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Fair Credit Reporting
Act (FCRA)
THE FAIR CREDIT REPORTING ACT
As a
public service, the staff of the Federal Trade
Commission (FTC) has prepared the
following complete text of the Fair Credit Reporting Act
(FCRA), 15 U.S.C. § 1681 et seq.
Although staff generally followed the format of the U.S.
Code as published by the Government
Printing Office, the format of this text does differ in
minor ways from the Code (and from West’s
U.S.
Code Annotated). For example, this version uses FCRA
section numbers (§§ 601-625) in
the
headings. (The relevant U.S. Code citation is included
with each section heading and each
reference to the FCRA in the text.) Although the staff
has made every effort to transcribe the
statutory material accurately, this compendium is
intended only as a convenience for the public
and
not a subtitute for the text in the U. S. Code. This
document was posted on July 30, 2004.
This
version of the FCRA includes the amendments to the FCRA
set forth in the Consumer
Credit Reporting Reform Act of 1996 (Public Law 104-208,
the Omnibus Consolidated Appro-
priations Act for Fiscal Year 1997, Title II, Subtitle
D, Chapter 1), Section 311 of the
Intelligence Authorization for Fiscal Year 1998 (Public
Law 105-107), the Consumer Reporting
Employment Clarification Act of 1998 (Public Law
105-347), Section 506 of the Gramm-Leach-
Bliley Act (Public Law 106-102), Sections 358(g) and
505(c) of the Uniting and Strengthening
America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of
2001
(USA PATRIOT Act) (Public Law 107-56), and the Fair and
Accurate Credit Transactions
Act
of 2003 (FACT Act) (Public Law 108-159).
The
provisions added to the FCRA by the FACT Act will become
effective at different times.
In
some cases, the provision includes its own effective
date. In other cases, the FACT Act provides
that
the effective dates be prescribed by the FTC and Federal
Reserve Board. See 16 CFR Part 602.
(69
Fed. Reg. 6526; February 11, 2004) (69 Fed. Reg. 29061;
May 20, 2004).
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July 30, 2004
TABLE OF CONTENTS
§
601 Short title
§
602 Congressional findings and statement of purpose
§
603 Definitions; rules of construction
§
604 Permissible purposes of consumer reports
§
605A Identity theft prevention; fraud alerts and active
duty alerts
§
605B Block of information resulting from identity theft
§
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 Affiliate sharing
§
625 Relation to state laws
§
626 Disclosures to FBI for counterintelligence purposes
§
627 Disclosures to governmental agencies for
counterterrorism purposes
§
628 Disposal of records
§
629 Corporate and technological circumvention prohibited
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July 30, 2004
§
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
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July 30, 2004
to
be used or collected in whole or in part for the purpose
of serving as a factor in
establishing the consumer's eligibility for
(A) credit or insurance to be used primarily for
personal, family, or household
purposes;
(B) employment purposes; or
(C) any other purpose authorized under section 604 [§
1681b].
(2)Exclusions.
Except as provided in paragraph (3), the term
"consumer report" does
not
include
(A) subject to section 624, any
(i)
report containing information solely as to transactions
or experiences
between the consumer and the person making the report;
(ii)
communication of that information among persons related
by common
ownership or affiliated by corporate control; or
(iii) communication of other information among persons
related by
common ownership or affiliated by corporate control, if
it is clearly
and
conspicuously disclosed to the consumer that the
information may
be
communicated among such persons and the consumer is
given the
opportunity, before the time that the information is
initially
communicated, to direct that such information not be
communicated
among such persons;
(B) any authorization or approval of a specific
extension of credit directly or
indirectly by the issuer of a credit card or similar
device;
(C) any report in which a person who has been requested
by a third party to
make
a specific extension of credit directly or indirectly to
a consumer
conveys his or her decision with respect to such
request, if the third party
advises the consumer of the name and address of the
person to whom the
request was made, and such person makes the disclosures
to the consumer
required under section 615 [§ 1681m]; or
(D) a communication described in subsection (o) or (x).
(3)Restriction
on sharing of medical information. Except for
information or any
communication of information disclosed as provided in
section 604(g)(3), the
exclusions in paragraph (2) shall not apply with respect
to information disclosed
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July 30, 2004
to
any person related by common ownership or affiliated by
corporate control, if
the
information is--
(A)
medical information;
(B)
an individualized list or description based on the
payment transactions of the
consumer for medical products or services; or
(C)
an aggregate list of identified consumers based on
payment transactions for
medical products or services.
(e)The term “investigative consumer report” means a
consumer report or portion
thereof in which information on a consumer's character,
general reputation, personal
characteristics, or mode of living is obtained through
personal interviews with
neighbors, friends, or associates of the consumer
reported on or with others with
whom
he is acquainted or who may have knowledge concerning
any such items of
information. However, such information shall not include
specific factual information
on a
consumer's credit record obtained directly from a
creditor of the consumer or
from
a consumer reporting agency when such information was
obtained directly from
a
creditor of the consumer or from the consumer.
(f)
The term “consumer reporting agency” means any person
which, for monetary fees,
dues, or on a cooperative nonprofit basis, regularly
engages in whole or in part in the
practice of assembling or evaluating consumer credit
information or other
information on consumers for the purpose of furnishing
consumer reports to third
parties, and which uses any means or facility of
interstate commerce for the purpose
of
preparing or furnishing consumer reports.
(g)The
term “file,” when used in connection with information on
any consumer, means
all
of the information on that consumer recorded and
retained by a consumer
reporting agency regardless of how the information is
stored.
(h)The
term “employment purposes” when used in connection with
a consumer report
means a report used for the purpose of evaluating a
consumer for employment,
promotion, reassignment or retention as an employee.
(i)
The term “medical information” --
(1)means information or data, whether oral or recorded,
in any form or medium,
created by or derived from a health care provider or the
consumer, that relates to--
(A)
the past, present, or future physical, mental, or
behavioral health or
condition of an individual;
(B)
the provision of health care to an individual; or
(C)
the payment for the provision of health care to an
individual.
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July 30, 2004
(2)
does not include the age or gender of a consumer,
demographic information about
the
consumer, including a consumer's residence address or
e-mail address, or any
other information about a consumer that does not relate
to the physical, mental, or
behavioral health or condition of a consumer, including
the existence or value of
any
insurance policy.
(j)
Definitions Relating to Child Support Obligations
(1)The “overdue support” has the meaning given to such
term in section 666(e) of
title 42 [Social Security Act, 42 U.S.C. § 666(e)].
(2)The term “State or local child support enforcement
agency” means a State or local
agency which administers a State or local program for
establishing and enforcing
child support obligations.
(k)Adverse Action
(1)Actions
included. The term “adverse action”
(A) has the same meaning as in section 701(d)(6) of the
Equal Credit
Opportunity Act; and
(B) means
(i) a denial or cancellation of, an increase in
any charge for, or a reduction
or
other adverse or unfavorable change in the terms of
coverage or
amount of, any insurance, existing or applied for, in
connection with
the
underwriting of insurance;
(ii)
a denial of employment or any other decision for
employment purposes
that
adversely affects any current or prospective employee;
(iii) a denial or cancellation of, an increase in any
charge for, or any other
adverse or unfavorable change in the terms of, any
license or benefit
described in section 604(a)(3)(D) [§ 1681b]; and
(iv) an action taken or determination that is
(I)
made in connection with an application that was made by,
or a
transaction that was initiated by, any consumer, or in
connection
with
a review of an account under section
604(a)(3)(F)(ii)[§ 1681b]; and
(II) adverse to the interests of the consumer.
(2)Applicable
findings, decisions, commentary, and orders. For
purposes of any
determination of whether an action is an adverse action
under paragraph (1)(A),
all
appropriate final findings, decisions, commentary, and
orders issued under
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July 30, 2004
section 701(d)(6) of the Equal Credit Opportunity Act by
the Board of Governors
of
the Federal Reserve System or any court shall apply.
(l)
The term “firm offer of credit or insurance” means any
offer of credit or insurance to
a
consumer that will be honored if the consumer is
determined, based on information
in a
consumer report on the consumer, to meet the specific
criteria used to select the
consumer for the offer, except that the offer may be
further conditioned on one or
more
of the following:
(1)The consumer being determined, based on information
in the consumer's
application for the credit or insurance, to meet
specific criteria bearing on credit
worthiness or insurability, as applicable, that are
established
(A)
before selection of the consumer for the offer; and
(B) for the purpose of determining whether to extend
credit or insurance
pursuant to the offer.
(2)
Verification
(A) that the consumer continues to meet the specific
criteria used to select the
consumer for the offer, by using information in a
consumer report on the
consumer, information in the consumer's application for
the credit or
insurance, or other information bearing on the credit
worthiness or
insurability of the consumer; or
(B) of the information in the consumer's application for
the credit or insurance,
to
determine that the consumer meets the specific criteria
bearing on credit
worthiness or insurability.
(3)The consumer furnishing any collateral that is a
requirement for the extension of
the
credit or insurance that was
(A) established before selection of the consumer for the
offer of credit or
insurance; and
(B) disclosed to the consumer in the offer of credit or
insurance.
(m) The term “credit or insurance transaction that is
not initiated by the consumer” does
not
include the use of a consumer report by a person with
which the consumer has an
account or insurance policy, for purposes of
(1)
reviewing the account or insurance policy; or
(2)
collecting the account.
(n)The term “State” means any State, the Commonwealth of
Puerto Rico, the District of
Columbia, and any territory or possession of the United
States.
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July 30, 2004
(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
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July 30, 2004
(ii)
notifies the consumer who is the subject of the
communication, in
writing, of the consumer's right to request the
information described in
clause (i).
(p)The term “consumer reporting agency that compiles and
maintains files on
consumers on a nationwide basis” means a consumer
reporting agency that regularly
engages in the practice of assembling or evaluating, and
maintaining, for the purpose
of
furnishing consumer reports to third parties bearing on
a consumer's credit
worthiness, credit standing, or credit capacity, each of
the following regarding
consumers residing nationwide:
(1)Public record information.
(2)Credit account information from persons who furnish
that information regularly
and
in the ordinary course of business.
(q)
Definitions relating to fraud alerts.
(1)The term “active duty military consumer” means a
consumer in military service
who--
(A)
is on active duty (as defined in section 101(d)(1) of
title 10, United States
Code) or is a reservist performing duty under a call or
order to active duty
under a provision of law referred to in section
101(a)(13) of title 10,
United States Code; and
(B)
is assigned to service away from the usual duty station
of the consumer.
(2)The terms “fraud alert” and “active duty alert” mean
a statement in the file of a
consumer that--
(A)
notifies all prospective users of a consumer report
relating to the consumer
that
the consumer may be a victim of fraud, including
identity theft, or is
an
active duty military consumer, as applicable; and
(B)
is presented in a manner that facilitates a clear and
conspicuous view of
the
statement described in subparagraph (A) by any person
requesting such
consumer report.
(3)The term “identity theft” means a fraud committed
using the identifying
information of another person, subject to such further
definition as the
Commission may prescribe, by regulation.
(4)The term “identity theft report” has the meaning
given that term by rule of the
Commission, and means, at a minimum, a report--
(A)
that alleges an identity theft;
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July 30, 2004
(B)
that is a copy of an official, valid report filed by a
consumer with an
appropriate Federal, State, or local law enforcement
agency, including the
United States Postal Inspection Service, or such other
government agency
deemed appropriate by the Commission; and
(C)
the filing of which subjects the person filing the
report to criminal
penalties relating to the filing of false information
if, in fact, the
information in the report is false.
(5)The term “new credit plan” means a new account under
an open end credit plan
(as
defined in section 103(i) of the Truth in Lending Act)
or a new credit
transaction not under an open end credit plan.
(r)
Credit and Debit Related Terms
(1)
The term “card issuer” means--
(A)
a credit card issuer, in the case of a credit card; and
(B)
a debit card issuer, in the case of a debit card.
(2)The term “credit card” has the same meaning as in
section 103 of the Truth in
Lending Act.
(3)The term “debit card” means any card issued by a
financial institution to a
consumer for use in initiating an electronic fund
transfer from the account of the
consumer at such financial institution, for the purpose
of transferring money
between accounts or obtaining money, property, labor, or
services.
