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Fair Credit Reporting Act
15 U.S.C. § 1681
(As amended by Public Law 104-208, Sept. 30, 1996)
Short title
This title may be cited as the Fair Credit Reporting Act.
1681. Congressional findings and statement of purpose
(a) Accuracy and fairness of credit reporting
The Congress makes the following findings:
(1) The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit
reports directly impair the efficiency of the banking system, and unfair credit reporting
methods undermine the public confidence which is essential to the continued functioning of
the banking system.
(2) An elaborate mechanism has been developed for investigating and evaluating the credit
worthiness, credit standing, credit capacity, character, and general reputation of consumers.
(3) Consumer reporting agencies have assumed a vital role in assembling and evaluating
consumer credit and other information on consumers.
(4) There is a need to insure that consumer reporting agencies exercise their grave
responsibilities with fairness, impartiality, and a respect for the consumer's right to privacy.
(b) Reasonable procedures
It is the purpose of this title to require that consumer reporting agencies adopt reasonable
procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and
other information in a manner which is fair and equitable to the consumer, with regard to the
confidentiality, accuracy, relevancy, and proper utilization of such information in accordance
with the requirements of this title.
1681a. Definitions; rules of construction
(a) Definitions and rules of construction set forth in this section are applicable for the
purposes of this title.
(b) the term "person" means any individual, partnership, corporation, trust, estate,
cooperative, association, government or governmental subdivision or agency, or other entity.
(c) The term "consumer" means an individual.
(d) Consumer report
(1) In general. The term "consumer report" means any written, oral, or other communication
of any information by a consumer reporting agency bearing on a consumer's credit
worthiness, credit standing, credit capacity, character, general reputation, personal
characteristics, or mode of living which is used or expected to be used or collected in whole or
in part for the purpose of serving as a factor in establishing the consumer's eligibility for
(A) credit or insurance to be used primarily for personal, family, or household purposes;
(B) employment purposes; or
(C) any other purpose authorized under §1681b.
(2) Exclusions. The term "consumer report" does not include
(A) any
(i) report containing information solely as to transactions or experiences between the
consumer and the person making the report;
(ii) communication of that information among persons related by common ownership or
affiliated by corporate control; or
(iii) communication of other information among persons related by common ownership or
affiliated by corporate control, if it is clearly and conspicuously disclosed to the consumer that
the information may be communicated among such persons and the consumer is given the
opportunity, before the time that the information is initially communicated, to direct that such
information not be communicated among such persons;
(B) any authorization or approval of a specific extension of credit directly or indirectly by the
issuer of a credit card or similar device;
(C) any report in which a person who has been requested by a third party to make a specific
extension of credit directly or indirectly to a consumer conveys his or her decision with respect
to such request, if the third party advises the consumer of the name and address of the
person to whom the request was made, and such person makes the disclosures to the
consumer required under §1681m of this title; or
(D) a communication described in subsection (o) of this section.
(e) The term "investigative consumer report" means a consumer report or portion thereof in
which information on a consumer's character, general reputation, personal characteristics, or
mode of living is obtained through personal interviews with neighbors, friends, or associates
of the consumer reported on or with others with whom he is acquainted or who may have
knowledge concerning any such items of information. However, such information shall not
include specific factual information on a consumer's credit record obtained directly from a
creditor of the consumer or from a consumer reporting agency when such information was
obtained directly from a creditor of the consumer or from the consumer.
(f) The term "consumer reporting agency" means any person which, for monetary fees, dues,
or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of
assembling or evaluating consumer credit information or other information on consumers for
the purpose of furnishing consumer reports to third parties, and which uses any means or
facility of interstate commerce for the purpose of preparing or furnishing consumer reports.
(g) The term "file," when used in connection with information on any consumer, means all of
the information on that consumer recorded and retained by a consumer reporting agency
regardless of how the information is stored.
(h) The term "employment purposes" when used in connection with a consumer report means
a report used for the purpose of evaluating a consumer for employment, promotion,
reassignment or retention as an employee.
(i) The term "medical information" means information or records obtained, with the consent of
the individual to whom it relates, from licensed physicians or medical practitioners, hospitals,
clinics, or other medical or medically related facilities.
(j) Definitions relating to child support obligations.
(1) Overdue support. The term "overdue support" has the meaning given to such term in
section 666(e) of title 42 [Social Security Act, 42 U.S.C. § 666(e)].
(2) State or local child support enforcement agency. The term "State or local child support
enforcement agency" means a State or local agency which administers a State or local program
for establishing and enforcing child support obligations.
(k) Adverse action.
(1) Actions included. The term "adverse action"
(A) has the same meaning as in section 1691(d)(6) of this title; and
(B) means
(i) a denial or cancellation of, an increase in any charge for, or a reduction or other adverse or
unfavorable change in the terms of coverage or amount of, any insurance, existing or applied
for, in connection with the underwriting of insurance;
(ii) a denial of employment or any other decision for employment purposes that adversely
affects any current or prospective employee;
(iii) a denial or cancellation of, an increase in any charge for, or any other adverse or
unfavorable change in the terms of, any license or benefit described in section 1681b(a)(3)(D)
of this title; and
(iv) an action taken or determination that is
(I) made in connection with an application that was made by, or a transaction that was
initiated by, any consumer, or in connection with a review of an account under
§1681b(a)(3)(F)(ii) of this title; and
(II) adverse to the interests of the consumer.
(2) Applicable findings, decisions, commentary, and orders. For purposes of any determination
of whether an action is an adverse action under paragraph (1)(A), all appropriate final findings,
decisions, commentary, and orders issued under section 1691(d)(6) of this title by the Board
of Governors of the Federal Reserve System or any court shall apply.
(l) Firm offer of credit or insurance. The term "firm offer of credit or insurance" means any
offer of credit or insurance to a consumer that will be honored if the consumer is determined,
based on information in a consumer report on the consumer, to meet the specific criteria used
to select the consumer for the offer, except that the offer may be further conditioned on one
or more of the following:
(1) The consumer being determined, based on information in the consumer's application for
the credit or insurance, to meet specific criteria bearing on credit worthiness or insurability, as
applicable, that are established
(A) before selection of the consumer for the offer; and
(B) for the purpose of determining whether to extend credit or insurance pursuant to the
offer.
(2) Verification
(A) that the consumer continues to meet the specific criteria used to select the consumer for
the offer, by using information in a consumer report on the consumer, information in the
consumer's application for the credit or insurance, or other information bearing on the credit
worthiness or insurability of the consumer; or
(B) of the information in the consumer's application for the credit or insurance, to determine
that the consumer meets the specific criteria bearing on credit worthiness or insurability.
(3) The consumer furnishing any collateral that is a requirement for the extension of the credit
or insurance that was
(A) established before selection of the consumer for the offer of credit or insurance; and
(B) disclosed to the consumer in the offer of credit or insurance.
(m) Credit or insurance transaction that is not initiated by the consumer. The term "credit or
insurance transaction that is not initiated by the consumer" does not include the use of a
consumer report by a person with which the consumer has an account or insurance policy, for
purposes of
(1) reviewing the account or insurance policy; or
(2) collecting the account.
(n) State. The term "State" means any State, the Commonwealth of Puerto Rico, the District
of Columbia, and any territory or possession of the United States.
(o) Excluded communications. A communication is described in this subsection if it is a
communication
(1) that, but for subsection (d)(2)(D) of this section, would be an investigative consumer
report;
(2) that is made to a prospective employer for the purpose of
(A) procuring an employee for the employer; or
(B) procuring an opportunity for a natural person to work for the employer;
(3) that is made by a person who regularly performs such procurement;
(4) that is not used by any person for any purpose other than a purpose described in
subparagraph (A) or (B) of paragraph (2); and
(5) with respect to which
(A) the consumer who is the subject of the communication
(i) consents orally or in writing to the nature and scope of the communication, before the
collection of any information for the purpose of making the communication;
(ii) consents orally or in writing to the making of the communication to a prospective
employer, before the making of the communication; and
(iii) in the case of consent under clause (i) or (ii) given orally, is provided written confirmation
of that consent by the person making the communication, not later than 3 business days after
the receipt of the consent by that person;
(B) the person who makes the communication does not, for the purpose of making the
communication, make any inquiry that if made by a prospective employer of the consumer who
is the subject of the communication would violate any applicable Federal or State equal
employment opportunity law or regulation; and
(C) the person who makes the communication
(i) discloses in writing to the consumer who is the subject of the communication, not later
than 5 business days after receiving any request from the consumer for such disclosure, the
nature and substance of all information in the consumer's file at the time of the request,
except that the sources of any information that is acquired solely for use in making the
communication and is actually used for no other purpose, need not be disclosed other than
under appropriate discovery procedures in any court of competent jurisdiction in which an
action is brought; and
(ii) notifies the consumer who is the subject of the communication, in writing, of the
consumer's right to request the information described in clause (i).
(p) Consumer reporting agency that compiles and maintains files on consumers on a
nationwide basis. The term "consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis" means a consumer reporting agency that regularly engages
in the practice of assembling or evaluating, and maintaining, for the purpose of furnishing
consumer reports to third parties bearing on a consumer's credit worthiness, 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.
1681b. Permissible purposes of consumer reports
(a) In general. Subject to subsection (c) of this section, any consumer reporting agency may
furnish a consumer report under the following circumstances and no other:
(1) In response to the order of a court having jurisdiction to issue such an order, or a
subpoena issued in connection with proceedings before a Federal grand jury;
(2) In accordance with the written instructions of the consumer to whom it relates;
(3) To a person which it has reason to believe
(A) intends to use the information in connection with a credit transaction involving the
consumer on whom the information is to be furnished and involving the extension of credit to,
or review or collection of an account of, the consumer, or
(B) intends to use the information for employment purposes; or
(C) intends to use the information in connection with the underwriting of insurance involving
the consumer; or
(D) intends to use the information in connection with a determination of the consumer's
eligibility for a license or other benefit granted by a governmental instrumentality required by
law to consider an applicant's financial responsibility or status; or
(E) intends to use the information, as a potential investor or servicer, or current insurer, in
connection with a valuation of, or an assessment of the credit or prepayment risks associated
with, an existing credit obligation; or
(F) otherwise has a legitimate business need for the information
(i) in connection with a business transaction that is initiated by the consumer; or
(ii) to review an account to determine whether the consumer continues to meet the terms of
the account.
