The Fair Credit Reporting Act
As a public service, the staff of Credit.com
posts this version of the Fair Credit Reporting
Act (FCRA), 15 U.S.C. § 1681 et seq. prepared by
the Federal Trade Commission. This version uses
FCRA section numbers (§§ 601-625) in the
headings (The relevant U.S. Code citation is
included with each section heading and each
reference to the FCRA in the text.)This document
is intended only as a convenience for you and
not a substitute for the actual text in the U.
S. Code. The Commission’s website (
www.ftc.gov ) posted this document on
October 20, 2006.
This version includes the amendments to the
FCRA set forth in the Consumer Credit Reporting
Reform Act of 1996 (Public Law 104-208, the
Omnibus Consolidated Appropriations Act for
Fiscal Year 1997, Title II, Subtitle D, Chapter
1), Section 311 of the Intelligence
Authorization for Fiscal Year 1998 (Public Law
105-107), the Consumer Reporting Employment
Clarification Act of 1998 (Public Law 105-347),
Section 506 of the Gramm-Leach- Bliley Act
(Public Law 106-102), Sections 358(g) and 505(c)
of the Uniting and Strengthening America by
Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001
(USA PATRIOT Act) (Public Law 107-56), and the
Fair and Accurate Credit Transactions Act of
2003 (FACT Act) (Public Law 108-159). Many of
the provisions added by the FACT Act will become
effective at different times depending on the
results of rulemaking proceedings announced by
the Federal Trade Commission and other
regulatory agencies.
Table of Contents
§ 601 Short title
§
602 Congressional findings and
statement of purpose
§
603 Definitions; rules of
construction
§
604 Permissible purposes of
consumer reports
§
605 Requirements relating to
information contained in consumer reports
§
605A Identity theft
prevention; fraud alerts and active duty alerts
§
605B Block of information
resulting from identity theft
§
606 Disclosure of investigative
consumer reports
§
607 Compliance procedures
§
608 Disclosures to governmental
agencies
§
609 Disclosures to consumers
§
610 Conditions and form of
disclosure to consumers
§
611 Procedure in case of
disputed accuracy
§
612 Charges for certain
disclosures
§
613 Public record information
for employment purposes
§
614 Restrictions on
investigative consumer reports
§
615 Requirements on users of
consumer reports
§
616 Civil liability for willful
noncompliance
§
617 Civil liability for
negligent noncompliance
§
618 Jurisdiction of courts;
limitation of actions
§
619 Obtaining information under
false pretenses
§
620 Unauthorized disclosures by
officers or employees
§
621 Administrative enforcement
§
622 Information on overdue
child support obligations
§
623 Responsibilities of
furnishers of information to consumer reporting
agencies
§
624. Affiliate sharing
§
625. Relation to State laws
§
626. Disclosures to FBI for
counterintelligence purposes
§
627. Disclosures to
governmental agencies for counterterrorism
purposes
§
628. Disposal of records
§
629. Corporate and
technological circumvention prohibited
This title may be cited as the Fair Credit
Reporting Act.
Table of Contents
(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.
Table of Contents
(a) Definitions and rules of construction set
forth in this section are applicable for the
purposes of this title.
(b) The term “person” means any individual,
partnership, corporation, trust, estate,
cooperative, association, government or
governmental subdivision or agency, or other
entity.
(c) The term “consumer” means an individual.
(d) Consumer Report
(1) In general. The term "consumer
report" means any written, oral, or other
communication of any information by a
consumer reporting agency bearing on a
consumer's credit worthiness, credit
standing, credit capacity, character,
general reputation, personal
characteristics, or mode of living which is
used or expected to be used or collected in
whole or in part for the purpose of serving
as a factor in establishing the consumer's
eligibility for
(A) subject to
section
624, 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 to any person related
by common ownership or affiliated by
corporate control, if the information is--
(A) medical information;
(B) an individualized list or
description based on the payment
transactions of the consumer for medical
products or services; or
(C) an aggregate list of identified
consumers based on payment transactions
for medical products or services.
(e) The term “investigative consumer report”
means a consumer report or portion thereof in
which information on a consumer's character,
general reputation, personal characteristics, or
mode of living is obtained through personal
interviews with neighbors, friends, or
associates of the consumer reported on or with
others with whom he is acquainted or who may
have knowledge concerning any such items of
information. However, such information shall not
include specific factual information on a
consumer's credit record obtained directly from
a creditor of the consumer or from a consumer
reporting agency when such information was
obtained directly from a creditor of the
consumer or from the consumer.
(f) The term “consumer reporting agency”
means any person which, for monetary fees, dues,
or on a cooperative nonprofit basis, regularly
engages in whole or in part in the practice of
assembling or evaluating consumer credit
information or other information on consumers
for the purpose of furnishing consumer reports
to third parties, and which uses any means or
facility of interstate commerce for the purpose
of preparing or furnishing consumer reports.
(g) The term “file,” when used in connection
with information on any consumer, means all of
the information on that consumer recorded and
retained by a consumer reporting agency
regardless of how the information is stored.
(h) The term “employment purposes” when used
in connection with a consumer report means a
report used for the purpose of evaluating a
consumer for employment, promotion, reassignment
or retention as an employee.
(i) The term “medical information” --
(1) means information or data, whether
oral or recorded, in any form or medium,
created by or derived from a health care
provider or the consumer, that relates to--
(A) the past, present, or future
physical, mental, or behavioral health
or condition of an individual;
(B) the provision of health care to
an individual; or
(C) the payment for the provision of
health care to an individual.
(2) does not include the age or gender of
a consumer, demographic information about
the consumer, including a consumer's
residence address or e-mail address, or any
other information about a consumer that does
not relate to the physical, mental, or
behavioral health or condition of a
consumer, including the existence or value
of any insurance policy.
(j) Definitions Relating to Child Support
Obligations
(1) The “overdue support” has the meaning
given to such term in section 666(e) of
title 42 [Social Security Act, 42 U.S.C. §
666(e)].
(2) The term “State or local child
support enforcement agency” means a State or
local agency which administers a State or
local program for establishing and enforcing
child support obligations.
