SUBCHAPTER III—CREDIT REPORTING AGENCIES
§1681. Congressional findings and statement of purpose
(a) Accuracy and fairness of credit reporting
The Congress makes the following findings:
(1) The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system.
(2) An elaborate mechanism has been developed for investigating and evaluating the credit worthiness, credit standing, credit capacity, character, and general reputation of consumers.
(3) Consumer reporting agencies have assumed a vital role in assembling and evaluating consumer credit and other information on consumers.
(4) There is a need to insure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer's right to privacy.
(b) Reasonable procedures
It is the purpose of this subchapter 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 subchapter.
(
Statutory Notes and Related Subsidiaries
Effective Date of 2003 Amendment
"(1) before the end of the 2-month period beginning on the date of enactment of this Act [Dec. 4, 2003], the Board and the Commission shall jointly prescribe regulations in final form establishing effective dates for each provision of this Act; and
"(2) the regulations prescribed under paragraph (1) shall establish effective dates that are as early as possible, while allowing a reasonable time for the implementation of the provisions of this Act, but in no case shall any such effective date be later than 10 months after the date of issuance of such regulations in final form."
[For final rules adopted by Board of Governors of the Federal Reserve System and Federal Trade Commission establishing effective dates for provisions of
Effective Date
Short Title
This subchapter known as the "Fair Credit Reporting Act", see Short Title note set out under
Study of Effects of Credit Scores and Credit-Based Insurance Scores on Availability and Affordability of Financial Products
"(a)
"(1) the effects of the use of credit scores and credit-based insurance scores on the availability and affordability of financial products and services, including credit cards, mortgages, auto loans, and property and casualty insurance;
"(2) the statistical relationship, utilizing a multivariate analysis that controls for prohibited factors under the Equal Credit Opportunity Act [
"(3) the extent to which, if any, the use of credit scoring models, credit scores, and credit-based insurance scores impact on the availability and affordability of credit and insurance to the extent information is currently available or is available through proxies, by geography, income, ethnicity, race, color, religion, national origin, age, sex, marital status, and creed, including the extent to which the consideration or lack of consideration of certain factors by credit scoring systems could result in negative or differential treatment of protected classes under the Equal Credit Opportunity Act, and the extent to which, if any, the use of underwriting systems relying on these models could achieve comparable results through the use of factors with less negative impact; and
"(4) the extent to which credit scoring systems are used by businesses, the factors considered by such systems, and the effects of variables which are not considered by such systems.
"(b)
"(c)
"(1)
"(2)
FTC Study of Issues Relating to the Fair Credit Reporting Act
"(a)
"(1)
"(2)
"(A) the efficacy of increasing the number of points of identifying information that a credit reporting agency is required to match to ensure that a consumer is the correct individual to whom a consumer report relates before releasing a consumer report to a user, including—
"(i) the extent to which requiring additional points of such identifying information to match would—
"(I) enhance the accuracy of credit reports; and
"(II) combat the provision of incorrect consumer reports to users;
"(ii) the extent to which requiring an exact match of the first and last name, social security number, and address and ZIP Code of the consumer would enhance the likelihood of increasing credit report accuracy; and
"(iii) the effects of allowing consumer reporting agencies to use partial matches of social security numbers and name recognition software on the accuracy of credit reports;
"(B) requiring notification to consumers when negative information has been added to their credit reports, including—
"(i) the potential impact of such notification on the ability of consumers to identify errors on their credit reports; and
"(ii) the potential impact of such notification on the ability of consumers to remove fraudulent information from their credit reports;
"(C) the effects of requiring that a consumer who has experienced an adverse action based on a credit report receives a copy of the same credit report that the creditor relied on in taking the adverse action, including—
"(i) the extent to which providing such reports to consumers would increase the ability of consumers to identify errors in their credit reports; and
"(ii) the extent to which providing such reports to consumers would increase the ability of consumers to remove fraudulent information from their credit reports;
"(D) any common financial transactions that are not generally reported to the consumer reporting agencies, but would provide useful information in determining the credit worthiness of consumers; and
"(E) any actions that might be taken within a voluntary reporting system to encourage the reporting of the types of transactions described in subparagraph (D).
"(3)
"(b)
FTC Study of the Accuracy of Consumer Reports
"(a)
"(b)
"(1)
"(2)
"(3)
Definitions
"(1) the term 'Board' means the Board of Governors of the Federal Reserve System;
"(2) the term 'Commission', other than as used in title V [
"(3) the terms 'consumer', 'consumer report', 'consumer reporting agency', 'creditor', 'Federal banking agencies', and 'financial institution' have the same meanings as in section 603 of the Fair Credit Reporting Act [
"(4) the term 'affiliates' means persons that are related by common ownership or affiliated by corporate control."
§1681a. Definitions; rules of construction
(a) Definitions and rules of construction set forth in this section are applicable for the purposes of this subchapter.
(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)
(1)
(A) credit or insurance to be used primarily for personal, family, or household purposes;
(B) employment purposes; or
(C) any other purpose authorized under
(2)
(A) subject to
(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
(D) a communication described in subsection (o) or (x).1
(3)
(A) medical information;
(B) an individualized list or description based on the payment transactions of the consumer for medical products or services; or
(C) an aggregate list of identified consumers based on payment transactions for medical products or services.
(e) The term "investigative consumer report" means a consumer report or portion thereof in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any such items of information. However, such information shall not include specific factual information on a consumer's credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when such information was obtained directly from a creditor of the consumer or from the consumer.
(f) The term "consumer reporting agency" means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.
(g) The term "file", when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.
(h) The term "employment purposes" when used in connection with a consumer report means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee.
(i)
(1) means information or data, whether oral or recorded, in any form or medium, created by or derived from a health care provider or the consumer, that relates to—
(A) the past, present, or future physical, mental, or behavioral health or condition of an individual;
(B) the provision of health care to an individual; or
(C) the payment for the provision of health care to an individual.2
(2) does not include the age or gender of a consumer, demographic information about the consumer, including a consumer's residence address or e-mail address, or any other information about a consumer that does not relate to the physical, mental, or behavioral health or condition of a consumer, including the existence or value of any insurance policy.
(j)
(1)
(2)
(k)
(1)
(A) has the same meaning as in
(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
(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
(II) adverse to the interests of the consumer.
(2)
(l)
(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)
(1) reviewing the account or insurance policy; or
(2) collecting the account.
(n)
(o)
(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)
(1) Public record information.
(2) Credit account information from persons who furnish that information regularly and in the ordinary course of business.
(q)
(1)
(A) is on active duty (as defined in
(B) is assigned to service away from the usual duty station of the consumer.
(2)
(A) notifies all prospective users of a consumer report relating to the consumer that the consumer may be a victim of fraud, including identity theft, or is an active duty military consumer, as applicable; and
(B) is presented in a manner that facilitates a clear and conspicuous view of the statement described in subparagraph (A) by any person requesting such consumer report.
(3)
(4)
(A) that alleges an identity theft;
(B) that is a copy of an official, valid report filed by a consumer with an appropriate Federal, State, or local law enforcement agency, including the United States Postal Inspection Service, or such other government agency deemed appropriate by the Bureau; and
(C) the filing of which subjects the person filing the report to criminal penalties relating to the filing of false information if, in fact, the information in the report is false.
(5)
(r)
(1)
(A) a credit card issuer, in the case of a credit card; and
(B) a debit card issuer, in the case of a debit card.
(2)
(3)
(4)
(5)
(s)
(t)
(u)
(1) assembles and merges information contained in the database of another consumer reporting agency or multiple consumer reporting agencies concerning any consumer for purposes of furnishing such information to any third party, to the extent of such activities; and
(2) does not maintain a database of the assembled or merged information from which new consumer reports are produced.
(v)
(w) The term "Bureau" means the Bureau of Consumer Financial Protection.
(x)
(1) medical records or payments;
(2) residential or tenant history;
(3) check writing history;
(4) employment history; or
(5) insurance claims.
(y)
(1)
(A) but for subsection (d)(2)(D), the communication would be a consumer report;
(B) the communication is made to an employer in connection with an investigation of—
(i) suspected misconduct relating to employment; or
(ii) compliance with Federal, State, or local laws and regulations, the rules of a self-regulatory organization, or any preexisting written policies of the employer;
(C) the communication is not made for the purpose of investigating a consumer's credit worthiness, credit standing, or credit capacity; and
(D) the communication is not provided to any person except—
(i) to the employer or an agent of the employer;
(ii) to any Federal or State officer, agency, or department, or any officer, agency, or department of a unit of general local government;
(iii) to any self-regulatory organization with regulatory authority over the activities of the employer or employee;
(iv) as otherwise required by law; or
(v) pursuant to
(2)
(3)
(z)
(aa)
(1) means a medical collection debt of a veteran owed to a non-Department of Veterans Affairs health care provider that was submitted to the Department for payment for health care authorized by the Department of Veterans Affairs; and
(2) includes medical collection debt that the Department of Veterans Affairs has wrongfully charged a veteran.
(
Editorial Notes
References in Text
Subsection (x) of this section, referred to in subsec. (d)(2)(D), was redesignated subsection (y) of this section by
The Sarbanes-Oxley Act of 2002, referred to in subsec. (y)(3), is
Amendments
2018—Subsecs. (z), (aa).
2010—Subsec. (k)(2).
Subsec. (q)(3), (4).
Subsec. (v).
Subsecs. (w) to (y).
2003—Subsec. (d)(2).
Subsec. (d)(2)(A).
Subsec. (d)(2)(D).
Subsec. (d)(3).
Subsec. (i).
Subsecs. (q) to (w).
Subsec. (x).
1998—Subsec. (d)(2)(A)(iii).
Subsec. (o)(1).
Subsec. (o)(4).
1996—Subsec. (d).
Subsec. (k).
Subsec. (l).
Subsec. (m).
Subsec. (n).
Subsec. (o).
Subsec. (p).
1992—Subsec. (j).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2003 Amendment
Amendment by
"(1) the end of the 90-day period beginning on the date on which the regulations required under paragraph (5)(B) of such section 604(g) are issued in final form; or
"(2) the date specified in the regulations referred to in paragraph (1)."
Effective Date of 1998 Amendment
Effective Date of 1996 Amendment
"(a)
"(b)
Effective Date of 1992 Amendment
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
Construction of 1996 Amendment
1 See References in Text note below.
2 So in original. The period probably should be "; and".
§1681b. Permissible purposes of consumer reports
(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, a subpoena issued in connection with proceedings before a Federal grand jury, or a subpoena issued in accordance with
(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.
(G) executive departments and agencies in connection with the issuance of government-sponsored individually-billed travel charge cards.
(4) In response to a request by the head of a State or local child support enforcement agency (or a State or local government official authorized by the head of such an agency), if the person making the request certifies to the consumer reporting agency that—
(A) the consumer report is needed for the purpose of establishing an individual's capacity to make child support payments, determining the appropriate level of such payments, or enforcing a child support order, award, agreement, or judgment;
(B) the parentage of the consumer for the child to which the obligation relates has been established or acknowledged by the consumer in accordance with State laws under which the obligation arises (if required by those laws); and
(C) the consumer report will be kept confidential, will be used solely for a purpose described in subparagraph (A), and will not be used in connection with any other civil, administrative, or criminal proceeding, or for any other purpose.
(5) To an agency administering a State plan under
(6) To the Federal Deposit Insurance Corporation or the National Credit Union Administration as part of its preparation for its appointment or as part of its exercise of powers, as conservator, receiver, or liquidating agent for an insured depository institution or insured credit union under the Federal Deposit Insurance Act [
(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 subchapter, as prescribed by the Bureau under section 1681g(c)(3) 1 of this title.
(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 1681m(a)(3) 1 of this title; 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
(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 subchapter, as prescribed by the Bureau under section 1681g(c)(3) 1 of this title.
(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
(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 Bureau under section 1681g(c)(3) 1 of this title.
(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
(ii) as of the time at which the person procures the report or causes the report to be procured the only interaction between the consumer and the person in connection with that employment application has been by mail, telephone, computer, or other similar means.
(4) Exception for national security investigations
(A) In general
In the case of an agency or department of the United States Government which seeks to obtain and use a consumer report for employment purposes, paragraph (3) shall not apply to any adverse action by such agency or department which is based in part on such consumer report, if the head of such agency or department makes a written finding that—
(i) the consumer report is relevant to a national security investigation of such agency or department;
(ii) the investigation is within the jurisdiction of such agency or department;
(iii) there is reason to believe that compliance with paragraph (3) will—
(I) endanger the life or physical safety of any person;
(II) result in flight from prosecution;
(III) result in the destruction of, or tampering with, evidence relevant to the investigation;
(IV) result in the intimidation of a potential witness relevant to the investigation;
(V) result in the compromise of classified information; or
(VI) otherwise seriously jeopardize or unduly delay the investigation or another official proceeding.
(B) Notification of consumer upon conclusion of investigation
Upon the conclusion of a national security investigation described in subparagraph (A), or upon the determination that the exception under subparagraph (A) is no longer required for the reasons set forth in such subparagraph, the official exercising the authority in such subparagraph shall provide to the consumer who is the subject of the consumer report with regard to which such finding was made—
(i) a copy of such consumer report with any classified information redacted as necessary;
(ii) notice of any adverse action which is based, in part, on the consumer report; and
(iii) the identification with reasonable specificity of the nature of the investigation for which the consumer report was sought.
(C) Delegation by head of agency or department
For purposes of subparagraphs (A) and (B), the head of any agency or department of the United States Government may delegate his or her authorities under this paragraph to an official of such agency or department who has personnel security responsibilities and is a member of the Senior Executive Service or equivalent civilian or military rank.
(D) Definitions
For purposes of this paragraph, the following definitions shall apply:
(i) 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 consumer
(1) In general
A consumer reporting agency may furnish a consumer report relating to any consumer pursuant to subparagraph (A) or (C) of subsection (a)(3) in connection with any credit or insurance transaction that is not initiated by the consumer only if—
(A) the consumer authorizes the agency to provide such report to such person; or
(B)(i) the transaction consists of a firm offer of credit or insurance;
(ii) the consumer reporting agency has complied with subsection (e);
(iii) there is not in effect an election by the consumer, made in accordance with subsection (e), to have the consumer's name and address excluded from lists of names provided by the agency pursuant to this paragraph; and
(iv) the consumer report does not contain a date of birth that shows that the consumer has not attained the age of 21, or, if the date of birth on the consumer report shows that the consumer has not attained the age of 21, such consumer consents to the consumer reporting agency to such furnishing.
(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
(d) Reserved
(e) Election of consumer to be excluded from lists
(1) In general
A consumer may elect to have the consumer's name and address excluded from any list provided by a consumer reporting agency under subsection (c)(1)(B) in connection with a credit or insurance transaction that is not initiated by the consumer, by notifying the agency in accordance with paragraph (2) that the consumer does not consent to any use of a consumer report relating to the consumer in connection with any credit or insurance transaction that is not initiated by the consumer.
(2) Manner of notification
A consumer shall notify a consumer reporting agency under paragraph (1)—
(A) through the notification system maintained by the agency under paragraph (5); or
(B) by submitting to the agency a signed notice of election form issued by the agency for purposes of this subparagraph.
(3) Response of agency after notification through system
Upon receipt of notification of the election of a consumer under paragraph (1) through the notification system maintained by the agency under paragraph (5), a consumer reporting agency shall—
(A) inform the consumer that the election is effective only for the 5-year period following the election if the consumer does not submit to the agency a signed notice of election form issued by the agency for purposes of paragraph (2)(B); and
(B) provide to the consumer a notice of election form, if requested by the consumer, not later than 5 business days after receipt of the notification of the election through the system established under paragraph (5), in the case of a request made at the time the consumer provides notification through the system.
(4) Effectiveness of election
An election of a consumer under paragraph (1)—
(A) shall be effective with respect to a consumer reporting agency beginning 5 business days after the date on which the consumer notifies the agency in accordance with paragraph (2);
(B) shall be effective with respect to a consumer reporting agency—
(i) subject to subparagraph (C), during the 5-year period beginning 5 business days after the date on which the consumer notifies the agency of the election, in the case of an election for which a consumer notifies the agency only in accordance with paragraph (2)(A); or
(ii) until the consumer notifies the agency under subparagraph (C), in the case of an election for which a consumer notifies the agency in accordance with paragraph (2)(B);
(C) shall not be effective after the date on which the consumer notifies the agency, through the notification system established by the agency under paragraph (5), that the election is no longer effective; and
(D) shall be effective with respect to each affiliate of the agency.
(5) Notification system
(A) In general
Each consumer reporting agency that, under subsection (c)(1)(B), furnishes a consumer report in connection with a credit or insurance transaction that is not initiated by a consumer, shall—
(i) establish and maintain a notification system, including a toll-free telephone number, which permits any consumer whose consumer report is maintained by the agency to notify the agency, with appropriate identification, of the consumer's election to have the consumer's name and address excluded from any such list of names and addresses provided by the agency for such a transaction; and
(ii) publish by not later than 365 days after September 30, 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
(g) Protection of medical information
(1) Limitation on consumer reporting agencies
A consumer reporting agency shall not furnish for employment purposes, or in connection with a credit or insurance transaction, a consumer report that contains medical information (other than medical contact information treated in the manner required under
(A) if furnished in connection with an insurance transaction, the consumer affirmatively consents to the furnishing of the report;
(B) if furnished for employment purposes or in connection with a credit transaction—
(i) the information to be furnished is relevant to process or effect the employment or credit transaction; and
(ii) the consumer provides specific written consent for the furnishing of the report that describes in clear and conspicuous language the use for which the information will be furnished; or
(C) the information to be furnished pertains solely to transactions, accounts, or balances relating to debts arising from the receipt of medical services, products, or devises, where such information, other than account status or amounts, is restricted or reported using codes that do not identify, or do not provide information sufficient to infer, the specific provider or the nature of such services, products, or devices, as provided in
(2) Limitation on creditors
Except as permitted pursuant to paragraph (3)(C) or regulations prescribed under paragraph (5)(A), a creditor shall not obtain or use medical information (other than medical information treated in the manner required under
(3) Actions authorized by Federal law, insurance activities and regulatory determinations
(A) in connection with the business of insurance or annuities, including the activities described in section 18B of the model Privacy of Consumer Financial and Health Information Regulation issued by the National Association of Insurance Commissioners (as in effect on January 1, 2003);
(B) for any purpose permitted without authorization under the Standards for Individually Identifiable Health Information promulgated by the Department of Health and Human Services pursuant to the Health Insurance Portability and Accountability Act of 1996, or referred to under section 1179 of such Act,1 or described in
(C) as otherwise determined to be necessary and appropriate, by regulation or order, by the Bureau or the applicable State insurance authority (with respect to any person engaged in providing insurance or annuities).
