As a public service, the staff of the Federal Trade Commission (FTC) has prepared the

following complete text of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.

Although staff generally followed the format of the U.S. Code as published by the Government

Printing Office, the format of this text does differ in minor ways from the Code (and from West’s

U.S. Code Annotated). For example, this version uses FCRA section numbers (§§ 601-625) in

the headings. (The relevant U.S. Code citation is included with each section heading and each

reference to the FCRA in the text.) Although the staff has made every effort to transcribe the

statutory material accurately, this compendium is intended only as a convenience for the public

and not a subtitute for the text in the U. S. Code. This document was posted on July 30, 2004.

This version of the FCRA includes the amendments to the FCRA set forth in the Consumer

Credit Reporting Reform Act of 1996 (Public Law 104-208, the Omnibus Consolidated Appropriations

Act for Fiscal Year 1997, Title II, Subtitle D, Chapter 1), Section 311 of the

Intelligence Authorization for Fiscal Year 1998 (Public Law 105-107), the Consumer Reporting

Employment Clarification Act of 1998 (Public Law 105-347), Section 506 of the Gramm-Leach-

Bliley Act (Public Law 106-102), Sections 358(g) and 505(c) of the Uniting and Strengthening

America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of

2001 (USA PATRIOT Act) (Public Law 107-56), and the Fair and Accurate Credit Transactions

Act of 2003 (FACT Act) (Public Law 108-159).

The provisions added to the FCRA by the FACT Act will become effective at different times.

In some cases, the provision includes its own effective date. In other cases, the FACT Act provides

that the effective dates be prescribed by the FTC and Federal Reserve Board. See 16 CFR Part 602.

(69 Fed. Reg. 6526; February 11, 2004) (69 Fed. Reg. 29061; May 20, 2004).

§ 601 Short title

§ 602 Congressional findings and statement of purpose

§ 603 Definitions; rules of construction

§ 604 Permissible purposes of consumer reports

§ 605A Identity theft prevention; fraud alerts and active duty alerts

§ 605B Block of information resulting from identity theft

§ 605 Requirements relating to information contained in consumer reports

§ 606 Disclosure of investigative consumer reports

§ 607 Compliance procedures

§ 608 Disclosures to governmental agencies

§ 609 Disclosures to consumers

§ 610 Conditions and form of disclosure to consumers

§ 611 Procedure in case of disputed accuracy

§ 612 Charges for certain disclosures

§ 613 Public record information for employment purposes

§ 614 Restrictions on investigative consumer reports

§ 615 Requirements on users of consumer reports

§ 616 Civil liability for willful noncompliance

§ 617 Civil liability for negligent noncompliance

§ 618 Jurisdiction of courts; limitation of actions

§ 619 Obtaining information under false pretenses

§ 620 Unauthorized disclosures by officers or employees

§ 621 Administrative enforcement

§ 622 Information on overdue child support obligations

§ 623 Responsibilities of furnishers of information to consumer reporting agencies

§ 624 Affiliate sharing

§ 625 Relation to state laws

§ 626 Disclosures to FBI for counterintelligence purposes

§ 627 Disclosures to governmental agencies for counterterrorism purposes

§ 628 Disposal of records

§ 629 Corporate and technological circumvention prohibited

This title may be cited as the “Fair Credit Reporting Act”.

(1) The banking system is dependent upon fair and accurate credit reporting.

Inaccurate credit reports directly impair the efficiency of the banking system, and

unfair credit reporting methods undermine the public confidence which is

essential to the continued functioning of the banking system.

(2) An elaborate mechanism has been developed for investigating and evaluating the

credit worthiness, credit standing, credit capacity, character, and general

reputation of consumers.

(3) Consumer reporting agencies have assumed a vital role in assembling and

evaluating consumer credit and other information on consumers.

(4) There is a need to insure that consumer reporting agencies exercise their grave

responsibilities with fairness, impartiality, and a respect for the consumer's right

to privacy.

reporting agencies adopt reasonable procedures for meeting the needs of commerce

for consumer credit, personnel, insurance, and other information in a manner which is

fair and equitable to the consumer, with regard to the confidentiality, accuracy,

relevancy, and proper utilization of such information in accordance with the

requirements of this title.

(a) Definitions and rules of construction set forth in this section are applicable for the

purposes of this title.

(b) The term “person” means any individual, partnership, corporation, trust, estate,

cooperative, association, government or governmental subdivision or agency, or

other entity.

(c) The term “consumer” means an individual.

(d) Consumer Report

communication of any information by a consumer reporting agency bearing on a

consumer's credit worthiness, credit standing, credit capacity, character, general

reputation, personal characteristics, or mode of living which is used or expected

to be used or collected in whole or in part for the purpose of serving as a factor in

establishing the consumer's eligibility for

(A) credit or insurance to be used primarily for personal, family, or household

purposes;

(B) employment purposes; or

(C) any other purpose authorized under section 604 [§ 1681b].

not include

(A) subject to section 624, any

(i) report containing information solely as to transactions or experiences

between the consumer and the person making the report;

(ii) communication of that information among persons related by common

ownership or affiliated by corporate control; or

(iii) communication of other information among persons related by

common ownership or affiliated by corporate control, if it is clearly

and conspicuously disclosed to the consumer that the information may

be communicated among such persons and the consumer is given the

opportunity, before the time that the information is initially

communicated, to direct that such information not be communicated

among such persons;

(B) any authorization or approval of a specific extension of credit directly or

indirectly by the issuer of a credit card or similar device;

(C) any report in which a person who has been requested by a third party to

make a specific extension of credit directly or indirectly to a consumer

conveys his or her decision with respect to such request, if the third party

advises the consumer of the name and address of the person to whom the

request was made, and such person makes the disclosures to the consumer

required under section 615 [§ 1681m]; or

(D) a communication described in subsection (o) or (x).

communication of information disclosed as provided in section 604(g)(3), the

exclusions in paragraph (2) shall not apply with respect to information disclosed

to any person related by common ownership or affiliated by corporate control, if

the information is--

(A) medical information;

(B) an individualized list or description based on the payment transactions of the

consumer for medical products or services; or

(C) an aggregate list of identified consumers based on payment transactions for

medical products or services.

(e) The term “investigative consumer report” means a consumer report or portion

thereof in which information on a consumer's character, general reputation, personal

characteristics, or mode of living is obtained through personal interviews with

neighbors, friends, or associates of the consumer reported on or with others with

whom he is acquainted or who may have knowledge concerning any such items of

information. However, such information shall not include specific factual information

on a consumer's credit record obtained directly from a creditor of the consumer or

from a consumer reporting agency when such information was obtained directly from

a creditor of the consumer or from the consumer.

(f) The term “consumer reporting agency” means any person which, for monetary fees,

dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the

practice of assembling or evaluating consumer credit information or other

information on consumers for the purpose of furnishing consumer reports to third

parties, and which uses any means or facility of interstate commerce for the purpose

of preparing or furnishing consumer reports.

(g) The term “file,” when used in connection with information on any consumer, means

all of the information on that consumer recorded and retained by a consumer

reporting agency regardless of how the information is stored.

(h) The term “employment purposes” when used in connection with a consumer report

means a report used for the purpose of evaluating a consumer for employment,

promotion, reassignment or retention as an employee.

(i) The term “medical information” --

(1) means information or data, whether oral or recorded, in any form or medium,

created by or derived from a health care provider or the consumer, that relates to--

(A) the past, present, or future physical, mental, or behavioral health or

condition of an individual;

(B) the provision of health care to an individual; or

(C) the payment for the provision of health care to an individual.

(2) does not include the age or gender of a consumer, demographic information about

the consumer, including a consumer's residence address or e-mail address, or any

other information about a consumer that does not relate to the physical, mental, or

behavioral health or condition of a consumer, including the existence or value of

any insurance policy.

(j) Definitions Relating to Child Support Obligations

(1) The “overdue support” has the meaning given to such term in section 666(e) of

title 42 [Social Security Act, 42 U.S.C. § 666(e)].

(2) The term “State or local child support enforcement agency” means a State or local

agency which administers a State or local program for establishing and enforcing

child support obligations.

(k) Adverse Action

(A) has the same meaning as in section 701(d)(6) of the Equal Credit

Opportunity Act; and

(B) means

(i) a denial or cancellation of, an increase in any charge for, or a reduction

or other adverse or unfavorable change in the terms of coverage or

amount of, any insurance, existing or applied for, in connection with

the underwriting of insurance;

(ii) a denial of employment or any other decision for employment purposes

that adversely affects any current or prospective employee;

(iii) a denial or cancellation of, an increase in any charge for, or any other

adverse or unfavorable change in the terms of, any license or benefit

described in section 604(a)(3)(D) [§ 1681b]; and

(iv) an action taken or determination that is

(I) made in connection with an application that was made by, or a

transaction that was initiated by, any consumer, or in connection

with a review of an account under section

604(a)(3)(F)(ii)[§ 1681b]; and

(II) adverse to the interests of the consumer.

determination of whether an action is an adverse action under paragraph (1)(A),

all appropriate final findings, decisions, commentary, and orders issued under

section 701(d)(6) of the Equal Credit Opportunity Act by the Board of Governors

of the Federal Reserve System or any court shall apply.

(l) The term “firm offer of credit or insurance” means any offer of credit or insurance to

a consumer that will be honored if the consumer is determined, based on information

in a consumer report on the consumer, to meet the specific criteria used to select the

consumer for the offer, except that the offer may be further conditioned on one or

more of the following:

(1) The consumer being determined, based on information in the consumer's

application for the credit or insurance, to meet specific criteria bearing on credit

worthiness or insurability, as applicable, that are established

(A) before selection of the consumer for the offer; and

(B) for the purpose of determining whether to extend credit or insurance

pursuant to the offer.

(2) Verification

(A) that the consumer continues to meet the specific criteria used to select the

consumer for the offer, by using information in a consumer report on the

consumer, information in the consumer's application for the credit or

insurance, or other information bearing on the credit worthiness or

insurability of the consumer; or

(B) of the information in the consumer's application for the credit or insurance,

to determine that the consumer meets the specific criteria bearing on credit

worthiness or insurability.

(3) The consumer furnishing any collateral that is a requirement for the extension of

the credit or insurance that was

(A) established before selection of the consumer for the offer of credit or

insurance; and

(B) disclosed to the consumer in the offer of credit or insurance.

(m) The term “credit or insurance transaction that is not initiated by the consumer” does

not include the use of a consumer report by a person with which the consumer has an

account or insurance policy, for purposes of

(1) reviewing the account or insurance policy; or

(2) collecting the account.

(n) The term “State” means any State, the Commonwealth of Puerto Rico, the District of

Columbia, and any territory or possession of the United States.

communication

(1) that, but for subsection (d)(2)(D), would be an investigative consumer report;

(2) that is made to a prospective employer for the purpose of

(A) procuring an employee for the employer; or

(B) procuring an opportunity for a natural person to work for the employer;

(3) that is made by a person who regularly performs such procurement;

(4) that is not used by any person for any purpose other than a purpose described in

subparagraph (A) or (B) of paragraph (2); and

(5) with respect to which

(A) the consumer who is the subject of the communication

(i) consents orally or in writing to the nature and scope of the

communication, before the collection of any information for the

purpose of making the communication;

(ii) consents orally or in writing to the making of the communication to a

prospective employer, before the making of the communication; and

(iii) in the case of consent under clause (i) or (ii) given orally, is provided

written confirmation of that consent by the person making the

communication, not later than 3 business days after the receipt of the

consent by that person;

(B) the person who makes the communication does not, for the purpose of

making the communication, make any inquiry that if made by a

prospective employer of the consumer who is the subject of the

communication would violate any applicable Federal or State equal

employment opportunity law or regulation; and

(C) the person who makes the communication

(i) discloses in writing to the consumer who is the subject of the

communication, not later than 5 business days after receiving any

request from the consumer for such disclosure, the nature and substance

of all information in the consumer's file at the time of the request, except

that the sources of any information that is acquired solely for use in

making the communication and is actually used for no other purpose,

need not be disclosed other than under appropriate discovery procedures

in any court of competent jurisdiction in which an action is brought; and

(ii) notifies the consumer who is the subject of the communication, in

writing, of the consumer's right to request the information described in

clause (i).

