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The Fair Credit Reporting Act is A United States federal law designed to help ensure that consumer reporting agencies act fairly, impartially, and with respect for the consumer's right to privacy when preparing consumer reports on individuals. TABLE OF
CONTENTS
§ 601 Short title
§ 602 Congressional findings and statement of
purpose
§ 603 Definitions; rules of
construction
§ 604 Permissible purposes of consumer
reports
§ 605 Requirements relating to information
contained in consumer
reports
§ 606 Disclosure of investigative consumer
reports
§ 607 Compliance
procedures
§ 608 Disclosures to governmental
agencies
§ 609 Disclosures to
consumers
§ 610 Conditions and form of disclosure to
consumers
§ 611 Procedure in case of disputed
accuracy
§ 612 Charges for certain
disclosures
§ 613 Public record information for employment
purposes
§ 614 Restrictions on investigative consumer
reports
§ 615 Requirements on users of consumer
reports
§ 616 Civil liability for willful
noncompliance
§ 617 Civil liability for negligent
noncompliance
§ 618 Jurisdiction of courts; limitation of
actions
§ 619 Obtaining information under false
pretenses
§ 620 Unauthorized disclosures by officers or
employees
§ 621 Administrative
enforcement
§ 622 Information on overdue child support
obligations
§ 623 Responsibilities of furnishers of
information to consumer reporting
agencies
§ 624 Relation to State
laws
§ 625 Disclosures to FBI for
counterintelligence
purposes
§ 626 Disclosures to governmental agencies for
counterterrorism purposes
§ 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.
(3)
Consumer reporting agencies have assumed a vital role in
assembling and evaluating consumer credit and other
information on consumers.
(4)
There is a need to insure that consumer reporting agencies
exercise their grave responsibilities with fairness,
impartiality, and a respect for the consumer's right to
privacy.
(b)
Reasonable procedures. It is the purpose of this title to
require that consumer reporting agencies adopt reasonable
procedures for meeting the needs of commerce for consumer
credit, personnel, insurance, and other information in a
manner which is fair and equitable to the consumer, with
regard to the confidentiality, accuracy, relevancy, and proper
utilization of such information in accordance with the
requirements of this title.
§ 603.
Definitions; rules of construction [15
U.S.C. § 1681a]
(a)
Definitions and rules of construction set forth in this
section are applicable for the purposes of this title.
(b) The
term "person" means any individual, partnership, corporation,
trust, estate, cooperative, association, government or
governmental subdivision or agency, or other
entity.
(c) The
term "consumer" means an
individual.
(d)
Consumer report.
(1)
In general. The term "consumer report" means any written,
oral, or other communication of any information by a consumer
reporting agency bearing on a consumer's credit worthiness,
credit standing, credit capacity, character, general
reputation, personal characteristics, or mode of living which
is used or expected to be used or collected in whole or in
part for the purpose of serving as a factor in establishing
the consumer's eligibility for
(A)
credit or insurance to be used primarily for personal, family,
or household purposes;
(B)
employment purposes; or
(C)
any other purpose authorized under section 604 [§ 1681b].
(2)
Exclusions. The term "consumer report" does not include
(A)
any
(i)
report containing information solely as to transactions or
experiences between the consumer and the person making the
report;
(ii)
communication of that information among persons related by
common ownership or affiliated by corporate control;
or
(iii)
communication of other information among persons related by
common ownership or affiliated by corporate control, if it is
clearly and conspicuously disclosed to the consumer that the
information may be communicated among such persons and the
consumer is given the opportunity, before the time that the
information is initially communicated, to direct that such
information not be communicated among such
persons;
(B)
any authorization or approval of a specific extension of
credit directly or indirectly by the issuer of a credit card
or similar device;
(C)
any report in which a person who has been requested by a third
party to make a specific extension of credit directly or
indirectly to a consumer conveys his or her decision with
respect to such request, if the third party advises the
consumer of the name and address of the person to whom the
request was made, and such person makes the disclosures to the
consumer required under section 615 [§ 1681m];
or
(D)
a communication described in subsection
(o).
(e) The
term "investigative consumer report" means a consumer report
or portion thereof in which information on a consumer's
character, general reputation, personal characteristics, or
mode of living is obtained through personal interviews with
neighbors, friends, or associates of the consumer reported on
or with others with whom he is acquainted or who may have
knowledge concerning any such items of information. However,
such information shall not include specific factual
information on a consumer's credit record obtained directly
from a creditor of the consumer or from a consumer reporting
agency when such information was obtained directly from a
creditor of the consumer or from the
consumer.
(f) The
term "consumer reporting agency" means any person which, for
monetary fees, dues, or on a cooperative nonprofit basis,
regularly engages in whole or in part in the practice of
assembling or evaluating consumer credit information or other
information on consumers for the purpose of furnishing
consumer reports to third parties, and which uses any means or
facility of interstate commerce for the purpose of preparing
or furnishing consumer
reports.
(g) The
term "file," when used in connection with information on any
consumer, means all of the information on that consumer
recorded and retained by a consumer reporting agency
regardless of how the information is stored.
(h) The
term "employment purposes" when used in connection with a
consumer report means a report used for the purpose of
evaluating a consumer for employment, promotion, reassignment
or retention as an employee.
(i) The
term "medical information" means information or records
obtained, with the consent of the individual to whom it
relates, from licensed physicians or medical practitioners,
hospitals, clinics, or other medical or medically related
facilities.
(j)
Definitions relating to child support obligations.
(1)
Overdue support. The term "overdue support" has the meaning
given to such term in section 666(e) of title 42 [Social
Security Act, 42 U.S.C. § 666(e)].
(2)
State or local child support enforcement agency. The term
"State or local child support enforcement agency" means a
State or local agency which administers a State or local
program for establishing and enforcing child support
obligations.
(k)
Adverse action.
(1)
Actions included. The term "adverse action"
(A)
has the same meaning as in section 701(d)(6) of the Equal
Credit Opportunity Act; and
(B)
means
(i)
a denial or cancellation of, an increase in any charge for, or
a reduction or other adverse or unfavorable change in the
terms of coverage or amount of, any insurance, existing or
applied for, in connection with the underwriting of
insurance;
(ii)
a denial of employment or any other decision for employment
purposes that adversely affects any current or prospective
employee;
(iii)
a denial or cancellation of, an increase in any charge for, or
any other adverse or unfavorable change in the terms of, any
license or benefit described in section 604(a)(3)(D)
[§ 1681b]; and
(iv)
an action taken or determination that is
(I)
made in connection with an application that was made by, or a
transaction that was initiated by, any consumer, or in
connection with a review of an account under section
604(a)(3)(F)(ii)[§ 1681b]; and
(II)
adverse to the interests of the consumer.
(2)
Applicable findings, decisions, commentary, and orders. For
purposes of any determination of whether an action is an
adverse action under paragraph (1)(A), all appropriate final
findings, decisions, commentary, and orders issued under
section 701(d)(6) of the Equal Credit Opportunity Act by the
Board of Governors of the Federal Reserve System or any court
shall apply.
(l)
Firm offer of credit or insurance. The term "firm offer of
credit or insurance" means any offer of credit or insurance to
a consumer that will be honored if the consumer is determined,
based on information in a consumer report on the consumer, to
meet the specific criteria used to select the consumer for the
offer, except that the offer may be further conditioned on one
or more of the
following:
(1)
The consumer being determined, based on information in the
consumer's application for the credit or insurance, to meet
specific criteria bearing on credit worthiness or
insurability, as applicable, that are
established
(A)
before selection of the consumer for the offer;
and
(B)
for the purpose of determining whether to extend credit or
insurance pursuant to the offer.
(2)
Verification
(A)
that the consumer continues to meet the specific criteria used
to select the consumer for the offer, by using information in
a consumer report on the consumer, information in the
consumer's application for the credit or insurance, or other
information bearing on the credit worthiness or insurability
of the consumer; or
(B)
of the information in the consumer's application for the
credit or insurance, to determine that the consumer meets the
specific criteria bearing on credit worthiness or
insurability.
(3)
The consumer furnishing any collateral that is a requirement
for the extension of the credit or insurance that was
(A)
established before selection of the consumer for the offer of
credit or insurance; and
(B)
disclosed to the consumer in the offer of credit or
insurance.
(m)
Credit or insurance transaction that is not initiated by the
consumer. The term"credit or insurance transaction that is not
initiated by the consumer" does not include the use of a
consumer report by a person with which the consumer has an
account or insurance policy, for purposes of
(1)
reviewing the account or insurance policy;
or
(2)
collecting the account.
(n)
State. The term "State" means any State, the Commonwealth of
Puerto Rico, the District of Columbia, and any territory or
possession of the United
States.
(o)
Excluded communications. A communication is described in this
subsection if it is a communication
(1)
that, but for subsection (d)(2)(D), would be an investigative
consumer report;
(2)
that is made to a prospective employer for the purpose
of
(A)
procuring an employee for the employer; or
(B)
procuring an opportunity for a natural person to work for the
employer;
(3)
that is made by a person who regularly performs such
procurement;
(4)
that is not used by any person for any purpose other than a
purpose described in subparagraph (A) or (B) of paragraph (2);
and
(5)
with respect to which
(A)
the consumer who is the subject of the
communication
(i)
consents orally or in writing to the nature and scope of the
communication, before the collection of any information for
the purpose of making the communication;
(ii)
consents orally or in writing to the making of the
communication to a prospective employer, before the making of
the communication; and
(iii)
in the case of consent under clause (i) or (ii) given orally,
is provided written confirmation of that consent by the person
making the communication, not later than 3 business days after
the receipt of the consent by that person;
(B)
the person who makes the communication does not, for the
purpose of making the communication, make any inquiry that if
made by a prospective employer of the consumer who is the
subject of the communication would violate any applicable
Federal or State equal employment opportunity law or
regulation; and
(C)
the person who makes the communication
(i)
discloses in writing to the consumer who is the subject of the
communication, not later than 5 business days after receiving
any request from the consumer for such disclosure, the nature
and substance of all information in the consumer's file at the
time of the request, except that the sources of any
information that is acquired solely for use in making the
communication and is actually used for no other purpose, need
not be disclosed other than under appropriate discovery
procedures in any court of competent jurisdiction in which an
action is brought; and
(ii)
notifies the consumer who is the subject of the communication,
in writing, of the consumer's right to request the information
described in clause (i).
