FAIR DEBT COLLECTION PRACTICES ACT
15 USC Section 1692

THE FAIR DEBT COLLECTION PRACTICES ACT
As amended by Public Law 104-208, 110 Stat. 3009 (Sept. 30, 1996)

To amend the Consumer Credit Protection Act to prohibit abusive practices by debt collectors.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) is amended by adding at the end thereof the following new title:
TITLE VIII - DEBT COLLECTION PRACTICES [Fair Debt Collection Practices Act]
Sec.
801. Short Title
802. Congressional findings and declaration of purpose
803. Definitions
804. Acquisition of location information
805. Communication in connection with debt collection
806. Harassment or abuse
807. False or misleading representations
808. Unfair practice
809. Validation of debts
810. Multiple debts
811. Legal actions by debt collectors
812. Furnishing certain deceptive forms
813. Civil liability
814. Administrative enforcement
815. Reports to Congress by the Commission
816. Relation to State laws
817. Exemption for State regulation
818. Effective date
¤ 801. Short Title [15 USC 1601 note]
This title may be cited as the "Fair Debt Collection Practices Act."
¤ 802. Congressional findings and declarations of purpose [15 USC 1692]
(a) There is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy.
(b) Existing laws and procedures for redressing these injuries are inadequate to protect consumers.
(c) Means other than misrepresentation or other abusive debt collection practices are available for the effective collection of debts.
(d) Abusive debt collection practices are carried on to a substantial extent in interstate commerce and through means and instrumentalities of such commerce. Even where abusive debt collection practices are purely intrastate in character, they nevertheless directly affect interstate commerce.
(e) It is the purpose of this title to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.
¤ 803. Definitions [15 USC 1692a]
As used in this title --
(1) The term "Commission" means the Federal Trade Commission.
(2) The term "communication" means the conveying of information regarding a debt directly or indirectly to any person through any medium.
(3) The term "consumer" means any natural person obligated or allegedly obligated to pay any debt.
(4) The term "creditor" means any person who offers or extends credit creating a debt or to whom a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another.
(5) The term "debt" means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment.
(6) The term "debt collector" means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. Notwithstanding the exclusion provided by clause (F) of the last sentence of this paragraph, the term includes any creditor who, in the process of collecting his own debts, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts. For the purpose of section 808(6), such term also includes any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the enforcement of security interests. The term does not include --
(A) any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor;
(B) any person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for persons to whom it is so related or affiliated and if the principal business of such person is not the collection of debts;
(C) any officer or employee of the United States or any State to the extent that collecting or attempting to collect any debt is in the performance of his official duties;
(D) any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt;
(E) any nonprofit organization which, at the request of consumers, performs bona fide consumer credit counseling and assists consumers in the liquidation of their debts by receiving payments from such consumers and distributing such amounts to creditors; and
(F) any person collecting or attempting to collect any debt owed or due or asserted to be owed or due another to the extent such activity (i) is incidental to a bona fide fiduciary obligation or a bona fide escrow arrangement; (ii) concerns a debt which was originated by such person; (iii) concerns a debt which was not in default at the time it was obtained by such person; or (iv) concerns a debt obtained by such person as a secured party in a commercial credit transaction involving the creditor.
(7) The term "location information" means a consumer's place of abode and his telephone number at such place, or his place of employment.
(8) The term "State" means any State, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any political subdivision of any of the foregoing.
¤ 804. Acquisition of location information [15 USC 1692b]
Any debt collector communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shall --
(1) identify himself, state that he is confirming or correcting location information concerning the consumer, and, only if expressly requested, identify his employer;
(2) not state that such consumer owes any debt;
(3) not communicate with any such person more than once unless requested to do so by such person or unless the debt collector reasonably believes that the earlier response of such person is erroneous or incomplete and that such person now has correct or complete location information;
(4) not communicate by post card;
(5) not use any language or symbol on any envelope or in the contents of any communication effected by the mails or telegram that indicates that the debt collector is in the debt collection business or that the communication relates to the collection of a debt; and
(6) after the debt collector knows the consumer is represented by an attorney with regard to the subject debt and has knowledge of, or can readily ascertain, such attorney's name and address, not communicate with any person other than that attorney, unless the attorney fails to respond within a reasonable period of time to the communication from the debt collector.
¤ 805. Communication in connection with debt collection [15 USC 1692c]
(a) COMMUNICATION WITH THE CONSUMER GENERALLY. Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of any debt --
(1) at any unusual time or place or a time or place known or which should be known to be inconvenient to the consumer. In the absence of knowledge of circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a consumer is after 8 o'clock antimeridian and before 9 o'clock postmeridian, local time at the consumer's location;
(2) if the debt collector knows the consumer is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney's name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the debt collector or unless the attorney consents to direct communication with the consumer; or
(3) at the consumer's place of employment if the debt collector knows or has reason to know that the consumer's employer prohibits the consumer from receiving such communication.
(b) COMMUNICATION WITH THIRD PARTIES. Except as provided in section 804, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than a consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector.
(c) CEASING COMMUNICATION. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except --
(1) to advise the consumer that the debt collector's further efforts are being terminated;
(2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or
(3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.
If such notice from the consumer is made by mail, notification shall be complete upon receipt.
(d) For the purpose of this section, the term "consumer" includes the consumer's spouse, parent (if the consumer is a minor), guardian, executor, or administrator.
¤ 806. Harassment or abuse [15 USC 1692d]
A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person.
(2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.
(3) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency or to persons meeting the requirements of section 603(f) or 604(3)1 of this Act.
(4) The advertisement for sale of any debt to coerce payment of the debt.
(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.
(6) Except as provided in section 804, the placement of telephone calls without meaningful disclosure of the caller's identity.
¤ 807. False or misleading representations [15 USC 1962e]
A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof.
(2) The false representation of --
(A) the character, amount, or legal status of any debt; or
(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.
(3) The false representation or implication that any individual is an attorney or that any communication is from an attorney.
(4) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action.
(5) The threat to take any action that cannot legally be taken or that is not intended to be taken.
(6) The false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to --
(A) lose any claim or defense to payment of the debt; or
(B) become subject to any practice prohibited by this title.
(7) The false representation or implication that the consumer committed any crime or other conduct in order to disgrace the consumer.
(8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.
(9) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.
(10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.
(11) The failure to disclose in the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral, in that initial oral communication, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except that this paragraph shall not apply to a formal pleading made in connection with a legal action.
(12) The false representation or implication that accounts have been turned over to innocent purchasers for value.
(13) The false representation or implication that documents are legal process.
(14) The use of any business, company, or organization name other than the true name of the debt collector's business, company, or organization.
(15) The false representation or implication that documents are not legal process forms or do not require action by the consumer.
(16) The false representation or implication that a debt collector operates or is employed by a consumer reporting agency as defined by section 603(f) of this Act.
¤ 808. Unfair practices [15 USC 1692f]
A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.
(2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit.
(3) The solicitation by a debt collector of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution.
(4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument.
(5) Causing charges to be made to any person for communications by concealment of the true propose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees.
(6) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if --
(A) there is no present right to possession of the property claimed as collateral through an enforceable security interest;
(B) there is no present intention to take possession of the property; or
(C) the property is exempt by law from such dispossession or disablement.
(7) Communicating with a consumer regarding a debt by post card.
(8) Using any language or symbol, other than the debt collector's address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business.
¤ 809. Validation of debts [15 USC 1692g]
(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --
(1) the amount of the debt;
(2) the name of the creditor to whom the debt is owed;
(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;
(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and
(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.
(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.
¤ 810. Multiple debts [15 USC 1692h]
If any consumer owes multiple debts and makes any single payment to any debt collector with respect to such debts, such debt collector may not apply such payment to any debt which is disputed by the consumer and, where applicable, shall apply such payment in accordance with the consumer's directions.
¤ 811. Legal actions by debt collectors [15 USC 1692i]
(a) Any debt collector who brings any legal action on a debt against any consumer shall --
(1) in the case of an action to enforce an interest in real property securing the consumer's obligation, bring such action only in a judicial district or similar legal entity in which such real property is located; or
(2) in the case of an action not described in paragraph (1), bring such action only in the judicial district or similar legal entity --
(A) in which such consumer signed the contract sued upon; or
(B) in which such consumer resides at the commencement of the action.
(b) Nothing in this title shall be construed to authorize the bringing of legal actions by debt collectors.
¤ 812. Furnishing certain deceptive forms [15 USC 1692j]
(a) It is unlawful to design, compile, and furnish any form knowing that such form would be used to create the false belief in a consumer that a person other than the creditor of such consumer is participating in the collection of or in an attempt to collect a debt such consumer allegedly owes such creditor, when in fact such person is not so participating.
(b) Any person who violates this section shall be liable to the same extent and in the same manner as a debt collector is liable under section 813 for failure to comply with a provision of this title.
¤ 813. Civil liability [15 USC 1692k]
(a) Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this title with respect to any person is liable to such person in an amount equal to the sum of --
(1) any actual damage sustained by such person as a result of such failure;
(2) (A) in the case of any action by an individual, such additional damages as the court may allow, but not exceeding $1,000; or
(B) in the case of a class action, (i) such amount for each named plaintiff as could be recovered under subparagraph (A), and (ii) such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed the lesser of $500,000 or 1 per centum of the net worth of the debt collector; and
(3) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney's fee as determined by the court. On a finding by the court that an action under this section was brought in bad faith and for the purpose of harassment, the court may award to the defendant attorney's fees reasonable in relation to the work expended and costs.
(b) In determining the amount of liability in any action under subsection (a), the court shall consider, among other relevant factors --
(1) in any individual action under subsection (a)(2)(A), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, and the extent to which such noncompliance was intentional; or
(2) in any class action under subsection (a)(2)(B), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, the resources of the debt collector, the number of persons adversely affected, and the extent to which the debt collector's noncompliance was intentional.
(c) A debt collector may not be held liable in any action brought under this title if the debt collector shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
(d) An action to enforce any liability created by this title may be brought in any appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction, within one year from the date on which the violation occurs.
(e) No provision of this section imposing any liability shall apply to any act done or omitted in good faith in conformity with any advisory opinion of the Commission, notwithstanding that after such act or omission has occurred, such opinion is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.
¤ 814. Administrative enforcement [15 USC 1692l]
(a) Compliance with this title shall be enforced by the Commission, except to the extend that enforcement of the requirements imposed under this title is specifically committed to another agency under subsection (b). For purpose of the exercise by the Commission of its functions and powers under the Federal Trade Commission Act, a violation of this title shall be deemed an unfair or deceptive act or practice in violation of that Act. All of the functions and powers of the Commission under the Federal Trade Commission Act are available to the Commission to enforce compliance by any person with this title, irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests in the Federal Trade Commission Act, including the power to enforce the provisions of this title in the same manner as if the violation had been a violation of a Federal Trade Commission trade regulation rule.
(b) Compliance with any requirements imposed under this title shall be enforced under --
(1) section 8 of the Federal Deposit Insurance Act, in the case of --
(A) national banks, by the Comptroller of the Currency;
(B) member banks of the Federal Reserve System (other than national banks), by the Federal Reserve Board; and
(C) banks the deposits or accounts of which are insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System), by the Board of Directors of the Federal Deposit Insurance Corporation;
(2) section 5(d) of the Home Owners Loan Act of 1933, section 407 of the National Housing Act, and sections 6(i) and 17 of the Federal Home Loan Bank Act, by the Federal Home Loan Bank Board (acting directing or through the Federal Savings and Loan Insurance Corporation), in the case of any institution subject to any of those provisions;
(3) the Federal Credit Union Act, by the Administrator of the National Credit Union Administration with respect to any Federal credit union;
(4) subtitle IV of Title 49, by the Interstate Commerce Commission with respect to any common carrier subject to such subtitle;
(5) the Federal Aviation Act of 1958, by the Secretary of Transportation with respect to any air carrier or any foreign air carrier subject to that Act; and
(6) the Packers and Stockyards Act, 1921 (except as provided in section 406 of that Act), by the Secretary of Agriculture with respect to any activities subject to that Act.
(c) For the purpose of the exercise by any agency referred to in subsection (b) of its powers under any Act referred to in that subsection, a violation of any requirement imposed under this title shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any provision of law specifically referred to in subsection (b), each of the agencies referred to in that subsection may exercise, for the purpose of enforcing compliance with any requirement imposed under this title any other authority conferred on it by law, except as provided in subsection (d).
(d) Neither the Commission nor any other agency referred to in subsection (b) may promulgate trade regulation rules or other regulations with respect to the collection of debts by debt collectors as defined in this title.
¤ 815. Reports to Congress by the Commission [15 USC 1692m]
(a) Not later than one year after the effective date of this title and at one-year intervals thereafter, the Commission shall make reports to the Congress concerning the administration of its functions under this title, including such recommendations as the Commission deems necessary or appropriate. In addition, each report of the Commission shall include its assessment of the extent to which compliance with this title is being achieved and a summary of the enforcement actions taken by the Commission under section 814 of this title.
(b) In the exercise of its functions under this title, the Commission may obtain upon request the views of any other Federal agency which exercises enforcement functions under section 814 of this title.
¤ 816. Relation to State laws [15 USC 1692n]
This title does not annul, alter, or affect, or exempt any person subject to the provisions of this title from complying with the laws of any State with respect to debt collection practices, except to the extent that those laws are inconsistent with any provision of this title, and then only to the extent of the inconsistency. For purposes of this section, a State law is not inconsistent with this title if the protection such law affords any consumer is greater than the protection provided by this title.
¤ 817. Exemption for State regulation [15 USC 1692o]
The Commission shall by regulation exempt from the requirements of this title any class of debt collection practices within any State if the Commission determines that under the law of that State that class of debt collection practices is subject to requirements substantially similar to those imposed by this title, and that there is adequate provision for enforcement.
¤ 818. Effective date [15 USC 1692 note]
This title takes effect upon the expiration of six months after the date of its enactment, but section 809 shall apply only with respect to debts for which the initial attempt to collect occurs after such effective date.
Approved September 20, 1977