(k) Adverse Action
(1) Actions included. The term “adverse
action”
(A) has the same meaning as in
section 701(d)(6) of the Equal Credit
Opportunity Act; and
(B) means
(i) a denial or cancellation of,
an increase in any charge for, or a
reduction or other adverse or
unfavorable change in the terms of
coverage or amount of, any
insurance, existing or applied for,
in connection with the underwriting
of insurance;
(ii) a denial of employment or
any other decision for employment
purposes that adversely affects any
current or prospective employee;
(iii) a denial or cancellation
of, an increase in any charge for,
or any other adverse or unfavorable
change in the terms of, any license
or benefit described in
section
604(a)(3)(D) [§ 1681b]; and
(iv) an action taken or
determination that is
(I) made in connection with
an application that was made by,
or a transaction that was
initiated by, any consumer, or
in connection with a review of
an account under
section
604(a)(3)(F)(ii) [§ 1681b];
and
(II) adverse to the interests
of the consumer.
(2) Applicable findings, decisions,
commentary, and orders. For purposes of any
determination of whether an action is an
adverse action under paragraph (1)(A), all
appropriate final findings, decisions,
commentary, and orders issued under section
701(d)(6) of the Equal Credit Opportunity
Act by the 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.
(o) Excluded communications. A communication
is described in this subsection if it is a
communication
(1) that, but for subsection (d)(2)(D),
would be an investigative consumer report;
(2) that is made to a prospective
employer for the purpose of
(A) procuring an employee for the
employer; or
(B) procuring an opportunity for a
natural person to work for the employer;
(3) that is made by a person who
regularly performs such procurement;
(4) that is not used by any person for
any purpose other than a purpose described
in subparagraph (A) or (B) of paragraph (2);
and
(5) with respect to which
(A) the consumer who is the subject
of the communication
(i) consents orally or in writing
to the nature and scope of the
communication, before the collection
of any information for the purpose
of making the communication;
(ii) consents orally or in
writing to the making of the
communication to a prospective
employer, before the making of the
communication; and
(iii) in the case of consent
under clause (i) or (ii) given
orally, is provided written
confirmation of that consent by the
person making the communication, not
later than 3 business days after the
receipt of the consent by that
person;
(B) the person who makes the
communication does not, for the purpose
of making the communication, make any
inquiry that if made by a prospective
employer of the consumer who is the
subject of the communication would
violate any applicable Federal or State
equal employment opportunity law or
regulation; and
(C) the person who makes the
communication
(i) discloses in writing to the
consumer who is the subject of the
communication, not later than 5
business days after receiving any
request from the consumer for such
disclosure, the nature and substance
of all information in the consumer's
file at the time of the request,
except that the sources of any
information that is acquired solely
for use in making the communication
and is actually used for no other
purpose, need not be disclosed other
than under appropriate discovery
procedures in any court of competent
jurisdiction in which an action is
brought; and
(ii) notifies the consumer who is
the subject of the communication, in
writing, of the consumer's right to
request the information described in
clause (i).
(p) The term “consumer reporting agency that
compiles and maintains files on consumers on a
nationwide basis” means a consumer reporting
agency that regularly engages in the practice of
assembling or evaluating, and maintaining, for
the purpose of furnishing consumer reports to
third parties bearing on a consumer's credit
worthiness, credit standing, or credit capacity,
each of the following regarding consumers
residing nationwide:
(1) Public record information.
(2) Credit account information from
persons who furnish that information
regularly and in the ordinary course of
business.
(q) Definitions relating to fraud alerts.
(1) The term “active duty military
consumer” means a consumer in military
service who--
(A) is on active duty (as defined in
section 101(d)(1) of title 10, United
States Code) or is a reservist
performing duty under a call or order to
active duty under a provision of law
referred to in section 101(a)(13) of
title 10, United States Code; and
(B) is assigned to service away from
the usual duty station of the consumer.
(2) The terms “fraud alert” and “active
duty alert” mean a statement in the file of
a consumer that--
(A) notifies all prospective users of
a consumer report relating to the
consumer that the consumer may be a
victim of fraud, including identity
theft, or is an active duty military
consumer, as applicable; and
(B) is presented in a manner that
facilitates a clear and conspicuous view
of the statement described in
subparagraph (A) by any person
requesting such consumer report.
(3) The term “identity theft” means a
fraud committed using the identifying
information of another person, subject to
such further definition as the Commission
may prescribe, by regulation. See also
16 CFR Part 603.2
(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;
(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.
See also 16 CFR Part 603.3
(5) The term “new credit plan” means a
new account under an open end credit plan
(as defined in section 103(i) of the Truth
in Lending Act) or a new credit transaction
not under an open end credit plan.
(r) Credit and Debit Related Terms
(1) The term “card issuer” means--
(A) a credit card issuer, in the case
of a credit card; and
(B) a debit card issuer, in the case
of a debit card.
(2) The term “credit card” has the same
meaning as in section 103 of the Truth in
Lending Act.
(3) The term “debit card” means any card
issued by a financial institution to a
consumer for use in initiating an electronic
fund transfer from the account of the
consumer at such financial institution, for
the purpose of transferring money between
accounts or obtaining money, property,
labor, or services.
(4) The terms “account” and “electronic
fund transfer” have the same meanings as in
section 903 of the Electronic Fund Transfer
Act.
(5) The terms “credit” and “creditor”
have the same meanings as in section 702 of
the Equal Credit Opportunity Act.
(s) The term “Federal banking agency” has the
same meaning as in section 3 of the Federal
Deposit Insurance Act.
(t) The term “financial institution” means a
State or National bank, a State or Federal
savings and loan association, a mutual savings
bank, a State or Federal credit union, or any
other person that, directly or indirectly, holds
a transaction account (as defined in section
19(b) of the Federal Reserve Act) belonging to a
consumer.
(u) The term “reseller” means a consumer
reporting agency that--
(1) assembles and merges information
contained in the database of another
consumer reporting agency or multiple
consumer reporting agencies concerning any
consumer for purposes of furnishing such
information to any third party, to the
extent of such activities; and
(2) does not maintain a database of the
assembled or merged information from which
new consumer reports are produced.
(v) The term “Commission” means the Federal
Trade Commission.
(w) The term “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;
(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.