(p)
Consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis. The term "consumer reporting
agency that compiles and maintains files on consumers on a
nationwide basis" means a consumer reporting agency that
regularly engages in the practice of assembling or evaluating,
and maintaining, for the purpose of furnishing consumer
reports to third parties bearing on a consumer's credit
worthiness, credit standing, or credit capacity, each of the
following regarding consumers residing
nationwide:
(1)
Public record information.
(2)
Credit account information from persons who furnish that
information regularly and in the ordinary course of
business.
§ 604.
Permissible purposes of consumer
reports [15
U.S.C. § 1681b]
(a) In general. Subject to subsection (c), any consumer reporting agency may
furnish a consumer report under the following circumstances
and no other:
(1)
In response to the order of a court having jurisdiction to
issue such an order, or a subpoena issued in connection with
proceedings before a Federal grand jury.
(2)
In accordance with the written instructions of the consumer to
whom it relates.
(3)
To a person which it has reason to believe
(A)
intends to use the information in connection with a credit
transaction involving the consumer on whom the information is
to be furnished and involving the extension of credit to, or
review or collection of an account of, the consumer;
or
(B)
intends to use the information for employment purposes;
or
(C)
intends to use the information in connection with the
underwriting of insurance involving the consumer;
or
(D)
intends to use the information in connection with a
determination of the consumer's eligibility for a license or
other benefit granted by a governmental instrumentality
required by law to consider an applicant's financial
responsibility or status; or
(E)
intends to use the information, as a potential investor or
servicer, or current insurer, in connection with a valuation
of, or an assessment of the credit or prepayment risks
associated with, an existing credit obligation;
or
(F)
otherwise has a legitimate business need for the information
(i)
in connection with a business transaction that is initiated by
the consumer; or
(ii)
to review an account to determine whether the consumer
continues to meet the terms of the account.
(4)
In response to a request by the head of a State or local child
support enforcement agency (or a State or local government
official authorized by the head of such an agency), if the
person making the request certifies to the consumer reporting
agency that
(A)
the consumer report is needed for the purpose of establishing
an individual's capacity to make child support payments or
determining the appropriate level of such
payments;
(B)
the paternity of the consumer for the child to which the
obligation relates has been established or acknowledged by the
consumer in accordance with State laws under which the
obligation arises (if required by those
laws);
(C)
the person has provided at least 10 days' prior notice to the
consumer whose report is requested, by certified or registered
mail to the last known address of the consumer, that the
report will be requested; and
(D)
the consumer report will be kept confidential, will be used
solely for a purpose described in subparagraph (A), and will
not be used in connection with any other civil,
administrative, or criminal proceeding, or for any other
purpose.
(5)
To an agency administering a State plan under Section 454 of
the Social Security Act (42 U.S.C. § 654) for use to set
an initial or modified child support award.
(b)
Conditions for furnishing and using consumer reports for
employment purposes.
(1)
Certification from user. A consumer reporting agency may
furnish a consumer report for employment purposes only if
(A)
the person who obtains such report from the agency certifies
to the agency that
(i)
the person has complied with paragraph (2) with respect to the
consumer report, and the person will comply with paragraph (3)
with respect to the consumer report if paragraph (3) becomes
applicable; and
(ii)
information from the consumer report will not be used in
violation of any applicable Federal or State equal employment
opportunity law or regulation; and
(B)
the consumer reporting agency provides with the report, or has
previously provided, a summary of the consumer's rights under
this title, as prescribed by the Federal Trade Commission
under section 609(c)(3) [§ 1681g].
(2)
Disclosure to consumer.
(A)
In general. Except as provided in subparagraph (B), a person
may not procure a consumer report, or cause a consumer report
to be procured, for employment purposes with respect to any
consumer, unless--
(i)
a clear and conspicuous disclosure has been made in writing to
the consumer at any time before the report is procured or
caused to be procured, in a document that consists solely of
the disclosure, that a consumer report may be obtained for
employment purposes; and
(ii)
the consumer has authorized in writing (which authorization
may be made on the document referred to in clause (i)) the
procurement of the report by that person.
(B)
Application by mail, telephone, computer, or other similar
means. If a consumer described in subparagraph (C) applies for
employment by mail, telephone, computer, or other similar
means, at any time before a consumer report is procured or
caused to be procured in connection with that
application--
(i)
the person who procures the consumer report on the consumer for employment purposes shall provide
to the consumer, by oral, written, or electronic means, notice
that a consumer report may be obtained for employment
purposes, and a summary of the consumer's rights under section
615(a)(3); and
(ii)
the consumer shall have consented, orally, in writing, or
electronically to the procurement of the report by that
person.
(C)
Scope. Subparagraph (B) shall apply to a person procuring a
consumer report on a consumer in connection with the
consumer's application for employment only
if-- (i)
the consumer is applying for a position over which the
Secretary of Transportation has the power to establish
qualifications and maximum hours of service pursuant to the
provisions of section 31502 of title 49, or a position subject
to safety regulation by a State transportation agency;
and
(ii)
as of the time at which the person procures the report or
causes the report to be procured the only interaction between
the consumer and the person in connection with that employment
application has been by mail, telephone, computer, or other
similar means.
(3)
Conditions on use for adverse actions.
(A)
In general. Except as provided in subparagraph (B), in using a
consumer report for employment purposes, before taking any
adverse action based in whole or in part on the report, the
person intending to take such adverse action shall provide to
the consumer to whom the report relates--
(i)
a copy of the report; and
(ii)
a description in writing of the rights of the consumer under
this title, as prescribed by the Federal Trade Commission
under section 609(c)(3).
(B)
Application by mail, telephone, computer, or other similar
means.
(i)
If a consumer described in subparagraph (C) applies for
employment by mail, telephone, computer, or other similar
means, and if a person who has procured a consumer report on
the consumer for employment purposes takes adverse action on
the employment application based in whole or in part on the
report, then the person must provide to the consumer to whom
the report relates, in lieu of the notices required under
subparagraph (A) of this section and under section 615(a),
within 3 business days of taking such action, an oral, written
or electronic notification--
(I)
that adverse action has been taken based in whole or in part
on a consumer report received from a consumer reporting
agency;
(II)
of the name, address and telephone number of the consumer
reporting agency that furnished the consumer report (including
a toll-free telephone number established by the agency if the
agency compiles and maintains files on consumers on a
nationwide basis);
(III)
that the consumer reporting agency did not make the decision
to take the adverse action and is unable to provide to the
consumer the specific reasons why the adverse action was
taken; and
(IV)
that the consumer may, upon providing proper identification,
request a free copy of a report and may dispute with the
consumer reporting agency the accuracy or completeness of any
information in a report.
(ii)
If, under clause (B)(i)(IV), the consumer requests a copy of a
consumer report from the person who procured the report, then,
within 3 business days of receiving the consumer's request,
together with proper identification, the person must send or
provide to the consumer a copy of a report and a copy of the
consumer's rights as prescribed by the Federal Trade
Commission under section 609(c)(3).
(C)
Scope. Subparagraph (B) shall apply to a person procuring a
consumer report on a consumer in connection with the
consumer's application for employment only
if--
(i)
the consumer is applying for a position over which the
Secretary of Transportation has the power to establish
qualifications and maximum hours of service pursuant to the
provisions of section 31502 of title 49, or a position subject
to safety regulation by a State transportation agency;
and
(ii)
as of the time at which the person procures the report or
causes the report to be procured the only interaction between
the consumer and the person in connection with that employment
application has been by mail, telephone, computer, or other
similar means.
(4)
Exception for national security
investigations.
(A)
In general. In the case of an agency or department of the
United States Government which seeks to obtain and use a
consumer report for employment purposes, paragraph (3) shall
not apply to any adverse action by such agency or department
which is based in part on such consumer report, if the head of
such agency or department makes a written finding
that--
(i)
the consumer report is relevant to a national security
investigation of such agency or department;
(ii)
the investigation is within the jurisdiction of such agency or
department;
(iii)
there is reason to believe that compliance with paragraph (3)
will--
(I)
endanger the life or physical safety of any
person;
(II)
result in flight from prosecution;
(III)
result in the destruction of, or tampering with, evidence
relevant to the investigation;
(IV)
result in the intimidation of a potential witness relevant to
the investigation;
(V)
result in the compromise of classified information;
or
(VI)
otherwise seriously jeopardize or unduly delay the
investigation or another official
proceeding.
(B)
Notification of consumer upon conclusion of investigation.
Upon the conclusion of a national security investigation
described in subparagraph (A), or upon the determination that
the exception under subparagraph (A) is no longer required for
the reasons set forth in such subparagraph, the official
exercising the authority in such subparagraph shall provide to
the consumer who is the subject of the consumer report with
regard to which such finding was made--
(i)
a copy of such consumer report with any classified information
redacted as necessary;
(ii)
notice of any adverse action which is based, in part, on the
consumer report; and
(iii)
the identification with reasonable specificity of the nature
of the investigation for which the consumer report was
sought.
(C)
Delegation by head of agency or department. For purposes of
subparagraphs (A) and (B), the head of any agency or
department of the United States Government may delegate his or
her authorities under this paragraph to an official of such
agency or department who has personnel security
responsibilities and is a member of the Senior Executive
Service or equivalent civilian or military
rank.
(D)
Report to the congress. Not later than January 31 of each
year, the head of each agency and department of the United
States Government that exercised authority under this
paragraph during the preceding year shall submit a report to
the Congress on the number of times the department or agency
exercised such authority during the year.