(p) The term “consumer reporting agency that compiles and maintains files on

consumers on a nationwide basis” means a consumer reporting agency that regularly

engages in the practice of assembling or evaluating, and maintaining, for the purpose

of furnishing consumer reports to third parties bearing on a consumer's credit

worthiness, credit standing, or credit capacity, each of the following regarding

consumers residing nationwide:

(1) Public record information.

(2) Credit account information from persons who furnish that information regularly

and in the ordinary course of business.

(q) Definitions relating to fraud alerts.

(1) The term “active duty military consumer” means a consumer in military service

who--

(A) is on active duty (as defined in section 101(d)(1) of title 10, United States

Code) or is a reservist performing duty under a call or order to active duty

under a provision of law referred to in section 101(a)(13) of title 10,

United States Code; and

(B) is assigned to service away from the usual duty station of the consumer.

(2) The terms “fraud alert” and “active duty alert” mean a statement in the file of a

consumer that--

(A) notifies all prospective users of a consumer report relating to the consumer

that the consumer may be a victim of fraud, including identity theft, or is

an active duty military consumer, as applicable; and

(B) is presented in a manner that facilitates a clear and conspicuous view of

the statement described in subparagraph (A) by any person requesting such

consumer report.

(3) The term “identity theft” means a fraud committed using the identifying

information of another person, subject to such further definition as the

Commission may prescribe, by regulation.

(4) The term “identity theft report” has the meaning given that term by rule of the

Commission, and means, at a minimum, a report--

(A) that alleges an identity theft;

(B) that is a copy of an official, valid report filed by a consumer with an

appropriate Federal, State, or local law enforcement agency, including the

United States Postal Inspection Service, or such other government agency

deemed appropriate by the Commission; and

(C) the filing of which subjects the person filing the report to criminal

penalties relating to the filing of false information if, in fact, the

information in the report is false.

(5) The term “new credit plan” means a new account under an open end credit plan

(as defined in section 103(i) of the Truth in Lending Act) or a new credit

transaction not under an open end credit plan.

(r) Credit and Debit Related Terms

(1) The term “card issuer” means--

(A) a credit card issuer, in the case of a credit card; and

(B) a debit card issuer, in the case of a debit card.

(2) The term “credit card” has the same meaning as in section 103 of the Truth in

Lending Act.

(3) The term “debit card” means any card issued by a financial institution to a

consumer for use in initiating an electronic fund transfer from the account of the

consumer at such financial institution, for the purpose of transferring money

between accounts or obtaining money, property, labor, or services.

(4) The terms “account” and “electronic fund transfer” have the same meanings as in

section 903 of the Electronic Fund Transfer Act.

(5) The terms “credit” and “creditor” have the same meanings as in section 702 of the

Equal Credit Opportunity Act.

(s) The term “Federal banking agency” has the same meaning as in section 3 of the

Federal Deposit Insurance Act.

(t) The term “financial institution” means a State or National bank, a State or Federal

savings and loan association, a mutual savings bank, a State or Federal credit union,

or any other person that, directly or indirectly, holds a transaction account (as defined

in section 19(b) of the Federal Reserve Act) belonging to a consumer.

(u) The term “reseller” means a consumer reporting agency that--

(1) assembles and merges information contained in the database of another consumer

reporting agency or multiple consumer reporting agencies concerning any

consumer for purposes of furnishing such information to any third party, to the

extent of such activities; and

(2) does not maintain a database of the assembled or merged information from which

new consumer reports are produced.

(v) The term “Commission” means the Federal Trade Commission.

(w) The term “nationwide specialty consumer reporting agency” means a consumer

reporting agency that compiles and maintains files on consumers on a nationwide

basis relating to--

(1) medical records or payments;

(2) residential or tenant history;

(3) check writing history;

(4) employment history; or

(5) insurance claims.

(x) Exclusion of Certain Communications for Employee Investigations

(1) A communication is described in this subsection if--

(A) but for subsection (d)(2)(D), the communication would be a consumer

report;

(B) the communication is made to an employer in connection with an

investigation of–

(i) suspected misconduct relating to employment; or

(ii) compliance with Federal, State, or local laws and regulations, the rules

of a self-regulatory organization, or any preexisting written policies of

the employer;

(C) the communication is not made for the purpose of investigating a

consumer's credit worthiness, credit standing, or credit capacity; and

(D) the communication is not provided to any person except--

(i) to the employer or an agent of the employer;

(ii) to any Federal or State officer, agency, or department, or any officer,

agency, or department of a unit of general local government;

(iii) to any self-regulatory organization with regulatory authority over the

activities of the employer or employee;

(iv) as otherwise required by law; or

(v) pursuant to section 608.

communication described in paragraph (1), the employer shall disclose to the

consumer a summary containing the nature and substance of the communication

upon which the adverse action is based, except that the sources of information

acquired solely for use in preparing what would be but for subsection (d)(2)(D) an

investigative consumer report need not be disclosed.

(3) For purposes of this subsection, the term “self-regulatory organization” includes any

self-regulatory organization (as defined in section 3(a)(26) of the Securities

Exchange Act of 1934), any entity established under title I of the Sarbanes-Oxley Act

of 2002, any board of trade designated by the Commodity Futures Trading

Commission, and any futures association registered with such Commission.

consumer report under the following circumstances and no other:

(1) In response to the order of a court having jurisdiction to issue such an order, or a

subpoena issued in connection with proceedings before a Federal grand jury.

(2) In accordance with the written instructions of the consumer to whom it relates.

(3) To a person which it has reason to believe

(A) intends to use the information in connection with a credit transaction

involving the consumer on whom the information is to be furnished and

involving the extension of credit to, or review or collection of an account

of, the consumer; or

(B) intends to use the information for employment purposes; or

(C) intends to use the information in connection with the underwriting of

insurance involving the consumer; or

(D) intends to use the information in connection with a determination of the

consumer's eligibility for a license or other benefit granted by a

governmental instrumentality required by law to consider an applicant's

financial responsibility or status; or

(E) intends to use the information, as a potential investor or servicer, or

current insurer, in connection with a valuation of, or an assessment of the

credit or prepayment risks associated with, an existing credit obligation; or

(F) otherwise has a legitimate business need for the information

(i) in connection with a business transaction that is initiated by the

consumer; or

(ii) to review an account to determine whether the consumer continues to

meet the terms of the account.

(4) In response to a request by the head of a State or local child support enforcement

agency (or a State or local government official authorized by the head of such an

agency), if the person making the request certifies to the consumer reporting

agency that

(A) the consumer report is needed for the purpose of establishing an

individual’s capacity to make child support payments or determining the

appropriate level of such payments;

(B) the paternity of the consumer for the child to which the obligation relates

has been established or acknowledged by the consumer in accordance with

State laws under which the obligation arises (if required by those laws);

(C) the person has provided at least 10 days’ prior notice to the consumer

whose report is requested, by certified or registered mail to the last known

address of the consumer, that the report will be requested; and

(D) the consumer report will be kept confidential, will be used solely for a

purpose described in subparagraph (A), and will not be used in connection

with any other civil, administrative, or criminal proceeding, or for any

other purpose.

(5) To an agency administering a State plan under Section 454 of the Social Security

Act (42 U.S.C. § 654) for use to set an initial or modified child support award.

(b) Conditions for Furnishing and Using Consumer Reports for Employment Purposes.

report for employment purposes only if

(A) the person who obtains such report from the agency certifies to the agency

that

(i) the person has complied with paragraph (2) with respect to the consumer

report, and the person will comply with paragraph (3) with respect to the

consumer report if paragraph (3) becomes applicable; and

(ii) information from the consumer report will not be used in violation of

any applicable Federal or State equal employment opportunity law or

regulation; and

(B) the consumer reporting agency provides with the report, or has previously

provided, a summary of the consumer's rights under this title, as prescribed

by the Federal Trade Commission under section 609(c)(3) [§ 1681g].

(2) Disclosure to Consumer.

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.

consumer described in subparagraph (C) applies for employment by mail,

telephone, computer, or other similar means, at any time before a

consumer report is procured or caused to be procured in connection with

that application--

(i) the person who procures the consumer report on the consumer for

employment purposes shall provide to the consumer, by oral, written,

or electronic means, notice that a consumer report may be obtained for

employment purposes, and a summary of the consumer's rights under

section 615(a)(3); and

(ii) the consumer shall have consented, orally, in writing, or electronically

to the procurement of the report by that person.

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.

report for employment purposes, before taking any adverse action based in

whole or in part on the report, the person intending to take such adverse

action shall provide to the consumer to whom the report relates--

(i) a copy of the report; and

(ii) a description in writing of the rights of the consumer under this title, as

(B) Application by mail, telephone, computer, or other similar means.

(i) If a consumer described in subparagraph (C) applies for employment

by mail, telephone, computer, or other similar means, and if a person

who has procured a consumer report on the consumer for employment

purposes takes adverse action on the employment application based in

whole or in part on the report, then the person must provide to the

consumer to whom the report relates, in lieu of the notices required

under subparagraph (A) of this section and under section 615(a),

within 3 business days of taking such action, an oral, written or

electronic notification--

(I) that adverse action has been taken based in whole or in part on a

consumer report received from a consumer reporting agency;

(II) of the name, address and telephone number of the consumer

reporting agency that furnished the consumer report (including

a toll-free telephone number established by the agency if the

agency compiles and maintains files on consumers on a

nationwide basis);

(III) that the consumer reporting agency did not make the decision to

take the adverse action and is unable to provide to the consumer

the specific reasons why the adverse action was taken; and

(IV) that the consumer may, upon providing proper identification, request

a free copy of a report and may dispute with the consumer reporting

agency the accuracy or completeness of any information in a report.

(ii) If, under clause (B)(i)(IV), the consumer requests a copy of a consumer

report from the person who procured the report, then, within 3 business

days of receiving the consumer's request, together with proper identification,

the person must send or provide to the consumer a copy of a

report and a copy of the consumer's rights as prescribed by the Federal

Trade Commission under section 609(c)(3).

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.

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.

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.

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.

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.

apply:

(i) The term “classified information” means information that is protected

from unauthorized disclosure under Executive Order No. 12958 or

successor orders.

(ii) The term “national security investigation” means any official inquiry

by an agency or department of the United States Government to

determine the eligibility of a consumer to receive access or continued

access to classified information or to determine whether classified

information has been lost or compromised.

(c) Furnishing reports in connection with credit or insurance transactions that are not

initiated by the consumer.

to any consumer pursuant to subparagraph (A) or (C) of subsection (a)(3) in

connection with any credit or insurance transaction that is not initiated by the

consumer only if

(A) the consumer authorizes the agency to provide such report to such person; or

(B)(i) the transaction consists of a firm offer of credit or insurance;

(ii) the consumer reporting agency has complied with subsection (e); and

(iii) there is not in effect an election by the consumer, made in accordance

with subsection (e), to have the consumer's name and address excluded

from lists of names provided by the agency pursuant to this paragraph.

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.

[§1681g], a consumer reporting agency shall not furnish to any person a record of

inquiries in connection with a credit or insurance transaction that is not initiated

by a consumer.

(d) Reserved.

(e) Election of consumer to be excluded from lists.

excluded from any list provided by a consumer reporting agency under subsection

(c)(1)(B) in connection with a credit or insurance transaction that is not initiated

by the consumer, by notifying the agency in accordance with paragraph (2) that

the consumer does not consent to any use of a consumer report relating to the

consumer in connection with any credit or insurance transaction that is not

initiated by the consumer.

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.

of the election of a consumer under paragraph (1) through the notification system

maintained by the agency under paragraph (5), a consumer reporting agency shall

(A) inform the consumer that the election is effective only for the 5-year

period following the election if the consumer does not submit to the

agency a signed notice of election form issued by the agency for purposes

of paragraph (2)(B); and

(B) provide to the consumer a notice of election form, if requested by the

consumer, not later than 5 business days after receipt of the notification of

the election through the system established under paragraph (5), in the

case of a request made at the time the consumer provides notification

through the system.