ENDNOTES
1. So in original; however, should read "604(a)(3)."

LEGISLATIVE HISTORY:
Public Law 95-109 [H.R. 5294]
HOUSE REPORT No. 95-131 (Comm. on Banking, Finance, and Urban Affairs).
SENATE REPORT No. 95-382 (Comm. on Banking, Housing, and Urban Affairs).
CONGRESSIONAL RECORD, Vol. 123 (1977):
Apr. 4, considered and passed House.
Aug. 5, considered and passed Senate, amended.
Sept. 8, House agreed to Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 39:
Sept. 20, Presidential statement.
AMENDMENTS:
SECTION 621, SUBSECTIONS (b)(3), (b)(4) and (b)(5) were amended to transfer certain administrative enforcement responsibilities, pursuant to Pub. L. 95-473, ¤ 3(b), Oct. 17, 1978. 92 Stat. 166; Pub. L. 95-630, Title V. ¤ 501, November 10, 1978, 92 Stat. 3680; Pub. L. 98-443, ¤ 9(h), Oct. 4, 1984, 98 Stat. 708.
SECTION 803, SUBSECTION (6), defining "debt collector," was amended to repeal the attorney at law exemption at former Section (6)(F) and to redesignate Section 803(6)(G) pursuant to Pub. L. 99-361, July 9, 1986, 100 Stat. 768. For legislative history, see H.R. 237, HOUSE REPORT No. 99-405 (Comm. on Banking, Finance and Urban Affairs). CONGRESSIONAL RECORD: Vol. 131 (1985): Dec. 2, considered and passed House. Vol. 132 (1986): June 26, considered and passed Senate.
SECTION 807, SUBSECTION (11), was amended to affect when debt collectors must state (a) that they are attempting to collect a debt and (b) that information obtained will be used for that purpose, pursuant to Pub. L. 104-208 ¤ 2305, 110 Stat. 3009 (Sept. 30, 1996).

Fair Credit Reporting Act (FCRA)

Fair Credit Reporting Act (15 U.S.C. §§ 1681-1681(v), as amended)

The Act protects information collected by consumer reporting agencies such as credit bureaus, medical information companies and tenant screening services. Information in a consumer report cannot be provided to anyone who does not have a purpose specified in the Act. Companies that provide information to consumer reporting agencies also have specific legal obligations, including the duty to investigate disputed information. Also, users of the information for credit, insurance, or employment purposes must notify the consumer when an adverse action is taken on the basis of such reports. Further, users must identify the company that provided the report, so that the accuracy and completeness of the report may be verified or contested by the consumer.

Under the Fair Credit Reporting Act, you have the right to the following:

Know all the information that's in your credit report. In most cases, you have the right to know the source of that information
Obtain a free copy of your report within 60 days of a credit denial. Otherwise, the credit bureau may charge you a nominal fee for this service. Know who has requested your report in the last year.
Confidentiality of personal medical information. Such information can only be released with your permission. Approve access to your credit record by prospective employers. Have the credit bureau investigate an error in your report. You must notify the bureau of your dispute in writing. The credit bureau must notify you within five days of a completed investigation and fix mistakes in your record within 30 days. Then it must send a corrected report to anyone who asked for a copy in the past six months. At your request, the bureau must also send a revised report to potential employers who have requested it within the past two years. If you disagree with the credit bureau's conclusion, you have a right to include a brief explanation in your credit report. Request credit bureaus stop selling your name to companies that make pre-approved credit offers.