(E)
Definitions. For purposes of this paragraph, the following
definitions shall apply:
(i)
Classified information. The term `classified information'
means information that is protected from unauthorized
disclosure under Executive Order No. 12958 or successor
orders.
(ii)
National security investigation. The term `national security
investigation' means any official inquiry by an agency or
department of the United States Government to determine the
eligibility of a consumer to receive access or continued
access to classified information or to determine whether
classified information has been lost or
compromised.
(c)
Furnishing reports in connection with credit or insurance
transactions that are not initiated by the consumer.
(1)
In general. A consumer reporting agency may furnish a consumer
report relating to any consumer pursuant to subparagraph (A)
or (C) of subsection (a)(3) in connection with any credit or
insurance transaction that is not initiated by the consumer
only if
(A)
the consumer authorizes the agency to provide such report to
such person; or
(B)
(i) the transaction consists of a firm offer of credit or
insurance;
(ii)
the consumer reporting agency has complied with subsection
(e); and
(iii)
there is not in effect an election by the consumer, made in
accordance with subsection (e), to have the consumer's name
and address excluded from lists of names provided by the
agency pursuant to this paragraph.
(2)
Limits on information received under paragraph (1)(B). A
person may receive pursuant to paragraph (1)(B) only
(A)
the name and address of a consumer;
(B)
an identifier that is not unique to the consumer and that is
used by the person solely for the purpose of verifying the
identity of the consumer; and
(C) other information pertaining to a consumer
that does not identify the
relationship or experience of the consumer with respect to a
particular creditor or other entity.
(3)
Information regarding inquiries. Except as provided in section
609(a)(5) [§ 1681g], a consumer reporting agency shall
not furnish to any person a record of inquiries in connection
with a credit or insurance transaction that is not initiated
by a consumer.
(d)
Reserved.
(e)
Election of consumer to be excluded from lists.
(1)
In general. A consumer may elect to have the consumer's name
and address excluded from any list provided by a consumer
reporting agency under subsection (c)(1)(B) in connection with
a credit or insurance transaction that is not initiated by the
consumer, by notifying the agency in accordance with paragraph
(2) that the consumer does not consent to any use of a
consumer report relating to the consumer in connection with
any credit or insurance transaction that is not initiated by
the consumer.
(2)
Manner of notification. A consumer shall notify a consumer
reporting agency under paragraph (1)
(A)
through the notification system maintained by the agency under
paragraph (5); or
(B)
by submitting to the agency a signed notice of election form
issued by the agency for purposes of this
subparagraph.
(3)
Response of agency after notification through system. Upon
receipt of notification of the election of a consumer under
paragraph (1) through the notification system maintained by
the agency under paragraph (5), a consumer reporting agency
shall
(A)
inform the consumer that the election is effective only for
the 2-year period following the election if the consumer does
not submit to the agency a signed notice of election form
issued by the agency for purposes of paragraph (2)(B);
and
(B)
provide to the consumer a notice of election form, if
requested by the consumer, not later than 5 business days
after receipt of the notification of the election through the
system established under paragraph (5), in the case of a
request made at the time the consumer provides notification
through the system.
(4)
Effectiveness of election. An election of a consumer under
paragraph (1)
(A)
shall be effective with respect to a consumer reporting agency
beginning 5 business days after the date on which the consumer
notifies the agency in accordance with paragraph
(2);
(B)
shall be effective with respect to a consumer reporting agency
(i)
subject to subparagraph (C), during the 2-year period
beginning 5 business days after the date on which the consumer
notifies the agency of the election, in the case of an
election for which a consumer notifies the agency only in
accordance with paragraph (2)(A); or
(ii)
until the consumer notifies the agency under subparagraph (C),
in the case of an election for which a consumer notifies the
agency in accordance with paragraph (2)(B);
(C)
shall not be effective after the date on which the consumer
notifies the agency, through the notification system
established by the agency under paragraph (5), that the
election is no longer effective; and
(D)
shall be effective with respect to each affiliate of the
agency.
(5)
Notification system.
(A)
In general. Each consumer reporting agency that, under
subsection (c)(1)(B), furnishes a consumer report in
connection with a credit or insurance transaction that is not
initiated by a consumer, shall
(i)
establish and maintain a notification system, including a
toll-free telephone number, which permits any consumer whose
consumer report is maintained by the agency to notify the
agency, with appropriate identification, of the consumer's
election to have the consumer's name and address excluded from
any such list of names and addresses provided by the agency
for such a transaction; and
(ii)
publish by not later than 365 days after the date of enactment
of the Consumer Credit Reporting Reform Act of 1996, and not
less than annually thereafter, in a publication of general
circulation in the area served by the agency
(I)
a notification that information in consumer files maintained
by the agency may be used in connection with such
transactions; and
(II)
the address and toll-free telephone number for consumers to
use to notify the agency of the consumer's election under
clause (I).
(B)
Establishment and maintenance as compliance. Establishment and
maintenance of a notification system (including a toll-free
telephone number) and publication by a consumer reporting
agency on the agency's own behalf and on behalf of any of its
affiliates in accordance with this paragraph is deemed to be
compliance with this paragraph by each of those
affiliates.
(6)
Notification system by agencies that operate nationwide. Each
consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis shall establish and maintain a
notification system for purposes of paragraph (5) jointly with
other such consumer reporting agencies.
(f)
Certain use or obtaining of information prohibited. A person
shall not use or obtain a consumer report for any purpose
unless
(1) the consumer report is obtained for a
purpose for which the consumer report is authorized to be
furnished under this section;
and
(2)
the purpose is certified in accordance with section 607
[§ 1681e] by a prospective user of the report through a
general or specific certification.
(g)
Furnishing reports containing medical information. A consumer
reporting agency shall not furnish for employment purposes, or
in connection with a credit or insurance transaction, a
consumer report that contains medical information about a
consumer, unless the consumer consents to the furnishing of
the report.
§ 605.
Requirements relating to information contained in consumer
reports [15
U.S.C. § 1681c]
(a)
Information excluded from consumer reports. Except as
authorized under subsection (b) of this section, no consumer
reporting agency may make any consumer report containing any
of the following items of
information:
(1) Cases under title 11 [United States Code] or
under the Bankruptcy Act that, from
the date of entry of the order for relief or the date of
adjudication, as the case may be, antedate the report by more
than 10 years.
(2)
Civil suits, civil judgments, and records of arrest that from
date of entry, antedate the report by more than seven years or
until the governing statute of limitations has expired,
whichever is the longer period.
(3)
Paid tax liens which, from date of payment, antedate the
report by more than seven years.
(4) Accounts placed for collection or
charged to profit and loss which antedate the report by more
than seven years.(1)
(5)
Any other adverse item of information, other than records of
convictions of crimes which antedates the report by more than
seven years.1
(b)
Exempted cases. The provisions of subsection (a) of this
section are not applicable in the case of any consumer credit
report to be used in connection with
(1)
a credit transaction involving, or which may reasonably be
expected to involve, a principal amount of $150,000 or
more;
(2)
the underwriting of life insurance involving, or which may
reasonably be expected to involve, a face amount of $150,000
or more; or
(3)
the employment of any individual at an annual salary which
equals, or which may reasonably be expected to equal $75,000,
or more.
(c)
Running of reporting period.
(1) In general. The 7-year period
referred to in paragraphs (4) and (6)(2) of subsection (a) shall begin, with
respect to any delinquent account that is placed for
collection (internally or by referral to a third party,
whichever is earlier), charged to profit and loss, or
subjected to any similar action, upon the expiration of the
180-day period beginning on the date of the commencement of
the delinquency which immediately preceded the collection
activity, charge to profit and loss, or similar
action.
(2) Effective date. Paragraph (1) shall apply
only to items of information added to the file of a consumer on or after the date
that is 455 days after the date of enactment of the Consumer
Credit Reporting Reform Act of 1996.
(d)
Information required to be disclosed. Any consumer reporting
agency that furnishes a consumer report that contains
information regarding any case involving the consumer that
arises under title 11, United States Code, shall include in
the report an identification of the chapter of such title 11
under which such case arises if provided by the source of the
information. If any case arising or filed under title 11,
United States Code, is withdrawn by the consumer before a
final judgment, the consumer reporting agency shall include in
the report that such case or filing was withdrawn upon receipt
of documentation certifying such
withdrawal.
(e)
Indication of closure of account by consumer. If a consumer
reporting agency is notified pursuant to section 623(a)(4)
[§ 1681s-2] that a credit account of a consumer was
voluntarily closed by the consumer, the agency shall indicate
that fact in any consumer report that includes information
related to the
account.
(f)
Indication of dispute by consumer. If a consumer reporting
agency is notified pursuant to section 623(a)(3)
[§ 1681s-2] that information regarding a consumer who was
furnished to the agency is disputed by the consumer, the
agency shall indicate that fact in each consumer report that
includes the disputed
information.
§ 606.
Disclosure of investigative consumer
reports [15
U.S.C. § 1681d]
(a)
Disclosure of fact of preparation. A person may not procure or
cause to be prepared an investigative consumer report on any
consumer unless
(1)
it is clearly and accurately disclosed to the consumer that an
investigative consumer report including information as to his
character, general reputation, personal characteristics and
mode of living, whichever are applicable, may be made, and
such disclosure
(A)
is made in a writing mailed, or otherwise delivered, to the
consumer, not later than three days after the date on which
the report was first requested, and
(B)
includes a statement informing the consumer of his right to
request the additional disclosures provided for under
subsection (b) of this section and the written summary of the
rights of the consumer prepared pursuant to section 609(c)
[§ 1681g]; and
(2)
the person certifies or has certified to the consumer
reporting agency that
(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. (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
§ 607.
