any appropriate United States
district court or in any other court of competent jurisdiction;
(B) subject to paragraph (5), may bring an action on behalf of the residents of the
State to recover
(i) damages for which the person is liable to such residents under sections 616 and 617
[§§ 1681n and 1681o] as a result of the violation;
(ii) in the case of a violation of section 623(a) [§ 1681s-2], damages for which
the person would, but for section 623(c) [§ 1681s-2], be liable to such residents as
a result of the violation; or
(iii) damages of not more than $1,000 for each willful or negligent violation; and
(C) in the case of any successful action under subparagraph (A) or (B), shall be
awarded the costs of the action and reasonable attorney fees as determined by the court.
- (2) Rights of federal regulators. The State shall serve prior written notice of any
action under paragraph (1) upon the Federal Trade Commission or the appropriate Federal
regulator determined under subsection (b) and provide the Commission or appropriate
Federal regulator with a copy of its complaint, except in any case in which such prior
notice is not feasible, in which case the State shall serve such notice immediately upon
instituting such action. The Federal Trade Commission or appropriate Federal regulator
shall have the right
-
(A) to intervene in the action;
(B) upon so intervening, to be heard on all matters arising therein;
(C) to remove the action to the appropriate United States district court; and
(D) to file petitions for appeal.
- (3) Investigatory powers. For purposes of bringing any action under this subsection,
nothing in this subsection shall prevent the chief law enforcement officer, or an official
or agency designated by a State, from exercising the powers conferred on the chief law
enforcement officer or such official by the laws of such State to conduct investigations
or to administer oaths or affirmations or to compel the attendance of witnesses or the
production of documentary and other evidence.
-
- (4) Limitation on state action while federal action pending. If the Federal Trade
Commission or the appropriate Federal regulator has instituted a civil action or an
administrative action under section 8 of the Federal Deposit Insurance Act for a violation
of this title, no State may, during the pendency of such action, bring an action under
this section against any defendant named in the complaint of the Commission or the
appropriate Federal regulator for any violation of this title that is alleged in that
complaint.
-
- (5) Limitations on state actions for violation of section 623(a)(1) [§ 1681s-2].
-
(A) Violation of injunction required. A State may not bring an action against a person
under paragraph (1)(B) for a violation of section 623(a)(1) [§ 1681s-2], unless
(i) the person has been enjoined from committing the violation, in an action brought by
the State under paragraph (1)(A); and
(ii) the person has violated the injunction.
(B) Limitation on damages recoverable. In an action against a person under paragraph
(1)(B) for a violation of section 623(a)(1) [§ 1681s-2], a State may not recover any
damages incurred before the date of the violation of an injunction on which the action is
based.
(d) Enforcement under other authority. For the purpose of the exercise by any agency
referred to in subsection (b) of this section of its powers under any Act referred to in
that subsection, a violation of any requirement imposed under this title shall be deemed
to be a violation of a requirement imposed under that Act. In addition to its powers under
any provision of law specifically referred to in subsection (b) of this section, each of
the agencies referred to in that subsection may exercise, for the purpose of enforcing
compliance with any requirement imposed under this title any other authority conferred on
it by law. Notwithstanding the preceding, no agency referred to in subsection (b) may
conduct an examination of a bank, savings association, or credit union regarding
compliance with the provisions of this title, except in response to a complaint (or if the
agency otherwise has knowledge) that the bank, savings association, or credit union has
violated a provision of this title, in which case, the agency may conduct an examination
as necessary to investigate the complaint. If an agency determines during an investigation
in response to a complaint that a violation of this title has occurred, the agency may,
during its next 2 regularly scheduled examinations of the bank, savings association, or
credit union, examine for compliance with this title.
(e) Interpretive authority. The Board of Governors of the Federal Reserve System may
issue interpretations of any provision of this title as such provision may apply to any
persons identified under paragraph (1), (2), and (3) of subsection (b), or to the holding
companies and affiliates of such persons, in consultation with Federal agencies identified
in paragraphs (1), (2), and (3) of subsection (b).