Fair Credit Reporting Act

United States Code
TITLE 15 - COMMERCE AND TRADE
CHAPTER 41 - CONSUMER CREDIT PROTECTION
SUBCHAPTER III - CREDIT REPORTING AGENCIES
Section 1681. Congressional Findings And Statement Of Purpose
Section 1681a. Definitions; Rules Of Construction
Section 1681b. Permissible Purposes Of Consumer Reports
Section 1681c. Requirements Relating To Information Contained In Consumer Reports
Section 1681d Disclosure Of Investigative Consumer Reports
Section 1681e. Compliance Procedures
Section 1681f. Disclosures To Governmental Agencies
Section 1681g. Disclosures To Consumers
Section 1681h. Conditions And Form Of Disclosure To Consumers
Section 1681i. Procedure In Case Of Disputed Accuracy
Section 1681j. Charges For Certain Disclosures
Section 1681k. Public Record Information For Employment Purposes
Section 1681l. Restrictions On Investigative Consumer Reports
Section 1681m. Requirements On Users Of Consumer Reports
Section 1681n. Civil Liability For Willful Noncompliance
Section 1681o. Civil Liability For Negligent Noncompliance
Section 1681p. Jurisdiction Of Courts; Limitation Of Actions
Section 1681q. Obtaining Information Under False Pretenses
Section 1681r. Unauthorized Disclosures By Officers Or Employees
Section 1681s. Administrative Enforcement
Section 1681s-1. Information On Overdue Child Support Obligations
Section 1681s-2. Responsibilities Of Furnishers Of Information To Consumer Reporting Agencies
Section 1681t. Relation To State Laws
Section 1681u. Disclosures To FBI For Counterintelligence Purposes
Section 1681v. Disclosures To Governmental Agencies For Counterterrorism Purposes

Section 1681. Congressional findings and statement of purpose

(a) Accuracy and fairness of credit reporting
The Congress makes the following findings:
(1) The banking system is dependent upon fair and accurate credit
reporting. Inaccurate credit reports directly impair the
efficiency of the banking system, and unfair credit reporting
methods undermine the public confidence which is essential to the
continued functioning of the banking system.
(2) An elaborate mechanism has been developed for investigating
and evaluating the credit worthiness, (FOOTNOTE 1) credit standing,
credit capacity, character, and general reputation of consumers.
(FOOTNOTE 1) So in original. Probably should be
''creditworthiness,''.
(3) Consumer reporting agencies have assumed a vital role in
assembling and evaluating consumer credit and other information on
consumers.
(4) There is a need to insure that consumer reporting agencies
exercise their grave responsibilities with fairness, impartiality,
and a respect for the consumer's right to privacy.
(b) Reasonable procedures
It is the purpose of this subchapter to require that consumer
reporting agencies adopt reasonable procedures for meeting the
needs of commerce for consumer credit, personnel, insurance, and
other information in a manner which is fair and equitable to the
consumer, with regard to the confidentiality, accuracy, relevancy,
and proper utilization of such information in accordance with the
requirements of this subchapter.

Section 1681a. Definitions; rules of construction

(a) Definitions and rules of construction set forth in this
section are applicable for the purposes of this subchapter.
(b) The term ''person'' means any individual, partnership,
corporation, trust, estate, cooperative, association, government or
governmental subdivision or agency, or other entity.
(c) The term ''consumer'' means an individual.
(d) Consumer Report. -
(1) In general. - The term ''consumer report'' means any
written, oral, or other communication of any information by a
consumer reporting agency bearing on a consumer's credit
worthiness, (FOOTNOTE 1) credit standing, credit capacity,
character, general reputation, personal characteristics, or mode
of living which is used or expected to be used or collected in
whole or in part for the purpose of serving as a factor in
establishing the consumer's eligibility for -
(FOOTNOTE 1) So in original. Probably should be
''creditworthiness,''.
(A) credit or insurance to be used primarily for personal,
family, or household purposes;
(B) employment purposes; or
(C) any other purpose authorized under section 1681b of this
title.
(2) Exclusions. - The term ''consumer report'' does not include
-
(A) any -
(i) report containing information solely as to transactions
or experiences between the consumer and the person making the
report;
(ii) communication of that information among persons
related by common ownership or affiliated by corporate
control; or
(iii) communication of other information among persons
related by common ownership or affiliated by corporate
control, if it is clearly and conspicuously disclosed to the
consumer that the information may be communicated among such
persons and the consumer is given the opportunity, before the
time that the information is initially communicated, to
direct that such information not be communicated among such
persons;
(B) any authorization or approval of a specific extension of
credit directly or indirectly by the issuer of a credit card or
similar device;
(C) any report in which a person who has been requested by a
third party to make a specific extension of credit directly or
indirectly to a consumer conveys his or her decision with
respect to such request, if the third party advises the
consumer of the name and address of the person to whom the
request was made, and such person makes the disclosures to the
consumer required under section 1681m of this title; or
(D) a communication described in subsection (o) of this
section.
(e) The term ''investigative consumer report'' means a consumer
report or portion thereof in which information on a consumer's
character, general reputation, personal characteristics, or mode of
living is obtained through personal interviews with neighbors,
friends, or associates of the consumer reported on or with others
with whom he is acquainted or who may have knowledge concerning any
such items of information. However, such information shall not
include specific factual information on a consumer's credit record
obtained directly from a creditor of the consumer or from a
consumer reporting agency when such information was obtained
directly from a creditor of the consumer or from the consumer.
(f) The term ''consumer reporting agency'' means any person
which, for monetary fees, dues, or on a cooperative nonprofit
basis, regularly engages in whole or in part in the practice of
assembling or evaluating consumer credit information or other
information on consumers for the purpose of furnishing consumer
reports to third parties, and which uses any means or facility of
interstate commerce for the purpose of preparing or furnishing
consumer reports.
(g) The term ''file'', when used in connection with information
on any consumer, means all of the information on that consumer
recorded and retained by a consumer reporting agency regardless of
how the information is stored.
(h) The term ''employment purposes'' when used in connection with
a consumer report means a report used for the purpose of evaluating
a consumer for employment, promotion, reassignment or retention as
an employee.
(i) The term ''medical information'' means information or records
obtained, with the consent of the individual to whom it relates,
from licensed physicians or medical practitioners, hospitals,
clinics, or other medical or medically related facilities.
(j) Definitions Relating to Child Support Obligations. -
(1) Overdue support. - The term ''overdue support'' has the
meaning given to such term in section 666(e) of title 42.
(2) State or local child support enforcement agency. - The term
''State or local child support enforcement agency'' means a State
or local agency which administers a State or local program for
establishing and enforcing child support obligations.
(k) Adverse Action. -
(1) Actions included. - The term ''adverse action'' -
(A) has the same meaning as in section 1691(d)(6) of this
title; and
(B) means -
(i) a denial or cancellation of, an increase in any charge
for, or a reduction or other adverse or unfavorable change in
the terms of coverage or amount of, any insurance, existing
or applied for, in connection with the underwriting of
insurance;
(ii) a denial of employment or any other decision for
employment purposes that adversely affects any current or
prospective employee;
(iii) a denial or cancellation of, an increase in any
charge for, or any other adverse or unfavorable change in the
terms of, any license or benefit described in section
1681b(a)(3)(D) of this title; and
(iv) an action taken or determination that is -
(I) made in connection with an application that was made
by, or a transaction that was initiated by, any consumer,
or in connection with a review of an account under section
1681b(a)(3)(F)(ii) of this title; and
(II) adverse to the interests of the consumer.
(2) Applicable findings, decisions, commentary, and orders. -
For purposes of any determination of whether an action is an
adverse action under paragraph (1)(A), all appropriate final
findings, decisions, commentary, and orders issued under section
1691(d)(6) of this title by the Board of Governors of the Federal
Reserve System or any court shall apply.
(l) Firm Offer of Credit or Insurance. - The term ''firm offer of
credit or insurance'' means any offer of credit or insurance to a
consumer that will be honored if the consumer is determined, based
on information in a consumer report on the consumer, to meet the
specific criteria used to select the consumer for the offer, except
that the offer may be further conditioned on one or more of the
following:
(1) The consumer being determined, based on information in the
consumer's application for the credit or insurance, to meet
specific criteria bearing on credit worthiness (FOOTNOTE 2) or
insurability, as applicable, that are established -
(FOOTNOTE 2) So in original. Probably should be
''creditworthiness''.
(A) before selection of the consumer for the offer; and
(B) for the purpose of determining whether to extend credit
or insurance pursuant to the offer.
(2) Verification -
(A) that the consumer continues to meet the specific criteria
used to select the consumer for the offer, by using information
in a consumer report on the consumer, information in the
consumer's application for the credit or insurance, or other
information bearing on the credit worthiness (FOOTNOTE 2) or
insurability of the consumer; or
(B) of the information in the consumer's application for the
credit or insurance, to determine that the consumer meets the
specific criteria bearing on credit worthiness (FOOTNOTE 2) or
insurability.
(3) The consumer furnishing any collateral that is a
requirement for the extension of the credit or insurance that was
-
(A) established before selection of the consumer for the
offer of credit or insurance; and
(B) disclosed to the consumer in the offer of credit or
insurance.
(m) Credit or Insurance Transaction That Is Not Initiated by the
Consumer. - The term ''credit or insurance transaction that is not
initiated by the consumer'' does not include the use of a consumer
report by a person with which the consumer has an account or
insurance policy, for purposes of -
(1) reviewing the account or insurance policy; or
(2) collecting the account.
(n) State. - The term ''State'' means any State, the Commonwealth
of Puerto Rico, the District of Columbia, and any territory or
possession of the United States.
(o) Excluded Communications. - A communication is described in
this subsection if it is a communication -
(1) that, but for subsection (d)(2)(D) of this section, would
be an investigative consumer report;
(2) that is made to a prospective employer for the purpose of -
(A) procuring an employee for the employer; or
(B) procuring an opportunity for a natural person to work for
the employer;
(3) that is made by a person who regularly performs such
procurement;
(4) that is not used by any person for any purpose other than a
purpose described in subparagraph (A) or (B) of paragraph (2);
and
(5) with respect to which -
(A) the consumer who is the subject of the communication -
(i) consents orally or in writing to the nature and scope
of the communication, before the collection of any
information for the purpose of making the communication;
(ii) consents orally or in writing to the making of the
communication to a prospective employer, before the making of
the communication; and
(iii) in the case of consent under clause (i) or (ii) given
orally, is provided written confirmation of that consent by
the person making the communication, not later than 3
business days after the receipt of the consent by that
person;
(B) the person who makes the communication does not, for the
purpose of making the communication, make any inquiry that if
made by a prospective employer of the consumer who is the
subject of the communication would violate any applicable
Federal or State equal employment opportunity law or
regulation; and
(C) the person who makes the communication -
(i) discloses in writing to the consumer who is the subject
of the communication, not later than 5 business days after
receiving any request from the consumer for such disclosure,
the nature and substance of all information in the consumer's
file at the time of the request, except that the sources of
any information that is acquired solely for use in making the
communication and is actually used for no other purpose, need
not be disclosed other than under appropriate discovery
procedures in any court of competent jurisdiction in which an
action is brought; and
(ii) notifies the consumer who is the subject of the
communication, in writing, of the consumer's right to request
the information described in clause (i).
(p) Consumer Reporting Agency That Compiles and Maintains Files
on Consumers on a Nationwide Basis. - The term ''consumer reporting
agency that compiles and maintains files on consumers on a
nationwide basis'' means a consumer reporting agency that regularly
engages in the practice of assembling or evaluating, and
maintaining, for the purpose of furnishing consumer reports to
third parties bearing on a consumer's credit worthiness, (FOOTNOTE
3) credit standing, or credit capacity, each of the following
regarding consumers residing nationwide:
(FOOTNOTE 3) So in original. Probably should be
''creditworthiness,''.
(1) Public record information.
(2) Credit account information from persons who furnish that
information regularly and in the ordinary course of business.