Compliance procedures [15
U.S.C. § 1681e]
(a)
Identity and purposes of credit users. Every consumer
reporting agency shall maintain reasonable procedures designed
to avoid violations of section 605 [§ 1681c] and to limit
the furnishing of consumer reports to the purposes listed
under section 604 [§ 1681b] of this title. These
procedures shall require that prospective users of the
information identify themselves, certify the purposes for
which the information is sought, and certify that the
information will be used for no other purpose. Every consumer
reporting agency shall make a reasonable effort to verify the
identity of a new prospective user and the uses certified by
such prospective user prior to furnishing such user a consumer
report. No consumer reporting agency may furnish a consumer
report to any person if it has reasonable grounds for
believing that the consumer report will not be used for a
purpose listed in section 604 [§ 1681b] of this title.
(b)
Accuracy of report. Whenever a consumer reporting agency
prepares a consumer report it shall follow reasonable
procedures to assure maximum possible accuracy of the
information concerning the individual about whom the report
relates.
(c)
Disclosure of consumer reports by users allowed. A consumer
reporting agency may not prohibit a user of a consumer report
furnished by the agency on a consumer from disclosing the
contents of the report to the consumer, if adverse action
against the consumer has been taken by the user based in whole
or in part on the
report.
(d)
Notice to users and furnishers of information.
(1)
Notice requirement. A consumer reporting agency shall provide
to any person
(A)
who regularly and in the ordinary course of business furnishes
information to the agency with respect to any consumer;
or
(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
(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
(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--
(B)
the agency or department certifies in writing to the person
reselling the report that nondisclosure is necessary to
protect classified information or the safety of persons
employed by or contracting with, or undergoing investigation
for work or contracting with the agency or
department.
§ 608.
Disclosures to governmental agencies [15
U.S.C. § 1681f]
Notwithstanding
the provisions of section 604 [§ 1681b] of this title, a
consumer reporting agency may furnish identifying information
respecting any consumer, limited to his name, address, former
addresses, places of employment, or former places of
employment, to a governmental agency.
§ 609.
Disclosures to consumers [15
U.S.C. § 1681g]
(a)
Information on file; sources; report recipients. Every
consumer reporting agency shall, upon request, and subject to
610(a)(1) [§ 1681h], clearly and accurately disclose to
the consumer:
(1)
All information in the consumer's file at the time of the
request, except that nothing in this paragraph shall be
construed to require a consumer reporting agency to disclose
to a consumer any information concerning credit scores or any
other risk scores or predictors relating to the
consumer.
(2)
The sources of the information; except that the sources of
information acquired solely for use in preparing an
investigative consumer report and actually used for no other
purpose need not be disclosed: Provided, That in the event an
action is brought under this title, such sources shall be
available to the plaintiff under appropriate discovery
procedures in the court in which the action is
brought.
(3)(A)
Identification of each person (including each end-user
identified under section 607(e)(1) [§ 1681e]) that
procured a consumer report
(i)
for employment purposes, during the 2-year period preceding
the date on which the request is made; or
(ii)
for any other purpose, during the 1-year period preceding the
date on which the request is made.
(B)
An identification of a person under subparagraph (A) shall
include
(i)
the name of the person or, if applicable, the trade name
(written in full) under which such person conducts business;
and
(ii)
upon request of the consumer, the address and telephone number
of the person.
(C)
Subparagraph (A) does not apply if--
(i)
the end user is an agency or department of the United States
Government that procures the report from the person for
purposes of determining the eligibility of the consumer to
whom the report relates to receive access or continued access
to classified information (as defined in section
604(b)(4)(E)(i)); and
(ii)
the head of the agency or department makes a written finding
as prescribed under section 604(b)(4)(A).
(4)
The dates, original payees, and amounts of any checks upon
which is based any adverse characterization of the consumer,
included in the file at the time of the
disclosure.
(5)
A record of all inquiries received by the agency during the
1-year period preceding the request that identified the
consumer in connection with a credit or insurance transaction
that was not initiated by the consumer.
(b)
Exempt information. The requirements of subsection (a) of this
section respecting the disclosure of sources of information
and the recipients of consumer reports do not apply to
information received or consumer reports furnished prior to
the effective date of this title except to the extent that the
matter involved is contained in the files of the consumer
reporting agency on that date.
(c)
Summary of rights required to be included with disclosure.
(1)
Summary of rights. A consumer reporting agency shall provide
to a consumer, with each written disclosure by the agency to
the consumer under this section
(D)
a statement that the consumer may have additional rights under
State law and that the consumer may wish to contact a State or
local consumer protection agency or a State attorney general
to learn of those rights; and
(E)
a statement that a consumer reporting agency is not required
to remove accurate derogatory information from a consumer's
file, unless the information is outdated under section 605
[§ 1681c] or cannot be verified.
(3)
Form of summary of rights. For purposes of this subsection and
any disclosure by a consumer reporting agency required under
this title with respect to consumers' rights, the Federal
Trade Commission (after consultation with each Federal agency
referred to in section 621(b) [§ 1681s]) shall prescribe
the form and content of any such disclosure of the rights of
consumers required under this title. A consumer reporting
agency shall be in compliance with this subsection if it
provides disclosures under paragraph (1) that are
substantially similar to the Federal Trade Commission
prescription under this paragraph.
(4)
Effectiveness. No disclosures shall be required under this
subsection until the date on which the Federal Trade
Commission prescribes the form and content of such disclosures
under paragraph (3).
§ 610.
Conditions and form of disclosure to consumers [15
U.S.C. § 1681h]
(a) In
general.
(1)
Proper identification. A consumer reporting agency shall
require, as a condition of making the disclosures required
under section 609 [§ 1681g], that the consumer furnish
proper identification.
(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
(ii)
available from the agency.
(2)
Form. A consumer may specify pursuant to paragraph (1) that
disclosures under section 609 [§ 1681g] shall be made
(B)
by telephone, if the consumer has made a written request for
disclosure by telephone;
(C)
by electronic means, if available from the agency;
or
(D)
by any other reasonable means that is available from the
agency.
(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. (a)
Reinvestigations of disputed information.
(1)
Reinvestigation required.
(A)
In general. If the completeness or accuracy of any item of
information contained in a consumer's file at a consumer
reporting agency is disputed by the consumer and the consumer
notifies the agency directly of such dispute, the agency shall
reinvestigate free of charge and record the current status of
the disputed information, or delete the item from the file in
accordance with paragraph (5), before the end of the 30-day
period beginning on the date on which the agency receives the
notice of the dispute from the consumer.
(B)
Extension of period to reinvestigate. Except as provided in
subparagraph (C), the 30-day period described in subparagraph
(A) may be extended for not more than 15 additional days if
the consumer reporting agency receives information from the
consumer during that 30-day period that is relevant to the
reinvestigation.
(C)
Limitations on extension of period to reinvestigate.
Subparagraph (B) shall not apply to any reinvestigation in
which, during the 30-day period described in subparagraph (A),
the information that is the subject of the reinvestigation is
found to be inaccurate or incomplete or the consumer reporting
agency determines that the information cannot be
verified.
(2)
Prompt notice of dispute to furnisher of information.
(A)
In general. Before the expiration of the 5-business-day period
beginning on the date on which a consumer reporting agency
receives notice of a dispute from any consumer in accordance
with paragraph (1), the agency shall provide notification of
the dispute to any person who provided any item of information
in dispute, at the address and in the manner established with
the person. The notice shall include all relevant information
regarding the dispute that the agency has received from the
consumer.
(B)
Provision of other information from consumer. The consumer
reporting agency shall promptly provide to the person who
provided the information in dispute all relevant information
regarding the dispute that is received by the agency from the
consumer after the period referred to in subparagraph (A) and
before the end of the period referred to in paragraph
(1)(A).
(3)
Determination that dispute is frivolous or irrelevant.
(A)
In general. Notwithstanding paragraph (1), a consumer
reporting agency may terminate a reinvestigation of
information disputed by a consumer under that paragraph if the
agency reasonably determines that the dispute by the consumer
is frivolous or irrelevant, including by reason of a failure
by a consumer to provide sufficient information to investigate
the disputed information.
(B)
Notice of determination. Upon making any determination in
accordance with subparagraph (A) that a dispute is frivolous
or irrelevant, a consumer reporting agency shall notify the
consumer of such determination not later than 5 business days
after making such determination, by mail or, if authorized by
the consumer for that purpose, by any other means available to
the agency.
(C)
Contents of notice. A notice under subparagraph (B) shall
include
(4)
Consideration of consumer information. In conducting any
reinvestigation under paragraph (1) with respect to disputed
information in the file of any consumer, the consumer
reporting agency shall review and consider all relevant
information submitted by the consumer in the period described
in paragraph (1)(A) with respect to such disputed
information.
(5)
Treatment of inaccurate or unverifiable information.
(A)
In general. If, after any reinvestigation under paragraph (1)
of any information disputed by a consumer, an item of the
information is found to be inaccurate or incomplete or cannot
be verified, the consumer reporting agency shall promptly
delete that item of information from the consumer's file or
modify that item of information, as appropriate, based on the
results of the reinvestigation.
(B)
Requirements relating to reinsertion of previously deleted
material.
(i)
Certification of accuracy of information. If any information
is deleted from a consumer's file pursuant to subparagraph
(A), the information may not be reinserted in the file by the
consumer reporting agency unless the person who furnishes the
information certifies that the information is complete and
accurate.
(ii)
Notice to consumer. If any information that has been deleted
from a consumer's file pursuant to subparagraph (A) is
reinserted in the file, the consumer reporting agency shall
notify the consumer of the reinsertion in writing not later
than 5 business days after the reinsertion or, if authorized
by the consumer for that purpose, by any other means available
to the agency.
(iii)
Additional information. As part of, or in addition to, the
notice under clause (ii), a consumer reporting agency shall
provide to a consumer in writing not later than 5 business
days after the date of the reinsertion
(I)
a statement that the disputed information has been
reinserted;
(II)
the business name and address of any furnisher of information
contacted and the telephone number of such furnisher, if
reasonably available, or of any furnisher of information that
contacted the consumer reporting agency, in connection with
the reinsertion of such information; and
(III)
a notice that the consumer has the right to add a statement to
the consumer's file disputing the accuracy or completeness of
the disputed information.
