A
debt collector threatens you with criminal
prosecution or tries to imply your committing a
crime that you could be arrested for and go to
jail.
If the debt collector has violated any of your
rights under the Fair Debt Collection Practices
Act, contact us at Financial Independence &
Resource Education, Inc., to submit copies (not
originals) of all correspondence (including
proof of payment, letters, call logs, etc.) and
we will refer you to the State Attorney
General's Office and to the Federal Trade
Commission who will notify the debt collector
that they are in violation of the FDCPA. The
debt collector may be required to pay you money
in fines and damages.
FAIR
DEBT COLLECTION PRACTICES ACT
15 USC Section 1692
THE FAIR DEBT
COLLECTION PRACTICES ACT
As amended by Public Law 104-208, 110 Stat. 3009
(Sept. 30, 1996)
To amend the Consumer Credit Protection Act to
prohibit abusive practices by debt collectors.
Be it enacted by the Senate and House of
Representatives of the United States of America
in Congress assembled, That the Consumer Credit
Protection Act (15 U.S.C. 1601 et seq.) is
amended by adding at the end thereof the
following new title:
TITLE VIII - DEBT COLLECTION PRACTICES [Fair
Debt Collection Practices Act]
Sec.
801. Short Title
802. Congressional findings and declaration of
purpose
803. Definitions
804. Acquisition of location information
805. Communication in connection with debt
collection
806. Harassment or abuse
807. False or misleading representations
808. Unfair practice
809. Validation of debts
810. Multiple debts
811. Legal actions by debt collectors
812. Furnishing certain deceptive forms
813. Civil liability
814. Administrative enforcement
815. Reports to Congress by the Commission
816. Relation to State laws
817. Exemption for State regulation
818. Effective date
¤ 801. Short Title [15 USC 1601
note]
This title may be cited as the "Fair Debt
Collection Practices Act."
¤ 802. Congressional findings and
declarations of purpose [15 USC 1692]
(a) There is abundant evidence of the use of
abusive, deceptive, and unfair debt collection
practices by many debt collectors. Abusive debt
collection practices contribute to the number of
personal bankruptcies, to marital instability,
to the loss of jobs, and to invasions of
individual privacy.
(b) Existing laws and procedures for redressing
these injuries are inadequate to protect
consumers.
(c) Means other than misrepresentation or other
abusive debt collection practices are available
for the effective collection of debts.
(d) Abusive debt collection practices are
carried on to a substantial extent in interstate
commerce and through means and instrumentalities
of such commerce. Even where abusive debt
collection practices are purely intrastate in
character, they nevertheless directly affect
interstate commerce.
(e) It is the purpose of this title to eliminate
abusive debt collection practices by debt
collectors, to insure that those debt collectors
who refrain from using abusive debt collection
practices are not competitively disadvantaged,
and to promote consistent State action to
protect consumers against debt collection
abuses.
¤ 803. Definitions [15 USC 1692a]
As used in this title --
(1) The term "Commission" means the Federal
Trade Commission.
(2) The term "communication" means the conveying
of information regarding a debt directly or
indirectly to any person through any medium.
(3) The term "consumer" means any natural person
obligated or allegedly obligated to pay any
debt.
(4) The term "creditor" means any person who
offers or extends credit creating a debt or to
whom a debt is owed, but such term does not
include any person to the extent that he
receives an assignment or transfer of a debt in
default solely for the purpose of facilitating
collection of such debt for another.
(5) The term "debt" means any obligation or
alleged obligation of a consumer to pay money
arising out of a transaction in which the money,
property, insurance or services which are the
subject of the transaction are primarily for
personal, family, or household purposes, whether
or not such obligation has been reduced to
judgment.
(6) The term "debt collector" means any person
who uses any instrumentality of interstate
commerce or the mails in any business the
principal purpose of which is the collection of
any debts, or who regularly collects or attempts
to collect, directly or indirectly, debts owed
or due or asserted to be owed or due another.
Notwithstanding the exclusion provided by clause
(F) of the last sentence of this paragraph, the
term includes any creditor who, in the process
of collecting his own debts, uses any name other
than his own which would indicate that a third
person is collecting or attempting to collect
such debts. For the purpose of section 808(6),
such term also includes any person who uses any
instrumentality of interstate commerce or the
mails in any business the principal purpose of
which is the enforcement of security interests.
The term does not include --
(A) any officer or employee of a creditor while,
in the name of the creditor, collecting debts
for such creditor;
(B) any person while acting as a debt collector
for another person, both of whom are related by
common ownership or affiliated by corporate
control, if the person acting as a debt
collector does so only for persons to whom it is
so related or affiliated and if the principal
business of such person is not the collection of
debts;
(C) any officer or employee of the United States
or any State to the extent that collecting or
attempting to collect any debt is in the
performance of his official duties;
(D) any person while serving or attempting to
serve legal process on any other person in
connection with the judicial enforcement of any
debt;
(E) any nonprofit organization which, at the
request of consumers, performs bona fide
consumer credit counseling and assists consumers
in the liquidation of their debts by receiving
payments from such consumers and distributing
such amounts to creditors; and
(F) any person collecting or attempting to
collect any debt owed or due or asserted to be
owed or due another to the extent such activity
(i) is incidental to a bona fide fiduciary
obligation or a bona fide escrow arrangement;
(ii) concerns a debt which was originated by
such person; (iii) concerns a debt which was not
in default at the time it was obtained by such
person; or (iv) concerns a debt obtained by such
person as a secured party in a commercial credit
transaction involving the creditor.
(7) The term "location information" means a
consumer's place of abode and his telephone
number at such place, or his place of
employment.
(8) The term "State" means any State, territory,
or possession of the United States, the District
of Columbia, the Commonwealth of Puerto Rico, or
any political subdivision of any of the
foregoing.
¤ 804. Acquisition of location
information [15 USC 1692b]
Any debt collector communicating with any person
other than the consumer for the purpose of
acquiring location information about the
consumer shall --
(1) identify himself, state that he is
confirming or correcting location information
concerning the consumer, and, only if expressly
requested, identify his employer;
(2) not state that such consumer owes any debt;
(3) not communicate with any such person more
than once unless requested to do so by such
person or unless the debt collector reasonably
believes that the earlier response of such
person is erroneous or incomplete and that such
person now has correct or complete location
information;
(4) not communicate by post card;
(5) not use any language or symbol on any
envelope or in the contents of any communication
effected by the mails or telegram that indicates
that the debt collector is in the debt
collection business or that the communication
relates to the collection of a debt; and
(6) after the debt collector knows the consumer
is represented by an attorney with regard to the
subject debt and has knowledge of, or can
readily ascertain, such attorney's name and
address, not communicate with any person other
than that attorney, unless the attorney fails to
respond within a reasonable period of time to
the communication from the debt collector.
¤ 805. Communication in connection
with debt collection [15 USC 1692c]
(a) COMMUNICATION WITH THE CONSUMER GENERALLY.
Without the prior consent of the consumer given
directly to the debt collector or the express
permission of a court of competent jurisdiction,
a debt collector may not communicate with a
consumer in connection with the collection of
any debt --
(1) at any unusual time or place or a time or
place known or which should be known to be
inconvenient to the consumer. In the absence of
knowledge of circumstances to the contrary, a
debt collector shall assume that the convenient
time for communicating with a consumer is after
8 o'clock antimeridian and before 9 o'clock
postmeridian, local time at the consumer's
location;
(2) if the debt collector knows the consumer is
represented by an attorney with respect to such
debt and has knowledge of, or can readily
ascertain, such attorney's name and address,
unless the attorney fails to respond within a
reasonable period of time to a communication
from the debt collector or unless the attorney
consents to direct communication with the
consumer; or
(3) at the consumer's place of employment if the
debt collector knows or has reason to know that
the consumer's employer prohibits the consumer
from receiving such communication.
(b) COMMUNICATION WITH THIRD PARTIES. Except as
provided in section 804, without the prior
consent of the consumer given directly to the
debt collector, or the express permission of a
court of competent jurisdiction, or as
reasonably necessary to effectuate a
postjudgment judicial remedy, a debt collector
may not communicate, in connection with the
collection of any debt, with any person other
than a consumer, his attorney, a consumer
reporting agency if otherwise permitted by law,
the creditor, the attorney of the creditor, or
the attorney of the debt collector.
(c) CEASING COMMUNICATION. If a consumer
notifies a debt collector in writing that the
consumer refuses to pay a debt or that the
consumer wishes the debt collector to cease
further communication with the consumer, the
debt collector shall not communicate further
with the consumer with respect to such debt,
except --
(1) to advise the consumer that the debt
collector's further efforts are being
terminated;
(2) to notify the consumer that the debt
collector or creditor may invoke specified
remedies which are ordinarily invoked by such
debt collector or creditor; or
(3) where applicable, to notify the consumer
that the debt collector or creditor intends to
invoke a specified remedy.
If such notice from the consumer is made by
mail, notification shall be complete upon
receipt.
(d) For the purpose of this section, the term
"consumer" includes the consumer's spouse,
parent (if the consumer is a minor), guardian,
executor, or administrator.
¤ 806. Harassment or abuse [15 USC
1692d]
A debt collector may not engage in any conduct
the natural consequence of which is to harass,
oppress, or abuse any person in connection with
the collection of a debt. Without limiting the
general application of the foregoing, the
following conduct is a violation of this
section:
(1) The use or threat of use of violence or
other criminal means to harm the physical
person, reputation, or property of any person.
(2) The use of obscene or profane language or
language the natural consequence of which is to
abuse the hearer or reader.
(3) The publication of a list of consumers who
allegedly refuse to pay debts, except to a
consumer reporting agency or to persons meeting
the requirements of section 603(f) or 604(3)1 of
this Act.
(4) The advertisement for sale of any debt to
coerce payment of the debt.
(5) Causing a telephone to ring or engaging any
person in telephone conversation repeatedly or
continuously with intent to annoy, abuse, or
harass any person at the called number.
(6) Except as provided in section 804, the
placement of telephone calls without meaningful
disclosure of the caller's identity.
¤ 807. False or misleading
representations [15 USC 1962e]
A debt collector may not use any false,
deceptive, or misleading representation or means
in connection with the collection of any debt.
Without limiting the general application of the
foregoing, the following conduct is a violation
of this section:
(1) The false representation or implication that
the debt collector is vouched for, bonded by, or
affiliated with the United States or any State,
including the use of any badge, uniform, or
facsimile thereof.
(2) The false representation of --
(A) the character, amount, or legal status of
any debt; or
(B) any services rendered or compensation which
may be lawfully received by any debt collector
for the collection of a debt.
(3) The false representation or implication that
any individual is an attorney or that any
communication is from an attorney.
(4) The representation or implication that
nonpayment of any debt will result in the arrest
or imprisonment of any person or the seizure,
garnishment, attachment, or sale of any property
or wages of any person unless such action is
lawful and the debt collector or creditor
intends to take such action.
(5) The threat to take any action that cannot
legally be taken or that is not intended to be
taken.
(6) The false representation or implication that
a sale, referral, or other transfer of any
interest in a debt shall cause the consumer to
--
(A) lose any claim or defense to payment of the
debt; or
(B) become subject to any practice prohibited by
this title.
(7) The false representation or implication that
the consumer committed any crime or other
conduct in order to disgrace the consumer.
(8) Communicating or threatening to communicate
to any person credit information which is known
or which should be known to be false, including
the failure to communicate that a disputed debt
is disputed.
(9) The use or distribution of any written
communication which simulates or is falsely
represented to be a document authorized, issued,
or approved by any court, official, or agency of
the United States or any State, or which creates
a false impression as to its source,
authorization, or approval.
(10) The use of any false representation or
deceptive means to collect or attempt to collect
any debt or to obtain information concerning a
consumer.
(11) The failure to disclose in the initial
written communication with the consumer and, in
addition, if the initial communication with the
consumer is oral, in that initial oral
communication, that the debt collector is
attempting to collect a debt and that any
information obtained will be used for that
purpose, and the failure to disclose in
subsequent communications that the communication
is from a debt collector, except that this
paragraph shall not apply to a formal pleading
made in connection with a legal action.
(12) The false representation or implication
that accounts have been turned over to innocent
purchasers for value.
(13) The false representation or implication
that documents are legal process.
(14) The use of any business, company, or
organization name other than the true name of
the debt collector's business, company, or
organization.
(15) The false representation or implication
that documents are not legal process forms or do
not require action by the consumer.
(16) The false representation or implication
that a debt collector operates or is employed by
a consumer reporting agency as defined by
section 603(f) of this Act.
¤ 808. Unfair practices [15 USC
1692f]
A debt collector may not use unfair or
unconscionable means to collect or attempt to
collect any debt. Without limiting the general
application of the foregoing, the following
conduct is a violation of this section:
(1) The collection of any amount (including any
interest, fee, charge, or expense incidental to
the principal obligation) unless such amount is
expressly authorized by the agreement creating
the debt or permitted by law.