(4) Limitation on redisclosure of medical information
Any person that receives medical information pursuant to paragraph (1) or (3) shall not disclose such information to any other person, except as necessary to carry out the purpose for which the information was initially disclosed, or as otherwise permitted by statute, regulation, or order.
(5) Regulations and effective date for paragraph (2)
(A) 2 Regulations required
The Bureau may, after notice and opportunity for comment, prescribe regulations that permit transactions under paragraph (2) that are determined to be necessary and appropriate to protect legitimate operational, transactional, risk, consumer, and other needs (and which shall include permitting actions necessary for administrative verification purposes), consistent with the intent of paragraph (2) to restrict the use of medical information for inappropriate purposes.
(6) Coordination with other laws
No provision of this subsection shall be construed as altering, affecting, or superseding the applicability of any other provision of Federal law relating to medical confidentiality.
(
Editorial Notes
References in Text
The Federal Deposit Insurance Act, referred to in subsec. (a)(6), is act Sept. 21, 1950, ch. 967, §2,
The Federal Credit Union Act, referred to in subsec. (a)(6), is act June 26, 1934, ch. 750,
Executive Order No. 12958, referred to in subsec. (b)(4)(D)(i), which was formerly set out under section 435 (now section 3161) of Title 50, War and National Defense, was revoked by Ex. Ord. No. 13526, §6.2(g), Dec. 29, 2009, 75 F.R. 731.
The Health Insurance Portability and Accountability Act of 1996, referred to in subsec. (g)(3)(B), is
Section 1179 of such Act, referred to in subsec. (g)(3)(B), probably means section 1179 of the Social Security Act, as added by section 262(a) of
Amendments
2021—Subsec. (a)(1).
2015—Subsec. (a)(4)(A).
Subsec. (a)(4)(B).
Subsec. (a)(4)(C), (D).
2010—Subsec. (b)(1)(B), (3)(A)(ii), (B)(ii).
Subsec. (g)(3)(C).
Subsec. (g)(5).
2009—Subsec. (c)(1)(B)(iv).
2007—Subsec. (a)(3)(G).
2006—Subsec. (a)(6).
2003—Subsec. (a).
Subsec. (b)(4)(D) to (F).
"(D)
"(E)
Subsec. (e)(3)(A), (4)(B)(i).
Subsec. (g).
Subsec. (g)(1).
Subsec. (g)(2).
2002—Subsec. (b)(4)(D).
Subsec. (b)(4)(E), (F).
1998—Subsec. (b)(1)(B).
Subsec. (b)(2).
"(A) 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
"(B) the consumer has authorized in writing the procurement of the report by that person."
Subsec. (b)(3).
"(A) a copy of the report; and
"(B) a description in writing of the rights of the consumer under this subchapter, as prescribed by the Federal Trade Commission under
Subsec. (g).
1997—Subsec. (b)(4).
1996—
Subsec. (b).
Subsecs. (c) to (e).
Subsec. (f).
Subsec. (g).
Pars. (4), (5).
1989—Par. (1).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2003 Amendments
Amendment by
Amendment by
Amendment by section 411 of
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1997 Amendment
Effective Date of 1996 Amendments
Amendment by
For effective date of amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
Public Awareness Campaign
[For definitions of terms used in section 213(d) of
Coordination With Federal Laws Relating to Medical Confidentiality
FTC Guidelines Regarding Prescreening for Insurance Transactions
1 See References in Text note below.
2 So in original. No subpar. (B) has been enacted.
§1681c. Requirements relating to information contained in consumer reports
(a) Information excluded from consumer reports
Except as authorized under subsection (b), no consumer reporting agency may make any consumer report containing any of the following items of information:
(1) Cases under title 11 or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.
(2) Civil suits, civil judgments, and records of arrest that, from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.
(3) Paid tax liens which, from date of payment, antedate the report by more than seven years.
(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.
(5) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years.
(6) The name, address, and telephone number of any medical information furnisher that has notified the agency of its status, unless—
(A) such name, address, and telephone number are restricted or reported using codes that do not identify, or provide information sufficient to infer, the specific provider or the nature of such services, products, or devices to a person other than the consumer; or
(B) the report is being provided to an insurance company for a purpose relating to engaging in the business of insurance other than property and casualty insurance.
(7) With respect to a consumer reporting agency described in
(8) With respect to a consumer reporting agency described in
(b) Exempted cases
The provisions of paragraphs (1) through (5) of subsection (a) are not applicable in the case of any consumer credit report to be used in connection with—
(1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more;
(2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or
(3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more.
(c) Running of reporting period
(1) In general
The 7-year period referred to in paragraphs (4) and (6) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.
(2) Effective date
Paragraph (1) shall apply only to items of information added to the file of a consumer on or after the date that is 455 days after September 30, 1996.
(d) Information required to be disclosed
(1) Title 11 information
Any consumer reporting agency that furnishes a consumer report that contains information regarding any case involving the consumer that arises under title 11 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 is withdrawn by the consumer before a final judgment, the consumer reporting agency shall include in the report that such case or filing was withdrawn upon receipt of documentation certifying such withdrawal.
(2) Key factor in credit score information
Any consumer reporting agency that furnishes a consumer report that contains any credit score or any other risk score or predictor on any consumer shall include in the report a clear and conspicuous statement that a key factor (as defined in
(e) Indication of closure of account by consumer
If a consumer reporting agency is notified pursuant to
(f) Indication of dispute by consumer
If a consumer reporting agency is notified pursuant to
(g) Truncation of credit card and debit card numbers
(1) In general
Except as otherwise provided in this subsection, no person that accepts credit cards or debit cards for the transaction of business shall print more than the last 5 digits of the card number or the expiration date upon any receipt provided to the cardholder at the point of the sale or transaction.
(2) Limitation
This subsection shall apply only to receipts that are electronically printed, and shall not apply to transactions in which the sole means of recording a credit card or debit card account number is by handwriting or by an imprint or copy of the card.
(3) Effective date
This subsection shall become effective—
(A) 3 years after December 4, 2003, with respect to any cash register or other machine or device that electronically prints receipts for credit card or debit card transactions that is in use before January 1, 2005; and
(B) 1 year after December 4, 2003, with respect to any cash register or other machine or device that electronically prints receipts for credit card or debit card transactions that is first put into use on or after January 1, 2005.
(h) Notice of discrepancy in address
(1) In general
If a person has requested a consumer report relating to a consumer from a consumer reporting agency described in
(2) Regulations
(A) Regulations required
The Bureau shall,,2 in consultation with the Federal banking agencies, the National Credit Union Administration, and the Federal Trade Commission,,2 prescribe regulations providing guidance regarding reasonable policies and procedures that a user of a consumer report should employ when such user has received a notice of discrepancy under paragraph (1).
(B) Policies and procedures to be included
The regulations prescribed under subparagraph (A) shall describe reasonable policies and procedures for use by a user of a consumer report—
(i) to form a reasonable belief that the user knows the identity of the person to whom the consumer report pertains; and
(ii) if the user establishes a continuing relationship with the consumer, and the user regularly and in the ordinary course of business furnishes information to the consumer reporting agency from which the notice of discrepancy pertaining to the consumer was obtained, to reconcile the address of the consumer with the consumer reporting agency by furnishing such address to such consumer reporting agency as part of information regularly furnished by the user for the period in which the relationship is established.
(
Editorial Notes
References in Text
The Bankruptcy Act, referred to in subsec. (a)(1), was act July 1, 1898, ch. 541,
Section 302(c)(5) of the Economic Growth, Regulatory Relief, and Consumer Protection Act, referred to in subsec. (a)(7), (8), is section 302(c)(5) of
Amendments
2018—Subsec. (a)(7), (8).
2010—Subsec. (h)(2)(A).
2003—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(6).
Subsec. (b).
Subsec. (d).
Subsec. (g).
Subsec. (h).
1998—Subsec. (a)(2).
Subsec. (a)(5), (6).
1996—
Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsecs. (e), (f).
1978—Subsec. (a)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2003 Amendment
Amendment by
Amendment by section 412 of
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
Verification of Veteran's Medical Debt
"(1)
"(A) the term 'consumer reporting agency' means a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act (
"(B) the terms 'veteran' and 'veteran's medical debt' have the meanings given those terms in section 603 of the Fair Credit Reporting Act (
"(2)
"(3)
"(A) sufficiently detailed and specific information to verify whether a debt being furnished to the consumer reporting agency is a veteran's medical debt;
"(B) access to verification information in a secure electronic format;
"(C) timely access to verification information; and
"(D) any other features that would promote the efficient, timely, and secure delivery of information that consumer reporting agencies could use to verify whether a debt is a veteran's medical debt.
"(4)
"(5)
1 So in original. Probably should be "which".
§1681c–1. Identity theft prevention; fraud alerts and active duty alerts
(a) One-call fraud alerts
(1) Initial alerts
Upon the direct request of a consumer, or an individual acting on behalf of or as a personal representative of a consumer, who asserts in good faith a suspicion that the consumer has been or is about to become a victim of fraud or related crime, including identity theft, a consumer reporting agency described in
(A) include a fraud alert in the file of that consumer, and also provide that alert along with any credit score generated in using that file, for a period of not less than 1 year, beginning on the date of such request, unless the consumer or such representative requests that such fraud alert be removed before the end of such period, and the agency has received appropriate proof of the identity of the requester for such purpose; and
(B) refer the information regarding the fraud alert under this paragraph to each of the other consumer reporting agencies described in
(2) Access to free reports
In any case in which a consumer reporting agency includes a fraud alert in the file of a consumer pursuant to this subsection, the consumer reporting agency shall—
(A) disclose to the consumer that the consumer may request a free copy of the file of the consumer pursuant to
(B) provide to the consumer all disclosures required to be made under
(b) Extended alerts
(1) In general
Upon the direct request of a consumer, or an individual acting on behalf of or as a personal representative of a consumer, who submits an identity theft report to a consumer reporting agency described in
(A) include a fraud alert in the file of that consumer, and also provide that alert along with any credit score generated in using that file, during the 7-year period beginning on the date of such request, unless the consumer or such representative requests that such fraud alert be removed before the end of such period and the agency has received appropriate proof of the identity of the requester for such purpose;
(B) during the 5-year period beginning on the date of such request, exclude the consumer from any list of consumers prepared by the consumer reporting agency and provided to any third party to offer credit or insurance to the consumer as part of a transaction that was not initiated by the consumer, unless the consumer or such representative requests that such exclusion be rescinded before the end of such period; and
(C) refer the information regarding the extended fraud alert under this paragraph to each of the other consumer reporting agencies described in
(2) Access to free reports
In any case in which a consumer reporting agency includes a fraud alert in the file of a consumer pursuant to this subsection, the consumer reporting agency shall—
(A) disclose to the consumer that the consumer may request 2 free copies of the file of the consumer pursuant to
(B) provide to the consumer all disclosures required to be made under
(c) Active duty alerts
Upon the direct request of an active duty military consumer, or an individual acting on behalf of or as a personal representative of an active duty military consumer, a consumer reporting agency described in
(1) include an active duty alert in the file of that active duty military consumer, and also provide that alert along with any credit score generated in using that file, during a period of not less than 12 months, or such longer period as the Bureau shall determine, by regulation, beginning on the date of the request, unless the active duty military consumer or such representative requests that such fraud alert be removed before the end of such period, and the agency has received appropriate proof of the identity of the requester for such purpose;
(2) during the 2-year period beginning on the date of such request, exclude the active duty military consumer from any list of consumers prepared by the consumer reporting agency and provided to any third party to offer credit or insurance to the consumer as part of a transaction that was not initiated by the consumer, unless the consumer requests that such exclusion be rescinded before the end of such period; and
(3) refer the information regarding the active duty alert to each of the other consumer reporting agencies described in
(d) Procedures
Each consumer reporting agency described in
(e) Referrals of alerts
Each consumer reporting agency described in
(1) paragraphs (1)(A) and (2) of subsection (a), in the case of a referral under subsection (a)(1)(B);
(2) paragraphs (1)(A), (1)(B), and (2) of subsection (b), in the case of a referral under subsection (b)(1)(C); and
(3) paragraphs (1) and (2) of subsection (c), in the case of a referral under subsection (c)(3).
(f) Duty of reseller to reconvey alert
A reseller shall include in its report any fraud alert or active duty alert placed in the file of a consumer pursuant to this section by another consumer reporting agency.
(g) Duty of other consumer reporting agencies to provide contact information
If a consumer contacts any consumer reporting agency that is not described in
(h) Limitations on use of information for credit extensions
(1) Requirements for initial and active duty alerts
(A) Notification
Each initial fraud alert and active duty alert under this section shall include information that notifies all prospective users of a consumer report on the consumer to which the alert relates that the consumer does not authorize the establishment of any new credit plan or extension of credit, other than under an open-end credit plan (as defined in section 1602(i) 1 of this title), in the name of the consumer, or issuance of an additional card on an existing credit account requested by a consumer, or any increase in credit limit on an existing credit account requested by a consumer, except in accordance with subparagraph (B).
(B) Limitation on users
(i) In general
No prospective user of a consumer report that includes an initial fraud alert or an active duty alert in accordance with this section may establish a new credit plan or extension of credit, other than under an open-end credit plan (as defined in section 1602(i) 1 of this title), in the name of the consumer, or issue an additional card on an existing credit account requested by a consumer, or grant any increase in credit limit on an existing credit account requested by a consumer, unless the user utilizes reasonable policies and procedures to form a reasonable belief that the user knows the identity of the person making the request.
(ii) Verification
If a consumer requesting the alert has specified a telephone number to be used for identity verification purposes, before authorizing any new credit plan or extension described in clause (i) in the name of such consumer, a user of such consumer report shall contact the consumer using that telephone number or take reasonable steps to verify the consumer's identity and confirm that the application for a new credit plan is not the result of identity theft.
(2) Requirements for extended alerts
(A) Notification
Each extended alert under this section shall include information that provides all prospective users of a consumer report relating to a consumer with—
(i) notification that the consumer does not authorize the establishment of any new credit plan or extension of credit described in clause (i), other than under an open-end credit plan (as defined in section 1602(i) 1 of this title), in the name of the consumer, or issuance of an additional card on an existing credit account requested by a consumer, or any increase in credit limit on an existing credit account requested by a consumer, except in accordance with subparagraph (B); and
(ii) a telephone number or other reasonable contact method designated by the consumer.
(B) Limitation on users
No prospective user of a consumer report or of a credit score generated using the information in the file of a consumer that includes an extended fraud alert in accordance with this section may establish a new credit plan or extension of credit, other than under an open-end credit plan (as defined in section 1602(i) 1 of this title), in the name of the consumer, or issue an additional card on an existing credit account requested by a consumer, or any increase in credit limit on an existing credit account requested by a consumer, unless the user contacts the consumer in person or using the contact method described in subparagraph (A)(ii) to confirm that the application for a new credit plan or increase in credit limit, or request for an additional card is not the result of identity theft.
(i) National security freeze
(1) Definitions
For purposes of this subsection:
(A) The term "consumer reporting agency" means a consumer reporting agency described in
(B) The term "proper identification" has the meaning of such term as used under
(C) The term "security freeze" means a restriction that prohibits a consumer reporting agency from disclosing the contents of a consumer report that is subject to such security freeze to any person requesting the consumer report.
(2) Placement of security freeze
(A) In general
Upon receiving a direct request from a consumer that a consumer reporting agency place a security freeze, and upon receiving proper identification from the consumer, the consumer reporting agency shall, free of charge, place the security freeze not later than—
(i) in the case of a request that is by toll-free telephone or secure electronic means, 1 business day after receiving the request directly from the consumer; or
(ii) in the case of a request that is by mail, 3 business days after receiving the request directly from the consumer.
(B) Confirmation and additional information
Not later than 5 business days after placing a security freeze under subparagraph (A), a consumer reporting agency shall—
(i) send confirmation of the placement to the consumer; and
(ii) inform the consumer of—
(I) the process by which the consumer may remove the security freeze, including a mechanism to authenticate the consumer; and
(II) the consumer's right described in
(C) Notice to third parties
A consumer reporting agency may advise a third party that a security freeze has been placed with respect to a consumer under subparagraph (A).
(3) Removal of security freeze
(A) In general
A consumer reporting agency shall remove a security freeze placed on the consumer report of a consumer only in the following cases:
(i) Upon the direct request of the consumer.
(ii) The security freeze was placed due to a material misrepresentation of fact by the consumer.
(B) Notice if removal not by request
If a consumer reporting agency removes a security freeze under subparagraph (A)(ii), the consumer reporting agency shall notify the consumer in writing prior to removing the security freeze.
(C) Removal of security freeze by consumer request
Except as provided in subparagraph (A)(ii), a security freeze shall remain in place until the consumer directly requests that the security freeze be removed. Upon receiving a direct request from a consumer that a consumer reporting agency remove a security freeze, and upon receiving proper identification from the consumer, the consumer reporting agency shall, free of charge, remove the security freeze not later than—
(i) in the case of a request that is by toll-free telephone or secure electronic means, 1 hour after receiving the request for removal; or
(ii) in the case of a request that is by mail, 3 business days after receiving the request for removal.
(D) Third-party requests
If a third party requests access to a consumer report of a consumer with respect to which a security freeze is in effect, where such request is in connection with an application for credit, and the consumer does not allow such consumer report to be accessed, the third party may treat the application as incomplete.
(E) Temporary removal of security freeze
Upon receiving a direct request from a consumer under subparagraph (A)(i), if the consumer requests a temporary removal of a security freeze, the consumer reporting agency shall, in accordance with subparagraph (C), remove the security freeze for the period of time specified by the consumer.
(4) Exceptions
A security freeze shall not apply to the making of a consumer report for use of the following:
(A) A person or entity, or a subsidiary, affiliate, or agent of that person or entity, or an assignee of a financial obligation owed by the consumer to that person or entity, or a prospective assignee of a financial obligation owed by the consumer to that person or entity in conjunction with the proposed purchase of the financial obligation, with which the consumer has or had prior to assignment an account or contract including a demand deposit account, or to whom the consumer issued a negotiable instrument, for the purposes of reviewing the account or collecting the financial obligation owed for the account, contract, or negotiable instrument. For purposes of this subparagraph, "reviewing the account" includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.