(4)The terms “account” and “electronic fund transfer”
have the same meanings as in
section 903 of the Electronic Fund Transfer Act.
(5)The terms “credit” and “creditor” have the same
meanings as in section 702 of the
Equal Credit Opportunity Act.
(s)
The term “Federal banking agency” has the same meaning
as in section 3 of the
Federal Deposit Insurance Act.
(t)
The term “financial institution” means a State or
National bank, a State or Federal
savings and loan association, a mutual savings bank, a
State or Federal credit union,
or
any other person that, directly or indirectly, holds a
transaction account (as defined
in
section 19(b) of the Federal Reserve Act) belonging to a
consumer.
(u)
The term “reseller” means a consumer reporting agency
that--
(1)assembles and merges information contained in the
database of another consumer
reporting agency or multiple consumer reporting agencies
concerning any
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July 30, 2004
consumer for purposes of furnishing such information to
any third party, to the
extent of such activities; and
(2)does not maintain a database of the assembled or
merged information from which
new
consumer reports are produced.
(v)
The term “Commission” means the Federal Trade
Commission.
(w) The term “nationwide specialty consumer reporting
agency” means a consumer
reporting agency that compiles and maintains files on
consumers on a nationwide
basis relating to--
(1)
medical records or payments;
(2)
residential or tenant history;
(3)
check writing history;
(4)
employment history; or
(5)
insurance claims.
(x)
Exclusion of Certain Communications for Employee
Investigations
(1)
A communication is described in this subsection if--
(A)
but for subsection (d)(2)(D), the communication would be
a consumer
report;
(B)
the communication is made to an employer in connection
with an
investigation of–
(i)
suspected misconduct relating to employment; or
(ii)
compliance with Federal, State, or local laws and
regulations, the rules
of a
self-regulatory organization, or any preexisting written
policies of
the
employer;
(C)
the communication is not made for the purpose of
investigating a
consumer's credit worthiness, credit standing, or credit
capacity; and
(D)
the communication is not provided to any person except--
(i)
to the employer or an agent of the employer;
(ii)
to any Federal or State officer, agency, or department,
or any officer,
agency, or department of a unit of general local
government;
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July 30, 2004
(iii) to any self-regulatory organization with
regulatory authority over the
activities of the employer or employee;
(iv)
as otherwise required by law; or
(v)
pursuant to section 608.
(2)Subsequent
disclosure. After taking any adverse action based
in whole or in part on a
communication described in paragraph (1), the employer
shall disclose to the
consumer a summary containing the nature and substance
of the communication
upon
which the adverse action is based, except that the
sources of information
acquired solely for use in preparing what would be but
for subsection (d)(2)(D) an
investigative consumer report need not be disclosed.
(3)For purposes of this subsection, the term
“self-regulatory organization” includes any
self-regulatory organization (as defined in section
3(a)(26) of the Securities
Exchange Act of 1934), any entity established under
title I of the Sarbanes-Oxley Act
of
2002, any board of trade designated by the Commodity
Futures Trading
Commission, and any futures association registered with
such Commission.
§
604. Permissible purposes of consumer reports
[15 U.S.C. § 1681b]
(a)In
general. Subject to subsection (c), any consumer
reporting agency may furnish a
consumer report under the following circumstances and no
other:
(1)In response to the order of a court having
jurisdiction to issue such an order, or a
subpoena issued in connection with proceedings before a
Federal grand jury.
(2)In accordance with the written instructions of the
consumer to whom it relates.
(3)To a person which it has reason to believe
(A)
intends to use the information in connection with a
credit transaction
involving the consumer on whom the information is to be
furnished and
involving the extension of credit to, or review or
collection of an account
of,
the consumer; or
(B)
intends to use the information for employment purposes;
or
(C)
intends to use the information in connection with the
underwriting of
insurance involving the consumer; or
(D)
intends to use the information in connection with a
determination of the
consumer's eligibility for a license or other benefit
granted by a
governmental instrumentality required by law to consider
an applicant's
financial responsibility or status; or
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July 30, 2004
(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
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July 30, 2004
(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
1
The
references in Sections 604(b)(3)(A) and 604(b)(3)(B)
should be to Section 609(c)(1), not (c)(3) that
no
longer exists as the result of Congress’ re-organization
of Section 609(c) in 2003 (FACT Act).
15
July 30, 2004
(ii) as of the time at which the
person procures the report or causes the
report to be procured the only interaction between the
consumer and
the
person in connection with that employment application
has been by
mail, telephone, computer, or other similar means.
(3) Conditions on use for adverse actions.
(A) In general. Except as
provided in subparagraph (B), in using a consumer
report for employment purposes, before taking any
adverse action based in
whole or in part on the report, the person intending to
take such adverse
action shall provide to the consumer to whom the report
relates--
(i) a copy of the report; and
(ii) a description in writing of the
rights of the consumer under this title, as
prescribed by the Federal Trade Commission under section
609(c)(3).1
(B) Application by mail, telephone,
computer, or other similar means.
(i) If a consumer described in
subparagraph (C) applies for employment
by
mail, telephone, computer, or other similar means, and
if a person
who
has procured a consumer report on the consumer for
employment
purposes takes adverse action on the employment
application based in
whole or in part on the report, then the person must
provide to the
consumer to whom the report relates, in lieu of the
notices required
under subparagraph (A) of this section and under section
615(a),
within 3 business days of taking such action, an oral,
written or
electronic notification--
(I) that adverse action has
been taken based in whole or in part on a
consumer report received from a consumer reporting
agency;
(II) of the name, address and
telephone number of the consumer
reporting agency that furnished the consumer report
(including
a
toll-free telephone number established by the agency if
the
agency compiles and maintains files on consumers on a
nationwide basis);
(III) that the consumer
reporting agency did not make the decision to
take
the adverse action and is unable to provide to the
consumer
the
specific reasons why the adverse action was taken; and
(IV) that the consumer may,
upon providing proper identification, request
a
free copy of a report and may dispute with the consumer
reporting
agency the accuracy or completeness of any information
in a report.
16
July 30, 2004
(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 identifi-
cation, 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 Trans-
portation 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 employ-
ment
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
17
July 30, 2004
(VI) otherwise seriously
jeopardize or unduly delay the investigation
or
another official proceeding.
(B) Notification of consumer upon
conclusion of investigation. Upon the
conclusion of a national security investigation
described in subparagraph
(A),
or upon the determination that the exception under
subparagraph (A)
is
no longer required for the reasons set forth in such
subparagraph, the
official exercising the authority in such subparagraph
shall provide to the
consumer who is the subject of the consumer report with
regard to which
such
finding was made--
(i) a copy of such consumer report
with any classified information
redacted as necessary;
(ii) notice of any adverse action
which is based, in part, on the consumer
report; and
(iii) the identification with
reasonable specificity of the nature of the
investigation for which the consumer report was sought.
(C) Delegation by head of agency or
department. For purposes of
subparagraphs (A) and (B), the head of any agency or
department of the
United States Government may delegate his or her
authorities under this
paragraph to an official of such agency or department
who has personnel
security responsibilities and is a member of the Senior
Executive Service
or
equivalent civilian or military rank.
(D) Report to the Congress. Not
later than January 31 of each year, the head of
each
agency and department of the United States Government
that
exercised authority under this paragraph during the
preceding year shall
submit a report to the Congress on the number of times
the department or
agency exercised such authority during the year.
(E) Definitions. For purposes of
this paragraph, the following definitions shall
apply:
(i) The term “classified
information” means information that is protected
from
unauthorized disclosure under Executive Order No. 12958
or
successor orders.
(ii)
The term “national security investigation” means any
official inquiry
by
an agency or department of the United States Government
to
determine the eligibility of a consumer to receive
access or continued
access to classified information or to determine whether
classified
information has been lost or compromised.
(c)Furnishing reports in connection with credit or
insurance transactions that are not
initiated by the consumer.
18
July 30, 2004
(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
19
July 30, 2004
(B)
by submitting to the agency a signed notice of election
form issued by the
agency for purposes of this subparagraph.
(3)Response
of agency after notification through system. Upon
receipt of notification
of
the election of a consumer under paragraph (1) through
the notification system
maintained by the agency under paragraph (5), a consumer
reporting agency shall
(A)
inform the consumer that the election is effective only
for the 5-year
period following the election if the consumer does not
submit to the
agency a signed notice of election form issued by the
agency for purposes
of
paragraph (2)(B); and
(B)
provide to the consumer a notice of election form, if
requested by the
consumer, not later than 5 business days after receipt
of the notification of
the
election through the system established under paragraph
(5), in the
case
of a request made at the time the consumer provides
notification
through the system.
(4)Effectiveness
of election. An election of a consumer under
paragraph (1)
(A)
shall be effective with respect to a consumer reporting
agency beginning 5
business days after the date on which the consumer
notifies the agency in
accordance with paragraph (2);
(B) shall be effective with respect to a consumer
reporting agency
(i)
subject to subparagraph (C), during the 5-year period
beginning 5
business days after the date on which the consumer
notifies the agency
of
the election, in the case of an election for which a
consumer notifies
the
agency only in accordance with paragraph (2)(A); or
(ii)
until the consumer notifies the agency under
subparagraph (C), in the
case
of an election for which a consumer notifies the agency
in
accordance with paragraph (2)(B);
(C)
shall not be effective after the date on which the
consumer notifies the
agency, through the notification system established by
the agency under
paragraph (5), that the election is no longer effective;
and
(D)
shall be effective with respect to each affiliate of the
agency.
(5)
Notification System
(A)
In general. Each consumer reporting agency that,
under subsection
(c)(1)(B), furnishes a consumer report in connection
with a credit or
insurance transaction that is not initiated by a
consumer, shall
(i)
establish and maintain a notification system, including
a toll-free
telephone number, which permits any consumer whose
consumer
20
July 30, 2004
report is maintained by the agency to notify the agency,
with
appropriate identification, of the consumer's election
to have the
consumer's name and address excluded from any such list
of names
and
addresses provided by the agency for such a transaction;
and
(ii)
publish by not later than 365 days after the date of
enactment of the
Consumer Credit Reporting Reform Act of 1996, and not
less than
annually thereafter, in a publication of general
circulation in the area
served by the agency
(I)
a notification that information in consumer files
maintained by the
agency may be used in connection with such transactions;
and
(II)
the address and toll-free telephone number for consumers
to use to
notify the agency of the consumer's election under
clause (I).
(B)
Establishment and maintenance as compliance.
Establishment and
maintenance of a notification system (including a
toll-free telephone
number) and publication by a consumer reporting agency
on the agency's
own
behalf and on behalf of any of its affiliates in
accordance with this
paragraph is deemed to be compliance with this paragraph
by each of
those affiliates.
(6)Notification
system by agencies that operate nationwide. Each
consumer reporting
agency that compiles and maintains files on consumers on
a nationwide basis
shall establish and maintain a notification system for
purposes of paragraph (5)
jointly with other such consumer reporting agencies.
(f)
Certain use or obtaining of information prohibited.
A person shall not use or obtain a
consumer report for any purpose unless
(1)the consumer report is obtained for a purpose for
which the consumer report is
authorized to be furnished under this section; and
(2)the purpose is certified in accordance with section
607 [§ 1681e] by a prospective
user
of the report through a general or specific
certification.
(g)
Protection of Medical Information
(1)Limitation
on consumer reporting agencies. A consumer
reporting agency shall not
furnish for employment purposes, or in connection with a
credit or insurance
transaction, a consumer report that contains medical
information (other than
medical contact information treated in the manner
required under section
605(a)(6)) about a consumer, unless--
(A)
if furnished in connection with an insurance
transaction, the consumer
affirmatively consents to the furnishing of the report;
21
July 30, 2004
(B)
if furnished for employment purposes or in connection
with a credit
transaction--
(i)
the information to be furnished is relevant to process
or effect the
employment or credit transaction; and
(ii)
the consumer provides specific written consent for the
furnishing of the
report that describes in clear and conspicuous language
the use for
which the information will be furnished; or
(C)
the information to be furnished pertains solely to
transactions, accounts, or
balances relating to debts arising from the receipt of
medical services,
products, or devises, where such information, other than
account status or
amounts, is restricted or reported using codes that do
not identify, or do
not
provide information sufficient to infer, the specific
provider or the
nature of such services, products, or devices, as
provided in section
605(a)(6).