(2) The acceptance by a debt collector from any
person of a check or other payment instrument
postdated by more than five days unless such
person is notified in writing of the debt
collector's intent to deposit such check or
instrument not more than ten nor less than three
business days prior to such deposit.
(3) The solicitation by a debt collector of any
postdated check or other postdated payment
instrument for the purpose of threatening or
instituting criminal prosecution.
(4) Depositing or threatening to deposit any
postdated check or other postdated payment
instrument prior to the date on such check or
instrument.
(5) Causing charges to be made to any person for
communications by concealment of the true
propose of the communication. Such charges
include, but are not limited to, collect
telephone calls and telegram fees.
(6) Taking or threatening to take any
nonjudicial action to effect dispossession or
disablement of property if --
(A) there is no present right to possession of
the property claimed as collateral through an
enforceable security interest;
(B) there is no present intention to take
possession of the property; or
(C) the property is exempt by law from such
dispossession or disablement.
(7) Communicating with a consumer regarding a
debt by post card.
(8) Using any language or symbol, other than the
debt collector's address, on any envelope when
communicating with a consumer by use of the
mails or by telegram, except that a debt
collector may use his business name if such name
does not indicate that he is in the debt
collection business.
¤ 809. Validation of debts [15 USC
1692g]
(a) Within five days after the initial
communication with a consumer in connection with
the collection of any debt, a debt collector
shall, unless the following information is
contained in the initial communication or the
consumer has paid the debt, send the consumer a
written notice containing --
(1) the amount of the debt;
(2) the name of the creditor to whom the debt is
owed;
(3) a statement that unless the consumer, within
thirty days after receipt of the notice,
disputes the validity of the debt, or any
portion thereof, the debt will be assumed to be
valid by the debt collector;
(4) a statement that if the consumer notifies
the debt collector in writing within the
thirty-day period that the debt, or any portion
thereof, is disputed, the debt collector will
obtain verification of the debt or a copy of a
judgment against the consumer and a copy of such
verification or judgment will be mailed to the
consumer by the debt collector; and
(5) a statement that, upon the consumer's
written request within the thirty-day period,
the debt collector will provide the consumer
with the name and address of the original
creditor, if different from the current
creditor.
(b) If the consumer notifies the debt collector
in writing within the thirty-day period
described in subsection (a) that the debt, or
any portion thereof, is disputed, or that the
consumer requests the name and address of the
original creditor, the debt collector shall
cease collection of the debt, or any disputed
portion thereof, until the debt collector
obtains verification of the debt or any copy of
a judgment, or the name and address of the
original creditor, and a copy of such
verification or judgment, or name and address of
the original creditor, is mailed to the consumer
by the debt collector.
(c) The failure of a consumer to dispute the
validity of a debt under this section may not be
construed by any court as an admission of
liability by the consumer.
¤ 810. Multiple debts [15 USC 1692h]
If any consumer owes multiple debts and makes
any single payment to any debt collector with
respect to such debts, such debt collector may
not apply such payment to any debt which is
disputed by the consumer and, where applicable,
shall apply such payment in accordance with the
consumer's directions.
¤ 811. Legal actions by debt
collectors [15 USC 1692i]
(a) Any debt collector who brings any legal
action on a debt against any consumer shall --
(1) in the case of an action to enforce an
interest in real property securing the
consumer's obligation, bring such action only in
a judicial district or similar legal entity in
which such real property is located; or
(2) in the case of an action not described in
paragraph (1), bring such action only in the
judicial district or similar legal entity --
(A) in which such consumer signed the contract
sued upon; or
(B) in which such consumer resides at the
commencement of the action.
(b) Nothing in this title shall be construed to
authorize the bringing of legal actions by debt
collectors.
¤ 812. Furnishing certain deceptive
forms [15 USC 1692j]
(a) It is unlawful to design, compile, and
furnish any form knowing that such form would be
used to create the false belief in a consumer
that a person other than the creditor of such
consumer is participating in the collection of
or in an attempt to collect a debt such consumer
allegedly owes such creditor, when in fact such
person is not so participating.
(b) Any person who violates this section shall
be liable to the same extent and in the same
manner as a debt collector is liable under
section 813 for failure to comply with a
provision of this title.
¤ 813. Civil liability [15 USC
1692k]
(a) Except as otherwise provided by this
section, any debt collector who fails to comply
with any provision of this title with respect to
any person is liable to such person in an amount
equal to the sum of --
(1) any actual damage sustained by such person
as a result of such failure;
(2) (A) in the case of any action by an
individual, such additional damages as the court
may allow, but not exceeding $1,000; or
(B) in the case of a class action, (i) such
amount for each named plaintiff as could be
recovered under subparagraph (A), and (ii) such
amount as the court may allow for all other
class members, without regard to a minimum
individual recovery, not to exceed the lesser of
$500,000 or 1 per centum of the net worth of the
debt collector; and
(3) in the case of any successful action to
enforce the foregoing liability, the costs of
the action, together with a reasonable
attorney's fee as determined by the court. On a
finding by the court that an action under this
section was brought in bad faith and for the
purpose of harassment, the court may award to
the defendant attorney's fees reasonable in
relation to the work expended and costs.
(b) In determining the amount of liability in
any action under subsection (a), the court shall
consider, among other relevant factors --
(1) in any individual action under subsection
(a)(2)(A), the frequency and persistence of
noncompliance by the debt collector, the nature
of such noncompliance, and the extent to which
such noncompliance was intentional; or
(2) in any class action under subsection
(a)(2)(B), the frequency and persistence of
noncompliance by the debt collector, the nature
of such noncompliance, the resources of the debt
collector, the number of persons adversely
affected, and the extent to which the debt
collector's noncompliance was intentional.
(c) A debt collector may not be held liable in
any action brought under this title if the debt
collector shows by a preponderance of evidence
that the violation was not intentional and
resulted from a bona fide error notwithstanding
the maintenance of procedures reasonably adapted
to avoid any such error.
(d) An action to enforce any liability created
by this title may be brought in any appropriate
United States district court without regard to
the amount in controversy, or in any other court
of competent jurisdiction, within one year from
the date on which the violation occurs.
(e) No provision of this section imposing any
liability shall apply to any act done or omitted
in good faith in conformity with any advisory
opinion of the Commission, notwithstanding that
after such act or omission has occurred, such
opinion is amended, rescinded, or determined by
judicial or other authority to be invalid for
any reason.
¤ 814. Administrative enforcement
[15 USC 1692l]
(a) Compliance with this title shall be enforced
by the Commission, except to the extend that
enforcement of the requirements imposed under
this title is specifically committed to another
agency under subsection (b). For purpose of the
exercise by the Commission of its functions and
powers under the Federal Trade Commission Act, a
violation of this title shall be deemed an
unfair or deceptive act or practice in violation
of that Act. All of the functions and powers of
the Commission under the Federal Trade
Commission Act are available to the Commission
to enforce compliance by any person with this
title, irrespective of whether that person is
engaged in commerce or meets any other
jurisdictional tests in the Federal Trade
Commission Act, including the power to enforce
the provisions of this title in the same manner
as if the violation had been a violation of a
Federal Trade Commission trade regulation rule.
(b) Compliance with any requirements imposed
under this title shall be enforced under --
(1) section 8 of the Federal Deposit Insurance
Act, in the case of --
(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 the deposits or accounts of which are
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;
(2) section 5(d) of the Home Owners Loan Act of
1933, section 407 of the National Housing Act,
and sections 6(i) and 17 of the Federal Home
Loan Bank Act, by the Federal Home Loan Bank
Board (acting directing or through the Federal
Savings and Loan Insurance Corporation), in the
case of any institution subject to any of those
provisions;
(3) the Federal Credit Union Act, by the
Administrator of the National Credit Union
Administration with respect to any Federal
credit union;
(4) subtitle IV of Title 49, by the Interstate
Commerce Commission with respect to any common
carrier subject to such subtitle;
(5) the Federal Aviation Act of 1958, by the
Secretary of Transportation with respect to any
air carrier or any foreign air carrier subject
to that Act; and
(6) the Packers and Stockyards Act, 1921 (except
as provided in section 406 of that Act), by the
Secretary of Agriculture with respect to any
activities subject to that Act.
(c) 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 title shall be deemed to be a
violation of a requirement imposed under that
Act. In addition to its powers under any
provision of law specifically referred to in
subsection (b), each of the agencies referred to
in that subsection may exercise, for the purpose
of enforcing compliance with any requirement
imposed under this title any other authority
conferred on it by law, except as provided in
subsection (d).
(d) Neither the Commission nor any other agency
referred to in subsection (b) may promulgate
trade regulation rules or other regulations with
respect to the collection of debts by debt
collectors as defined in this title.
¤ 815. Reports to Congress by the
Commission [15 USC 1692m]
(a) Not later than one year after the effective
date of this title and at one-year intervals
thereafter, the Commission shall make reports to
the Congress concerning the administration of
its functions under this title, including such
recommendations as the Commission deems
necessary or appropriate. In addition, each
report of the Commission shall include its
assessment of the extent to which compliance
with this title is being achieved and a summary
of the enforcement actions taken by the
Commission under section 814 of this title.
(b) In the exercise of its functions under this
title, the Commission may obtain upon request
the views of any other Federal agency which
exercises enforcement functions under section
814 of this title.
¤ 816. Relation to State laws [15
USC 1692n]
This title does not annul, alter, or affect, or
exempt any person subject to the provisions of
this title from complying with the laws of any
State with respect to debt collection practices,
except to the extent that those laws are
inconsistent with any provision of this title,
and then only to the extent of the
inconsistency. For purposes of this section, a
State law is not inconsistent with this title if
the protection such law affords any consumer is
greater than the protection provided by this
title.
¤ 817. Exemption for State
regulation [15 USC 1692o]
The Commission shall by regulation exempt from
the requirements of this title any class of debt
collection practices within any State if the
Commission determines that under the law of that
State that class of debt collection practices is
subject to requirements substantially similar to
those imposed by this title, and that there is
adequate provision for enforcement.
¤ 818. Effective date [15 USC 1692 note]
This title takes effect upon the expiration of
six months after the date of its enactment, but
section 809 shall apply only with respect to
debts for which the initial attempt to collect
occurs after such effective date.
Approved September 20, 1977
ENDNOTES
1. So in original; however, should read
"604(a)(3)."
LEGISLATIVE HISTORY:
Public Law 95-109 [H.R. 5294]
HOUSE REPORT No. 95-131 (Comm. on Banking,
Finance, and Urban Affairs).
SENATE REPORT No. 95-382 (Comm. on Banking,
Housing, and Urban Affairs).
CONGRESSIONAL RECORD, Vol. 123 (1977):
Apr. 4, considered and passed House.
Aug. 5, considered and passed Senate, amended.
Sept. 8, House agreed to Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS,
Vol. 13, No. 39:
Sept. 20, Presidential statement.
AMENDMENTS:
SECTION 621, SUBSECTIONS (b)(3), (b)(4) and
(b)(5) were amended to transfer certain
administrative enforcement responsibilities,
pursuant to Pub. L. 95-473, ¤ 3(b), Oct. 17,
1978. 92 Stat. 166; Pub. L. 95-630, Title V. ¤
501, November 10, 1978, 92 Stat. 3680; Pub. L.
98-443, ¤ 9(h), Oct. 4, 1984, 98 Stat. 708.
SECTION 803, SUBSECTION (6), defining "debt
collector," was amended to repeal the attorney
at law exemption at former Section (6)(F) and to
redesignate Section 803(6)(G) pursuant to Pub.
L. 99-361, July 9, 1986, 100 Stat. 768. For
legislative history, see H.R. 237, HOUSE REPORT
No. 99-405 (Comm. on Banking, Finance and Urban
Affairs). CONGRESSIONAL RECORD: Vol. 131 (1985):
Dec. 2, considered and passed House. Vol. 132
(1986): June 26, considered and passed Senate.
SECTION 807, SUBSECTION (11), was amended to
affect when debt collectors must state (a) that
they are attempting to collect a debt and (b)
that information obtained will be used for that
purpose, pursuant to Pub. L. 104-208 ¤ 2305, 110
Stat. 3009 (Sept. 30, 1996).
Fair Credit
Reporting Act (FCRA)
Fair Credit Reporting Act (15 U.S.C. §§
1681-1681(v), as amended)
The
Act protects information collected by consumer
reporting agencies such as credit bureaus,
medical information companies and tenant
screening services. Information in a consumer
report cannot be provided to anyone who does not
have a purpose specified in the Act. Companies
that provide information to consumer reporting
agencies also have specific legal obligations,
including the duty to investigate disputed
information. Also, users of the information for
credit, insurance, or employment purposes must
notify the consumer when an adverse action is
taken on the basis of such reports. Further,
users must identify the company that provided
the report, so that the accuracy and
completeness of the report may be verified or
contested by the consumer.