Section 1681b. Permissible purposes of consumer reports

(a) In general
Subject to subsection (c) of this section, any consumer reporting
agency may furnish a consumer report under the following
circumstances and no other:
(1) In response to the order of a court having jurisdiction to
issue such an order, or a subpoena issued in connection with
proceedings before a Federal grand jury.
(2) In accordance with the written instructions of the consumer
to whom it relates.
(3) To a person which it has reason to believe -
(A) intends to use the information in connection with a credit
transaction involving the consumer on whom the information is to
be furnished and involving the extension of credit to, or review
or collection of an account of, the consumer; or
(B) intends to use the information for employment purposes; or
(C) intends to use the information in connection with the
underwriting of insurance involving the consumer; or
(D) intends to use the information in connection with a
determination of the consumer's eligibility for a license or
other benefit granted by a governmental instrumentality required
by law to consider an applicant's financial responsibility or
status; or
(E) intends to use the information, as a potential investor or
servicer, or current insurer, in connection with a valuation of,
or an assessment of the credit or prepayment risks associated
with, an existing credit obligation; or
(F) otherwise has a legitimate business need for the
information -
(i) in connection with a business transaction that is
initiated by the consumer; or
(ii) to review an account to determine whether the consumer
continues to meet the terms of the account.
(4) In response to a request by the head of a State or local
child support enforcement agency (or a State or local government
official authorized by the head of such an agency), if the person
making the request certifies to the consumer reporting agency that
-
(A) the consumer report is needed for the purpose of
establishing an individual's capacity to make child support
payments or determining the appropriate level of such payments;
(B) the paternity of the consumer for the child to which the
obligation relates has been established or acknowledged by the
consumer in accordance with State laws under which the obligation
arises (if required by those laws);
(C) the person has provided at least 10 days' prior notice to
the consumer whose report is requested, by certified or
registered mail to the last known address of the consumer, that
the report will be requested; and
(D) the consumer report will be kept confidential, will be used
solely for a purpose described in subparagraph (A), and will not
be used in connection with any other civil, administrative, or
criminal proceeding, or for any other purpose.
(5) To an agency administering a State plan under section 654 of
title 42 for use to set an initial or modified child support award.
(b) Conditions for furnishing and using consumer reports for
employment purposes
(1) Certification from user
A consumer reporting agency may furnish a consumer report for
employment purposes only if -
(A) the person who obtains such report from the agency
certifies to the agency that -
(i) the person has complied with paragraph (2) with respect
to the consumer report, and the person will comply with
paragraph (3) with respect to the consumer report if
paragraph (3) becomes applicable; and
(ii) information from the consumer report will not be used
in violation of any applicable Federal or State equal
employment opportunity law or regulation; and
(B) the consumer reporting agency provides with the report,
or has previously provided, a summary of the consumer's rights
under this subchapter, as prescribed by the Federal Trade
Commission under section 1681g(c)(3) of this title.
(2) Disclosure to consumer
(A) In general
Except as provided in subparagraph (B), a person may not
procure a consumer report, or cause a consumer report to be
procured, for employment purposes with respect to any consumer,
unless -
(i) a clear and conspicuous disclosure has been made in
writing to the consumer at any time before the report is
procured or caused to be procured, in a document that
consists solely of the disclosure, that a consumer report may
be obtained for employment purposes; and
(ii) the consumer has authorized in writing (which
authorization may be made on the document referred to in
clause (i)) the procurement of the report by that person.
(B) Application by mail, telephone, computer, or other similar
means
If a consumer described in subparagraph (C) applies for
employment by mail, telephone, computer, or other similar
means, at any time before a consumer report is procured or
caused to be procured in connection with that application -
(i) the person who procures the consumer report on the
consumer for employment purposes shall provide to the
consumer, by oral, written, or electronic means, notice that
a consumer report may be obtained for employment purposes,
and a summary of the consumer's rights under section
1681m(a)(3) of this title; and
(ii) the consumer shall have consented, orally, in writing,
or electronically to the procurement of the report by that
person.
(C) Scope
Subparagraph (B) shall apply to a person procuring a consumer
report on a consumer in connection with the consumer's
application for employment only if -
(i) the consumer is applying for a position over which the
Secretary of Transportation has the power to establish
qualifications and maximum hours of service pursuant to the
provisions of section 31502 of title 49, or a position
subject to safety regulation by a State transportation
agency; and
(ii) as of the time at which the person procures the report
or causes the report to be procured the only interaction
between the consumer and the person in connection with that
employment application has been by mail, telephone, computer,
or other similar means.
(3) Conditions on use for adverse actions
(A) In general
Except as provided in subparagraph (B), in using a consumer
report for employment purposes, before taking any adverse
action based in whole or in part on the report, the person
intending to take such adverse action shall provide to the
consumer to whom the report relates -
(i) a copy of the report; and
(ii) a description in writing of the rights of the consumer
under this subchapter, as prescribed by the Federal Trade
Commission under section 1681g(c)(3) of this title.
(B) Application by mail, telephone, computer, or other similar
means
(i) If a consumer described in subparagraph (C) applies for
employment by mail, telephone, computer, or other similar
means, and if a person who has procured a consumer report on
the consumer for employment purposes takes adverse action on
the employment application based in whole or in part on the
report, then the person must provide to the consumer to whom
the report relates, in lieu of the notices required under
subparagraph (A) of this section and under section 1681m(a) of
this title, within 3 business days of taking such action, an
oral, written or electronic notification -
(I) that adverse action has been taken based in whole or in
part on a consumer report received from a consumer reporting
agency;
(II) of the name, address and telephone number of the
consumer reporting agency that furnished the consumer report
(including a toll-free telephone number established by the
agency if the agency compiles and maintains files on
consumers on a nationwide basis);
(III) that the consumer reporting agency did not make the
decision to take the adverse action and is unable to provide
to the consumer the specific reasons why the adverse action
was taken; and
(IV) that the consumer may, upon providing proper
identification, request a free copy of a report and may
dispute with the consumer reporting agency the accuracy or
completeness of any information in a report.
(ii) If, under clause (B)(i)(IV), the consumer requests a
copy of a consumer report from the person who procured the
report, then, within 3 business days of receiving the
consumer's request, together with proper identification, the
person must send or provide to the consumer a copy of a report
and a copy of the consumer's rights as prescribed by the
Federal Trade Commission under section 1681g(c)(3) of this
title.
(C) Scope
Subparagraph (B) shall apply to a person procuring a consumer
report on a consumer in connection with the consumer's
application for employment only if -
(i) the consumer is applying for a position over which the
Secretary of Transportation has the power to establish
qualifications and maximum hours of service pursuant to the
provisions of section 31502 of title 49, or a position
subject to safety regulation by a State transportation
agency; and
(ii) as of the time at which the person procures the report
or causes the report to be procured the only interaction
between the consumer and the person in connection with that
employment application has been by mail, telephone, computer,
or other similar means.
(4) Exception for national security investigations
(A) In general
In the case of an agency or department of the United States
Government which seeks to obtain and use a consumer report for
employment purposes, paragraph (3) shall not apply to any
adverse action by such agency or department which is based in
part on such consumer report, if the head of such agency or
department makes a written finding that -
(i) the consumer report is relevant to a national security
investigation of such agency or department;
(ii) the investigation is within the jurisdiction of such
agency or department;
(iii) there is reason to believe that compliance with
paragraph (3) will -
(I) endanger the life or physical safety of any person;
(II) result in flight from prosecution;
(III) result in the destruction of, or tampering with,
evidence relevant to the investigation;
(IV) result in the intimidation of a potential witness
relevant to the investigation;
(V) result in the compromise of classified information;
or
(VI) otherwise seriously jeopardize or unduly delay the
investigation or another official proceeding.
(B) Notification of consumer upon conclusion of investigation
Upon the conclusion of a national security investigation
described in subparagraph (A), or upon the determination that
the exception under subparagraph (A) is no longer required for
the reasons set forth in such subparagraph, the official
exercising the authority in such subparagraph shall provide to
the consumer who is the subject of the consumer report with
regard to which such finding was made -
(i) a copy of such consumer report with any classified
information redacted as necessary;
(ii) notice of any adverse action which is based, in part,
on the consumer report; and
(iii) the identification with reasonable specificity of the
nature of the investigation for which the consumer report was
sought.
(C) Delegation by head of agency or department
For purposes of subparagraphs (A) and (B), the head of any
agency or department of the United States Government may
delegate his or her authorities under this paragraph to an
official of such agency or department who has personnel
security responsibilities and is a member of the Senior
Executive Service or equivalent civilian or military rank.
(D) Report to the Congress
Except as provided in subparagraph (E), not later than
January 31 of each year, the head of each agency and department
of the United States Government that exercised authority under
this paragraph during the preceding year shall submit a report