(4) In response to a request by the head of a State or local child support enforcement agency
(or a State or local government official authorized by the head of such an agency), if the
person making the request certifies to the consumer reporting agency that
(A) the consumer report is needed for the purpose of establishing an individual's capacity to
make child support payments or determining the appropriate level of such payments;
(B) the paternity of the consumer for the child to which the obligation relates has been
established or acknowledged by the consumer in accordance with State laws under which the
obligation arises (if required by those laws);
(C) the person has provided at least 10 days prior notice to the consumer whose report is
requested, by certified or registered mail to the last known address of the consumer, that the
report will be requested; and
(D) the consumer report will be kept confidential, will be used solely for a purpose described in
subparagraph (A), and will not be used in connection with any other civil, administrative, or
criminal proceeding, or for any other purpose.
(5) To an agency administering a State plan, under Section 654 of the Social Security Act (42
U.S.C. §654), for use to set an initial or modified child support award.
(b) Conditions for furnishing and using consumer reports for employment purposes.
(1) Certification from user. A consumer reporting agency may furnish a consumer report for
employment purposes only if
(A) the person who obtains such a report from the agency certifies to the agency that
(i) the person has complied with paragraph (2) with respect to the consumer report, and the
person will comply with paragraph (3) with respect to the consumer report if paragraph (3)
becomes applicable, and
(ii) information from the consumer report will not be used in violation of any applicable Federal
or State equal employment opportunity law or regulation; and
(B) the consumer reporting agency provides with the report, or has previously provided, a
summary of the consumer's rights under this subchapter as prescribed by the Federal Trade
Commission under §1681g(c)(3) of this title.
(2) Disclosure to the consumer.
(A) In general. Except as provided in subparagraph (B), a person may not procure a consumer
report, or cause a consumer report to be procured, for employment purposes with respect to
any consumer, unless --
(i) a clear and conspicuous disclosure has been made in writing to the consumer at any time
before the report is procured or caused to be procured, in a document that consists solely of
the disclosure, that a consumer report may be obtained for employment purposes; and
(ii) the consumer has authorized in writing (which authorization may be made on the
document referred to in clause (i)) the procurement of the report by that person.
(B) Application by mail, telephone, computer, or other similar means. If a consumer described
in subparagraph (C) applies for employment by mail, telephone, computer, or other similar
means, at any time before a consumer report is procured or caused to be procured in
connection with that application --
(i) the person who procures the consumer report on the consumer for employment purposes
shall provide to the consumer, by oral, written, or electronic means, notice that a consumer
report may be obtained for employment purposes, and a summary of the consumer's rights
under §1681m(a)(3) of this title; and
(ii) the consumer shall have consented, orally, in writing, or electronically to the procurement
of the report by that person.
(C) Scope. Subparagraph (B) shall apply to a person procuring a consumer report on a
consumer in connection with the consumer's application for employment only if --
(i) the consumer is applying for a position over which the Secretary of Transportation has the
power to establish qualifications and maximum hours of service pursuant to the provisions of
§31502 of title 49, or a position subject to safety regulation by a State transportation
agency; and
(ii) as of the time at which the person procures the report or causes the report to be procured
the only interaction between the consumer and the person in connection with that
employment application has been by mail, telephone, computer, or other similar means.
(3) Conditions on use for adverse actions
(A) In general. Except as provided in subparagraph (B), in using a consumer report for
employment purposes, before taking any adverse action based in whole or in part on that
report, the person intending to take such adverse action shall provide to the consumer to
whom the report relates --
(i) a copy of the report; and
(ii) a description in writing of the rights of the consumer under this subchapter, as prescribed
by the Federal Trade Commission under §1681g(c)(3) of this title.
(B) Application by mail, telephone, computer, or other similar means.
(i) If a consumer described in subparagraph (C) applies for employment by mail, telephone,
computer, or other similar means, and if a person who has procured a consumer report on the
consumer for employment purposes takes adverse action on the employment application
based in whole or in part on the report, then the person must provide to the consumer to
whom the report relates, in lieu of the notices required under subparagraph (A) of this section
and under §1681m(a) of this title, within 3 business days of taking such action, an oral written
or electronic notification --
(I) that adverse action has been taken based in whole or in part on a consumer report
received from a consumer reporting agency;
(II) of the name, address and telephone number of the consumer reporting agency that
furnished the consumer report (including a toll-free telephone number established by the
agency if the agency compiles and maintains files on consumers on a nationwide basis);
(III) that the consumer reporting agency did not make the decision to take the adverse action
and is unable to provide to the consumer the specific reasons why the adverse action was
taken; and
(IV) that the consumer may, upon providing proper identification, request a free copy of a
report and may dispute with the consumer reporting agency the accuracy or completeness of
any information in a report.
(ii) If, under clause (B)(i)(IV), the consumer requests a copy of a consumer report from the
person who procured the report, then, within 3 business days of receiving the consumer's
request, together with proper identification, the person must send or provide to the consumer
a copy of a report and a copy of the consumer's rights as prescribed by the Federal Trade
Commission under §1681g(c)(3) of this title.
(C) Scope. Subparagraph (B) shall apply to a person procuring a consumer report on a
consumer in connection with a 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
§31502 of title 49, or a position subject to safety regulation by a State transportation
agency; and
(ii) as of the time at which the person procures the report or causes the report to be procured
the only interaction between the consumer and the person in connection with that
employment application has been by mail, telephone, computer, or other similar means.
(4) Exception for national security investigations
(A) In general. In the case of an agency or department of the United States Government
which seeks to obtain and use a consumer report for employment purposes, paragraph (3)
shall not apply to any adverse action by such agency or department which is based in part on
such consumer report, if the head of such agency or department makes a written finding that
--
(i) the consumer report is relevant to a national security investigation of such agency or
department;
(ii) the investigation is within the jurisdiction of such agency or department;
(iii) there is reason to believe that compliance with paragraph (3) will --
(I) endanger the life or physical safety of any person;
(II) result in flight from prosecution;
(III) result in the destruction of, or tampering with, evidence relevant to the investigation;
(IV) result in the intimidation of a potential witness relevant to the investigation;
(V) result in the compromise of classified information; or
(VI) otherwise seriously jeopardize or unduly delay the investigation or another official
proceeding.
(B) Notification of consumer upon conclusion of investigation. Upon the conclusion of a
national security investigation described in subparagraph (A), or upon the determination that
the exception under subparagraph (A) is no longer required for the reasons set forth in such
subparagraph, the official exercising the authority in such subparagraph shall provide to the
consumer who is the subject of the consumer report with regard to which such finding was
made --
(i) a copy of such consumer report with any classified information redacted as necessary;
(ii) notice of any adverse action which is based, in part, on the consumer report; and
(iii) the identification with reasonable specificity of the nature of the investigation for which the
consumer report was sought.
(C) Delegation by head of agency or department. For purposes of subparagraphs (A) and (B),
the head of any agency or department of the United States Government may delegate his or
her authorities under this paragraph to an official of such agency or department who has
personnel security responsibilities and is a member of the Senior Executive Service or
equivalent civilian or military rank.
(D) Report to the Congress. Not later than January 31 of each year, the head of each agency
and department of the United States Government that exercised authority under this
paragraph during the preceding year shall submit a report to the Congress on the number of
times the department or agency exercised such authority during the year.
(E) Definitions. For purposes of this paragraph, the following definitions shall apply:
(i) Classified information. The term "classified information" means information that is protected
from unauthorized disclosure under Executive Order No. 12958 or successor orders.
(ii) National security investigation. The term "national security investigation" means any official
inquiry by an agency or department of the United States Government to determine the
eligibility of a consumer to receive access or continued access to classified information or to
determine whether classified information has been lost or compromised.
(c) Furnishing reports in connection with credit or insurance transactions that are not initiated
by the consumer.
(1) In general. A consumer reporting agency may furnish a consumer report relating to any
consumer pursuant to subparagraph (A) or (C) of subsection (a)(3) of this section in
connection with any credit or insurance transaction that is not initiated by the consumer only if
(A) the consumer authorizes the agency to provide such report to such person; or
(B) (i) the transaction consists of a firm offer of credit or insurance;
(ii) the consumer reporting agency has complied with subsection (e) of this section; and
(iii) there is not in effect an election by the consumer, made in accordance with subsection (e)
of this section, to have the consumer's name and address excluded from lists of names
provided by the agency pursuant to this paragraph.
(2) Limits on information received under paragraph (1)(B). A person may receive pursuant to
paragraph (1)(B) only
(A) the name and address of a consumer;
(B) an identifier that is not unique to the consumer and that is used by the person solely for
the purpose of verifying the identity of the consumer; and
(C) other information pertaining to a consumer that does not identify the relationship or
experience of the consumer with respect to a particular creditor or other entity.
(3) Information regarding inquiries. Except as provided in §1681g(a)(5) of this title, a
consumer reporting agency shall not furnish to any person a record of inquiries in connection
with a credit or insurance transaction that is not initiated by a consumer.
(d) Reserved.
(e) Election of consumer to be excluded from lists.
(1) In general. A consumer may elect to have the consumer's name and address excluded
from any list provided by a consumer reporting agency under subsection (c)(1)(B) of this
section in connection with a credit or insurance transaction that is not initiated by the
consumer, by notifying the agency in accordance with paragraph (2) that the consumer does
not consent to any use of a consumer report relating to the consumer in connection with any
credit or insurance transaction that is not initiated by the consumer.