Under the Fair Credit Reporting Act, you have
the right to the following:
Know
all the information that's in your credit
report. In most cases, you have the right to
know the source of that information
Obtain a free copy of your report within 60 days
of a credit denial. Otherwise, the credit bureau
may charge you a nominal fee for this service.
Know who has requested your report in the last
year.
Confidentiality of personal medical information.
Such information can only be released with your
permission. Approve access to your credit record
by prospective employers. Have the credit bureau
investigate an error in your report. You must
notify the bureau of your dispute in writing.
The credit bureau must notify you within five
days of a completed investigation and fix
mistakes in your record within 30 days. Then it
must send a corrected report to anyone who asked
for a copy in the past six months. At your
request, the bureau must also send a revised
report to potential employers who have requested
it within the past two years. If you disagree
with the credit bureau's conclusion, you have a
right to include a brief explanation in your
credit report. Request credit bureaus stop
selling your name to companies that make
pre-approved credit offers.
Fair Credit Reporting Act
United States Code
TITLE 15 - COMMERCE AND TRADE
CHAPTER 41 - CONSUMER CREDIT PROTECTION
SUBCHAPTER III - CREDIT REPORTING AGENCIES
Section 1681. Congressional Findings And
Statement Of Purpose
Section 1681a. Definitions; Rules Of
Construction
Section 1681b. Permissible Purposes Of Consumer
Reports
Section 1681c. Requirements Relating To
Information Contained In Consumer Reports
Section 1681d Disclosure Of Investigative
Consumer Reports
Section 1681e. Compliance Procedures
Section 1681f. Disclosures To Governmental
Agencies
Section 1681g. Disclosures To Consumers
Section 1681h. Conditions And Form Of Disclosure
To Consumers
Section 1681i. Procedure In Case Of Disputed
Accuracy
Section 1681j. Charges For Certain Disclosures
Section 1681k. Public Record Information For
Employment Purposes
Section 1681l. Restrictions On Investigative
Consumer Reports
Section 1681m. Requirements On Users Of Consumer
Reports
Section 1681n. Civil Liability For Willful
Noncompliance
Section 1681o. Civil Liability For Negligent
Noncompliance
Section 1681p. Jurisdiction Of Courts;
Limitation Of Actions
Section 1681q. Obtaining Information Under False
Pretenses
Section 1681r. Unauthorized Disclosures By
Officers Or Employees
Section 1681s. Administrative Enforcement
Section 1681s-1. Information On Overdue Child
Support Obligations
Section 1681s-2. Responsibilities Of Furnishers
Of Information To Consumer Reporting Agencies
Section 1681t. Relation To State Laws
Section 1681u. Disclosures To FBI For
Counterintelligence Purposes
Section 1681v. Disclosures To Governmental
Agencies For Counterterrorism Purposes
Section 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, (FOOTNOTE
1) credit standing,
credit capacity, character, and general
reputation of consumers.
(FOOTNOTE 1) So in original. Probably should be
''creditworthiness,''.
(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.
Section 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) Consumer Report. -
(1) In general. - The term ''consumer report''
means any
written, oral, or other communication of any
information by a
consumer reporting agency bearing on a
consumer's credit
worthiness, (FOOTNOTE 1) credit standing, credit
capacity,
character, general reputation, personal
characteristics, or mode
of living which is used or expected to be used
or collected in
whole or in part for the purpose of serving as a
factor in
establishing the consumer's eligibility for -
(FOOTNOTE 1) So in original. Probably should be
''creditworthiness,''.
(A) credit or insurance to be used primarily for
personal,
family, or household purposes;
(B) employment purposes; or
(C) any other purpose authorized under section
1681b of this
title.
(2) Exclusions. - The term ''consumer report''
does not include
-
(A) any -
(i) report containing information solely as to
transactions
or experiences between the consumer and the
person making the
report;
(ii) communication of that information among
persons
related by common ownership or affiliated by
corporate
control; or
(iii) communication of other information among
persons
related by common ownership or affiliated by
corporate
control, if it is clearly and conspicuously
disclosed to the
consumer that the information may be
communicated among such
persons and the consumer is given the
opportunity, before the
time that the information is initially
communicated, to
direct that such information not be communicated
among such
persons;
(B) any authorization or approval of a specific
extension of
credit directly or indirectly by the issuer of a
credit card or
similar device;
(C) any report in which a person who has been
requested by a
third party to make a specific extension of
credit directly or
indirectly to a consumer conveys his or her
decision with
respect to such request, if the third party
advises the
consumer of the name and address of the person
to whom the
request was made, and such person makes the
disclosures to the
consumer required under section 1681m of this
title; or
(D) a communication described in subsection (o)
of this
section.
(e) The term ''investigative consumer report''
means a consumer
report or portion thereof in which information
on a consumer's
character, general reputation, personal
characteristics, or mode of
living is obtained through personal interviews
with neighbors,
friends, or associates of the consumer reported
on or with others
with whom he is acquainted or who may have
knowledge concerning any
such items of information. However, such
information shall not
include specific factual information on a
consumer's credit record
obtained directly from a creditor of the
consumer or from a
consumer reporting agency when such information
was obtained
directly from a creditor of the consumer or from
the consumer.
(f) The term ''consumer reporting agency'' means
any person
which, for monetary fees, dues, or on a
cooperative nonprofit
basis, regularly engages in whole or in part in
the practice of
assembling or evaluating consumer credit
information or other
information on consumers for the purpose of
furnishing consumer
reports to third parties, and which uses any
means or facility of
interstate commerce for the purpose of preparing
or furnishing
consumer reports.
(g) The term ''file'', when used in connection
with information
on any consumer, means all of the information on
that consumer
recorded and retained by a consumer reporting
agency regardless of
how the information is stored.
(h) The term ''employment purposes'' when used
in connection with
a consumer report means a report used for the
purpose of evaluating
a consumer for employment, promotion,
reassignment or retention as
an employee.
(i) The term ''medical information'' means
information or records
obtained, with the consent of the individual to
whom it relates,
from licensed physicians or medical
practitioners, hospitals,
clinics, or other medical or medically related
facilities.
(j) Definitions Relating to Child Support
Obligations. -
(1) Overdue support. - The term ''overdue
support'' has the
meaning given to such term in section 666(e) of
title 42.
(2) State or local child support enforcement
agency. - The term
''State or local child support enforcement
agency'' means a State
or local agency which administers a State or
local program for
establishing and enforcing child support
obligations.
(k) Adverse Action. -
(1) Actions included. - The term ''adverse
action'' -
(A) has the same meaning as in section
1691(d)(6) of this
title; and
(B) means -
(i) a denial or cancellation of, an increase in
any charge
for, or a reduction or other adverse or
unfavorable change in
the terms of coverage or amount of, any
insurance, existing
or applied for, in connection with the
underwriting of
insurance;
(ii) a denial of employment or any other
decision for
employment purposes that adversely affects any
current or
prospective employee;
(iii) a denial or cancellation of, an increase
in any
charge for, or any other adverse or unfavorable
change in the
terms of, any license or benefit described in
section
1681b(a)(3)(D) of this title; and
(iv) an action taken or determination that is -
(I) made in connection with an application that
was made
by, or a transaction that was initiated by, any
consumer,
or in connection with a review of an account
under section
1681b(a)(3)(F)(ii) of this title; and
(II) adverse to the interests of the consumer.
(2) Applicable findings, decisions, commentary,
and orders. -
For purposes of any determination of whether an
action is an
adverse action under paragraph (1)(A), all
appropriate final
findings, decisions, commentary, and orders
issued under section
1691(d)(6) of this title by the Board of
Governors of the Federal
Reserve System or any court shall apply.
(l) Firm Offer of Credit or Insurance. - The
term ''firm offer of
credit or insurance'' means any offer of credit
or insurance to a
consumer that will be honored if the consumer is
determined, based
on information in a consumer report on the
consumer, to meet the
specific criteria used to select the consumer
for the offer, except
that the offer may be further conditioned on one
or more of the
following:
(1) The consumer being determined, based on
information in the
consumer's application for the credit or
insurance, to meet
specific criteria bearing on credit worthiness
(FOOTNOTE 2) or
insurability, as applicable, that are
established -
(FOOTNOTE 2) So in original. Probably should be
''creditworthiness''.
(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
(FOOTNOTE 2) 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
(FOOTNOTE 2) or
insurability.
(3) The consumer furnishing any collateral that
is a
requirement for the extension of the credit or
insurance that was
-
(A) established before selection of the consumer
for the
offer of credit or insurance; and
(B) disclosed to the consumer in the offer of
credit or
insurance.
(m) Credit or Insurance Transaction That Is Not
Initiated by the
Consumer. - The term ''credit or insurance
transaction that is not
initiated by the consumer'' does not include the
use of a consumer
report by a person with which the consumer has
an account or
insurance policy, for purposes of -
(1) reviewing the account or insurance policy;
or
(2) collecting the account.
(n) State. - The term ''State'' means any State,
the Commonwealth
of Puerto Rico, the District of Columbia, and
any territory or
possession of the United States.
(o) Excluded Communications. - A communication
is described in
this subsection if it is a communication -
(1) that, but for subsection (d)(2)(D) of this
section, would
be an investigative consumer report;
(2) that is made to a prospective employer for
the purpose of -
(A) procuring an employee for the employer; or
(B) procuring an opportunity for a natural
person to work for
the employer;
(3) that is made by a person who regularly
performs such
procurement;
(4) that is not used by any person for any
purpose other than a
purpose described in subparagraph (A) or (B) of
paragraph (2);
and
(5) with respect to which -
(A) the consumer who is the subject of the
communication -
(i) consents orally or in writing to the nature
and scope
of the communication, before the collection of
any
information for the purpose of making the
communication;
(ii) consents orally or in writing to the making
of the
communication to a prospective employer, before
the making of
the communication; and
(iii) in the case of consent under clause (i) or
(ii) given
orally, is provided written confirmation of that
consent by
the person making the communication, not later
than 3
business days after the receipt of the consent
by that
person;
(B) the person who makes the communication does
not, for the
purpose of making the communication, make any
inquiry that if
made by a prospective employer of the consumer
who is the
subject of the communication would violate any
applicable
Federal or State equal employment opportunity
law or
regulation; and
(C) the person who makes the communication -
(i) discloses in writing to the consumer who is
the subject
of the communication, not later than 5 business
days after
receiving any request from the consumer for such
disclosure,
the nature and substance of all information in
the consumer's
file at the time of the request, except that the
sources of
any information that is acquired solely for use
in making the
communication and is actually used for no other
purpose, need
not be disclosed other than under appropriate
discovery
procedures in any court of competent
jurisdiction in which an
action is brought; and
(ii) notifies the consumer who is the subject of
the
communication, in writing, of the consumer's
right to request
the information described in clause (i).
(p) Consumer Reporting Agency That Compiles and
Maintains Files
on Consumers on a Nationwide Basis. - The term
''consumer reporting
agency that compiles and maintains files on
consumers on a
nationwide basis'' means a consumer reporting
agency that regularly
engages in the practice of assembling or
evaluating, and
maintaining, for the purpose of furnishing
consumer reports to
third parties bearing on a consumer's credit
worthiness, (FOOTNOTE
3) credit standing, or credit capacity, each of
the following
regarding consumers residing nationwide:
(FOOTNOTE 3) So in original. Probably should be
''creditworthiness,''.
(1) Public record information.
(2) Credit account information from persons who
furnish that
information regularly and in the ordinary course
of business.
Section 1681b. Permissible purposes of
consumer reports
(a)
In general
Subject to subsection (c) of this section, any
consumer reporting
agency may furnish a consumer report under the
following
circumstances and no other:
(1) In response to the order of a court having
jurisdiction to
issue such an order, or a subpoena issued in
connection with
proceedings before a Federal grand jury.
(2) In accordance with the written instructions
of the consumer
to whom it relates.
(3) To a person which it has reason to believe -
(A) intends to use the information in connection
with a credit
transaction involving the consumer on whom the
information is to
be furnished and involving the extension of
credit to, or review
or collection of an account of, the consumer; or
(B) intends to use the information for
employment purposes; or
(C) intends to use the information in connection
with the
underwriting of insurance involving the
consumer; or
(D) intends to use the information in connection
with a
determination of the consumer's eligibility for
a license or
other benefit granted by a governmental
instrumentality required
by law to consider an applicant's financial
responsibility or
status; or
(E) intends to use the information, as a
potential investor or
servicer, or current insurer, in connection with
a valuation of,
or an assessment of the credit or prepayment
risks associated
with, an existing credit obligation; or
(F) otherwise has a legitimate business need for
the
information -
(i) in connection with a business transaction
that is
initiated by the consumer; or
(ii) to review an account to determine whether
the consumer
continues to meet the terms of the account.
