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 w