(B) Any Federal, State, or local agency, law enforcement agency, trial court, or private collection agency acting pursuant to a court order, warrant, or subpoena.
(C) A child support agency acting pursuant to part D of title IV of the Social Security Act (
(D) A Federal agency or a State or its agents or assigns acting to investigate fraud or acting to investigate or collect delinquent taxes or unpaid court orders or to fulfill any of its other statutory responsibilities, provided such responsibilities are consistent with a permissible purpose under
(E) By a person using credit information for the purposes described under
(F) Any person or entity administering a credit file monitoring subscription or similar service to which the consumer has subscribed.
(G) Any person or entity for the purpose of providing a consumer with a copy of the consumer's consumer report or credit score, upon the request of the consumer.
(H) Any person using the information in connection with the underwriting of insurance.
(I) Any person using the information for employment, tenant, or background screening purposes.
(J) Any person using the information for assessing, verifying, or authenticating a consumer's identity for purposes other than the granting of credit, or for investigating or preventing actual or potential fraud.
(5) Notice of rights
At any time a consumer is required to receive a summary of rights required under
"Consumers Have the Right To Obtain a Security Freeze
"You have a right to place a 'security freeze' on your credit report, which will prohibit a consumer reporting agency from releasing information in your credit report without your express authorization. The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gets access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, or any other account involving the extension of credit.
"As an alternative to a security freeze, you have the right to place an initial or extended fraud alert on your credit file at no cost. An initial fraud alert is a 1-year alert that is placed on a consumer's credit file. Upon seeing a fraud alert display on a consumer's credit file, a business is required to take steps to verify the consumer's identity before extending new credit. If you are a victim of identity theft, you are entitled to an extended fraud alert, which is a fraud alert lasting 7 years.
"A security freeze does not apply to a person or entity, or its affiliates, or collection agencies acting on behalf of the person or entity, with which you have an existing account that requests information in your credit report for the purposes of reviewing or collecting the account. Reviewing the account includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.".
(6) Webpage
(A) Consumer reporting agencies
A consumer reporting agency shall establish a webpage that—
(i) allows a consumer to request a security freeze;
(ii) allows a consumer to request an initial fraud alert;
(iii) allows a consumer to request an extended fraud alert;
(iv) allows a consumer to request an active duty fraud alert;
(v) allows a consumer to opt-out of the use of information in a consumer report to send the consumer a solicitation of credit or insurance, in accordance with
(vi) shall not be the only mechanism by which a consumer may request a security freeze.
(B) FTC
The Federal Trade Commission shall establish a single webpage that includes a link to each webpage established under subparagraph (A) within the Federal Trade Commission's website www.Identitytheft.gov, or a successor website.
(j) National protection for files and credit records of protected consumers
(1) Definitions
As used in this subsection:
(A) The term "consumer reporting agency" means a consumer reporting agency described in
(B) The term "protected consumer" means an individual who is—
(i) under the age of 16 years at the time a request for the placement of a security freeze is made; or
(ii) an incapacitated person or a protected person for whom a guardian or conservator has been appointed.
(C) The term "protected consumer's representative" means a person who provides to a consumer reporting agency sufficient proof of authority to act on behalf of a protected consumer.
(D) The term "record" means a compilation of information that—
(i) identifies a protected consumer;
(ii) is created by a consumer reporting agency solely for the purpose of complying with this subsection; and
(iii) may not be created or used to consider the protected consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.
(E) The term "security freeze" means a restriction that prohibits a consumer reporting agency from disclosing the contents of a consumer report that is the subject of such security freeze or, in the case of a protected consumer for whom the consumer reporting agency does not have a file, a record that is subject to such security freeze to any person requesting the consumer report for the purpose of opening a new account involving the extension of credit.
(F) The term "sufficient proof of authority" means documentation that shows a protected consumer's representative has authority to act on behalf of a protected consumer and includes—
(i) an order issued by a court of law;
(ii) a lawfully executed and valid power of attorney;
(iii) a document issued by a Federal, State, or local government agency in the United States showing proof of parentage, including a birth certificate; or
(iv) with respect to a protected consumer who has been placed in a foster care setting, a written communication from a county welfare department or its agent or designee, or a county probation department or its agent or designee, certifying that the protected consumer is in a foster care setting under its jurisdiction.
(G) The term "sufficient proof of identification" means information or documentation that identifies a protected consumer and a protected consumer's representative and includes—
(i) a social security number or a copy of a social security card issued by the Social Security Administration;
(ii) a certified or official copy of a birth certificate issued by the entity authorized to issue the birth certificate; or
(iii) a copy of a driver's license, an identification card issued by the motor vehicle administration, or any other government issued identification.
(2) Placement of security freeze for a protected consumer
(A) In general
Upon receiving a direct request from a protected consumer's representative that a consumer reporting agency place a security freeze, and upon receiving sufficient proof of identification and sufficient proof of authority, the consumer reporting agency shall, free of charge, place the security freeze not later than—
(i) in the case of a request that is by toll-free telephone or secure electronic means, 1 business day after receiving the request directly from the protected consumer's representative; or
(ii) in the case of a request that is by mail, 3 business days after receiving the request directly from the protected consumer's representative.
(B) Confirmation and additional information
Not later than 5 business days after placing a security freeze under subparagraph (A), a consumer reporting agency shall—
(i) send confirmation of the placement to the protected consumer's representative; and
(ii) inform the protected consumer's representative of the process by which the protected consumer may remove the security freeze, including a mechanism to authenticate the protected consumer's representative.
(C) Creation of file
If a consumer reporting agency does not have a file pertaining to a protected consumer when the consumer reporting agency receives a direct request under subparagraph (A), the consumer reporting agency shall create a record for the protected consumer.
(3) Prohibition on release of record or file of protected consumer
After a security freeze has been placed under paragraph (2)(A), and unless the security freeze is removed in accordance with this subsection, a consumer reporting agency may not release the protected consumer's consumer report, any information derived from the protected consumer's consumer report, or any record created for the protected consumer.
(4) Removal of a protected consumer security freeze
(A) In general
A consumer reporting agency shall remove a security freeze placed on the consumer report of a protected consumer only in the following cases:
(i) Upon the direct request of the protected consumer's representative.
(ii) Upon the direct request of the protected consumer, if the protected consumer is not under the age of 16 years at the time of the request.
(iii) The security freeze was placed due to a material misrepresentation of fact by the protected consumer's representative.
(B) Notice if removal not by request
If a consumer reporting agency removes a security freeze under subparagraph (A)(iii), the consumer reporting agency shall notify the protected consumer's representative in writing prior to removing the security freeze.
(C) Removal of freeze by request
Except as provided in subparagraph (A)(iii), a security freeze shall remain in place until a protected consumer's representative or protected consumer described in subparagraph (A)(ii) directly requests that the security freeze be removed. Upon receiving a direct request from the protected consumer's representative or protected consumer described in subparagraph (A)(ii) that a consumer reporting agency remove a security freeze, and upon receiving sufficient proof of identification and sufficient proof of authority, the consumer reporting agency shall, free of charge, remove the security freeze not later than—
(i) in the case of a request that is by toll-free telephone or secure electronic means, 1 hour after receiving the request for removal; or
(ii) in the case of a request that is by mail, 3 business days after receiving the request for removal.
(D) Temporary removal of security freeze
Upon receiving a direct request from a protected consumer or a protected consumer's representative under subparagraph (A)(i), if the protected consumer or protected consumer's representative requests a temporary removal of a security freeze, the consumer reporting agency shall, in accordance with subparagraph (C), remove the security freeze for the period of time specified by the protected consumer or protected consumer's representative.
(k) Credit monitoring
(1) Definitions
In this subsection:
(A) The term "active duty military consumer" includes a member of the National Guard.
(B) The term "National Guard" has the meaning given the term in
(2) Credit monitoring
A consumer reporting agency described in
(A) appropriate proof that the consumer is an active duty military consumer; and
(B) contact information of the consumer.
(3) Rulemaking
Not later than 1 year after May 24, 2018, the Federal Trade Commission shall promulgate regulations regarding the requirements of this subsection, which shall at a minimum include—
(A) a definition of an electronic credit monitoring service and material additions or modifications to the file of a consumer; and
(B) what constitutes appropriate proof.
(4) Applicability
(A)
(B) This subsection shall be enforced exclusively under
(
Editorial Notes
References in Text
The Social Security Act, referred to in subsec. (i)(4)(C), is act Aug. 14, 1935, ch. 531,
Amendments
2018—Subsec. (a)(1)(A).
Subsecs. (i), (j).
Subsec. (k).
2010—Subsecs. (c)(1), (g).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by section 302(d)(1) of
Effective Date of 2010 Amendment
Amendment by
Effective Date
Section subject to joint regulations establishing effective dates as prescribed by Federal Reserve Board and Federal Trade Commission, except as otherwise provided, see section 3 of
Regulations
Public Campaign To Prevent Identity Theft
[For definitions of terms used in section 151(b) of
1 See References in Text note below.
§1681c–2. Block of information resulting from identity theft
(a) Block
Except as otherwise provided in this section, a consumer reporting agency shall block the reporting of any information in the file of a consumer that the consumer identifies as information that resulted from an alleged identity theft, not later than 4 business days after the date of receipt by such agency of—
(1) appropriate proof of the identity of the consumer;
(2) a copy of an identity theft report;
(3) the identification of such information by the consumer; and
(4) a statement by the consumer that the information is not information relating to any transaction by the consumer.
(b) Notification
A consumer reporting agency shall promptly notify the furnisher of information identified by the consumer under subsection (a)—
(1) that the information may be a result of identity theft;
(2) that an identity theft report has been filed;
(3) that a block has been requested under this section; and
(4) of the effective dates of the block.
(c) Authority to decline or rescind
(1) In general
A consumer reporting agency may decline to block, or may rescind any block, of information relating to a consumer under this section, if the consumer reporting agency reasonably determines that—
(A) the information was blocked in error or a block was requested by the consumer in error;
(B) the information was blocked, or a block was requested by the consumer, on the basis of a material misrepresentation of fact by the consumer relevant to the request to block; or
(C) the consumer obtained possession of goods, services, or money as a result of the blocked transaction or transactions.
(2) Notification to consumer
If a block of information is declined or rescinded under this subsection, the affected consumer shall be notified promptly, in the same manner as consumers are notified of the reinsertion of information under
(3) Significance of block
For purposes of this subsection, if a consumer reporting agency rescinds a block, the presence of information in the file of a consumer prior to the blocking of such information is not evidence of whether the consumer knew or should have known that the consumer obtained possession of any goods, services, or money as a result of the block.
(d) Exception for resellers
(1) No reseller file
This section shall not apply to a consumer reporting agency, if the consumer reporting agency—
(A) is a reseller;
(B) is not, at the time of the request of the consumer under subsection (a), otherwise furnishing or reselling a consumer report concerning the information identified by the consumer; and
(C) informs the consumer, by any means, that the consumer may report the identity theft to the Bureau to obtain consumer information regarding identity theft.
(2) Reseller with file
The sole obligation of the consumer reporting agency under this section, with regard to any request of a consumer under this section, shall be to block the consumer report maintained by the consumer reporting agency from any subsequent use, if—
(A) the consumer, in accordance with the provisions of subsection (a), identifies, to a consumer reporting agency, information in the file of the consumer that resulted from identity theft; and
(B) the consumer reporting agency is a reseller of the identified information.
(3) Notice
In carrying out its obligation under paragraph (2), the reseller shall promptly provide a notice to the consumer of the decision to block the file. Such notice shall contain the name, address, and telephone number of each consumer reporting agency from which the consumer information was obtained for resale.
(e) Exception for verification companies
The provisions of this section do not apply to a check services company, acting as such, which issues authorizations for the purpose of approving or processing negotiable instruments, electronic fund transfers, or similar methods of payments, except that, beginning 4 business days after receipt of information described in paragraphs (1) through (3) of subsection (a), a check services company shall not report to a national consumer reporting agency described in
(f) Access to blocked information by law enforcement agencies
No provision of this section shall be construed as requiring a consumer reporting agency to prevent a Federal, State, or local law enforcement agency from accessing blocked information in a consumer file to which the agency could otherwise obtain access under this subchapter.
(
Editorial Notes
Amendments
2010—Subsec. (d)(1)(C).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by
Effective Date
Section subject to joint regulations establishing effective dates as prescribed by Federal Reserve Board and Federal Trade Commission, except as otherwise provided, see section 3 of
§1681c–3. Adverse information in cases of trafficking
(a) Definitions
In this section:
(1) Trafficking documentation
The term "trafficking documentation" means—
(A) documentation of—
(i) a determination that a consumer is a victim of trafficking made by a Federal, State, or Tribal governmental entity; or
(ii) by a court of competent jurisdiction; and
(B) documentation that identifies items of adverse information that should not be furnished by a consumer reporting agency because the items resulted from a severe form of trafficking in persons or sex trafficking of which the consumer is a victim.
(2) Trafficking Victims Protection Act of 2000 definitions
The terms "severe forms of trafficking in persons" and "sex trafficking" have the meanings given, respectively, in section 103 of the Trafficking Victims Protection Act of 2000 (
(3) Victim of trafficking
The term "victim of trafficking" means a person who is a victim of a severe form of trafficking in persons or sex trafficking.
(b) Adverse information
A consumer reporting agency may not furnish a consumer report containing any adverse item of information about a consumer that resulted from a severe form of trafficking in persons or sex trafficking if the consumer has provided trafficking documentation to the consumer reporting agency.
(c) Rulemaking
(1) In general
Not later than 180 days after December 27, 2021, the Director shall issue rules to implement subsection (a).
(2) Contents
The rules issued pursuant to paragraph (1) shall establish a method by which consumers shall submit trafficking documentation to consumer reporting agencies.
(
Statutory Notes and Related Subsidiaries
Effective Date
§1681d. Disclosure of investigative consumer reports
(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
(2) the person certifies or has certified to the consumer reporting agency that—
(A) the person has made the disclosures to the consumer required by paragraph (1); and
(B) the person will comply with subsection (b).
(b) Disclosure on request of nature and scope of investigation
Any person who procures or causes to be prepared an investigative consumer report on any consumer shall, upon written request made by the consumer within a reasonable period of time after the receipt by him of the disclosure required by subsection (a)(1), 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).
(d) Prohibitions
(1) Certification
A consumer reporting agency shall not prepare or furnish an investigative consumer report unless the agency has received a certification under subsection (a)(2) from the person who requested the report.
(2) Inquiries
A consumer reporting agency shall not make an inquiry for the purpose of preparing an investigative consumer report on a consumer for employment purposes if the making of the inquiry by an employer or prospective employer of the consumer would violate any applicable Federal or State equal employment opportunity law or regulation.
(3) Certain public record information
Except as otherwise provided in
(4) Certain adverse information
A consumer reporting agency shall not prepare or furnish an investigative consumer report on a consumer that contains information that is adverse to the interest of the consumer and that is obtained through a personal interview with a neighbor, friend, or associate of the consumer or with another person with whom the consumer is acquainted or who has knowledge of such item of information, unless—
(A) the agency has followed reasonable procedures to obtain confirmation of the information, from an additional source that has independent and direct knowledge of the information; or
(B) the person interviewed is the best possible source of the information.
(
Editorial Notes
Amendments
1996—Subsec. (a)(1)(B).
Subsec. (a)(2).
Subsec. (b).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
§1681e. Compliance procedures
(a) Identity and purposes of credit users
Every consumer reporting agency shall maintain reasonable procedures designed to avoid violations of
(b) Accuracy of report
Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.
(c) Disclosure of consumer reports by users allowed
A consumer reporting agency may not prohibit a user of a consumer report furnished by the agency on a consumer from disclosing the contents of the report to the consumer, if adverse action against the consumer has been taken by the user based in whole or in part on the report.
(d) Notice to users and furnishers of information
(1) Notice requirement
A consumer reporting agency shall provide to any person—
(A) who regularly and in the ordinary course of business furnishes information to the agency with respect to any consumer; or
(B) to whom a consumer report is provided by the agency;
a notice of such person's responsibilities under this subchapter.
(2) Content of notice
The Bureau shall prescribe the content of notices under paragraph (1), and a consumer reporting agency shall be in compliance with this subsection if it provides a notice under paragraph (1) that is substantially similar to the Bureau prescription under this paragraph.
(e) Procurement of consumer report for resale
(1) Disclosure
A person may not procure a consumer report for purposes of reselling the report (or any information in the report) unless the person discloses to the consumer reporting agency that originally furnishes the report—
(A) the identity of the end-user of the report (or information); and
(B) each permissible purpose under
(2) Responsibilities of procurers for resale
A person who procures a consumer report for purposes of reselling the report (or any information in the report) shall—
(A) establish and comply with reasonable procedures designed to ensure that the report (or information) is resold by the person only for a purpose for which the report may be furnished under
(i) identifies each end user of the resold report (or information);
(ii) certifies each purpose for which the report (or information) will be used; and
(iii) certifies that the report (or information) will be used for no other purpose; and
(B) before reselling the report, make reasonable efforts to verify the identifications and certifications made under subparagraph (A).
(3) Resale of consumer report to a Federal agency or department
Notwithstanding paragraph (1) or (2), a person who procures a consumer report for purposes of reselling the report (or any information in the report) shall not disclose the identity of the end-user of the report under paragraph (1) or (2) if—
(A) the end user is an agency or department of the United States Government which procures the report from the person for purposes of determining the eligibility of the consumer concerned to receive access or continued access to classified information (as defined in section 1681b(b)(4)(E)(i) 1 of this title); and
(B) the agency or department certifies in writing to the person reselling the report that nondisclosure is necessary to protect classified information or the safety of persons employed by or contracting with, or undergoing investigation for work or contracting with the agency or department.
(
Editorial Notes
References in Text
Amendments
2010—Subsec. (d)(2).
1997—Subsec. (e)(3).
1996—Subsecs. (c) to (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
1 See References in Text note below.
§1681f. Disclosures to governmental agencies
Notwithstanding the provisions of
(
Statutory Notes and Related Subsidiaries
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
§1681g. Disclosures to consumers
(a) Information on file; sources; report recipients
Every consumer reporting agency shall, upon request, and subject to
(1) All information in the consumer's file at the time of the request, except that—
(A) if the consumer to whom the file relates requests that the first 5 digits of the social security number (or similar identification number) of the consumer not be included in the disclosure and the consumer reporting agency has received appropriate proof of the identity of the requester, the consumer reporting agency shall so truncate such number in such disclosure; and
(B) nothing in this paragraph shall be construed to require a consumer reporting agency to disclose to a consumer any information concerning credit scores or any other risk scores or predictors relating to the consumer.