(4) In response to a request by the head of a
State or local
child support enforcement agency (or a State or
local government
official authorized by the head of such an
agency), if the person
making the request certifies to the consumer
reporting agency that
-
(A) the consumer report is needed for the
purpose of
establishing an individual's capacity to make
child support
payments or determining the appropriate level of
such payments;
(B) the paternity of the consumer for the child
to which the
obligation relates has been established or
acknowledged by the
consumer in accordance with State laws under
which the obligation
arises (if required by those laws);
(C) the person has provided at least 10 days'
prior notice to
the consumer whose report is requested, by
certified or
registered mail to the last known address of the
consumer, that
the report will be requested; and
(D) the consumer report will be kept
confidential, will be used
solely for a purpose described in subparagraph
(A), and will not
be used in connection with any other civil,
administrative, or
criminal proceeding, or for any other purpose.
(5) To an agency administering a State plan
under section 654 of
title 42 for use to set an initial or modified
child support award.
(b) Conditions for furnishing and using consumer
reports for
employment purposes
(1) Certification from user
A consumer reporting agency may furnish a
consumer report for
employment purposes only if -
(A) the person who obtains such report from the
agency
certifies to the agency that -
(i) the person has complied with paragraph (2)
with respect
to the consumer report, and the person will
comply with
paragraph (3) with respect to the consumer
report if
paragraph (3) becomes applicable; and
(ii) information from the consumer report will
not be used
in violation of any applicable Federal or State
equal
employment opportunity law or regulation; and
(B) the consumer reporting agency provides with
the report,
or has previously provided, a summary of the
consumer's rights
under this subchapter, as prescribed by the
Federal Trade
Commission under section 1681g(c)(3) 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) 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 section 31502 of title 49, or a
position
subject to safety regulation by a State
transportation
agency; and
(ii) as of the time at which the person procures
the report
or causes the report to be procured the only
interaction
between the consumer and the person in
connection with that
employment application has been by mail,
telephone, computer,
or other similar means.
(3) Conditions on use for adverse actions
(A) In general
Except as provided in subparagraph (B), in using
a consumer
report for employment purposes, before taking
any adverse
action based in whole or in part on the report,
the person
intending to take such adverse action shall
provide to the
consumer to whom the report relates -
(i) a copy of the report; and
(ii) a description in writing of the rights of
the consumer
under this subchapter, as prescribed by the
Federal Trade
Commission under section 1681g(c)(3) 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
section 1681m(a) of
this title, within 3 business days of taking
such action, an
oral, written or electronic notification -
(I) that adverse action has been taken based in
whole or in
part on a consumer report received from a
consumer reporting
agency;
(II) of the name, address and telephone number
of the
consumer reporting agency that furnished the
consumer report
(including a toll-free telephone number
established by the
agency if the agency compiles and maintains
files on
consumers on a nationwide basis);
(III) that the consumer reporting agency did not
make the
decision to take the adverse action and is
unable to provide
to the consumer the specific reasons why the
adverse action
was taken; and
(IV) that the consumer may, upon providing
proper
identification, request a free copy of a report
and may
dispute with the consumer reporting agency the
accuracy or
completeness of any information in a report.
(ii) If, under clause (B)(i)(IV), the consumer
requests a
copy of a consumer report from the person who
procured the
report, then, within 3 business days of
receiving the
consumer's request, together with proper
identification, the
person must send or provide to the consumer a
copy of a report
and a copy of the consumer's rights as
prescribed by the
Federal Trade Commission under section
1681g(c)(3) 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 section 31502 of title 49, or a
position
subject to safety regulation by a State
transportation
agency; and
(ii) as of the time at which the person procures
the report
or causes the report to be procured the only
interaction
between the consumer and the person in
connection with that
employment application has been by mail,
telephone, computer,
or other similar means.
(4) Exception for national security
investigations
(A) In general
In the case of an agency or department of the
United States
Government which seeks to obtain and use a
consumer report for
employment purposes, paragraph (3) shall not
apply to any
adverse action by such agency or department
which is based in
part on such consumer report, if the head of
such agency or
department makes a written finding that -
(i) the consumer report is relevant to a
national security
investigation of such agency or department;
(ii) the investigation is within the
jurisdiction of such
agency or department;
(iii) there is reason to believe that compliance
with
paragraph (3) will -
(I) endanger the life or physical safety of any
person;
(II) result in flight from prosecution;
(III) result in the destruction of, or tampering
with,
evidence relevant to the investigation;
(IV) result in the intimidation of a potential
witness
relevant to the investigation;
(V) result in the compromise of classified
information;
or
(VI) otherwise seriously jeopardize or unduly
delay the
investigation or another official proceeding.
(B) Notification of consumer upon conclusion of
investigation
Upon the conclusion of a national security
investigation
described in subparagraph (A), or upon the
determination that
the exception under subparagraph (A) is no
longer required for
the reasons set forth in such subparagraph, the
official
exercising the authority in such subparagraph
shall provide to
the consumer who is the subject of the consumer
report with
regard to which such finding was made -
(i) a copy of such consumer report with any
classified
information redacted as necessary;
(ii) notice of any adverse action which is
based, in part,
on the consumer report; and
(iii) the identification with reasonable
specificity of the
nature of the investigation for which the
consumer report was
sought.
(C) Delegation by head of agency or department
For purposes of subparagraphs (A) and (B), the
head of any
agency or department of the United States
Government may
delegate his or her authorities under this
paragraph to an
official of such agency or department who has
personnel
security responsibilities and is a member of the
Senior
Executive Service or equivalent civilian or
military rank.
(D) Report to the Congress
Except as provided in subparagraph (E), not
later than
January 31 of each year, the head of each agency
and department
of the United States Government that exercised
authority under
this paragraph during the preceding year shall
submit a report
to the Congress on the number of times the
department or agency
exercised such authority during the year.
(E) Reports to congressional intelligence
committees
In the case of a report to be submitted under
subparagraph
(D) to the congressional intelligence committees
(as defined in
section 401a of title 50), the submittal date
for such report
shall be as provided in section 415b of title
50.
(F) 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) of this section 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) of this section; and
(iii) there is not in effect an election by the
consumer,
made in accordance with subsection (e) of this
section, to have
the consumer's name and address excluded from
lists of names
provided by the agency pursuant to this
paragraph.
(2) Limits on information received under
paragraph (1)(B)
A person may receive pursuant to paragraph
(1)(B) only -
(A) the name and address of a consumer;
(B) an identifier that is not unique to the
consumer and that
is used by the person solely for the purpose of
verifying the
identity of the consumer; and
(C) other information pertaining to a consumer
that does not
identify the relationship or experience of the
consumer with
respect to a particular creditor or other
entity.
(3) Information regarding inquiries
Except as provided in section 1681g(a)(5) of
this title, a
consumer reporting agency shall not furnish to
any person a
record of inquiries in connection with a credit
or insurance
transaction that is not initiated by a consumer.
(d) Reserved
(e) Election of consumer to be excluded from
lists
(1) In general
A consumer may elect to have the consumer's name
and address
excluded from any list provided by a consumer
reporting agency
under subsection (c)(1)(B) of this section in
connection with a
credit or insurance transaction that is not
initiated by the
consumer, by notifying the agency in accordance
with paragraph
(2) that the consumer does not consent to any
use of a consumer
report relating to the consumer in connection
with any credit or
insurance transaction that is not initiated by
the consumer.
(2) Manner of notification
A consumer shall notify a consumer reporting
agency under
paragraph (1) -
(A) through the notification system maintained
by the agency
under paragraph (5); or
(B) by submitting to the agency a signed notice
of election
form issued by the agency for purposes of this
subparagraph.
(3) Response of agency after notification
through system
Upon receipt of notification of the election of
a consumer
under paragraph (1) through the notification
system maintained by
the agency under paragraph (5), a consumer
reporting agency shall -
(A) inform the consumer that the election is
effective only
for the 2-year period following the election if
the consumer
does not submit to the agency a signed notice of
election form
issued by the agency for purposes of paragraph
(2)(B); and
(B) provide to the consumer a notice of election
form, if
requested by the consumer, not later than 5
business days after
receipt of the notification of the election
through the system
established under paragraph (5), in the case of
a request made
at the time the consumer provides notification
through the
system.
(4) Effectiveness of election
An election of a consumer under paragraph (1) -
(A) shall be effective with respect to a
consumer reporting
agency beginning 5 business days after the date
on which the
consumer notifies the agency in accordance with
paragraph (2);
(B) shall be effective with respect to a
consumer reporting
agency -
(i) subject to subparagraph (C), during the
2-year period
beginning 5 business days after the date on
which the
consumer notifies the agency of the election, in
the case of
an election for which a consumer notifies the
agency only in
accordance with paragraph (2)(A); or
(ii) until the consumer notifies the agency
under
subparagraph (C), in the case of an election for
which a
consumer notifies the agency in accordance with
paragraph
(2)(B);
(C) shall not be effective after the date on
which the
consumer notifies the agency, through the
notification system
established by the agency under paragraph (5),
that the
election is no longer effective; and
(D) shall be effective with respect to each
affiliate of the
agency.
(5) Notification system
(A) In general
Each consumer reporting agency that, under
subsection
(c)(1)(B) of this section, 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
section 1681e
of this title by a prospective user of the
report through a
general or specific certification.
(g) Furnishing reports containing medical
information
A consumer reporting agency shall not furnish
for employment
purposes, or in connection with a credit or
insurance transaction,
a consumer report that contains medical
information about a
consumer, unless the consumer consents to the
furnishing of the
report.
Section 1681c. Requirements relating to
information contained in consumer reports
(a)
Information excluded from consumer reports
Except as authorized under subsection (b) of
this section, no
consumer reporting agency may make any consumer
report containing
any of the following items of information:
(1) cases (FOOTNOTE 1) 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.
(FOOTNOTE 1) So in original. Probably should be
capitalized.
(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.
(b) Exempted cases
The provisions of subsection (a) of this section
are not
applicable in the case of any consumer credit
report to be used in
connection with -
(1) a credit transaction involving, or which may
reasonably be
expected to involve, a principal amount of
$150,000 or more;
(2) the underwriting of life insurance
involving, or which may
reasonably be expected to involve, a face amount
of $150,000 or
more; or
(3) the employment of any individual at an
annual salary which
equals, or which may reasonably be expected to
equal $75,000, or
more.
(c) Running of reporting period
(1) In general
The 7-year period referred to in paragraphs (4)
and (6) of
subsection (a) of this section 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
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.
(e) Indication of closure of account by consumer
If a consumer reporting agency is notified
pursuant to section
1681s-2(a)(4) of this title that a credit
account of a consumer was
voluntarily closed by the consumer, the agency
shall indicate that
fact in any consumer report that includes
information related to
the account.
(f) Indication of dispute by consumer
If a consumer reporting agency is notified
pursuant to section
1681s-2(a)(3) of this title that information
regarding a consumer
who (FOOTNOTE 2) was furnished to the agency is
disputed by the
consumer, the agency shall indicate that fact in
each consumer
report that includes the disputed information.
(FOOTNOTE 2) So in original. Probably should be
''which''.
Section 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 section 1681g(c) of this
title; and
(2) the person certifies or has certified to the
consumer
reporting agency that -
(A) the person has made the disclosures to the
consumer
required by paragraph (1); and
(B) the person will comply with subsection (b)
of this
section.
(b) Disclosure on request of nature and scope of
investigation
Any person who procures or causes to be prepared
an investigative
consumer report on any consumer shall, upon
written request made by
the consumer within a reasonable period of time
after the receipt
by him of the disclosure required by subsection
(a)(1) of this
section, make a complete and accurate disclosure
of the nature and
scope of the investigation requested. This
disclosure shall be
made in a writing mailed, or otherwise
delivered, to the consumer
not later than five days after the date on which
the request for
such disclosure was received from the consumer
or such report was
first requested, whichever is the later.
(c) Limitation on liability upon showing of
reasonable procedures
for compliance with provisions
No person may be held liable for any violation
of subsection (a)
or (b) of this section if he shows by a
preponderance of the
evidence that at the time of the violation he
maintained reasonable
procedures to assure compliance with subsection
(a) or (b) of this
section.
(d) Prohibitions
(1) Certification
A consumer reporting agency shall not prepare or
furnish an
investigative consumer report unless the agency
has received a
certification under subsection (a)(2) of this
section from the
person who requested the report.
(2) Inquiries
A consumer reporting agency shall not make an
inquiry for the
purpose of preparing an investigative consumer
report on a
consumer for employment purposes if the making
of the inquiry by
an employer or prospective employer of the
consumer would violate
any applicable Federal or State equal employment
opportunity law
or regulation.
(3) Certain public record information
Except as otherwise provided in section 1681k of
this title, a
consumer reporting agency shall not furnish an
investigative
consumer report that includes information that
is a matter of
public record and that relates to an arrest,
indictment,
conviction, civil judicial action, tax lien, or
outstanding
judgment, unless the agency has verified the
accuracy of the
information during the 30-day period ending on
the date on which
the report is furnished.