(2)Limitation
on creditors. Except as permitted pursuant to
paragraph (3)(C) or regu-
lations prescribed under paragraph (5)(A), a creditor
shall not obtain or use medi-
cal
information (other than medical contact information
treated in the manner
required under section 605(a)(6)) pertaining to a
consumer in connection with any
determination of the consumer's eligibility, or
continued eligibility, for credit.
(3)Actions
authorized by federal law, insurance activities and
regulatory determina-
tions.
Section 603(d)(3) shall not be construed so as to treat
information or any
communication of information as a consumer report if the
information or
communication is disclosed--
(A)
in connection with the business of insurance or
annuities, including the
activities described in section 18B of the model Privacy
of Consumer
Financial and Health Information Regulation issued by
the National
Association of Insurance Commissioners (as in effect on
January 1, 2003);
(B)
for any purpose permitted without authorization under
the Standards for
Individually Identifiable Health Information promulgated
by the
Department of Health and Human Services pursuant to the
Health
Insurance Portability and Accountability Act of 1996, or
referred to under
section 1179 of such Act, or described in section 502(e)
of Public Law
106-102; or
(C)
as otherwise determined to be necessary and appropriate,
by regulation or
order and subject to paragraph (6), by the Commission,
any Federal
banking agency or the National Credit Union
Administration (with respect
to
any financial institution subject to the jurisdiction of
such agency or
Administration under paragraph (1), (2), or (3) of
section 621(b), or the
applicable State insurance authority (with respect to
any person engaged in
providing insurance or annuities).
2
The
reporting periods have been lengthened for certain
adverse information pertaining to U.S. Govern-
ment
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.
22
July 30, 2004
(4)
Limitation on redisclosure of medical information.
Any person that receives
medical information pursuant to paragraph (1) or (3)
shall not disclose such
information to any other person, except as necessary to
carry out the purpose
for
which the information was initially disclosed, or as
otherwise permitted by
statute, regulation, or order.
(5)
Regulations and Effective Date for Paragraph (2)
(A)
Regulations required. Each Federal banking
agency and the National Credit
Union Administration shall, subject to paragraph (6) and
after notice and
opportunity for comment, prescribe regulations that
permit transactions
under paragraph (2) that are determined to be necessary
and appropriate to
protect legitimate operational, transactional, risk,
consumer, and other needs
(and
which shall include permitting actions necessary for
administrative
verification purposes), consistent with the intent of
paragraph (2) to restrict
the
use of medical information for inappropriate purposes.
(B)
Final regulations required. The Federal banking
agencies and the National
Credit Union Administration shall issue the regulations
required under
subparagraph (A) in final form before the end of the
6-month period
beginning on the date of enactment of the Fair and
Accurate Credit
Transactions Act of 2003.
(6)Coordination
with other laws. No provision of this subsection
shall be construed
as
altering, affecting, or superseding the applicability of
any other provision of
Federal law relating to medical confidentiality.
§
605. Requirements relating to information contained in
consumer reports
[15 U.S.C. §1681c]
(a)Information excluded from consumer reports.
Except as authorized under subsection
(b)
of this section, no consumer reporting agency may make
any consumer report
containing any of the following items of information:
(1)Cases under title 11 [United States Code] or under
the Bankruptcy Act that, from
the
date of entry of the order for relief or the date of
adjudication, as the case may
be,
antedate the report by more than 10 years.
(2)Civil suits, civil judgments, and records of arrest
that from date of entry, antedate
the
report by more than seven years or until the governing
statute of limitations
has
expired, whichever is the longer period.
(3)Paid tax liens which, from date of payment, antedate
the report by more than
seven years.
(4)Accounts placed for collection or charged to profit
and loss which antedate the
report by more than seven years.2
3
This
provision, added in September 1996, should read
“paragraphs (4) and (5)....” Prior
Section 605(a)(6)
was
amended and re-designated as Section 605(a)(5) in
November 1998. The current Section 605(a)(6), added in
December 2003 and now containing no reference to any
7-year period, is obviously inapplicable.
23
July 30, 2004
(5)Any other adverse item of information, other than
records of convictions of
crimes which antedates the report by more than seven
years.2
(6)
The name, address, and telephone number of any medical
information furnisher
that
has notified the agency of its status, unless--
(A)
such name, address, and telephone number are restricted
or reported using
codes that do not identify, or provide information
sufficient to infer, the
specific provider or the nature of such services,
products, or devices to a
person other than the consumer; or
(B)
the report is being provided to an insurance company for
a purpose
relating to engaging in the business of insurance other
than property and
casualty insurance.
(b)Exempted
cases. The provisions of paragraphs (1) through (5)
of subsection (a) of
this
section are not applicable in the case of any consumer
credit report to be used in
connection with
(1)a
credit transaction involving, or which may reasonably be
expected to involve, a
principal amount of $150,000 or more;
(2)the underwriting of life insurance involving, or
which may reasonably be
expected to involve, a face amount of $150,000 or more;
or
(3)the employment of any individual at an annual salary
which equals, or which may
reasonably be expected to equal $75,000, or more.
(c)Running of Reporting Period
(1)In
general. The 7-year period referred to in
paragraphs (4) and (6) 3 of subsection
(a)
shall begin, with respect to any delinquent account that
is placed for collection
(internally or by referral to a third party, whichever
is earlier), charged to profit and
loss, or subjected to any similar action, upon the
expiration of the 180-day period
beginning on the date of the commencement of the
delinquency which immediately
preceded the collection activity, charge to profit and
loss, or similar action.
(2)Effective
date. Paragraph (1) shall apply only to items of
information added to the
file
of a consumer on or after the date that is 455 days
after the date of enactment of
the
Consumer Credit Reporting Reform Act of 1996.
(d)Information Required to be Disclosed
(1)Title
11 information. Any consumer reporting agency that
furnishes a consumer
report that contains information regarding any case
involving the consumer that
arises under title 11, United States Code, shall include
in the report an
24
July 30, 2004
identification of the chapter of such title 11 under
which such case arises if
provided by the source of the information. If any case
arising or filed under title
11,
United States Code, is withdrawn by the consumer before
a final judgment,
the
consumer reporting agency shall include in the report
that such case or filing
was
withdrawn upon receipt of documentation certifying such
withdrawal.
(2)Key
factor in credit score information. Any consumer
reporting agency that fur-
nishes a consumer report that contains any credit score
or any other risk score or
predictor on any consumer shall include in the report a
clear and conspicuous
statement that a key factor (as defined in section
609(f)(2)(B)) that adversely
affected such score or predictor was the number of
enquiries, if such a predictor
was
in fact a key factor that adversely affected such score.
This paragraph shall not
apply to a check services company, acting as such, which
issues authorizations for
the
purpose of approving or processing negotiable
instruments, electronic fund
transfers, or similar methods of payments, but only to
the extent that such
company is engaged in such activities.
(e)Indication
of closure of account by consumer. If a consumer
reporting agency is
notified pursuant to section 623(a)(4) [§ 1681s-2] that
a credit account of a consumer
was
voluntarily closed by the consumer, the agency shall
indicate that fact in any
consumer report that includes information related to the
account.
(f)
Indication of dispute by consumer. If a consumer
reporting agency is notified pursuant
to
section 623(a)(3) [§ 1681s-2] that information regarding
a consumer who was
furnished to the agency is disputed by the consumer, the
agency shall indicate that
fact
in each consumer report that includes the disputed
information.
(g)
Truncation of Credit Card and Debit Card Numbers
(1)In
general. Except as otherwise provided in this
subsection, no person that accepts
credit cards or debit cards for the transaction of
business shall print more than the
last
5 digits of the card number or the expiration date upon
any receipt provided
to
the cardholder at the point of the sale or transaction.
(2)Limitation.
This subsection shall apply only to receipts that are
electronically
printed, and shall not apply to transactions in which
the sole means of recording a
credit card or debit card account number is by
handwriting or by an imprint or
copy
of the card.
(3)
Effective date. This subsection shall become
effective--
(A)
3 years after the date of enactment of this subsection,
with respect to any cash
register or other machine or device that electronically
prints receipts for cred-
it
card or debit card transactions that is in use before
January 1, 2005; and
(B)
1 year after the date of enactment of this subsection,
with respect to any cash
register or other machine or device that electronically
prints receipts for credit
card
or debit card transactions that is first put into use on
or after January 1, 2005.
(h)
Notice of Discrepancy in Address
25
July 30, 2004
(1)In
general. If a person has requested a consumer
report relating to a consumer
from
a consumer reporting agency described in section 603(p),
the request
includes an address for the consumer that substantially
differs from the addresses
in
the file of the consumer, and the agency provides a
consumer report in
response to the request, the consumer reporting agency
shall notify the requester
of
the existence of the discrepancy.
(2)
Regulations
(A)
Regulations required. The Federal banking
agencies, the National Credit
Union Administration, and the Commission shall jointly,
with respect to
the
entities that are subject to their respective
enforcement authority under
section 621, prescribe regulations providing guidance
regarding reasonable
policies and procedures that a user of a consumer report
should employ
when
such user has received a notice of discrepancy under
paragraph (1).
(B)
Policies and procedures to be included. The
regulations prescribed under
subparagraph (A) shall describe reasonable policies and
procedures for use
by a
user of a consumer report--
(i)
to form a reasonable belief that the user knows the
identity of the
person to whom the consumer report pertains; and
(ii)
if the user establishes a continuing relationship with
the consumer, and
the
user regularly and in the ordinary course of business
furnishes
information to the consumer reporting agency from which
the notice of
discrepancy pertaining to the consumer was obtained, to
reconcile the
address of the consumer with the consumer reporting
agency by
furnishing such address to such consumer reporting
agency as part of
information regularly furnished by the user for the
period in which the
relationship is established.
§
605A. Identity theft prevention; fraud alerts and active
duty alerts
[15 U.S.C. §1681c-1]
(a)
One-call Fraud Alerts
(1)Initial
alerts. Upon the direct request of a consumer, or
an individual acting on
behalf of or as a personal representative of a consumer,
who asserts in good faith
a
suspicion that the consumer has been or is about to
become a victim of fraud or
related crime, including identity theft, a consumer
reporting agency described in
section 603(p) that maintains a file on the consumer and
has received appropriate
proof of the identity of the requester shall--
(A)
include a fraud alert in the file of that consumer, and
also provide that alert
along with any credit score generated in using that
file, for a period of not
less
than 90 days, beginning on the date of such request,
unless the
consumer or such representative requests that such fraud
alert be removed
before the end of such period, and the agency has
received appropriate
proof of the identity of the requester for such purpose;
and
26
July 30, 2004
(B)
refer the information regarding the fraud alert under
this paragraph to each
of
the other consumer reporting agencies described in
section 603(p), in
accordance with procedures developed under section
621(f).
(2)Access
to free reports. In any case in which a consumer
reporting agency includes
a
fraud alert in the file of a consumer pursuant to this
subsection, the consumer
reporting agency shall--
(A)
disclose to the consumer that the consumer may request a
free copy of the
file
of the consumer pursuant to section 612(d); and
(B)
provide to the consumer all disclosures required to be
made under section
609,
without charge to the consumer, not later than 3
business days after
any
request described in subparagraph (A).
(b)Extended Alerts
(1)In
general. Upon the direct request of a consumer, or
an individual acting on
behalf of or as a personal representative of a consumer,
who submits an identity
theft report to a consumer reporting agency described in
section 603(p) that
maintains a file on the consumer, if the agency has
received appropriate proof of
the
identity of the requester, the agency shall--
(A)
include a fraud alert in the file of that consumer, and
also provide that alert
along with any credit score generated in using that
file, during the 7-year
period beginning on the date of such request, unless the
consumer or such
representative requests that such fraud alert be removed
before the end of
such
period and the agency has received appropriate proof of
the identity
of
the requester for such purpose;
(B)
during the 5-year period beginning on the date of such
request, exclude the
consumer from any list of consumers prepared by the
consumer reporting
agency and provided to any third party to offer credit
or insurance to the
consumer as part of a transaction that was not initiated
by the consumer,
unless the consumer or such representative requests that
such exclusion be
rescinded before the end of such period; and
(C)
refer the information regarding the extended fraud alert
under this paragraph
to
each of the other consumer reporting agencies described
in section
603(p), in accordance with procedures developed under
section 621(f).