D)
Automated reinvestigation system. Any consumer reporting
agency that compiles and maintains files on consumers on a
nationwide basis shall implement an automated system through
which furnishers of information to that consumer reporting
agency may report the results of a reinvestigation that finds
incomplete or inaccurate information in a consumer's file to
other such consumer reporting agencies.
(6)
Notice of results of reinvestigation.
(A)
In general. A consumer reporting agency shall provide written
notice to a consumer of the results of a reinvestigation under
this subsection not later than 5 business days after the
completion of the reinvestigation, by mail or, if authorized
by the consumer for that purpose, by other means available to
the agency.
(B)
Contents. As part of, or in addition to, the notice under
subparagraph (A), a consumer reporting agency shall provide to
a consumer in writing before the expiration of the 5-day
period referred to in subparagraph (A)
(i)
a statement that the reinvestigation is
completed;
(ii)
a consumer report that is based upon the consumer's file as
that file is revised as a result of the
reinvestigation;
(iii)
a notice that, if requested by the consumer, a description of
the procedure used to determine the accuracy and completeness
of the information shall be provided to the consumer by the
agency, including the business name and address of any
furnisher of information contacted in connection with such
information and the telephone number of such furnisher, if
reasonably available;
(iv)
a notice that the consumer has the right to add a statement to
the consumer's file disputing the accuracy or completeness of
the information; and
(v)
a notice that the consumer has the right to request under
subsection (d) that the consumer reporting agency furnish
notifications under that subsection.
(7)
Description of reinvestigation procedure. A consumer reporting
agency shall provide to a consumer a description referred to
in paragraph (6)(B)(iii) by not later than 15 days after
receiving a request from the consumer for that
description.
(8)
Expedited dispute resolution. If a dispute regarding an item
of information in a consumer's file at a consumer reporting
agency is resolved in accordance with paragraph (5)(A) by the
deletion of the disputed information by not later than 3
business days after the date on which the agency receives
notice of the dispute from the consumer in accordance with
paragraph (1)(A), then the agency shall not be required to
comply with paragraphs (2), (6), and (7) with respect to that
dispute if the agency
(A)
provides prompt notice of the deletion to the consumer by
telephone;
(B)
includes in that notice, or in a written notice that
accompanies a confirmation and consumer report provided in
accordance with subparagraph (C), a statement of the
consumer's right to request under subsection (d) that the
agency furnish notifications under that subsection;
and
(C)
provides written confirmation of the deletion and a copy of a
consumer report on the consumer that is based on the
consumer's file after the deletion, not later than 5 business
days after making the deletion.
(b)
Statement of dispute. If the reinvestigation does not resolve
the dispute, the consumer may file a brief statement setting
forth the nature of the dispute. The consumer reporting agency
may limit such statements to not more than one hundred words
if it provides the consumer with assistance in writing a clear
summary of the
dispute.
(c)
Notification of consumer dispute in subsequent consumer
reports. Whenever a statement of a dispute is filed, unless
there is reasonable grounds to believe that it is frivolous or
irrelevant, the consumer reporting agency shall, in any
subsequent consumer report containing the information in
question, clearly note that it is disputed by the consumer and
provide either the consumer's statement or a clear and
accurate codification or summary thereof.
(d)
Notification of deletion of disputed information. Following
any deletion of information which is found to be inaccurate or
whose accuracy can no longer be verified or any notation as to
disputed information, the consumer reporting agency shall, at
the request of the consumer, furnish notification that the
item has been deleted or the statement, codification or
summary pursuant to subsection (b) or (c) of this section to
any person specifically designated by the consumer who has
within two years prior thereto received a consumer report for
employment purposes, or within six months prior thereto
received a consumer report for any other purpose, which
contained the deleted or disputed information.
§ 612.
Charges for certain disclosures [15
U.S.C. § 1681j]
(a)
Reasonable charges allowed for certain disclosures.
(1)
In general. Except as provided in subsections (b), (c), and
(d), a consumer reporting agency may impose a reasonable
charge on a consumer
(A)
for making a disclosure to the consumer pursuant to section
609 [§ 1681g], which charge
(i) shall not exceed $8;(3) and
(ii)
shall be indicated to the consumer before making the
disclosure; and
(B)
for furnishing, pursuant to 611(d) [§ 1681i], following a
reinvestigation under section 611(a) [§ 1681i], a
statement, codification, or summary to a person designated by
the consumer under that section after the 30-day period
beginning on the date of notification of the consumer under
paragraph (6) or (8) of section 611(a) [§ 1681i] with
respect to the reinvestigation, which charge
(i)
shall not exceed the charge that the agency would impose on
each designated recipient for a consumer report;
and
(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].
(1)
is unemployed and intends to apply for employment in the
60-day period beginning on the date on which the certification
is made;
(2)
is a recipient of public welfare assistance;
or
(3)
has reason to believe that the file on the consumer at the
agency contains inaccurate information due to
fraud.
(d)
Other charges prohibited. A consumer reporting agency shall
not impose any charge on a consumer for providing any
notification required by this title or making any disclosure
required by this title, except as authorized by subsection
(a).
§ 613.
Public record information for employment
purposes [15
U.S.C. § 1681k]
(a) In
general. A consumer reporting agency which furnishes a
consumer report for employment purposes and which for that
purpose compiles and reports items of information on consumers
which are matters of public record and are likely to have an
adverse effect upon a consumer's ability to obtain employment
shall
(1)
at the time such public record information is reported to the
user of such consumer report, notify the consumer of the fact
that public record information is being reported by the
consumer reporting agency, together with the name and address
of the person to whom such information is being reported;
or
(2)
maintain strict procedures designed to insure that whenever
public record information which is likely to have an adverse
effect on a consumer's ability to obtain employment is
reported it is complete and up to date. For purposes of this
paragraph, items of public record relating to arrests,
indictments, convictions, suits, tax liens, and outstanding
judgments shall be considered up to date if the current public
record status of the item at the time of the report is
reported.
(b) Exemption for national security
investigations. Subsection (a) does not apply in the case of
an agency or department of the United States Government that
seeks to obtain and use a consumer
report for employment purposes, if the head of the agency or
department makes a written finding as prescribed under section
604(b)(4)(A).
§ 614.
Restrictions on investigative consumer
reports [15
U.S.C.
§ 1681l]
Whenever
a consumer reporting agency prepares an investigative consumer
report, no adverse information in the consumer report (other
than information which is a matter of public record) may be
included in a subsequent consumer report unless such adverse
information has been verified in the process of making such
subsequent consumer report, or the adverse information was
received within the three-month period preceding the date the
subsequent report is furnished.
§ 615.
Requirements on users of consumer
reports [15
U.S.C. § 1681m]
(a)
Duties of users taking adverse actions on the basis of
information contained in consumer reports. If any person takes
any adverse action with respect to any consumer that is based
in whole or in part on any information contained in a consumer
report, the person shall
(1)
provide oral, written, or electronic notice of the adverse
action to the consumer;
(2)
provide to the consumer orally, in writing, or electronically
(A)
the name, address, and telephone number of the consumer
reporting agency (including a toll-free telephone number
established by the agency if the agency compiles and maintains
files on consumers on a nationwide basis) that furnished the
report to the person; and
(B)
a statement that the consumer reporting agency did not make
the decision to take the adverse action and is unable to
provide the consumer the specific reasons why the adverse
action was taken; and
(3)
provide to the consumer an oral, written, or electronic notice
of the consumer's right
(A)
to obtain, under section 612 [§ 1681j], a free copy of a
consumer report on the consumer from the consumer reporting
agency referred to in paragraph (2), which notice shall
include an indication of the 60-day period under that section
for obtaining such a copy; and
(B)
to dispute, under section 611 [§ 1681i], with a consumer
reporting agency the accuracy or completeness of any
information in a consumer report furnished by the
agency.
(b)
Adverse action based on information obtained from third
parties other than consumer reporting agencies.
(1)
In general. Whenever credit for personal, family, or household
purposes involving a consumer is denied or the charge for such
credit is increased either wholly or partly because of
information obtained from a person other than a consumer
reporting agency bearing upon the consumer's credit
worthiness, credit standing, credit capacity, character,
general reputation, personal characteristics, or mode of
living, the user of such information shall, within a
reasonable period of time, upon the consumer's written request
for the reasons for such adverse action received within sixty
days after learning of such adverse action, disclose the
nature of the information to the consumer. The user of such
information shall clearly and accurately disclose to the
consumer his right to make such written request at the time
such adverse action is communicated to the
consumer.
(2)
Duties of person taking certain actions based on information
provided by affiliate.
(B)
Action described. An action referred to in subparagraph (A) is
an adverse action described in section 603(k)(1)(A) [§ 1681a],
taken in connection with a transaction initiated by the
consumer, or any adverse action described in clause (i) or
(ii) of section 603(k)(1)(B)
[§ 1681a].
(C)
Information described. Information referred to in subparagraph
(A)
(i)
except as provided in clause (ii), is information that
(II)
bears on the credit worthiness, credit standing, credit
capacity, character, general reputation, personal
characteristics, or mode of living of the consumer;
and
(I)
information solely as to transactions or experiences between
the consumer and the person furnishing the information;
or
(II)
information in a consumer report.
(c)
Reasonable procedures to assure compliance. No person shall be
held liable for any violation of this section if he shows by a
preponderance of the evidence that at the time of the alleged
violation he maintained reasonable procedures to assure
compliance with the provisions of this
section.
(d) Duties of users making written credit or
insurance solicitations on the
basis of information contained in consumer files.