(4) Certain adverse information
A consumer reporting agency shall not prepare or
furnish an
investigative consumer report on a consumer that
contains
information that is adverse to the interest of
the consumer and
that is obtained through a personal interview
with a neighbor,
friend, or associate of the consumer or with
another person with
whom the consumer is acquainted or who has
knowledge of such item
of information, unless -
(A) the agency has followed reasonable
procedures to obtain
confirmation of the information, from an
additional source that
has independent and direct knowledge of the
information; or
(B) the person interviewed is the best possible
source of the
information.
Section 1681e. Compliance procedures
(a)
Identity and purposes of credit users
Every consumer reporting agency shall maintain
reasonable
procedures designed to avoid violations of
section 1681c of this
title and to limit the furnishing of consumer
reports to the
purposes listed under section 1681b of this
title. These
procedures shall require that prospective users
of the information
identify themselves, certify the purposes for
which the information
is sought, and certify that the information will
be used for no
other purpose. Every consumer reporting agency
shall make a
reasonable effort to verify the identity of a
new prospective user
and the uses certified by such prospective user
prior to furnishing
such user a consumer report. No consumer
reporting agency may
furnish a consumer report to any person if it
has reasonable
grounds for believing that the consumer report
will not be used for
a purpose listed in section 1681b of this title.
(b) Accuracy of report
Whenever a consumer reporting agency prepares a
consumer report
it shall follow reasonable procedures to assure
maximum possible
accuracy of the information concerning the
individual about whom
the report relates.
(c) Disclosure of consumer reports by users
allowed
A consumer reporting agency may not prohibit a
user of a consumer
report furnished by the agency on a consumer
from disclosing the
contents of the report to the consumer, if
adverse action against
the consumer has been taken by the user based in
whole or in part
on the report.
(d) Notice to users and furnishers of
information
(1) Notice requirement
A consumer reporting agency shall provide to any
person -
(A) who regularly and in the ordinary course of
business
furnishes information to the agency with respect
to any
consumer; or
(B) to whom a consumer report is provided by the
agency;
a notice of such person's responsibilities under
this subchapter.
(2) Content of notice
The Federal Trade Commission shall prescribe the
content of
notices under paragraph (1), and a consumer
reporting agency
shall be in compliance with this subsection if
it provides a
notice under paragraph (1) that is substantially
similar to the
Federal Trade Commission prescription under this
paragraph.
(e) Procurement of consumer report for resale
(1) Disclosure
A person may not procure a consumer report for
purposes of
reselling the report (or any information in the
report) unless
the person discloses to the consumer reporting
agency that
originally furnishes the report -
(A) the identity of the end-user of the report
(or
information); and
(B) each permissible purpose under section 1681b
of this
title for which the report is furnished to the
end-user of the
report (or information).
(2) Responsibilities of procurers for resale
A person who procures a consumer report for
purposes of
reselling the report (or any information in the
report) shall -
(A) establish and comply with reasonable
procedures designed
to ensure that the report (or information) is
resold by the
person only for a purpose for which the report
may be furnished
under section 1681b of this title, including by
requiring that
each person to which the report (or information)
is resold and
that resells or provides the report (or
information) to any
other person -
(i) identifies each end user of the resold
report (or
information);
(ii) certifies each purpose for which the report
(or
information) will be used; and
(iii) certifies that the report (or information)
will be
used for no other purpose; and
(B) before reselling the report, make reasonable
efforts to
verify the identifications and certifications
made under
subparagraph (A).
(3) Resale of consumer report to a Federal
agency or department
Notwithstanding paragraph (1) or (2), a person
who procures a
consumer report for purposes of reselling the
report (or any
information in the report) shall not disclose
the identity of the
end-user of the report under paragraph (1) or
(2) if -
(A) the end user is an agency or department of
the United
States Government which procures the report from
the person for
purposes of determining the eligibility of the
consumer
concerned to receive access or continued access
to classified
information (as defined in section 1681b(b)(4)(E)(i)
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.
Section 1681f. Disclosures to
governmental agencies
Notwithstanding the provisions of section 1681b
of this title, a
consumer reporting agency may furnish
identifying information
respecting any consumer, limited to his name,
address, former
addresses, places of employment, or former
places of employment, to
a governmental agency.
Section 1681g. Disclosures to consumers
(a)
Information on file; sources; report recipients
Every consumer reporting agency shall, upon
request, and subject
to section 1681h(a)(1) of this title, clearly
and accurately
disclose to the consumer:
(1) All information in the consumer's file at
the time of the
request, except that nothing in this paragraph
shall be construed
to require a consumer reporting agency to
disclose to a consumer
any information concerning credit scores or any
other risk scores
or predictors relating to the consumer.
(2) The sources of the information; except that
the sources of
information acquired solely for use in preparing
an investigative
consumer report and actually used for no other
purpose need not be
disclosed: Provided, That in the event an action
is brought under
this 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 section 1681e(e)(1) of this
title) that procured a
consumer report -
(i) for employment purposes, during the 2-year
period preceding
the date on which the request is made; or
(ii) for any other purpose, during the 1-year
period preceding
the date on which the request is made.
(B) An identification of a person under
subparagraph (A) shall
include -
(i) the name of the person or, if applicable,
the trade name
(written in full) under which such person
conducts business; and
(ii) upon request of the consumer, the address
and telephone
number of the person.
(C) Subparagraph (A) does not apply if -
(i) the end user is an agency or department of
the United
States Government that procures the report from
the person for
purposes of determining the eligibility of the
consumer to whom
the report relates to receive access or
continued access to
classified information (as defined in section
1681b(b)(4)(E)(i)
of this title); and
(ii) the head of the agency or department makes
a written
finding as prescribed under section
1681b(b)(4)(A) of this title.
(4) The dates, original payees, and amounts of
any checks upon
which is based any adverse characterization of
the consumer,
included in the file at the time of the
disclosure.
(5) A record of all inquiries received by the
agency during the
1-year period preceding the request that
identified the consumer in
connection with a credit or insurance
transaction that was not
initiated by the consumer.
(b) Exempt information
The requirements of subsection (a) of this
section respecting the
disclosure of sources of information and the
recipients of consumer
reports do not apply to information received or
consumer reports
furnished prior to the effective date of this
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 required to be included
with disclosure
(1) Summary of rights
A consumer reporting agency shall provide to a
consumer, with
each written disclosure by the agency to the
consumer under this
section -
(A) a written summary of all of the rights that
the consumer
has under this subchapter; and
(B) in the case of a consumer reporting agency
that compiles
and maintains files on consumers on a nationwide
basis, a
toll-free telephone number established by the
agency, at which
personnel are accessible to consumers during
normal business
hours.
(2) Specific items required to be included
The summary of rights required under paragraph
(1) shall
include -
(A) a brief description of this subchapter and
all rights of
consumers under this subchapter;
(B) an explanation of how the consumer may
exercise the
rights of the consumer under this subchapter;
(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 to learn of those rights; and
(E) a statement that a consumer reporting agency
is not
required to remove accurate derogatory
information from a
consumer's file, unless the information is
outdated under
section 1681c of this title or cannot be
verified.
(3) Form of summary of rights
For purposes of this subsection and any
disclosure by a
consumer reporting agency required under this
subchapter with
respect to consumers' rights, the Federal Trade
Commission (after
consultation with each Federal agency referred
to in section
1681s(b) of this title) shall prescribe the form
and content of
any such disclosure of the rights of consumers
required under
this subchapter. A consumer reporting agency
shall be in
compliance with this subsection if it provides
disclosures under
paragraph (1) that are substantially similar to
the Federal Trade
Commission prescription under this paragraph.
(4) Effectiveness
No disclosures shall be required under this
subsection until
the date on which the Federal Trade Commission
prescribes the
form and content of such disclosures under
paragraph (3).
Section 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 section
1681g of this
title, that the consumer furnish proper
identification.
(2) Disclosure in writing
Except as provided in subsection (b) of this
section, the
disclosures required to be made under section
1681g of this title
shall be provided under that section in writing.
(b) Other forms of disclosure
(1) In general
If authorized by a consumer, a consumer
reporting agency may
make the disclosures required under (FOOTNOTE 1)
1681g of this
title -
(FOOTNOTE 1) So in original. Probably should be
followed by
''section''.
(A) other than in writing; and
(B) in such form as may be -
(i) specified by the consumer in accordance with
paragraph
(2); and
(ii) available from the agency.
(2) Form
A consumer may specify pursuant to paragraph (1)
that
disclosures under section 1681g of this title
shall be made -
(A) in person, upon the appearance of the
consumer at the
place of business of the consumer reporting
agency where
disclosures are regularly provided, during
normal business
hours, and on reasonable notice;
(B) by telephone, if the consumer has made a
written request
for disclosure by telephone;
(C) by electronic means, if available from the
agency; or
(D) by any other reasonable means that is
available from the
agency.
(c) Trained personnel
Any consumer reporting agency shall provide
trained personnel to
explain to the consumer any information
furnished to him pursuant
to section 1681g of this title.
(d) Persons accompanying consumer
The consumer shall be permitted to be
accompanied by one other
person of his choosing, who shall furnish
reasonable
identification. A consumer reporting agency may
require the
consumer to furnish a written statement granting
permission to the
consumer reporting agency to discuss the
consumer's file in such
person's presence.
(e) Limitation of liability
Except as provided in sections 1681n and 1681o
of this title, no
consumer may bring any action or proceeding in
the nature of
defamation, invasion of privacy, or negligence
with respect to the
reporting of information against any consumer
reporting agency, any
user of information, or any person who furnishes
information to a
consumer reporting agency, based on information
disclosed pursuant
to section 1681g, 1681h, or 1681m of this title,
or based on
information disclosed by a user of a consumer
report to or for a
consumer against whom the user has taken adverse
action, based in
whole or in part on the report (FOOTNOTE 2)
except as to false
information furnished with malice or willful
intent to injure such
consumer.
(FOOTNOTE 2) So in original. Probably should be
followed by a
comma.
Section 1681i. Procedure in case of
disputed accuracy
(a)
Reinvestigations of disputed information
(1) Reinvestigation required
(A) In general
If the completeness or accuracy of any item of
information
contained in a consumer's file at a consumer
reporting agency
is disputed by the consumer and the consumer
notifies the
agency directly of such dispute, the agency
shall reinvestigate
free of charge and record the current status of
the disputed
information, or delete the item from the file in
accordance
with paragraph (5), before the end of the 30-day
period
beginning on the date on which the agency
receives the notice
of the dispute from the consumer.
(B) Extension of period to reinvestigate
Except as provided in subparagraph (C), the
30-day period
described in subparagraph (A) may be extended
for not more than
15 additional days if the consumer reporting
agency receives
information from the consumer during that 30-day
period that is
relevant to the reinvestigation.
(C) Limitations on extension of period to
reinvestigate
Subparagraph (B) shall not apply to any
reinvestigation in
which, during the 30-day period described in
subparagraph (A),
the information that is the subject of the
reinvestigation is
found to be inaccurate or incomplete or the
consumer reporting
agency determines that the information cannot be
verified.
(2) Prompt notice of dispute to furnisher of
information
(A) In general
Before the expiration of the 5-business-day
period beginning
on the date on which a consumer reporting agency
receives
notice of a dispute from any consumer in
accordance with
paragraph (1), the agency shall provide
notification of the
dispute to any person who provided any item of
information in
dispute, at the address and in the manner
established with the
person. The notice shall include all relevant
information
regarding the dispute that the agency has
received from the
consumer.
(B) Provision of other information from consumer
The consumer reporting agency shall promptly
provide to the
person who provided the information in dispute
all relevant
information regarding the dispute that is
received by the
agency from the consumer after the period
referred to in
subparagraph (A) and before the end of the
period referred to
in paragraph (1)(A).
(3) Determination that dispute is frivolous or
irrelevant
(A) In general
Notwithstanding paragraph (1), a consumer
reporting agency
may terminate a reinvestigation of information
disputed by a
consumer under that paragraph if the agency
reasonably
determines that the dispute by the consumer is
frivolous or
irrelevant, including by reason of a failure by
a consumer to
provide sufficient information to investigate
the disputed
information.
(B) Notice of determination
Upon making any determination in accordance with
subparagraph
(A) that a dispute is frivolous or irrelevant, a
consumer
reporting agency shall notify the consumer of
such
determination not later than 5 business days
after making such
determination, by mail or, if authorized by the
consumer for
that purpose, by any other means available to
the agency.
(C) Contents of notice
A notice under subparagraph (B) shall include -
(i) the reasons for the determination under
subparagraph
(A); and
(ii) identification of any information required
to
investigate the disputed information, which may
consist of a
standardized form describing the general nature
of such
information.