Table of Contents
(a) In general. Subject to subsection (c),
any consumer reporting agency may furnish a
consumer report under the following
circumstances and no other:
(1) In response to the order of a court
having jurisdiction to issue such an order,
or a subpoena issued in connection with
proceedings before a Federal grand jury.
(2) In accordance with the written
instructions of the consumer to whom it
relates.
(3) To a person which it has reason to
believe
(A) intends to use the information in
connection with a credit transaction
involving the consumer on whom the
information is to be furnished and
involving the extension of credit to, or
review or collection of an account of,
the consumer; or
(B) intends to use the information
for employment purposes; or
(C) intends to use the information in
connection with the underwriting of
insurance involving the consumer; or
(D) intends to use the information in
connection with a determination of the
consumer's eligibility for a license or
other benefit granted by a governmental
instrumentality required by law to
consider an applicant's financial
responsibility or status; or
(E) intends to use the information,
as a potential investor or servicer, or
current insurer, in connection with a
valuation of, or an assessment of the
credit or prepayment risks associated
with, an existing credit obligation; or
(F) otherwise has a legitimate
business need for the information
(i) in connection with a business
transaction that is initiated by the
consumer; or
(ii) to review an account to
determine whether the consumer
continues to meet the terms of the
account.
(4) In response to a request by the head
of a State or local child support
enforcement agency (or a State or local
government official authorized by the head
of such an agency), if the person making the
request certifies to the consumer reporting
agency that
(A) the consumer report is needed for
the purpose of establishing an
individual’s capacity to make child
support payments or determining the
appropriate level of such payments;
(B) the paternity of the consumer for
the child to which the obligation
relates has been established or
acknowledged by the consumer in
accordance with State laws under which
the obligation arises (if required by
those laws);
(C) the person has provided at least
10 days’ prior notice to the consumer
whose report is requested, by certified
or registered mail to the last known
address of the consumer, that the report
will be requested; and
(D) the consumer report will be kept
confidential, will be used solely for a
purpose described in subparagraph (A),
and will not be used in connection with
any other civil, administrative, or
criminal proceeding, or for any other
purpose.
(5) To an agency administering a State
plan under Section 454 of the Social
Security Act (42 U.S.C. § 654) for use to
set an initial or modified child support
award.
(b) Conditions for Furnishing and Using
Consumer Reports for Employment Purposes.
(1) Certification from user. A consumer
reporting agency may furnish a consumer
report for employment purposes only if
(A) the person who obtains such
report from the agency certifies to the
agency that
(i) the person has complied with
paragraph (2) with respect to the
consumer report, and the person will
comply with paragraph (3) with
respect to the consumer report if
paragraph (3) becomes applicable;
and
(ii) information from the
consumer report will not be used in
violation of any applicable Federal
or State equal employment
opportunity law or regulation; and
(B) the consumer reporting agency
provides with the report, or has
previously provided, a summary of the
consumer's rights under this title, as
prescribed by the Federal Trade
Commission under section 609(c)(2) [§ 1681g].
(2) Disclosure to Consumer.
(A) In general. Except as provided in
subparagraph (B), a person may not
procure a consumer report, or cause a
consumer report to be procured, for
employment purposes with respect to any
consumer, unless--
(i) a clear and conspicuous
disclosure has been made in writing
to the consumer at any time before
the report is procured or caused to
be procured, in a document that
consists solely of the disclosure,
that a consumer report may be
obtained for employment purposes;
and
(ii) the consumer has authorized
in writing (which authorization may
be made on the document referred to
in clause (i)) the procurement of
the report by that person.
(B) Application by mail, telephone,
computer, or other similar means. If a
consumer described in subparagraph (C)
applies for employment by mail,
telephone, computer, or other similar
means, at any time before a consumer
report is procured or caused to be
procured in connection with that
application--
(i) the person who procures the
consumer report on the consumer for
employment purposes shall provide to
the consumer, by oral, written, or
electronic means, notice that a
consumer report may be obtained for
employment purposes, and a summary
of the consumer's rights under
section 615(a)(3);
and
(ii) the consumer shall have
consented, orally, in writing, or
electronically to the procurement of
the report by that person.
(C) Scope. Subparagraph (B) shall
apply to a person procuring a consumer
report on a consumer in connection with
the consumer's application for
employment only if--
(i) the consumer is applying for
a position over which the Secretary
of Transportation has the power to
establish qualifications and maximum
hours of service pursuant to the
provisions of section 31502 of title
49, or a position subject to safety
regulation by a State transportation
agency; and
(ii) as of the time at which the
person procures the report or causes
the report to be procured the only
interaction between the consumer and
the person in connection with that
employment application has been by
mail, telephone, computer, or other
similar means.
(3) Conditions on use for adverse
actions.
(A) In general. Except as provided in
subparagraph (B), in using a consumer
report for employment purposes, before
taking any adverse action based in whole
or in part on the report, the person
intending to take such adverse action
shall provide to the consumer to whom
the report relates--
(i) a copy of the report; and
(ii) a description in writing of
the rights of the consumer under
this title, as prescribed by the
Federal Trade Commission under
section 609(c)(2).
(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);
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).
(III) that the consumer
reporting agency did not make
the decision to take the adverse
action and is unable to provide
to the consumer the specific
reasons why the adverse action
was taken; and
(IV) that the consumer may,
upon providing proper
identification, request a free
copy of a report and may dispute
with the consumer reporting
agency the accuracy or
completeness of any information
in a report.
(ii) If, under clause (B)(i)(IV),
the consumer requests a copy of a
consumer report from the person who
procured the report, then, within 3
business days of receiving the
consumer's request, together with
proper identification, the person
must send or provide to the consumer
a copy of a report and a copy of the
consumer's rights as prescribed by
the Federal Trade Commission under
section 609(c)(2).
(C) Scope. Subparagraph (B) shall
apply to a person procuring a consumer
report on a consumer in connection with
the consumer's application for
employment only if--
(i) the consumer is applying for
a position over which the Secretary
of Transportation has the power to
establish qualifications and maximum
hours of service pursuant to the
provisions of section 31502 of title
49, or a position subject to safety
regulation by a State transportation
agency; and
(ii) as of the time at which the
person procures the report or causes
the report to be procured the only
interaction between the consumer and
the person in connection with that
employment application has been by
mail, telephone, computer, or other
similar means.