(1)
In general. Any person who uses a consumer report on any
consumer in connection with any credit or insurance
transaction that is not initiated by the consumer, that is
provided to that person under section 604(c)(1)(B)
[§ 1681b], shall provide with each written solicitation
made to the consumer regarding the transaction a clear and
conspicuous statement that
(A)
information contained in the consumer's consumer report was
used in connection with the transaction;
(B)
the consumer received the offer of credit or insurance because
the consumer satisfied the criteria for credit worthiness or
insurability under which the consumer was selected for the
offer;
(D)
the consumer has a right to prohibit information contained in
the consumer's file with any consumer reporting agency from
being used in connection with any credit or insurance
transaction that is not initiated by the consumer;
and
(E)
the consumer may exercise the right referred to in
subparagraph (D) by notifying a notification system
established under section 604(e)
[§ 1681b].
(2)
Disclosure of address and telephone number. A statement under
paragraph (1) shall include the address and toll-free
telephone number of the appropriate notification system
established under section 604(e)
[§ 1681b].
(3)
Maintaining criteria on file. A person who makes an offer of
credit or insurance to a consumer under a credit or insurance
transaction described in paragraph (1) shall maintain on file
the criteria used to select the consumer to receive the offer,
all criteria bearing on credit worthiness or insurability, as
applicable, that are the basis for determining whether or not
to extend credit or insurance pursuant to the offer, and any
requirement for the furnishing of collateral as a condition of
the extension of credit or insurance, until the expiration of
the 3-year period beginning on the date on which the offer is
made to the consumer.
(4)
Authority of federal agencies regarding unfair or deceptive
acts or practices not affected. This section is not intended
to affect the authority of any Federal or State agency to
enforce a prohibition against unfair or deceptive acts or
practices, including the making of false or misleading
statements in connection with a credit or insurance
transaction that is not initiated by the
consumer.
§ 616.
Civil liability for willful
noncompliance [15
U.S.C. § 1681n]
(a) In
general. Any person who willfully fails to comply with any
requirement imposed under this title with respect to any
consumer is liable to that consumer in an amount equal to the
sum of
(1)(A)
any actual damages sustained by the consumer as a result of
the failure or damages of not less than $100 and not more than
$1,000; or
(B)
in the case of liability of a natural person for obtaining a
consumer report under false pretenses or knowingly without a
permissible purpose, actual damages sustained by the consumer
as a result of the failure or $1,000, whichever is
greater;
(2)
such amount of punitive damages as the court may allow; and
(3)
in the case of any successful action to enforce any liability
under this section, the costs of the action together with
reasonable attorney's fees as determined by the court.
(b)
Civil liability for knowing noncompliance. Any person who
obtains a consumer report from a consumer reporting agency
under false pretenses or knowingly without a permissible
purpose shall be liable to the consumer reporting agency for
actual damages sustained by the consumer reporting agency or
$1,000, whichever is
greater.
(c)
Attorney's fees. Upon a finding by the court that an
unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in bad
faith or for purposes of harassment, the court shall award to
the prevailing party attorney's fees reasonable in relation to
the work expended in responding to the pleading, motion, or
other paper.
§ 617.
Civil liability for negligent
noncompliance [15
U.S.C. § 1681o]
(a) In
general. Any person who is negligent in failing to comply with
any requirement imposed under this title with respect to any
consumer is liable to that consumer in an amount equal to the
sum of
(1)
any actual damages sustained by the consumer as a result of
the failure;
(2)
in the case of any successful action to enforce any liability
under this section, the costs of the action together with
reasonable attorney's fees as determined by the court.
(b)
Attorney's fees. On a finding by the court that an
unsuccessful pleading, motion, or other paper filed in
connection with an action under this section was filed in bad
faith or for purposes of harassment, the court shall award to
the prevailing party attorney's fees reasonable in relation to
the work expended in responding to the pleading, motion, or
other paper.
§ 618.
Jurisdiction of courts; limitation of
actions [15
U.S.C. § 1681p]
An action to enforce any liability created under
this title may be brought in any appropriate United States
district court without regard to the amount in controversy, or
in any other court of competent jurisdiction, within two years
from the date on which the
liability arises, except that where a defendant has materially
and willfully misrepresented any information required under
this title to be disclosed to an individual and the
information so misrepresented is material to the establishment
of the defendant's liability to that individual under this
title, the action may be brought at any time within two years
after discovery by the individual of the misrepresentation.
§ 619.
Obtaining information under false pretenses [15
U.S.C. § 1681q]
Any
person who knowingly and willfully obtains information on a
consumer from a consumer reporting agency under false
pretenses shall be fined under title 18, United States Code,
imprisoned for not more than 2 years, or both.
§ 620.
Unauthorized disclosures by officers or
employees [15
U.S.C. § 1681r]
Any
officer or employee of a consumer reporting agency who
knowingly and willfully provides information concerning an
individual from the agency's files to a person not authorized
to receive that information shall be fined under title 18,
United States Code, imprisoned for not more than 2 years, or
both.
§ 621.
Administrative enforcement [15
U.S.C. § 1681s]
(a) (1)
Enforcement by Federal Trade Commission. Compliance with the
requirements imposed under this title shall be enforced under
the Federal Trade Commission Act [15 U.S.C. §§ 41 et seq.] by
the Federal Trade Commission with respect to consumer
reporting agencies and all other persons subject thereto,
except to the extent that enforcement of the requirements
imposed under this title is specifically committed to some
other government agency under subsection (b) hereof. For the
purpose of the exercise by the Federal Trade Commission of its
functions and powers under the Federal Trade Commission Act, a
violation of any requirement or prohibition imposed under this
title shall constitute an unfair or deceptive act or practice
in commerce in violation of section 5(a) of the Federal Trade
Commission Act [15 U.S.C. § 45(a)] and shall be subject to
enforcement by the Federal Trade Commission under section 5(b)
thereof [15 U.S.C. § 45(b)] with respect to any consumer
reporting agency or person subject to enforcement by the
Federal Trade Commission pursuant to this subsection,
irrespective of whether that person is engaged in commerce or
meets any other jurisdictional tests in the Federal Trade
Commission Act. The Federal Trade Commission shall have such
procedural, investigative, and enforcement powers, including
the power to issue procedural rules in enforcing compliance
with the requirements imposed under this title and to require
the filing of reports, the production of documents, and the
appearance of witnesses as though the applicable terms and
conditions of the Federal Trade Commission Act were part of
this title. Any person violating any of the provisions of this
title shall be subject to the penalties and entitled to the
privileges and immunities provided in the Federal Trade
Commission Act as though the applicable terms and provisions
thereof were part of this title.
(2)(A)
In the event of a knowing violation, which constitutes a
pattern or practice of violations of this title, the
Commission may commence a civil action to recover a civil
penalty in a district court of the United States against any
person that violates this title. In such action, such person
shall be liable for a civil penalty of not more than $2,500
per violation.
(B)
In determining the amount of a civil penalty under
subparagraph (A), the court shall take into account the degree
of culpability, any history of prior such conduct, ability to
pay, effect on ability to continue to do business, and such
other matters as justice may require.
(3)
Notwithstanding paragraph (2), a court may not impose any
civil penalty on a person for a violation of section 623(a)(1)
[§ 1681s-2] unless the person has been enjoined from
committing the violation, or ordered not to commit the
violation, in an action or proceeding brought by or on behalf
of the Federal Trade Commission, and has violated the
injunction or order, and the court may not impose any civil
penalty for any violation occurring before the date of the
violation of the injunction or order.
(b)
Enforcement by other agencies. Compliance with the
requirements imposed under this title with respect to consumer
reporting agencies, persons who use consumer reports from such
agencies, persons who furnish information to such agencies,
and users of information that are subject to subsection (d) of
section 615 [§ 1681m] shall be enforced under
(1)
section 8 of the Federal Deposit Insurance Act [12 U.S.C. §
1818], in the case of
(A)
national banks, and Federal branches and Federal agencies of
foreign banks, by the Office of the Comptroller of the
Currency;
(2)
section 8 of the Federal Deposit Insurance Act [12 U.S.C. §
1818], by the Director of the Office of Thrift Supervision, in
the case of a savings association the deposits of which are
insured by the Federal Deposit Insurance
Corporation;
(3)
the Federal Credit Union Act [12 U.S.C. §§ 1751 et seq.], by
the Administrator of the National Credit Union Administration
[National Credit Union Administration Board] with respect to
any Federal credit union;
(4)
subtitle IV of title 49 [49 U.S.C. §§ 10101 et seq.], by the
Secretary of Transportation, with respect to all carriers
subject to the jurisdiction of the Surface Transportation
Board;
(5)
the Federal Aviation Act of 1958 [49 U.S.C. Appx §§ 1301 et
seq.], by the Secretary of Transportation with respect to any
air carrier or foreign air carrier subject to that Act [49
U.S.C. Appx §§ 1301 et seq.]; and
(6)
the Packers and Stockyards Act, 1921 [7 U.S.C. §§ 181 et seq.]
(except as provided in section 406 of that Act [7 U.S.C. §§
226 and 227]), by the Secretary of Agriculture with respect to
any activities subject to that Act.
The
terms used in paragraph (1) that are not defined in this title
or otherwise defined in section 3(s) of the Federal Deposit
Insurance Act (12 U.S.C. §1813(s)) shall have the meaning
given to them in section 1(b) of the International Banking Act
of 1978 (12 U.S.C. § 3101).
(c)
State action for violations.
(1)
Authority of states. In addition to such other remedies as are
provided under State law, if the chief law enforcement officer
of a State, or an official or agency designated by a State,
has reason to believe that any person has violated or is
violating this title, the State
(A)
may bring an action to enjoin such violation in any
appropriate United States district court or in any other court
of competent jurisdiction;
(B)
subject to paragraph (5), may bring an action on behalf of the
residents of the State to recover
(A)
to intervene in the action;
(B)
upon so intervening, to be heard on all matters arising
therein;
(C)
to remove the action to the appropriate United States district
court; and
(D)
to file petitions for appeal.