(2) Manner of notification. A consumer shall notify a consumer reporting agency under
paragraph (1)
(A) through the notification system maintained by the agency under paragraph (5); or
(B) by submitting to the agency a signed notice of election form issued by the agency for
purposes of this subparagraph.
(3) Response of agency after notification through system. Upon receipt of notification of the
election of a consumer under paragraph (1) through the notification system maintained by the
agency under paragraph (5), a consumer reporting agency shall
(A) inform the consumer that the election is effective only for the 2-year period following the
election if the consumer does not submit to the agency a signed notice of election form issued
by the agency for purposes of paragraph (2)(B); and
(B) provide to the consumer a notice of election form, if requested by the consumer, not later
than 5 business days after receipt of the notification of the election through the system
established under paragraph (5), in the case of a request made at the time the consumer
provides notification through the system.
(4) Effectiveness of election. An election of a consumer under paragraph (1)
(A) shall be effective with respect to a consumer reporting agency beginning 5 business days
after the date on which the consumer notifies the agency in accordance with paragraph (2);
(B) shall be effective with respect to a consumer reporting agency
(i) subject to subparagraph (C), during the 2-year period beginning 5 business days after the
date on which the consumer notifies the agency of the election, in the case of an election for
which a consumer notifies the agency only in accordance with paragraph (2)(A); or
(ii) until the consumer notifies the agency under subparagraph (C), in the case of an election
for which a consumer notifies the agency in accordance with paragraph (2)(B);
(C) shall not be effective after the date on which the consumer notifies the agency, through
the notification system established by the agency under paragraph (5), that the election is no
longer effective; and
(D) shall be effective with respect to each affiliate of the agency.
(5) Notification system.
(A) In general. Each consumer reporting agency that, under subsection (c)(1)(B) of this
section, furnishes a consumer report in connection with a credit or insurance transaction that
is not initiated by a consumer, shall
(i) establish and maintain a notification system, including a toll-free telephone number, which
permits any consumer whose consumer report is maintained by the agency to notify the
agency, with appropriate identification, of the consumer's election to have the consumer's
name and address excluded from any such list of names and addresses provided by the
agency for such a transaction; and
(ii) publish by not later than 365 days after September 30, 1996, and not less than annually
thereafter, in a publication of general circulation in the area served by the agency
(I) a notification that information in consumer files maintained by the agency may be used in
connection with such transactions; and
(II) the address and toll-free telephone number for consumers to use to notify the agency of
the consumer's election under clause (i).
(B) Establishment and maintenance as compliance. Establishment and maintenance of a
notification system (including a toll-free telephone number) and publication by a consumer
reporting agency on the agency's own behalf and on behalf of any of its affiliates in accordance
with this paragraph is deemed to be compliance with this paragraph by each of those affiliates.
(6) Notification system by agencies that operate nationwide. Each consumer reporting agency
that compiles and maintains files on consumers on a nationwide basis shall establish and
maintain a notification system for purposes of paragraph (5) jointly with other such consumer
reporting agencies.
(f) Certain use or obtaining of information prohibited. A person shall not use or obtain a
consumer report for any purpose unless
(1) the consumer report is obtained for a purpose for which the consumer report is
authorized to be furnished under this section; and
(2) the purpose is certified in accordance with §1681e of this title by a prospective user of the
report through a general or specific certification.
(g) Furnishing reports containing medical information. A consumer reporting agency shall not
furnish for employment purposes, or in connection with a credit or insurance transaction, a
consumer report that contains medical information about a consumer, unless the consumer
consents to the furnishing of the report.
1681c. Requirements relating to information contained in consumer reports.
(a) Information excluded from consumer reports. Except as authorized under subsection (b)
of this section, no consumer reporting agency may make any consumer report containing any
of the following items of information:
(1) cases under title 11, or under the Bankruptcy Act that, from the date of entry of the order
for relief or the date of adjudication, as the case may be, antedate the report by more than 10
years;
(2) Civil suits and civil judgments, and records of arrest that, from date of entry, antedate the
report by more than seven years or until the governing statute of limitations has expired,
whichever is the longer period;
(3) paid tax liens which, from date of payment, antedate the report by more than seven years;
(4) accounts placed for collection or charged to profit and loss which antedate the report by
more than seven years; or
(5) any other adverse item of information other than records of convictions of crimes which
antedates the report by more than seven years.
(b) Exempted cases. The provisions of subsection (a) of this section are not applicable in the
case of any consumer credit report to be used in connection with
(1) a credit transaction involving, or which may reasonably be expected to involve, a principal
amount of $150,000 or more;
(2) the underwriting of life insurance involving, or which may reasonably be expected to
involve, a face amount of $150,000 or more; or
(3) the employment of any individual at an annual salary which equals, or which may
reasonably be expected to equal $75,000, or more.
(c) Running of reporting period.
(1) In general. The 7-year period referred to in paragraphs (4) and (6) of subsection (a) of
this section shall begin, with respect to any delinquent account that is placed for collection
(internally or by referral to a third party, whichever is earlier), charged to profit and loss, or
subjected to any similar action, upon the expiration of the 180-day period beginning on the
date of the commencement of the delinquency which immediately preceded the collection
activity, charge to profit and loss, or similar action.
(2) Effective date. Paragraph (1) shall apply only to items of information added to the file of a
consumer on or after September 30, 1996.
(d) Information required to be disclosed. Any consumer reporting agency that furnishes a
consumer report that contains information regarding any case involving the consumer that
arises under title 11, shall include in the report an identification of the chapter of such title 11
under which such case arises if provided by the source of the information. If any case arising
or filed under title 11, is withdrawn by the consumer before a final judgment, the consumer
reporting agency shall include in the report that such case or filing was withdrawn upon receipt
of documentation certifying such withdrawal.
(e) Indication of closure of account by consumer. If a consumer reporting agency is notified
pursuant to §1681s-2(a)(4) of this title that a credit account of a consumer was voluntarily
closed by the consumer, the agency shall indicate that fact in any consumer report that
includes information related to the account.
(f) Indication of dispute by consumer. If a consumer reporting agency is notified pursuant to
§1681s-2(a)(3) of this title that information regarding a consumer which 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.
1681d. Disclosure of investigative consumer reports
(a) Disclosure of fact of investigation. A person may not procure or cause to be prepared an
investigative consumer report on any consumer unless
(1) it is clearly and accurately disclosed to the consumer that an investigative consumer report
including information as to his character, general reputation, personal characteristics and
mode of living, whichever are applicable, may be made, and such disclosure
(A) is made in a writing mailed, or otherwise delivered, to the consumer, not later than three
days after the date on which the report was first requested, and
(B) includes a statement informing the consumer of his right to request the additional
disclosures provided for under subsection (b) of this section and the written summary of the
rights of the consumer prepared pursuant to §1681g(c) of this title; and
(2) the person certifies or has certified to the consumer reporting agency that
(A) the person has made the disclosures to the consumer required by paragraph (1); and
(B) the person will comply with subsection (b) of this section.
(b) Disclosure on request of nature and scope of investigation. Any person who procures or
causes to be prepared an investigative consumer report on any consumer shall, upon written
request made by the consumer within a reasonable period of time after the receipt by him of
the disclosure required by subsection (a)(1) of this section, make a complete and accurate
disclosure of the nature and scope of the investigation requested. This disclosure shall be
made in a writing mailed, or otherwise delivered, to the consumer not later than five days after
the date on which the request for such disclosure was received from the consumer or such
report was first requested, whichever is later.
(c) Limitation on liability upon showing of reasonable procedures for compliance with
provisions. No person may be held liable for any violation of subsection (a) or (b) of this
section if he shows by a preponderance of the evidence that at the time of the violation he
maintained reasonable procedures to assure compliance with subsection (a) or (b) of this
section.
(d) Prohibitions.
(1) Certification. A consumer reporting agency shall not prepare or furnish an investigative
consumer report unless the agency has received a certification under subsection (a)(2) of this
section from the person who requested the report.
(2) Inquiries. A consumer reporting agency shall not make an inquiry for the purpose of
preparing an investigative consumer report on a consumer for employment purposes if the
making of the inquiry by an employer or prospective employer of the consumer would violate
any applicable Federal or State equal employment opportunity law or regulation.
(3) Certain public record information. Except as otherwise provided in §1681k of this title, a
consumer reporting agency shall not furnish an investigative consumer report that includes
information that is a matter of public record and that relates to an arrest, indictment,
conviction, civil judicial action, tax lien, or outstanding judgment, unless the agency has
verified the accuracy of the information during the 30-day period ending on the date on which
the report is furnished.
(4) Certain adverse information. A consumer reporting agency shall not prepare or furnish an
investigative consumer report on a consumer that contains information that is adverse to the
interest of the consumer and that is obtained through a personal interview with a neighbor,
friend, or associate of the consumer or with another person with whom the consumer is
acquainted or who has knowledge of such item of information, unless
(A) the agency has followed reasonable procedures to obtain confirmation of the information,
from an additional source that has independent and direct knowledge of the information; or
(B) the person interviewed is the best possible source of the information.
1681e. Compliance procedures
(a) Identity and purpose of credit users. Every consumer reporting agency shall maintain
reasonable procedures designed to avoid violations of §1681c of this title and to limit the
furnishing of consumer reports to the purposes listed under §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 §1681b of this title.
(b) Accuracy of report. Whenever a consumer reporting agency prepares a consumer report it
shall follow reasonable procedures to assure maximum possible accuracy of the information
concerning the individual about whom the report relates.
(c) Disclosure of consumer reports by users allowed. A consumer reporting agency may not
prohibit a user of a consumer report furnished by the agency on a consumer from disclosing
the contents of the report to the consumer, if adverse action against the consumer has been
taken by the user based in whole or in part on the report.