(4) Exception for national security
investigations.
(A) In general. In the case of an
agency or department of the United
States Government which seeks to obtain
and use a consumer report for employment
purposes, paragraph (3) shall not apply
to any adverse action by such agency or
department which is based in part on
such consumer report, if the head of
such agency or department makes a
written finding that–
(i) the consumer report is
relevant to a national security
investigation of such agency or
department;
(ii) the investigation is within
the jurisdiction of such agency or
department;
(iii) there is reason to believe
that compliance with paragraph (3)
will--
(I) endanger the life or
physical safety of any person;
(II) result in flight from
prosecution;
(III) result in the
destruction of, or tampering
with, evidence relevant to the
investigation;
(IV) result in the
intimidation of a potential
witness relevant to the
investigation;
(V) result in the compromise
of classified information; or
(VI) otherwise seriously
jeopardize or unduly delay the
investigation or another
official proceeding.
(B) Notification of consumer upon
conclusion of investigation. Upon the
conclusion of a national security
investigation described in subparagraph
(A), or upon the determination that the
exception under subparagraph (A) is no
longer required for the reasons set
forth in such subparagraph, the official
exercising the authority in such
subparagraph shall provide to the
consumer who is the subject of the
consumer report with regard to which
such finding was made--
(i) a copy of such consumer
report with any classified
information redacted as necessary;
(ii) notice of any adverse action
which is based, in part, on the
consumer report; and
(iii) the identification with
reasonable specificity of the nature
of the investigation for which the
consumer report was sought.
(C) Delegation by head of agency or
department. For purposes of
subparagraphs (A) and (B), the head of
any agency or department of the United
States Government may delegate his or
her authorities under this paragraph to
an official of such agency or department
who has personnel security
responsibilities and is a member of the
Senior Executive Service or equivalent
civilian or military rank.
(D) Definitions. For purposes of this
paragraph, the following definitions
shall apply:
(i) The term “classified
information” means information that
is protected from unauthorized
disclosure under Executive Order No.
12958 or successor orders.
(ii) The term “national security
investigation” means any official
inquiry by an agency or department
of the United States Government to
determine the eligibility of a
consumer to receive access or
continued access to classified
information or to determine whether
classified information has been lost
or compromised.
(c) Furnishing reports in connection with
credit or insurance transactions that are not
initiated by the consumer.
(1) In general. A consumer reporting
agency may furnish a consumer report
relating to any consumer pursuant to
subparagraph (A) or (C) of subsection (a)(3)
in connection with any credit or insurance
transaction that is not initiated by the
consumer only if
(A) the consumer authorizes the
agency to provide such report to such
person; or
(B)
(i) the transaction consists of a
firm offer of credit or insurance;
(ii) the consumer reporting
agency has complied with subsection
(e); and
(iii) there is not in effect an
election by the consumer, made in
accordance with subsection (e), to
have the consumer's name and address
excluded from lists of names
provided by the agency pursuant to
this paragraph.
(2) Limits on information received under
paragraph (1)(B). A person may receive
pursuant to paragraph (1)(B) only
(A) the name and address of a
consumer;
(B) an identifier that is not unique
to the consumer and that is used by the
person solely for the purpose of
verifying the identity of the consumer;
and
(C) other information pertaining to a
consumer that does not identify the
relationship or experience of the
consumer with respect to a particular
creditor or other entity.
(3) Information regarding inquiries.
Except as provided in section 609(a)(5) [§1681g], a consumer
reporting agency shall not furnish to any
person a record of inquiries in connection
with a credit or insurance transaction that
is not initiated by a consumer.
(d) Reserved.
(e) Election of consumer to be excluded from
lists.
(1) In general. A consumer may elect to
have the consumer's name and address
excluded from any list provided by a
consumer reporting agency under subsection
(c)(1)(B) in connection with a credit or
insurance transaction that is not initiated
by the consumer, by notifying the agency in
accordance with paragraph (2) that the
consumer does not consent to any use of a
consumer report relating to the consumer in
connection with any credit or insurance
transaction that is not initiated by the
consumer.
(2) Manner of notification. A consumer
shall notify a consumer reporting agency
under paragraph (1)
(A) through the notification system
maintained by the agency under paragraph
(5); or
(B) by submitting to the agency a
signed notice of election form issued by
the agency for purposes of this
subparagraph.
(3) Response of agency after notification
through system. Upon receipt of notification
of the election of a consumer under
paragraph (1) through the notification
system maintained by the agency under
paragraph (5), a consumer reporting agency
shall
(A) inform the consumer that the
election is effective only for the
5-year period following the election if
the consumer does not submit to the
agency a signed notice of election form
issued by the agency for purposes of
paragraph (2)(B); and
(B) provide to the consumer a notice
of election form, if requested by the
consumer, not later than 5 business days
after receipt of the notification of the
election through the system established
under paragraph (5), in the case of a
request made at the time the consumer
provides notification through the
system.
(4) Effectiveness of election. An
election of a consumer under paragraph (1)
(A) shall be effective with respect
to a consumer reporting agency beginning
5 business days after the date on which
the consumer notifies the agency in
accordance with paragraph (2);
(B) shall be effective with respect
to a consumer reporting agency
(i) subject to subparagraph (C),
during the 5-year period beginning 5
business days after the date on
which the consumer notifies the
agency of the election, in the case
of an election for which a consumer
notifies the agency only in
accordance with paragraph (2)(A); or
(ii) until the consumer notifies
the agency under subparagraph (C),
in the case of an election for which
a consumer notifies the agency in
accordance with paragraph (2)(B);
(C) shall not be effective after the
date on which the consumer notifies the
agency, through the notification system
established by the agency under
paragraph (5), that the election is no
longer effective; and
(D) shall be effective with respect
to each affiliate of the agency.