§ 622. Information on overdue child support obligations
[15 U.S.C. § 1681s-1]
Notwithstanding any other provision of this title, a consumer reporting agency shall
include in any consumer report furnished by the agency in accordance with section 604
[§ 1681b] of this title, any information on the failure of the consumer to pay
overdue support which
- (1) is provided
-
(A) to the consumer reporting agency by a State or local child support enforcement
agency; or
(B) to the consumer reporting agency and verified by any local, State, or Federal
government agency; and
- (2) antedates the report by 7 years or less.
§ 623. Responsibilities of furnishers of information to
consumer reporting agencies [15 U.S.C. § 1681s-2]
(a) Duty of furnishers of information to provide accurate information.
- (1) Prohibition.
-
(A) Reporting information with actual knowledge of errors. A person shall not furnish
any information relating to a consumer to any consumer reporting agency if the person
knows or consciously avoids knowing that the information is inaccurate.
(B) Reporting information after notice and confirmation of errors. A person shall not
furnish information relating to a consumer to any consumer reporting agency if
(i) the person has been notified by the consumer, at the address specified by the
person for such notices, that specific information is inaccurate; and
(ii) the information is, in fact, inaccurate.
(C) No address requirement. A person who clearly and conspicuously specifies to the
consumer an address for notices referred to in subparagraph (B) shall not be subject to
subparagraph (A); however, nothing in subparagraph (B) shall require a person to specify
such an address.
- (2) Duty to correct and update information. A person who
-
(A) regularly and in the ordinary course of business furnishes information to one or
more consumer reporting agencies about the person's transactions or experiences with any
consumer; and
(B) has furnished to a consumer reporting agency information that the person determines
is not complete or accurate,
- shall promptly notify the consumer reporting agency of that determination and provide to
the agency any corrections to that information, or any additional information, that is
necessary to make the information provided by the person to the agency complete and
accurate, and shall not thereafter furnish to the agency any of the information that
remains not complete or accurate.
-
- (3) Duty to provide notice of dispute. If the completeness or accuracy of any
information furnished by any person to any consumer reporting agency is disputed to such
person by a consumer, the person may not furnish the information to any consumer reporting
agency without notice that such information is disputed by the consumer.
-
- (4) Duty to provide notice of closed accounts. A person who regularly and in the
ordinary course of business furnishes information to a consumer reporting agency regarding
a consumer who has a credit account with that person shall notify the agency of the
voluntary closure of the account by the consumer, in information regularly furnished for
the period in which the account is closed.
-
- (5) Duty to provide notice of delinquency of accounts. A person who furnishes
information to a consumer reporting agency regarding a delinquent account being placed for
collection, charged to profit or loss, or subjected to any similar action shall, not later
than 90 days after furnishing the information, notify the agency of the month and year of
the commencement of the delinquency that immediately preceded the action.
(b) Duties of furnishers of information upon notice of dispute.
- (1) In general. After receiving notice pursuant to section 611(a)(2) [§ 1681i] of
a dispute with regard to the completeness or accuracy of any information provided by a
person to a consumer reporting agency, the person shall
-
(A) conduct an investigation with respect to the disputed information;
(B) review all relevant information provided by the consumer reporting agency pursuant
to section 611(a)(2) [§ 1681i];
(C) report the results of the investigation to the consumer reporting agency; and
(D) if the investigation finds that the information is incomplete or inaccurate, report
those results to all other consumer reporting agencies to which the person furnished the
information and that compile and maintain files on consumers on a nationwide basis.
- (2) Deadline. A person shall complete all investigations, reviews, and reports required
under paragraph (1) regarding information provided by the person to a consumer reporting
agency, before the expiration of the period under section 611(a)(1) [§ 1681i] within
which the consumer reporting agency is required to complete actions required by that
section regarding that information.
(c) Limitation on liability. Sections 616 and 617 [§§ 1681n and 1681o] do not
apply to any failure to comply with subsection (a), except as provided in section
621(c)(1)(B) [§ 1681s].