(d) Notice to users and furnishers of information.
(1) Notice requirement. A consumer reporting agency shall provide to any person
(A) who regularly and in the ordinary course of business furnishes information to the agency
with respect to any consumer; or
(B) to whom a consumer report is provided by the agency;
a notice of such person's responsibilities under this subchapter.
(2) Content of notice. The Federal Trade Commission shall prescribe the content of notices
under paragraph (1), and a consumer reporting agency shall be in compliance with this
subsection if it provides a notice under paragraph (1) that is substantially similar to the
Federal Trade Commission prescription under this paragraph.
(e) Procurement of consumer report for resale.
(1) Disclosure. A person may not procure a consumer report for purposes of reselling the
report (or any information in the report) unless the person discloses to the consumer
reporting agency that originally furnishes the report
(A) the identity of the end-user of the report (or information); and
(B) each permissible purpose under §1681b of this title for which the report is furnished to
the end-user of the report (or information).
(2) Responsibilities of procurers for resale. A person who procures a consumer report for
purposes of reselling the report (or any information in the report) shall
(A) establish and comply with reasonable procedures designed to ensure that the report (or
information) is resold by the person only for a purpose for which the report may be furnished
under §1681b of this title, including by requiring that each person to which the report (or
information) is resold and that resells or provides the report (or information) to any other
person
(i) identifies each end user of the resold report (or information);
(ii) certifies each purpose for which the report (or information) will be used; and
(iii) certifies that the report (or information) will be used for no other purpose; and
(B) before reselling the report, make reasonable efforts to verify the identifications and
certifications made under subparagraph (A).
(3) Resale of consumer report to a Federal agency or department
Notwithstanding paragraph (1) or (2), a person who procures a consumer report for purposes
of reselling the report (or any information in the report) shall not disclose the identity of the
end-user of the report under paragraph (1) or (2) if
(A) the end user is an agency or department of the United States Government which procures
the report from the person for purposes of determining the eligibility of the consumer
concerned to receive access or continued access to classified information (as defined in
§1681b(b)(4)(E)(i) of this title); and
(B) the agency or department certifies in writing to the person reselling the report that
nondisclosure is necessary to protect classified information or the safety of persons employed
by or contracting with, or undergoing investigation for work with the agency or department.
1681f. Disclosures to governmental agencies
Not withstanding the provisions of 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.
1681g. Disclosures to consumers
(a) Information on file; sources; report recipients. Every consumer reporting agency shall,
upon request, and subject to §1681h(a)(1) of this title, clearly and accurately disclose to the
consumer:
(1) All information in the consumer's file at the time of the request, except that nothing in this
paragraph shall be construed to require a consumer reporting agency to disclose to a
consumer any information concerning credit scores or any other risk scores or predictors
relating to the consumer.
(2) The sources of the information; except that the sources of information acquired solely for
use in preparing an investigative consumer report and actually used for no other purpose
need not be disclosed. Provided, That in the event an action is brought under this subchapter,
such sources shall be available to the plaintiff under appropriate discovery procedures in the
court in which the action is brought.
(3)(A) Identification of each person (including each end-user identified under §1681e(e)(1) of
this title) that procured a consumer report
(i) for employment purposes, during the 2-year period preceding the date on which the
request is made; or
(ii) for any other purpose, during the 1-year period preceding the date on which the request is
made.
(B) An identification of a person under subparagraph (A) shall include
(i) the name of the person or, if applicable, the trade name (written in full) under which such
person conducts business; and
(ii) upon request of the consumer, the address and telephone number of the person.
(C) Subparagraph (A) does not apply if
(i) the end user is an agency or department of the United States Government that procures
the report from the person for purposes of determining the eligibility of the consumer to
whom the report relates to receive access or continued access to classified information (as
defined in §1681b(b)(4)(E)(i) of this title); and
(ii) the head of the agency or department makes a written finding as prescribed under
§1681b(b)(4)(A) of this title.
(4) The dates, original payees, and amounts of any checks upon which is based any adverse
characterization of the consumer, including in the file at the time of the disclosure.
(5) A record of all inquiries received by the agency during the 1-year period preceding the
request that identified the consumer in connection with a credit or insurance transaction that
was not initiated by the consumer.
(b) Exempt information. The requirements of subsection (a) of this section respecting the
disclosure of sources of information and the recipients of consumer reports do not apply to
information received or consumer reports furnished prior to the effective date of this
subchapter except to the extent that the matter involved is contained in the files of the
consumer reporting agency on that date.
(c) Summary of rights to be included with disclosure.
(1) Summary of rights. A consumer reporting agency shall provide to a consumer, with each
written disclosure by the agency to the consumer under this section
(A) a written summary of all of the rights that the consumer has under this subchapter; and
(B) in the case of a consumer reporting agency that compiles and maintains files on
consumers on a nationwide basis, a toll-free telephone number established by the agency, at
which personnel are accessible to consumer during normal business hours.
(2) Specific items required to be included. The summary of rights required under paragraph
(1) shall include
(A) a brief description of this subchapter and all rights of consumers under this subchapter;
(B) an explanation of how the consumer may exercise the rights of the consumer under this
title;
(C) a list of all Federal agencies responsible for enforcing any provision of this subchapter and
the address and any appropriate phone number of each such agency, in a form that will assist
the consumer in selecting the appropriate agency;
(D) a statement that the consumer may have additional rights under State law and that the
consumer may wish to contact a State or local consumer protection agency or a State
attorney general to learn of those rights; and
(E) a statement that a consumer reporting agency is not required to remove accurate
derogatory information from a consumer's file, unless the information is outdated under
§1681c of this title or cannot be verified.
(3) Form of summary rights. For purposes of this subsection and any disclosure by a
consumer reporting agency required under this subchapter with respect to consumers' rights,
the Federal Trade Commission (after consultation with each Federal agency referred to in
§1681(s) of this title) shall prescribe the form and content of any such disclosure of the rights
of consumers required under this subchapter. A consumer reporting agency shall be in
compliance with this subsection if it provides disclosures under paragraph (1) that are
substantially similar to the Federal Trade Commission prescription under this paragraph.
(4) Effectiveness. No disclosure shall be required under this subsection until the date on which
the Federal Trade Commission prescribes the form and content of such disclosures under
paragraph (3).
1681h. Conditions and form of disclosure to consumers
(a) In general.
(1) Proper identification. A consumer reporting agency shall require, as a condition of making
the disclosures required under §1681g of this title, that the consumer furnish proper
identification.
(2) Disclosure in writing. Except as provided in subsection (b) of this section, the disclosures
required to be made under §1681g of this title shall be provided under this section in writing.
(b) Other forms of disclosure.
(1) In general. If authorized by a consumer, a consumer reporting agency may make the
disclosures required under §1681g of this title
(A) other than in writing; and
(B) in such form as may be
(i) specified by the consumer in accordance with paragraph (2); and
(ii) available from the agency.
(2) Form. A consumer may specify pursuant to paragraph (1) that disclosures under §1681g
of this title shall be made
(A) in person, upon the appearance of the consumer at the place of business of the consumer
reporting agency where disclosures are regularly provided, during normal business hours, and
on reasonable notice;
(B) by telephone, if the consumer has made a written request for disclosure by telephone;
(C) by electronic means, if available from the agency; or
(D) by any other reasonable means that is available from the agency.
(c) Trained personnel. Any consumer reporting agency shall provide trained personnel to
explain to the consumer any information furnished to him pursuant to §1681g of this title.
(d) Persons accompanying consumer. The consumer shall be permitted to be accompanied by
one other person of his choosing, who shall furnish reasonable identification. A consumer
reporting agency may require the consumer to furnish a written statement granting
permission to the consumer reporting agency to discuss the consumer's file in such person's
presence.
(e) Limitation of liability. Except as provided in §§1681n and 1681o of this title, no consumer
may bring any action or proceeding in the nature of defamation, invasion of privacy, or
negligence with respect to the reporting of information against any consumer reporting
agency, any user of information, or any person who furnishes information to a consumer
reporting agency, based on information disclosed pursuant to §§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.
1681i. Procedure in case of disputed accuracy
(a) Investigations of disputed information.
(1) Reinvestigation required.
(A) In general. If the completeness or accuracy of any item of information contained in a
consumer's file at a consumer reporting agency is disputed by the consumer and the
consumer notifies the agency directly of such dispute, the agency shall reinvestigate free of
charge and record the current status of the disputed information, or delete the item from the
file in accordance with paragraph (5), before the end of the 30-day period beginning on the
date on which the agency receives the notice of the dispute from the consumer.
(B) Extension of period to reinvestigate. Except as provided in subparagraph (C), the 30-day
period described in subparagraph (A) may be extended for not more than 15 additional days if
the consumer reporting agency receives information from the consumer during that 30-day
period that is relevant to the reinvestigation.
(C) Limitations on extension of period to reinvestigate. Subparagraph (B) shall not apply to
any reinvestigation in which, during the 30-day period described in subparagraph (A), the
information that is the subject of the reinvestigation is found to be inaccurate or incomplete or
the consumer reporting agency determines that the information cannot be verified.
(2) Prompt notice of dispute to furnisher of information.
(A) In general. Before the expiration of the 5-business-day period beginning on the date on
which a consumer reporting agency receives notice of a dispute from any consumer in
accordance with paragraph (1), the agency shall provide notification of the dispute to any
person who provided any item of information in dispute, at the address and in the manner
established with the person. The notice shall include all relevant information regarding the
dispute that the agency has received from the consumer.
(B) Provision of other information from consumer. The consumer reporting agency shall
promptly provide to the person who provided the information in dispute all relevant
information regarding the dispute that is received by the agency from the consumer after the
period referred to in subparagraph (A) and before the end of the period referred to in
paragraph (1)(A).
(3) Determination that dispute is frivolous or irrelevant.