(5) Notification System
(A) In general. Each consumer
reporting agency that, under subsection
(c)(1)(B), furnishes a consumer report
in connection with a credit or insurance
transaction that is not initiated by a
consumer, shall
(i) establish and maintain a
notification system, including a
toll-free telephone number, which
permits any consumer whose consumer
report is maintained by the agency
to notify the agency, with
appropriate identification, of the
consumer's election to have the
consumer's name and address excluded
from any such list of names and
addresses provided by the agency for
such a transaction; and
(ii) publish by not later than
365 days after the date of enactment
of the Consumer Credit Reporting
Reform Act of 1996, and not less
than annually thereafter, in a
publication of general circulation
in the area served by the agency
(I) a notification that
information in consumer files
maintained by the agency may be
used in connection with such
transactions; and
(II) the address and
toll-free telephone number for
consumers to use to notify the
agency of the consumer's
election under clause (I).
(B) Establishment and maintenance as
compliance. Establishment and
maintenance of a notification system
(including a toll-free telephone number)
and publication by a consumer reporting
agency on the agency's own behalf and on
behalf of any of its affiliates in
accordance with this paragraph is deemed
to be compliance with this paragraph by
each of those affiliates.
(6) Notification system by agencies that
operate nationwide. Each consumer reporting
agency that compiles and maintains files on
consumers on a nationwide basis shall
establish and maintain a notification system
for purposes of paragraph (5) jointly with
other such consumer reporting agencies.
(f) Certain use or obtaining of information
prohibited. A person shall not use or obtain a
consumer report for any purpose unless
(1) the consumer report is obtained for a
purpose for which the consumer report is
authorized to be furnished under this
section; and
(2) the purpose is certified in
accordance with
section 607
[§1681e] by a prospective user of the report
through a general or specific certification.
(g) Protection of Medical Information
(1) Limitation on consumer reporting
agencies. A consumer reporting agency shall
not furnish for employment purposes, or in
connection with a credit or insurance
transaction, a consumer report that contains
medical information (other than medical
contact information treated in the manner
required under section
605(a)(6) about a consumer, unless--
(A) if furnished in connection with
an insurance transaction, the consumer
affirmatively consents to the furnishing
of the report;
(B) if furnished for employment
purposes or in connection with a credit
transaction--
(i) the information to be
furnished is relevant to process or
effect the employment or credit
transaction; and
(ii) the consumer provides
specific written consent for the
furnishing of the report that
describes in clear and conspicuous
language the use for which the
information will be furnished; or
(C) the information to be furnished
pertains solely to transactions,
accounts, or balances relating to debts
arising from the receipt of medical
services, products, or devises, where
such information, other than account
status or amounts, is restricted or
reported using codes that do not
identify, or do not provide information
sufficient to infer, the specific
provider or the nature of such services,
products, or devices, as provided in
section 605(a)(6).
(2) Limitation on creditors. Except as
permitted pursuant to paragraph (3)(C) or
regulations prescribed under paragraph
(5)(A), a creditor shall not obtain or use
medical information (other than medical
contact information treated in the manner
required under section 605(a)(6) pertaining
to a consumer in connection with any
determination of the consumer's eligibility,
or continued eligibility, for credit.
(3) Actions authorized by federal law,
insurance activities and regulatory
determinations. Section 603(d)(3) shall not be construed so as
to treat information or any communication of
information as a consumer report if the
information or communication is disclosed--
(A) in connection with the business
of insurance or annuities, including the
activities described in section 18B of
the model Privacy of Consumer Financial
and Health Information Regulation issued
by the National Association of Insurance
Commissioners (as in effect on January
1, 2003);
(B) for any purpose permitted without
authorization under the Standards for
Individually Identifiable Health
Information promulgated by the
Department of Health and Human Services
pursuant to the Health Insurance
Portability and Accountability Act of
1996, or referred to under section 1179
of such Act, or described in section
502(e) of Public Law 106-102; or
(C) as otherwise determined to be
necessary and appropriate, by regulation
or order 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).
(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. See also
12 CFR Parts 41/222/232/334/571/717
(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.
Table of Contents
(a) Information excluded from consumer
reports. Except as authorized under subsection
(b) of this section, no consumer reporting
agency may make any consumer report containing
any of the following items of information:
(1) Cases under title 11 [United States
Code] or under the Bankruptcy Act that, from
the date of entry of the order for relief or
the date of adjudication, as the case may
be, antedate the report by more than 10
years.
(2) Civil suits, civil judgments, and
records of arrest that from date of entry,
antedate the report by more than seven years
or until the governing statute of
limitations has expired, whichever is the
longer period.
(3) Paid tax liens which, from date of
payment, antedate the report by more than
seven years.
(4) Accounts placed for collection or
charged to profit and loss which antedate
the report by more than seven years.
(5) Any other adverse item of
information, other than records of
convictions of crimes which antedates the
report by more than seven years.1
(6) The name, address, and telephone
number of any medical information furnisher
that has notified the agency of its status,
unless--
(A) such name, address, and telephone
number are restricted or reported using
codes that do not identify, or provide
information sufficient to infer, the
specific provider or the nature of such
services, products, or devices to a
person other than the consumer; or
(B) the report is being provided to
an insurance company for a purpose
relating to engaging in the business of
insurance other than property and
casualty insurance.
(b) Exempted cases. The provisions of
paragraphs (1) through (5) of subsection (a) of
this section are not applicable in the case of
any consumer credit report to be used in
connection with (1) a credit transaction
involving, or which may reasonably be expected
to involve, a principal amount of $150,000 or
more;
(2) the underwriting of life insurance
involving, or which may reasonably be
expected to involve, a face amount of
$150,000 or more; or
(3) the employment of any individual at
an annual salary which equals, or which may
reasonably be expected to equal $75,000, or
more.
(c) Running of Reporting Period
(1) In general. The 7-year period
referred to in paragraphs (4) and (6) of
subsection
(a) shall begin, with respect to any
delinquent account that is placed for
collection (internally or by referral to
a third party, whichever is earlier),
charged to profit and loss, or subjected
to any similar action, upon the
expiration of the 180-day period
beginning on the date of the
commencement of the delinquency which
immediately preceded the collection
activity, charge to profit and loss, or
similar action.
(2) Effective date. Paragraph (1) shall
apply only to items of information added to
the file of a consumer on or after the date
that is 455 days after the date of enactment
of the Consumer Credit Reporting Reform Act
of 1996.