(d) Limitation on enforcement. Subsection (a) shall be enforced exclusively under
section 621 [§ 1681s] by the Federal agencies and officials and the State officials
identified in that section.
§ 624. Relation to State laws [15 U.S.C.
§ 1681t]
(a) In general. Except as provided in subsections (b) and (c), this title does not
annul, alter, affect, or exempt any person subject to the provisions of this title from
complying with the laws of any State with respect to the collection, distribution, or use
of any information on consumers, except to the extent that those laws are inconsistent
with any provision of this title, and then only to the extent of the inconsistency.
(b) General exceptions. No requirement or prohibition may be imposed under the laws of
any State
- (1) with respect to any subject matter regulated under
-
(A) subsection (c) or (e) of section 604 [§ 1681b], relating to the prescreening
of consumer reports;
(B) section 611 [§ 1681i], relating to the time by which a consumer reporting
agency must take any action, including the provision of notification to a consumer or
other person, in any procedure related to the disputed accuracy of information in a
consumer's file, except that this subparagraph shall not apply to any State law in effect
on the date of enactment of the Consumer Credit Reporting Reform Act of 1996;
(C) subsections (a) and (b) of section 615 [§ 1681m], relating to the duties of a
person who takes any adverse action with respect to a consumer;
(D) section 615(d) [§ 1681m], relating to the duties of persons who use a
consumer report of a consumer in connection with any credit or insurance transaction that
is not initiated by the consumer and that consists of a firm offer of credit or insurance;
(E) section 605 [§ 1681c], relating to information contained in consumer reports,
except that this subparagraph shall not apply to any State law in effect on the date of
enactment of the Consumer Credit Reporting Reform Act of 1996; or
(F) section 623 [§ 1681s-2], relating to the responsibilities of persons who
furnish information to consumer reporting agencies, except that this paragraph shall not
apply
(i) with respect to section 54A(a) of chapter 93 of the Massachusetts Annotated Laws
(as in effect on the date of enactment of the Consumer Credit Reporting Reform Act of
1996); or
(ii) with respect to section 1785.25(a) of the California Civil Code (as in effect on
the date of enactment of the Consumer Credit Reporting Reform Act of 1996);
- (2) with respect to the exchange of information among persons affiliated by common
ownership or common corporate control, except that this paragraph shall not apply with
respect to subsection (a) or (c)(1) of section 2480e of title 9, Vermont Statutes
Annotated (as in effect on the date of enactment of the Consumer Credit Reporting Reform
Act of 1996); or
-
- (3) with respect to the form and content of any disclosure required to be made under
section 609(c) [§ 1681g].
(c) Definition of firm offer of credit or insurance. Notwithstanding any definition of
the term "firm offer of credit or insurance" (or any equivalent term) under the
laws of any State, the definition of that term contained in section 603(l) [§ 1681a]
shall be construed to apply in the enforcement and interpretation of the laws of any State
governing consumer reports.
(d) Limitations. Subsections (b) and (c)
- (1) do not affect any settlement, agreement, or consent judgment between any State
Attorney General and any consumer reporting agency in effect on the date of enactment of
the Consumer Credit Reporting Reform Act of 1996; and
-
- (2) do not apply to any provision of State law (including any provision of a State
constitution) that
-
(A) is enacted after January 1, 2004;
(B) states explicitly that the provision is intended to supplement this title; and
(C) gives greater protection to consumers than is provided under this title.