(A) In general. Notwithstanding paragraph (1), a consumer reporting agency may terminate a
reinvestigation of information disputed by a consumer under that paragraph if the agency
reasonably determines that the dispute by the consumer is frivolous or irrelevant, including by
reason of a failure by a consumer to provide sufficient information to investigate the disputed
information.
(B) Notice of determination. Upon making any determination in accordance with subparagraph
(A) that a dispute is frivolous or irrelevant, a consumer reporting agency shall notify the
consumer of such determination not later than 5 business days after making such
determination, by mail or, if authorized by the consumer for that purpose, by any other
means available to the agency.
(C) Contents of notice. A notice under subparagraph (B) shall include
(i) the reasons for the determination under subparagraph (A); and
(ii) identification of any information required to investigate the disputed information, which
may consist of a standardized form describing the general nature of such information.
(4) Consideration of consumer information. In conducting any reinvestigation under paragraph
(1) with respect to disputed information in the file of any consumer, the consumer reporting
agency shall review and consider all relevant information submitted by the consumer in the
period described in paragraph (1)(A) with respect to such disputed information.
(5) Treatment of inaccurate or unverifiable information.
(A) In general. If, after any reinvestigation under paragraph (1) of any information disputed by
a consumer, an item of the information is found to be inaccurate or incomplete or cannot be
verified, the consumer reporting agency shall promptly delete that item of information from
the consumer's file or modify that item of information, as appropriate, based on the results of
the reinvestigation.
(B) Requirements relating to reinsertion of previously deleted material.
(i) Certification of accuracy of information. If any information is deleted from a consumer's file
pursuant to subparagraph (A), the information may not be reinserted in the file by the
consumer reporting agency unless the person who furnishes the information certifies that the
information is complete and accurate.
(ii) Notice to consumer. If any information that has been deleted from a consumer's file
pursuant to subparagraph (A) is reinserted in the file, the consumer reporting agency shall
notify the consumer of the reinsertion in writing not later than 5 business days after the
reinsertion or, if authorized by the consumer for that purpose, by any other means available
to the agency.
(iii) Additional information. As part of, or in addition to, the notice under clause (ii), a
consumer reporting agency shall provide to a consumer in writing not later than 5 business
days after the date of the reinsertion
(I) a statement that the disputed information has been reinserted;
(II) the business name and address of any furnisher of information contacted and the
telephone number of such furnisher, if reasonably available, or of any furnisher of information
that contacted the consumer reporting agency, in connection with the reinsertion of such
information; and
(III) a notice that the consumer has the right to add a statement to the consumer's file
disputing the accuracy or completeness of the disputed information.
(C) Procedures to prevent reappearance. A consumer reporting agency shall maintain
reasonable procedures designed to prevent the reappearance in a consumer's file, and in
consumer reports on the consumer, of information that is deleted pursuant to this paragraph
(other than information that is reinserted in accordance with subparagraph (B)(i)).
(D) Automated reinvestigation system. Any consumer reporting agency that compiles and
maintains files on consumers on a nationwide basis shall implement an automated system
through which furnishers of information to that consumer reporting agency may report the
results of a reinvestigation that finds incomplete or inaccurate information in a consumer's file
to other such consumer reporting agencies.
(6) Notice of results of investigation.
(A) In general. A consumer reporting agency shall provide written notice to a consumer of the
results of a reinvestigation under this subsection not later than 5 business days after the
completion of the reinvestigation, by mail or, if authorized by the consumer for that purpose,
by other means available to the agency.
(B) Contents. As part of, or in addition to, the notice under subparagraph (A), a consumer
reporting agency shall provide to a consumer in writing before the expiration of the 5-day
period referred to in subparagraph (A)
(i) a statement that the reinvestigation is completed;
(ii) a consumer report that is based upon the consumer's file as that file is revised as a result
of the reinvestigation;
(iii) a notice that, if requested by the consumer, a description of the procedure used to
determine the accuracy and completeness of the information shall be provided to the
consumer by the agency, including the business name and address of any furnisher of
information contacted in connection with such information and the telephone number of such
furnisher, if reasonably available;
(iv) a notice that the consumer has the right to add a statement to the consumer's file
disputing the accuracy or completeness of the information; and
(v) a notice that the consumer has the right to request under subsection (d) of this section
that the consumer reporting agency furnish notifications under that subsection.
(7) Description of reinvestigation procedure. A consumer reporting agency shall provide to a
consumer a description referred to in paragraph 6(B)(iii) by not later than 15 days after
receiving a request from the consumer for that description.
(8) Expedited dispute resolution. If a dispute regarding an item of information in a consumer's
file at a consumer reporting agency is resolved in accordance with paragraph (5)(A) by the
deletion of the disputed information by not later than 3 business days after the date on which
the agency receives notice of the dispute from the consumer in accordance with paragraph
(1)(A), then the agency shall not be required to comply with paragraphs (2), (6), and (7) with
respect to that dispute if the agency
(A) provides prompt notice of the deletion to the consumer by telephone;
(B) includes in that notice, or in a written notice that accompanies a confirmation and
consumer report provided in accordance with subparagraph (C), a statement of the
consumer's right to request under subsection (d) of this section that the agency furnish
notifications under that subsection; and
(C) provides written confirmation of the deletion and a copy of a consumer report on the
consumer that is based on the consumer's file after the deletion, not later than 5 business
days after making the deletion.
(b) Statement of dispute. If the reinvestigation does not resolve the dispute, the consumer
may file a brief statement setting forth the nature of the dispute. The consumer reporting
agency may limit such statements to not more than one hundred words if it provides the
consumer with assistance in writing a clear summary of the dispute.
(c) Notification of consumer dispute in subsequent consumer reports. Whenever a statement
of a dispute is filed, unless there is reasonable grounds to believe that it is frivolous or
irrelevant, the consumer reporting agency shall, in any subsequent consumer report
containing the information in question, clearly note that it is disputed by the consumer and
provide either the consumer's statement or a clear and accurate codification or summary
thereof.
(d) Notification of deletion of disputed information. Following any deletion of information which
is found to be inaccurate or whose accuracy can no longer be verified or any notation as to
disputed information, the consumer reporting agency shall, at the request of the consumer,
furnish notification that the item has been deleted or the statement, codification or summary
pursuant to subsection (b) or (c) of this section to any person specifically designated by the
consumer who has within two years prior thereto received a consumer report for employment
purposes, or within six months prior thereto received a consumer report for any other
purpose which contained the deleted or disputed information.
1681j. Charges for certain disclosures
(a) Reasonable charges allowed for certain disclosures.
(1) In general. Except as provided in subsections (b), (c), and (d) of this section, a consumer
reporting agency may impose a reasonable charge on a consumer
(A) for making a disclosure to the consumer pursuant to §1681g of this title, which charge
(i) shall not exceed $8; and
(ii) shall be indicated to the consumer before making the disclosure; and
(B) for furnishing, pursuant to §1681i(d) of this title, following a reinvestigation under §
1681i(a) of this title, a statement, codification, or summary to a person designated by the
consumer under that section after the 30-day period beginning on the date of notification of
the consumer under paragraph (6) or (8) of §1681i(a) of this title with respect to the
reinvestigation, which charge
(i) shall not exceed the charge that the agency would impose on each designated recipient for
a consumer report; and
(ii) shall be indicated to the consumer before furnishing such information.
(2) Modification of amount. The Federal Trade Commission shall increase the amount referred
to in paragraph (1)(A)(i) on January 1 of each year, based proportionally on changes in the
Consumer Price Index, with fractional changes rounded to the nearest fifty cents.
(b) Free disclosure after adverse notice to consumer. Each consumer reporting agency that
maintains a file on a consumer shall make all disclosures pursuant to §1681g of this title
without charge to the consumer if, not later than 60 days after receipt by such consumer of a
notification pursuant to §1681m of this title, or of a notification from a debt collection agency
affiliated with that consumer reporting agency stating that the consumer's credit rating may
be or has been adversely affected, the consumer makes a request under §1681g of this title.
(c) Free disclosure under certain other circumstances. Upon the request of the consumer, a
consumer reporting agency shall make all disclosures pursuant to §1681g of this title once
during any 12-month period without charge to that consumer if the consumer certifies in
writing that the consumer
(1) is unemployed and intends to apply for employment in a 60-day period beginning on the
date on which the certification is made;
(2) is a recipient of public welfare assistance; or
(3) has reason to believe that the file on the consumer at the agency contains inaccurate
information due to fraud.
(d) Other charges prohibited. A consumer reporting agency shall not impose any charge on a
consumer for providing any notification required by this subchapter or making any disclosure
required by this subchapter, except as authorized by subsection (a) of this section.
1681k. Public record information for employment purposes
(a) In general. A consumer reporting agency which furnishes a consumer report for
employment purposes and which for that purpose compiles and reports items of information
on consumers which are matters of public record and are likely to have an adverse effect upon
a consumer's ability to obtain employment shall
(1) at the time such public record information is reported to the user of such consumer
report, notify the consumer of the fact that public record information is being reported by the
consumer reporting agency, together with the name and address of the person to whom such
information is being reported; or
(2) maintain strict procedures designed to insure that whenever public record information
which is likely to have an adverse effect on a consumer's ability to obtain employment is
reported it is complete and up to date. For purposes of this paragraph, items of public record
relating to arrests, indictments, convictions, suits, tax liens, and outstanding judgments shall
be considered up to date if the current public record status of the item at the time of the
report is reported.
(b) Exemption for national security investigations. Subsection (a) of this section does not
apply in the case of an agency or department of the United States Government that seeks to
obtain and use a consumer report for employment purposes, if the head of the agency or
department makes a written finding as prescribed under section 1681b(b)(4)(A) of this title.
1681l. Restrictions on investigative consumer reports
Whenever a consumer reporting agency prepares an investigative consumer report, no
adverse information in the consumer report (other than information which is a matter of public
record) may be included in a subsequent consumer report unless such adverse information
has been verified in the process of making such subsequent consumer report, or the adverse
information was received within the three-month period preceding the date the subsequent
report is furnished.