(A) shall be effective with respect to a consumer reporting agency beginning 5

business days after the date on which the consumer notifies the agency in

accordance with paragraph (2);

(B) shall be effective with respect to a consumer reporting agency

(i) subject to subparagraph (C), during the 5-year period beginning 5

business days after the date on which the consumer notifies the agency

of the election, in the case of an election for which a consumer notifies

the agency only in accordance with paragraph (2)(A); or

(ii) until the consumer notifies the agency under subparagraph (C), in the

case of an election for which a consumer notifies the agency in

accordance with paragraph (2)(B);

(C) shall not be effective after the date on which the consumer notifies the

agency, through the notification system established by the agency under

paragraph (5), that the election is no longer effective; and

(D) shall be effective with respect to each affiliate of the agency.

(5) Notification System

(c)(1)(B), furnishes a consumer report in connection with a credit or

insurance transaction that is not initiated by a consumer, shall

(i) establish and maintain a notification system, including a toll-free

telephone number, which permits any consumer whose consumer

report is maintained by the agency to notify the agency, with

appropriate identification, of the consumer's election to have the

consumer's name and address excluded from any such list of names

and addresses provided by the agency for such a transaction; and

(ii) publish by not later than 365 days after the date of enactment of the

Consumer Credit Reporting Reform Act of 1996, and not less than

annually thereafter, in a publication of general circulation in the area

served by the agency

(I) a notification that information in consumer files maintained by the

agency may be used in connection with such transactions; and

(II) the address and toll-free telephone number for consumers to use to

notify the agency of the consumer's election under clause (I).

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.

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.

consumer report for any purpose unless

(1) the consumer report is obtained for a purpose for which the consumer report is

authorized to be furnished under this section; and

(2) the purpose is certified in accordance with section 607 [§ 1681e] by a prospective

user of the report through a general or specific certification.

(g) Protection of Medical Information

furnish for employment purposes, or in connection with a credit or insurance

transaction, a consumer report that contains medical information (other than

medical contact information treated in the manner required under section

605(a)(6)) about a consumer, unless--

(A) if furnished in connection with an insurance transaction, the consumer

affirmatively consents to the furnishing of the report;

(B) if furnished for employment purposes or in connection with a credit

transaction--

(i) the information to be furnished is relevant to process or effect the

employment or credit transaction; and

(ii) the consumer provides specific written consent for the furnishing of the

report that describes in clear and conspicuous language the use for

which the information will be furnished; or

(C) the information to be furnished pertains solely to transactions, accounts, or

balances relating to debts arising from the receipt of medical services,

products, or devises, where such information, other than account status or

amounts, is restricted or reported using codes that do not identify, or do

not provide information sufficient to infer, the specific provider or the

nature of such services, products, or devices, as provided in section

605(a)(6).

prescribed under paragraph (5)(A), a creditor shall not obtain or use medical

information (other than medical contact information treated in the manner

required under section 605(a)(6)) pertaining to a consumer in connection with any

determination of the consumer's eligibility, or continued eligibility, for credit.

Section 603(d)(3) shall not be construed so as to treat information or any

communication of information as a consumer report if the information or

communication is disclosed--

(A) in connection with the business of insurance or annuities, including the

activities described in section 18B of the model Privacy of Consumer

Financial and Health Information Regulation issued by the National

Association of Insurance Commissioners (as in effect on January 1, 2003);

(B) for any purpose permitted without authorization under the Standards for

Individually Identifiable Health Information promulgated by the

Department of Health and Human Services pursuant to the Health

Insurance Portability and Accountability Act of 1996, or referred to under

section 1179 of such Act, or described in section 502(e) of Public Law

106-102; or

(C) as otherwise determined to be necessary and appropriate, by regulation or

order and subject to paragraph (6), by the Commission, any Federal

banking agency or the National Credit Union Administration (with respect

to any financial institution subject to the jurisdiction of such agency or

Administration under paragraph (1), (2), or (3) of section 621(b), or the

applicable State insurance authority (with respect to any person engaged in

providing insurance or annuities).

medical information pursuant to paragraph (1) or (3) shall not disclose such

information to any other person, except as necessary to carry out the purpose

for which the information was initially disclosed, or as otherwise permitted by

statute, regulation, or order.

(5) Regulations and Effective Date for Paragraph (2)

Union Administration shall, subject to paragraph (6) and after notice and

opportunity for comment, prescribe regulations that permit transactions

under paragraph (2) that are determined to be necessary and appropriate to

protect legitimate operational, transactional, risk, consumer, and other needs

(and which shall include permitting actions necessary for administrative

verification purposes), consistent with the intent of paragraph (2) to restrict

the use of medical information for inappropriate purposes.

Credit Union Administration shall issue the regulations required under

subparagraph (A) in final form before the end of the 6-month period

beginning on the date of enactment of the Fair and Accurate Credit

Transactions Act of 2003.

as altering, affecting, or superseding the applicability of any other provision of

Federal law relating to medical confidentiality.

(b) of this section, no consumer reporting agency may make any consumer report

containing any of the following items of information:

(1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from

the date of entry of the order for relief or the date of adjudication, as the case may

be, antedate the report by more than 10 years.

(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate

the report by more than seven years or until the governing statute of limitations

has expired, whichever is the longer period.

(3) Paid tax liens which, from date of payment, antedate the report by more than

seven years.

(4) Accounts placed for collection or charged to profit and loss which antedate the

(5) Any other adverse item of information, other than records of convictions of

(6) The name, address, and telephone number of any medical information furnisher

that has notified the agency of its status, unless--

(A) such name, address, and telephone number are restricted or reported using

codes that do not identify, or provide information sufficient to infer, the

specific provider or the nature of such services, products, or devices to a

person other than the consumer; or

(B) the report is being provided to an insurance company for a purpose

relating to engaging in the business of insurance other than property and

casualty insurance.

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

(a) shall begin, with respect to any delinquent account that is placed for collection

(internally or by referral to a third party, whichever is earlier), charged to profit and

loss, or subjected to any similar action, upon the expiration of the 180-day period

beginning on the date of the commencement of the delinquency which immediately

preceded the collection activity, charge to profit and loss, or similar action.

file of a consumer on or after the date that is 455 days after the date of enactment of

the Consumer Credit Reporting Reform Act of 1996.

(d) Information Required to be Disclosed

report that contains information regarding any case involving the consumer that

arises under title 11, United States Code, shall include in the report an

identification of the chapter of such title 11 under which such case arises if

provided by the source of the information. If any case arising or filed under title

11, United States Code, is withdrawn by the consumer before a final judgment,

the consumer reporting agency shall include in the report that such case or filing

was withdrawn upon receipt of documentation certifying such withdrawal.

a consumer report that contains any credit score or any other risk score or

predictor on any consumer shall include in the report a clear and conspicuous

statement that a key factor (as defined in section 609(f)(2)(B)) that adversely

affected such score or predictor was the number of enquiries, if such a predictor

was in fact a key factor that adversely affected such score. This paragraph shall not

apply to a check services company, acting as such, which issues authorizations for

the purpose of approving or processing negotiable instruments, electronic fund

transfers, or similar methods of payments, but only to the extent that such

company is engaged in such activities.

notified pursuant to section 623(a)(4) [§ 1681s-2] that a credit account of a consumer

was voluntarily closed by the consumer, the agency shall indicate that fact in any

consumer report that includes information related to the account.

to section 623(a)(3) [§ 1681s-2] that information regarding a consumer who was

furnished to the agency is disputed by the consumer, the agency shall indicate that

fact in each consumer report that includes the disputed information.

(g) Truncation of Credit Card and Debit Card Numbers

credit cards or debit cards for the transaction of business shall print more than the

last 5 digits of the card number or the expiration date upon any receipt provided

to the cardholder at the point of the sale or transaction.

printed, and shall not apply to transactions in which the sole means of recording a

credit card or debit card account number is by handwriting or by an imprint or

copy of the card.

(A) 3 years after the date of enactment of this subsection, with respect to any cash

register or other machine or device that electronically prints receipts for credit

card or debit card transactions that is in use before January 1, 2005; and

(B) 1 year after the date of enactment of this subsection, with respect to any cash

register or other machine or device that electronically prints receipts for credit

card or debit card transactions that is first put into use on or after January 1, 2005.

(h) Notice of Discrepancy in Address

from a consumer reporting agency described in section 603(p), the request

includes an address for the consumer that substantially differs from the addresses

in the file of the consumer, and the agency provides a consumer report in

response to the request, the consumer reporting agency shall notify the requester

of the existence of the discrepancy.

(2) Regulations

Union Administration, and the Commission shall jointly, with respect to

the entities that are subject to their respective enforcement authority under

section 621, prescribe regulations providing guidance regarding reasonable

policies and procedures that a user of a consumer report should employ

when such user has received a notice of discrepancy under paragraph (1).

subparagraph (A) shall describe reasonable policies and procedures for use

by a user of a consumer report--

(i) to form a reasonable belief that the user knows the identity of the

person to whom the consumer report pertains; and

(ii) if the user establishes a continuing relationship with the consumer, and

the user regularly and in the ordinary course of business furnishes

information to the consumer reporting agency from which the notice of

discrepancy pertaining to the consumer was obtained, to reconcile the

address of the consumer with the consumer reporting agency by

furnishing such address to such consumer reporting agency as part of

information regularly furnished by the user for the period in which the

relationship is established.

(a) One-call Fraud Alerts

behalf of or as a personal representative of a consumer, who asserts in good faith

a suspicion that the consumer has been or is about to become a victim of fraud or

related crime, including identity theft, a consumer reporting agency described in

section 603(p) that maintains a file on the consumer and has received appropriate

proof of the identity of the requester shall--

(A) include a fraud alert in the file of that consumer, and also provide that alert

along with any credit score generated in using that file, for a period of not

less than 90 days, beginning on the date of such request, unless the

consumer or such representative requests that such fraud alert be removed

before the end of such period, and the agency has received appropriate

proof of the identity of the requester for such purpose; and

(B) refer the information regarding the fraud alert under this paragraph to each

of the other consumer reporting agencies described in section 603(p), in

accordance with procedures developed under section 621(f).

a fraud alert in the file of a consumer pursuant to this subsection, the consumer

reporting agency shall--

(A) disclose to the consumer that the consumer may request a free copy of the

file of the consumer pursuant to section 612(d); and

(B) provide to the consumer all disclosures required to be made under section

609, without charge to the consumer, not later than 3 business days after

any request described in subparagraph (A).

(b) Extended Alerts

behalf of or as a personal representative of a consumer, who submits an identity

theft report to a consumer reporting agency described in section 603(p) that

maintains a file on the consumer, if the agency has received appropriate proof of

the identity of the requester, the agency shall--

(A) include a fraud alert in the file of that consumer, and also provide that alert

along with any credit score generated in using that file, during the 7-year

period beginning on the date of such request, unless the consumer or such

representative requests that such fraud alert be removed before the end of

such period and the agency has received appropriate proof of the identity

of the requester for such purpose;

(B) during the 5-year period beginning on the date of such request, exclude the

consumer from any list of consumers prepared by the consumer reporting

agency and provided to any third party to offer credit or insurance to the

consumer as part of a transaction that was not initiated by the consumer,

unless the consumer or such representative requests that such exclusion be

rescinded before the end of such period; and

(C) refer the information regarding the extended fraud alert under this paragraph

to each of the other consumer reporting agencies described in section

603(p), in accordance with procedures developed under section 621(f).

a fraud alert in the file of a consumer pursuant to this subsection, the consumer

reporting agency shall--

(A) disclose to the consumer that the consumer may request 2 free copies of

the file of the consumer pursuant to section 612(d) during the 12-month

period beginning on the date on which the fraud alert was included in the

file; and

(B) provide to the consumer all disclosures required to be made under section

609, without charge to the consumer, not later than 3 business days after

any request described in subparagraph (A).

individual acting on behalf of or as a personal representative of an active duty

military consumer, a consumer reporting agency described in section 603(p) that

maintains a file on the active duty military consumer and has received appropriate

proof of the identity of the requester shall--

(1) include an active duty alert in the file of that active duty military consumer, and

also provide that alert along with any credit score generated in using that file,

during a period of not less than 12 months, or such longer period as the

Commission shall determine, by regulation, beginning on the date of the request,

unless the active duty military consumer or such representative requests that such

fraud alert be removed before the end of such period, and the agency has received

appropriate proof of the identity of the requester for such purpose;

(2) during the 2-year period beginning on the date of such request, exclude the active

duty military consumer from any list of consumers prepared by the consumer

reporting agency and provided to any third party to offer credit or insurance to the

consumer as part of a transaction that was not initiated by the consumer, unless

the consumer requests that such exclusion be rescinded before the end of such

period; and

(3) refer the information regarding the active duty alert to each of the other consumer

reporting agencies described in section 603(p), in accordance with procedures

developed under section 621(f).

establish policies and procedures to comply with this section, including procedures

that inform consumers of the availability of initial, extended, and active duty alerts

and procedures that allow consumers and active duty military consumers to request

initial, extended, or active duty alerts (as applicable) in a simple and easy manner,

including by telephone.

receives a referral of a fraud alert or active duty alert from another consumer

reporting agency pursuant to this section shall, as though the agency received the

request from the consumer directly, follow the procedures required under--

(1) paragraphs (1)(A) and (2) of subsection (a), in the case of a referral under

subsection (a)(1)(B);

(2) paragraphs (1)(A), (1)(B), and (2) of subsection (b), in the case of a referral under

subsection (b)(1)(C); and

(3) paragraphs (1) and (2) of subsection (c), in the case of a referral under subsection

(c)(3).

or active duty alert placed in the file of a consumer pursuant to this section by

another consumer reporting agency.

consumer contacts any consumer reporting agency that is not described in section

603(p) to communicate a suspicion that the consumer has been or is about to become

a victim of fraud or related crime, including identity theft, the agency shall provide

information to the consumer on how to contact the Commission and the consumer

reporting agencies described in section 603(p) to obtain more detailed information

and request alerts under this section.