to the Congress on the number of times the department or agency
exercised such authority during the year.
(E) Reports to congressional intelligence committees
In the case of a report to be submitted under subparagraph
(D) to the congressional intelligence committees (as defined in
section 401a of title 50), the submittal date for such report
shall be as provided in section 415b of title 50.
(F) Definitions
For purposes of this paragraph, the following definitions
shall apply:
(i) Classified information
The term ''classified information'' means information that
is protected from unauthorized disclosure under Executive
Order No. 12958 or successor orders.
(ii) National security investigation
The term ''national security investigation'' means any
official inquiry by an agency or department of the United
States Government to determine the eligibility of a consumer
to receive access or continued access to classified
information or to determine whether classified information
has been lost or compromised.
(c) Furnishing reports in connection with credit or insurance
transactions that are not initiated by consumer
(1) In general
A consumer reporting agency may furnish a consumer report
relating to any consumer pursuant to subparagraph (A) or (C) of
subsection (a)(3) of this section in connection with any credit
or insurance transaction that is not initiated by the consumer
only if -
(A) the consumer authorizes the agency to provide such report
to such person; or
(B)(i) the transaction consists of a firm offer of credit or
insurance;
(ii) the consumer reporting agency has complied with
subsection (e) of this section; and
(iii) there is not in effect an election by the consumer,
made in accordance with subsection (e) of this section, to have
the consumer's name and address excluded from lists of names
provided by the agency pursuant to this paragraph.
(2) Limits on information received under paragraph (1)(B)
A person may receive pursuant to paragraph (1)(B) only -
(A) the name and address of a consumer;
(B) an identifier that is not unique to the consumer and that
is used by the person solely for the purpose of verifying the
identity of the consumer; and
(C) other information pertaining to a consumer that does not
identify the relationship or experience of the consumer with
respect to a particular creditor or other entity.
(3) Information regarding inquiries
Except as provided in section 1681g(a)(5) of this title, a
consumer reporting agency shall not furnish to any person a
record of inquiries in connection with a credit or insurance
transaction that is not initiated by a consumer.
(d) Reserved
(e) Election of consumer to be excluded from lists
(1) In general
A consumer may elect to have the consumer's name and address
excluded from any list provided by a consumer reporting agency
under subsection (c)(1)(B) of this section in connection with a
credit or insurance transaction that is not initiated by the
consumer, by notifying the agency in accordance with paragraph
(2) that the consumer does not consent to any use of a consumer
report relating to the consumer in connection with any credit or
insurance transaction that is not initiated by the consumer.
(2) Manner of notification
A consumer shall notify a consumer reporting agency under
paragraph (1) -
(A) through the notification system maintained by the agency
under paragraph (5); or
(B) by submitting to the agency a signed notice of election
form issued by the agency for purposes of this subparagraph.
(3) Response of agency after notification through system
Upon receipt of notification of the election of a consumer
under paragraph (1) through the notification system maintained by
the agency under paragraph (5), a consumer reporting agency shall -
(A) inform the consumer that the election is effective only
for the 2-year period following the election if the consumer
does not submit to the agency a signed notice of election form
issued by the agency for purposes of paragraph (2)(B); and
(B) provide to the consumer a notice of election form, if
requested by the consumer, not later than 5 business days after
receipt of the notification of the election through the system
established under paragraph (5), in the case of a request made
at the time the consumer provides notification through the
system.
(4) Effectiveness of election
An election of a consumer under paragraph (1) -
(A) shall be effective with respect to a consumer reporting
agency beginning 5 business days after the date on which the
consumer notifies the agency in accordance with paragraph (2);
(B) shall be effective with respect to a consumer reporting
agency -
(i) subject to subparagraph (C), during the 2-year period
beginning 5 business days after the date on which the
consumer notifies the agency of the election, in the case of
an election for which a consumer notifies the agency only in
accordance with paragraph (2)(A); or
(ii) until the consumer notifies the agency under
subparagraph (C), in the case of an election for which a
consumer notifies the agency in accordance with paragraph
(2)(B);
(C) shall not be effective after the date on which the
consumer notifies the agency, through the notification system
established by the agency under paragraph (5), that the
election is no longer effective; and
(D) shall be effective with respect to each affiliate of the
agency.
(5) Notification system
(A) In general
Each consumer reporting agency that, under subsection
(c)(1)(B) of this section, furnishes a consumer report in
connection with a credit or insurance transaction that is not
initiated by a consumer, shall -
(i) establish and maintain a notification system, including
a toll-free telephone number, which permits any consumer
whose consumer report is maintained by the agency to notify
the agency, with appropriate identification, of the
consumer's election to have the consumer's name and address
excluded from any such list of names and addresses provided
by the agency for such a transaction; and
(ii) publish by not later than 365 days after September 30,
1996, and not less than annually thereafter, in a publication
of general circulation in the area served by the agency -
(I) a notification that information in consumer files
maintained by the agency may be used in connection with
such transactions; and
(II) the address and toll-free telephone number for
consumers to use to notify the agency of the consumer's
election under clause (i).
(B) Establishment and maintenance as compliance
Establishment and maintenance of a notification system
(including a toll-free telephone number) and publication by a
consumer reporting agency on the agency's own behalf and on
behalf of any of its affiliates in accordance with this
paragraph is deemed to be compliance with this paragraph by
each of those affiliates.
(6) Notification system by agencies that operate nationwide
Each consumer reporting agency that compiles and maintains
files on consumers on a nationwide basis shall establish and
maintain a notification system for purposes of paragraph (5)
jointly with other such consumer reporting agencies.
(f) Certain use or obtaining of information prohibited
A person shall not use or obtain a consumer report for any
purpose unless -
(1) the consumer report is obtained for a purpose for which the
consumer report is authorized to be furnished under this section;
and
(2) the purpose is certified in accordance with section 1681e
of this title by a prospective user of the report through a
general or specific certification.
(g) Furnishing reports containing medical information
A consumer reporting agency shall not furnish for employment
purposes, or in connection with a credit or insurance transaction,
a consumer report that contains medical information about a
consumer, unless the consumer consents to the furnishing of the
report.

Section 1681c. Requirements relating to information contained in consumer reports

(a) Information excluded from consumer reports
Except as authorized under subsection (b) of this section, no
consumer reporting agency may make any consumer report containing
any of the following items of information:
(1) cases (FOOTNOTE 1) under title 11 or under the Bankruptcy Act
that, from the date of entry of the order for relief or the date of
adjudication, as the case may be, antedate the report by more than
10 years.
(FOOTNOTE 1) So in original. Probably should be capitalized.
(2) Civil suits, civil judgments, and records of arrest that,
from date of entry, antedate the report by more than seven years or
until the governing statute of limitations has expired, whichever
is the longer period.
(3) Paid tax liens which, from date of payment, antedate the
report by more than seven years.
(4) Accounts placed for collection or charged to profit and loss
which antedate the report by more than seven years.
(5) Any other adverse item of information, other than records of
convictions of crimes which antedates the report by more than seven
years.
(b) Exempted cases
The provisions of subsection (a) of this section are not
applicable in the case of any consumer credit report to be used in
connection with -
(1) a credit transaction involving, or which may reasonably be
expected to involve, a principal amount of $150,000 or more;
(2) the underwriting of life insurance involving, or which may
reasonably be expected to involve, a face amount of $150,000 or
more; or
(3) the employment of any individual at an annual salary which
equals, or which may reasonably be expected to equal $75,000, or
more.
(c) Running of reporting period
(1) In general
The 7-year period referred to in paragraphs (4) and (6) of
subsection (a) of this section shall begin, with respect to any
delinquent account that is placed for collection (internally or
by referral to a third party, whichever is earlier), charged to
profit and loss, or subjected to any similar action, upon the
expiration of the 180-day period beginning on the date of the
commencement of the delinquency which immediately preceded the
collection activity, charge to profit and loss, or similar
action.
(2) Effective date
Paragraph (1) shall apply only to items of information added to
the file of a consumer on or after the date that is 455 days
after September 30, 1996.
(d) Information required to be disclosed
Any consumer reporting agency that furnishes a consumer report
that contains information regarding any case involving the consumer
that arises under title 11 shall include in the report an
identification of the chapter of such title 11 under which such
case arises if provided by the source of the information. If any
case arising or filed under title 11 is withdrawn by the consumer
before a final judgment, the consumer reporting agency shall
include in the report that such case or filing was withdrawn upon
receipt of documentation certifying such withdrawal.
(e) Indication of closure of account by consumer
If a consumer reporting agency is notified pursuant to section
1681s-2(a)(4) of this title that a credit account of a consumer was
voluntarily closed by the consumer, the agency shall indicate that
fact in any consumer report that includes information related to
the account.
(f) Indication of dispute by consumer
If a consumer reporting agency is notified pursuant to section
1681s-2(a)(3) of this title that information regarding a consumer
who (FOOTNOTE 2) was furnished to the agency is disputed by the
consumer, the agency shall indicate that fact in each consumer
report that includes the disputed information.
(FOOTNOTE 2) So in original. Probably should be ''which''.