(2) The sources of the information; except that the sources of information acquired solely for use in preparing an investigative consumer report and actually used for no other purpose need not be disclosed: Provided, That in the event an action is brought under this subchapter, 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
(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 1681b(b)(4)(E)(i) 1 of this title); and
(ii) the head of the agency or department makes a written finding as prescribed under
(4) The dates, original payees, and amounts of any checks upon which is based any adverse characterization of the consumer, included in the file at the time of the disclosure.
(5) A record of all inquiries received by the agency during the 1-year period preceding the request that identified the consumer in connection with a credit or insurance transaction that was not initiated by the consumer.
(6) If the consumer requests the credit file and not the credit score, a statement that the consumer may request and obtain a credit score.
(b) Exempt information
The requirements of subsection (a) 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 subchapter except to the extent that the matter involved is contained in the files of the consumer reporting agency on that date.
(c) Summary of rights to obtain and dispute information in consumer reports and to obtain credit scores
(1) Commission 2 summary of rights required
(A) In general
The Commission 2 shall prepare a model summary of the rights of consumers under this subchapter.
(B) Content of summary
The summary of rights prepared under subparagraph (A) shall include a description of—
(i) the right of a consumer to obtain a copy of a consumer report under subsection (a) from each consumer reporting agency;
(ii) the frequency and circumstances under which a consumer is entitled to receive a consumer report without charge under
(iii) the right of a consumer to dispute information in the file of the consumer under
(iv) the right of a consumer to obtain a credit score from a consumer reporting agency, and a description of how to obtain a credit score;
(v) the method by which a consumer can contact, and obtain a consumer report from, a consumer reporting agency without charge, as provided in the regulations of the Bureau prescribed under section 211(c) 1 of the Fair and Accurate Credit Transactions Act of 2003; and
(vi) the method by which a consumer can contact, and obtain a consumer report from, a consumer reporting agency described in section 1681a(w) 1 of this title, as provided in the regulations of the Bureau prescribed under
(C) Availability of summary of rights
The Commission 2 shall—
(i) actively publicize the availability of the summary of rights prepared under this paragraph;
(ii) conspicuously post on its Internet website the availability of such summary of rights; and
(iii) promptly make such summary of rights available to consumers, on request.
(2) Summary of rights required to be included with agency disclosures
A consumer reporting agency shall provide to a consumer, with each written disclosure by the agency to the consumer under this section—
(A) the summary of rights prepared by the Bureau under paragraph (1);
(B) in the case of a consumer reporting agency described in
(C) a list of all Federal agencies responsible for enforcing any provision of this subchapter, and the address and any appropriate phone number of each such agency, in a form that will assist the consumer in selecting the appropriate agency;
(D) a statement that the consumer may have additional rights under State law, and that the consumer may wish to contact a State or local consumer protection agency or a State attorney general (or the equivalent thereof) to learn of those rights; and
(E) a statement that a consumer reporting agency is not required to remove accurate derogatory information from the file of a consumer, unless the information is outdated under
(d) Summary of rights of identity theft victims
(1) In general
The Commission,2 in consultation with the Federal banking agencies and the National Credit Union Administration, shall prepare a model summary of the rights of consumers under this subchapter with respect to the procedures for remedying the effects of fraud or identity theft involving credit, an electronic fund transfer, or an account or transaction at or with a financial institution or other creditor.
(2) Summary of rights and contact information
Beginning 60 days after the date on which the model summary of rights is prescribed in final form by the Bureau pursuant to paragraph (1), if any consumer contacts a consumer reporting agency and expresses a belief that the consumer is a victim of fraud or identity theft involving credit, an electronic fund transfer, or an account or transaction at or with a financial institution or other creditor, the consumer reporting agency shall, in addition to any other action that the agency may take, provide the consumer with a summary of rights that contains all of the information required by the Bureau under paragraph (1), and information on how to contact the Bureau to obtain more detailed information.
(e) Information available to victims
(1) In general
For the purpose of documenting fraudulent transactions resulting from identity theft, not later than 30 days after the date of receipt of a request from a victim in accordance with paragraph (3), and subject to verification of the identity of the victim and the claim of identity theft in accordance with paragraph (2), a business entity that has provided credit to, provided for consideration products, goods, or services to, accepted payment from, or otherwise entered into a commercial transaction for consideration with, a person who has allegedly made unauthorized use of the means of identification of the victim, shall provide a copy of application and business transaction records in the control of the business entity, whether maintained by the business entity or by another person on behalf of the business entity, evidencing any transaction alleged to be a result of identity theft to—
(A) the victim;
(B) any Federal, State, or local government law enforcement agency or officer specified by the victim in such a request; or
(C) any law enforcement agency investigating the identity theft and authorized by the victim to take receipt of records provided under this subsection.
(2) Verification of identity and claim
Before a business entity provides any information under paragraph (1), unless the business entity, at its discretion, otherwise has a high degree of confidence that it knows the identity of the victim making a request under paragraph (1), the victim shall provide to the business entity—
(A) as proof of positive identification of the victim, at the election of the business entity—
(i) the presentation of a government-issued identification card;
(ii) personally identifying information of the same type as was provided to the business entity by the unauthorized person; or
(iii) personally identifying information that the business entity typically requests from new applicants or for new transactions, at the time of the victim's request for information, including any documentation described in clauses (i) and (ii); and
(B) as proof of a claim of identity theft, at the election of the business entity—
(i) a copy of a police report evidencing the claim of the victim of identity theft; and
(ii) a properly completed—
(I) copy of a standardized affidavit of identity theft developed and made available by the Bureau; or
(II) an 3 affidavit of fact that is acceptable to the business entity for that purpose.
(3) Procedures
The request of a victim under paragraph (1) shall—
(A) be in writing;
(B) be mailed to an address specified by the business entity, if any; and
(C) if asked by the business entity, include relevant information about any transaction alleged to be a result of identity theft to facilitate compliance with this section including—
(i) if known by the victim (or if readily obtainable by the victim), the date of the application or transaction; and
(ii) if known by the victim (or if readily obtainable by the victim), any other identifying information such as an account or transaction number.
(4) No charge to victim
Information required to be provided under paragraph (1) shall be so provided without charge.
(5) Authority to decline to provide information
A business entity may decline to provide information under paragraph (1) if, in the exercise of good faith, the business entity determines that—
(A) this subsection does not require disclosure of the information;
(B) after reviewing the information provided pursuant to paragraph (2), the business entity does not have a high degree of confidence in knowing the true identity of the individual requesting the information;
(C) the request for the information is based on a misrepresentation of fact by the individual requesting the information relevant to the request for information; or
(D) the information requested is Internet navigational data or similar information about a person's visit to a website or online service.
(6) Limitation on liability
Except as provided in
(7) Limitation on civil liability
No business entity may be held civilly liable under any provision of Federal, State, or other law for disclosure, made in good faith pursuant to this subsection.
(8) No new recordkeeping obligation
Nothing in this subsection creates an obligation on the part of a business entity to obtain, retain, or maintain information or records that are not otherwise required to be obtained, retained, or maintained in the ordinary course of its business or under other applicable law.
(9) Rule of construction
(A) In general
No provision of subtitle A of title V of
(B) Limitation
Except as provided in subparagraph (A), nothing in this subsection permits a business entity to disclose information, including information to law enforcement under subparagraphs (B) and (C) of paragraph (1), that the business entity is otherwise prohibited from disclosing under any other applicable provision of Federal or State law.
(10) Affirmative defense
In any civil action brought to enforce this subsection, it is an affirmative defense (which the defendant must establish by a preponderance of the evidence) for a business entity to file an affidavit or answer stating that—
(A) the business entity has made a reasonably diligent search of its available business records; and
(B) the records requested under this subsection do not exist or are not reasonably available.
(11) Definition of victim
For purposes of this subsection, the term "victim" means a consumer whose means of identification or financial information has been used or transferred (or has been alleged to have been used or transferred) without the authority of that consumer, with the intent to commit, or to aid or abet, an identity theft or a similar crime.
(12) Effective date
This subsection shall become effective 180 days after December 4, 2003.
(13) Effectiveness study
Not later than 18 months after December 4, 2003, the Comptroller General of the United States shall submit a report to Congress assessing the effectiveness of this provision.
(f) Disclosure of credit scores
(1) In general
Upon the request of a consumer for a credit score, a consumer reporting agency shall supply to the consumer a statement indicating that the information and credit scoring model may be different than the credit score that may be used by the lender, and a notice which shall include—
(A) the current credit score of the consumer or the most recent credit score of the consumer that was previously calculated by the credit reporting agency for a purpose related to the extension of credit;
(B) the range of possible credit scores under the model used;
(C) all of the key factors that adversely affected the credit score of the consumer in the model used, the total number of which shall not exceed 4, subject to paragraph (9);
(D) the date on which the credit score was created; and
(E) the name of the person or entity that provided the credit score or credit file upon which the credit score was created.
(2) Definitions
For purposes of this subsection, the following definitions shall apply:
(A) Credit score
The term "credit score"—
(i) means a numerical value or a categorization derived from a statistical tool or modeling system used by a person who makes or arranges a loan to predict the likelihood of certain credit behaviors, including default (and the numerical value or the categorization derived from such analysis may also be referred to as a "risk predictor" or "risk score"); and
(ii) does not include—
(I) any mortgage score or rating of an automated underwriting system that considers one or more factors in addition to credit information, including the loan to value ratio, the amount of down payment, or the financial assets of a consumer; or
(II) any other elements of the underwriting process or underwriting decision.
(B) Key factors
The term "key factors" means all relevant elements or reasons adversely affecting the credit score for the particular individual, listed in the order of their importance based on their effect on the credit score.
(3) Timeframe and manner of disclosure
The information required by this subsection shall be provided in the same timeframe and manner as the information described in subsection (a).
(4) Applicability to certain uses
This subsection shall not be construed so as to compel a consumer reporting agency to develop or disclose a score if the agency does not—
(A) distribute scores that are used in connection with residential real property loans; or
(B) develop scores that assist credit providers in understanding the general credit behavior of a consumer and predicting the future credit behavior of the consumer.
(5) Applicability to credit scores developed by another person
(A) In general
This subsection shall not be construed to require a consumer reporting agency that distributes credit scores developed by another person or entity to provide a further explanation of them, or to process a dispute arising pursuant to
(B) Exception
This paragraph shall not apply to a consumer reporting agency that develops or modifies scores that are developed by another person or entity.
(6) Maintenance of credit scores not required
This subsection shall not be construed to require a consumer reporting agency to maintain credit scores in its files.
(7) Compliance in certain cases
In complying with this subsection, a consumer reporting agency shall—
(A) supply the consumer with a credit score that is derived from a credit scoring model that is widely distributed to users by that consumer reporting agency in connection with residential real property loans or with a credit score that assists the consumer in understanding the credit scoring assessment of the credit behavior of the consumer and predictions about the future credit behavior of the consumer; and
(B) a statement indicating that the information and credit scoring model may be different than that used by the lender.
(8) Fair and reasonable fee
A consumer reporting agency may charge a fair and reasonable fee, as determined by the Bureau, for providing the information required under this subsection.
(9) Use of enquiries as a key factor
If a key factor that adversely affects the credit score of a consumer consists of the number of enquiries made with respect to a consumer report, that factor shall be included in the disclosure pursuant to paragraph (1)(C) without regard to the numerical limitation in such paragraph.
(g) Disclosure of credit scores by certain mortgage lenders
(1) In general
Any person who makes or arranges loans and who uses a consumer credit score, as defined in subsection (f), in connection with an application initiated or sought by a consumer for a closed end loan or the establishment of an open end loan for a consumer purpose that is secured by 1 to 4 units of residential real property (hereafter in this subsection referred to as the "lender") shall provide the following to the consumer as soon as reasonably practicable:
(A) Information required under subsection (f)
(i) In general
A copy of the information identified in subsection (f) that was obtained from a consumer reporting agency or was developed and used by the user of the information.
(ii) Notice under subparagraph (D)
In addition to the information provided to it by a third party that provided the credit score or scores, a lender is only required to provide the notice contained in subparagraph (D).
(B) Disclosures in case of automated underwriting system
(i) In general
If a person that is subject to this subsection uses an automated underwriting system to underwrite a loan, that person may satisfy the obligation to provide a credit score by disclosing a credit score and associated key factors supplied by a consumer reporting agency.
(ii) Numerical credit score
However, if a numerical credit score is generated by an automated underwriting system used by an enterprise, and that score is disclosed to the person, the score shall be disclosed to the consumer consistent with subparagraph (C).
(iii) Enterprise defined
For purposes of this subparagraph, the term "enterprise" has the same meaning as in paragraph (6) of
(C) Disclosures of credit scores not obtained from a consumer reporting agency
A person that is subject to the provisions of this subsection and that uses a credit score, other than a credit score provided by a consumer reporting agency, may satisfy the obligation to provide a credit score by disclosing a credit score and associated key factors supplied by a consumer reporting agency.
(D) Notice to home loan applicants
A copy of the following notice, which shall include the name, address, and telephone number of each consumer reporting agency providing a credit score that was used:
"notice to the home loan applicant
"In connection with your application for a home loan, the lender must disclose to you the score that a consumer reporting agency distributed to users and the lender used in connection with your home loan, and the key factors affecting your credit scores.
"The credit score is a computer generated summary calculated at the time of the request and based on information that a consumer reporting agency or lender has on file. The scores are based on data about your credit history and payment patterns. Credit scores are important because they are used to assist the lender in determining whether you will obtain a loan. They may also be used to determine what interest rate you may be offered on the mortgage. Credit scores can change over time, depending on your conduct, how your credit history and payment patterns change, and how credit scoring technologies change.
"Because the score is based on information in your credit history, it is very important that you review the credit-related information that is being furnished to make sure it is accurate. Credit records may vary from one company to another.
"If you have questions about your credit score or the credit information that is furnished to you, contact the consumer reporting agency at the address and telephone number provided with this notice, or contact the lender, if the lender developed or generated the credit score. The consumer reporting agency plays no part in the decision to take any action on the loan application and is unable to provide you with specific reasons for the decision on a loan application.
"If you have questions concerning the terms of the loan, contact the lender.".
(E) Actions not required under this subsection
This subsection shall not require any person to—
(i) explain the information provided pursuant to subsection (f);
(ii) disclose any information other than a credit score or key factors, as defined in subsection (f);
(iii) disclose any credit score or related information obtained by the user after a loan has closed;
(iv) provide more than 1 disclosure per loan transaction; or
(v) provide the disclosure required by this subsection when another person has made the disclosure to the consumer for that loan transaction.
(F) No obligation for content
(i) In general
The obligation of any person pursuant to this subsection shall be limited solely to providing a copy of the information that was received from the consumer reporting agency.
(ii) Limit on liability
No person has liability under this subsection for the content of that information or for the omission of any information within the report provided by the consumer reporting agency.
(G) Person defined as excluding enterprise
As used in this subsection, the term "person" does not include an enterprise (as defined in paragraph (6) of
(2) Prohibition on disclosure clauses null and void
(A) In general
Any provision in a contract that prohibits the disclosure of a credit score by a person who makes or arranges loans or a consumer reporting agency is void.
(B) No liability for disclosure under this subsection
A lender shall not have liability under any contractual provision for disclosure of a credit score pursuant to this subsection.
(
Editorial Notes
References in Text
For the effective date of this subchapter, referred to in subsec. (b), see section 504(d) of
Section 211(c) of the Fair and Accurate Credit Transactions Act of 2003, referred to in subsec. (c)(1)(B)(v), probably means section 211(d) of
Amendments
2010—
2003—Subsec. (a)(1).
"(A) if the consumer to whom the file relates requests that the first 5 digits of the social security number (or similar identification number) of the consumer not be included in the disclosure and the consumer reporting agency has received appropriate proof of the identity of the requester, the consumer reporting agency shall so truncate such number in such disclosure; and
"(B) nothing"
for "except that nothing".
Subsec. (a)(2), (3)(C).
Subsec. (a)(6).
Subsec. (c).
Subsecs. (d), (e).
Subsec. (f).
Subsec. (g).
1998—Subsec. (a)(3)(C).
1996—Subsec. (a).
Subsec. (a)(1).
Subsec. (a)(3).
"(A) for employment purposes within the two-year period preceding the request, and
"(B) for any other purpose within the six-month period preceding the request."
Subsec. (a)(5).
Subsec. (c).
1994—Subsec. (a)(4).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2003 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
Simplified Disclosure To Maximize Comprehensibility and Standardization
"(2)
"(3)
1 See References in Text note below.
2 So in original. Probably should be "Bureau".
3 So in original. The word "an" probably should not appear.
§1681h. Conditions and form of disclosure to consumers
(a) In general
(1) Proper identification
A consumer reporting agency shall require, as a condition of making the disclosures required under
(2) Disclosure in writing
Except as provided in subsection (b), the disclosures required to be made under
(b) Other forms of disclosure
(1) In general
If authorized by a consumer, a consumer reporting agency may make the disclosures required under 1 1681g of this title—
(A) other than in writing; and
(B) in such form as may be—
(i) specified by the consumer in accordance with paragraph (2); and
(ii) available from the agency.
(2) Form
A consumer may specify pursuant to paragraph (1) that disclosures under
(A) in person, upon the appearance of the consumer at the place of business of the consumer reporting agency where disclosures are regularly provided, during normal business hours, and on reasonable notice;
(B) by telephone, if the consumer has made a written request for disclosure by telephone;
(C) by electronic means, if available from the agency; or
(D) by any other reasonable means that is available from the agency.
(c) Trained personnel
Any consumer reporting agency shall provide trained personnel to explain to the consumer any information furnished to him pursuant to
(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
(
Editorial Notes
Amendments
1996—
Subsec. (a).
Subsec. (b).
"(1) in person if he appears in person and furnishes proper identification; or
"(2) by telephone if he has made a written request, with proper identification, for telephone disclosure and the toll charge, if any, for the telephone call is prepaid by or charged directly to the consumer."
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
1 So in original. Probably should be followed by "section".
2 So in original. Probably should be followed by a comma.
§1681i. Procedure in case of disputed accuracy
(a) Reinvestigations of disputed information
(1) Reinvestigation required
(A) In general
Subject to subsection (f) and except as provided in subsection (g), if the completeness or accuracy of any item of information contained in a consumer's file at a consumer reporting agency is disputed by the consumer and the consumer notifies the agency directly, or indirectly through a reseller, of such dispute, the agency shall, free of charge, conduct a reasonable reinvestigation to determine whether the disputed information is inaccurate and record the current status of the disputed information, or delete the item from the file in accordance with paragraph (5), before the end of the 30-day period beginning on the date on which the agency receives the notice of the dispute from the consumer or reseller.