(d) Information Required to be Disclosed
(1) Title 11 information. Any consumer
reporting agency that furnishes a consumer
report that contains information regarding
any case involving the consumer that arises
under title 11, United States Code, shall
include in the report an identification of
the chapter of such title 11 under which
such case arises if provided by the source
of the information. If any case arising or
filed under title 11, United States Code, is
withdrawn by the consumer before a final
judgment, the consumer reporting agency
shall include in the report that such case
or filing was withdrawn upon receipt of
documentation certifying such withdrawal.
(2) Key factor in credit score
information. Any consumer reporting agency
that furnishes a consumer report that
contains any credit score or any other risk
score or predictor on any consumer shall
include in the report a clear and
conspicuous statement that a key factor (as
defined in section
609(f)(2)(B) that adversely affected
such score or predictor was the number of
enquiries, if such a predictor was in fact a
key factor that adversely affected such
score. This paragraph shall not apply to a
check services company, acting as such,
which issues authorizations for the purpose
of approving or processing negotiable
instruments, electronic fund transfers, or
similar methods of payments, but only to the
extent that such company is engaged in such
activities.
(e) Indication of closure of account by
consumer. If a consumer reporting agency is
notified pursuant to section
623(a)(4) [§ 1681s-2] that a credit account
of a consumer was voluntarily closed by the
consumer, the agency shall indicate that fact in
any consumer report that includes information
related to the account.
(f) Indication of dispute by consumer. If a
consumer reporting agency is notified pursuant
to section 623(a)(3) [§
1681s-2] that information regarding a consumer
who was furnished to the agency is disputed by
the consumer, the agency shall indicate that
fact in each consumer report that includes the
disputed information.
(g) Truncation of Credit Card and Debit Card
Numbers (1) In general. Except as otherwise
provided in this subsection, no person that
accepts credit cards or debit cards for the
transaction of business shall print more than
the last 5 digits of the card number or the
expiration date upon any receipt provided to the
cardholder at the point of the sale or
transaction.
(2) Limitation. This subsection shall
apply only to receipts that are
electronically printed, and shall not apply
to transactions in which the sole means of
recording a credit card or debit card
account number is by handwriting or by an
imprint or copy of the card.
(3) Effective date. This subsection shall
become effective--
(A) 3 years after the date of
enactment of this subsection, with
respect to any cash register or other
machine or device that electronically
prints receipts for credit card or debit
card transactions that is in use before
January 1, 2005; and
(B) 1 year after the date of
enactment of this subsection, with
respect to any cash register or other
machine or device that electronically
prints receipts for credit card or debit
card transactions that is first put into
use on or after January 1, 2005.
(h) Notice of Discrepancy in Address
(1) In general. If a person has requested
a consumer report relating to a consumer
from a consumer reporting agency described
in section 603(p), the
request includes an address for the consumer
that substantially differs from the
addresses in the file of the consumer, and
the agency provides a consumer report in
response to the request, the consumer
reporting agency shall notify the requester
of the existence of the discrepancy.
(2) Regulations
(A) Regulations required. The 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.
Table of Contents
(a) One-call Fraud Alerts
(1) Initial alerts. Upon the direct
request of a consumer, or an individual
acting on behalf of or as a personal
representative of a consumer, who asserts in
good faith a suspicion that the consumer has
been or is about to become a victim of fraud
or related crime, including identity theft,
a consumer reporting agency described in
section 603(p) that
maintains a file on the consumer and has
received appropriate proof of the identity
of the requester shall--
(A) include a fraud alert in the file
of that consumer, and also provide that
alert along with any credit score
generated in using that file, for a
period of not less than 90 days,
beginning on the date of such request,
unless the consumer or such
representative requests that such fraud
alert be removed before the end of such
period, and the agency has received
appropriate proof of the identity of the
requester for such purpose; and
(B) refer the information regarding
the fraud alert under this paragraph to
each of the other consumer reporting
agencies described in section 603(p), in accordance with
procedures developed under
section 621(f).
(2) Access to free reports. In any case
in which a consumer reporting agency
includes a fraud alert in the file of a
consumer pursuant to this subsection, the
consumer reporting agency shall--
(A) disclose to the consumer that the
consumer may request a free copy of the
file of the consumer pursuant to
section 612(d); and
(B) provide to the consumer all
disclosures required to be made under
section 609, without
charge to the consumer, not later than 3
business days after any request
described in subparagraph (A).
(b) Extended Alerts
(1) In general. Upon the direct request
of a consumer, or an individual acting on
behalf of or as a personal representative of
a consumer, who submits an identity theft
report to a consumer reporting agency
described in section 603(p)
that maintains a file on the consumer, if
the agency has received appropriate proof of
the identity of the requester, the agency
shall--
(A) include a fraud alert in the file
of that consumer, and also provide that
alert along with any credit score
generated in using that file, during the
7-year period beginning on the date of
such request, unless the consumer or
such representative requests that such
fraud alert be removed before the end of
such period and the agency has received
appropriate proof of the identity of the
requester for such purpose;
(B) during the 5-year period
beginning on the date of such request,
exclude the consumer from any list of
consumers prepared by the consumer
reporting agency and provided to any
third party to offer credit or insurance
to the consumer as part of a transaction
that was not initiated by the consumer,
unless the consumer or such
representative requests that such
exclusion be rescinded before the end of
such period; and
(C) refer the information regarding
the extended fraud alert under this
paragraph to each of the other consumer
reporting agencies described in
section 603(p), in
accordance with procedures developed
under section 621(f).
(2) Access to free reports. In any case
in which a consumer reporting agency
includes a fraud alert in the file of a
consumer pursuant to this subsection, the
consumer reporting agency shall--
(A) disclose to the consumer that the
consumer may request 2 free copies of
the file of the consumer pursuant to
section 612(d)
during the 12-month period beginning on
the date on which the fraud alert was
included in the file; and (B) provide to
the consumer all disclosures required to
be made under
section 609,
without charge to the consumer, not
later than 3 business days after any
request described in subparagraph (A).