(3)
Investigatory powers. For purposes of bringing any action
under this subsection, nothing in this subsection shall
prevent the chief law enforcement officer, or an official or
agency designated by a State, from exercising the powers
conferred on the chief law enforcement officer or such
official by the laws of such State to conduct investigations
or to administer oaths or affirmations or to compel the
attendance of witnesses or the production of documentary and
other evidence.
(4)
Limitation on state action while federal action pending. If
the Federal Trade Commission or the appropriate Federal
regulator has instituted a civil action or an administrative
action under section 8 of the Federal Deposit Insurance Act
for a violation of this title, no State may, during the
pendency of such action, bring an action under this section
against any defendant named in the complaint of the Commission
or the appropriate Federal regulator for any violation of this
title that is alleged in that complaint.
(A) Violation of injunction required. A State
may not bring an action against a person under paragraph
(1)(B) for a violation of section
623(a)(1) [§ 1681s-2], unless
(i)
the person has been enjoined from committing the violation, in
an action brought by the State under paragraph (1)(A);
and
(ii)
the person has violated the injunction.
(B)
Limitation on damages recoverable. In an action against a
person under paragraph (1)(B) for a violation of section
623(a)(1) [§ 1681s-2], a State may not recover any
damages incurred before the date of the violation of an
injunction on which the action is based.
(d)
Enforcement under other authority. For the purpose of the
exercise by any agency referred to in subsection (b) of this
section of its powers under any Act referred to in that
subsection, a violation of any requirement imposed under this
title shall be deemed to be a violation of a requirement
imposed under that Act. In addition to its powers under any
provision of law specifically referred to in subsection (b) of
this section, each of the agencies referred to in that
subsection may exercise, for the purpose of enforcing
compliance with any requirement imposed under this title any
other authority conferred on it by law.
(e)
Regulatory authority
(1)
The Federal banking agencies referred to in paragraphs (1) and
(2) of subsection (b) shall jointly prescribe such regulations
as necessary to carry out the purposes of this Act with
respect to any persons identified under paragraphs (1) and (2)
of subsection (b), and the Board of Governors of the Federal
Reserve System shall have authority to prescribe regulations
consistent with such joint regulations with respect to bank
holding companies and affiliates (other than depository
institutions and consumer reporting agencies) of such holding
companies.
(2)
The Board of the National Credit Union Administration shall
prescribe such regulations as necessary to carry out the
purposes of this Act with respect to any persons identified
under paragraph (3) of subsection (b).
§ 622.
Information on overdue child support
obligations [15
U.S.C. § 1681s-1]
Notwithstanding
any other provision of this title, a consumer reporting agency
shall include in any consumer report furnished by the agency
in accordance with section 604 [§ 1681b] of this title,
any information on the failure of the consumer to pay overdue
support which
(1)
is provided
(A)
to the consumer reporting agency by a State or local child
support enforcement agency; or
(B)
to the consumer reporting agency and verified by any local,
State, or Federal government agency; and
§ 623.
Responsibilities of furnishers of information to consumer
reporting agencies [15
U.S.C. § 1681s-2]
(a)
Duty of furnishers of information to provide accurate
information.
(1)
Prohibition.
(A)
Reporting information with actual knowledge of errors. A
person shall not furnish any information relating to a
consumer to any consumer reporting agency if the person knows
or consciously avoids knowing that the information is
inaccurate.
(B)
Reporting information after notice and confirmation of errors.
A person shall not furnish information relating to a consumer
to any consumer reporting agency if
(i)
the person has been notified by the consumer, at the address
specified by the person for such notices, that specific
information is inaccurate; and
(ii)
the information is, in fact, inaccurate.
(C)
No address requirement. A person who clearly and conspicuously
specifies to the consumer an address for notices referred to
in subparagraph (B) shall not be subject to subparagraph (A);
however, nothing in subparagraph (B) shall require a person to
specify such an address.
(2)
Duty to correct and update information. A person who
(A)
regularly and in the ordinary course of business furnishes
information to one or more consumer reporting agencies about
the person's transactions or experiences with any consumer;
and
(B)
has furnished to a consumer reporting agency information that
the person determines is not complete or accurate, shall
promptly notify the consumer reporting agency of that
determination and provide to the agency any corrections to
that information, or any additional information, that is
necessary to make the information provided by the person to
the agency complete and accurate, and shall not thereafter
furnish to the agency any of the information that remains not
complete or accurate.
(3)
Duty to provide notice of dispute. If the completeness or
accuracy of any information furnished by any person to any
consumer reporting agency is disputed to such person by a
consumer, the person may not furnish the information to any
consumer reporting agency without notice that such information
is disputed by the consumer.
(4)
Duty to provide notice of closed accounts. A person who
regularly and in the ordinary course of business furnishes
information to a consumer reporting agency regarding a
consumer who has a credit account with that person shall
notify the agency of the voluntary closure of the account by
the consumer, in information regularly furnished for the
period in which the account is closed.
(5)
Duty to provide notice of delinquency of accounts. A person
who furnishes information to a consumer reporting agency
regarding a delinquent account being placed for collection,
charged to profit or loss, or subjected to any similar action
shall, not later than 90 days after furnishing the
information, notify the agency of the month and year of the
commencement of the delinquency that immediately preceded the
action.
(b)
Duties of furnishers of information upon notice of dispute.
(1)
In general. After receiving notice pursuant to section
611(a)(2) [§ 1681i] of a dispute with regard to the
completeness or accuracy of any information provided by a
person to a consumer reporting agency, the person shall
(A)
conduct an investigation with respect to the disputed
information;
(B)
review all relevant information provided by the consumer
reporting agency pursuant to section 611(a)(2)
[§ 1681i];
(C)
report the results of the investigation to the consumer
reporting agency; and
(D)
if the investigation finds that the information is incomplete
or inaccurate, report those results to all other consumer
reporting agencies to which the person furnished the
information and that compile and maintain files on consumers
on a nationwide basis.
(2)
Deadline. A person shall complete all investigations, reviews,
and reports required under paragraph (1) regarding information
provided by the person to a consumer reporting agency, before
the expiration of the period under section 611(a)(1)
[§ 1681i] within which the consumer reporting agency is
required to complete actions required by that section
regarding that information.
(c)
Limitation on liability. Sections 616 and 617 [§§ 1681n
and 1681o] do not apply to any failure to comply with
subsection (a), except as provided in section 621(c)(1)(B)
[§ 1681s].
(d)
Limitation on enforcement. Subsection (a) shall be enforced
exclusively under section 621 [§ 1681s] by the Federal
agencies and officials and the State officials identified in
that section.
§ 624.
Relation to State laws [15
U.S.C. § 1681t]
(a) In
general. Except as provided in subsections (b) and (c), this
title does not annul, alter, affect, or exempt any person
subject to the provisions of this title from complying with
the laws of any State with respect to the collection,
distribution, or use of any information on consumers, except
to the extent that those laws are inconsistent with any
provision of this title, and then only to the extent of the
inconsistency.
(b)
General exceptions. No requirement or prohibition may be
imposed under the laws of any State
(1)
with respect to any subject matter regulated under
(A)
subsection (c) or (e) of section 604 [§ 1681b], relating
to the prescreening of consumer reports;
(B)
section 611 [§ 1681i], relating to the time by which a
consumer reporting agency must take any action, including the
provision of notification to a consumer or other person, in
any procedure related to the disputed accuracy of information
in a consumer's file, except that this subparagraph shall not
apply to any State law in effect on the date of enactment of
the Consumer Credit Reporting Reform Act of
1996;
(C)
subsections (a) and (b) of section 615 [§ 1681m],
relating to the duties of a person who takes any adverse
action with respect to a consumer;
(D)
section 615(d) [§ 1681m], relating to the duties of
persons who use a consumer report of a consumer in connection
with any credit or insurance transaction that is not initiated
by the consumer and that consists of a firm offer of credit or
insurance;
(E)
section 605 [§ 1681c], relating to information contained
in consumer reports, except that this subparagraph shall not
apply to any State law in effect on the date of enactment of
the Consumer Credit Reporting Reform Act of 1996;
or
(F)
section 623 [§ 1681s-2], relating to the responsibilities
of persons who furnish information to consumer reporting
agencies, except that this paragraph shall not apply
(i)
with respect to section 54A(a) of chapter 93 of the
Massachusetts Annotated Laws (as in effect on the date of
enactment of the Consumer Credit Reporting Reform Act of
1996); or
(ii)
with respect to section 1785.25(a) of the California Civil
Code (as in effect on the date of enactment of the Consumer
Credit Reporting Reform Act of 1996);
(2)
with respect to the exchange of information among persons
affiliated by common ownership or common corporate control,
except that this paragraph shall not apply with respect to
subsection (a) or (c)(1) of section 2480e of title 9, Vermont
Statutes Annotated (as in effect on the date of enactment of
the Consumer Credit Reporting Reform Act of 1996);
or
(3)
with respect to the form and content of any disclosure
required to be made under section 609(c)
[§ 1681g].
(c)
Definition of firm offer of credit or insurance.
Notwithstanding any definition of the term "firm offer of
credit or insurance" (or any equivalent term) under the laws
of any State, the definition of that term contained in section
603(l) [§ 1681a] shall be construed to apply in
the enforcement and interpretation of the laws of any State
governing consumer
reports.
(d)
Limitations. Subsections (b) and (c)
(1)
do not affect any settlement, agreement, or consent judgment
between any State Attorney General and any consumer reporting
agency in effect on the date of enactment of the Consumer
Credit Reporting Reform Act of 1996; and
(2)
do not apply to any provision of State law (including any
provision of a State constitution) that
(A)
is enacted after January 1, 2004;
(B)
states explicitly that the provision is intended to supplement
this title; and
(C)
gives greater protection to consumers than is provided under
this title.
§ 625.
Disclosures to FBI for counterintelligence
purposes [15
U.S.C. § 1681u]
(a) Identity of financial institutions.