(h) Limitations on Use of Information for Credit Extensions

(1) Requirements for initial and active duty alerts-

shall include information that notifies all prospective users of a consumer

report on the consumer to which the alert relates that the consumer does

not authorize the establishment of any new credit plan or extension of

credit, other than under an open-end credit plan (as defined in section

103(i)), in the name of the consumer, or issuance of an additional card on

an existing credit account requested by a consumer, or any increase in

credit limit on an existing credit account requested by a consumer, except

in accordance with subparagraph (B).

(B) Limitation on Users

initial fraud alert or an active duty alert in accordance with this section

may establish a new credit plan or extension of credit, other than under

an open-end credit plan (as defined in section 103(i)), in the name of

the consumer, or issue an additional card on an existing credit account

requested by a consumer, or grant any increase in credit limit on an

existing credit account requested by a consumer, unless the user

utilizes reasonable policies and procedures to form a reasonable belief

that the user knows the identity of the person making the request.

telephone number to be used for identity verification purposes, before

authorizing any new credit plan or extension described in clause (i) in

the name of such consumer, a user of such consumer report shall

contact the consumer using that telephone number or take reasonable

steps to verify the consumer's identity and confirm that the application

for a new credit plan is not the result of identity theft.

(2) Requirements for Extended Alerts

information that provides all prospective users of a consumer report

relating to a consumer with–

(i) notification that the consumer does not authorize the establishment of

any new credit plan or extension of credit described in clause (i), other

than under an open-end credit plan (as defined in section 103(i)), in the

name of the consumer, or issuance of an additional card on an existing

credit account requested by a consumer, or any increase in credit limit

on an existing credit account requested by a consumer, except in

accordance with subparagraph (B); and

(ii) a telephone number or other reasonable contact method designated by

the consumer.

credit score generated using the information in the file of a consumer that

includes an extended fraud alert in accordance with this section may

establish a new credit plan or extension of credit, other than under an

open-end credit plan (as defined in section 103(i)), in the name of the

consumer, or issue an additional card on an existing credit account

requested by a consumer, or any increase in credit limit on an existing

credit account requested by a consumer, unless the user contacts the

consumer in person or using the contact method described in subparagraph

(A)(ii) to confirm that the application for a new credit plan or increase in

credit limit, or request for an additional card is not the result of identity

theft.

shall block the reporting of any information in the file of a consumer that the

consumer identifies as information that resulted from an alleged identity theft, not

later than 4 business days after the date of receipt by such agency of--

(1) appropriate proof of the identity of the consumer;

(2) a copy of an identity theft report;

(3) the identification of such information by the consumer; and

(4) a statement by the consumer that the information is not information relating to

any transaction by the consumer.

information identified by the consumer under subsection (a)--

(1) that the information may be a result of identity theft;

(2) that an identity theft report has been filed;

(3) that a block has been requested under this section; and

(4) of the effective dates of the block.

(c) Authority to Decline or Rescind

any block, of information relating to a consumer under this section, if the

consumer reporting agency reasonably determines that--

(A) the information was blocked in error or a block was requested by the

consumer in error;

(B) the information was blocked, or a block was requested by the consumer,

on the basis of a material misrepresentation of fact by the consumer

relevant to the request to block; or

(C) the consumer obtained possession of goods, services, or money as a result

of the blocked transaction or transactions.

this subsection, the affected consumer shall be notified promptly, in the same

manner as consumers are notified of the reinsertion of information under section

611(a)(5)(B).

agency rescinds a block, the presence of information in the file of a consumer

prior to the blocking of such information is not evidence of whether the consumer

knew or should have known that the consumer obtained possession of any goods,

services, or money as a result of the block.

(d) Exception for Resellers

consumer reporting agency--

(A) is a reseller;

(B) is not, at the time of the request of the consumer under subsection (a),

otherwise furnishing or reselling a consumer report concerning the

information identified by the consumer; and

(C) informs the consumer, by any means, that the consumer may report the

identity theft to the Commission to obtain consumer information regarding

identity theft.

section, with regard to any request of a consumer under this section, shall be to

block the consumer report maintained by the consumer reporting agency from any

subsequent use, if--

(A) the consumer, in accordance with the provisions of subsection (a),

identifies, to a consumer reporting agency, information in the file of the

consumer that resulted from identity theft; and

(B) the consumer reporting agency is a reseller of the identified information.

promptly provide a notice to the consumer of the decision to block the file. Such

notice shall contain the name, address, and telephone number of each consumer

reporting agency from which the consumer information was obtained for resale.

check services company, acting as such, which issues authorizations for the purpose

of approving or processing negotiable instruments, electronic fund transfers, or

similar methods of payments, except that, beginning 4 business days after receipt of

information described in paragraphs (1) through (3) of subsection (a), a check

services company shall not report to a national consumer reporting agency described

in section 603(p), any information identified in the subject identity theft report as

resulting from identity theft.

shall be construed as requiring a consumer reporting agency to prevent a Federal,

State, or local law enforcement agency from accessing blocked information in a

consumer file to which the agency could otherwise obtain access under this title.

investigative consumer report on any consumer unless

(1) it is clearly and accurately disclosed to the consumer that an investigative

consumer report including information as to his character, general reputation,

personal characteristics and mode of living, whichever are applicable, may be

made, and such disclosure

(A) is made in a writing mailed, or otherwise delivered, to the consumer, not

later than three days after the date on which the report was first requested,

and

(B) includes a statement informing the consumer of his right to request the

additional disclosures provided for under subsection (b) of this section and

the written summary of the rights of the consumer prepared pursuant to

section 609(c) [§ 1681g]; and

(2) the person certifies or has certified to the consumer reporting agency that

(A) the person has made the disclosures to the consumer required by paragraph

(1); and

(B) the person will comply with subsection (b).

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.

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

investigative consumer report unless the agency has received a certification under

subsection (a)(2) from the person who requested the report.

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.

[§ 1681k], a consumer reporting agency shall not furnish an investigative consumer

report that includes information that is a matter of public record and that

relates to an arrest, indictment, conviction, civil judicial action, tax lien, or outstanding

judgment, unless the agency has verified the accuracy of the information

during the 30-day period ending on the date on which the report is furnished.

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.

reasonable procedures designed to avoid violations of section 605 [§ 1681c] and to limit

the furnishing of consumer reports to the purposes listed under section 604 [§ 1681b] of

this title. These procedures shall require that prospective users of the information identify

themselves, certify the purposes for which the information is sought, and certify that

the information will be used for no other purpose. Every consumer reporting agency

shall make a reasonable effort to verify the identity of a new prospective user and the

uses certified by such prospective user prior to furnishing such user a consumer report.

No consumer reporting agency may furnish a consumer report to any person if it has

reasonable grounds for believing that the consumer report will not be used for a purpose

listed in section 604 [§ 1681b] of this title.

report it shall follow reasonable procedures to assure maximum possible accuracy of

the information concerning the individual about whom the report relates.

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

(A) who regularly and in the ordinary course of business furnishes information

to the agency with respect to any consumer; or

(B) to whom a consumer report is provided by the agency;

a notice of such person's responsibilities under this title.

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

the report (or any information in the report) unless the person discloses to the

consumer reporting agency that originally furnishes the report

(A) the identity of the end-user of the report (or information); and

(B) each permissible purpose under section 604 [§ 1681b] for which the report

is furnished to the end-user of the report (or information).

report for purposes of reselling the report (or any information in the report) shall

(A) establish and comply with reasonable procedures designed to ensure that

the report (or information) is resold by the person only for a purpose for

which the report may be furnished under section 604 [§ 1681b], including

by requiring that each person to which the report (or information) is resold

and that resells or provides the report (or information) to any other person

(i) identifies each end user of the resold report (or information);

(ii) certifies each purpose for which the report (or information) will be

used; and

(iii) certifies that the report (or information) will be used for no other

purpose; and

(B) before reselling the report, make reasonable efforts to verify the

identifications and certifications made under subparagraph (A).

paragraph (1) or (2), a person who procures a consumer report for purposes of

reselling the report (or any information in the report) shall not disclose the identity of

the end-user of the report under paragraph (1) or (2) if--

(A) the end user is an agency or department of the United States Government

which procures the report from the person for purposes of determining the

eligibility of the consumer concerned to receive access or continued access to

classified information (as defined in section 604(b)(4)(E)(i)); and

(B) the agency or department certifies in writing to the person reselling the report

that nondisclosure is necessary to protect classified information or the safety

of persons employed by or contracting with, or undergoing investigation for

work or contracting with the agency or department.

Notwithstanding the provisions of section 604 [§ 1681b] of this title, a consumer

reporting agency may furnish identifying information respecting any consumer, limited to

his name, address, former addresses, places of employment, or former places of

employment, to a governmental agency.

upon request, and subject to 610(a)(1) [§ 1681h], clearly and accurately disclose to

the consumer:

(1) All information in the consumer's file at the time of the request except that--

(A) if the consumer to whom the file relates requests that the first 5 digits of

the social security number (or similar identification number) of the

consumer not be included in the disclosure and the consumer reporting

agency has received appropriate proof of the identity of the requester, the

consumer reporting agency shall so truncate such number in such

disclosure; and

(B) nothing in this paragraph shall be construed to require a consumer

reporting agency to disclose to a consumer any information concerning

credit scores or any other risk scores or predictors relating to the

consumer.

(2) The sources of the information; except that the sources of information acquired

solely for use in preparing an investigative consumer report and actually use for

no other purpose need not be disclosed: Provided, That in the event an action is

brought under this title, such sources shall be available to the plaintiff under

appropriate discovery procedures in the court in which the action is brought.

(3)(A) Identification of each person (including each end-user identified under

section 607(e)(1) [§ 1681e]) that procured a consumer report

(i) for employment purposes, during the 2-year period preceding the date

on which the request is made; or

(ii) for any other purpose, during the 1-year period preceding the date on

which the request is made.

(B) An identification of a person under subparagraph (A) shall include

(i) the name of the person or, if applicable, the trade name (written in full)

under which such person conducts business; and

(ii) upon request of the consumer, the address and telephone number of the

person.

(C) Subparagraph (A) does not apply if--

(i) the end user is an agency or department of the United States

Government that procures the report from the person for purposes of

determining the eligibility of the consumer to whom the report relates

to receive access or continued access to classified information (as

defined in section 604(b)(4)(E)(i)); and

(ii) the head of the agency or department makes a written finding as

prescribed under section 604(b)(4)(A).

(4) The dates, original payees, and amounts of any checks upon which is based any

adverse characterization of the consumer, included in the file at the time of the

disclosure.

(5) A record of all inquiries received by the agency during the 1-year period

preceding the request that identified the consumer in connection with a credit or

insurance transaction that was not initiated by the consumer.