(c) Active duty alerts. Upon the direct
request of an active duty military consumer, or
an individual acting on behalf of or as a
personal representative of an active duty
military consumer, a consumer reporting agency
described in section 603(p) that maintains a file on the active duty
military consumer and has received appropriate
proof of the identity of the requester shall--
(1) include an active duty alert in the
file of that active duty military consumer,
and also provide that alert along with any
credit score generated in using that file,
during a period of not less than 12 months,
or such longer period as the 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) . See
also 16 CFR Part 613.1
69 Fed. Reg. 63922 (11/03/04)
(d) Procedures. Each consumer
reporting agency described in section 603(p) shall establish policies and
procedures to comply with this section,
including procedures that inform consumers of
the availability of initial, extended, and
active duty alerts and procedures that allow
consumers and active duty military consumers to
request initial, extended, or active duty alerts
(as applicable) in a simple and easy manner,
including by telephone.
(e) Referrals of alerts. Each consumer
reporting agency described in section 603(p) that receives a referral of a
fraud alert or active duty alert from another
consumer reporting agency pursuant to this
section shall, as though the agency received the
request from the consumer directly, follow the
procedures required under--
(1) paragraphs (1)(A) and (2) of
subsection (a), in the case of a referral
under subsection (a)(1)(B);
(2) paragraphs (1)(A), (1)(B), and (2) of
subsection (b), in the case of a referral
under subsection (b)(1)(C); and
(3) paragraphs (1) and (2) of subsection
(c), in the case of a referral under
subsection (c)(3).
(f) Duty of reseller to reconvey alert. A
reseller shall include in its report any fraud
alert or active duty alert placed in the file of
a consumer pursuant to this section by another
consumer reporting agency.
(g) Duty of other consumer reporting agencies
to provide contact information. If a consumer
contacts any consumer reporting agency that is
not described in section 603(p)
to communicate a suspicion that the consumer has
been or is about to become a victim of fraud or
related crime, including identity theft, the
agency shall provide information to the consumer
on how to contact the 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.
(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.
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(a) Block. Except as otherwise provided in
this section, a consumer reporting agency shall
block the reporting of any information in the
file of a consumer that the consumer identifies
as information that resulted from an alleged
identity theft, not later than 4 business days
after the date of receipt by such agency of--
(1) appropriate proof of the identity of
the consumer;
(2) a copy of an identity theft report;
(3) the identification of such
information by the consumer; and
(4) a statement by the consumer that the
information is not information relating to
any transaction by the consumer.
(b) Notification. A consumer reporting agency
shall promptly notify the furnisher of
information identified by the consumer under
subsection (a)--
(1) that the information may be a result
of identity theft;
(2) that an identity theft report has
been filed;
(3) that a block has been requested under
this section; and
(4) of the effective dates of the block.
(c) Authority to Decline or Rescind
(1) In general. A consumer reporting
agency may decline to block, or may rescind
any block, of information relating to a
consumer under this section, if the consumer
reporting agency reasonably determines
that--
(A) the information was blocked in
error or a block was requested by the
consumer in error;
(B) the information was blocked, or a
block was requested by the consumer, on
the basis of a material
misrepresentation of fact by the
consumer relevant to the request to
block; or
(C) the consumer obtained possession
of goods, services, or money as a result
of the blocked transaction or
transactions.
(2) Notification to consumer. If a block
of information is declined or rescinded
under this subsection, the affected consumer
shall be notified promptly, in the same
manner as consumers are notified of the
reinsertion of information under
section 611(a)(5)(B).
(3) Significance of block. For purposes
of this subsection, if a consumer reporting
agency rescinds a block, the presence of
information in the file of a consumer prior
to the blocking of such information is not
evidence of whether the consumer knew or
should have known that the consumer obtained
possession of any goods, services, or money
as a result of the block.
(d) Exception for Resellers
(1) No reseller file. This section shall
not apply to a consumer reporting agency, if
the consumer reporting agency--
(A) is a reseller;
(B) is not, at the time of the
request of the consumer under subsection
(a), otherwise furnishing or reselling a
consumer report concerning the
information identified by the consumer;
and
(C) informs the consumer, by any
means, that the consumer may report the
identity theft to the Commission to
obtain consumer information regarding
identity theft.
(2) Reseller with file. The sole
obligation of the consumer reporting agency
under this section, with regard to any
request of a consumer under this section,
shall be to block the consumer report
maintained by the consumer reporting agency
from any subsequent use, if--
(A) the consumer, in accordance with
the provisions of subsection (a),
identifies, to a consumer reporting
agency, information in the file of the
consumer that resulted from identity
theft; and
(B) the consumer reporting agency is
a reseller of the identified
information.
(3) Notice. In carrying out its
obligation under paragraph (2), the reseller
shall promptly provide a notice to the
consumer of the decision to block the file.
Such notice shall contain the name, address,
and telephone number of each consumer
reporting agency from which the consumer
information was obtained for resale.
(e) Exception for verification companies. The
provisions of this section do not apply to a
check services company, acting as such, which
issues authorizations for the purpose of
approving or processing negotiable instruments,
electronic fund transfers, or similar methods of
payments, except that, beginning 4 business days
after receipt of information described in
paragraphs (1) through (3) of subsection (a), a
check services company shall not report to a
national consumer reporting agency described in
section 603(p), any
information identified in the subject identity
theft report as resulting from identity theft.
(f) Access to blocked information by law
enforcement agencies. No provision of this
section shall be construed as requiring a
consumer reporting agency to prevent a Federal,
State, or local law enforcement agency from
accessing blocked information in a consumer file
to which the agency could otherwise obtain
access under this title.
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(a) Disclosure of fact of preparation. A
person may not procure or cause to be prepared
an investigative consumer report on any consumer
unless
(1) it is clearly and accurately
disclosed to the consumer that an
investigative consumer report including
information as to his character, general
reputation, personal characteristics and
mode of living, whichever are applicable,
may be made, and such disclosure (A) is made
in a writing mailed, or otherwise delivered,
to the consumer, not later than three days
after the date on which the report was first
requested, and
(B) includes a statement informing
the consumer of his right to request the
additional disclosures provided for
under subsection (b) of this section and
the written summary of the rights of the
consumer prepared pursuant to
section 609(c) [§
1681g]; and
(2) the person certifies or has certified
to the consumer reporting agency that
(A) the person has made the
disclosures to the consumer required by
paragraph(1); and
(B) the person will comply with
subsection (b).