Notwithstanding section 604 [§ 1681b] or any other
provision of this title, a consumer reporting agency shall
furnish to the Federal Bureau of Investigation the names and
addresses of all financial institutions (as that term is
defined in section 1101 of the Right to Financial Privacy Act
of 1978 [12 U.S.C. § 3401]) at which a consumer maintains or has maintained an
account, to the extent that information is in the files of the
agency, when presented with a written request for that
information, signed by the Director of the Federal Bureau of
Investigation, or the Director's designee in a position not
lower than Deputy Assistant Director at Bureau headquarters or
a Special Agent in Charge of a Bureau field office designated
by the Director, which certifies compliance with this section.
The Director or the Director's designee may make such a
certification only if the Director or the Director's designee
has determined in writing, that such information is sought for
the conduct of an authorized investigation to protect against
international terrorism or clandestine intelligence
activities, provided that such an investigation of a United
States person is not conducted solely upon the basis of
activities protected by the first amendment to the
Constitution of the United
States.
(b)
Identifying information. Notwithstanding the provisions of
section 604 [§ 1681b] or any other provision of this
title, a consumer reporting agency shall furnish identifying
information respecting a consumer, limited to name, address,
former addresses, places of employment, or former places of
employment, to the Federal Bureau of Investigation when
presented with a written request, signed by the Director or
the Director's designee, which certifies compliance with this
subsection. The Director or the Director's designee in a
position not lower than Deputy Assistant Director at Bureau
headquarters or a Special Agent in Charge of a Bureau field
office designated by the Director may make such a
certification only if the Director or the Director's designee
has determined in writing that such information is sought for
the conduct of an authorized investigation to protect against
international terrorism or clandestine intelligence
activities, provided that such an investigation of a United
States person is not conducted solely upon the basis of
activities protected by the first amendment to the
Constitution of the United
States.
(c)
Court order for disclosure of consumer reports.
Notwithstanding section 604 [§ 1681b] or any other
provision of this title, if requested in writing by the
Director of the Federal Bureau of Investigation, or a designee
of the Director in a position not lower than Deputy Assistant
Director at Bureau headquarters or a Special Agent in Charge
of a Bureau field office designated by the Director, a court
may issue an order ex parte directing a consumer reporting
agency to furnish a consumer report to the Federal Bureau of
Investigation, upon a showing in camera that the consumer
report is sought for the conduct of an authorized
investigation to protect against international terrorism or
clandestine intelligence activities, provided that such an
investigation of a United States person is not conducted
solely upon the basis of activities protected by the first
amendment to the Constitution of the United
States.
The
terms of an order issued under this subsection shall not
disclose that the order is issued for purposes of a
counterintelligence investigation.
(d)
Confidentiality. No consumer reporting agency or officer,
employee, or agent of a consumer reporting agency shall
disclose to any person, other than those officers, employees,
or agents of a consumer reporting agency necessary to fulfill
the requirement to disclose information to the Federal Bureau
of Investigation under this section, that the Federal Bureau
of Investigation has sought or obtained the identity of
financial institutions or a consumer report respecting any
consumer under subsection (a), (b), or (c), and no consumer
reporting agency or officer, employee, or agent of a consumer
reporting agency shall include in any consumer report any
information that would indicate that the Federal Bureau of
Investigation has sought or obtained such information or a
consumer report.
(e)
Payment of fees. The Federal Bureau of Investigation shall,
subject to the availability of appropriations, pay to the
consumer reporting agency assembling or providing report or
information in accordance with procedures established under
this section a fee for reimbursement for such costs as are
reasonably necessary and which have been directly incurred in
searching, reproducing, or transporting books, papers,
records, or other data required or requested to be produced
under this section.
(f)
Limit on dissemination. The Federal Bureau of Investigation
may not disseminate information obtained pursuant to this
section outside of the Federal Bureau of Investigation, except
to other Federal agencies as may be necessary for the approval
or conduct of a foreign counterintelligence investigation, or,
where the information concerns a person subject to the Uniform
Code of Military Justice, to appropriate investigative
authorities within the military department concerned as may be
necessary for the conduct of a joint foreign
counterintelligence
investigation.
(g) Rules of construction. Nothing in this
section shall be construed to prohibit information from being
furnished by the Federal Bureau of Investigation pursuant to a
subpoena or court order, in connection with a judicial or
administrative proceeding to
enforce the provisions of this Act. Nothing in this section
shall be construed to authorize or permit the withholding of
information from the
Congress.
(h)
Reports to Congress. On a semiannual basis, the Attorney
General shall fully inform the Permanent Select Committee on
Intelligence and the Committee on Banking, Finance and Urban
Affairs of the House of Representatives, and the Select
Committee on Intelligence and the Committee on Banking,
Housing, and Urban Affairs of the Senate concerning all
requests made pursuant to subsections (a), (b), and
(c).
(i)
Damages. Any agency or department of the United States
obtaining or disclosing any consumer reports, records, or
information contained therein in violation of this section is
liable to the consumer to whom such consumer reports, records,
or information relate in an amount equal to the sum of
(1)
$100, without regard to the volume of consumer reports,
records, or information involved;
(2)
any actual damages sustained by the consumer as a result of
the disclosure;
(3)
if the violation is found to have been willful or intentional,
such punitive damages as a court may allow;
and
(4)
in the case of any successful action to enforce liability
under this subsection, the costs of the action, together with
reasonable attorney fees, as determined by the
court.
(j)
Disciplinary actions for violations. If a court determines
that any agency or department of the United States has
violated any provision of this section and the court finds
that the circumstances surrounding the violation raise
questions of whether or not an officer or employee of the
agency or department acted willfully or intentionally with
respect to the violation, the agency or department shall
promptly initiate a proceeding to determine whether or not
disciplinary action is warranted against the officer or
employee who was responsible for the
violation.
(k)
Good-faith exception. Notwithstanding any other provision of
this title, any consumer reporting agency or agent or employee
thereof making disclosure of consumer reports or identifying
information pursuant to this subsection in good-faith reliance
upon a certification of the Federal Bureau of Investigation
pursuant to provisions of this section shall not be liable to
any person for such disclosure under this title, the
constitution of any State, or any law or regulation of any
State or any political subdivision of any
State.
(l)
Limitation of remedies. Notwithstanding any other provision of
this title, the remedies and sanctions set forth in this
section shall be the only judicial remedies and sanctions for
violation of this section.
(m)
Injunctive relief. In addition to any other remedy contained
in this section, injunctive relief shall be available to
require compliance with the procedures of this section. In the
event of any successful action under this subsection, costs
together with reasonable attorney fees, as determined by the
court, may be recovered.
§ 626.
Disclosures to governmental agencies for counterterrorism
purposes [15
U.S.C. §1681v]
(a)
Disclosure. Notwithstanding section 604 or any other provision
of this title, a consumer reporting agency shall furnish a
consumer report of a consumer and all other information in a
consumer's file to a government agency authorized to conduct
investigations of, or intelligence or counterintelligence
activities or analysis related to, international terrorism
when presented with a written certification by such government
agency that such information is necessary for the agency's
conduct or such investigation, activity or analysis.
(b)
Form of certification. The certification described in
subsection (a) shall be signed by a supervisory official
designated by the head of a Federal agency or an officer of a
Federal agency whose appointment to office is required to be
made by the President, by and with the advice and consent of
the Senate.
(c)
Confidentiality. No consumer reporting agency, or officer,
employee, or agent of such consumer reporting agency, shall
disclose to any person, or specify in any consumer report,
that a government agency has sought or obtained access to
information under subsection
(a).
(d)
Rule of construction. Nothing in section 625 shall be
construed to limit the authority of the Director of the
Federal Bureau of Investigation under this
section.
(e)
Safe harbor. Notwithstanding any other provision of this
title, any consumer reporting agency or agent or employee
thereof making disclosure of consumer reports or other
information pursuant to this section in good-faith reliance
upon a certification of a governmental agency pursuant to the
provisions of this section shall not be liable to any person
for such disclosure under this subchapter, the constitution of
any State, or any law or regulation of any State or any
political subdivision of any
State.
Legislative
History
House
Reports:
No.
91-975 (Comm. on Banking and Currency) and
No.
91-1587 (Comm. of Conference)
Senate
Reports:
No.
91-1139 accompanying S. 3678 (Comm. on Banking and
Currency)
Congressional
Record, Vol. 116 (1970)
May
25, considered and passed House.
Sept.
18, considered and passed Senate, amended.
Oct.
9, Senate agreed to conference report.
Oct.
13, House agreed to conference report.
Enactment:
Public
Law No. 91-508 (October 26, 1970):
Amendments:
Public Law Nos.
95-473
(October 17, 1978)
95-598
(November 6, 1978)
98-443
(October 4, 1984)
101-73
(August 9, 1989)
102-242
(December 19, 1991)
102-537
(October 27, 1992)
102-550
(October 28, 1992)
103-325
(September 23, 1994)
104-88
(December 29, 1995)
104-93
(January 6, 1996)
104-193
(August 22, 1996)
104-208
(September 30, 1996)
105-107
(November 20, 1997)
105-347
(November 2, 1998)
106-102
(November 12, 1999)
107-56
(October 26, 2001)
Endnotes:
1.
The reporting periods have been lengthened for certain adverse
information pertaining to U.S. Government insured or
guaranteed student loans, or pertaining to national direct
student loans. See sections 430A(f) and 463(c)(3) of the
Higher Education Act of 1965, 20 U.S.C. 1080a(f) and 20 U.S.C.
1087cc(c)(3), respectively.
2.
Should read "paragraphs (4) and (5)...." Prior Section
605(a)(6) was amended and re-designated as Section 605(a)(5)
in November 1998.
3. The Federal Trade Commission increased the maximum allowable charge to $9.00, effective January 1, 2002. 66 Fed. Reg. 63545 (Dec. 7, 2001). |
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