(2)
Access to free reports. In any case in which a
consumer reporting agency includes
a
fraud alert in the file of a consumer pursuant to this
subsection, the consumer
reporting agency shall--
(A)
disclose to the consumer that the consumer may request 2
free copies of
the
file of the consumer pursuant to section 612(d) during
the 12-month
27
July 30, 2004
period beginning on the date on which the fraud alert
was included in the
file; and
(B)
provide to the consumer all disclosures required to be
made under section
609,
without charge to the consumer, not later than 3
business days after
any
request described in subparagraph (A).
(c)Active
duty alerts. Upon the direct request of an active
duty military consumer, or an
individual acting on behalf of or as a personal
representative of an active duty
military consumer, a consumer reporting agency described
in section 603(p) that
maintains a file on the active duty military consumer
and has received appropriate
proof of the identity of the requester shall--
(1)include an active duty alert in the file of that
active duty military consumer, and
also
provide that alert along with any credit score generated
in using that file,
during a period of not less than 12 months, or such
longer period as the
Commission shall determine, by regulation, beginning on
the date of the request,
unless the active duty military consumer or such
representative requests that such
fraud alert be removed before the end of such period,
and the agency has received
appropriate proof of the identity of the requester for
such purpose;
(2)during the 2-year period beginning on the date of
such request, exclude the active
duty
military consumer from any list of consumers prepared by
the consumer
reporting agency and provided to any third party to
offer credit or insurance to the
consumer as part of a transaction that was not initiated
by the consumer, unless
the
consumer requests that such exclusion be rescinded
before the end of such
period; and
(3)refer the information regarding the active duty alert
to each of the other consumer
reporting agencies described in section 603(p), in
accordance with procedures
developed under section 621(f).
(d)Procedures.
Each consumer reporting agency described in section
603(p) shall
establish policies and procedures to comply with this
section, including procedures
that
inform consumers of the availability of initial,
extended, and active duty alerts
and
procedures that allow consumers and active duty military
consumers to request
initial, extended, or active duty alerts (as applicable)
in a simple and easy manner,
including by telephone.
(e)Referrals
of alerts. Each consumer reporting agency described
in section 603(p) that
receives a referral of a fraud alert or active duty
alert from another consumer
reporting agency pursuant to this section shall, as
though the agency received the
request from the consumer directly, follow the
procedures required under--
(1)paragraphs (1)(A) and (2) of subsection (a), in the
case of a referral under
subsection (a)(1)(B);
(2)paragraphs (1)(A), (1)(B), and (2) of subsection (b),
in the case of a referral under
subsection (b)(1)(C); and
28
July 30, 2004
(3)paragraphs (1) and (2) of subsection (c), in the case
of a referral under subsection
(c)(3).
(f)
Duty of reseller to reconvey alert. A reseller
shall include in its report any fraud alert
or
active duty alert placed in the file of a consumer
pursuant to this section by
another consumer reporting agency.
(g)Duty
of other consumer reporting agencies to provide contact
information. If a
consumer contacts any consumer reporting agency that is
not described in section
603(p) to communicate a suspicion that the consumer has
been or is about to become
a
victim of fraud or related crime, including identity
theft, the agency shall provide
information to the consumer on how to contact the
Commission and the consumer
reporting agencies described in section 603(p) to obtain
more detailed information
and
request alerts under this section.
(h)
Limitations on Use of Information for Credit Extensions
(1)
Requirements for initial and active duty alerts-
(A)
Notification. Each initial fraud alert and
active duty alert under this section
shall include information that notifies all prospective
users of a consumer
report on the consumer to which the alert relates that
the consumer does
not
authorize the establishment of any new credit plan or
extension of
credit, other than under an open-end credit plan (as
defined in section
103(i)), in the name of the consumer, or issuance of an
additional card on
an
existing credit account requested by a consumer, or any
increase in
credit limit on an existing credit account requested by
a consumer, except
in
accordance with subparagraph (B).
(B)
Limitation on Users
(i)
In general. No prospective user of a consumer
report that includes an
initial fraud alert or an active duty alert in
accordance with this section
may
establish a new credit plan or extension of credit,
other than under
an
open-end credit plan (as defined in section 103(i)), in
the name of
the
consumer, or issue an additional card on an existing
credit account
requested by a consumer, or grant any increase in credit
limit on an
existing credit account requested by a consumer, unless
the user
utilizes reasonable policies and procedures to form a
reasonable belief
that
the user knows the identity of the person making the
request.
(ii)
Verification. If a consumer requesting the alert
has specified a
telephone number to be used for identity verification
purposes, before
authorizing any new credit plan or extension described
in clause (i) in
the
name of such consumer, a user of such consumer report
shall
contact the consumer using that telephone number or take
reasonable
steps to verify the consumer's identity and confirm that
the application
for
a new credit plan is not the result of identity theft.
29
July 30, 2004
(2)Requirements for Extended Alerts
(A)
Notification. Each extended alert under this
section shall include
information that provides all prospective users of a
consumer report
relating to a consumer with–
(i)
notification that the consumer does not authorize the
establishment of
any
new credit plan or extension of credit described in
clause (i), other
than
under an open-end credit plan (as defined in section
103(i)), in the
name
of the consumer, or issuance of an additional card on an
existing
credit account requested by a consumer, or any increase
in credit limit
on
an existing credit account requested by a consumer,
except in
accordance with subparagraph (B); and
(ii)
a telephone number or other reasonable contact method
designated by
the
consumer.
(B)
Limitation on users. No prospective user of a
consumer report or of a
credit score generated using the information in the file
of a consumer that
includes an extended fraud alert in accordance with this
section may
establish a new credit plan or extension of credit,
other than under an
open-end credit plan (as defined in section 103(i)), in
the name of the
consumer, or issue an additional card on an existing
credit account
requested by a consumer, or any increase in credit limit
on an existing
credit account requested by a consumer, unless the user
contacts the
consumer in person or using the contact method described
in subparagraph
(A)(ii) to confirm that the application for a new credit
plan or increase in
credit limit, or request for an additional card is not
the result of identity
theft.
§
605B. Block of information resulting from identity theft
[15 U.S.C. §1681c-2]
(a)Block.
Except as otherwise provided in this section, a
consumer reporting agency
shall block the reporting of any information in the file
of a consumer that the
consumer identifies as information that resulted from an
alleged identity theft, not
later than 4 business days after the date of receipt by
such agency of--
(1)
appropriate proof of the identity of the consumer;
(2)
a copy of an identity theft report;
(3)
the identification of such information by the consumer;
and
(4)a
statement by the consumer that the information is not
information relating to
any
transaction by the consumer.
(b)Notification.
A consumer reporting agency shall promptly notify
the furnisher of
information identified by the consumer under subsection
(a)--
30
July 30, 2004
(1)
that the information may be a result of identity theft;
(2)
that an identity theft report has been filed;
(3)
that a block has been requested under this section; and
(4)
of the effective dates of the block.
(c)
Authority to Decline or Rescind
(1)In
general. A consumer reporting agency may decline to
block, or may rescind
any
block, of information relating to a consumer under this
section, if the
consumer reporting agency reasonably determines that--
(A)
the information was blocked in error or a block was
requested by the
consumer in error;
(B)
the information was blocked, or a block was requested by
the consumer,
on
the basis of a material misrepresentation of fact by the
consumer
relevant to the request to block; or
(C)
the consumer obtained possession of goods, services, or
money as a result
of
the blocked transaction or transactions.
(2)Notification to consumer. If a block of
information is declined or rescinded under
this
subsection, the affected consumer shall be notified
promptly, in the same
manner as consumers are notified of the reinsertion of
information under section
611(a)(5)(B).
(3)Significance
of block. For purposes of this subsection, if a
consumer reporting
agency rescinds a block, the presence of information in
the file of a consumer
prior to the blocking of such information is not
evidence of whether the consumer
knew
or should have known that the consumer obtained
possession of any goods,
services, or money as a result of the block.
(d)
Exception for Resellers
(1)No
reseller file. This section shall not apply to a
consumer reporting agency, if the
consumer reporting agency--
(A)
is a reseller;
(B)
is not, at the time of the request of the consumer under
subsection (a),
otherwise furnishing or reselling a consumer report
concerning the
information identified by the consumer; and
(C)
informs the consumer, by any means, that the consumer
may report the
identity theft to the Commission to obtain consumer
information regarding
identity theft.
31
July 30, 2004
(2)Reseller
with file. The sole obligation of the consumer
reporting agency under this
section, with regard to any request of a consumer under
this section, shall be to
block the consumer report maintained by the consumer
reporting agency from any
subsequent use, if--
(A)
the consumer, in accordance with the provisions of
subsection (a),
identifies, to a consumer reporting agency, information
in the file of the
consumer that resulted from identity theft; and
(B)
the consumer reporting agency is a reseller of the
identified information.
(3)Notice.
In carrying out its obligation under paragraph (2), the
reseller shall
promptly provide a notice to the consumer of the
decision to block the file. Such
notice shall contain the name, address, and telephone
number of each consumer
reporting agency from which the consumer information was
obtained for resale.
(e)Exception
for verification companies. The provisions of this
section do not apply to a
check services company, acting as such, which issues
authorizations for the purpose
of
approving or processing negotiable instruments,
electronic fund transfers, or
similar methods of payments, except that, beginning 4
business days after receipt of
information described in paragraphs (1) through (3) of
subsection (a), a check
services company shall not report to a national consumer
reporting agency described
in
section 603(p), any information identified in the
subject identity theft report as
resulting from identity theft.
(f)
Access to blocked information by law enforcement
agencies. No provision of this sec-
tion
shall be construed as requiring a consumer reporting
agency to prevent a Federal,
State, or local law enforcement agency from accessing
blocked information in a
consumer file to which the agency could otherwise obtain
access under this title.
§
606. Disclosure of investigative consumer reports
[15 U.S.C. § 1681d]
(a)Disclosure
of fact of preparation. A person may not procure or
cause to be prepared an
investigative consumer report on any consumer unless
(1)it is clearly and accurately disclosed to the
consumer that an investigative
consumer report including information as to his
character, general reputation,
personal characteristics and mode of living, whichever
are applicable, may be
made, and such disclosure
(A)
is made in a writing mailed, or otherwise delivered, to
the consumer, not
later than three days after the date on which the report
was first requested,
and
(B) includes a statement informing the consumer of his
right to request the
additional disclosures provided for under subsection (b)
of this section and
the
written summary of the rights of the consumer prepared
pursuant to
section 609(c) [§ 1681g]; and
32
July 30, 2004
(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 con-
sumer 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 out-
standing 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
33
July 30, 2004
(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 iden-
tify
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 noti-
ces
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
34
July 30, 2004
(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
35
July 30, 2004
his
name, address, former addresses, places of employment,
or former places of
employment, to a governmental agency.
§
609. Disclosures to consumers
[15
U.S.C. § 1681g]
(a)Information
on file; sources; report recipients. Every consumer
reporting agency shall,
upon
request, and subject to 610(a)(1) [§ 1681h], clearly and
accurately disclose to
the
consumer:
(1)All information in the consumer's file at the time
of the request except that--
(A) if the consumer to whom the file relates requests
that the first 5 digits of
the
social security number (or similar identification
number) of the
consumer not be included in the disclosure and the
consumer reporting
agency has received appropriate proof of the identity of
the requester, the
consumer reporting agency shall so truncate such number
in such
disclosure; and
(B) nothing in this paragraph shall be construed to
require a consumer
reporting agency to disclose to a consumer any
information concerning
credit scores or any other risk scores or predictors
relating to the
consumer.
(2)The sources of the information; except that the
sources of information acquired
solely for use in preparing an investigative consumer
report and actually use for
no
other purpose need not be disclosed: Provided, That in
the event an action is
brought under this title, such sources shall be
available to the plaintiff under
appropriate discovery procedures in the court in which
the action is brought.