1681m. Requirements on users of consumer reports
(a) Duties of users taking adverse actions on the basis of information contained in consumer
reports. If any person takes any adverse action with respect to any consumer that is based in
whole or in part on any information contained in a consumer report, the person shall
(1) provide oral, written, or electronic notice of the adverse action to the consumer;
(2) provide to the consumer orally, in writing, or electronically
(A) the name, address, and telephone number of the consumer reporting agency (including a
toll-free telephone number established by the agency if the agency compiles and maintains
files on consumers on a nationwide basis) that furnished the report to the person; and
(B) a statement that the consumer reporting agency did not make the decision to take the
adverse action and is unable to provide the consumer the specific reasons why the adverse
action was taken; and
(3) provide to the consumer an oral, written, or electronic notice of the consumer's right
(A) to obtain, under §1681j of this title, a free copy of a consumer report on the consumer
from the consumer reporting agency referred to in paragraph (2), which notice shall include an
indication of the 60-day period under that section for obtaining such a copy; and
(B) to dispute, under §1681i of this title, with a consumer reporting agency the accuracy or
completeness of any information in a consumer report furnished by the agency.
(b) Adverse action based on information obtained from third parties other than consumer
reporting agencies.
(1) In general. Whenever credit for personal, family, or household purposes involving a
consumer is denied or the charge for such credit is increased either wholly or partly because of
information obtained from a person other than a consumer reporting agency bearing upon the
consumer's credit worthiness, 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 60 days after learning of such adverse action, disclose the
nature of the information to the consumer. The user of such information shall clearly and
accurately disclose to the consumer his right to make such written request at the time such
adverse action is communicated to the consumer.
(2) Duties of person taking certain actions based on information provided by affiliate.
(A) Duties, generally. If a person takes an action described in subparagraph (B) with respect
to a consumer, based in whole or in part on information described in subparagraph (C), the
person shall
(i) notify the consumer of the action, including a statement that the consumer may obtain the
information in accordance with clause (ii); and
(ii) upon a written request from the consumer received within 60 days after transmittal of the
notice required by clause (i), disclose to the consumer the nature of the information upon
which the action is based by not later than 30 days after receipt of the request.
(B) Action described. An action referred to in subparagraph (A) is an adverse action described
in §1681a(k)(1)(A) of this title, taken in connection with a transaction initiated by the
consumer, or any adverse action described in clause (i) or (ii) of §1681a(k)(1)(B) of this title.
(C) Information described. Information referred to in subparagraph (A)
(i) except as provided in clause (ii), is information that
(I) is furnished to the person taking the action by a person related by common ownership or
affiliated by common corporate control to the person taking the action; and
(II) bears on the credit worthiness, credit standing, credit capacity, character, general
reputation, personal characteristics, or mode of living of the consumer; and
(ii) does not include
(I) information solely as to transactions or experiences between the consumer and the person
furnishing the information; or
(II) information in a consumer report.
(c) Reasonable procedures to assure compliance. No person shall be held liable for any
violation of this section if he shows by a preponderance of the evidence that at the time of the
alleged violation he maintained reasonable procedures to assure compliance with the
provisions of this section.
(d) Duties of users making written credit or insurance solicitations on the basis of information
contained in consumer files.
(1) In general. Any person who uses a consumer report on any consumer in connection with
any credit or insurance transaction that is not initiated by the consumer, that is provided to
that person under §1681b(c)(1)(B) of this title, shall provide with each written solicitation
made to the consumer regarding the transaction a clear and conspicuous statement that
(A) information contained in the consumer's consumer report was used in connection with the
transaction;
(B) the consumer received the offer of credit or insurance because the consumer satisfied the
criteria for credit worthiness 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 §1681b(e) of this title.
(2) Disclosure of address and telephone number. A statement under paragraph (1) shall
include the address and toll-free telephone number of the appropriate notification system
established under §1681b(e) of this title.
(3) Maintaining criteria on file. A person who makes an offer of credit or insurance to a
consumer under a credit or insurance transaction described in paragraph (1) shall maintain on
file the criteria used to select the consumer to receive the offer, all criteria bearing on credit
worthiness or insurability, as applicable, that are the basis for determining whether or not to
extend credit or insurance pursuant to the offer, and any requirement for the furnishing of
collateral as a condition of the extension of credit or insurance, until the expiration of the
3-year period beginning on the date on which the offer is made to the consumer.
(4) Authority of federal agencies regarding unfair or deceptive acts or practices not affected.
This section is not intended to affect the authority of any Federal or State agency to enforce a
prohibition against unfair or deceptive acts or practices, including the making of false or
misleading statements in connection with a credit or insurance transaction that is not initiated
by the consumer.
1681n. Civil liability for willful noncompliance
(a) In general. Any person who willfully fails to comply with any requirement imposed under
this subchapter, with respect to any consumer is liable to that consumer in an amount equal
to the sum of
(1)(A) any actual damages sustained by the consumer as a result of the failure or damages of
not less than $100 and not more than $1,000; or
(B) in the case of liability of a natural person for obtaining a consumer report under false
pretenses or knowingly without a permissible purpose, actual damages sustained by the
consumer as a result of the failure or $1,000, whichever is greater;
(2) such amount of punitive damages as the court may allow; and
(3) in the case of any successful action to enforce any liability under this section, the costs of
the action together with reasonable attorney's fees as determined by the court.
(b) Civil liability for knowing noncompliance. Any person who obtains a consumer report from a
consumer reporting agency under false pretenses or knowingly without a permissible purpose
shall be liable to the consumer reporting agency for actual damages sustained by the
consumer reporting agency or $1,000, whichever is greater.
(c) Attorney's fees. Upon a finding by the court that an unsuccessful pleading, motion, or
other paper filed in connection with an action under this section was filed in bad faith or for
purposes of harassment, the court shall award to the prevailing party attorney's fees
reasonable in relation to the work expended in responding to the pleading, motion, or other
paper.
1681o. Civil liability for negligent noncompliance
(a) In general. Any person who is negligent in failing to comply with any requirement imposed
under this subchapter with respect to any consumer is liable to that consumer in an amount
equal to the sum of
(1) any actual damages sustained by the consumer as a result of the failure;
(2) in the case of any successful action to enforce any liability under this section, the costs of
the action together with reasonable attorney's fees as determined by the court.
(b) Attorney's fees. On a finding by the court that an unsuccessful pleading, motion, or other
paper filed in connection with an action under this section was filed in bad faith or for
purposes of harassment, the court shall award to the prevailing party attorney's fees
reasonable in relation to the work expended in responding to the pleading, motion, or other
paper.
1681p. Jurisdiction of courts; limitation of actions
An action to enforce any liability created under this subchapter may be brought in any
appropriate United States district court without regard to the amount in controversy, or in
any other court of competent jurisdiction, within two years from the date on which the liability
arises, except that where a defendant has materially and willfully misrepresented any
information required under this subchapter to be disclosed to an individual and the information
so misrepresented is material to the establishment of the defendant's liability to that individual
under this subchapter, the action may be brought at any time within two years after discovery
by the individual of the misrepresentation.
1681q. Obtaining information under false pretenses
Any person who knowingly and willfully obtains information on a consumer from a consumer
reporting agency under false pretenses shall be fined under title 18, imprisoned for not more
than 2 years, or both.
1681r. Unauthorized disclosures by officers or employees
Any officer or employee of a consumer reporting agency who knowingly and willfully provides
information concerning an individual from the agency's files to a person not authorized to
receive that information shall be fined under title 18, imprisoned for not more than 2 years, or
both.
1681s. Administrative enforcement
(a)(1) Enforcement by Federal Trade Commission. Compliance with the requirements imposed
under this subchapter shall be enforced under the Federal Trade Commission Act [15 U.S.C.
§§41 et seq.] by the Federal Trade Commission with respect to consumer reporting agencies
and all other persons subject thereto, except to the extent that enforcement of the
requirements imposed under this subchapter is specifically committed to some other
government agency under subsection (b) hereof. For the purpose of the exercise by the
Federal Trade Commission of its functions and powers under the Federal Trade Commission
Act, a violation of any requirement or prohibition imposed under this subchapter shall
constitute an unfair or deceptive act or practice in commerce in violation of section 5(a) of the
Federal Trade Commission Act [15 U.S.C. §45(a)] and shall be subject to enforcement by the
Federal Trade Commission under section 5(b) thereof [15 U.S.C. §45(b)] with respect to any
consumer reporting agency or person subject to enforcement by the Federal Trade
Commission pursuant to this subsection, irrespective of whether that person is engaged in
commerce or meets any other jurisdictional tests in the Federal Trade Commission Act. The
Federal Trade Commission shall have such procedural, investigative, and enforcement powers,
including the power to issue procedural rules in enforcing compliance with the requirements
imposed under this subchapter and to require the filing of reports, the production of
documents, and the appearance of witnesses as though the applicable terms and conditions of
the Federal Trade Commission Act were part of this subchapter. Any person violating any of
the provisions of this subchapter shall be subject to the penalties and entitled to the privileges
and immunities provided in the Federal Trade Commission Act as though the applicable terms
and provisions thereof were part of this subchapter.
(2)(A) In the event of a knowing violation, which constitutes a pattern or practice of violations
of this subchapter, the Commission may commence a civil action to recover a civil penalty in a
district court of the United States against any person that violates this subchapter. In such
action, such person shall be liable for a civil penalty of not more than $2,500 per violation.
(B) In determining the amount of a civil penalty under subparagraph (A), the court shall take
into account the degree of culpability, any history of prior such conduct, ability to pay, effect
on ability to continue to do business, and such other matters as justice may require.