(B) Extension of period to reinvestigate
Except as provided in subparagraph (C), the 30-day period described in subparagraph (A) may be extended for not more than 15 additional days if the consumer reporting agency receives information from the consumer during that 30-day period that is relevant to the reinvestigation.
(C) Limitations on extension of period to reinvestigate
Subparagraph (B) shall not apply to any reinvestigation in which, during the 30-day period described in subparagraph (A), the information that is the subject of the reinvestigation is found to be inaccurate or incomplete or the consumer reporting agency determines that the information cannot be verified.
(2) Prompt notice of dispute to furnisher of information
(A) In general
Before the expiration of the 5-business-day period beginning on the date on which a consumer reporting agency receives notice of a dispute from any consumer or a reseller in accordance with paragraph (1), the agency shall provide notification of the dispute to any person who provided any item of information in dispute, at the address and in the manner established with the person. The notice shall include all relevant information regarding the dispute that the agency has received from the consumer or reseller.
(B) Provision of other information
The consumer reporting agency shall promptly provide to the person who provided the information in dispute all relevant information regarding the dispute that is received by the agency from the consumer or the reseller after the period referred to in subparagraph (A) and before the end of the period referred to in paragraph (1)(A).
(3) Determination that dispute is frivolous or irrelevant
(A) In general
Notwithstanding paragraph (1), a consumer reporting agency may terminate a reinvestigation of information disputed by a consumer under that paragraph if the agency reasonably determines that the dispute by the consumer is frivolous or irrelevant, including by reason of a failure by a consumer to provide sufficient information to investigate the disputed information.
(B) Notice of determination
Upon making any determination in accordance with subparagraph (A) that a dispute is frivolous or irrelevant, a consumer reporting agency shall notify the consumer of such determination not later than 5 business days after making such determination, by mail or, if authorized by the consumer for that purpose, by any other means available to the agency.
(C) Contents of notice
A notice under subparagraph (B) shall include—
(i) the reasons for the determination under subparagraph (A); and
(ii) identification of any information required to investigate the disputed information, which may consist of a standardized form describing the general nature of such information.
(4) Consideration of consumer information
In conducting any reinvestigation under paragraph (1) with respect to disputed information in the file of any consumer, the consumer reporting agency shall review and consider all relevant information submitted by the consumer in the period described in paragraph (1)(A) with respect to such disputed information.
(5) Treatment of inaccurate or unverifiable information
(A) In general
If, after any reinvestigation under paragraph (1) of any information disputed by a consumer, an item of the information is found to be inaccurate or incomplete or cannot be verified, the consumer reporting agency shall—
(i) promptly delete that item of information from the file of the consumer, or modify that item of information, as appropriate, based on the results of the reinvestigation; and
(ii) promptly notify the furnisher of that information that the information has been modified or deleted from the file of the consumer.
(B) Requirements relating to reinsertion of previously deleted material
(i) Certification of accuracy of information
If any information is deleted from a consumer's file pursuant to subparagraph (A), the information may not be reinserted in the file by the consumer reporting agency unless the person who furnishes the information certifies that the information is complete and accurate.
(ii) Notice to consumer
If any information that has been deleted from a consumer's file pursuant to subparagraph (A) is reinserted in the file, the consumer reporting agency shall notify the consumer of the reinsertion in writing not later than 5 business days after the reinsertion or, if authorized by the consumer for that purpose, by any other means available to the agency.
(iii) Additional information
As part of, or in addition to, the notice under clause (ii), a consumer reporting agency shall provide to a consumer in writing not later than 5 business days after the date of the reinsertion—
(I) a statement that the disputed information has been reinserted;
(II) the business name and address of any furnisher of information contacted and the telephone number of such furnisher, if reasonably available, or of any furnisher of information that contacted the consumer reporting agency, in connection with the reinsertion of such information; and
(III) a notice that the consumer has the right to add a statement to the consumer's file disputing the accuracy or completeness of the disputed information.
(C) Procedures to prevent reappearance
A consumer reporting agency shall maintain reasonable procedures designed to prevent the reappearance in a consumer's file, and in consumer reports on the consumer, of information that is deleted pursuant to this paragraph (other than information that is reinserted in accordance with subparagraph (B)(i)).
(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) to any person specifically designated by the consumer who has within two years prior thereto received a consumer report for employment purposes, or within six months prior thereto received a consumer report for any other purpose, which contained the deleted or disputed information.
(e) Treatment of complaints and report to Congress
(1) In general
The Commission 1 shall—
(A) compile all complaints that it receives that a file of a consumer that is maintained by a consumer reporting agency described in
(B) transmit each such complaint to each consumer reporting agency involved.
(2) Exclusion
Complaints received or obtained by the Bureau pursuant to its investigative authority under the Consumer Financial Protection Act of 2010 shall not be subject to paragraph (1).
(3) Agency responsibilities
Each consumer reporting agency described in
(A) review each such complaint to determine whether all legal obligations imposed on the consumer reporting agency under this subchapter (including any obligation imposed by an applicable court or administrative order) have been met with respect to the subject matter of the complaint;
(B) provide reports on a regular basis to the Bureau regarding the determinations of and actions taken by the consumer reporting agency, if any, in connection with its review of such complaints; and
(C) maintain, for a reasonable time period, records regarding the disposition of each such complaint that is sufficient to demonstrate compliance with this subsection.
(4) Rulemaking authority
The Commission 1 may prescribe regulations, as appropriate to implement this subsection.
(5) Annual report
The Commission 1 shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives an annual report regarding information gathered by the Bureau under this subsection.
(f) Reinvestigation requirement applicable to resellers
(1) Exemption from general reinvestigation requirement
Except as provided in paragraph (2), a reseller shall be exempt from the requirements of this section.
(2) Action required upon receiving notice of a dispute
If a reseller receives a notice from a consumer of a dispute concerning the completeness or accuracy of any item of information contained in a consumer report on such consumer produced by the reseller, the reseller shall, within 5 business days of receiving the notice, and free of charge—
(A) determine whether the item of information is incomplete or inaccurate as a result of an act or omission of the reseller; and
(B) if—
(i) the reseller determines that the item of information is incomplete or inaccurate as a result of an act or omission of the reseller, not later than 20 days after receiving the notice, correct the information in the consumer report or delete it; or
(ii) if the reseller determines that the item of information is not incomplete or inaccurate as a result of an act or omission of the reseller, convey the notice of the dispute, together with all relevant information provided by the consumer, to each consumer reporting agency that provided the reseller with the information that is the subject of the dispute, using an address or a notification mechanism specified by the consumer reporting agency for such notices.
(3) Responsibility of consumer reporting agency to notify consumer through reseller
Upon the completion of a reinvestigation under this section of a dispute concerning the completeness or accuracy of any information in the file of a consumer by a consumer reporting agency that received notice of the dispute from a reseller under paragraph (2)—
(A) the notice by the consumer reporting agency under paragraph (6), (7), or (8) of subsection (a) shall be provided to the reseller in lieu of the consumer; and
(B) the reseller shall immediately reconvey such notice to the consumer, including any notice of a deletion by telephone in the manner required under paragraph (8)(A).
(4) Reseller reinvestigations
No provision of this subsection shall be construed as prohibiting a reseller from conducting a reinvestigation of a consumer dispute directly.
(g) Dispute process for veteran's medical debt
(1) In general
With respect to a veteran's medical debt, the veteran may submit a notice described in paragraph (2), proof of liability of the Department of Veterans Affairs for payment of that debt, or documentation that the Department of Veterans Affairs is in the process of making payment for authorized hospital care, medical services, or extended care services rendered to a consumer reporting agency or a reseller to dispute the inclusion of that debt on a consumer report of the veteran.
(2) Notification to veteran
The Department of Veterans Affairs shall submit to a veteran a notice that the Department of Veterans Affairs has assumed liability for part or all of a veteran's medical debt.
(3) Deletion of information from file
If a consumer reporting agency receives notice, proof of liability, or documentation under paragraph (1), the consumer reporting agency shall delete all information relating to the veteran's medical debt from the file of the veteran and notify the furnisher and the veteran of that deletion.
(
Editorial Notes
References in Text
The Consumer Financial Protection Act of 2010, referred to in subsec. (e)(2), is title X of
Amendments
2018—Subsec. (a)(1)(A).
Subsec. (g).
2010—Subsec. (e)(2).
Subsec. (e)(3), (5).
2003—Subsec. (a)(1)(A).
Subsec. (a)(2)(A).
Subsec. (a)(2)(B).
Subsec. (a)(5)(A).
Subsec. (e).
Subsec. (f).
1998—Subsec. (a)(7).
1996—Subsec. (a).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2003 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
Prompt Investigation of Disputed Consumer Information
"(1)
"(2)
"(3)
"(4)
"(A) consumer disputes with consumer reporting agencies over the accuracy or completeness of information in a consumer's file are promptly and fully investigated and any incorrect, incomplete, or unverifiable information is corrected or deleted immediately thereafter;
"(B) furnishers of information to consumer reporting agencies maintain full and prompt compliance with the duties and responsibilities established under section 623 of the Fair Credit Reporting Act [
"(C) consumer reporting agencies establish and maintain appropriate internal controls and management review procedures for maintaining full and continuous compliance with the procedures, time lines, and requirements under the Fair Credit Reporting Act [this subchapter] for the prompt investigation of the disputed accuracy of any consumer information and the prompt correction or deletion, in accordance with such Act, of any inaccurate or incomplete information or information that cannot be verified."
[For definitions of terms used in section 313(b) of
1 So in original. Probably should be "Bureau".
§1681j. Charges for certain disclosures
(a) Free annual disclosure
(1) Nationwide consumer reporting agencies
(A) In general
All consumer reporting agencies described in subsections (p) and (w) 1 of
(B) Centralized source
Subparagraph (A) shall apply with respect to a consumer reporting agency described in
(C) Nationwide specialty consumer reporting agency
(i) In general
The Commission 2 shall prescribe regulations applicable to each consumer reporting agency described in section 1681a(w) 1 of this title to require the establishment of a streamlined process for consumers to request consumer reports under subparagraph (A), which shall include, at a minimum, the establishment by each such agency of a toll-free telephone number for such requests.
(ii) Considerations
In prescribing regulations under clause (i), the Bureau shall consider—
(I) the significant demands that may be placed on consumer reporting agencies in providing such consumer reports;
(II) appropriate means to ensure that consumer reporting agencies can satisfactorily meet those demands, including the efficacy of a system of staggering the availability to consumers of such consumer reports; and
(III) the ease by which consumers should be able to contact consumer reporting agencies with respect to access to such consumer reports.
(iii) Date of issuance
The Commission 2 shall issue the regulations required by this subparagraph in final form not later than 6 months after December 4, 2003.
(iv) Consideration of ability to comply
The regulations of the Bureau under this subparagraph shall establish an effective date by which each nationwide specialty consumer reporting agency (as defined in section 1681a(w) 1 of this title) shall be required to comply with subsection (a), which effective date—
(I) shall be established after consideration of the ability of each nationwide specialty consumer reporting agency to comply with subsection (a); and
(II) shall be not later than 6 months after the date on which such regulations are issued in final form (or such additional period not to exceed 3 months, as the Bureau determines appropriate).
(2) Timing
A consumer reporting agency shall provide a consumer report under paragraph (1) not later than 15 days after the date on which the request is received under paragraph (1).
(3) Reinvestigations
Notwithstanding the time periods specified in
(4) Exception for first 12 months of operation
This subsection shall not apply to a consumer reporting agency that has not been furnishing consumer reports to third parties on a continuing basis during the 12-month period preceding a request under paragraph (1), with respect to consumers residing nationwide.
(b) Free disclosure after adverse notice to consumer
Each consumer reporting agency that maintains a file on a consumer shall make all disclosures pursuant to
(c) Free disclosure under certain other circumstances
Upon the request of the consumer, a consumer reporting agency shall make all disclosures pursuant to
(1) is unemployed and intends to apply for employment in the 60-day period beginning on the date on which the certification is made;
(2) is a recipient of public welfare assistance; or
(3) has reason to believe that the file on the consumer at the agency contains inaccurate information due to fraud.
(d) Free disclosures in connection with fraud alerts
Upon the request of a consumer, a consumer reporting agency described in
(e) Other charges prohibited
A consumer reporting agency shall not impose any charge on a consumer for providing any notification required by this subchapter or making any disclosure required by this subchapter, except as authorized by subsection (f).
(f) Reasonable charges allowed for certain disclosures
(1) In general
In the case of a request from a consumer other than a request that is covered by any of subsections (a) through (d), a consumer reporting agency may impose a reasonable charge on a consumer—
(A) for making a disclosure to the consumer pursuant to
(i) shall not exceed $8; and
(ii) shall be indicated to the consumer before making the disclosure; and
(B) for furnishing, pursuant to
(i) shall not exceed the charge that the agency would impose on each designated recipient for a consumer report; and
(ii) shall be indicated to the consumer before furnishing such information.
(2) Modification of amount
The Bureau shall increase the amount referred to in paragraph (1)(A)(i) on January 1 of each year, based proportionally on changes in the Consumer Price Index, with fractional changes rounded to the nearest fifty cents.
(g) Prevention of deceptive marketing of credit reports
(1) In general
Subject to rulemaking pursuant to section 205(b) of the Credit CARD Act of 2009, any advertisement for a free credit report in any medium shall prominently disclose in such advertisement that free credit reports are available under Federal law at: "AnnualCreditReport.com" (or such other source as may be authorized under Federal law).
(2) Television and radio advertisement
In the case of an advertisement broadcast by television, the disclosures required under paragraph (1) shall be included in the audio and visual part of such advertisement. In the case of an advertisement broadcast by televison 3 or radio, the disclosure required under paragraph (1) shall consist only of the following: "This is not the free credit report provided for by Federal law".
(
Editorial Notes
References in Text
Section 211(c) of the Fair and Accurate Credit Transactions Act of 2003, referred to in subsec. (a)(1)(B), probably means section 211(d) of
Section 205(b) of the Credit CARD Act of 2009, referred to in subsec. (g), is section 205(b) of
Amendments
2010—Subsec. (a)(1)(C).
Subsec. (f)(2).
2009—Subsec. (g).
2003—Subsec. (a).
Subsec. (d).
Subsec. (e).
Subsec. (f).
1996—
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2003 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
Regulations
"(1)
"(2)
"(A) shall include specific wording to be used in advertisements in accordance with this section; and
"(B) for advertisements on the Internet, shall include whether the disclosure required under section 612(g)(1) of the Fair Credit Reporting Act [
"(3)
"(1)
"(A) a centralized source through which consumers may obtain a consumer report from each such consumer reporting agency, using a single request, and without charge to the consumer, as provided in section 612(a) of the Fair Credit Reporting Act [
"(B) a standardized form for a consumer to make such a request for a consumer report by mail or through an Internet website.
"(2)
"(A) the significant demands that may be placed on consumer reporting agencies in providing such consumer reports;
"(B) appropriate means to ensure that consumer reporting agencies can satisfactorily meet those demands, including the efficacy of a system of staggering the availability to consumers of such consumer reports; and
"(C) the ease by which consumers should be able to contact consumer reporting agencies with respect to access to such consumer reports.
"(3)
"(A) a toll-free telephone number for such purpose;
"(B) use of an Internet website for such purpose; and
"(C) a process for requests by mail for such purpose.
"(4)
"(A) does not temporarily overwhelm such consumer reporting agencies with requests for disclosures of consumer reports beyond their capacity to deliver; and
"(B) does not deny creditors, other users, and consumers access to consumer reports on a time-sensitive basis for specific purposes, such as home purchases or suspicions of identity theft, during the transition period.
"(5)
"(A) be issued in final form not later than 6 months after the date of enactment of this Act [Dec. 4, 2003]; and
"(B) become effective not later than 6 months after the date on which they are issued in final form.
"(6)
"(A)
"(B)
"(i) the number of requests for consumer reports to, and the number of consumer reports generated by, the consumer reporting agency, in comparison with consumer reporting agencies described in subsections (p) and (w) [now (x)] of section 603 of the Fair Credit Reporting Act [
"(ii) the overall scope of the operations of the consumer reporting agency;
"(iii) the needs of consumers for access to consumer reports provided by consumer reporting agencies free of charge;
"(iv) the costs of providing access to consumer reports by consumer reporting agencies free of charge; and
"(v) the effects on the ongoing competitive viability of such consumer reporting agencies if such free access is required."
[For definitions of terms used in section 211(d) of
1 See References in Text note below.
2 So in original. Probably should be "Bureau".
3 So in original. Probably should be "television".
§1681k. Public record information for employment purposes
(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
(
Editorial Notes
Amendments
1998—
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
§1681l. Restrictions on investigative consumer reports
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.
(
Statutory Notes and Related Subsidiaries
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
§1681m. Requirements on users of consumer reports
(a) Duties of users taking adverse actions on 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 written or electronic disclosure—
(A) of a numerical credit score as defined in
(B) of the information set forth in subparagraphs (B) through (E) of
(3) provide to the consumer orally, in writing, or electronically—
(A) the name, address, and telephone number of the consumer reporting agency (including a toll-free telephone number established by the agency if the agency compiles and maintains files on consumers on a nationwide basis) that furnished the report to the person; and
(B) a statement that the consumer reporting agency did not make the decision to take the adverse action and is unable to provide the consumer the specific reasons why the adverse action was taken; and
(4) provide to the consumer an oral, written, or electronic notice of the consumer's right—
(A) to obtain, under
(B) to dispute, under
(b) Adverse action based on information obtained from third parties other than consumer reporting agencies
(1) In general
Whenever credit for personal, family, or household purposes involving a consumer is denied or the charge for such credit is increased either wholly or partly because of information obtained from a person other than a consumer reporting agency bearing upon the consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, the user of such information shall, within a reasonable period of time, upon the consumer's written request for the reasons for such adverse action received within sixty days after learning of such adverse action, disclose the nature of the information to the consumer. The user of such information shall clearly and accurately disclose to the consumer his right to make such written request at the time such adverse action is communicated to the consumer.