(3)(A) Identification of each person (including each
end-user identified under
section 607(e)(1) [§ 1681e]) that procured a consumer
report
(i)
for employment purposes, during the 2-year period
preceding the date
on
which the request is made; or
(ii)
for any other purpose, during the 1-year period
preceding the date on
which the request is made.
(B)
An identification of a person under subparagraph (A)
shall include
(i) the name of the person or, if applicable, the trade
name (written in full)
under which such person conducts business; and
(ii) upon request of the consumer, the address and
telephone number of the
person.
(C)
Subparagraph (A) does not apply if--
(i) the end user is an agency or department of the
United States
Government that procures the report from the person for
purposes of
36
July 30, 2004
determining the eligibility of the consumer to whom the
report relates
to
receive access or continued access to classified
information (as
defined in section 604(b)(4)(E)(i)); and
(ii) the head of the agency or department makes a
written finding as
prescribed under section 604(b)(4)(A).
(4)The dates, original payees, and amounts of any checks
upon which is based any
adverse characterization of the consumer, included in
the file at the time of the
disclosure.
(5)A
record of all inquiries received by the agency during
the 1-year period
preceding the request that identified the consumer in
connection with a credit or
insurance transaction that was not initiated by the
consumer.
(6)If the consumer requests the credit file and not the
credit score, a statement that the
consumer may request and obtain a credit score.
(b)Exempt
information. The requirements of subsection (a) of
this section respecting the
disclosure of sources of information and the recipients
of consumer reports do not
apply to information received or consumer reports
furnished prior to the effective
date
of this title except to the extent that the matter
involved is contained in the files
of
the consumer reporting agency on that date.
(c)Summary of Rights to Obtain and Dispute Information
in Consumer Reports and to
Obtain Credit Scores
(1)
Commission Summary of Rights Required
(A) In general. The Commission shall prepare a
model summary of the rights
of
consumers under this title.
(B)
Content of summary. The summary of rights
prepared under subparagraph
(A)
shall include a description of–
(i)
the right of a consumer to obtain a copy of a consumer
report under
subsection (a) from each consumer reporting agency;
(ii)
the frequency and circumstances under which a consumer
is entitled to
receive a consumer report without charge under section
612;
(iii) the right of a consumer to dispute information in
the file of the
consumer under section 611;
(iv)
the right of a consumer to obtain a credit score from a
consumer
reporting agency, and a description of how to obtain a
credit score;
(v)
the method by which a consumer can contact, and obtain a
consumer
report from, a consumer reporting agency without charge,
as provided
in
the regulations of the Commission prescribed under
section 211(c)
of
the Fair and Accurate Credit Transactions Act of 2003;
and
37
July 30, 2004
(vi)
the method by which a consumer can contact, and obtain a
consumer
report from, a consumer reporting agency described in
section 603(w),
as
provided in the regulations of the Commission prescribed
under
section 612(a)(1)(C).
(C)
Availability of summary of rights. The
Commission shall--
(i)
actively publicize the availability of the summary of
rights prepared
under this paragraph;
(ii)
conspicuously post on its Internet website the
availability of such
summary of rights; and
(iii) promptly make such summary of rights available to
consumers, on request.
(2)Summary
of rights required to be included with agency
disclosures. A consumer
reporting agency shall provide to a consumer, with each
written disclosure by the
agency to the consumer under this section--
(A)
the summary of rights prepared by the Commission under
paragraph (1);
(B)
in the case of a consumer reporting agency described in
section 603(p), a
toll-free telephone number established by the agency, at
which personnel
are
accessible to consumers during normal business hours;
(C) a list of all Federal agencies responsible for
enforcing any provision of this
title, and the address and any appropriate phone number
of each such agency,
in a
form that will assist the consumer in selecting the
appropriate agency;
(D) a statement that the consumer may have additional
rights under State law,
and
that the consumer may wish to contact a State or local
consumer
protection agency or a State attorney general (or the
equivalent thereof) to
learn of those rights; and
(E) a statement that a consumer reporting agency is not
required to remove
accurate derogatory information from the file of a
consumer, unless the
information is outdated under section 605 or cannot be
verified.
(d)
Summary of Rights of Identity Theft Victims
(1)In
general. The Commission, in consultation with the
Federal banking agencies and
the
National Credit Union Administration, shall prepare a
model summary of the
rights of consumers under this title with respect to the
procedures for remedying the
effects of fraud or identity theft involving credit, an
electronic fund transfer, or an
account or transaction at or with a financial
institution or other creditor.
(2)Summary
of rights and contact information. Beginning 60
days after the date on
which the model summary of rights is prescribed in final
form by the Commission
pursuant to paragraph (1), if any consumer contacts a
consumer reporting agency
and
expresses a belief that the consumer is a victim of
fraud or identity theft
38
July 30, 2004
involving credit, an electronic fund transfer, or an
account or transaction at or
with
a financial institution or other creditor, the consumer
reporting agency shall,
in
addition to any other action that the agency may take,
provide the consumer
with
a summary of rights that contains all of the information
required by the
Commission under paragraph (1), and information on how
to contact the
Commission to obtain more detailed information.
(e)
Information Available to Victims
(1)In
general. For the purpose of documenting fraudulent
transactions resulting from
identity theft, not later than 30 days after the date of
receipt of a request from a
victim in accordance with paragraph (3), and subject to
verification of the identity of
the
victim and the claim of identity theft in accordance
with paragraph (2), a busi-
ness
entity that has provided credit to, provided for
consideration products, goods, or
services to, accepted payment from, or otherwise entered
into a commercial
transaction for consideration with, a person who has
allegedly made unauthorized
use
of the means of identification of the victim, shall
provide a copy of application
and
business transaction records in the control of the
business entity, whether
maintained by the business entity or by another person
on behalf of the business
entity, evidencing any transaction alleged to be a
result of identity theft to--
(A)
the victim;
(B)
any Federal, State, or local government law enforcement
agency or officer
specified by the victim in such a request; or
(C)
any law enforcement agency investigating the identity
theft and authorized
by
the victim to take receipt of records provided under
this subsection.
(2)Verification
of identity and claim. Before a business entity
provides any informa-
tion
under paragraph (1), unless the business entity, at its
discretion, otherwise
has
a high degree of confidence that it knows the identity
of the victim making a
request under paragraph (1), the victim shall provide to
the business entity--
(A)
as proof of positive identification of the victim, at
the election of the
business entity–
(i)
the presentation of a government-issued identification
card;
(ii)
personally identifying information of the same type as
was provided to
the
business entity by the unauthorized person; or
(iii) personally identifying information that the
business entity typically
requests from new applicants or for new transactions, at
the time of the
victim's request for information, including any
documentation
described in clauses (i) and (ii); and
(B)
as proof of a claim of identity theft, at the election
of the business entity--
(i)
a copy of a police report evidencing the claim of the
victim of identity
theft; and
39
July 30, 2004
(ii)
a properly completed--
(I)
copy of a standardized affidavit of identity theft
developed and
made
available by the Commission; or
(II) an affidavit of fact that is acceptable to the
business entity for that
purpose.
(3)
Procedures. The request of a victim under
paragraph (1) shall--
(A)
be in writing;
(B)
be mailed to an address specified by the business
entity, if any; and
(C) if asked by the business entity, include relevant
information about any
transaction alleged to be a result of identity theft to
facilitate compliance
with
this section including–
(i)
if known by the victim (or if readily obtainable by the
victim), the date
of
the application or transaction; and
(ii)
if known by the victim (or if readily obtainable by the
victim), any
other identifying information such as an account or
transaction
number.
(4)No
charge to victim. Information required to be
provided under paragraph (1)
shall be so provided without charge.
(5)Authority
to decline to provide information. A business
entity may decline to
provide information under paragraph (1) if, in the
exercise of good faith, the
business entity determines that--
(A)
this subsection does not require disclosure of the
information;
(B)
after reviewing the information provided pursuant to
paragraph (2), the
business entity does not have a high degree of
confidence in knowing the
true
identity of the individual requesting the information;
(C)
the request for the information is based on a
misrepresentation of fact by
the
individual requesting the information relevant to the
request for
information; or
(D)
the information requested is Internet navigational data
or similar
information about a person's visit to a website or
online service.
(6)Limitation
on liability. Except as provided in section 621,
sections 616 and 617 do
not
apply to any violation of this subsection.
40
July 30, 2004
(7)Limitation
on civil liability. No business entity may be held
civilly liable under
any
provision of Federal, State, or other law for
disclosure, made in good faith
pursuant to this subsection.
(8)No
new recordkeeping obligation. Nothing in this
subsection creates an obligation
on
the part of a business entity to obtain, retain, or
maintain information or
records that are not otherwise required to be obtained,
retained, or maintained in
the
ordinary course of its business or under other
applicable law.
(9)
Rule of Construction
(A)
In general. No provision of subtitle A of title
V of Public Law 106-102,
prohibiting the disclosure of financial information by a
business entity to
third parties shall be used to deny disclosure of
information to the victim
under this subsection.
(B)
Limitation. Except as provided in subparagraph
(A), nothing in this
subsection permits a business entity to disclose
information, including
information to law enforcement under subparagraphs (B)
and (C) of
paragraph (1), that the business entity is otherwise
prohibited from
disclosing under any other applicable provision of
Federal or State law.
(10) Affirmative defense. In any civil action
brought to enforce this subsection, it is an
affirmative defense (which the defendant must establish
by a preponderance of
the
evidence) for a business entity to file an affidavit or
answer stating that--
(A) the business entity has made a reasonably diligent
search of its available
business records; and
(B) the records requested under this subsection do not
exist or are not
reasonably available.
(11) Definition of victim. For purposes of this
subsection, the term “victim” means a
consumer whose means of identification or financial
information has been used or
transferred (or has been alleged to have been used or
transferred) without the
authority of that consumer, with the intent to commit,
or to aid or abet, an identity
theft or a similar crime.
(12) Effective date. This subsection shall become
effective 180 days after the date of
enactment of this subsection.
(13) Effectiveness study. Not later than 18
months after the date of enactment of this
subsection, the Comptroller General of the United States
shall submit a report to
Congress assessing the effectiveness of this provision.
(f)
Disclosure of Credit Scores
(1)In
general. Upon the request of a consumer for a
credit score, a consumer
reporting agency shall supply to the consumer a
statement indicating that the
41
July 30, 2004
information and credit scoring model may be different
than the credit score that
may
be used by the lender, and a notice which shall
include--
(A)
the current credit score of the consumer or the most
recent credit score of
the
consumer that was previously calculated by the credit
reporting agency
for
a purpose related to the extension of credit;
(B)
the range of possible credit scores under the model
used;
(C)
all of the key factors that adversely affected the
credit score of the
consumer in the model used, the total number of which
shall not exceed 4,
subject to paragraph (9);
(D)
the date on which the credit score was created; and
(E)
the name of the person or entity that provided the
credit score or credit file
upon
which the credit score was created.
(2)Definitions.
For purposes of this subsection, the following
definitions shall apply:
(A)
The term “credit score” --
(i)
means a numerical value or a categorization derived from
a statistical
tool
or modeling system used by a person who makes or
arranges a loan
to
predict the likelihood of certain credit behaviors,
including default
(and
the numerical value or the categorization derived from
such analy-
sis
may also be referred to as a “risk predictor” or “risk
score”); and
(ii)
does not include--
(I)
any mortgage score or rating of an automated
underwriting system
that
considers one or more factors in addition to credit
information,
including the loan to value ratio, the amount of down
payment, or the
financial assets of a consumer; or
(II)
any other elements of the underwriting process or
underwriting decision.
(B)
The term “key factors” means all relevant elements or
reasons adversely
affecting the credit score for the particular
individual, listed in the order of
their importance based on their effect on the credit
score.
(3)Timeframe
and manner of disclosure. The information required
by this subsection
shall be provided in the same timeframe and manner as
the information described
in
subsection (a).
(4)Applicability
to certain uses. This subsection shall not be
construed so as to
compel a consumer reporting agency to develop or
disclose a score if the agency
does
not--
42
July 30, 2004
(A) distribute scores that are used in connection
with residential real property
loans; or
(B) develop scores that assist credit providers in
understanding the general
credit behavior of a consumer and predicting the future
credit behavior of
the
consumer.