(3) Notwithstanding paragraph (2), a court may not impose any civil penalty on a person for a
violation of §1681s-2(a)(1) of this title unless the person has been enjoined from committing
the violation, or ordered not to commit the violation, in an action or proceeding brought by or
on behalf of the Federal Trade Commission, and has violated the injunction or order and the
court may not impose any civil penalty for any violation occurring before the date of the
violation of the injunction or order.
(4) Neither the Commission nor any other agency referred to in subsection (b) of this section
may prescribe trade regulation rules or other regulations with respect to this subchapter.
(b) Enforcement by other agencies. Compliance with the requirements imposed under this
subchapter with respect to consumer reporting agencies, persons who use consumer reports
from such agencies, persons who furnish information to such agencies, and users of
information that are subject to subsection (d) of §1681m of this title shall be enforced under
(1) section 8 of the Federal Deposit Insurance Act [12 U.S.C. §1818], in case of
(A) national banks, and Federal branches and Federal agencies of foreign banks, by the Office
of the Comptroller of the Currency;
(B) member banks of the Federal Reserve System (other than national banks), branches and
agencies of foreign banks (other than Federal branches, Federal agencies, and insured State
branches of foreign banks), commercial lending companies owned or controlled by foreign
banks, and organizations operating under section 25 or 25(a) 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 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) part A of subtitle VII of title 49, by the Secretary of Transportation with respect to any air
carrier or foreign air carrier subject to that part; and
(6) the Packers and Stockyards Act, 1921 [7 U.S.C. §§181 et seq.] (except as provided in
section 406 of that Act [7 U.S.C. §§226 and 227]), by the Secretary of Agriculture with
respect to any activities subject to that Act.
The terms used in paragraph (1) that are not defined in this title or otherwise defined in
section 3(s) of the Federal Deposit Insurance Act (12 U.S.C. §1813(s)) shall have the meaning
given to them in section 1(b) of the International Banking Act of 1978 (12 U.S.C. §3101).
(c) State action for violations.
(1) Authority of states. In addition to such other remedies as are provided under State law, if
the chief law enforcement officer of a State, or an official or agency designated by a State, has
reason to believe that any person has violated or is violating this subchapter, the State
(A) may bring an action to enjoin such violation in any appropriate United States district court
or in any other court of competent jurisdiction;
(B) subject to paragraph (5), may bring an action on behalf of the residents of the State to
recover
(i) damages for which the person is liable to such residents under §§1681n and 1681o of this
title as a result of the violation;
(ii) in the case of a violation of §1681s-2(a) of this title, damages for which the person would,
but for §1681s-2(c) of this title, be liable to such residents as a result of the violation; or
(iii) damages of not more than $1,000 for each willful or negligent violation; and
(C) in the case of any successful action under subparagraph (A) or (B), shall be awarded the
costs of the action and reasonable attorney's fees as determined by the court.
(2) Rights of federal regulators. The State shall serve prior written notice of any action under
paragraph (1) upon the Federal Trade Commission or the appropriate Federal regulator
determined under subsection (b) of this section and provide the Commission or appropriate
Federal regulator with a copy of its complaint, except in any case in which such prior notice is
not feasible, in which case the State shall serve such notice immediately upon instituting such
action. The Federal Trade Commission or appropriate Federal regulator shall have the right
(A) to intervene in the action;
(B) upon so intervening, to be heard on all matters arising therein;
(C) to remove the action to the appropriate United States district court; and
(D) to file petitions for appeal.
(3) Investigatory powers. For purposes of bringing any action under this subsection, nothing
in this subsection shall prevent the chief law enforcement officer, or an official or agency
designated by a State, from exercising the powers conferred on the chief law enforcement
officer or such official by the laws of such State to conduct investigations or to administer
oaths or affirmations or to compel the attendance of witnesses or the production of
documentary and other evidence.
(4) Limitation on state actions while federal action pending. If the Federal Trade Commission or
the appropriate Federal regulator has instituted a civil action or an administrative action under
section 8 of the Federal Deposit Insurance Act [12 U.S.C. §1818] for a violation of this
subchapter, no State may, during the pendency of such action, bring an action under this
section against any defendant named in the complaint of the Commission or the appropriate
Federal regulator for any violation of this subchapter that is alleged in that complaint.
(5) Limitations on state actions for violation of §1681s-2(a)(1).
(A) Violation of injunction required. A State may not bring an action against a person under
paragraph (1)(B) for a violation of §1681s-2(a)(1) of this title, unless
(i) the person has been enjoined from committing the violation, in an action brought by the
State under paragraph (1)(A); and
(ii) the person has violated the injunction.
(B) Limitation on damages recoverable. In an action against a person under paragraph (1)(B)
for a violation of §1681s-2(a)(1) of this title, a State may not recover any damages incurred
before the date of the violation of an injunction on which the action is based.
(d) Enforcement under other authority. For the purpose of the exercise by any agency
referred to in subsection (b) of this section of its powers under any Act referred to in that
subsection, a violation of any requirement imposed under this subchapter shall be deemed to
be a violation of a requirement imposed under that Act. In addition to its power under any
provision of law specifically referred to in subsection (b) of this section, each of the agencies
referred to in that subsection may exercise, for the purpose of enforcing compliance with any
requirement imposed under this subchapter any other authority conferred on it by law.
Notwithstanding the preceding, no agency referred to in subsection (b) of this section may
conduct an examination of a bank, savings association, or credit union regarding compliance
with the provisions of this subchapter, except in response to a complaint (or if the agency
otherwise has knowledge) that the bank, savings association, or credit union has violated a
provision of this subchapter, in which case, the agency may conduct an examination as
necessary to investigate the complaint. If an agency determines during an investigation in
response to a complaint that a violation of this subchapter has occurred, the agency may,
during its next 2 regularly scheduled examinations of the bank, savings association, or credit
union, examine for compliance with this subchapter.
(e) Interpretive authority. The Board of Governors of the Federal Reserve System may issue
interpretations of any provision of this subchapter as such provision may apply to any
persons identified under paragraphs (1), (2), and (3) of subsection (b), or to the holding
companies and affiliates of such persons, in consultation with Federal agencies identified in
paragraphs (1), (2) and (3) of subsection (b).
1681s-1. Information on overdue child support obligations
Notwithstanding any other provision of this title, a consumer reporting agency shall include in
any consumer report furnished by the agency in accordance with §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.
1681s-2. Responsibilities of furnishers of information to consumer reporting agencies
(a) Duty of furnishers of information to provide accurate information.
(1) Prohibition.
(A) Reporting information with actual knowledge of errors. A person shall not furnish any
information relating to a consumer to any consumer reporting agency if the person knows or
consciously avoids knowing that the information is inaccurate.
(B) Reporting information after notice and confirmation of errors. A person shall not furnish
information relating to a consumer to any consumer reporting agency if
(i) the person has been notified by the consumer, at the address specified by the person for
such notices, that specific information is inaccurate; and
(ii) the information is, in fact, inaccurate.
(C) No address requirement. A person who clearly and conspicuously specifies to the
consumer an address for notices referred to in subparagraph (B) shall not be subject to
subparagraph (A); however, nothing in subparagraph (B) shall require a person to specify
such an address.
(2) Duty to correct and update information. A person who
(A) regularly and in the ordinary course of business furnishes information to one or more
consumer reporting agencies about the person's transactions or experiences with any
consumer; and
(B) has furnished to a consumer reporting agency information that the person determines is
not complete or accurate,
shall promptly notify the consumer reporting agency of that determination and provide to the
agency any corrections to that information, or any additional information, that is necessary to
make the information provided by the person to the agency complete and accurate, and shall
not thereafter furnish to the agency any of the information that remains not complete or
accurate.
(3) Duty to provide notice of dispute. If the completeness or accuracy of any information
furnished by any person to any consumer reporting agency is disputed to such person by a
consumer, the person may not furnish the information to any consumer reporting agency
without notice that such information is disputed by the consumer.
(4) Duty to provide notice of closed accounts. A person who regularly and in the ordinary
course of business furnishes information to a consumer reporting agency regarding a
consumer who had a credit account with that person shall notify the agency of the voluntary
closure of the account by the consumer, in information regularly furnished for the period in
which the account is closed.
(5) Duty to provide notice of delinquency of accounts. A person who furnishes information to
a consumer reporting agency regarding a delinquent account being placed for collection,
charged to profit or loss, or subjected to any similar action shall, not later than 90 days after
furnishing the information, notify the agency of the month and year of the commencement of
the delinquency that immediately preceded the action.
(b) Duties of furnishers of information upon notice of dispute.
(1) In general. After receiving notice pursuant to §1681i(a)(2) of this title of a dispute with
regard to the completeness or accuracy of any information provided by a person to a
consumer reporting agency, the person shall
(A) conduct an investigation with respect to the disputed information;
(B) review all relevant information provided by the consumer reporting agency pursuant to
§1681i(a)(2) of this title;
(C) report the results of the investigation to the consumer reporting agency; and
(D) if the investigation finds that the information is incomplete or inaccurate, report those
results to all other consumer reporting agencies to which the person furnished the information
and that compile and maintain files on consumers on a nationwide basis.
(2) Deadline. A person shall complete all investigations, reviews, and reports required under
paragraph (1) regarding information provided by the person to a consumer reporting agency,
before the expiration of the period under §1681i(a)(1) of this title within which the consumer
reporting agency is required to complete actions required by that section regarding that
information.
(c) Limitation on liability. §§1681n and 1681o of this title do not apply to any failure to comply
with subsection (a), except as provided in §1681s(c)(1)(B) of this title.
(d) Limitation on enforcement. Subsection (a) of this section shall be enforced exclusively
under §1681s of this title by the Federal agencies and officials and the State officials identified
in that section.
1681t. Relation to State laws
(a) In general. Except as provided in subsections (b) and (c) of this section, this subchapter
does not annul, alter, affect, or exempt any person subject to the provisions of this
subchapter from complying with the laws of any State with respect to the collection,
distribution, or use of any information on consumers, except to the extent that those laws
are inconsistent with any provision of this subchapter, and then only to the extent of the
inconsistency.