(b) Disclosure on request of nature and scope
of investigation. Any person who procures or
causes to be prepared an investigative consumer
report on any consumer shall, upon written
request made by the consumer within a reasonable
period of time after the receipt by him of the
disclosure required by subsection (a)(1) of this
section, make a complete and accurate disclosure
of the nature and scope of the investigation
requested. This disclosure shall be made in a
writing mailed, or otherwise delivered, to the
consumer not later than five days after the date
on which the request for such disclosure was
received from the consumer or such report was
first requested, whichever is the later.
(c) Limitation on liability upon showing of
reasonable procedures for compliance with
provisions. No person may be held liable for any
violation of subsection (a) or (b) of this
section if he shows by a preponderance of the
evidence that at the time of the violation he
maintained reasonable procedures to assure
compliance with subsection (a) or (b) of this
section.
(d) Prohibitions
(1) Certification. A consumer reporting
agency shall not prepare or furnish
investigative consumer report unless the
agency has received a certification under
subsection (a)(2) from the person who
requested the report.
(2) Inquiries. A consumer reporting
agency shall not make an inquiry for the
purpose of preparing an investigative
consumer report on a consumer for employment
purposes if the making of the inquiry by an
employer or prospective employer of the
consumer would violate any applicable
Federal or State equal employment
opportunity law or regulation.
(3) Certain public record information.
Except as otherwise provided in
section 613 [§ 1681k], a
consumer reporting agency shall not furnish
an investigative consumer report that
includes information that is a matter of
public record and that relates to an arrest,
indictment, conviction, civil judicial
action, tax lien, or outstanding judgment,
unless the agency has verified the accuracy
of the information during the 30-day period
ending on the date on which the report is
furnished.
(4) Certain adverse information. A
consumer reporting agency shall not prepare
or furnish an investigative consumer report
on a consumer that contains information that
is adverse to the interest of the consumer
and that is obtained through a personal
interview with a neighbor, friend, or
associate of the consumer or with another
person with whom the consumer is acquainted
or who has knowledge of such item of
information, unless
(A) the agency has followed
reasonable procedures to obtain
confirmation of the information, from an
additional source that has independent
and direct knowledge of the information;
or
(B) the person interviewed is the
best possible source of the information.
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(a) Identity and purposes of credit users.
Every consumer reporting agency shall maintain
reasonable procedures designed to avoid
violations of
section 605 [§
1681c] and to limit the furnishing of consumer
reports to the purposes listed under
section 604 [§ 1681b] of this
title. These procedures shall require that
prospective users of the information identify
themselves, certify the purposes for which the
information is sought, and certify that the
information will be used for no other purpose.
Every consumer reporting agency shall make a
reasonable effort to verify the identity of a
new prospective user and the uses certified by
such prospective user prior to furnishing such
user a consumer report. No consumer reporting
agency may furnish a consumer report to any
person if it has reasonable grounds for
believing that the consumer report will not be
used for a purpose listed in section 604 [§
1681b] of this title.
(b) Accuracy of report. Whenever a consumer
reporting agency prepares a consumer report it
shall follow reasonable procedures to assure
maximum possible accuracy of the information
concerning the individual about whom the report
relates.
(c) Disclosure of consumer reports by users
allowed. A consumer reporting agency may not
prohibit a user of a consumer report furnished
by the agency on a consumer from disclosing the
contents of the report to the consumer, if
adverse action against the consumer has been
taken by the user based in whole or in part on
the report.
(d) Notice to Users and Furnishers of
Information
(1) Notice requirement. A consumer
reporting agency shall provide to any person
(A) who regularly and in the ordinary
course of business furnishes information
to the agency with respect to any
consumer; or
(B) to whom a consumer report is
provided by the agency; a notice of such
person's responsibilities under this
title. See also 16 CFR 698, App G-H
69 Fed. Reg. 69776 (11/30/04)
(2) Content of notice. The Federal Trade
Commission shall prescribe the content of
notices under paragraph (1), and a consumer
reporting agency shall be in compliance with
this subsection if it provides a notice
under paragraph (1) that is substantially
similar to the Federal Trade Commission
prescription under this paragraph.
(e) Procurement of Consumer Report for Resale
(1) Disclosure. A person may not procure
a consumer report for purposes of reselling
the report (or any information in the
report) unless the person discloses to the
consumer reporting agency that originally
furnishes the report
(A) the identity of the end-user of
the report (or information); and
(B) each permissible purpose under
section 604 [§ 1681b]
for which the report is furnished to the
end-user of the report (or information).
(2) Responsibilities of procurers for
resale. A person who procures a consumer
report for purposes of reselling the report
(or any information in the report) shall
(A) establish and comply with
reasonable procedures designed to ensure
that the report (or information) is
resold by the person only for a purpose
for which the report may be furnished
under
section 604 [§
1681b], including by requiring that each
person to which the report (or
information) is resold and that resells
or provides the report (or information)
to any other person
(i) identifies each end user of
the resold report (or information);
(ii) certifies each purpose for
which the report (or information)
will be used; and
(iii) certifies that the report
(or information) will be used for no
other purpose; and
(B) before reselling the report, make
reasonable efforts to verify the
identifications and certifications made
under subparagraph (A).
(3) Resale of consumer report to a
federal agency or department.
Notwithstanding paragraph (1) or (2), a
person who procures a consumer report for
purposes of reselling the report (or any
information in the report) shall not
disclose the identity of the end-user of the
report under paragraph (1) or (2) if--
(A) the end user is an agency or
department of the United States
Government which procures the report
from the person for purposes of
determining the eligibility of the
consumer concerned to receive access or
continued access to classified
information (as defined in section
604(b)(4)(E)(i)) (Section
604(b)(4)(E)(i)
(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.
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Notwithstanding the provisions of
section 604 [§ 1681b] of this
title, a consumer reporting agency may furnish
identifying information respecting any consumer,
limited to his name, address, former addresses,
places of employment, or former places of
employment, to a governmental agency.
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(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
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