(5)
Applicability to credit scores developed by another
person.
(A) In general. This subsection shall not be
construed to require a consumer
reporting agency that distributes credit scores
developed by another person
or
entity to provide a further explanation of them, or to
process a dispute
arising pursuant to section 611, except that the
consumer reporting agency
shall provide the consumer with the name and address and
website for
contacting the person or entity who developed the score
or developed the
methodology of the score.
(B) Exception. This paragraph shall not apply to
a consumer reporting agency
that
develops or modifies scores that are developed by
another person or
entity.
(6)Maintenance
of credit scores not required. This subsection
shall not be construed
to
require a consumer reporting agency to maintain credit
scores in its files.
(7)Compliance
in certain cases. In complying with this
subsection, a consumer
reporting agency shall--
(A) supply the consumer with a credit score that is
derived from a credit
scoring model that is widely distributed to users by
that consumer
reporting agency in connection with residential real
property loans or with
a
credit score that assists the consumer in understanding
the credit scoring
assessment of the credit behavior of the consumer and
predictions about
the
future credit behavior of the consumer; and
(B) a statement indicating that the information and
credit scoring model may
be
different than that used by the lender.
(8)Fair
and reasonable fee. A consumer reporting agency may
charge a fair and
reasonable fee, as determined by the Commission, for
providing the information
required under this subsection.
(9)Use
of enquiries as a key factor. If a key factor that
adversely affects the credit
score of a consumer consists of the number of enquiries
made with respect to a
consumer report, that factor shall be included in the
disclosure pursuant to
paragraph (1)(C) without regard to the numerical
limitation in such paragraph.
(g)
Disclosure of Credit Scores by Certain Mortgage Lenders
43
July 30, 2004
(1)In
general. Any person who makes or arranges loans and
who uses a consumer
credit score, as defined in subsection (f), in
connection with an application
initiated or sought by a consumer for a closed end loan
or the establishment of an
open
end loan for a consumer purpose that is secured by 1 to
4 units of residential
real
property (hereafter in this subsection referred to as
the “lender”) shall provide
the
following to the consumer as soon as reasonably
practicable:
(A)
Information Required under Subsection (f)
(i)
In general. A copy of the information identified
in subsection (f) that
was
obtained from a consumer reporting agency or was
developed and
used
by the user of the information.
(ii)
Notice under subparagraph (D). In addition to
the information provided
to
it by a third party that provided the credit score or
scores, a lender is
only
required to provide the notice contained in subparagraph
(D).
(B)
Disclosures in Case of Automated Underwriting System
(i)
In general. If a person that is subject to this
subsection uses an auto-
mated underwriting system to underwrite a loan, that
person may
satisfy the obligation to provide a credit score by
disclosing a credit
score and associated key factors supplied by a consumer
reporting
agency.
(ii) Numerical credit score. However, if a
numerical credit score is
generated by an automated underwriting system used by an
enterprise,
and
that score is disclosed to the person, the score shall
be disclosed to
the
consumer consistent with subparagraph (C).
(iii) Enterprise defined. For purposes of this
subparagraph, the term “enter-
prise” has the same meaning as in paragraph (6) of
section 1303 of the
Federal Housing Enterprises Financial Safety and
Soundness Act of
1992.
(C)
Disclosures of credit scores not obtained from a
consumer reporting agency.
A
person that is subject to the provisions of this
subsection and that uses a
credit score, other than a credit score provided by a
consumer reporting
agency, may satisfy the obligation to provide a credit
score by disclosing a
credit score and associated key factors supplied by a
consumer reporting
agency.
(D)
Notice to home loan applicants. A copy of the
following notice, which shall
include the name, address, and telephone number of each
consumer
reporting agency providing a credit score that was used:
“Notice To The Home Loan Applicant
44
July 30, 2004
“In
connection with your application for a home loan, the
lender must disclose to you the
score that a consumer reporting agency distributed to
users and the lender used in connection
with
your home loan, and the key factors affecting your
credit scores.
“The
credit score is a computer generated summary calculated
at the time of the request
and
based on information that a consumer reporting agency or
lender has on file. The scores
are
based on data about your credit history and payment
patterns. Credit scores are important
because they are used to assist the lender in
determining whether you will obtain a loan. They
may
also be used to determine what interest rate you may be
offered on the mortgage. Credit
scores can change over time, depending on your conduct,
how your credit history and
payment patterns change, and how credit scoring
technologies change.
“Because the score is based on information in your
credit history, it is very important that
you
review the credit-related information that is being
furnished to make sure it is accurate.
Credit records may vary from one company to another.
“If
you have questions about your credit score or the credit
information that is furnished to
you,
contact the consumer reporting agency at the address and
telephone number provided
with
this notice, or contact the lender, if the lender
developed or generated the credit score.
The
consumer reporting agency plays no part in the decision
to take any action on the loan
application and is unable to provide you with specific
reasons for the decision on a loan
application.
“If
you have questions concerning the terms of the loan,
contact the lender.”
(E)
Actions not required under this subsection. This
subsection shall not require
any
person to–
(i)
explain the information provided pursuant to subsection
(f);
(ii)
disclose any information other than a credit score or
key factors, as
defined in subsection (f);
(iii) disclose any credit score or related information
obtained by the user
after a loan has closed;
(iv)
provide more than 1 disclosure per loan transaction; or
(v)
provide the disclosure required by this subsection when
another person
has
made the disclosure to the consumer for that loan
transaction.
(F)
No Obligation for Content
(i)
In general. The obligation of any person
pursuant to this subsection
shall be limited solely to providing a copy of the
information that was
received from the consumer reporting agency.
(ii)
Limit on liability. No person has liability
under this subsection for the
content of that information or for the omission of any
information
within the report provided by the consumer reporting
agency.
45
July 30, 2004
(G)
Person defined as excluding enterprise. As used
in this subsection, the term
“person” does not include an enterprise (as defined in
paragraph (6) of section
1303
of the Federal Housing Enterprises Financial Safety and
Soundness Act
of
1992).
(2)
Prohibition on Disclosure Clauses Null and Void
(A)
In general. Any provision in a contract that
prohibits the disclosure of a credit
score by a person who makes or arranges loans or a
consumer reporting agency
is
void.
(B)
No liability for disclosure under this subsection-
A lender shall not have liability
under any contractual provision for disclosure of a
credit score pursuant to this
subsection.
§
610. Conditions and form of disclosure to consumers
[15
U.S.C. § 1681h]
(a)In
General
(1) Proper identification. A consumer reporting
agency shall require, as a
condition of making the disclosures required under
section 609 [§ 1681g], that
the
consumer furnish proper identification.
(2) Disclosure in writing. Except as provided in
subsection (b), the disclosures
required to be made under section 609 [§ 1681g] shall be
provided under that
section in writing.
(b)Other Forms of Disclosure
(1)In general. If authorized by a consumer, a
consumer reporting agency may make
the
disclosures required under 609 [§ 1681g]
(A)
other than in writing; and
(B)
in such form as may be
(i)
specified by the consumer in accordance with paragraph
(2); and
(ii)
available from the agency.
(2)Form. A consumer may specify pursuant to
paragraph (1) that disclosures under
section 609 [§ 1681g] shall be made
(A) in person, upon the appearance of the consumer at
the place of business of
the
consumer reporting agency where disclosures are
regularly provided,
during normal business hours, and on reasonable notice;
(B) by telephone, if the consumer has made a written
request for disclosure by
telephone;
46
July 30, 2004
(C) by electronic means, if available from
the agency; or
(D) by any other reasonable means that is
available from the agency.
(c)Trained
personnel. Any consumer reporting agency shall
provide trained personnel to
explain to the consumer any information furnished to him
pursuant to section 609
[§
1681g] of this title.
(d)Persons accompanying consumer. The consumer
shall be permitted to be accompanied
by
one other person of his choosing, who shall furnish
reasonable identification. A
consumer reporting agency may require the consumer to
furnish a written statement
granting permission to the consumer reporting agency to
discuss the consumer's file in
such
person's presence.
(e)Limitation of liability. Except as provided in
sections 616 and 617 [§§ 1681n and
1681o] of this title, no consumer may bring any action
or proceeding in the nature of
defamation, invasion of privacy, or negligence with
respect to the reporting of
information against any consumer reporting agency, any
user of information, or any
person who furnishes information to a consumer reporting
agency, based on
information disclosed pursuant to section 609, 610, or
615 [§§ 1681g, 1681h, or
1681m] of this title or based on information disclosed
by a user of a consumer report
to
or for a consumer against whom the user has taken
adverse action, based in whole
or
in part on the report, except as to false information
furnished with malice or willful
intent to injure such consumer.
§
611. Procedure in case of disputed accuracy
[15 U.S.C. § 1681i]
(a)Reinvestigations of Disputed Information
(1)Reinvestigation Required
(A) In general. Subject to subsection (f), if
the completeness or accuracy of any
item
of information contained in a consumer's file at a
consumer reporting
agency is disputed by the consumer and the consumer
notifies the agency
directly, or indirectly through a reseller, of such
dispute, the agency shall,
free
of charge, conduct a reasonable reinvestigation to
determine whether
the
disputed information is inaccurate and record the
current status of the
disputed information, or delete the item from the file
in accordance with
paragraph (5), before the end of the 30-day period
beginning on the date on
which the agency receives the notice of the dispute from
the consumer or
reseller.
(B) Extension of period to reinvestigate. Except
as provided in subparagraph
(C),
the 30-day period described in subparagraph (A) may be
extended for
not
more than 15 additional days if the consumer reporting
agency receives
information from the consumer during that 30-day period
that is relevant to
the
reinvestigation.
(C) Limitations on extension of period to
reinvestigate. Subparagraph (B) shall
not
apply to any reinvestigation in which, during the 30-day
period
47
July 30, 2004
described in subparagraph (A), the information that is
the subject of the
reinvestigation is found to be inaccurate or incomplete
or the consumer
reporting agency determines that the information cannot
be verified.
(2)Prompt Notice of Dispute to Furnisher of Information
(A) In general. Before the expiration of
the 5-business-day period beginning on
the
date on which a consumer reporting agency receives
notice of a dispute
from
any consumer or a reseller in accordance with paragraph
(1), the
agency shall provide notification of the dispute to any
person who provided
any
item of information in dispute, at the address and in
the manner
established with the person. The notice shall include
all relevant
information regarding the dispute that the agency has
received from the
consumer or reseller.
(B) Provision of other information. The
consumer reporting agency shall
promptly provide to the person who provided the
information in dispute all
relevant information regarding the dispute that is
received by the agency
from
the consumer or the reseller after the period referred
to in subpara-
graph (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.
48
July 30, 2004
(5) Treatment of Inaccurate or Unverifiable
Information
(A) In general. If, after any reinvestigation
under paragraph (1) of any
information disputed by a consumer, an item of the
information is found to
be
inaccurate or incomplete or cannot be verified, the
consumer reporting
agency shall–
(i)
promptly delete that item of information from the file
of the consumer,
or
modify that item of information, as appropriate, based
on the results
of
the reinvestigation; and
(ii)
promptly notify the furnisher of that information that
the information
has
been modified or deleted from the file of the consumer.
(B) Requirements Relating to Reinsertion of
Previously Deleted Material
(i) Certification of accuracy of information.
If any information is deleted
from
a consumer's file pursuant to subparagraph (A), the
information
may
not be reinserted in the file by the consumer reporting
agency
unless the person who furnishes the information
certifies that the
information is complete and accurate.
(ii) Notice to consumer. If any information
that has been deleted from a
consumer's file pursuant to subparagraph (A) is
reinserted in the file, the
consumer reporting agency shall notify the consumer of
the reinsertion
in
writing not later than 5 business days after the
reinsertion or, if
authorized by the consumer for that purpose, by any
other means
available to the agency.
(iii) Additional information. As part of, or in
addition to, the notice under
clause (ii), a consumer reporting agency shall provide
to a consumer in
writing not later than 5 business days after the date of
the reinsertion
(I) a statement that the disputed information has been
reinserted;
(II) the business name and address of any furnisher of
information
contacted and the telephone number of such furnisher, if
reasonably
available, or of any furnisher of information that
contacted the
consumer reporting agency, in connection with the
reinsertion of
such
information; and
(III) a notice that the consumer has the right to add a
statement to the
consumer's file disputing the accuracy or completeness
of the
disputed information.