(2) Duties of person taking certain actions based on information provided by affiliate
(A) Duties, generally
If a person takes an action described in subparagraph (B) with respect to a consumer, based in whole or in part on information described in subparagraph (C), the person shall—
(i) notify the consumer of the action, including a statement that the consumer may obtain the information in accordance with clause (ii); and
(ii) upon a written request from the consumer received within 60 days after transmittal of the notice required by clause (i), disclose to the consumer the nature of the information upon which the action is based by not later than 30 days after receipt of the request.
(B) Action described
An action referred to in subparagraph (A) is an adverse action described in
(C) Information described
Information referred to in subparagraph (A)—
(i) except as provided in clause (ii), is information that—
(I) is furnished to the person taking the action by a person related by common ownership or affiliated by common corporate control to the person taking the action; and
(II) bears on the credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living of the consumer; and
(ii) does not include—
(I) information solely as to transactions or experiences between the consumer and the person furnishing the information; or
(II) information in a consumer report.
(c) Reasonable procedures to assure compliance
No person shall be held liable for any violation of this section if he shows by a preponderance of the evidence that at the time of the alleged violation he maintained reasonable procedures to assure compliance with the provisions of this section.
(d) Duties of users making written credit or insurance solicitations on 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
(A) information contained in the consumer's consumer report was used in connection with the transaction;
(B) the consumer received the offer of credit or insurance because the consumer satisfied the criteria for credit worthiness or insurability under which the consumer was selected for the offer;
(C) if applicable, the credit or insurance may not be extended if, after the consumer responds to the offer, the consumer does not meet the criteria used to select the consumer for the offer or any applicable criteria bearing on credit worthiness or insurability or does not furnish any required collateral;
(D) the consumer has a right to prohibit information contained in the consumer's file with any consumer reporting agency from being used in connection with any credit or insurance transaction that is not initiated by the consumer; and
(E) the consumer may exercise the right referred to in subparagraph (D) by notifying a notification system established under
(2) Disclosure of address and telephone number; format
A statement under paragraph (1) shall—
(A) include the address and toll-free telephone number of the appropriate notification system established under
(B) be presented in such format and in such type size and manner as to be simple and easy to understand, as established by the Bureau, by rule, in consultation with the Federal Trade Commission, the Federal banking agencies, and the National Credit Union Administration.
(3) Maintaining criteria on file
A person who makes an offer of credit or insurance to a consumer under a credit or insurance transaction described in paragraph (1) shall maintain on file the criteria used to select the consumer to receive the offer, all criteria bearing on credit worthiness or insurability, as applicable, that are the basis for determining whether or not to extend credit or insurance pursuant to the offer, and any requirement for the furnishing of collateral as a condition of the extension of credit or insurance, until the expiration of the 3-year period beginning on the date on which the offer is made to the consumer.
(4) Authority of Federal agencies regarding unfair or deceptive acts or practices not affected
This section is not intended to affect the authority of any Federal or State agency to enforce a prohibition against unfair or deceptive acts or practices, including the making of false or misleading statements in connection with a credit or insurance transaction that is not initiated by the consumer.
(e) Red flag guidelines and regulations required
(1) Guidelines
The Federal banking agencies, the National Credit Union Administration, the Federal Trade Commission, the Commodity Futures Trading Commission, and the Securities and Exchange Commission shall jointly, with respect to the entities that are subject to their respective enforcement authority under
(A) establish and maintain guidelines for use by each financial institution and each creditor regarding identity theft with respect to account holders at, or customers of, such entities, and update such guidelines as often as necessary;
(B) prescribe regulations requiring each financial institution and each creditor to establish reasonable policies and procedures for implementing the guidelines established pursuant to subparagraph (A), to identify possible risks to account holders or customers or to the safety and soundness of the institution or customers; and
(C) prescribe regulations applicable to card issuers to ensure that, if a card issuer receives notification of a change of address for an existing account, and within a short period of time (during at least the first 30 days after such notification is received) receives a request for an additional or replacement card for the same account, the card issuer may not issue the additional or replacement card, unless the card issuer, in accordance with reasonable policies and procedures—
(i) notifies the cardholder of the request at the former address of the cardholder and provides to the cardholder a means of promptly reporting incorrect address changes;
(ii) notifies the cardholder of the request by such other means of communication as the cardholder and the card issuer previously agreed to; or
(iii) uses other means of assessing the validity of the change of address, in accordance with reasonable policies and procedures established by the card issuer in accordance with the regulations prescribed under subparagraph (B).
(2) Criteria
(A) In general
In developing the guidelines required by paragraph (1)(A), the agencies described in paragraph (1) shall identify patterns, practices, and specific forms of activity that indicate the possible existence of identity theft.
(B) Inactive accounts
In developing the guidelines required by paragraph (1)(A), the agencies described in paragraph (1) shall consider including reasonable guidelines providing that when a transaction occurs with respect to a credit or deposit account that has been inactive for more than 2 years, the creditor or financial institution shall follow reasonable policies and procedures that provide for notice to be given to a consumer in a manner reasonably designed to reduce the likelihood of identity theft with respect to such account.
(3) Consistency with verification requirements
Guidelines established pursuant to paragraph (1) shall not be inconsistent with the policies and procedures required under
(4) Definitions
As used in this subsection, the term "creditor"—
(A) means a creditor, as defined in
(i) obtains or uses consumer reports, directly or indirectly, in connection with a credit transaction;
(ii) furnishes information to consumer reporting agencies, as described in
(iii) advances funds to or on behalf of a person, based on an obligation of the person to repay the funds or repayable from specific property pledged by or on behalf of the person;
(B) does not include a creditor described in subparagraph (A)(iii) that advances funds on behalf of a person for expenses incidental to a service provided by the creditor to that person; and
(C) includes any other type of creditor, as defined in that
(f) Prohibition on sale or transfer of debt caused by identity theft
(1) In general
No person shall sell, transfer for consideration, or place for collection a debt that such person has been notified under
(2) Applicability
The prohibitions of this subsection shall apply to all persons collecting a debt described in paragraph (1) after the date of a notification under paragraph (1).
(3) Rule of construction
Nothing in this subsection shall be construed to prohibit—
(A) the repurchase of a debt in any case in which the assignee of the debt requires such repurchase because the debt has resulted from identity theft;
(B) the securitization of a debt or the pledging of a portfolio of debt as collateral in connection with a borrowing; or
(C) the transfer of debt as a result of a merger, acquisition, purchase and assumption transaction, or transfer of substantially all of the assets of an entity.
(g) Debt collector communications concerning identity theft
If a person acting as a debt collector (as that term is defined in subchapter V) on behalf of a third party that is a creditor or other user of a consumer report is notified that any information relating to a debt that the person is attempting to collect may be fraudulent or may be the result of identity theft, that person shall—
(1) notify the third party that the information may be fraudulent or may be the result of identity theft; and
(2) upon request of the consumer to whom the debt purportedly relates, provide to the consumer all information to which the consumer would otherwise be entitled if the consumer were not a victim of identity theft, but wished to dispute the debt under provisions of law applicable to that person.
(h) Duties of users in certain credit transactions
(1) In general
Subject to rules prescribed as provided in paragraph (6), if any person uses a consumer report in connection with an application for, or a grant, extension, or other provision of, credit on material terms that are materially less favorable than the most favorable terms available to a substantial proportion of consumers from or through that person, based in whole or in part on a consumer report, the person shall provide an oral, written, or electronic notice to the consumer in the form and manner required by regulations prescribed in accordance with this subsection.
(2) Timing
The notice required under paragraph (1) may be provided at the time of an application for, or a grant, extension, or other provision of, credit or the time of communication of an approval of an application for, or grant, extension, or other provision of, credit, except as provided in the regulations prescribed under paragraph (6).
(3) Exceptions
No notice shall be required from a person under this subsection if—
(A) the consumer applied for specific material terms and was granted those terms, unless those terms were initially specified by the person after the transaction was initiated by the consumer and after the person obtained a consumer report; or
(B) the person has provided or will provide a notice to the consumer under subsection (a) in connection with the transaction.
(4) Other notice not sufficient
A person that is required to provide a notice under subsection (a) cannot meet that requirement by providing a notice under this subsection.
(5) Content and delivery of notice
A notice under this subsection shall, at a minimum—
(A) include a statement informing the consumer that the terms offered to the consumer are set based on information from a consumer report;
(B) identify the consumer reporting agency furnishing the report;
(C) include a statement informing the consumer that the consumer may obtain a copy of a consumer report from that consumer reporting agency without charge;
(D) include the contact information specified by that consumer reporting agency for obtaining such consumer reports (including a toll-free telephone number established by the agency in the case of a consumer reporting agency described in
(E) include a statement informing the consumer of—
(i) a numerical credit score as defined in
(ii) the information set forth in subparagraphs (B) through (E) of
(6) Rulemaking
(A) Rules required
The Bureau shall prescribe rules to carry out this subsection.
(B) Content
Rules required by subparagraph (A) shall address, but are not limited to—
(i) the form, content, time, and manner of delivery of any notice under this subsection;
(ii) clarification of the meaning of terms used in this subsection, including what credit terms are material, and when credit terms are materially less favorable;
(iii) exceptions to the notice requirement under this subsection for classes of persons or transactions regarding which the agencies determine that notice would not significantly benefit consumers;
(iv) a model notice that may be used to comply with this subsection; and
(v) the timing of the notice required under paragraph (1), including the circumstances under which the notice must be provided after the terms offered to the consumer were set based on information from a consumer report.
(7) Compliance
A person shall not be liable for failure to perform the duties required by this section if, at the time of the failure, the person maintained reasonable policies and procedures to comply with this section.
(8) Enforcement
(A) No civil actions
(B) Administrative enforcement
This section shall be enforced exclusively under
(
Editorial Notes
Amendments
2010—Subsec. (a)(2) to (4).
Subsec. (d)(2)(B).
Subsec. (e)(1).
Subsec. (e)(4).
Subsec. (h)(5)(E).
Subsec. (h)(6)(A).
2003—Subsec. (d)(2).
Subsec. (e).
Subsec. (f).
Subsec. (g).
Subsec. (h).
1996—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2003 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
Regulations
§1681n. Civil liability for willful noncompliance
(a) In general
Any person who willfully fails to comply with any requirement imposed under this subchapter 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.
(d) Clarification of willful noncompliance
For the purposes of this section, any person who printed an expiration date on any receipt provided to a consumer cardholder at a point of sale or transaction between December 4, 2004, and June 3, 2008, but otherwise complied with the requirements of
(
Editorial Notes
Amendments
2008—Subsec. (d).
1996—Subsec. (a).
Subsec. (a)(1).
Subsec. (b).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
Construction
Statement of Findings and Purpose for 2008 Amendment
"(a)
"(1) The Fair and Accurate Credit Transactions Act [of 2003] (commonly referred to as 'FACTA') [
"(2) As part of that law, the Congress enacted a requirement, through an amendment to the Fair Credit Reporting Act [
"(3) Many merchants understood that this requirement would be satisfied by truncating the account number down to the last 5 digits based in part on the language of the provision as well as the publicity in the aftermath of the passage of the law.
"(4) Almost immediately after the deadline for compliance passed, hundreds of lawsuits were filed alleging that the failure to remove the expiration date was a willful violation of the Fair Credit Reporting Act even where the account number was properly truncated.
"(5) None of these lawsuits contained an allegation of harm to any consumer's identity.
"(6) Experts in the field agree that proper truncation of the card number, by itself as required by the amendment made by the Fair and Accurate Credit Transactions Act [of 2003], regardless of the inclusion of the expiration date, prevents a potential fraudster from perpetrating identity theft or credit card fraud.
"(7) Despite repeatedly being denied class certification, the continued appealing and filing of these lawsuits represents a significant burden on the hundreds of companies that have been sued and could well raise prices to consumers without corresponding consumer protection benefit.
"(b)
Retroactive Effect of 2008 Amendment
§1681o. Civil liability for negligent noncompliance
(a) In general
Any person who is negligent in failing to comply with any requirement imposed under this subchapter with respect to any consumer is liable to that consumer in an amount equal to the sum of—
(1) any actual damages sustained by the consumer as a result of the failure; and
(2) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
(b) Attorney's fees
On a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for purposes of harassment, the court shall award to the prevailing party attorney's fees reasonable in relation to the work expended in responding to the pleading, motion, or other paper.
(
Editorial Notes
Amendments
2003—Subsec. (a)(1).
1996—Subsec. (a).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2003 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
§1681p. Jurisdiction of courts; limitation of actions
An action to enforce any liability created under this subchapter may be brought in any appropriate United States district court, without regard to the amount in controversy, or in any other court of competent jurisdiction, not later than the earlier of—
(1) 2 years after the date of discovery by the plaintiff of the violation that is the basis for such liability; or
(2) 5 years after the date on which the violation that is the basis for such liability occurs.
(
Editorial Notes
Amendments
2003—
Statutory Notes and Related Subsidiaries
Effective Date of 2003 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
§1681q. Obtaining information under false pretenses
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, imprisoned for not more than 2 years, or both.
(
Editorial Notes
Amendments
1996—
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
§1681r. Unauthorized disclosures by officers or employees
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, imprisoned for not more than 2 years, or both.
(
Editorial Notes
Amendments
1996—
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
§1681s. Administrative enforcement
(a) Enforcement by Federal Trade Commission
(1) In general
The Federal Trade Commission shall be authorized to enforce compliance with the requirements imposed by this subchapter under the Federal Trade Commission Act (
(2) Penalties
(A) Knowing violations
Except as otherwise provided by subtitle B of the Consumer Financial Protection Act of 2010, in the event of a knowing violation, which constitutes a pattern or practice of violations of this subchapter, the Federal Trade 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 subchapter. In such action, such person shall be liable for a civil penalty of not more than $2,500 per violation.
(B) Determining penalty amount
In determining the amount of a civil penalty under subparagraph (A), the court shall take into account the degree of culpability, any history of such prior conduct, ability to pay, effect on ability to continue to do business, and such other matters as justice may require.
(C) Limitation
Notwithstanding paragraph (2), a court may not impose any civil penalty on a person for a violation of
(b) Enforcement by other agencies
(1) In general
Subject to subtitle B of the Consumer Financial Protection Act of 2010, compliance with the requirements imposed under this subchapter 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
(A) section 8 of the Federal Deposit Insurance Act (
(i) any national bank or State savings association, and any Federal branch or Federal agency of a foreign bank;
(ii) any member bank of the Federal Reserve System (other than a national bank), a branch or agency of a foreign bank (other than a Federal branch, Federal agency, or insured State branch of a foreign bank), a commercial lending company owned or controlled by a foreign bank, and any organization operating under section 25 or 25A of the Federal Reserve Act [
(iii) any bank or Federal savings association insured by the Federal Deposit Insurance Corporation (other than a member of the Federal Reserve System) and any insured State branch of a foreign bank;
(B) the Federal Credit Union Act (
(C) subtitle IV of title 49, by the Secretary of Transportation, with respect to all carriers subject to the jurisdiction of the Surface Transportation Board;
(D) part A of subtitle VII of title 49, by the Secretary of Transportation, with respect to any air carrier or foreign air carrier subject to that part;
(E) the Packers and Stockyards Act, 1921 (
(F) the Commodity Exchange Act [
(G) the Federal securities laws, and any other laws that are subject to the jurisdiction of the Securities and Exchange Commission, with respect to a person that is subject to the jurisdiction of the Securities and Exchange Commission; and
(H) subtitle E of the Consumer Financial Protection Act of 2010 [
(2) Incorporated definitions
The terms used in paragraph (1) that are not defined in this subchapter or otherwise defined in section 3(s) of the Federal Deposit Insurance Act (
(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 subchapter, the State—
(A) may bring an action to enjoin such violation in any appropriate United States district court or in any other court of competent jurisdiction;
(B) subject to paragraph (5), may bring an action on behalf of the residents of the State to recover—
(i) damages for which the person is liable to such residents under
(ii) in the case of a violation described in any of paragraphs (1) through (3) of
(iii) damages of not more than $1,000 for each willful or negligent violation; and
(C) in the case of any successful action under subparagraph (A) or (B), shall be awarded the costs of the action and reasonable attorney fees as determined by the court.
(2) Rights of Federal regulators
The State shall serve prior written notice of any action under paragraph (1) upon the Bureau and the Federal Trade Commission or the appropriate Federal regulator determined under subsection (b) and provide the Bureau and the Federal Trade Commission or appropriate Federal regulator with a copy of its complaint, except in any case in which such prior notice is not feasible, in which case the State shall serve such notice immediately upon instituting such action. The Bureau and the Federal Trade Commission or appropriate Federal regulator shall have the right—
(A) to intervene in the action;
(B) upon so intervening, to be heard on all matters arising therein;
(C) to remove the action to the appropriate United States district court; and
(D) to file petitions for appeal.
(3) Investigatory powers
For purposes of bringing any action under this subsection, nothing in this subsection shall prevent the chief law enforcement officer, or an official or agency designated by a State, from exercising the powers conferred on the chief law enforcement officer or such official by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.
(4) Limitation on State action while Federal action pending
If the Bureau, the Federal Trade Commission, or the appropriate Federal regulator has instituted a civil action or an administrative action under section 8 of the Federal Deposit Insurance Act [
(5) Limitations on State actions for certain violations
(A) Violation of injunction required
A State may not bring an action against a person under paragraph (1)(B) for a violation described in any of paragraphs (1) through (3) of
(i) the person has been enjoined from committing the violation, in an action brought by the State under paragraph (1)(A); and
(ii) the person has violated the injunction.
(B) Limitation on damages recoverable
In an action against a person under paragraph (1)(B) for a violation described in any of paragraphs (1) through (3) of
(d) Enforcement under other authority
For the purpose of the exercise by any agency referred to in subsection (b) of its powers under any Act referred to in that subsection, a violation of any requirement imposed under this subchapter 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), each of the agencies referred to in that subsection may exercise, for the purpose of enforcing compliance with any requirement imposed under this subchapter any other authority conferred on it by law.
(e) Regulatory authority
(1) In general
The Bureau shall prescribe such regulations as are necessary to carry out the purposes of this subchapter, except with respect to
(2) Deference
Notwithstanding any power granted to any Federal agency under this subchapter, the deference that a court affords to a Federal agency with respect to a determination made by such agency relating to the meaning or interpretation of any provision of this subchapter that is subject to the jurisdiction of such agency shall be applied as if that agency were the only agency authorized to apply, enforce, interpret, or administer the provisions of this subchapter 2 The regulations prescribed by the Bureau under this subchapter shall apply to any person that is subject to this subchapter, notwithstanding the enforcement authorities granted to other agencies under this section.