(4) Consideration of consumer information
In conducting any reinvestigation under
paragraph (1) with
respect to disputed information in the file of
any consumer, the
consumer reporting agency shall review and
consider all relevant
information submitted by the consumer in the
period described in
paragraph (1)(A) with respect to such disputed
information.
(5) Treatment of inaccurate or unverifiable
information
(A) In general
If, after any reinvestigation under paragraph
(1) of any
information disputed by a consumer, an item of
the information
is found to be inaccurate or incomplete or
cannot be verified,
the consumer reporting agency shall promptly
delete that item
of information from the consumer's file or
modify that item of
information, as appropriate, based on the
results of the
reinvestigation.
(B) Requirements relating to reinsertion of
previously deleted
material
(i) Certification of accuracy of information
If any information is deleted from a consumer's
file
pursuant to subparagraph (A), the information
may not be
reinserted in the file by the consumer reporting
agency
unless the person who furnishes the information
certifies
that the information is complete and accurate.
(ii) Notice to consumer
If any information that has been deleted from a
consumer's
file pursuant to subparagraph (A) is reinserted
in the file,
the consumer reporting agency shall notify the
consumer of
the reinsertion in writing not later than 5
business days
after the reinsertion or, if authorized by the
consumer for
that purpose, by any other means available to
the agency.
(iii) Additional information
As part of, or in addition to, the notice under
clause
(ii), a consumer reporting agency shall provide
to a consumer
in writing not later than 5 business days after
the date of
the reinsertion -
(I) a statement that the disputed information
has been
reinserted;
(II) the business name and address of any
furnisher of
information contacted and the telephone number
of such
furnisher, if reasonably available, or of any
furnisher of
information that contacted the consumer
reporting agency,
in connection with the reinsertion of such
information; and
(III) a notice that the consumer has the right
to add a
statement to the consumer's file disputing the
accuracy or
completeness of the disputed information.
(C) Procedures to prevent reappearance
A consumer reporting agency shall maintain
reasonable
procedures designed to prevent the reappearance
in a consumer's
file, and in consumer reports on the consumer,
of information
that is deleted pursuant to this paragraph
(other than
information that is reinserted in accordance
with subparagraph
(B)(i)).
(D) Automated reinvestigation system
Any consumer reporting agency that compiles and
maintains
files on consumers on a nationwide basis shall
implement an
automated system through which furnishers of
information to
that consumer reporting agency may report the
results of a
reinvestigation that finds incomplete or
inaccurate information
in a consumer's file to other such consumer
reporting agencies.
(6) Notice of results of reinvestigation
(A) In general
A consumer reporting agency shall provide
written notice to a
consumer of the results of a reinvestigation
under this
subsection not later than 5 business days after
the completion
of the reinvestigation, by mail or, if
authorized by the
consumer for that purpose, by other means
available to the
agency.
(B) Contents
As part of, or in addition to, the notice under
subparagraph
(A), a consumer reporting agency shall provide
to a consumer in
writing before the expiration of the 5-day
period referred to
in subparagraph (A) -
(i) a statement that the reinvestigation is
completed;
(ii) a consumer report that is based upon the
consumer's
file as that file is revised as a result of the
reinvestigation;
(iii) a notice that, if requested by the
consumer, a
description of the procedure used to determine
the accuracy
and completeness of the information shall be
provided to the
consumer by the agency, including the business
name and
address of any furnisher of information
contacted in
connection with such information and the
telephone number of
such furnisher, if reasonably available;
(iv) a notice that the consumer has the right to
add a
statement to the consumer's file disputing the
accuracy or
completeness of the information; and
(v) a notice that the consumer has the right to
request
under subsection (d) of this section 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) of this
section that the
agency furnish notifications under that
subsection; and
(C) provides written confirmation of the
deletion and a copy
of a consumer report on the consumer that is
based on the
consumer's file after the deletion, not later
than 5 business
days after making the deletion.
(b) Statement of dispute
If the reinvestigation does not resolve the
dispute, the consumer
may file a brief statement setting forth the
nature of the
dispute. The consumer reporting agency may limit
such statements
to not more than one hundred words if it
provides the consumer with
assistance in writing a clear summary of the
dispute.
(c) Notification of consumer dispute in
subsequent consumer reports
Whenever a statement of a dispute is filed,
unless there is
reasonable grounds to believe that it is
frivolous or irrelevant,
the consumer reporting agency shall, in any
subsequent consumer
report containing the information in question,
clearly note that it
is disputed by the consumer and provide either
the consumer's
statement or a clear and accurate codification
or summary thereof.
(d) Notification of deletion of disputed
information
Following any deletion of information which is
found to be
inaccurate or whose accuracy can no longer be
verified or any
notation as to disputed information, the
consumer reporting agency
shall, at the request of the consumer, furnish
notification that
the item has been deleted or the statement,
codification or summary
pursuant to subsection (b) or (c) of this
section to any person
specifically designated by the consumer who has
within two years
prior thereto received a consumer report for
employment purposes,
or within six months prior thereto received a
consumer report for
any other purpose, which contained the deleted
or disputed
information.
Section 1681j. Charges for certain
disclosures
(a)
Reasonable charges allowed for certain
disclosures
(1) In general
Except as provided in subsections (b), (c), and
(d) of this
section, a consumer reporting agency may impose
a reasonable
charge on a consumer -
(A) for making a disclosure to the consumer
pursuant to
section 1681g of this title, which charge -
(i) shall not exceed $8; and
(ii) shall be indicated to the consumer before
making the
disclosure; and
(B) for furnishing, pursuant to section 1681i(d)
of this
title, following a reinvestigation under section
1681i(a) of
this title, a statement, codification, or
summary to a person
designated by the consumer under that section
after the 30-day
period beginning on the date of notification of
the consumer
under paragraph (6) or (8) of section 1681i(a)
of this title
with respect to the reinvestigation, which
charge -
(i) shall not exceed the charge that the agency
would
impose on each designated recipient for a
consumer report;
and
(ii) shall be indicated to the consumer before
furnishing
such information.
(2) Modification of amount
The Federal Trade Commission shall increase the
amount referred
to in paragraph (1)(A)(i) on January 1 of each
year, based
proportionally on changes in the Consumer Price
Index, with
fractional changes rounded to the nearest fifty
cents.
(b) Free disclosure after adverse notice to
consumer
Each consumer reporting agency that maintains a
file on a
consumer shall make all disclosures pursuant to
section 1681g of
this title without charge to the consumer if,
not later than 60
days after receipt by such consumer of a
notification pursuant to
section 1681m of this title, or of a
notification from a debt
collection agency affiliated with that consumer
reporting agency
stating that the consumer's credit rating may be
or has been
adversely affected, the consumer makes a request
under section
1681g of this title.
(c) Free disclosure under certain other
circumstances
Upon the request of the consumer, a consumer
reporting agency
shall make all disclosures pursuant to section
1681g of this title
once during any 12-month period without charge
to that consumer if
the consumer certifies in writing that the
consumer -
(1) is unemployed and intends to apply for
employment in the
60-day period beginning on the date on which the
certification is
made;
(2) is a recipient of public welfare assistance;
or
(3) has reason to believe that the file on the
consumer at the
agency contains inaccurate information due to
fraud.
(d) Other charges prohibited
A consumer reporting agency shall not impose any
charge on a
consumer for providing any notification required
by this subchapter
or making any disclosure required by this
subchapter, except as
authorized by subsection (a) of this section.
Section 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) of this section does not apply in
the case of an
agency or department of the United States
Government that seeks to
obtain and use a consumer report for employment
purposes, if the
head of the agency or department makes a written
finding as
prescribed under section 1681b(b)(4)(A) of this
title.
Section 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.
Section 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 orally, in writing,
or
electronically -
(A) the name, address, and telephone number of
the consumer
reporting agency (including a toll-free
telephone number
established by the agency if the agency compiles
and maintains
files on consumers on a nationwide basis) that
furnished the
report to the person; and
(B) a statement that the consumer reporting
agency did not
make the decision to take the adverse action and
is unable to
provide the consumer the specific reasons why
the adverse
action was taken; and
(3) provide to the consumer an oral, written, or
electronic
notice of the consumer's right -
(A) to obtain, under section 1681j of this
title, a free copy
of a consumer report on the consumer from the
consumer
reporting agency referred to in paragraph (2),
which notice
shall include an indication of the 60-day period
under that
section for obtaining such a copy; and
(B) to dispute, under section 1681i of this
title, with a
consumer reporting agency the accuracy or
completeness of any
information in a consumer report furnished by
the agency.
(b) Adverse action based on information obtained
from third parties
other than consumer reporting agencies
(1) In general
Whenever credit for personal, family, or
household purposes
involving a consumer is denied or the charge for
such credit is
increased either wholly or partly because of
information obtained
from a person other than a consumer reporting
agency bearing upon
the consumer's credit worthiness, (FOOTNOTE 1)
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.
(FOOTNOTE 1) So in original. Probably should be
''creditworthiness,''.
(2) Duties of person taking certain actions
based on information
provided by affiliate
(A) Duties, generally
If a person takes an action described in
subparagraph (B)
with respect to a consumer, based in whole or in
part on
information described in subparagraph (C), the
person shall -
(i) notify the consumer of the action, including
a
statement that the consumer may obtain the
information in
accordance with clause (ii); and
(ii) upon a written request from the consumer
received
within 60 days after transmittal of the notice
required by
clause (i), disclose to the consumer the nature
of the
information upon which the action is based by
not later than
30 days after receipt of the request.
(B) Action described
An action referred to in subparagraph (A) is an
adverse
action described in section 1681a(k)(1)(A) of
this title, taken
in connection with a transaction initiated by
the consumer, or
any adverse action described in clause (i) or
(ii) of section
1681a(k)(1)(B) of this title.
(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, (FOOTNOTE
1) 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
section 1681b(c)(1)(B) of this title, shall
provide with each
written solicitation made to the consumer
regarding the
transaction a clear and conspicuous statement
that -
(A) information contained in the consumer's
consumer report
was used in connection with the transaction;
(B) the consumer received the offer of credit or
insurance
because the consumer satisfied the criteria for
credit
worthiness (FOOTNOTE 2) or insurability under
which the
consumer was selected for the offer;
(FOOTNOTE 2) So in original. Probably should be
''creditworthiness''.
(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 (FOOTNOTE 2) or insurability or does
not furnish any
required collateral;
(D) the consumer has a right to prohibit
information
contained in the consumer's file with any
consumer reporting
agency from being used in connection with any
credit or
insurance transaction that is not initiated by
the consumer;
and
(E) the consumer may exercise the right referred
to in
subparagraph (D) by notifying a notification
system established
under section 1681b(e) of this title.
(2) Disclosure of address and telephone number
A statement under paragraph (1) shall include
the address and
toll-free telephone number of the appropriate
notification system
established under section 1681b(e) of this
title.
(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 (FOOTNOTE 2) 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.
Section 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.
Section 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;
(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.
Section 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, within two years from
the date on which
the liability arises, except that where a
defendant has materially
and willfully misrepresented any information
required under this
subchapter to be disclosed to an individual and
the information so
misrepresented is material to the establishment
of the defendant's
liability to that individual under this
subchapter, the action may
be brought at any time within two years after
discovery by the
individual of the misrepresentation.
Section 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.
Section 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.
Section 1681s. Administrative
enforcement
(a)
Enforcement by Federal Trade Commission
(1) Compliance with the requirements imposed
under this
subchapter shall be enforced under the Federal
Trade Commission Act
(15 U.S.C. 41 et seq.) by the Federal Trade
Commission with respect
to consumer reporting agencies and all other
persons subject
thereto, except to the extent that enforcement
of the requirements
imposed under this subchapter is specifically
committed to some
other government agency under subsection (b)
hereof. For the
purpose of the exercise by the Federal Trade
Commission of its
functions and powers under the Federal Trade
Commission Act, a
violation of any requirement or prohibition
imposed under this
subchapter shall constitute an unfair or
deceptive act or practice
in commerce in violation of section 5(a) of the
Federal Trade
Commission Act (15 U.S.C. 45(a)) and shall be
subject to
enforcement by the Federal Trade Commission
under section 5(b)
thereof (15 U.S.C. 45(b)) with respect to any
consumer reporting
agency or person subject to enforcement by the
Federal Trade
Commission pursuant to this subsection,
irrespective of whether
that person is engaged in commerce or meets any
other
jurisdictional tests in the Federal Trade
Commission Act. The
Federal Trade Commission shall have such
procedural, investigative,
and enforcement powers, including the power to
issue procedural
rules in enforcing compliance with the
requirements imposed under
this subchapter and to require the filing of
reports, the
production of documents, and the appearance of
witnesses as though
the applicable terms and conditions of the
Federal Trade Commission
Act were part of this subchapter. Any person
violating any of the
provisions of this subchapter shall be subject
to the penalties and
entitled to the privileges and immunities
provided in the Federal
Trade Commission Act as though the applicable
terms and provisions
thereof were part of this subchapter.