(C)
Procedures to prevent reappearance. A consumer
reporting agency shall
maintain reasonable procedures designed to prevent the
reappearance in a
consumer's file, and in consumer reports on the
consumer, of information
that
is deleted pursuant to this paragraph (other than
information that is
reinserted in accordance with subparagraph (B)(i)).
49
July 30, 2004
(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
50
July 30, 2004
(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 confirma-
tion
and consumer report provided in accordance with
subparagraph (C), a
statement of the consumer's right to request under
subsection (d) that the
agency furnish notifications under that subsection; and
(C) provides written confirmation of the
deletion and a copy of a consumer
report on the consumer that is based on the consumer's
file after the
deletion, not later than 5 business days after making
the deletion.
(b)Statement
of dispute. If the reinvestigation does not resolve
the dispute, the consumer
may
file a brief statement setting forth the nature of the
dispute. The consumer
reporting agency may limit such statements to not more
than one hundred words if it
provides the consumer with assistance in writing a clear
summary of the dispute.
(c)Notification
of consumer dispute in subsequent consumer reports.
Whenever a statement
of a
dispute is filed, unless there is reasonable grounds to
believe that it is frivolous or
irrelevant, the consumer reporting agency shall, in any
subsequent report containing
the
information in question, clearly note that it is
disputed by the consumer and
provide either the consumer's statement or a clear and
accurate codification or
summary thereof.
(d)Notification
of deletion of disputed information. Following any
deletion of information
which is found to be inaccurate or whose accuracy can no
longer be verified or any
notation as to disputed information, the consumer
reporting agency shall, at the
request of the consumer, furnish notification that the
item has been deleted or the
statement, codification or summary pursuant to
subsection (b) or (c) of this section to
any
person specifically designated by the consumer who has
within two years prior
thereto received a consumer report for employment
purposes, or within six months
prior thereto received a consumer report for any other
purpose, which contained the
deleted or disputed information.
(e)
Treatment of Complaints and Report to Congress
(1)
In general. The Commission shall--
(A)
compile all complaints that it receives that a file of a
consumer that is
maintained by a consumer reporting agency described in
section 603(p)
contains incomplete or inaccurate information, with
respect to which, the
consumer appears to have disputed the completeness or
accuracy with the
consumer reporting agency or otherwise utilized the
procedures provided
by
subsection (a); and
(B)
transmit each such complaint to each consumer reporting
agency involved.
(2)Exclusion.
Complaints received or obtained by the Commission
pursuant to its
investigative authority under the Federal Trade
Commission Act shall not be
subject to paragraph (1).
51
July 30, 2004
(3)Agency
responsibilities. Each consumer reporting agency
described in section
603(p) that receives a complaint transmitted by the
Commission pursuant to
paragraph (1) shall--
(A)
review each such complaint to determine whether all
legal obligations
imposed on the consumer reporting agency under this
title (including any
obligation imposed by an applicable court or
administrative order) have
been
met with respect to the subject matter of the complaint;
(B)
provide reports on a regular basis to the Commission
regarding the
determinations of and actions taken by the consumer
reporting agency, if
any,
in connection with its review of such complaints; and
(C)
maintain, for a reasonable time period, records
regarding the disposition of
each
such complaint that is sufficient to demonstrate
compliance with this
subsection.
(4)Rulemaking
authority. The Commission may prescribe
regulations, as appropriate
to
implement this subsection.
(5)Annual
report. The Commission shall submit to the
Committee on Banking,
Housing, and Urban Affairs of the Senate and the
Committee on Financial
Services of the House of Representatives an annual
report regarding information
gathered by the Commission under this subsection.'.
(f)
Reinvestigation Requirement Applicable to Resellers
(1)Exemption
from general reinvestigation requirement. Except as
provided in para-
graph (2), a reseller shall be exempt from the
requirements of this section.
(2)Action
required upon receiving notice of a dispute. If a
reseller receives a notice
from
a consumer of a dispute concerning the completeness or
accuracy of any item
of
information contained in a consumer report on such
consumer produced by the
reseller, the reseller shall, within 5 business days of
receiving the notice, and free
of
charge–
(A)
determine whether the item of information is incomplete
or inaccurate as a
result of an act or omission of the reseller; and
(B)
if (i) the reseller determines that the item of
information is incomplete or
inaccurate as a result of an act or omission of the
reseller, not later than 20
days
after receiving the notice, correct the information in
the consumer
report or delete it; or
(ii)
if the reseller determines that the item of information
is not incomplete or
inaccurate as a result of an act or omission of the
reseller, convey the notice of
the
dispute, together with all relevant information provided
by the consumer, to
each
consumer reporting agency that provided the reseller
with the information
that
is the subject of the dispute, using an address or a
notification mechanism
specified by the consumer reporting agency for such
notices.
52
July 30, 2004
(3)Responsibility
of consumer reporting agency to notify consumer through
reseller. Upon the
completion of a reinvestigation under this section of a
dispute concerning the complete-
ness
or accuracy of any information in the file of a consumer
by a consumer reporting
agency that received notice of the dispute from a
reseller under paragraph (2)--
(A)
the notice by the consumer reporting agency under
paragraph (6), (7), or (8) of
subsection (a) shall be provided to the reseller in lieu
of the consumer; and
(B)
the reseller shall immediately reconvey such notice to
the consumer, including any
notice of a deletion by telephone in the manner required
under paragraph (8)(A).
(4)Reseller
reinvestigations. No provision of this subsection
shall be construed as prohibiting
a
reseller from conducting a reinvestigation of a consumer
dispute directly.
§
612. Charges for certain disclosures
[15
U.S.C. § 1681j] See also 16 CFR Part 610
69
Fed. Reg. 35467 (06/24/04)
(a)
Free Annual Disclosure
(1)
Nationwide Consumer Reporting Agencies
(A)
In general. All consumer reporting agencies
described in subsections (p) and
(w)
of section 603 shall make all disclosures pursuant to
section 609 once
during any 12-month period upon request of the consumer
and without charge
to
the consumer.
(B)
Centralized source. Subparagraph (A) shall apply
with respect to a consumer
reporting agency described in section 603(p) only if the
request from the
consumer is made using the centralized source
established for such purpose in
accordance with section 211(c) of the Fair and Accurate
Credit Transactions
Act
of 2003.
(C)
Nationwide Specialty Consumer Reporting Agency
(i)
In general. The Commission shall prescribe
regulations applicable to each
consumer reporting agency described in section 603(w) to
require the estab-
lishment of a streamlined process for consumers to
request consumer reports
under subparagraph (A), which shall include, at a
minimum, the establish-
ment
by each such agency of a toll-free telephone number for
such requests.
(ii)
Considerations. In prescribing regulations under
clause (i), the
Commission shall consider–
(I)
the significant demands that may be placed on consumer
reporting
agencies in providing such consumer reports;
(II) appropriate means to ensure that consumer reporting
agencies can
satisfactorily meet those demands, including the
efficacy of a
system of staggering the availability to consumers of
such
consumer reports; and
53
July 30, 2004
(III) the ease by which consumers should be able to
contact consumer
reporting agencies with respect to access to such
consumer reports.
(iii) Date of issuance. The Commission shall
issue the regulations required
by
this subparagraph in final form not later than 6 months
after the date
of
enactment of the Fair and Accurate Credit Transactions
Act of 2003.
(iv)
Consideration of ability to comply. The
regulations of the Commission
under this subparagraph shall establish an effective
date by which each
nationwide specialty consumer reporting agency (as
defined in section
603(w)) shall be required to comply with subsection (a),
which
effective date--
(I)
shall be established after consideration of the ability
of each
nationwide specialty consumer reporting agency to comply
with
subsection (a); and
(II) shall be not later than 6 months after the date on
which such
regulations are issued in final form (or such additional
period not to
exceed 3 months, as the Commission determines
appropriate).
(2)Timing.
A consumer reporting agency shall provide a consumer
report under
paragraph (1) not later than 15 days after the date on
which the request is received
under paragraph (1).
(3)Reinvestigations.
Notwithstanding the time periods specified in section
611(a)(1),
a
reinvestigation under that section by a consumer
reporting agency upon a
request of a consumer that is made after receiving a
consumer report under this
subsection shall be completed not later than 45 days
after the date on which the
request is received.
(4) Exception for first 12 months of operation.
This subsection shall not apply to a
consumer reporting agency that has not been furnishing
consumer reports to third
parties on a continuing basis during the 12-month period
preceding a request
under paragraph (1), with respect to consumers residing
nationwide.
(b)Free
disclosure after adverse notice to consumer. Each
consumer reporting agency that
maintains a file on a consumer shall make all
disclosures pursuant to section 609
[§
1681g] without charge to the consumer if, not later than
60 days after receipt by
such
consumer of a notification pursuant to section 615 [§
1681m], or of a
notification from a debt collection agency affiliated
with that consumer reporting
agency stating that the consumer's credit rating may be
or has been adversely
affected, the consumer makes a request under section 609
[§ 1681g].
(c)Free disclosure under certain other
circumstances. Upon the request of the consumer,
a
consumer reporting agency shall make all disclosures
pursuant to section 609
[§
1681g] once during any 12-month period without charge to
that consumer if the
consumer certifies in writing that the consumer
4
The
Federal Trade Commission increased the maximum allowable
charge to $9.00, effective January 1,
2002. 66 Fed. Reg. 63545 (Dec. 7, 2001).
54
July 30, 2004
(1)is unemployed and intends to apply for employment in
the 60-day period
beginning on the date on which the certification is
made;
(2)is a recipient of public welfare assistance; or
(3)has reason to believe that the file on the consumer
at the agency contains
inaccurate information due to fraud.
(d)Free
disclosures in connection with fraud alerts. Upon
the request of a consumer, a
consumer reporting agency described in section 603(p)
shall make all disclosures
pursuant to section 609 without charge to the consumer,
as provided in subsections
(a)(2) and (b)(2) of section 605A, as applicable.
(e)Other
charges prohibited A consumer reporting agency
shall not impose any charge
on a
consumer for providing any notification required by this
title or making any
disclosure required by this title, except as authorized
by subsection (f).
(f)
Reasonable Charges Allowed for Certain Disclosures
(1)In
general. In the case of a request from a consumer
other than a request that is
covered by any of subsections (a) through (d), a
consumer reporting agency may
impose a reasonable charge on a consumer
(A) for making a disclosure to the consumer
pursuant to section 609 [§ 1681g],
which charge
(i) shall not exceed $8;4 and
(ii) shall be indicated to the consumer before making
the disclosure; and
(B)
for furnishing, pursuant to 611(d) [§ 1681i], following
a reinvestigation
under section 611(a) [§ 1681i], a statement,
codification, or summary to a
person designated by the consumer under that section
after the 30-day
period beginning on the date of notification of the
consumer under
paragraph (6) or (8) of section 611(a) [§ 1681i] with
respect to the
reinvestigation, which charge
(i) shall not exceed the charge that the agency would
impose on each
designated recipient for a consumer report; and
(ii) shall be indicated to the consumer before
furnishing such information.
(2)Modification
of amount. The Federal Trade Commission shall
increase the amount
referred to in paragraph (1)(A)(I) on January 1 of each
year, based proportionally
on
changes in the Consumer Price Index, with fractional
changes rounded to the
nearest fifty cents.
55
July 30, 2004
§
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
56
July 30, 2004
(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 con-
sumer 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].
57
July 30, 2004
(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 connec-
tion
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
58
July 30, 2004
connection with any credit or insurance transaction that
is not initiated by
the
consumer; and
(E) the consumer may exercise the right
referred to in subparagraph (D) by
notifying a notification system established under
section 604(e) [§ 1681b].
(2)Disclosure
of address and telephone number; format. A
statement under paragraph
(1)
shall--
(A)
include the address and toll-free telephone number of
the appropriate
notification system established under section 604(e);
and
(B)
be presented in such format and in such type size and
manner as to be
simple and easy to understand, as established by the
Commission, by rule,
in
consultation with the Federal banking agencies and the
National Credit
Union Administration.