(f) Coordination of consumer complaint investigations
(1) In general
Each consumer reporting agency described in
(2) Model form and procedure for reporting identity theft
The Commission,3 in consultation with the Federal Trade Commission, the Federal banking agencies, and the National Credit Union Administration, shall develop a model form and model procedures to be used by consumers who are victims of identity theft for contacting and informing creditors and consumer reporting agencies of the fraud.
(3) Annual summary reports
Each consumer reporting agency described in
(g) Bureau regulation of coding of trade names
If the Bureau determines that a person described in paragraph (9) of
(
Editorial Notes
References in Text
The Federal Trade Commission Act, referred to in subsec. (a)(1), is act Sept. 26, 1914, ch. 311,
The Consumer Financial Protection Act of 2010, referred to in subsecs. (a) and (b)(1), is title X of
Sections 25 and 25A of the Federal Reserve Act, referred to in subsec. (b)(1)(A)(ii), are classified to subchapters I (§601 et seq.) and II (§611 et seq.), respectively, of
The Federal Credit Union Act, referred to in subsec. (b)(1)(B), is act June 26, 1934, ch. 750,
The Packers and Stockyards Act, 1921, referred to in subsec. (b)(1)(E), is act Aug. 15, 1921, ch. 64,
The Commodity Exchange Act, referred to in subsec. (b)(1)(F), is act Sept. 21, 1922, ch. 369,
Codification
In subsec. (b)(1)(D), "part A of subtitle VII of title 49" substituted for "the Federal Aviation Act of 1958 (49 App. U.S.C. 1301 et seq.)" and "that part" substituted for "that Act" on authority of
Amendments
2010—Subsec. (a).
Subsec. (b).
Subsec. (c)(2).
Subsec. (c)(4).
Subsec. (e).
Subsec. (f)(2).
Subsec. (f)(3).
Subsec. (g).
2003—Subsec. (b)(1)(B).
Subsec. (c)(1)(B)(ii).
Subsec. (c)(5).
Subsec. (c)(5)(A), (B).
Subsec. (f).
Subsec. (g).
1999—Subsec. (a)(4).
Subsec. (d).
Subsec. (e).
1998—Subsec. (b).
1996—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsec. (e).
1995—Subsec. (b)(4).
1992—Subsec. (b)(1)(C).
1991—Subsec. (b).
"(A) national banks, by the Comptroller of the Currency;
"(B) member banks of the Federal Reserve System (other than national banks), by the Federal Reserve Board; and
"(C) banks insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System), by the Board of Directors of the Federal Deposit Insurance Corporation."
1989—Subsec. (b)(2).
1984—Subsec. (b)(5).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2003 Amendment
Amendment by
Amendment by section 412(e) of
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1995 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
Transfer of Functions
Functions vested in Administrator of National Credit Union Administration transferred and vested in National Credit Union Administration Board pursuant to
2 So in original. Probably should be followed by a period.
3 So in original. Probably should be "Bureau,".
§1681s–1. Information on overdue child support obligations
Notwithstanding any other provision of this subchapter, a consumer reporting agency shall include in any consumer report furnished by the agency in accordance with
(1) is provided—
(A) to the consumer reporting agency by a State or local child support enforcement agency; or
(B) to the consumer reporting agency and verified by any local, State, or Federal Government agency; and
(2) antedates the report by 7 years or less.
(
Editorial Notes
Prior Provisions
A prior section 622 of
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Jan. 1, 1993, see section 2(d) of
§1681s–2. Responsibilities of furnishers of information to consumer reporting agencies
(a) Duty of furnishers of information to provide accurate information
(1) Prohibition
(A) Reporting information with actual knowledge of errors
A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate.
(B) Reporting information after notice and confirmation of errors
A person shall not furnish information relating to a consumer to any consumer reporting agency if—
(i) the person has been notified by the consumer, at the address specified by the person for such notices, that specific information is inaccurate; and
(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.
(D) Definition
For purposes of subparagraph (A), the term "reasonable cause to believe that the information is inaccurate" means having specific knowledge, other than solely allegations by the consumer, that would cause a reasonable person to have substantial doubts about the accuracy of the information.
(E) Rehabilitation of private education loans
(i) In general
Notwithstanding any other provision of this section, a consumer may request a financial institution to remove from a consumer report a reported default regarding a private education loan, and such information shall not be considered inaccurate, if—
(I) the financial institution chooses to offer a loan rehabilitation program which includes, without limitation, a requirement of the consumer to make consecutive on-time monthly payments in a number that demonstrates, in the assessment of the financial institution offering the loan rehabilitation program, a renewed ability and willingness to repay the loan; and
(II) the requirements of the loan rehabilitation program described in subclause (I) are successfully met.
(ii) Banking agencies
(I) In general
If a financial institution is supervised by a Federal banking agency, the financial institution shall seek written approval concerning the terms and conditions of the loan rehabilitation program described in clause (i) from the appropriate Federal banking agency.
(II) Feedback
An appropriate Federal banking agency shall provide feedback to a financial institution within 120 days of a request for approval under subclause (I).
(iii) Limitation
(I) In general
A consumer may obtain the benefits available under this subsection with respect to rehabilitating a loan only 1 time per loan.
(II) Rule of construction
Nothing in this subparagraph may be construed to require a financial institution to offer a loan rehabilitation program or to remove any reported default from a consumer report as a consideration of a loan rehabilitation program, except as described in clause (i).
(iv) Definitions
For purposes of this subparagraph—
(I) the term "appropriate Federal banking agency" has the meaning given the term in
(II) the term "private education loan" has the meaning given the term in
(F) Reporting information during COVID–19 pandemic
(i) Definitions
In this subsection:
(I) Accommodation
The term "accommodation" includes an agreement to defer 1 or more payments, make a partial payment, forbear any delinquent amounts, modify a loan or contract, or any other assistance or relief granted to a consumer who is affected by the coronavirus disease 2019 (COVID–19) pandemic during the covered period.
(II) Covered period
The term "covered period" means the period beginning on January 31, 2020 and ending on the later of—
(aa) 120 days after March 27, 2020; or
(bb) 120 days after the date on which the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (
(ii) Reporting
Except as provided in clause (iii), if a furnisher makes an accommodation with respect to 1 or more payments on a credit obligation or account of a consumer, and the consumer makes the payments or is not required to make 1 or more payments pursuant to the accommodation, the furnisher shall—
(I) report the credit obligation or account as current; or
(II) if the credit obligation or account was delinquent before the accommodation—
(aa) maintain the delinquent status during the period in which the accommodation is in effect; and
(bb) if the consumer brings the credit obligation or account current during the period described in item (aa), report the credit obligation or account as current.
(iii) Exception
Clause (ii) shall not apply with respect to a credit obligation or account of a consumer that has been charged-off.
(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) In general
A person who furnishes information to a consumer reporting agency regarding a delinquent account being placed for collection, charged to profit or loss, or subjected to any similar action shall, not later than 90 days after furnishing the information, notify the agency of the date of delinquency on the account, which shall be the month and year of the commencement of the delinquency on the account that immediately preceded the action.
(B) Rule of construction
For purposes of this paragraph only, and provided that the consumer does not dispute the information, a person that furnishes information on a delinquent account that is placed for collection, charged for profit or loss, or subjected to any similar action, complies with this paragraph, if—
(i) the person reports the same date of delinquency as that provided by the creditor to which the account was owed at the time at which the commencement of the delinquency occurred, if the creditor previously reported that date of delinquency to a consumer reporting agency;
(ii) the creditor did not previously report the date of delinquency to a consumer reporting agency, and the person establishes and follows reasonable procedures to obtain the date of delinquency from the creditor or another reliable source and reports that date to a consumer reporting agency as the date of delinquency; or
(iii) the creditor did not previously report the date of delinquency to a consumer reporting agency and the date of delinquency cannot be reasonably obtained as provided in clause (ii), the person establishes and follows reasonable procedures to ensure the date reported as the date of delinquency precedes the date on which the account is placed for collection, charged to profit or loss, or subjected to any similar action, and reports such date to the credit reporting agency.
(6) Duties of furnishers upon notice of identity theft-related information
(A) Reasonable procedures
A person that furnishes information to any consumer reporting agency shall have in place reasonable procedures to respond to any notification that it receives from a consumer reporting agency under
(B) Information alleged to result from identity theft
If a consumer submits an identity theft report to a person who furnishes information to a consumer reporting agency at the address specified by that person for receiving such reports stating that information maintained by such person that purports to relate to the consumer resulted from identity theft, the person may not furnish such information that purports to relate to the consumer to any consumer reporting agency, unless the person subsequently knows or is informed by the consumer that the information is correct.
(7) Negative information
(A) Notice to consumer required
(i) In general
If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in
(ii) Notice effective for subsequent submissions
After providing such notice, the financial institution may submit additional negative information to a consumer reporting agency described in
(B) Time of notice
(i) In general
The notice required under subparagraph (A) shall be provided to the customer prior to, or no later than 30 days after, furnishing the negative information to a consumer reporting agency described in
(ii) Coordination with new account disclosures
If the notice is provided to the customer prior to furnishing the negative information to a consumer reporting agency, the notice may not be included in the initial disclosures provided under
(C) Coordination with other disclosures
The notice required under subparagraph (A)—
(i) may be included on or with any notice of default, any billing statement, or any other materials provided to the customer; and
(ii) must be clear and conspicuous.
(D) Model disclosure
(i) Duty of Bureau
The Bureau shall prescribe a brief model disclosure that a financial institution may use to comply with subparagraph (A), which shall not exceed 30 words.
(ii) Use of model not required
No provision of this paragraph may be construed to require a financial institution to use any such model form prescribed by the Bureau.
(iii) Compliance using model
A financial institution shall be deemed to be in compliance with subparagraph (A) if the financial institution uses any model form prescribed by the Bureau under this subparagraph, or the financial institution uses any such model form and rearranges its format.
(E) Use of notice without submitting negative information
No provision of this paragraph shall be construed as requiring a financial institution that has provided a customer with a notice described in subparagraph (A) to furnish negative information about the customer to a consumer reporting agency.
(F) Safe harbor
A financial institution shall not be liable for failure to perform the duties required by this paragraph if, at the time of the failure, the financial institution maintained reasonable policies and procedures to comply with this paragraph or the financial institution reasonably believed that the institution is prohibited, by law, from contacting the consumer.
(G) Definitions
For purposes of this paragraph, the following definitions shall apply:
(i) Negative information
The term "negative information" means information concerning a customer's delinquencies, late payments, insolvency, or any form of default.
(ii) Customer; financial institution
The terms "customer" and "financial institution" have the same meanings as in
(8) Ability of consumer to dispute information directly with furnisher
(A) In general
The Bureau, in consultation with the Federal Trade Commission, the Federal banking agencies, and the National Credit Union Administration, shall prescribe regulations that shall identify the circumstances under which a furnisher shall be required to reinvestigate a dispute concerning the accuracy of information contained in a consumer report on the consumer, based on a direct request of a consumer.
(B) Considerations
In prescribing regulations under subparagraph (A), the agencies shall weigh—
(i) the benefits to consumers with the costs on furnishers and the credit reporting system;
(ii) the impact on the overall accuracy and integrity of consumer reports of any such requirements;
(iii) whether direct contact by the consumer with the furnisher would likely result in the most expeditious resolution of any such dispute; and
(iv) the potential impact on the credit reporting process if credit repair organizations, as defined in
(C) Applicability
Subparagraphs (D) through (G) shall apply in any circumstance identified under the regulations promulgated under subparagraph (A).
(D) Submitting a notice of dispute
A consumer who seeks to dispute the accuracy of information shall provide a dispute notice directly to such person at the address specified by the person for such notices that—
(i) identifies the specific information that is being disputed;
(ii) explains the basis for the dispute; and
(iii) includes all supporting documentation required by the furnisher to substantiate the basis of the dispute.
(E) Duty of person after receiving notice of dispute
After receiving a notice of dispute from a consumer pursuant to subparagraph (D), the person that provided the information in dispute to a consumer reporting agency shall—
(i) conduct an investigation with respect to the disputed information;
(ii) review all relevant information provided by the consumer with the notice;
(iii) complete such person's investigation of the dispute and report the results of the investigation to the consumer before the expiration of the period under
(iv) if the investigation finds that the information reported was inaccurate, promptly notify each consumer reporting agency to which the person furnished the inaccurate information of that determination and provide to the agency any correction to that information that is necessary to make the information provided by the person accurate.
(F) Frivolous or irrelevant dispute
(i) In general
This paragraph shall not apply if the person receiving a notice of a dispute from a consumer reasonably determines that the dispute is frivolous or irrelevant, including—
(I) by reason of the failure of a consumer to provide sufficient information to investigate the disputed information; or
(II) the submission by a consumer of a dispute that is substantially the same as a dispute previously submitted by or for the consumer, either directly to the person or through a consumer reporting agency under subsection (b), with respect to which the person has already performed the person's duties under this paragraph or subsection (b), as applicable.
(ii) Notice of determination
Upon making any determination under clause (i) that a dispute is frivolous or irrelevant, the person shall notify the consumer of such determination not later than 5 business days after making such determination, by mail or, if authorized by the consumer for that purpose, by any other means available to the person.
(iii) Contents of notice
A notice under clause (ii) shall include—
(I) the reasons for the determination under clause (i); and
(II) identification of any information required to investigate the disputed information, which may consist of a standardized form describing the general nature of such information.
(G) Exclusion of credit repair organizations
This paragraph shall not apply if the notice of the dispute is submitted by, is prepared on behalf of the consumer by, or is submitted on a form supplied to the consumer by, a credit repair organization, as defined in
(9) Duty to provide notice of status as medical information furnisher
A person whose primary business is providing medical services, products, or devices, or the person's agent or assignee, who furnishes information to a consumer reporting agency on a consumer shall be considered a medical information furnisher for purposes of this subchapter, and shall notify the agency of such status.
(b) Duties of furnishers of information upon notice of dispute
(1) In general
After receiving notice pursuant to
(A) conduct an investigation with respect to the disputed information;
(B) review all relevant information provided by the consumer reporting agency pursuant to
(C) report the results of the investigation to the consumer reporting agency;
(D) if the investigation finds that the information is incomplete or inaccurate, report those results to all other consumer reporting agencies to which the person furnished the information and that compile and maintain files on consumers on a nationwide basis; and
(E) if an item of information disputed by a consumer is found to be inaccurate or incomplete or cannot be verified after any reinvestigation under paragraph (1), for purposes of reporting to a consumer reporting agency only, as appropriate, based on the results of the reinvestigation promptly—
(i) modify that item of information;
(ii) delete that item of information; or
(iii) permanently block the reporting of that item of information.
(2) Deadline
A person shall complete all investigations, reviews, and reports required under paragraph (1) regarding information provided by the person to a consumer reporting agency, before the expiration of the period under
(c) Limitation on liability
Except as provided in
(1) subsection (a) of this section, including any regulations issued thereunder;
(2) subsection (e) of this section, except that nothing in this paragraph shall limit, expand, or otherwise affect liability under
(3) subsection (e) of
(d) Limitation on enforcement
The provisions of law described in paragraphs (1) through (3) of subsection (c) (other than with respect to the exception described in paragraph (2) of subsection (c)) shall be enforced exclusively as provided under
(e) Accuracy guidelines and regulations required
(1) Guidelines
The Bureau shall, with respect to persons or entities that are subject to the enforcement authority of the Bureau under
(A) establish and maintain guidelines for use by each person that furnishes information to a consumer reporting agency regarding the accuracy and integrity of the information relating to consumers that such entities furnish to consumer reporting agencies, and update such guidelines as often as necessary; and
(B) prescribe regulations requiring each person that furnishes information to a consumer reporting agency to establish reasonable policies and procedures for implementing the guidelines established pursuant to subparagraph (A).
(2) Criteria
In developing the guidelines required by paragraph (1)(A), the Bureau shall—
(A) identify patterns, practices, and specific forms of activity that can compromise the accuracy and integrity of information furnished to consumer reporting agencies;
(B) review the methods (including technological means) used to furnish information relating to consumers to consumer reporting agencies;
(C) determine whether persons that furnish information to consumer reporting agencies maintain and enforce policies to ensure the accuracy and integrity of information furnished to consumer reporting agencies; and
(D) examine the policies and processes that persons that furnish information to consumer reporting agencies employ to conduct reinvestigations and correct inaccurate information relating to consumers that has been furnished to consumer reporting agencies.
(
Editorial Notes
References in Text
The National Emergencies Act, referred to in subsec. (a)(1)(F)(i)(II)(bb), is
Prior Provisions
A prior section 623 of
Amendments
2020—Subsec. (a)(1)(F).
2018—Subsec. (a)(1)(E).
2010—Subsec. (a)(7)(D).
Subsec. (a)(8)(A).
Subsec. (e).
2003—Subsec. (a)(1)(A).
Subsec. (a)(1)(D).
Subsec. (a)(5).
Subsec. (a)(6).
Subsec. (a)(7).
Subsec. (a)(8).
Subsec. (a)(9).
Subsec. (b)(1)(E).
Subsec. (c).
Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2003 Amendment
Amendment by
Amendment by section 412(a) of
Effective Date
Section effective 365 days after Sept. 30, 1996, with special rule for early compliance, see section 2420 of
Model Disclosure Form
[For definitions of terms used in section 217(b) of
§1681s–3. Affiliate sharing
(a) Special rule for solicitation for purposes of marketing
(1) Notice
Any person that receives from another person related to it by common ownership or affiliated by corporate control a communication of information that would be a consumer report, but for clauses (i), (ii), and (iii) of
(A) it is clearly and conspicuously disclosed to the consumer that the information may be communicated among such persons for purposes of making such solicitations to the consumer; and
(B) the consumer is provided an opportunity and a simple method to prohibit the making of such solicitations to the consumer by such person.
(2) Consumer choice
(A) In general
The notice required under paragraph (1) shall allow the consumer the opportunity to prohibit all solicitations referred to in such paragraph, and may allow the consumer to choose from different options when electing to prohibit the sending of such solicitations, including options regarding the types of entities and information covered, and which methods of delivering solicitations the consumer elects to prohibit.
(B) Format
Notwithstanding subparagraph (A), the notice required under paragraph (1) shall be clear, conspicuous, and concise, and any method provided under paragraph (1)(B) shall be simple. The regulations prescribed to implement this section shall provide specific guidance regarding how to comply with such standards.