(6) If the consumer requests the credit file and not the credit score, a statement that the

consumer may request and obtain a credit score.

disclosure of sources of information and the recipients of consumer reports do not

apply to information received or consumer reports furnished prior to the effective

date of this title except to the extent that the matter involved is contained in the files

of the consumer reporting agency on that date.

(c) Summary of Rights to Obtain and Dispute Information in Consumer Reports and to

Obtain Credit Scores

(1) Commission Summary of Rights Required

of consumers under this title.

(A) shall include a description of–

(i) the right of a consumer to obtain a copy of a consumer report under

subsection (a) from each consumer reporting agency;

(ii) the frequency and circumstances under which a consumer is entitled to

receive a consumer report without charge under section 612;

(iii) the right of a consumer to dispute information in the file of the

consumer under section 611;

(iv) the right of a consumer to obtain a credit score from a consumer

reporting agency, and a description of how to obtain a credit score;

(v) the method by which a consumer can contact, and obtain a consumer

report from, a consumer reporting agency without charge, as provided

in the regulations of the Commission prescribed under section 211(c)

of the Fair and Accurate Credit Transactions Act of 2003; and

(vi) the method by which a consumer can contact, and obtain a consumer

report from, a consumer reporting agency described in section 603(w),

as provided in the regulations of the Commission prescribed under

section 612(a)(1)(C).

(i) actively publicize the availability of the summary of rights prepared

under this paragraph;

(ii) conspicuously post on its Internet website the availability of such

summary of rights; and

(iii) promptly make such summary of rights available to consumers, on request.

reporting agency shall provide to a consumer, with each written disclosure by the

agency to the consumer under this section--

(A) the summary of rights prepared by the Commission under paragraph (1);

(B) in the case of a consumer reporting agency described in section 603(p), a

toll-free telephone number established by the agency, at which personnel

are accessible to consumers during normal business hours;

(C) a list of all Federal agencies responsible for enforcing any provision of this

title, and the address and any appropriate phone number of each such agency,

in a form that will assist the consumer in selecting the appropriate agency;

(D) a statement that the consumer may have additional rights under State law,

and that the consumer may wish to contact a State or local consumer

protection agency or a State attorney general (or the equivalent thereof) to

learn of those rights; and

(E) a statement that a consumer reporting agency is not required to remove

accurate derogatory information from the file of a consumer, unless the

information is outdated under section 605 or cannot be verified.

(d) Summary of Rights of Identity Theft Victims

the National Credit Union Administration, shall prepare a model summary of the

rights of consumers under this title with respect to the procedures for remedying the

effects of fraud or identity theft involving credit, an electronic fund transfer, or an

account or transaction at or with a financial institution or other creditor.

which the model summary of rights is prescribed in final form by the Commission

pursuant to paragraph (1), if any consumer contacts a consumer reporting agency

and expresses a belief that the consumer is a victim of fraud or identity theft

involving credit, an electronic fund transfer, or an account or transaction at or

with a financial institution or other creditor, the consumer reporting agency shall,

in addition to any other action that the agency may take, provide the consumer

with a summary of rights that contains all of the information required by the

Commission under paragraph (1), and information on how to contact the

Commission to obtain more detailed information.

(e) Information Available to Victims

identity theft, not later than 30 days after the date of receipt of a request from a

victim in accordance with paragraph (3), and subject to verification of the identity of

the victim and the claim of identity theft in accordance with paragraph (2), a business

entity that has provided credit to, provided for consideration products, goods, or

services to, accepted payment from, or otherwise entered into a commercial

transaction for consideration with, a person who has allegedly made unauthorized

use of the means of identification of the victim, shall provide a copy of application

and business transaction records in the control of the business entity, whether

maintained by the business entity or by another person on behalf of the business

entity, evidencing any transaction alleged to be a result of identity theft to--

(A) the victim;

(B) any Federal, State, or local government law enforcement agency or officer

specified by the victim in such a request; or

(C) any law enforcement agency investigating the identity theft and authorized

by the victim to take receipt of records provided under this subsection.

under paragraph (1), unless the business entity, at its discretion, otherwise

has a high degree of confidence that it knows the identity of the victim making a

request under paragraph (1), the victim shall provide to the business entity--

(A) as proof of positive identification of the victim, at the election of the

business entity–

(i) the presentation of a government-issued identification card;

(ii) personally identifying information of the same type as was provided to

the business entity by the unauthorized person; or

(iii) personally identifying information that the business entity typically

requests from new applicants or for new transactions, at the time of the

victim's request for information, including any documentation

described in clauses (i) and (ii); and

(B) as proof of a claim of identity theft, at the election of the business entity--

(i) a copy of a police report evidencing the claim of the victim of identity

theft; and

(ii) a properly completed--

(I) copy of a standardized affidavit of identity theft developed and

made available by the Commission; or

(II) an affidavit of fact that is acceptable to the business entity for that

purpose.

(A) be in writing;

(B) be mailed to an address specified by the business entity, if any; and

(C) if asked by the business entity, include relevant information about any

transaction alleged to be a result of identity theft to facilitate compliance

with this section including–

(i) if known by the victim (or if readily obtainable by the victim), the date

of the application or transaction; and

(ii) if known by the victim (or if readily obtainable by the victim), any

other identifying information such as an account or transaction

number.

shall be so provided without charge.

provide information under paragraph (1) if, in the exercise of good faith, the

business entity determines that--

(A) this subsection does not require disclosure of the information;

(B) after reviewing the information provided pursuant to paragraph (2), the

business entity does not have a high degree of confidence in knowing the

true identity of the individual requesting the information;

(C) the request for the information is based on a misrepresentation of fact by

the individual requesting the information relevant to the request for

information; or

(D) the information requested is Internet navigational data or similar

information about a person's visit to a website or online service.

not apply to any violation of this subsection.

any provision of Federal, State, or other law for disclosure, made in good faith

pursuant to this subsection.

on the part of a business entity to obtain, retain, or maintain information or

records that are not otherwise required to be obtained, retained, or maintained in

the ordinary course of its business or under other applicable law.

(9) Rule of Construction

prohibiting the disclosure of financial information by a business entity to

third parties shall be used to deny disclosure of information to the victim

under this subsection.

subsection permits a business entity to disclose information, including

information to law enforcement under subparagraphs (B) and (C) of

paragraph (1), that the business entity is otherwise prohibited from

disclosing under any other applicable provision of Federal or State law.

affirmative defense (which the defendant must establish by a preponderance of

the evidence) for a business entity to file an affidavit or answer stating that--

(A) the business entity has made a reasonably diligent search of its available

business records; and

(B) the records requested under this subsection do not exist or are not

reasonably available.

consumer whose means of identification or financial information has been used or

transferred (or has been alleged to have been used or transferred) without the

authority of that consumer, with the intent to commit, or to aid or abet, an identity

theft or a similar crime.

enactment of this subsection.

subsection, the Comptroller General of the United States shall submit a report to

Congress assessing the effectiveness of this provision.

(f) Disclosure of Credit Scores

reporting agency shall supply to the consumer a statement indicating that the

information and credit scoring model may be different than the credit score that

may be used by the lender, and a notice which shall include--

(A) the current credit score of the consumer or the most recent credit score of

the consumer that was previously calculated by the credit reporting agency

for a purpose related to the extension of credit;

(B) the range of possible credit scores under the model used;

(C) all of the key factors that adversely affected the credit score of the

consumer in the model used, the total number of which shall not exceed 4,

subject to paragraph (9);

(D) the date on which the credit score was created; and

(E) the name of the person or entity that provided the credit score or credit file

upon which the credit score was created.

(A) The term “credit score” --

(i) means a numerical value or a categorization derived from a statistical

tool or modeling system used by a person who makes or arranges a loan

to predict the likelihood of certain credit behaviors, including default

(and the numerical value or the categorization derived from such analysis

may also be referred to as a “risk predictor” or “risk score”); and

(ii) does not include--

(I) any mortgage score or rating of an automated underwriting system

that considers one or more factors in addition to credit information,

including the loan to value ratio, the amount of down payment, or the

financial assets of a consumer; or

(II) any other elements of the underwriting process or underwriting decision.

(B) The term “key factors” means all relevant elements or reasons adversely

affecting the credit score for the particular individual, listed in the order of

their importance based on their effect on the credit score.

shall be provided in the same timeframe and manner as the information described

in subsection (a).

compel a consumer reporting agency to develop or disclose a score if the agency

does not--

(A) distribute scores that are used in connection with residential real property

loans; or

(B) develop scores that assist credit providers in understanding the general

credit behavior of a consumer and predicting the future credit behavior of

the consumer.

(5) Applicability to credit scores developed by another person.

reporting agency that distributes credit scores developed by another person

or entity to provide a further explanation of them, or to process a dispute

arising pursuant to section 611, except that the consumer reporting agency

shall provide the consumer with the name and address and website for

contacting the person or entity who developed the score or developed the

methodology of the score.

that develops or modifies scores that are developed by another person or

entity.

to require a consumer reporting agency to maintain credit scores in its files.

reporting agency shall--

(A) supply the consumer with a credit score that is derived from a credit

scoring model that is widely distributed to users by that consumer

reporting agency in connection with residential real property loans or with

a credit score that assists the consumer in understanding the credit scoring

assessment of the credit behavior of the consumer and predictions about

the future credit behavior of the consumer; and

(B) a statement indicating that the information and credit scoring model may

be different than that used by the lender.

reasonable fee, as determined by the Commission, for providing the information

required under this subsection.

score of a consumer consists of the number of enquiries made with respect to a

consumer report, that factor shall be included in the disclosure pursuant to

paragraph (1)(C) without regard to the numerical limitation in such paragraph.

(g) Disclosure of Credit Scores by Certain Mortgage Lenders

credit score, as defined in subsection (f), in connection with an application

initiated or sought by a consumer for a closed end loan or the establishment of an

open end loan for a consumer purpose that is secured by 1 to 4 units of residential

real property (hereafter in this subsection referred to as the “lender”) shall provide

the following to the consumer as soon as reasonably practicable:

(A) Information Required under Subsection (f)

was obtained from a consumer reporting agency or was developed and

used by the user of the information.

to it by a third party that provided the credit score or scores, a lender is

only required to provide the notice contained in subparagraph (D).

(B) Disclosures in Case of Automated Underwriting System

underwriting system to underwrite a loan, that person may

satisfy the obligation to provide a credit score by disclosing a credit

score and associated key factors supplied by a consumer reporting

agency.

generated by an automated underwriting system used by an enterprise,

and that score is disclosed to the person, the score shall be disclosed to

the consumer consistent with subparagraph (C).

has the same meaning as in paragraph (6) of section 1303 of the

Federal Housing Enterprises Financial Safety and Soundness Act of

1992.

A person that is subject to the provisions of this subsection and that uses a

credit score, other than a credit score provided by a consumer reporting

agency, may satisfy the obligation to provide a credit score by disclosing a

credit score and associated key factors supplied by a consumer reporting

agency.

include the name, address, and telephone number of each consumer

reporting agency providing a credit score that was used:

any person to–

(i) explain the information provided pursuant to subsection (f);

(ii) disclose any information other than a credit score or key factors, as

defined in subsection (f);

(iii) disclose any credit score or related information obtained by the user

after a loan has closed;

(iv) provide more than 1 disclosure per loan transaction; or

(v) provide the disclosure required by this subsection when another person

has made the disclosure to the consumer for that loan transaction.

(F) No Obligation for Content

shall be limited solely to providing a copy of the information that was

received from the consumer reporting agency.

content of that information or for the omission of any information

within the report provided by the consumer reporting agency.

“person” does not include an enterprise (as defined in paragraph (6) of section

1303 of the Federal Housing Enterprises Financial Safety and Soundness Act

of 1992).

(2) Prohibition on Disclosure Clauses Null and Void

score by a person who makes or arranges loans or a consumer reporting agency

is void.

under any contractual provision for disclosure of a credit score pursuant to this

subsection.

(a) In General

condition of making the disclosures required under section 609 [§ 1681g], that

the consumer furnish proper identification.

required to be made under section 609 [§ 1681g] shall be provided under that

section in writing.