(2)(A) In the event of a knowing violation,
which constitutes a
pattern or practice of violations of this
subchapter, the
Commission may commence a civil action to
recover a civil penalty
in a district court of the United States against
any person that
violates this subchapter. In such action, such
person shall be
liable for a civil penalty of not more than
$2,500 per violation.
(B) In determining the amount of a civil penalty
under
subparagraph (A), the court shall take into
account the degree of
culpability, any history of prior such conduct,
ability to pay,
effect on ability to continue to do business,
and such other
matters as justice may require.
(3) Notwithstanding paragraph (2), a court may
not impose any
civil penalty on a person for a violation of
section 1681s-2(a)(1)
of this title unless the person has been
enjoined from committing
the violation, or ordered not to commit the
violation, in an action
or proceeding brought by or on behalf of the
Federal Trade
Commission, and has violated the injunction or
order, and the court
may not impose any civil penalty for any
violation occurring before
the date of the violation of the injunction or
order.
(b) Enforcement by other agencies
Compliance with the requirements imposed under
this 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 subsection (d) of section 1681m of
this title shall be
enforced under -
(1) section 8 of the Federal Deposit Insurance
Act (12 U.S.C.
1818), in the case of -
(A) national banks, and Federal branches and
Federal agencies
of foreign banks, by the Office of the
Comptroller of the
Currency;
(B) member banks of the Federal Reserve System
(other than
national banks), branches and agencies of
foreign banks (other
than Federal branches, Federal agencies, and
insured State
branches of foreign banks), commercial lending
companies owned
or controlled by foreign banks, and
organizations operating
under section 25 or 25(a) (FOOTNOTE 1) of the
Federal Reserve
Act (12 U.S.C. 601 et seq., 611 et seq.), by the
Board of
Governors of the Federal Reserve System; and
(FOOTNOTE 1) See References in Text note below.
(C) banks insured by the Federal Deposit
Insurance
Corporation (other than members of the Federal
Reserve System)
and insured State branches of foreign banks, by
the Board of
Directors of the Federal Deposit Insurance
Corporation;
(2) section 8 of the Federal Deposit Insurance
Act (12 U.S.C.
1818), by the Director of the Office of Thrift
Supervision, in
the case of a savings association the deposits
of which are
insured by the Federal Deposit Insurance
Corporation;
(3) the Federal Credit Union Act (12 U.S.C. 1751
et seq.), by
the Administrator of the National Credit Union
Administration
with respect to any Federal credit union;
(4) subtitle IV of title 49, by the Secretary of
Transportation, with respect to all carriers
subject to the
jurisdiction of the Surface Transportation
Board;
(5) 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; and
(6) the Packers and Stockyards Act, 1921 (7
U.S.C. 181 et seq.)
(except as provided in section 406 of that Act
(7 U.S.C. 226,
227)), by the Secretary of Agriculture with
respect to any
activities subject to that Act.
The terms used in paragraph (1) that are not
defined in this
subchapter or otherwise defined in section 3(s)
of the Federal
Deposit Insurance Act (12 U.S.C. 1813(s)) shall
have the meaning
given to them in section 1(b) of the
International Banking Act of
1978 (12 U.S.C. 3101).
(c) State action for violations
(1) Authority of States
In addition to such other remedies as are
provided under State
law, if the chief law enforcement officer of a
State, or an
official or agency designated by a State, has
reason to believe
that any person has violated or is violating
this 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 sections 1681n and 1681o of this
title as a
result of the violation;
(ii) in the case of a violation of section
1681s-2(a) of
this title, damages for which the person would,
but for
section 1681s-2(c) of this title, be liable to
such residents
as a result of the violation; or
(iii) damages of not more than $1,000 for each
willful or
negligent violation; and
(C) in the case of any successful action under
subparagraph
(A) or (B), shall be awarded the costs of the
action and
reasonable attorney fees as determined by the
court.
(2) Rights of Federal regulators
The State shall serve prior written notice of
any action under
paragraph (1) upon the Federal Trade Commission
or the
appropriate Federal regulator determined under
subsection (b) of
this section and provide the Commission or
appropriate Federal
regulator with a copy of its complaint, except
in any case in
which such prior notice is not feasible, in
which case the State
shall serve such notice immediately upon
instituting such
action. The Federal Trade Commission or
appropriate Federal
regulator shall have the right -
(A) to intervene in the action;
(B) upon so intervening, to be heard on all
matters arising
therein;
(C) to remove the action to the appropriate
United States
district court; and
(D) to file petitions for appeal.
(3) Investigatory powers
For purposes of bringing any action under this
subsection,
nothing in this subsection shall prevent the
chief law
enforcement officer, or an official or agency
designated by a
State, from exercising the powers conferred on
the chief law
enforcement officer or such official by the laws
of such State to
conduct investigations or to administer oaths or
affirmations or
to compel the attendance of witnesses or the
production of
documentary and other evidence.
(4) Limitation on State action while Federal
action pending
If the Federal Trade Commission or the
appropriate Federal
regulator has instituted a civil action or an
administrative
action under section 8 of the Federal Deposit
Insurance Act (12
U.S.C. 1818) for a violation of this subchapter,
no State may,
during the pendency of such action, bring an
action under this
section against any defendant named in the
complaint of the
Commission or the appropriate Federal regulator
for any violation
of this subchapter that is alleged in that
complaint.
(5) Limitations on State actions for violation
of section
1681s-2(a)(1)
(A) Violation of injunction required
A State may not bring an action against a person
under
paragraph (1)(B) for a violation of section
1681s-2(a)(1) of
this title, unless -
(i) the person has been enjoined from committing
the
violation, in an action brought by the State
under paragraph
(1)(A); and
(ii) the person has violated the injunction.
(B) Limitation on damages recoverable
In an action against a person under paragraph
(1)(B) for a
violation of section 1681s-2(a)(1) of this
title, a State may
not recover any damages incurred before the date
of the
violation of an injunction on which the action
is based.
(d) Enforcement under other authority
For the purpose of the exercise by any agency
referred to in
subsection (b) of this section of its powers
under any Act referred
to in that subsection, a violation of any
requirement imposed under
this 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) of this
section, each of the agencies referred to in
that subsection may
exercise, for the purpose of enforcing
compliance with any
requirement imposed under this subchapter any
other authority
conferred on it by law.
(e) Regulatory authority
(1) The Federal banking agencies referred to in
paragraphs (1)
and (2) of subsection (b) of this section shall
jointly prescribe
such regulations as necessary to carry out the
purposes of this
subchapter with respect to any persons
identified under paragraphs
(1) and (2) of subsection (b) of this section,
and the Board of
Governors of the Federal Reserve System shall
have authority to
prescribe regulations consistent with such joint
regulations with
respect to bank holding companies and affiliates
(other than
depository institutions and consumer reporting
agencies) of such
holding companies.
(2) The Board of the National Credit Union
Administration shall
prescribe such regulations as necessary to carry
out the purposes
of this subchapter with respect to any persons
identified under
paragraph (3) of subsection (b) of this section.
Section 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
section 1681b of this
title, any information on the failure of the
consumer to pay
overdue support which -
(1) is provided -
(A) to the consumer reporting agency by a State
or local
child support enforcement agency; or
(B) to the consumer reporting agency and
verified by any
local, State, or Federal Government agency; and
(2) antedates the report by 7 years or less.
Section 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 consciously avoids knowing that the
information is
inaccurate.
(B) Reporting information after notice and
confirmation of
errors
A person shall not furnish information relating
to a consumer
to any consumer reporting agency if -
(i) the person has been notified by the
consumer, at the
address specified by the person for such
notices, that
specific information is inaccurate; and
(ii) the information is, in fact, inaccurate.
(C) No address requirement
A person who clearly and conspicuously specifies
to the
consumer an address for notices referred to in
subparagraph (B)
shall not be subject to subparagraph (A);
however, nothing in
subparagraph (B) shall require a person to
specify such an
address.
(2) Duty to correct and update information
A person who -
(A) regularly and in the ordinary course of
business
furnishes information to one or more consumer
reporting
agencies about the person's transactions or
experiences with
any consumer; and
(B) has furnished to a consumer reporting agency
information
that the person determines is not complete or
accurate,
shall promptly notify the consumer reporting
agency of that
determination and provide to the agency any
corrections to that
information, or any additional information, that
is necessary to
make the information provided by the person to
the agency
complete and accurate, and shall not thereafter
furnish to the
agency any of the information that remains not
complete or
accurate.
(3) Duty to provide notice of dispute
If the completeness or accuracy of any
information furnished by
any person to any consumer reporting agency is
disputed to such
person by a consumer, the person may not furnish
the information
to any consumer reporting agency without notice
that such
information is disputed by the consumer.
(4) Duty to provide notice of closed accounts
A person who regularly and in the ordinary
course of business
furnishes information to a consumer reporting
agency regarding a
consumer who has a credit account with that
person shall notify
the agency of the voluntary closure of the
account by the
consumer, in information regularly furnished for
the period in
which the account is closed.
(5) Duty to provide notice of delinquency of
accounts
A person who furnishes information to a consumer
reporting
agency regarding a delinquent account being
placed for
collection, charged to profit or loss, or
subjected to any
similar action shall, not later than 90 days
after furnishing the
information, notify the agency of the month and
year of the
commencement of the delinquency that immediately
preceded the
action.
(b) Duties of furnishers of information upon
notice of dispute
(1) In general
After receiving notice pursuant to section
1681i(a)(2) of this
title of a dispute with regard to the
completeness or accuracy of
any information provided by a person to a
consumer reporting
agency, the person shall -
(A) conduct an investigation with respect to the
disputed
information;
(B) review all relevant information provided by
the consumer
reporting agency pursuant to section 1681i(a)(2)
of this title;
(C) report the results of the investigation to
the consumer
reporting agency; and
(D) if the investigation finds that the
information is
incomplete or inaccurate, report those results
to all other
consumer reporting agencies to which the person
furnished the
information and that compile and maintain files
on consumers on
a nationwide basis.
(2) Deadline
A person shall complete all investigations,
reviews, and
reports required under paragraph (1) regarding
information
provided by the person to a consumer reporting
agency, before the
expiration of the period under section
1681i(a)(1) of this title
within which the consumer reporting agency is
required to
complete actions required by that section
regarding that
information.
(c) Limitation on liability
Sections 1681n and 1681o of this title do not
apply to any
failure to comply with subsection (a) of this
section, except as
provided in section 1681s(c)(1)(B) of this
title.
(d) Limitation on enforcement
Subsection (a) of this section shall be enforced
exclusively
under section 1681s of this title by the Federal
agencies and
officials and the State officials identified in
that section.
Section 1681t. Relation to State
laws
(a)
In general
Except as provided in subsections (b) and (c) of
this section,
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, 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 section 1681b of
this title,
relating to the prescreening of consumer
reports;
(B) section 1681i of this title, relating to the
time by
which a consumer reporting agency must take any
action,
including the provision of notification to a
consumer or other
person, in any procedure related to the disputed
accuracy of
information in a consumer's file, except that
this subparagraph
shall not apply to any State law in effect on
September 30,
1996;
(C) subsections (a) and (b) of section 1681m of
this title,
relating to the duties of a person who takes any
adverse action
with respect to a consumer;
(D) section 1681m(d) of this title, relating to
the duties of
persons who use a consumer report of a consumer
in connection
with any credit or insurance transaction that is
not initiated
by the consumer and that consists of a firm
offer of credit or
insurance;
(E) section 1681c of this title, relating to
information
contained in consumer reports, except that this
subparagraph
shall not apply to any State law in effect on
September 30,
1996; or
(F) section 1681s-2 of this title, relating to
the
responsibilities of persons who furnish
information to consumer
reporting agencies, except that this paragraph
shall not apply
-
(i) with respect to section 54A(a) of chapter 93
of the
Massachusetts Annotated Laws (as in effect on
September 30,
1996); or
(ii) with respect to section 1785.25(a) of the
California
Civil Code (as in effect on September 30, 1996);
(2) with respect to the exchange of information
among persons
affiliated by common ownership or common
corporate control,
except that this paragraph shall not apply with
respect to
subsection (a) or (c)(1) of section 2480e of
title 9, Vermont
Statutes Annotated (as in effect on September
30, 1996); or
(3) with respect to the form and content of any
disclosure
required to be made under section 1681g(c) of
this title.
(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
section 1681a(l) of
this title shall be construed to apply in the
enforcement and
interpretation of the laws of any State
governing consumer reports.
(d) Limitations
Subsections (b) and (c) of this section -
(1) 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; and
(2) do not apply to any provision of State law
(including any
provision of a State constitution) that -
(A) is enacted after January 1, 2004;
(B) states explicitly that the provision is
intended to
supplement this subchapter; and
(C) gives greater protection to consumers than
is provided
under this subchapter.