§ 625. Disclosures to FBI for counterintelligence purposes
[15 U.S.C. § 1681u]
(a) Identity of financial institutions. Notwithstanding section 604 [§ 1681b] or
any other provision of this title, a consumer reporting agency shall furnish to the
Federal Bureau of Investigation the names and addresses of all financial institutions (as
that term is defined in section 1101 of the Right to Financial Privacy Act of 1978 [12
U.S.C. § 3401]) at which a consumer maintains or has maintained an account, to the extent
that information is in the files of the agency, when presented with a written request for
that information, signed by the Director of the Federal Bureau of Investigation, or the
Director's designee, 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
- (1) such information is necessary for the conduct of an authorized foreign
counterintelligence investigation; and
-
- (2) there are specific and articulable facts giving reason to believe that the consumer
-
(A) is a foreign power (as defined in section 101 of the Foreign Intelligence
Surveillance Act of 1978 [50 U.S.C. § 1801]) or a person who is not a United States
person (as defined in such section 101) and is an official of a foreign power; or
(B) is an agent of a foreign power and is engaging or has engaged in an act of
international terrorism (as that term is defined in section 101(c) of the Foreign
Intelligence Surveillance Act of 1978 [50 U.S.C. § 1801(c)]) or clandestine intelligence
activities that involve or may involve a violation of criminal statutes of the United
States.
(b) Identifying information. Notwithstanding the provisions of section 604
[§ 1681b] or any other provision of this title, a consumer reporting agency shall
furnish identifying information respecting a consumer, limited to name, address, former
addresses, places of employment, or former places of employment, to the Federal Bureau of
Investigation when presented with a written request, signed by the Director or the
Director's designee, which certifies compliance with this subsection. The Director or the
Director's designee may make such a certification only if the Director or the Director's
designee has determined in writing that
- (1) such information is necessary to the conduct of an authorized counterintelligence
investigation; and
-
- (2) there is information giving reason to believe that the consumer has been, or is
about to be, in contact with a foreign power or an agent of a foreign power (as defined in
section 101 of the Foreign Intelligence Surveillance Act of 1978 [50 U.S.C. § 1801]).
(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, a court
may issue an order ex parte directing a consumer reporting agency to furnish a consumer
report to the Federal Bureau of Investigation, upon a showing in camera that
- (1) the consumer report is necessary for the conduct of an authorized foreign
counterintelligence investigation; and
-
- (2) there are specific and articulable facts giving reason to believe that the consumer
whose consumer report is sought
-
(A) is an agent of a foreign power, and
(B) is engaging or has engaged in an act of international terrorism (as that term is
defined in section 101(c) of the Foreign Intelligence Surveillance Act of 1978 [50 U.S.C.
§ 1801(c)]) or clandestine intelligence activities that involve or may involve a
violation of criminal statutes of the United States.
The terms of an order issued under this subsection shall not disclose that the order is
issued for purposes of a counterintelligence investigation.
(d) Confidentiality. No consumer reporting agency or officer, employee, or agent of a
consumer reporting agency shall disclose to any person, other than those officers,
employees, or agents of a consumer reporting agency necessary to fulfill the requirement
to disclose information to the Federal Bureau of Investigation under this section, that
the Federal Bureau of Investigation has sought or obtained the identity of financial
institutions or a consumer report respecting any consumer under subsection (a), (b), or
(c), and no consumer reporting agency or officer, employee, or agent of a consumer
reporting agency shall include in any consumer report any information that would indicate
that the Federal Bureau of Investigation has sought or obtained such information or a
consumer report.
(e) Payment of fees. The Federal Bureau of Investigation shall, subject to the
availability of appropriations, pay to the consumer reporting agency assembling or
providing report or information in accordance with procedures established under this
section a fee for reimbursement for such costs as are reasonably necessary and which have
been directly incurred in searching, reproducing, or transporting books, papers, records,
or other data required or requested to be produced under this section.
(f) Limit on dissemination. The Federal Bureau of Investigation may not disseminate
information obtained pursuant to this section outside of the Federal Bureau of
Investigation, except to other Federal agencies as may be necessary for the approval or
conduct of a foreign counterintelligence investigation, or, where the information concerns
a person subject to the Uniform Code of Military Justice, to appropriate investigative
authorities within the military department concerned as may be necessary for the conduct
of a joint foreign counterintelligence investigation.