(b) Other Forms of Disclosure

the disclosures required under 609 [§ 1681g]

(A) other than in writing; and

(B) in such form as may be

(i) specified by the consumer in accordance with paragraph (2); and

(ii) available from the agency.

section 609 [§ 1681g] shall be made

(A) in person, upon the appearance of the consumer at the place of business of

the consumer reporting agency where disclosures are regularly provided,

during normal business hours, and on reasonable notice;

(B) by telephone, if the consumer has made a written request for disclosure by

telephone;

(C) by electronic means, if available from the agency; or

(D) by any other reasonable means that is available from the agency.

explain to the consumer any information furnished to him pursuant to section 609

[§ 1681g] of this title.

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.

1681o] of this title, no consumer may bring any action or proceeding in the nature of

defamation, invasion of privacy, or negligence with respect to the reporting of

information against any consumer reporting agency, any user of information, or any

person who furnishes information to a consumer reporting agency, based on

information disclosed pursuant to section 609, 610, or 615 [§§ 1681g, 1681h, or

1681m] of this title or based on information disclosed by a user of a consumer report

to or for a consumer against whom the user has taken adverse action, based in whole

or in part on the report, except as to false information furnished with malice or willful

intent to injure such consumer.

(a) Reinvestigations of Disputed Information

(1) Reinvestigation Required

item of information contained in a consumer's file at a consumer reporting

agency is disputed by the consumer and the consumer notifies the agency

directly, or indirectly through a reseller, of such dispute, the agency shall,

free of charge, conduct a reasonable reinvestigation to determine whether

the disputed information is inaccurate and record the current status of the

disputed information, or delete the item from the file in accordance with

paragraph (5), before the end of the 30-day period beginning on the date on

which the agency receives the notice of the dispute from the consumer or

reseller.

(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.

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

the date on which a consumer reporting agency receives notice of a dispute

from any consumer or a reseller in accordance with paragraph (1), the

agency shall provide notification of the dispute to any person who provided

any item of information in dispute, at the address and in the manner

established with the person. The notice shall include all relevant

information regarding the dispute that the agency has received from the

consumer or reseller.

promptly provide to the person who provided the information in dispute all

relevant information regarding the dispute that is received by the agency

from the consumer or the reseller after the period referred to in subparagraph

(A) and before the end of the period referred to in paragraph (1)(A).

(3) Determination That Dispute Is Frivolous or Irrelevant

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.

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.

(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.

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

information disputed by a consumer, an item of the information is found to

be inaccurate or incomplete or cannot be verified, the consumer reporting

agency shall–

(i) promptly delete that item of information from the file of the consumer,

or modify that item of information, as appropriate, based on the results

of the reinvestigation; and

(ii) promptly notify the furnisher of that information that the information

has been modified or deleted from the file of the consumer.

(B) Requirements Relating to Reinsertion of Previously Deleted Material

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.

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.

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.

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)).

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

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.

consumer reporting agency shall provide to a consumer in writing before

the expiration of the 5-day period referred to in subparagraph (A)

(i) a statement that the reinvestigation is completed;

(ii) a consumer report that is based upon the consumer's file as that file

is revised as a result of the reinvestigation;

(iii) a notice that, if requested by the consumer, a description of the

procedure used to determine the accuracy and completeness of the

information shall be provided to the consumer by the agency,

including the business name and address of any furnisher of

information contacted in connection with such information and the

telephone number of such furnisher, if reasonably available;

(iv) a notice that the consumer has the right to add a statement to the

consumer's file disputing the accuracy or completeness of the

information; and

(v) a notice that the consumer has the right to request under subsection

(d) that the consumer reporting agency furnish notifications under

that subsection.

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.

consumer's file at a consumer reporting agency is resolved in accordance with

paragraph (5)(A) by the deletion of the disputed information by not later than 3

business days after the date on which the agency receives notice of the dispute

from the consumer in accordance with paragraph (1)(A), then the agency shall

not be required to comply with paragraphs (2), (6), and (7) with respect to that

dispute if the agency

(A) provides prompt notice of the deletion to the consumer by telephone;

(B) includes in that notice, or in a written notice that accompanies a confirmation

and consumer report provided in accordance with subparagraph (C), a

statement of the consumer's right to request under subsection (d) that the

agency furnish notifications under that subsection; and

(C) provides written confirmation of the deletion and a copy of a consumer

report on the consumer that is based on the consumer's file after the

deletion, not later than 5 business days after making the deletion.

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.

of a dispute is filed, unless there is reasonable grounds to believe that it is frivolous or

irrelevant, the consumer reporting agency shall, in any subsequent report containing

the information in question, clearly note that it is disputed by the consumer and

provide either the consumer's statement or a clear and accurate codification or

summary thereof.

which is found to be inaccurate or whose accuracy can no longer be verified or any

notation as to disputed information, the consumer reporting agency shall, at the

request of the consumer, furnish notification that the item has been deleted or the

statement, codification or summary pursuant to subsection (b) or (c) of this section to

any person specifically designated by the consumer who has within two years prior

thereto received a consumer report for employment purposes, or within six months

prior thereto received a consumer report for any other purpose, which contained the

deleted or disputed information.

(e) Treatment of Complaints and Report to Congress

(A) compile all complaints that it receives that a file of a consumer that is

maintained by a consumer reporting agency described in section 603(p)

contains incomplete or inaccurate information, with respect to which, the

consumer appears to have disputed the completeness or accuracy with the

consumer reporting agency or otherwise utilized the procedures provided

by subsection (a); and

(B) transmit each such complaint to each consumer reporting agency involved.

investigative authority under the Federal Trade Commission Act shall not be

subject to paragraph (1).

603(p) that receives a complaint transmitted by the Commission pursuant to

paragraph (1) shall--

(A) review each such complaint to determine whether all legal obligations

imposed on the consumer reporting agency under this title (including any

obligation imposed by an applicable court or administrative order) have

been met with respect to the subject matter of the complaint;

(B) provide reports on a regular basis to the Commission regarding the

determinations of and actions taken by the consumer reporting agency, if

any, in connection with its review of such complaints; and

(C) maintain, for a reasonable time period, records regarding the disposition of

each such complaint that is sufficient to demonstrate compliance with this

subsection.

to implement this subsection.

Housing, and Urban Affairs of the Senate and the Committee on Financial

Services of the House of Representatives an annual report regarding information

gathered by the Commission under this subsection.'.

(f) Reinvestigation Requirement Applicable to Resellers

(2), a reseller shall be exempt from the requirements of this section.

from a consumer of a dispute concerning the completeness or accuracy of any item

of information contained in a consumer report on such consumer produced by the

reseller, the reseller shall, within 5 business days of receiving the notice, and free

of charge–

(A) determine whether the item of information is incomplete or inaccurate as a

result of an act or omission of the reseller; and

(B) if (i) the reseller determines that the item of information is incomplete or

inaccurate as a result of an act or omission of the reseller, not later than 20

days after receiving the notice, correct the information in the consumer

report or delete it; or

(ii) if the reseller determines that the item of information is not incomplete or

inaccurate as a result of an act or omission of the reseller, convey the notice of

the dispute, together with all relevant information provided by the consumer, to

each consumer reporting agency that provided the reseller with the information

that is the subject of the dispute, using an address or a notification mechanism

specified by the consumer reporting agency for such notices.

completion of a reinvestigation under this section of a dispute concerning the completeness

or accuracy of any information in the file of a consumer by a consumer reporting

agency that received notice of the dispute from a reseller under paragraph (2)--

(A) the notice by the consumer reporting agency under paragraph (6), (7), or (8) of

subsection (a) shall be provided to the reseller in lieu of the consumer; and

(B) the reseller shall immediately reconvey such notice to the consumer, including any

notice of a deletion by telephone in the manner required under paragraph (8)(A).

a reseller from conducting a reinvestigation of a consumer dispute directly.

(a) Free Annual Disclosure

(1) Nationwide Consumer Reporting Agencies

(w) of section 603 shall make all disclosures pursuant to section 609 once

during any 12-month period upon request of the consumer and without charge

to the consumer.

reporting agency described in section 603(p) only if the request from the

consumer is made using the centralized source established for such purpose in

accordance with section 211(c) of the Fair and Accurate Credit Transactions

Act of 2003.

(C) Nationwide Specialty Consumer Reporting Agency

consumer reporting agency described in section 603(w) to require the establishment

of a streamlined process for consumers to request consumer reports

under subparagraph (A), which shall include, at a minimum, the establishment

by each such agency of a toll-free telephone number for such requests.

Commission shall consider–

(I) the significant demands that may be placed on consumer reporting

agencies in providing such consumer reports;

(II) appropriate means to ensure that consumer reporting agencies can

satisfactorily meet those demands, including the efficacy of a

system of staggering the availability to consumers of such

consumer reports; and

(III) the ease by which consumers should be able to contact consumer

reporting agencies with respect to access to such consumer reports.

by this subparagraph in final form not later than 6 months after the date

of enactment of the Fair and Accurate Credit Transactions Act of 2003.

under this subparagraph shall establish an effective date by which each

nationwide specialty consumer reporting agency (as defined in section

603(w)) shall be required to comply with subsection (a), which

effective date--

(I) shall be established after consideration of the ability of each

nationwide specialty consumer reporting agency to comply with

subsection (a); and

(II) shall be not later than 6 months after the date on which such

regulations are issued in final form (or such additional period not to

exceed 3 months, as the Commission determines appropriate).

paragraph (1) not later than 15 days after the date on which the request is received

under paragraph (1).

a reinvestigation under that section by a consumer reporting agency upon a

request of a consumer that is made after receiving a consumer report under this

subsection shall be completed not later than 45 days after the date on which the

request is received.

consumer reporting agency that has not been furnishing consumer reports to third

parties on a continuing basis during the 12-month period preceding a request

under paragraph (1), with respect to consumers residing nationwide.

maintains a file on a consumer shall make all disclosures pursuant to section 609

[§ 1681g] without charge to the consumer if, not later than 60 days after receipt by

such consumer of a notification pursuant to section 615 [§ 1681m], or of a

notification from a debt collection agency affiliated with that consumer reporting

agency stating that the consumer's credit rating may be or has been adversely

affected, the consumer makes a request under section 609 [§ 1681g].

a consumer reporting agency shall make all disclosures pursuant to section 609

[§ 1681g] once during any 12-month period without charge to that consumer if the

consumer certifies in writing that the consumer

(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.

consumer reporting agency described in section 603(p) shall make all disclosures

pursuant to section 609 without charge to the consumer, as provided in subsections

(a)(2) and (b)(2) of section 605A, as applicable.

on a consumer for providing any notification required by this title or making any

disclosure required by this title, except as authorized by subsection (f).

(f) Reasonable Charges Allowed for Certain Disclosures

covered by any of subsections (a) through (d), a consumer reporting agency may

impose a reasonable charge on a consumer

(A) for making a disclosure to the consumer pursuant to section 609 [§ 1681g],

which charge

(ii) shall be indicated to the consumer before making the disclosure; and

(B) for furnishing, pursuant to 611(d) [§ 1681i], following a reinvestigation

under section 611(a) [§ 1681i], a statement, codification, or summary to a

person designated by the consumer under that section after the 30-day

period beginning on the date of notification of the consumer under

paragraph (6) or (8) of section 611(a) [§ 1681i] with respect to the

reinvestigation, which charge

(i) shall not exceed the charge that the agency would impose on each

designated recipient for a consumer report; and

(ii) shall be indicated to the consumer before furnishing such information.

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.

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.

of an agency or department of the United States Government that seeks to obtain and use

a consumer report for employment purposes, if the head of the agency or department

makes a written finding as prescribed under section 604(b)(4)(A).

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.

based in whole or in part on any information contained in a consumer report, the

person shall

(1) provide oral, written, or electronic notice of the adverse action to the consumer;

(2) provide to the consumer orally, in writing, or electronically

(A) the name, address, and telephone number of the consumer reporting

agency (including a toll-free telephone number established by the agency

if the agency compiles and maintains files on consumers on a nationwide

basis) that furnished the report to the person; and

(B) a statement that the consumer reporting agency did not make the decision

to take the adverse action and is unable to provide the consumer the

specific reasons why the adverse action was taken; and

(3) provide to the consumer an oral, written, or electronic notice of the consumer's

right

(A) to obtain, under section 612 [§ 1681j], a free copy of a consumer report on

the consumer from the consumer reporting agency referred to in paragraph

(2), which notice shall include an indication of the 60-day period under

that section for obtaining such a copy; and

(B) to dispute, under section 611 [§ 1681i], with a consumer reporting agency

the accuracy or completeness of any information in a consumer report

furnished by the agency.