Section 1681d. Disclosure of investigative consumer reports

(a) Disclosure of fact of preparation
A person may not procure or cause to be prepared an investigative
consumer report on any consumer unless -
(1) it is clearly and accurately disclosed to the consumer that
an investigative consumer report including information as to his
character, general reputation, personal characteristics, and mode
of living, whichever are applicable, may be made, and such
disclosure (A) is made in a writing mailed, or otherwise
delivered, to the consumer, not later than three days after the
date on which the report was first requested, and (B) includes a
statement informing the consumer of his right to request the
additional disclosures provided for under subsection (b) of this
section and the written summary of the rights of the consumer
prepared pursuant to section 1681g(c) of this title; and
(2) the person certifies or has certified to the consumer
reporting agency that -
(A) the person has made the disclosures to the consumer
required by paragraph (1); and
(B) the person will comply with subsection (b) of this
section.
(b) Disclosure on request of nature and scope of investigation
Any person who procures or causes to be prepared an investigative
consumer report on any consumer shall, upon written request made by
the consumer within a reasonable period of time after the receipt
by him of the disclosure required by subsection (a)(1) of this
section, make a complete and accurate disclosure of the nature and
scope of the investigation requested. This disclosure shall be
made in a writing mailed, or otherwise delivered, to the consumer
not later than five days after the date on which the request for
such disclosure was received from the consumer or such report was
first requested, whichever is the later.
(c) Limitation on liability upon showing of reasonable procedures
for compliance with provisions
No person may be held liable for any violation of subsection (a)
or (b) of this section if he shows by a preponderance of the
evidence that at the time of the violation he maintained reasonable
procedures to assure compliance with subsection (a) or (b) of this
section.
(d) Prohibitions
(1) Certification
A consumer reporting agency shall not prepare or furnish an
investigative consumer report unless the agency has received a
certification under subsection (a)(2) of this section from the
person who requested the report.
(2) Inquiries
A consumer reporting agency shall not make an inquiry for the
purpose of preparing an investigative consumer report on a
consumer for employment purposes if the making of the inquiry by
an employer or prospective employer of the consumer would violate
any applicable Federal or State equal employment opportunity law
or regulation.
(3) Certain public record information
Except as otherwise provided in section 1681k of this title, a
consumer reporting agency shall not furnish an investigative
consumer report that includes information that is a matter of
public record and that relates to an arrest, indictment,
conviction, civil judicial action, tax lien, or outstanding
judgment, unless the agency has verified the accuracy of the
information during the 30-day period ending on the date on which
the report is furnished.
(4) Certain adverse information
A consumer reporting agency shall not prepare or furnish an
investigative consumer report on a consumer that contains
information that is adverse to the interest of the consumer and
that is obtained through a personal interview with a neighbor,
friend, or associate of the consumer or with another person with
whom the consumer is acquainted or who has knowledge of such item
of information, unless -
(A) the agency has followed reasonable procedures to obtain
confirmation of the information, from an additional source that
has independent and direct knowledge of the information; or
(B) the person interviewed is the best possible source of the
information.

Section 1681e. Compliance procedures

(a) Identity and purposes of credit users
Every consumer reporting agency shall maintain reasonable
procedures designed to avoid violations of section 1681c of this
title and to limit the furnishing of consumer reports to the
purposes listed under section 1681b of this title. These
procedures shall require that prospective users of the information
identify themselves, certify the purposes for which the information
is sought, and certify that the information will be used for no
other purpose. Every consumer reporting agency shall make a
reasonable effort to verify the identity of a new prospective user
and the uses certified by such prospective user prior to furnishing
such user a consumer report. No consumer reporting agency may
furnish a consumer report to any person if it has reasonable
grounds for believing that the consumer report will not be used for
a purpose listed in section 1681b of this title.
(b) Accuracy of report
Whenever a consumer reporting agency prepares a consumer report
it shall follow reasonable procedures to assure maximum possible
accuracy of the information concerning the individual about whom
the report relates.
(c) Disclosure of consumer reports by users allowed
A consumer reporting agency may not prohibit a user of a consumer
report furnished by the agency on a consumer from disclosing the
contents of the report to the consumer, if adverse action against
the consumer has been taken by the user based in whole or in part
on the report.
(d) Notice to users and furnishers of information
(1) Notice requirement
A consumer reporting agency shall provide to any person -
(A) who regularly and in the ordinary course of business
furnishes information to the agency with respect to any
consumer; or
(B) to whom a consumer report is provided by the agency;
a notice of such person's responsibilities under this subchapter.
(2) Content of notice
The Federal Trade Commission shall prescribe the content of
notices under paragraph (1), and a consumer reporting agency
shall be in compliance with this subsection if it provides a
notice under paragraph (1) that is substantially similar to the
Federal Trade Commission prescription under this paragraph.
(e) Procurement of consumer report for resale
(1) Disclosure
A person may not procure a consumer report for purposes of
reselling the report (or any information in the report) unless
the person discloses to the consumer reporting agency that
originally furnishes the report -
(A) the identity of the end-user of the report (or
information); and
(B) each permissible purpose under section 1681b of this
title for which the report is furnished to the end-user of the
report (or information).
(2) Responsibilities of procurers for resale
A person who procures a consumer report for purposes of
reselling the report (or any information in the report) shall -
(A) establish and comply with reasonable procedures designed
to ensure that the report (or information) is resold by the
person only for a purpose for which the report may be furnished
under section 1681b of this title, including by requiring that
each person to which the report (or information) is resold and
that resells or provides the report (or information) to any
other person -
(i) identifies each end user of the resold report (or
information);
(ii) certifies each purpose for which the report (or
information) will be used; and
(iii) certifies that the report (or information) will be
used for no other purpose; and
(B) before reselling the report, make reasonable efforts to
verify the identifications and certifications made under
subparagraph (A).
(3) Resale of consumer report to a Federal agency or department
Notwithstanding paragraph (1) or (2), a person who procures a
consumer report for purposes of reselling the report (or any
information in the report) shall not disclose the identity of the
end-user of the report under paragraph (1) or (2) if -
(A) the end user is an agency or department of the United
States Government which procures the report from the person for
purposes of determining the eligibility of the consumer
concerned to receive access or continued access to classified
information (as defined in section 1681b(b)(4)(E)(i) of this
title); and
(B) the agency or department certifies in writing to the
person reselling the report that nondisclosure is necessary to
protect classified information or the safety of persons
employed by or contracting with, or undergoing investigation
for work or contracting with the agency or department.

Section 1681f. Disclosures to governmental agencies

Notwithstanding the provisions of section 1681b of this title, a
consumer reporting agency may furnish identifying information
respecting any consumer, limited to his name, address, former
addresses, places of employment, or former places of employment, to
a governmental agency.