(3)Maintaining criteria on file. A person who
makes an offer of credit or insurance to
a
consumer under a credit or insurance transaction
described in paragraph (1)
shall maintain on file the criteria used to select the
consumer to receive the offer,
all
criteria bearing on credit worthiness or insurability,
as applicable, that are the
basis for determining whether or not to extend credit or
insurance pursuant to the
offer, and any requirement for the furnishing of
collateral as a condition of the
extension of credit or insurance, until the expiration
of the 3-year period
beginning on the date on which the offer is made to the
consumer.
(4)Authority of federal agencies regarding unfair or
deceptive acts or practices not
affected.
This section is not intended to affect the authority of
any Federal or
State agency to enforce a prohibition against unfair or
deceptive acts or practices,
including the making of false or misleading statements
in connection with a credit
or
insurance transaction that is not initiated by the
consumer.
(e)
Red Flag Guidelines and Regulations Required
(1)Guidelines.
The Federal banking agencies, the National Credit
Union
Administration, and the Commission shall jointly, with
respect to the entities that
are
subject to their respective enforcement authority under
section 621–
(A)
establish and maintain guidelines for use by each
financial institution and
each
creditor regarding identity theft with respect to
account holders at, or
customers of, such entities, and update such guidelines
as often as
necessary;
(B)
prescribe regulations requiring each financial
institution and each creditor
to
establish reasonable policies and procedures for
implementing the
guidelines established pursuant to subparagraph (A), to
identify possible
risks to account holders or customers or to the safety
and soundness of the
institution or customers; and
59
July 30, 2004
(C)
prescribe regulations applicable to card issuers to
ensure that, if a card
issuer receives notification of a change of address for
an existing account,
and
within a short period of time (during at least the first
30 days after
such
notification is received) receives a request for an
additional or
replacement card for the same account, the card issuer
may not issue the
additional or replacement card, unless the card issuer,
in accordance with
reasonable policies and procedures--
(i)
notifies the cardholder of the request at the former
address of the
cardholder and provides to the cardholder a means of
promptly
reporting incorrect address changes;
(ii)
notifies the cardholder of the request by such other
means of communi-
cation as the cardholder and the card issuer previously
agreed to; or
(iii) uses other means of assessing the validity of the
change of address, in
accordance with reasonable policies and procedures
established by the
card
issuer in accordance with the regulations prescribed
under
subparagraph (B).
(2)Criteria
(A)
In general. In developing the guidelines
required by paragraph (1)(A), the
agencies described in paragraph (1) shall identify
patterns, practices, and
specific forms of activity that indicate the possible
existence of identity
theft.
(B)
Inactive accounts. In developing the guidelines
required by paragraph
(1)(A), the agencies described in paragraph (1) shall
consider including
reasonable guidelines providing that when a transaction
occurs with
respect to a credit or deposit account that has been
inactive for more than 2
years, the creditor or financial institution shall
follow reasonable policies
and
procedures that provide for notice to be given to a
consumer in a
manner reasonably designed to reduce the likelihood of
identity theft with
respect to such account.
(3)Consistency
with verification requirements. Guidelines
established pursuant to
paragraph (1) shall not be inconsistent with the
policies and procedures required
under section 5318(l) of title 31, United States Code.
(f)
Prohibition on Sale or Transfer of Debt Caused by
Identity Theft
(1)In
general. No person shall sell, transfer for
consideration, or place for collection
a
debt that such person has been notified under section
605B has resulted from
identity theft.
(2)Applicability.
The prohibitions of this subsection shall apply to
all persons
collecting a debt described in paragraph (1) after the
date of a notification under
paragraph (1).
60
July 30, 2004
(3)
Rule of construction. Nothing in this subsection
shall be construed to prohibit--
(A)
the repurchase of a debt in any case in which the
assignee of the debt
requires such repurchase because the debt has resulted
from identity theft;
(B)
the securitization of a debt or the pledging of a
portfolio of debt as
collateral in connection with a borrowing; or
(C)
the transfer of debt as a result of a merger,
acquisition, purchase and
assumption transaction, or transfer of substantially all
of the assets of an
entity.
(g)Debt
collector communications concerning identity theft.
If a person acting as a debt
collector (as that term is defined in title VIII) on
behalf of a third party that is a
creditor or other user of a consumer report is notified
that any information relating to
a
debt that the person is attempting to collect may be
fraudulent or may be the result
of
identity theft, that person shall--
(1)notify the third party that the information may be
fraudulent or may be the result
of
identity theft; and
(2)upon request of the consumer to whom the debt
purportedly relates, provide to the
consumer all information to which the consumer would
otherwise be entitled if
the
consumer were not a victim of identity theft, but wished
to dispute the debt
under provisions of law applicable to that person.
(h)
Duties of Users in Certain Credit Transactions
(1)In
general. Subject to rules prescribed as provided in
paragraph (6), if any person
uses
a consumer report in connection with an application for,
or a grant,
extension, or other provision of, credit on material
terms that are materially less
favorable than the most favorable terms available to a
substantial proportion of
consumers from or through that person, based in whole or
in part on a consumer
report, the person shall provide an oral, written, or
electronic notice to the
consumer in the form and manner required by regulations
prescribed in
accordance with this subsection.
(2)Timing.
The notice required under paragraph (1) may be
provided at the time of
an
application for, or a grant, extension, or other
provision of, credit or the time of
communication of an approval of an application for, or
grant, extension, or other
provision of, credit, except as provided in the
regulations prescribed under
paragraph (6).
(3)
Exceptions. No notice shall be required from a
person under this subsection if–
(A)
the consumer applied for specific material terms and was
granted those
terms, unless those terms were initially specified by
the person after the
transaction was initiated by the consumer and after the
person obtained a
consumer report; or
61
July 30, 2004
(B)
the person has provided or will provide a notice to the
consumer under
subsection (a) in connection with the transaction.
(4)Other
notice not sufficient. A person that is required to
provide a notice under
subsection (a) cannot meet that requirement by providing
a notice under this
subsection.
(5)
Content and delivery of notice. A notice under
this subsection shall, at a minimum–
(A)
include a statement informing the consumer that the
terms offered to the
consumer are set based on information from a consumer
report;
(B)
identify the consumer reporting agency furnishing the
report;
(C)
include a statement informing the consumer that the
consumer may obtain
a
copy of a consumer report from that consumer reporting
agency without
charge; and
(D)
include the contact information specified by that
consumer reporting agen-
cy
for obtaining such consumer reports (including a
toll-free telephone
number established by the agency in the case of a
consumer reporting
agency described in section 603(p)).
(6)
Rulemaking
(A)
Rules required. The Commission and the Board
shall jointly prescribe
rules.
(B)
Content. Rules required by subparagraph (A)
shall address, but are not
limited to–
(i)
the form, content, time, and manner of delivery of any
notice under this
subsection;
(ii)
clarification of the meaning of terms used in this
subsection, including
what
credit terms are material, and when credit terms are
materially
less
favorable;
(iii) exceptions to the notice requirement under this
subsection for classes
of
persons or transactions regarding which the agencies
determine that
notice would not significantly benefit consumers;
(iv)
a model notice that may be used to comply with this
subsection; and
(v)
the timing of the notice required under paragraph (1),
including the
circumstances under which the notice must be provided
after the terms
offered to the consumer were set based on information
from a
consumer report.
62
July 30, 2004
(7)Compliance.
A person shall not be liable for failure to perform
the duties required
by
this section if, at the time of the failure, the person
maintained reasonable
policies and procedures to comply with this section.
(8)
Enforcement
(A)
No civil actions. Sections 616 and 617 shall not
apply to any failure by any
person to comply with this section.
(B)
Administrative enforcement. This section shall
be enforced exclusively under
section 621 by the Federal agencies and officials
identified in that section.
§
616. Civil liability for willful noncompliance
[15 U.S.C. § 1681n]
(a)In
general. Any person who willfully fails to comply
with any requirement imposed
under this title with respect to any consumer is liable
to that consumer in an amount
equal to the sum of
(1)(A) any actual damages sustained by the consumer as a
result of the failure or
damages of not less than $100 and not more than $1,000;
or
(B) in the case of liability of a natural
person for obtaining a consumer report
under false pretenses or knowingly without a permissible
purpose, actual
damages sustained by the consumer as a result of the
failure or $1,000,
whichever is greater;
(2)such amount of punitive damages as the court may
allow; and
(3)in the case of any successful action to enforce any
liability under this section, the
costs of the action together with reasonable attorney's
fees as determined by the
court.
(b)Civil
liability for knowing noncompliance. Any person who
obtains a consumer report
from
a consumer reporting agency under false pretenses or
knowingly without a
permissible purpose shall be liable to the consumer
reporting agency for actual
damages sustained by the consumer reporting agency or
$1,000, whichever is greater.
(c)Attorney's
fees. Upon a finding by the court that an
unsuccessful pleading, motion, or
other paper filed in connection with an action under
this section was filed in bad faith
or
for purposes of harassment, the court shall award to the
prevailing party attorney's
fees
reasonable in relation to the work expended in
responding to the pleading,
motion, or other paper.
§
617. Civil liability for negligent noncompliance
[15 U.S.C. § 1681o]
(a)In
general. Any person who is negligent in failing to
comply with any requirement
imposed under this title with respect to any consumer is
liable to that consumer in an
amount equal to the sum of
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July 30, 2004
(1)any actual damages sustained by the consumer as a
result of the failure; and
(2)in the case of any successful action to enforce any
liability under this section, the
costs of the action together with reasonable attorney's
fees as determined by the
court.
(b)Attorney's
fees. On a finding by the court that an
unsuccessful pleading, motion, or
other paper filed in connection with an action under
this section was filed in bad faith
or
for purposes of harassment, the court shall award to the
prevailing party attorney's
fees
reasonable in relation to the work expended in
responding to the pleading,
motion, or other paper.
§
618. Jurisdiction of courts; limitation of actions
[15 U.S.C. § 1681p]
An
action to enforce any liability created under this title
may be brought in any
appropriate United States district court, without regard
to the amount in controversy, or in
any
other court of competent jurisdiction, not later than
the earlier of (1) 2 years after the
date
of discovery by the plaintiff of the violation that is
the basis for such liability; or (2) 5
years after the date on which the violation that is the
basis for such liability occurs.
§
619. Obtaining information under false pretenses
[15 U.S.C. § 1681q]
Any
person who knowingly and willfully obtains information
on a consumer from a
consumer reporting agency under false pretenses shall be
fined under title 18, United States
Code, imprisoned for not more than 2 years, or both.
§
620. Unauthorized disclosures by officers or employees
[15 U.S.C. § 1681r]
Any
officer or employee of a consumer reporting agency who
knowingly and willfully
provides information concerning an individual from the
agency's files to a person not
authorized to receive that information shall be fined
under title 18, United States Code,
imprisoned for not more than 2 years, or both.
§
621. Administrative enforcement
[15
U.S.C. § 1681s]
(a)(1)Enforcement by Federal Trade Commission.
Compliance with the requirements
imposed under this title shall be enforced under the
Federal Trade Commission
Act
[15 U.S.C. §§ 41 et seq.] by the Federal Trade
Commission with respect to
consumer reporting agencies and all other persons
subject thereto, except to the
extent that enforcement of the requirements imposed
under this title is specifically
committed to some other government agency under
subsection (b) hereof. For the
purpose of the exercise by the Federal Trade Commission
of its functions and
powers under the Federal Trade Commission Act, a
violation of any requirement
or
prohibition imposed under this title shall constitute an
unfair or deceptive act
or
practice in commerce in violation of section 5(a) of the
Federal Trade
Commission Act [15 U.S.C. § 45(a)] and shall be subject
to enforcement by the
Federal Trade Commission under section 5(b) thereof [15
U.S.C. § 45(b)] with
respect to any consumer reporting agency or person
subject to enforcement by the
Federal Trade Commission pursuant to this subsection,
irrespective of whether
64
July 30, 2004
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 Commis-
sion, and has violated the injunction or order, and the
court may not impose any
civil penalty for any violation occurring before the
date of the violation of the
injunction or order.
(b)Enforcement
by other agencies. Compliance with the requirements
imposed under this
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