(b) Adverse Action Based on Information Obtained from Third Parties Other than

Consumer Reporting Agencies

involving a consumer is denied or the charge for such credit is increased either

wholly or partly because of information obtained from a person other than a

consumer reporting agency bearing upon the consumer's credit worthiness, credit

standing, credit capacity, character, general reputation, personal characteristics, or

mode of living, the user of such information shall, within a reasonable period of

time, upon the consumer's written request for the reasons for such adverse action

received within sixty days after learning of such adverse action, disclose the

nature of the information to the consumer. The user of such information shall

clearly and accurately disclose to the consumer his right to make such written

request at the time such adverse action is communicated to the consumer.

(2) Duties of Person Taking Certain Actions Based on Information Provided by

Affiliate

(B) 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.

action described in section 603(k)(1)(A) [§ 1681a], taken in connection

with a transaction initiated by the consumer, or any adverse action

described in clause (i) or (ii) of section 603(k)(1)(B) [§ 1681a].

(i) except as provided in clause (ii), is information that

(I) is furnished to the person taking the action by a person related by

common ownership or affiliated by common corporate control to

the person taking the action; and

(II) bears on the credit worthiness, credit standing, credit capacity,

character, general reputation, personal characteristics, or mode of

living of the consumer; and

(ii) does not include

(I) information solely as to transactions or experiences between the

consumer and the person furnishing the information; or

(II) information in a consumer report.

violation of this section if he shows by a preponderance of the evidence that at the

time of the alleged violation he maintained reasonable procedures to assure

compliance with the provisions of this section.

(d) Duties of Users Making Written Credit or Insurance Solicitations on the Basis of

Information Contained in Consumer Files

with any credit or insurance transaction that is not initiated by the consumer,

that is provided to that person under section 604(c)(1)(B) [§ 1681b], shall provide

with each written solicitation made to the consumer regarding the transaction a

clear and conspicuous statement that

(A) information contained in the consumer's consumer report was used in

connection with the transaction;

(B) the consumer received the offer of credit or insurance because the

consumer satisfied the criteria for credit worthiness or insurability under

which the consumer was selected for the offer;

(C) if applicable, the credit or insurance may not be extended if, after the

consumer responds to the offer, the consumer does not meet the criteria

used to select the consumer for the offer or any applicable criteria bearing

on credit worthiness or insurability or does not furnish any required

collateral;

(D) the consumer has a right to prohibit information contained in the

consumer's file with any consumer reporting agency from being used in

connection with any credit or insurance transaction that is not initiated by

the consumer; and

(E) the consumer may exercise the right referred to in subparagraph (D) by

notifying a notification system established under section 604(e) [§ 1681b].

(1) shall--

(A) include the address and toll-free telephone number of the appropriate

notification system established under section 604(e); and

(B) be presented in such format and in such type size and manner as to be

simple and easy to understand, as established by the Commission, by rule,

in consultation with the Federal banking agencies and the National Credit

Union Administration.

a consumer under a credit or insurance transaction described in paragraph (1)

shall maintain on file the criteria used to select the consumer to receive the offer,

all criteria bearing on credit worthiness or insurability, as applicable, that are the

basis for determining whether or not to extend credit or insurance pursuant to the

offer, and any requirement for the furnishing of collateral as a condition of the

extension of credit or insurance, until the expiration of the 3-year period

beginning on the date on which the offer is made to the consumer.

State agency to enforce a prohibition against unfair or deceptive acts or practices,

including the making of false or misleading statements in connection with a credit

or insurance transaction that is not initiated by the consumer.

(e) Red Flag Guidelines and Regulations Required

Administration, and the Commission shall jointly, with respect to the entities that

are subject to their respective enforcement authority under section 621–

(A) establish and maintain guidelines for use by each financial institution and

each creditor regarding identity theft with respect to account holders at, or

customers of, such entities, and update such guidelines as often as

necessary;

(B) prescribe regulations requiring each financial institution and each creditor

to establish reasonable policies and procedures for implementing the

guidelines established pursuant to subparagraph (A), to identify possible

risks to account holders or customers or to the safety and soundness of the

institution or customers; and

(C) prescribe regulations applicable to card issuers to ensure that, if a card

issuer receives notification of a change of address for an existing account,

and within a short period of time (during at least the first 30 days after

such notification is received) receives a request for an additional or

replacement card for the same account, the card issuer may not issue the

additional or replacement card, unless the card issuer, in accordance with

reasonable policies and procedures--

(i) notifies the cardholder of the request at the former address of the

cardholder and provides to the cardholder a means of promptly

reporting incorrect address changes;

(ii) notifies the cardholder of the request by such other means of communication

as the cardholder and the card issuer previously agreed to; or

(iii) uses other means of assessing the validity of the change of address, in

accordance with reasonable policies and procedures established by the

card issuer in accordance with the regulations prescribed under

subparagraph (B).

(2) Criteria

agencies described in paragraph (1) shall identify patterns, practices, and

specific forms of activity that indicate the possible existence of identity

theft.

(1)(A), the agencies described in paragraph (1) shall consider including

reasonable guidelines providing that when a transaction occurs with

respect to a credit or deposit account that has been inactive for more than 2

years, the creditor or financial institution shall follow reasonable policies

and procedures that provide for notice to be given to a consumer in a

manner reasonably designed to reduce the likelihood of identity theft with

respect to such account.

paragraph (1) shall not be inconsistent with the policies and procedures required

under section 5318(l) of title 31, United States Code.

(f) Prohibition on Sale or Transfer of Debt Caused by Identity Theft

a debt that such person has been notified under section 605B has resulted from

identity theft.

collecting a debt described in paragraph (1) after the date of a notification under

paragraph (1).

(A) the repurchase of a debt in any case in which the assignee of the debt

requires such repurchase because the debt has resulted from identity theft;

(B) the securitization of a debt or the pledging of a portfolio of debt as

collateral in connection with a borrowing; or

(C) the transfer of debt as a result of a merger, acquisition, purchase and

assumption transaction, or transfer of substantially all of the assets of an

entity.

collector (as that term is defined in title VIII) on behalf of a third party that is a

creditor or other user of a consumer report is notified that any information relating to

a debt that the person is attempting to collect may be fraudulent or may be the result

of identity theft, that person shall--

(1) notify the third party that the information may be fraudulent or may be the result

of identity theft; and

(2) upon request of the consumer to whom the debt purportedly relates, provide to the

consumer all information to which the consumer would otherwise be entitled if

the consumer were not a victim of identity theft, but wished to dispute the debt

under provisions of law applicable to that person.

(h) Duties of Users in Certain Credit Transactions

uses a consumer report in connection with an application for, or a grant,

extension, or other provision of, credit on material terms that are materially less

favorable than the most favorable terms available to a substantial proportion of

consumers from or through that person, based in whole or in part on a consumer

report, the person shall provide an oral, written, or electronic notice to the

consumer in the form and manner required by regulations prescribed in

accordance with this subsection.

an application for, or a grant, extension, or other provision of, credit or the time of

communication of an approval of an application for, or grant, extension, or other

provision of, credit, except as provided in the regulations prescribed under

paragraph (6).

(A) the consumer applied for specific material terms and was granted those

terms, unless those terms were initially specified by the person after the

transaction was initiated by the consumer and after the person obtained a

consumer report; or

(B) the person has provided or will provide a notice to the consumer under

subsection (a) in connection with the transaction.

subsection (a) cannot meet that requirement by providing a notice under this

subsection.

(A) include a statement informing the consumer that the terms offered to the

consumer are set based on information from a consumer report;

(B) identify the consumer reporting agency furnishing the report;

(C) include a statement informing the consumer that the consumer may obtain

a copy of a consumer report from that consumer reporting agency without

charge; and

(D) include the contact information specified by that consumer reporting agency

for obtaining such consumer reports (including a toll-free telephone

number established by the agency in the case of a consumer reporting

agency described in section 603(p)).

(6) Rulemaking

rules.

limited to–

(i) the form, content, time, and manner of delivery of any notice under this

subsection;

(ii) clarification of the meaning of terms used in this subsection, including

what credit terms are material, and when credit terms are materially

less favorable;

(iii) exceptions to the notice requirement under this subsection for classes

of persons or transactions regarding which the agencies determine that

notice would not significantly benefit consumers;

(iv) a model notice that may be used to comply with this subsection; and

(v) the timing of the notice required under paragraph (1), including the

circumstances under which the notice must be provided after the terms

offered to the consumer were set based on information from a

consumer report.

by this section if, at the time of the failure, the person maintained reasonable

policies and procedures to comply with this section.

(8) Enforcement

person to comply with this section.

section 621 by the Federal agencies and officials identified in that section.

under this title with respect to any consumer is liable to that consumer in an amount

equal to the sum of

(1) (A) any actual damages sustained by the consumer as a result of the failure or

damages of not less than $100 and not more than $1,000; or

(B) in the case of liability of a natural person for obtaining a consumer report

under false pretenses or knowingly without a permissible purpose, actual

damages sustained by the consumer as a result of the failure or $1,000,

whichever is greater;

(2) such amount of punitive damages as the court may allow; and

(3) in the case of any successful action to enforce any liability under this section, the

costs of the action together with reasonable attorney's fees as determined by the

court.

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.

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.

imposed under this title with respect to any consumer is liable to that consumer in an

amount equal to the sum of

(1) any actual damages sustained by the consumer as a result of the failure; and

(2) in the case of any successful action to enforce any liability under this section, the

costs of the action together with reasonable attorney's fees as determined by the

court.

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.

An action to enforce any liability created under this title may be brought in any

appropriate United States district court, without regard to the amount in controversy, or in

any other court of competent jurisdiction, not later than the earlier of (1) 2 years after the

date of discovery by the plaintiff of the violation that is the basis for such liability; or (2) 5

years after the date on which the violation that is the basis for such liability occurs.

Any person who knowingly and willfully obtains information on a consumer from a

consumer reporting agency under false pretenses shall be fined under title 18, United States

Code, imprisoned for not more than 2 years, or both.

Any officer or employee of a consumer reporting agency who knowingly and willfully

provides information concerning an individual from the agency's files to a person not

authorized to receive that information shall be fined under title 18, United States Code,

imprisoned for not more than 2 years, or both.

imposed under this title shall be enforced under the Federal Trade Commission

Act [15 U.S.C. §§ 41 et seq.] by the Federal Trade Commission with respect to

consumer reporting agencies and all other persons subject thereto, except to the

extent that enforcement of the requirements imposed under this title is specifically

committed to some other government agency under subsection (b) hereof. For the

purpose of the exercise by the Federal Trade Commission of its functions and

powers under the Federal Trade Commission Act, a violation of any requirement

or prohibition imposed under this title shall constitute an unfair or deceptive act

or practice in commerce in violation of section 5(a) of the Federal Trade

Commission Act [15 U.S.C. § 45(a)] and shall be subject to enforcement by the

Federal Trade Commission under section 5(b) thereof [15 U.S.C. § 45(b)] with

respect to any consumer reporting agency or person subject to enforcement by the

Federal Trade Commission pursuant to this subsection, irrespective of whether

that person is engaged in commerce or meets any other jurisdictional tests in the

Federal Trade Commission Act. The Federal Trade Commission shall have such

procedural, investigative, and enforcement powers, including the power to issue

procedural rules in enforcing compliance with the requirements imposed under

this title and to require the filing of reports, the production of documents, and the

appearance of witnesses as though the applicable terms and conditions of the

Federal Trade Commission Act were part of this title. Any person violating any of

the provisions of this title shall be subject to the penalties and entitled to the

privileges and immunities provided in the Federal Trade Commission Act as

though the applicable terms and provisions thereof were part of this title.

(2) (A) In the event of a knowing violation, which constitutes a pattern or practice

of violations of this title, the Commission may commence a civil action to

recover a civil penalty in a district court of the United States against any

person that violates this title. In such action, such person shall be liable for

a civil penalty of not more than $2,500 per violation.

(B) In determining the amount of a civil penalty under subparagraph (A), the

court shall take into account the degree of culpability, any history of prior

such conduct, ability to pay, effect on ability to continue to do business,

and such other matters as justice may require.