Section 1681g. Disclosures to consumers

(a) Information on file; sources; report recipients
Every consumer reporting agency shall, upon request, and subject
to section 1681h(a)(1) of this title, clearly and accurately
disclose to the consumer:
(1) All information in the consumer's file at the time of the
request, except that nothing in this paragraph shall be construed
to require a consumer reporting agency to disclose to a consumer
any information concerning credit scores or any other risk scores
or predictors relating to the consumer.
(2) The sources of the information; except that the sources of
information acquired solely for use in preparing an investigative
consumer report and actually used for no other purpose need not be
disclosed: Provided, That in the event an action is brought under
this subchapter, such sources shall be available to the plaintiff
under appropriate discovery procedures in the court in which the
action is brought.
(3)(A) Identification of each person (including each end-user
identified under section 1681e(e)(1) of this title) that procured a
consumer report -
(i) for employment purposes, during the 2-year period preceding
the date on which the request is made; or
(ii) for any other purpose, during the 1-year period preceding
the date on which the request is made.
(B) An identification of a person under subparagraph (A) shall
include -
(i) the name of the person or, if applicable, the trade name
(written in full) under which such person conducts business; and
(ii) upon request of the consumer, the address and telephone
number of the person.
(C) Subparagraph (A) does not apply if -
(i) the end user is an agency or department of the United
States Government that procures the report from the person for
purposes of determining the eligibility of the consumer to whom
the report relates to receive access or continued access to
classified information (as defined in section 1681b(b)(4)(E)(i)
of this title); and
(ii) the head of the agency or department makes a written
finding as prescribed under section 1681b(b)(4)(A) of this title.
(4) The dates, original payees, and amounts of any checks upon
which is based any adverse characterization of the consumer,
included in the file at the time of the disclosure.
(5) A record of all inquiries received by the agency during the
1-year period preceding the request that identified the consumer in
connection with a credit or insurance transaction that was not
initiated by the consumer.
(b) Exempt information
The requirements of subsection (a) of this section respecting the
disclosure of sources of information and the recipients of consumer
reports do not apply to information received or consumer reports
furnished prior to the effective date of this subchapter except to
the extent that the matter involved is contained in the files of
the consumer reporting agency on that date.
(c) Summary of rights required to be included with disclosure
(1) Summary of rights
A consumer reporting agency shall provide to a consumer, with
each written disclosure by the agency to the consumer under this
section -
(A) a written summary of all of the rights that the consumer
has under this subchapter; and
(B) in the case of a consumer reporting agency that compiles
and maintains files on consumers on a nationwide basis, a
toll-free telephone number established by the agency, at which
personnel are accessible to consumers during normal business
hours.
(2) Specific items required to be included
The summary of rights required under paragraph (1) shall
include -
(A) a brief description of this subchapter and all rights of
consumers under this subchapter;
(B) an explanation of how the consumer may exercise the
rights of the consumer under this subchapter;
(C) a list of all Federal agencies responsible for enforcing
any provision of this subchapter and the address and any
appropriate phone number of each such agency, in a form that
will assist the consumer in selecting the appropriate agency;
(D) a statement that the consumer may have additional rights
under State law and that the consumer may wish to contact a
State or local consumer protection agency or a State attorney
general to learn of those rights; and
(E) a statement that a consumer reporting agency is not
required to remove accurate derogatory information from a
consumer's file, unless the information is outdated under
section 1681c of this title or cannot be verified.
(3) Form of summary of rights
For purposes of this subsection and any disclosure by a
consumer reporting agency required under this subchapter with
respect to consumers' rights, the Federal Trade Commission (after
consultation with each Federal agency referred to in section
1681s(b) of this title) shall prescribe the form and content of
any such disclosure of the rights of consumers required under
this subchapter. A consumer reporting agency shall be in
compliance with this subsection if it provides disclosures under
paragraph (1) that are substantially similar to the Federal Trade
Commission prescription under this paragraph.
(4) Effectiveness
No disclosures shall be required under this subsection until
the date on which the Federal Trade Commission prescribes the
form and content of such disclosures under paragraph (3).

Section 1681h. Conditions and form of disclosure to consumers

(a) In general
(1) Proper identification
A consumer reporting agency shall require, as a condition of
making the disclosures required under section 1681g of this
title, that the consumer furnish proper identification.
(2) Disclosure in writing
Except as provided in subsection (b) of this section, the
disclosures required to be made under section 1681g of this title
shall be provided under that section in writing.
(b) Other forms of disclosure
(1) In general
If authorized by a consumer, a consumer reporting agency may
make the disclosures required under (FOOTNOTE 1) 1681g of this
title -
(FOOTNOTE 1) So in original. Probably should be followed by
''section''.
(A) other than in writing; and
(B) in such form as may be -
(i) specified by the consumer in accordance with paragraph
(2); and
(ii) available from the agency.
(2) Form
A consumer may specify pursuant to paragraph (1) that
disclosures under section 1681g of this title shall be made -
(A) in person, upon the appearance of the consumer at the
place of business of the consumer reporting agency where
disclosures are regularly provided, during normal business
hours, and on reasonable notice;
(B) by telephone, if the consumer has made a written request
for disclosure by telephone;
(C) by electronic means, if available from the agency; or
(D) by any other reasonable means that is available from the
agency.
(c) Trained personnel
Any consumer reporting agency shall provide trained personnel to
explain to the consumer any information furnished to him pursuant
to section 1681g of this title.
(d) Persons accompanying consumer
The consumer shall be permitted to be accompanied by one other
person of his choosing, who shall furnish reasonable
identification. A consumer reporting agency may require the
consumer to furnish a written statement granting permission to the
consumer reporting agency to discuss the consumer's file in such
person's presence.
(e) Limitation of liability
Except as provided in sections 1681n and 1681o of this title, no
consumer may bring any action or proceeding in the nature of
defamation, invasion of privacy, or negligence with respect to the
reporting of information against any consumer reporting agency, any
user of information, or any person who furnishes information to a
consumer reporting agency, based on information disclosed pursuant
to section 1681g, 1681h, or 1681m of this title, or based on
information disclosed by a user of a consumer report to or for a
consumer against whom the user has taken adverse action, based in
whole or in part on the report (FOOTNOTE 2) except as to false
information furnished with malice or willful intent to injure such
consumer.
(FOOTNOTE 2) So in original. Probably should be followed by a
comma.

Section 1681i. Procedure in case of disputed accuracy

(a) Reinvestigations of disputed information
(1) Reinvestigation required
(A) In general
If the completeness or accuracy of any item of information
contained in a consumer's file at a consumer reporting agency
is disputed by the consumer and the consumer notifies the
agency directly of such dispute, the agency shall reinvestigate
free of charge and record the current status of the disputed
information, or delete the item from the file in accordance
with paragraph (5), before the end of the 30-day period
beginning on the date on which the agency receives the notice
of the dispute from the consumer.
(B) Extension of period to reinvestigate
Except as provided in subparagraph (C), the 30-day period
described in subparagraph (A) may be extended for not more than
15 additional days if the consumer reporting agency receives
information from the consumer during that 30-day period that is
relevant to the reinvestigation.
(C) Limitations on extension of period to reinvestigate
Subparagraph (B) shall not apply to any reinvestigation in
which, during the 30-day period described in subparagraph (A),
the information that is the subject of the reinvestigation is
found to be inaccurate or incomplete or the consumer reporting
agency determines that the information cannot be verified.
(2) Prompt notice of dispute to furnisher of information
(A) In general
Before the expiration of the 5-business-day period beginning
on the date on which a consumer reporting agency receives
notice of a dispute from any consumer in accordance with
paragraph (1), the agency shall provide notification of the
dispute to any person who provided any item of information in
dispute, at the address and in the manner established with the
person. The notice shall include all relevant information
regarding the dispute that the agency has received from the
consumer.
(B) Provision of other information from consumer
The consumer reporting agency shall promptly provide to the
person who provided the information in dispute all relevant
information regarding the dispute that is received by the
agency from the consumer after the period referred to in
subparagraph (A) and before the end of the period referred to
in paragraph (1)(A).
(3) Determination that dispute is frivolous or irrelevant
(A) In general
Notwithstanding paragraph (1), a consumer reporting agency
may terminate a reinvestigation of information disputed by a
consumer under that paragraph if the agency reasonably
determines that the dispute by the consumer is frivolous or
irrelevant, including by reason of a failure by a consumer to
provide sufficient information to investigate the disputed
information.
(B) Notice of determination
Upon making any determination in accordance with subparagraph
(A) that a dispute is frivolous or irrelevant, a consumer
reporting agency shall notify the consumer of such
determination not later than 5 business days after making such
determination, by mail or, if authorized by the consumer for
that purpose, by any other means available to the agency.
(C) Contents of notice
A notice under subparagraph (B) shall include -
(i) the reasons for the determination under subparagraph
(A); and
(ii) identification of any information required to
investigate the disputed information, which may consist of a
standardized form describing the general nature of such
information.
(4) Consideration of consumer information
In conducting any reinvestigation under paragraph (1) with
respect to disputed information in the file of any consumer, the
consumer reporting agency shall review and consider all relevant
information submitted by the consumer in the period described in
paragraph (1)(A) with respect to such disputed information.
(5) Treatment of inaccurate or unverifiable information
(A) In general
If, after any reinvestigation under paragraph (1) of any
information disputed by a consumer, an item of the information
is found to be inaccurate or incomplete or cannot be verified,
the consumer reporting agency shall promptly delete that item
of information from the consumer's file or modify that item of
information, as appropriate, based on the results of the
reinvestigation.
(B) Requirements relating to reinsertion of previously deleted
material
(i) Certification of accuracy of information
If any information is deleted from a consumer's file
pursuant to subparagraph (A), the information may not be
reinserted in the file by the consumer reporting agency
unless the person who furnishes the information certifies
that the information is complete and accurate.
(ii) Notice to consumer
If any information that has been deleted from a consumer's
file pursuant to subparagraph (A) is reinserted in the file,
the consumer reporting agency shall notify the consumer of
the reinsertion in writing not later than 5 business days
after the reinsertion or, if authorized by the consumer for
that purpose, by any other means available to the agency.
(iii) Additional information
As part of, or in addition to, the notice under clause
(ii), a consumer reporting agency shall provide to a consumer
in writing not later than 5 business days after the date of
the reinsertion -
(I) a statement that the disputed information has been
reinserted;
(II) the business name and address of any furnisher of
information contacted and the telephone number of such
furnisher, if reasonably available, or of any furnisher of
information that contacted the consumer reporting agency,
in connection with the reinsertion of such information; and
(III) a notice that the consumer has the right to add a
statement to the consumer's file disputing the accuracy or
completeness of the disputed information.
(C) Procedures to prevent reappearance
A consumer reporting agency shall maintain reasonable
procedures designed to prevent the reappearance in a consumer's
file, and in consumer reports on the consumer, of information
that is deleted pursuant to this paragraph (other than
information that is reinserted in accordance with subparagraph
(B)(i)).
(D) Automated reinvestigation system
Any consumer reporting agency that compiles and maintains
files on consumers on a nationwide basis shall implement an
automated system through which furnishers of information to
that consumer reporting agency may report the results of a
reinvestigation that finds incomplete or inaccurate information
in a consumer's file to other such consumer reporting agencies.
(6) Notice of results of reinvestigation
(A) In general
A consumer reporting agency shall provide written notice to a
consumer of the results of a reinvestigation under this
subsection not later than 5 business days after the completion
of the reinvestigation, by mail or, if authorized by the
consumer for that purpose, by other means available to the
agency.
(B) Contents
As part of, or in addition to, the notice under subparagraph
(A), a consumer reporting agency shall provide to a consumer in
writing before the expiration of the 5-day period referred to
in subparagraph (A) -
(i) a statement that the reinvestigation is completed;
(ii) a consumer report that is based upon the consumer's
file as that file is revised as a result of the
reinvestigation;
(iii) a notice that, if requested by the consumer, a
description of the procedure used to determine the accuracy
and completeness of the information shall be provided to the
consumer by the agency, including the business name and
address of any furnisher of information contacted in
connection with such information and the telephone number of
such furnisher, if reasonably available;
(iv) a notice that the consumer has the right to add a
statement to the consumer's file disputing the accuracy or
completeness of the information; and
(v) a notice that the consumer has the right to request
under subsection (d) of this section that the consumer
reporting agency furnish notifications under that subsection.
(7) Description of reinvestigation procedure
A consumer reporting agency shall provide to a consumer a
description referred to in paragraph (6)(B)(iii) by not later
than 15 days after receiving a request from the consumer for that
description.
(8) Expedited dispute resolution
If a dispute regarding an item of information in a consumer's
file at a consumer reporting agency is resolved in accordance
with paragraph (5)(A) by the deletion of the disputed information
by not later than 3 business days after the date on which the
agency receives notice of the dispute from the consumer in
accordance with paragraph (1)(A), then the agency shall not be
required to comply with paragraphs (2), (6), and (7) with respect
to that dispute if the agency -
(A) provides prompt notice of the deletion to the consumer by
telephone;
(B) includes in that notice, or in a written notice that
accompanies a confirmation and consumer report provided in
accordance with subparagraph (C), a statement of the consumer's
right to request under subsection (d) of this section that the
agency furnish notifications under that subsection; and
(C) provides written confirmation of the deletion and a copy
of a consumer report on the consumer that is based on the
consumer's file after the deletion, not later than 5 business
days after making the deletion.
(b) Statement of dispute
If the reinvestigation does not resolve the dispute, the consumer
may file a brief statement setting forth the nature of the
dispute. The consumer reporting agency may limit such statements
to not more than one hundred words if it provides the consumer with
assistance in writing a clear summary of the dispute.
(c) Notification of consumer dispute in subsequent consumer reports
Whenever a statement of a dispute is filed, unless there is
reasonable grounds to believe that it is frivolous or irrelevant,
the consumer reporting agency shall, in any subsequent consumer
report containing the information in question, clearly note that it
is disputed by the consumer and provide either the consumer's
statement or a clear and accurate codification or summary thereof.
(d) Notification of deletion of disputed information
Following any deletion of information which is found to be
inaccurate or whose accuracy can no longer be verified or any
notation as to disputed information, the consumer reporting agency
shall, at the request of the consumer, furnish notification that
the item has been deleted or the statement, codification or summary
pursuant to subsection (b) or (c) of this section to any person
specifically designated by the consumer who has within two years
prior thereto received a consumer report for employment purposes,
or within six months prior thereto received a consumer report for
any other purpose, which contained the deleted or disputed
information.