(3) Duration
(A) In general
The election of a consumer pursuant to paragraph (1)(B) to prohibit the making of solicitations shall be effective for at least 5 years, beginning on the date on which the person receives the election of the consumer, unless the consumer requests that such election be revoked.
(B) Notice upon expiration of effective period
At such time as the election of a consumer pursuant to paragraph (1)(B) is no longer effective, a person may not use information that the person receives in the manner described in paragraph (1) to make any solicitation for marketing purposes to the consumer, unless the consumer receives a notice and an opportunity, using a simple method, to extend the opt-out for another period of at least 5 years, pursuant to the procedures described in paragraph (1).
(4) Scope
This section shall not apply to a person—
(A) using information to make a solicitation for marketing purposes to a consumer with whom the person has a pre-existing business relationship;
(B) using information to facilitate communications to an individual for whose benefit the person provides employee benefit or other services pursuant to a contract with an employer related to and arising out of the current employment relationship or status of the individual as a participant or beneficiary of an employee benefit plan;
(C) using information to perform services on behalf of another person related by common ownership or affiliated by corporate control, except that this subparagraph shall not be construed as permitting a person to send solicitations on behalf of another person, if such other person would not be permitted to send the solicitation on its own behalf as a result of the election of the consumer to prohibit solicitations under paragraph (1)(B);
(D) using information in response to a communication initiated by the consumer;
(E) using information in response to solicitations authorized or requested by the consumer; or
(F) if compliance with this section by that person would prevent compliance by that person with any provision of State insurance laws pertaining to unfair discrimination in any State in which the person is lawfully doing business.
(5) No retroactivity
This subsection shall not prohibit the use of information to send a solicitation to a consumer if such information was received prior to the date on which persons are required to comply with regulations implementing this subsection.
(b) Notice for other purposes permissible
A notice or other disclosure under this section may be coordinated and consolidated with any other notice required to be issued under any other provision of law by a person that is subject to this section, and a notice or other disclosure that is equivalent to the notice required by subsection (a), and that is provided by a person described in subsection (a) to a consumer together with disclosures required by any other provision of law, shall satisfy the requirements of subsection (a).
(c) User requirements
Requirements with respect to the use by a person of information received from another person related to it by common ownership or affiliated by corporate control, such as the requirements of this section, constitute requirements with respect to the exchange of information among persons affiliated by common ownership or common corporate control, within the meaning of
(d) Definitions
For purposes of this section, the following definitions shall apply:
(1) Pre-existing business relationship
The term "pre-existing business relationship" means a relationship between a person, or a person's licensed agent, and a consumer, based on—
(A) a financial contract between a person and a consumer which is in force;
(B) the purchase, rental, or lease by the consumer of that person's goods or services, or a financial transaction (including holding an active account or a policy in force or having another continuing relationship) between the consumer and that person during the 18-month period immediately preceding the date on which the consumer is sent a solicitation covered by this section;
(C) an inquiry or application by the consumer regarding a product or service offered by that person, during the 3-month period immediately preceding the date on which the consumer is sent a solicitation covered by this section; or
(D) any other pre-existing customer relationship defined in the regulations implementing this section.
(2) Solicitation
The term "solicitation" means the marketing of a product or service initiated by a person to a particular consumer that is based on an exchange of information described in subsection (a), and is intended to encourage the consumer to purchase such product or service, but does not include communications that are directed at the general public or determined not to be a solicitation by the regulations prescribed under this section.
(
Editorial Notes
Prior Provisions
A prior section 624 of
Another prior section 624 of
Statutory Notes and Related Subsidiaries
Effective Date
Section subject to joint regulations establishing effective dates as prescribed by Federal Reserve Board and Federal Trade Commission, except as otherwise provided, see section 3 of
Regulations
"(1)
"(A) the Commodity Futures Trading Commission, with respect to entities subject to its enforcement authorities;
"(B) the Securities and Exchange Commission, with respect to entities subject to its enforcement authorities; and
"(C) the Bureau, with respect to other entities subject to this Act [see Short Title of 2003 Amendment note set out under
"(2)
"(3)
"(A) ensure that affiliate sharing notification methods provide a simple means for consumers to make determinations and choices under section 624 of the Fair Credit Reporting Act [
"(B) consider the affiliate sharing notification practices employed on the date of enactment of this Act [Dec. 4, 2003] by persons that will be subject to that section 624; and
"(C) ensure that notices and disclosures may be coordinated and consolidated, as provided in subsection (b) of that section 624.
"(4)
"(A) be issued in final form not later than 9 months after the date of enactment of this Act [Dec. 4, 2003]; and
"(B) become effective not later than 6 months after the date on which they are issued in final form."
[For definitions of terms used in section 214(b) of
Studies of Information Sharing Practices
"(1)
"(2)
"(A) identify—
"(i) the purposes for which financial institutions and other creditors and users of consumer reports share consumer information;
"(ii) the types of information shared by such entities with their affiliates;
"(iii) the number of choices provided to consumers with respect to the control of such sharing, and the degree to and manner in which consumers exercise such choices, if at all; and
"(iv) whether such entities share or may share personally identifiable transaction or experience information with affiliates for purposes—
"(I) that are related to employment or hiring, including whether the person that is the subject of such information is given notice of such sharing, and the specific uses of such shared information; or
"(II) of general publication of such information; and
"(B) specifically examine the information sharing practices that financial institutions and other creditors and users of consumer reports and their affiliates employ for the purpose of making underwriting decisions or credit evaluations of consumers.
"(3)
"(A)
"(B)
"(i) documents any changes in the areas of study referred to in paragraph (2)(A) occurring since the date of submission of the previous report;
"(ii) identifies any changes in the practices of financial institutions and other creditors and users of consumer reports in sharing consumer information with their affiliates for the purpose of making underwriting decisions or credit evaluations of consumers occurring since the date of submission of the previous report; and
"(iii) examines the effects that changes described in clause (ii) have had, if any, on the degree to which such affiliate sharing practices reduce the need for financial institutions, creditors, and other users of consumer reports to rely on consumer reports for such decisions."
[For definitions of terms used in section 214(e) of
§1681t. Relation to State laws
(a) In general
Except as provided in subsections (b) and (c), this subchapter does not annul, alter, affect, or exempt any person subject to the provisions of this subchapter from complying with the laws of any State with respect to the collection, distribution, or use of any information on consumers, or for the prevention or mitigation of identity theft, except to the extent that those laws are inconsistent with any provision of this subchapter, 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
(B)
(C) subsections (a) and (b) of
(D)
(E)
(F)
(i) with respect to
(ii) with respect to section 1785.25(a) of the California Civil Code (as in effect on September 30, 1996);
(G)
(H)
(I)
(J) subsections (i) and (j) of
(K) subsection (k) of
(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
(3) with respect to the disclosures required to be made under subsection (c), (d), (e), or (g) of
(A) shall not apply with respect to sections 1785.10, 1785.16, and 1785.20.2 of the California Civil Code (as in effect on December 4, 2003) and section 1785.15 through section 1785.15.2 of such Code (as in effect on such date);
(B) shall not apply with respect to sections 5–3–106(2) and 212–14.3–104.3 of the Colorado Revised Statutes (as in effect on December 4, 2003); and
(C) shall not be construed as limiting, annulling, affecting, or superseding any provision of the laws of any State regulating the use in an insurance activity, or regulating disclosures concerning such use, of a credit-based insurance score of a consumer by any person engaged in the business of insurance;
(4) with respect to the frequency of any disclosure under
(A) with respect to section 12–14.3–105(1)(d) of the Colorado Revised Statutes (as in effect on December 4, 2003);
(B) with respect to section 10–1–393(29)(C) of the Georgia Code (as in effect on December 4, 2003);
(C) with respect to section 1316.2 of title 10 of the Maine Revised Statutes (as in effect on December 4, 2003);
(D) with respect to sections 14–1209(a)(1) and 14–1209(b)(1)(i) of the Commercial Law Article of the Code of Maryland (as in effect on December 4, 2003);
(E) with respect to section 59(d) and
(F) with respect to section 56:11–37.10(a)(1) of the New Jersey Revised Statutes (as in effect on December 4, 2003); or
(G) with respect to
(5) with respect to the conduct required by the specific provisions of—
(A)
(B)
(C)
(D)
(E)
(F) subsections (e), (f), and (g) of
(G)
(H)
(I)
(c) "Firm offer of credit or insurance" defined
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
(d) Limitations
Subsections (b) and (c) do not affect any settlement, agreement, or consent judgment between any State Attorney General and any consumer reporting agency in effect on September 30, 1996.
(
Editorial Notes
Prior Provisions
A prior section 625 of
Amendments
2018—Subsec. (b)(1)(J).
Subsec. (b)(1)(K).
2003—Subsec. (a).
Subsec. (b)(1)(E).
Subsec. (b)(1)(G).
Subsec. (b)(1)(H).
Subsec. (b)(1)(I).
Subsec. (b)(3), (4).
Subsec. (b)(5).
Subsec. (d).
"(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 subchapter; and
"(C) gives greater protection to consumers than is provided under this subchapter."
1996—Subsec. (a).
Subsecs. (b) to (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by section 301(b) of
Amendment by section 302(d)(2) of
Effective Date of 2003 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date
Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of
§1681u. Disclosures to FBI for counterintelligence purposes
(a) Identity of financial institutions
Notwithstanding
(b) Identifying information
Notwithstanding the provisions of
(c) Court order for disclosure of consumer reports
Notwithstanding
(d) Prohibition of certain disclosure
(1) Prohibition
(A) In general
If a certification is issued under subparagraph (B) and notice of the right to judicial review under subsection (e) is provided, no consumer reporting agency that receives a request under subsection (a) or (b) or an order under subsection (c), or officer, employee, or agent thereof, shall disclose or specify in any consumer report, that the Federal Bureau of Investigation has sought or obtained access to information or records under subsection (a), (b), or (c).
(B) Certification
The requirements of subparagraph (A) shall apply if the Director of the Federal Bureau of Investigation, or a designee of the Director whose rank shall be no lower than Deputy Assistant Director at Bureau headquarters or a Special Agent in Charge of a Bureau field office, certifies that the absence of a prohibition of disclosure under this subsection may result in—
(i) a danger to the national security of the United States;
(ii) interference with a criminal, counterterrorism, or counterintelligence investigation;
(iii) interference with diplomatic relations; or
(iv) danger to the life or physical safety of any person.
(2) Exception
(A) In general
A consumer reporting agency that receives a request under subsection (a) or (b) or an order under subsection (c), or officer, employee, or agent thereof, may disclose information otherwise subject to any applicable nondisclosure requirement to—
(i) those persons to whom disclosure is necessary in order to comply with the request;
(ii) an attorney in order to obtain legal advice or assistance regarding the request; or
(iii) other persons as permitted by the Director of the Federal Bureau of Investigation or the designee of the Director.
(B) Application
A person to whom disclosure is made under subparagraph (A) shall be subject to the nondisclosure requirements applicable to a person to whom a request under subsection (a) or (b) or an order under subsection (c) is issued in the same manner as the person to whom the request is issued.
(C) Notice
Any recipient that discloses to a person described in subparagraph (A) information otherwise subject to a nondisclosure requirement shall inform the person of the applicable nondisclosure requirement.
(D) Identification of disclosure recipients
At the request of the Director of the Federal Bureau of Investigation or the designee of the Director, any person making or intending to make a disclosure under clause (i) or (iii) of subparagraph (A) shall identify to the Director or such designee the person to whom such disclosure will be made or to whom such disclosure was made prior to the request.
(e) Judicial review
(1) In general
A request under subsection (a) or (b) or an order under subsection (c) or a non-disclosure requirement imposed in connection with such request under subsection (d) shall be subject to judicial review under
(2) Notice
A request under subsection (a) or (b) or an order under subsection (c) shall include notice of the availability of judicial review described in paragraph (1).
(f) 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.
(g) 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.
(h) 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 subchapter. Nothing in this section shall be construed to authorize or permit the withholding of information from the Congress.
(i) Reports to Congress
(1) On a semiannual basis, the Attorney General shall fully inform the Permanent Select Committee on Intelligence and the Committee on Banking, Finance and Urban Affairs of the House of Representatives, and the Select Committee on Intelligence and the Committee on Banking, Housing, and Urban Affairs of the Senate concerning all requests made pursuant to subsections (a), (b), and (c).
(2) In the case of the semiannual reports required to be submitted under paragraph (1) to the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate, the submittal dates for such reports shall be as provided in
(j) 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.
(k) 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.
(l) Good-faith exception
Notwithstanding any other provision of this subchapter, 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 subchapter, the constitution of any State, or any law or regulation of any State or any political subdivision of any State.
(m) Limitation of remedies
Notwithstanding any other provision of this subchapter, the remedies and sanctions set forth in this section shall be the only judicial remedies and sanctions for violation of this section.
(n) 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.
(
Editorial Notes
References in Text
This subchapter, referred to in subsec. (h), was in the original, "this Act" and was translated as reading "this title", meaning title VI of
Prior Provisions
A prior section 626 of
Amendments
2015—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsecs. (e) to (n).
2006—Subsec. (d).
Subsec. (d)(4).
2002—Subsec. (h).
2001—
Subsec. (a).
Subsec. (b).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Change of Name
Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of
Effective Date of 2001 Amendment
Amendment by section 358(g)(1)(A) of
§1681v. Disclosures to governmental agencies for counterterrorism purposes
(a) Disclosure
Notwithstanding
(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) Prohibition of certain disclosure
(1) Prohibition
(A) In general
If a certification is issued under subparagraph (B) and notice of the right to judicial review under subsection (d) is provided, no consumer reporting agency that receives a request under subsection (a), or officer, employee, or agent thereof, shall disclose or specify in any consumer report, that a government agency described in subsection (a) has sought or obtained access to information or records under subsection (a).
(B) Certification
The requirements of subparagraph (A) shall apply if the head of the government agency described in subsection (a), or a designee, certifies that the absence of a prohibition of disclosure under this subsection may result in—
(i) a danger to the national security of the United States;
(ii) interference with a criminal, counterterrorism, or counterintelligence investigation;
(iii) interference with diplomatic relations; or
(iv) danger to the life or physical safety of any person.
(2) Exception
(A) In general
A consumer reporting agency that receives a request under subsection (a), or officer, employee, or agent thereof, may disclose information otherwise subject to any applicable nondisclosure requirement to—
(i) those persons to whom disclosure is necessary in order to comply with the request;
(ii) an attorney in order to obtain legal advice or assistance regarding the request; or
(iii) other persons as permitted by the head of the government agency described in subsection (a) or a designee.
(B) Application
A person to whom disclosure is made under subparagraph (A) shall be subject to the nondisclosure requirements applicable to a person to whom a request under subsection (a) is issued in the same manner as the person to whom the request is issued.
(C) Notice
Any recipient that discloses to a person described in subparagraph (A) information otherwise subject to a nondisclosure requirement shall inform the person of the applicable nondisclosure requirement.
(D) Identification of disclosure recipients
At the request of the head of the government agency described in subsection (a) or a designee, any person making or intending to make a disclosure under clause (i) or (iii) of subparagraph (A) shall identify to the head or such designee the person to whom such disclosure will be made or to whom such disclosure was made prior to the request.
(d) Judicial review
(1) In general
A request under subsection (a) or a non-disclosure requirement imposed in connection with such request under subsection (c) shall be subject to judicial review under
(2) Notice
A request under subsection (a) shall include notice of the availability of judicial review described in paragraph (1).
(e) Rule of construction
Nothing in
(f) Safe harbor
Notwithstanding any other provision of this subchapter, 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 government agency pursuant to the provisions of this section shall not be liable to any person for such disclosure under this subchapter, the constitution of any State, or any law or regulation of any State or any political subdivision of any State.
(g) Reports to Congress
(1) On a semi-annual basis, the Attorney General shall fully inform the Committee on the Judiciary, the Committee on Financial Services, and the Permanent Select Committee on Intelligence of the House of Representatives and the Committee on the Judiciary, the Committee on Banking, Housing, and Urban Affairs, and the Select Committee on Intelligence of the Senate concerning all requests made pursuant to subsection (a).
(2) In the case of the semiannual reports required to be submitted under paragraph (1) to the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate, the submittal dates for such reports shall be as provided in
(
Editorial Notes
Amendments
2015—Subsec. (a).
Subsec. (c).
Subsecs. (d) to (g).
2006—Subsec. (c).
Subsec. (c)(4).
Subsec. (f).
2004—Subsec. (e).
2003—Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2004 Amendment
Amendment by
Effective Date of 2003 Amendment
Amendment by
Effective Date
Section applicable with respect to reports filed or records maintained on, before, or after Oct. 26, 2001, see section 358(h) of
§1681w. Disposal of records
(a) Regulations
(1) In general
The Federal Trade Commission, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal banking agencies, and the National Credit Union Administration, with respect to the entities that are subject to their respective enforcement authority under
(2) Coordination
Each agency required to prescribe regulations under paragraph (1) shall—
(A) consult and coordinate with each other such agency so that, to the extent possible, the regulations prescribed by each such agency are consistent and comparable with the regulations by each such other agency; and
(B) ensure that such regulations are consistent with the requirements and regulations issued pursuant to
(3) Exemption authority
In issuing regulations under this section, the agencies identified in paragraph (1) may exempt any person or class of persons from application of those regulations, as such agency deems appropriate to carry out the purpose of this section.
(b) Rule of construction
Nothing in this section shall be construed—
(1) to require a person to maintain or destroy any record pertaining to a consumer that is not imposed under other law; or
(2) to alter or affect any requirement imposed under any other provision of law to maintain or destroy such a record.
(
Editorial Notes
References in Text
Amendments
2010—Subsec. (a)(1).
Subsec. (a)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by
Effective Date
Section subject to joint regulations establishing effective dates as prescribed by Federal Reserve Board and Federal Trade Commission, except as otherwise provided, see section 3 of
§1681x. Corporate and technological circumvention prohibited
The Commission shall prescribe regulations, to become effective not later than 90 days after December 4, 2003, to prevent a consumer reporting agency from circumventing or evading treatment as a consumer reporting agency described in
(1) by means of a corporate reorganization or restructuring, including a merger, acquisition, dissolution, divestiture, or asset sale of a consumer reporting agency; or
(2) by maintaining or merging public record and credit account information in a manner that is substantially equivalent to that described in paragraphs (1) and (2) of
(
Statutory Notes and Related Subsidiaries
Effective Date
Section subject to joint regulations establishing effective dates as prescribed by Federal Reserve Board and Federal Trade Commission, except as otherwise provided, see section 3 of