(3) Notwithstanding paragraph (2), a court may not impose any civil penalty on a

person for a violation of section 623(a)(1) [§ 1681s-2] unless the person has been

enjoined from committing the violation, or ordered not to commit the violation, in

an action or proceeding brought by or on behalf of the Federal Trade Commission,

and has violated the injunction or order, and the court may not impose any

civil penalty for any violation occurring before the date of the violation of the

injunction or order.

title with respect to consumer reporting agencies, persons who use consumer reports

from such agencies, persons who furnish information to such agencies, and users of

information that are subject to subsection (d) of section 615 [§ 1681m] shall be

enforced under

(1) section 8 of the Federal Deposit Insurance Act [12 U.S.C. § 1818], in the case of

(A) national banks, and Federal branches and Federal agencies of foreign

banks, by the Office of the Comptroller of the Currency;

(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 25A 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

(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 [National Credit Union Administration

Board] with respect to any Federal credit union;

(4) subtitle IV of title 49 [49 U.S.C. §§ 10101 et seq.], by the Secretary of

Transportation, with respect to all carriers subject to the jurisdiction of the Surface

Transportation Board;

(5) the Federal Aviation Act of 1958 [49 U.S.C. Appx §§ 1301 et seq.], by the

Secretary of Transportation with respect to any air carrier or foreign air carrier

subject to that Act [49 U.S.C. Appx §§ 1301 et seq.]; and

(6) the Packers and Stockyards Act, 1921 [7 U.S.C. §§ 181 et seq.] (except as

provided in section 406 of that Act [7 U.S.C. §§ 226 and 227]), by the Secretary

of Agriculture with respect to any activities subject to that Act.

The terms used in paragraph (1) that are not defined in this title or otherwise defined in section

3(s) of the Federal Deposit Insurance Act (12 U.S.C. §1813(s)) shall have the meaning

given to them in section 1(b) of the International Banking Act of 1978 (12 U.S.C. § 3101).

(c) State Action for Violations

law, if the chief law enforcement officer of a State, or an official or agency

designated by a State, has reason to believe that any person has violated or is

violating this title, the State

(A) may bring an action to enjoin such violation in any appropriate United

States district court or in any other court of competent jurisdiction;

(B) subject to paragraph (5), may bring an action on behalf of the residents of

the State to recover

(i) damages for which the person is liable to such residents under sections

616 and 617 [§§ 1681n and 1681o] as a result of the violation;

(ii) in the case of a violation described in any of paragraphs (1) through (3) of

section 623(c), damages for which the person would, but for section

623(c) [§ 1681s-2], 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.

action under paragraph (1) upon the Federal Trade Commission or the appropriate

Federal regulator determined under subsection (b) 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.

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.

Commission or the appropriate Federal regulator has instituted a civil action or an

administrative action under section 8 of the Federal Deposit Insurance Act for a

violation of this title, no State may, during the pendency of such action, bring an

action under this section against any defendant named in the complaint of the

Commission or the appropriate Federal regulator for any violation of this title that

is alleged in that complaint.

(5) Limitations on State Actions for Certain Violations

person under paragraph (1)(B) for a violation described in any of

paragraphs (1) through (3) of section 623(c), 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.

paragraph (1)(B) for a violation described in any of paragraphs (1) through

(3) of section 623(c), a State may not recover any damages incurred before

the date of the violation of an injunction on which the action is based.

referred to in subsection (b) of this section of its powers under any Act referred to in

that subsection, a violation of any requirement imposed under this title shall be

deemed to be a violation of a requirement imposed under that Act. In addition to its

powers under any provision of law specifically referred to in subsection (b) of this

section, each of the agencies referred to in that subsection may exercise, for the

purpose of enforcing compliance with any requirement imposed under this title any

other authority conferred on it by law.

(e) Regulatory authority

(1) The Federal banking agencies referred to in paragraphs (1) and (2) of subsection

(b) shall jointly prescribe such regulations as necessary to carry out the purposes

of this Act with respect to any persons identified under paragraphs (1) and (2) of

subsection (b), and the Board of Governors of the Federal Reserve System shall

have authority to prescribe regulations consistent with such joint regulations with

respect to bank holding companies and affiliates (other than depository

institutions and consumer reporting agencies) of such holding companies.

(2) The Board of the National Credit Union Administration shall prescribe such

regulations as necessary to carry out the purposes of this Act with respect to any

persons identified under paragraph (3) of subsection (b).

(f) Coordination of Consumer Complaint Investigations

develop and maintain procedures for the referral to each other such agency of any

consumer complaint received by the agency alleging identity theft, or requesting a

fraud alert under section 605A or a block under section 605B.

consultation with the Federal banking agencies and the National Credit Union

Administration, shall develop a model form and model procedures to be used by

consumers who are victims of identity theft for contacting and informing creditors

and consumer reporting agencies of the fraud.

603(p) shall submit an annual summary report to the Commission on consumer

complaints received by the agency on identity theft or fraud alerts.

described in paragraph (9) of section 623(a) has not met the requirements of such

paragraph, the Commission shall take action to ensure the person's compliance with

such paragraph, which may include issuing model guidance or prescribing reasonable

policies and procedures, as necessary to ensure that such person complies with such

paragraph.

Notwithstanding any other provision of this title, a consumer reporting agency shall

include in any consumer report furnished by the agency in accordance with section 604

[§ 1681b] of this title, any information on the failure of the consumer to pay overdue support

which

(1) is provided

(A) to the consumer reporting agency by a State or local child support enforcement

agency; or

(B) to the consumer reporting agency and verified by any local, State, or

Federal government agency; and

(2) antedates the report by 7 years or less.

[15 U.S.C. § 1681s-2]

(a) Duty of Furnishers of Information to Provide Accurate Information

(1) Prohibition

furnish any information relating to a consumer to any consumer reporting

agency if the person knows or has reasonable cause to believe that the

information is inaccurate.

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.

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.

believe that the information is inaccurate” means having specific knowledge,

other than solely allegations by the consumer, that would cause a reasonable

person to have substantial doubts about the accuracy of the information.

(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.

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.

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

agency regarding a delinquent account being placed for collection, charged

to profit or loss, or subjected to any similar action shall, not later than 90

days after furnishing the information, notify the agency of the date of

delinquency on the account, which shall be the month and year of the

commencement of the delinquency on the account that immediately

preceded the action.

that the consumer does not dispute the information, a person that furnishes

information on a delinquent account that is placed for collection, charged

for profit or loss, or subjected to any similar action, complies with this

paragraph, if--

(i) the person reports the same date of delinquency as that provided by the

creditor to which the account was owed at the time at which the

commencement of the delinquency occurred, if the creditor previously

reported that date of delinquency to a consumer reporting agency;

(ii) the creditor did not previously report the date of delinquency to a

consumer reporting agency, and the person establishes and follows

reasonable procedures to obtain the date of delinquency from the

creditor or another reliable source and reports that date to a consumer

reporting agency as the date of delinquency; or

(iii) the creditor did not previously report the date of delinquency to a

consumer reporting agency and the date of delinquency cannot be

reasonably obtained as provided in clause (ii), the person establishes

and follows reasonable procedures to ensure the date reported as the

date of delinquency precedes the date on which the account is placed

for collection, charged to profit or loss, or subjected to any similar

action, and reports such date to the credit reporting agency.

(6) Duties of Furnishers Upon Notice of Identity Theft-Related Information

consumer reporting agency shall have in place reasonable procedures to

respond to any notification that it receives from a consumer reporting

agency under section 605B relating to information resulting from identity

theft, to prevent that person from refurnishing such blocked information.

identity theft report to a person who furnishes information to a consumer

reporting agency at the address specified by that person for receiving such

reports stating that information maintained by such person that purports to

relate to the consumer resulted from identity theft, the person may not

furnish such information that purports to relate to the consumer to any

consumer reporting agency, unless the person subsequently knows or is

informed by the consumer that the information is correct.

(7) Negative Information

(A) Notice to Consumer Required

and in the ordinary course of business furnishes information to a consumer

reporting agency described in section 603(p) furnishes negative

information to such an agency regarding credit extended to a customer,

the financial institution shall provide a notice of such furnishing of

negative information, in writing, to the customer.

the financial institution may submit additional negative information to

a consumer reporting agency described in section 603(p) with respect

to the same transaction, extension of credit, account, or customer

without providing additional notice to the customer.

(B) Time of Notice

provided to the customer prior to, or no later than 30 days after,

furnishing the negative information to a consumer reporting agency

described in section 603(p).

the customer prior to furnishing the negative information to a

consumer reporting agency, the notice may not be included in the

initial disclosures provided under section 127(a) of the Truth in

Lending Act.

(A)--

(i) may be included on or with any notice of default, any billing statement,

or any other materials provided to the customer; and

(ii) must be clear and conspicuous.

(D) Model Disclosure

disclosure a financial institution may use to comply with subparagraph

(A), which shall not exceed 30 words.

construed as requiring a financial institution to use any such model

form prescribed by the Board.

in compliance with subparagraph (A) if the financial institution uses

any such model form prescribed by the Board, or the financial

institution uses any such model form and rearranges its format.

paragraph shall be construed as requiring a financial institution that has

provided a customer with a notice described in subparagraph (A) to

furnish negative information about the customer to a consumer reporting

agency.

perform the duties required by this paragraph if, at the time of the failure,

the financial institution maintained reasonable policies and procedures to

comply with this paragraph or the financial institution reasonably believed

that the institution is prohibited, by law, from contacting the consumer.

(i) The term “negative information” means information concerning a customer's

delinquencies, late payments, insolvency, or any form of default.

(ii) The terms “customer” and “financial institution” have the same meanings as

in section 509 Public Law 106-102.

(8) Ability of Consumer to Dispute Information Directly with Furnisher

and the Commission shall jointly prescribe regulations that

shall identify the circumstances under which a furnisher shall be required to

reinvestigate a dispute concerning the accuracy of information contained in

a consumer report on the consumer, based on a direct request of a consumer.

agencies shall weigh--

(i) the benefits to consumers with the costs on furnishers and the credit

reporting system;

(ii) the impact on the overall accuracy and integrity of consumer reports of

any such requirements;

(iii) whether direct contact by the consumer with the furnisher would likely

result in the most expeditious resolution of any such dispute; and

(iv) the potential impact on the credit reporting process if credit repair

organizations, as defined in section 403(3) [15 U.S.C. §1679a(3)],

including entities that would be a credit repair organization, but for

section 403(3)(B)(i), are able to circumvent the prohibition in

subparagraph (G).

identified under the regulations promulgated under subparagraph

(A).

accuracy of information shall provide a dispute notice directly to such

person at the address specified by the person for such notices that--

(i) identifies the specific information that is being disputed;

(ii) explains the basis for the dispute; and

(iii) includes all supporting documentation required by the furnisher to

substantiate the basis of the dispute.

dispute from a consumer pursuant to subparagraph (D), the person that

provided the information in dispute to a consumer reporting agency shall--

(i) conduct an investigation with respect to the disputed information;

(ii) review all relevant information provided by the consumer with the notice;

(iii) complete such person's investigation of the dispute and report the

results of the investigation to the consumer before the expiration of the

period under section 611(a)(1) within which a consumer reporting

agency would be required to complete its action if the consumer had

elected to dispute the information under that section; and

(iv) if the investigation finds that the information reported was inaccurate,

promptly notify each consumer reporting agency to which the person

furnished the inaccurate information of that determination and provide

to the agency any correction to that information that is necessary to

make the information provided by the person accurate.

(F) Frivolous or Irrelevant Dispute

of a dispute from a consumer reasonably determines that the dispute is

frivolous or irrelevant, including--

(I) by reason of the failure of a consumer to provide sufficient

information to investigate the disputed information; or

(II) the submission by a consumer of a dispute that is substantially the

same as a dispute previously submitted by or for the consumer,

either directly to the person or through a consumer reporting

agency under subsection (b), with respect to which the person has

already performed the person's duties under this paragraph or

subsection (b), as applicable.

(i) that a dispute is frivolous or irrelevant, the person shall notify the

consumer of such determination not later than 5 business days after

making such determination, by mail or, if authorized by the consumer

for that purpose, by any other means available to the person.

(I) the reasons for the determination under clause (i); and

(II) identification of any information required to investigate the

disputed information, which may consist of a standardized form

describing the general nature of such information.