Section 1681u. Disclosures to FBI for
counterintelligence purposes
(a)
Identity of financial institutions
Notwithstanding section 1681b of this title or
any other
provision of this subchapter, a consumer
reporting agency shall
furnish to the Federal Bureau of Investigation
the names and
addresses of all financial institutions (as that
term is defined in
section 3401 of title 12) at which a consumer
maintains or has
maintained an account, to the extent that
information is in the
files of the agency, when presented with a
written request for that
information, signed by the Director of the
Federal Bureau of
Investigation, or the Director's designee in a
position not lower
than Deputy Assistant Director at Bureau
headquarters or a Special
Agent in Charge of a Bureau field office
designated by the
Director, which certifies compliance with this
section. The
Director or the Director's designee may make
such a certification
only if the Director or the Director's designee
has determined in
writing, that such information is sought for the
conduct of an
authorized investigation to protect against
international terrorism
or clandestine intelligence activities, provided
that such an
investigation of a United States person is not
conducted solely
upon the basis of activities protected by the
first amendment to
the Constitution of the United States.
(b) Identifying information
Notwithstanding the provisions of section 1681b
of this title or
any other provision of this subchapter, a
consumer reporting agency
shall furnish identifying information respecting
a consumer,
limited to name, address, former addresses,
places of employment,
or former places of employment, to the Federal
Bureau of
Investigation when presented with a written
request, signed by the
Director or the Director's designee in a
position not lower than
Deputy Assistant Director at Bureau headquarters
or a Special Agent
in Charge of a Bureau field office designated by
the Director,
which certifies compliance with this subsection.
The Director or
the Director's designee may make such a
certification only if the
Director or the Director's designee has
determined in writing that
such information is sought for the conduct of an
authorized
investigation to protect against international
terrorism or
clandestine intelligence activities, provided
that such an
investigation of a United States person is not
conducted solely
upon the basis of activities protected by the
first amendment to
the Constitution of the United States.
(c) Court order for disclosure of consumer
reports
Notwithstanding section 1681b of this title or
any other
provision of this subchapter, if requested in
writing by the
Director of the Federal Bureau of Investigation,
or a designee of
the Director in a position not lower than Deputy
Assistant Director
at Bureau headquarters or a Special Agent in
Charge in a Bureau
field office designated by the Director, a court
may issue an order
ex parte directing a consumer reporting agency
to furnish a
consumer report to the Federal Bureau of
Investigation, upon a
showing in camera that the consumer report is
sought for the
conduct of an authorized investigation to
protect against
international terrorism or clandestine
intelligence activities,
provided that such an investigation of a United
States person is
not conducted solely upon the basis of
activities protected by the
first amendment to the Constitution of the
United States. The terms
of an order issued under this subsection shall
not disclose that
the order is issued for purposes of a
counterintelligence
investigation.
(d) Confidentiality
No consumer reporting agency or officer,
employee, or agent of a
consumer reporting agency shall disclose to any
person, other than
those officers, employees, or agents of a
consumer reporting agency
necessary to fulfill the requirement to disclose
information to the
Federal Bureau of Investigation under this
section, that the
Federal Bureau of Investigation has sought or
obtained the identity
of financial institutions or a consumer report
respecting any
consumer under subsection (a), (b), or (c) of
this section, and no
consumer reporting agency or officer, employee,
or agent of a
consumer reporting agency shall include in any
consumer report any
information that would indicate that the Federal
Bureau of
Investigation has sought or obtained such
information or a consumer
report.
(e) Payment of fees
The Federal Bureau of Investigation shall,
subject to the
availability of appropriations, pay to the
consumer reporting
agency assembling or providing report or
information in accordance
with procedures established under this section a
fee for
reimbursement for such costs as are reasonably
necessary and which
have been directly incurred in searching,
reproducing, or
transporting books, papers, records, or other
data required or
requested to be produced under this section.
(f) Limit on dissemination
The Federal Bureau of Investigation may not
disseminate
information obtained pursuant to this section
outside of the
Federal Bureau of Investigation, except to other
Federal agencies
as may be necessary for the approval or conduct
of a foreign
counterintelligence investigation, or, where the
information
concerns a person subject to the Uniform Code of
Military Justice,
to appropriate investigative authorities within
the military
department concerned as may be necessary for the
conduct of a joint
foreign counterintelligence investigation.
(g) Rules of construction
Nothing in this section shall be construed to
prohibit
information from being furnished by the Federal
Bureau of
Investigation pursuant to a subpoena or court
order, in connection
with a judicial or administrative proceeding to
enforce the
provisions of this subchapter. Nothing in this
section shall be
construed to authorize or permit the withholding
of information
from the Congress.
(h) 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) of this section.
(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 section
415b of title 50.
(i) Damages
Any agency or department of the United States
obtaining or
disclosing any consumer reports, records, or
information contained
therein in violation of this section is liable
to the consumer to
whom such consumer reports, records, or
information relate in an
amount equal to the sum of -
(1) $100, without regard to the volume of
consumer reports,
records, or information involved;
(2) any actual damages sustained by the consumer
as a result of
the disclosure;
(3) if the violation is found to have been
willful or
intentional, such punitive damages as a court
may allow; and
(4) in the case of any successful action to
enforce liability
under this subsection, the costs of the action,
together with
reasonable attorney fees, as determined by the
court.
(j) Disciplinary actions for violations
If a court determines that any agency or
department of the United
States has violated any provision of this
section and the court
finds that the circumstances surrounding the
violation raise
questions of whether or not an officer or
employee of the agency or
department acted willfully or intentionally with
respect to the
violation, the agency or department shall
promptly initiate a
proceeding to determine whether or not
disciplinary action is
warranted against the officer or employee who
was responsible for
the violation.
(k) Good-faith exception
Notwithstanding any other provision of this
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.
(l) 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.
(m) Injunctive relief
In addition to any other remedy contained in
this section,
injunctive relief shall be available to require
compliance with the
procedures of this section. In the event of any
successful action
under this subsection, costs together with
reasonable attorney
fees, as determined by the court, may be
recovered.
Section 1681v. Disclosures to
governmental agencies for counterterrorism
purposes
(a)
Disclosure
Notwithstanding section 1681b of this title or
any other
provision of this subchapter, a consumer
reporting agency shall
furnish a consumer report of a consumer and all
other information
in a consumer's file to a government agency
authorized to conduct
investigations of, or intelligence or
counterintelligence
activities or analysis related to, international
terrorism when
presented with a written certification by such
government agency
that such information is necessary for the
agency's conduct or such
investigation, activity or analysis.
(b) Form of certification
The certification described in subsection (a) of
this section
shall be signed by a supervisory official
designated by the head of
a Federal agency or an officer of a Federal
agency whose
appointment to office is required to be made by
the President, by
and with the advice and consent of the Senate.
(c) Confidentiality
No consumer reporting agency, or officer,
employee, or agent of
such consumer reporting agency, shall disclose
to any person, or
specify in any consumer report, that a
government agency has sought
or obtained access to information under
subsection (a) of this
section.
(d) Rule of construction
Nothing in section 1681u of this title shall be
construed to
limit the authority of the Director of the
Federal Bureau of
Investigation under this section.
(e) Safe harbor
Notwithstanding any other provision of this
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
governmental agency pursuant to the provisions
of this section
shall not be liable to any person for such
disclosure under this
subchapter, the constitution of any State, or
any law or regulation
of any State or any political subdivision of any
State.
Fair Credit Billing
Act
Fair Credit Billing Act (FCBA)
This Act requires your credit company to provide
prompt correction of credit and charge billing
errors. However, there are certain things you
must do to protect your rights.
If
you find an error on your bill, you should write
a letter to the credit card company's customer
service department right away. Your letter must
reach the credit card company within 60 days
after the bill was mailed. In your letter
include your name, card number, and the amount
involved. Briefly describe the error. Make sure
to also include a copy of the bill and any
receipts. Keep your originals. Also, keep a copy
of your letter.
Within 30 days, the credit card company must
acknowledge your letter or correct the error. If
the credit card company disagrees with you, it
must write bank within 90 days (or two billing
cycles, whichever is less). During this time,
the credit card company can't report the
disputed amount to a credit bureau as overdue.
If your claim is confirmed, any interest charged
on the disputed amount must be dropped.
Fair Credit and Charge
Card Disclosure Act
Fair
Credit and Charge Card Disclosure Act (FCCCDA)
Under this Act, credit and charge companies must
provide you with information about their terms.
Features like Annual Percentage Rates (APRs),
cash advances, and annual fees may vary from one
card to another. Cards may charge different APRs
for purchases than they do for cash advances,
and the APR may change. Card issuers are
required to disclose their terms in writing at
the time you apply. If a card company offers you
a written "pre-approved" credit solicitation,
the offer must include these written terms.
Also, card issuers must inform customers if they
make certain changes in rates or coverage for
credit insurance.
Equal Credit Opportunity
Act
Equal Credit Opportunity Act (ECOPA)
The Equal Credit Opportunity Act guarantees
equal opportunity to all customers of credit
card companies, banks, loan and finance
companies, retail stores and credit unions.
Discrimination on the basis of race, color, sex,
national origin, marital status, age (provided
the customer has the capacity to enter into a
binding contract), receipt of public assistance,
or the fact that the consumer has in good faith
exercised any right under the Consumer Credit
Protection Act is strictly prohibited.
The following summarizes some of the key
protections under the Act:
· In general, creditors cannot ask you for your
race, sex, or national origin, nor can they use
theses factors when deciding whether to give you
a loan or other credit. However, if you apply
for a mortgage, the lender is required to ask
you about these facts. Your answers may be used
to help enforce laws against discrimination.
Even so, you aren't required to give this
information.
· You're entitled to your own credit history-in
your individual name-even if you are married.
This can be important if you should ever need
credit on your own. However, if you share credit
with your spouse, you will share your own
partner's credit record as well.
· If you apply for unsecured credit on your own,
your marital status is off-limits.
· You don't have to tell a creditor you're
divorces or you're receiving support payments.
However, a lender has a legitimate interest in
your ability to repay your debts. Therefore, you
may have to disclose any alimony, maintenance,
or child support you're obligate to pay. You
must also list any support payments you receive
if you want to be counted as income on your
application.
· You don't have to tell a creditor you're
divorces or you're receiving support payments.
However, a lender has a legitimate interest in
your ability to repay your debts. Therefore, you
may have to disclose any alimony, maintenance,
or child support you're obligate to pay. You
must also list any support payments you receive
if you want to be counted as income on your
application.
· As long as you're old enough to sign a legal
contract, your age can be used against you.
· A creditor cannot discriminate against you if
you receive public assistance. However, a
creditor can verify any income you list on a
credit application.
Send your letter by certified mail, and request
a return receipt so you can document what the
credit bureau received and when. Keep copies of
your dispute letter and enclosures. Credit
bureaus must usually investigate the items in
question within 30 days, unless they consider
your dispute frivolous. They also must forward
all relevant date you provide about the dispute
to the information provider. After the
information provider receives notice of a
dispute from the credit bureau, it must
investigate, review all relevant information
provided by the credit bureau, and report the
results to the credit bureau. If the information
provider finds the disputed information to be
inaccurate, it must notify any nationwide credit
bureau that it reports to so that the credit
bureau can correct this information in your
file. Note that:
· Disputed information that cannot be verified
must be deleted from your file.
· If your report contains erroneous information,
the credit bureau must correct it.
· If an item is incomplete, the credit bureau
must complete it. For example, if your file
shows that you have been late making payments,
but fails to show that you are no longer
delinquent, the credit bureau must show that
you're current.
If your file shows an account that belongs to
someone else, the credit bureau must delete it.
When
the investigation is complete, the credit bureau
must give you written results and a free copy of
your report if the dispute results in a change.
If an item is changed or removed, the credit
bureau cannot put the disputed information back
in your file unless the information provider
verifies its accuracy and completeness, and the
credit bureau gives you a written notice that
includes the name, address, and phone number of
the information provider.
Dealing with creditors/information
providers
In
addition to writing to the credit bureau, tell
the creditor or other information providers in
writing that you dispute an item. Again, include
copies (NOT originals) of documents that support
your position. Many information providers
specify an address for disputes. If the
information provider then reports the item to
any credit bureau, it must include a notice of
your dispute. In addition, if your are
correct-that is, if the disputed information is
not accurate-the information provider must not
use it again.
Additional
Resources
For more information, consult How to Dispute
Credit Report Errors and Fair Credit Reporting,
two brochures available from the Federal Trade
Commission or online at
www.consumer.gov/idtheft
or
For more information, go to our Financial
Library and download the two brochures.
If you want a summarized version of Fair Credit
Reporting Act, go to Your Legal Rights Section.
Know
Your Legal Rights As A Consumer