(b) General exceptions. No requirement or prohibition may be imposed under the laws of any
State
(1) with respect to any subject matter regulated under
(A) subsection (c) or (e) of §1681b of this title relating to the prescreening of consumer
reports;
(B) §1681i of this title, relating to the time by which a consumer reporting agency must take
any action, including the provision of notification to a consumer or other person, in any
procedure related to the disputed accuracy of information in a consumer's file, except that this
subparagraph shall not apply to any State law in effect on September 30, 1996;
(C) subsections (a) and (b) of §1681m of this title, relating to the duties of a person who
takes any adverse action with respect to a consumer;
(D) §1681m(d) of this title, relating to the duties of persons who use a consumer report of a
consumer in connection with any credit or insurance transaction that is not initiated by the
consumer and that consists of a firm offer of credit or insurance;
(E) §1681c of this title, relating to information contained in consumer reports, except that this
subparagraph shall not apply to any State law in effect on September 30, 1996; or
(F) §1681s-2 of this title, relating to the responsibilities of persons who furnish information to
consumer reporting agencies, except that this paragraph shall not apply
(i) with respect to section 54A(a) of chapter 93 of the Massachusetts Annotated Laws (as in
effect on September 30, 1996); or
(ii) with respect to section 1785.25(a) of the California Civil Code (as in effect on September
30, 1996);
(2) with respect to the exchange of information among persons affiliated by common
ownership or common corporate control, except that this paragraph shall not apply with
respect to subsection (a) or (c)(1) of section 2480e of title 9, Vermont Statutes Annotated
(as in effect on September 30, 1996); or
(3) with respect to the form and content of any disclosure required to be made under
§1681g(c) of this title.
(c) "Firm offer of credit or insurance" defined. Notwithstanding any definition of the term "firm
offer of credit or insurance" (or any equivalent term) under the laws of any State, the
definition of that term contained in §1681a(l) of this title shall be construed to apply in the
enforcement and interpretation of the laws of any State governing consumer reports.
(d) Limitations. Subsections (b) and (c) of this section
(1) do not affect any settlement, agreement, or consent judgment between any State
Attorney General and any consumer reporting agency in effect on September 30, 1996; and
(2) do not apply to any provision of State law (including any provision of a State constitution)
that
(A) is enacted after January 1, 2004;
(B) states explicitly that the provision is intended to supplement this subchapter; and
(C) gives greater protection to consumers than is provided under this subchapter.
1681u. Disclosures to FBI for counterintelligence purposes
(a) Identity of financial institutions. Notwithstanding §1681b of this title or any other provision
of this subchapter, a consumer reporting agency shall furnish to the Federal Bureau of
Investigation the names and addresses of all financial institutions (as that term is defined in
section 1101 of the Right to Financial Privacy Act of 1978 [12 U.S.C. §3401]) at which a
consumer maintains or has maintained an account, to the extent that information is in the files
of the agency, when presented with a written request for that information, signed by the
Director of the Federal Bureau of Investigation, or the Director's designee, which certifies
compliance with this section. The Director or the Director's designee may make such a
certification only if the Director or the Director's designee has determined in writing that
(1) such information is necessary for the conduct of an authorized foreign counterintelligence
investigation; and
(2) there are specific and articulable facts giving reason to believe that the consumer
(A) is a foreign power (as defined in section 101 of the Foreign Intelligence Surveillance Act of
1978 [50 U.S.C. §1801]) or a person who is not a United States person (as defined in such
section 101) and is an official of a foreign power; or
(B) is an agent of a foreign power and is engaging or has engaged in an act of international
terrorism (as that term is defined in section 101(c) of the Foreign Intelligence Surveillance Act
of 1978 [50 U.S.C. §1801(c)]) or clandestine intelligence activities that involve or may involve
a violation of criminal statutes of the United States.
(b) Identifying information. Notwithstanding the provisions of §1681b of this title or any other
provision of this subchapter, a consumer reporting agency shall furnish identifying information
respecting a consumer, limited to name, address, former addresses, places of employment, or
former places of employment, to the Federal Bureau of Investigation when presented with a
written request, signed by the Director or the Director's designee, which certifies compliance
with this subsection. The Director or the Director's designee may make such a certification
only if the Director or the Director's designee has determined in writing that
(1) such information is necessary to the conduct of an authorized counterintelligence
investigation; and
(2) there is information giving reason to believe that the consumer has been, or is about to
be, in contact with a foreign power or an agent of a foreign power (as defined in section 101
of the Foreign Intelligence Surveillance Act of 1978 [50 U.S.C. §1801]).
(c) Court order for disclosure of consumer reports. Notwithstanding §1681b of this title or
any other provision of this subchapter, if requested in writing by the Director of the Federal
Bureau of Investigation, or a designee of the Director, a court may issue an order ex parte
directing a consumer reporting agency to furnish a consumer report to the Federal Bureau of
Investigation, upon a showing in camera that
(1) the consumer report is necessary for the conduct of an authorized foreign
counterintelligence investigation; and
(2) there are specific and articulable facts giving reason to believe that the consumer whose
consumer report is sought
(A) is an agent of a foreign power; and
(B) is engaging or has engaged in an act of international terrorism (as that term is defined in
section 101(c) of the Foreign Intelligence Surveillance Act of 1978 [50 U.S.C. §1801(c)]) or
clandestine intelligence activities that involve or may involve a violation of criminal statutes of
the United States.
The terms of an order issued under this subsection shall not disclose that the order is issued
for purposes of a counterintelligence investigation.
(d) Confidentiality. No consumer reporting agency or officer, employee, or agent of a
consumer reporting agency shall disclose to any person, other than those officers, employees,
or agents of a consumer reporting agency necessary to fulfill the requirement to disclose
information to the Federal Bureau of Investigation under this section, that the Federal Bureau
of Investigation has sought or obtained the identity of financial institutions or a consumer
report respecting any consumer under subsection (a), (b), or (c) of this section, and no
consumer reporting agency or officer, employee, or agent of a consumer reporting agency
shall include in any consumer report any information that would indicate that the Federal
Bureau of Investigation has sought or obtained such information or a consumer report.
(e) Payment of fees. The Federal Bureau of Investigation shall, subject to the availability of
appropriations, pay to the consumer reporting agency assembling or providing a report or
information in accordance with procedures established under this section a fee for
reimbursement for such costs as are reasonably necessary and which have been directly
incurred in searching, reproducing, or transporting books, papers, records, or other data
required or requested to be produced under this section.
(f) Limitation on dissemination. The Federal Bureau of Investigation may not disseminate
information obtained pursuant to this section outside of the Federal Bureau of Investigation,
except to other Federal agencies as may be necessary for the approval or conduct of a foreign
counterintelligence investigation, or, where the information concerns a person subject to the
Uniform Code of Military Justice, to appropriate investigative authorities within the military
department concerned as may be necessary for the conduct of a joint foreign
counterintelligence investigation.
(g) Rules of construction. Nothing in this section shall be construed to prohibit information
from being furnished by the Federal Bureau of Investigation pursuant to a subpoena or court
order, in connection with a judicial or administrative proceeding to enforce the provisions of
this subchapter. Nothing in this section shall be construed to authorize or permit the
withholding of information from the Congress.
(h) Reports to Congress. On a semiannual basis, the Attorney General shall fully inform the
Permanent Select Committee on Intelligence and the Committee on Banking, Finance and
Urban Affairs of the House of Representatives, and the Select Committee on Intelligence and
the Committee on Banking, Housing, and Urban Affairs of the Senate concerning all requests
made pursuant to subsections (a), (b), and (c) of this section.
(i) Damages. Any agency or department of the United States obtaining or disclosing any
consumer reports, records, or information contained therein in violation of this section is liable
to the consumer to whom such consumer reports, records, or information relate in an amount
equal to the sum of
(1) $100, without regard to the volume of consumer reports, records, or information involved;
(2) any actual damages sustained by the consumer as a result of the disclosure;
(3) if the violation is found to have been willful or intentional, such punitive damages as a
court may allow; and
(4) in the case of any successful action to enforce liability under this subsection, the costs of
the action, together with reasonable attorney fees, as determined by the court.
(j) Disciplinary actions for violations. If a court determines that any agency or department of
the United States has violated any provision of this section and the court finds that the
circumstances surrounding the violation raise questions of whether or not an officer or
employee of the agency or department acted willfully or intentionally with respect to the
violation, the agency or department shall promptly initiate a proceeding to determine whether
or not disciplinary action is warranted against the officer or employee who was responsible for
the violation.
(k) Good-faith exception. Notwithstanding any other provision of this subchapter, any
consumer reporting agency or agent or employee thereof making disclosure of consumer
reports or identifying information pursuant to this subsection in good-faith reliance upon a
certification of the Federal Bureau of Investigation pursuant to provisions of this section shall
not be liable to any person for such disclosure under this subchapter, the constitution of any
State, or any law or regulation of any State or any political subdivision of any State.
(l) Limitation of remedies. Notwithstanding any other provision of this subchapter, the
remedies and sanctions set forth in this section shall be the only judicial remedies and
sanctions for violation of this section.
(m) Injunctive relief. In addition to any other remedy contained in this section, injunctive relief
shall be available to require compliance with the procedures of this section. In the event of any
successful action under this subsection, costs together with reasonable attorney fees, as
determined by the court, may be recovered.
| "The Fair Credit Reporting Act (FCRA) is an American federal law (codified at 15 U.S.C. § 1681 et seq.) that regulates the collection, dissemination, and use of consumer credit information. Along with the Fair Debt Collection Practices Act (FDCPA), it forms the base of consumer credit rights in the United States." From Wikipedia's Fair Credit Reporting Act page. |