(g) Rules of construction. Nothing in this section shall be construed to prohibit
information from being furnished by the Federal Bureau of Investigation pursuant to a
subpoena or court order, in connection with a judicial or administrative proceeding to
enforce the provisions of this Act. Nothing in this section shall be construed to
authorize or permit the withholding of information from the Congress.
(h) Reports to Congress. On a semiannual basis, the Attorney General shall fully inform
the Permanent Select Committee on Intelligence and the Committee on Banking, Finance and
Urban Affairs of the House of Representatives, and the Select Committee on Intelligence
and the Committee on Banking, Housing, and Urban Affairs of the Senate concerning all
requests made pursuant to subsections (a), (b), and (c).
(i) Damages. Any agency or department of the United States obtaining or disclosing any
consumer reports, records, or information contained therein in violation of this section
is liable to the consumer to whom such consumer reports, records, or information relate in
an amount equal to the sum of
- (1) $100, without regard to the volume of consumer reports, records, or information
involved;
-
- (2) any actual damages sustained by the consumer as a result of the disclosure;
-
- (3) if the violation is found to have been willful or intentional, such punitive damages
as a court may allow; and
-
- (4) in the case of any successful action to enforce liability under this subsection, the
costs of the action, together with reasonable attorney fees, as determined by the court.
(j) Disciplinary actions for violations. If a court determines that any agency or
department of the United States has violated any provision of this section and the court
finds that the circumstances surrounding the violation raise questions of whether or not
an officer or employee of the agency or department acted willfully or intentionally with
respect to the violation, the agency or department shall promptly initiate a proceeding to
determine whether or not disciplinary action is warranted against the officer or employee
who was responsible for the violation.
(k) Good-faith exception. Notwithstanding any other provision of this title, any
consumer reporting agency or agent or employee thereof making disclosure of consumer
reports or identifying information pursuant to this subsection in good-faith reliance upon
a certification of the Federal Bureau of Investigation pursuant to provisions of this
section shall not be liable to any person for such disclosure under this title, the
constitution of any State, or any law or regulation of any State or any political
subdivision of any State.
(l) Limitation of remedies. Notwithstanding any other provision of this title, the
remedies and sanctions set forth in this section shall be the only judicial remedies and
sanctions for violation of this section.
(m) Injunctive relief. In addition to any other remedy contained in this section,
injunctive relief shall be available to require compliance with the procedures of this
section. In the event of any successful action under this subsection, costs together with
reasonable attorney fees, as determined by the court, may be recovered.
- Legislative History
House Reports: No. 91-975 (Comm. on Banking and Currency) and No.
91-1587 (Comm. of Conference)
Senate Reports: No. 91-1139 accompanying S. 3678 (Comm. on
Banking and Currency)
Congressional Record, Vol. 116 (1970)
May 25, considered and passed House.
Sept. 18, considered and passed Senate, amended.
Oct. 9, Senate agreed to conference report.
Oct. 13, House agreed to conference report.
- Enactment:
- Public Law No. 91-508 (October 26, 1970):
-
- Amendments: Public Law Nos.
- 95-473 (October 17, 1978)
- 95-598 (November 6, 1978)
- 98-443 (October 4, 1984)
- 101-73 (August 9, 1989)
- 102-242 (December 19, 1991)
- 102-537 (October 27, 1992)
- 102-550 (October 28, 1992)
- 103-325 (September 23, 1994)
- 104-88 (December 29, 1995)
- 104-93 (January 6, 1996)
- 104-193 (August 22, 1996)
- 104-208 (September 30, 1996)
- 105-107 (November 20, 1997)
- 105-347 (November 2, 1998)
1.
The reporting periods have been lengthened for certain
adverse information pertaining to U.S. Government insured or guaranteed student loans, or
pertaining to national direct student loans. See sections 430A(f) and 463(c)(3) of the
Higher Education Act of 1965, 20 U.S.C. 1080a(f) and 20 U.S.C. 1087cc(c)(3), respectively.
** Should read "paragraphs (4) and (5)
..." Prior Section 605(a)(6) was amended and redesignated as Section
605(a)(5) in November 1998. |