Section 1681j. Charges for certain disclosures

(a) Reasonable charges allowed for certain disclosures
(1) In general
Except as provided in subsections (b), (c), and (d) of this
section, a consumer reporting agency may impose a reasonable
charge on a consumer -
(A) for making a disclosure to the consumer pursuant to
section 1681g of this title, which charge -
(i) shall not exceed $8; and
(ii) shall be indicated to the consumer before making the
disclosure; and
(B) for furnishing, pursuant to section 1681i(d) of this
title, following a reinvestigation under section 1681i(a) of
this title, a statement, codification, or summary to a person
designated by the consumer under that section after the 30-day
period beginning on the date of notification of the consumer
under paragraph (6) or (8) of section 1681i(a) of this title
with respect to the reinvestigation, which charge -
(i) shall not exceed the charge that the agency would
impose on each designated recipient for a consumer report;
and
(ii) shall be indicated to the consumer before furnishing
such information.
(2) Modification of amount
The Federal Trade Commission shall increase the amount referred
to in paragraph (1)(A)(i) on January 1 of each year, based
proportionally on changes in the Consumer Price Index, with
fractional changes rounded to the nearest fifty cents.
(b) Free disclosure after adverse notice to consumer
Each consumer reporting agency that maintains a file on a
consumer shall make all disclosures pursuant to section 1681g of
this title without charge to the consumer if, not later than 60
days after receipt by such consumer of a notification pursuant to
section 1681m of this title, or of a notification from a debt
collection agency affiliated with that consumer reporting agency
stating that the consumer's credit rating may be or has been
adversely affected, the consumer makes a request under section
1681g of this title.
(c) Free disclosure under certain other circumstances
Upon the request of the consumer, a consumer reporting agency
shall make all disclosures pursuant to section 1681g of this title
once during any 12-month period without charge to that consumer if
the consumer certifies in writing that the consumer -
(1) is unemployed and intends to apply for employment in the
60-day period beginning on the date on which the certification is
made;
(2) is a recipient of public welfare assistance; or
(3) has reason to believe that the file on the consumer at the
agency contains inaccurate information due to fraud.
(d) Other charges prohibited
A consumer reporting agency shall not impose any charge on a
consumer for providing any notification required by this subchapter
or making any disclosure required by this subchapter, except as
authorized by subsection (a) of this section.

Section 1681k. Public record information for employment purposes

(a) In general
A consumer reporting agency which furnishes a consumer report for
employment purposes and which for that purpose compiles and reports
items of information on consumers which are matters of public
record and are likely to have an adverse effect upon a consumer's
ability to obtain employment shall -
(1) at the time such public record information is reported to
the user of such consumer report, notify the consumer of the fact
that public record information is being reported by the consumer
reporting agency, together with the name and address of the
person to whom such information is being reported; or
(2) maintain strict procedures designed to insure that whenever
public record information which is likely to have an adverse
effect on a consumer's ability to obtain employment is reported
it is complete and up to date. For purposes of this paragraph,
items of public record relating to arrests, indictments,
convictions, suits, tax liens, and outstanding judgments shall be
considered up to date if the current public record status of the
item at the time of the report is reported.
(b) Exemption for national security investigations
Subsection (a) of this section does not apply in the case of an
agency or department of the United States Government that seeks to
obtain and use a consumer report for employment purposes, if the
head of the agency or department makes a written finding as
prescribed under section 1681b(b)(4)(A) of this title.

Section 1681l. Restrictions on investigative consumer reports

Whenever a consumer reporting agency prepares an investigative
consumer report, no adverse information in the consumer report
(other than information which is a matter of public record) may be
included in a subsequent consumer report unless such adverse
information has been verified in the process of making such
subsequent consumer report, or the adverse information was received
within the three-month period preceding the date the subsequent
report is furnished.

Section 1681m. Requirements on users of consumer reports

(a) Duties of users taking adverse actions on basis of information
contained in consumer reports
If any person takes any adverse action with respect to any
consumer that is based in whole or in part on any information
contained in a consumer report, the person shall -
(1) provide oral, written, or electronic notice of the adverse
action to the consumer;
(2) provide to the consumer orally, in writing, or
electronically -
(A) the name, address, and telephone number of the consumer
reporting agency (including a toll-free telephone number
established by the agency if the agency compiles and maintains
files on consumers on a nationwide basis) that furnished the
report to the person; and
(B) a statement that the consumer reporting agency did not
make the decision to take the adverse action and is unable to
provide the consumer the specific reasons why the adverse
action was taken; and
(3) provide to the consumer an oral, written, or electronic
notice of the consumer's right -
(A) to obtain, under section 1681j of this title, a free copy
of a consumer report on the consumer from the consumer
reporting agency referred to in paragraph (2), which notice
shall include an indication of the 60-day period under that
section for obtaining such a copy; and
(B) to dispute, under section 1681i of this title, with a
consumer reporting agency the accuracy or completeness of any
information in a consumer report furnished by the agency.
(b) Adverse action based on information obtained from third parties
other than consumer reporting agencies
(1) In general
Whenever credit for personal, family, or household purposes
involving a consumer is denied or the charge for such credit is
increased either wholly or partly because of information obtained
from a person other than a consumer reporting agency bearing upon
the consumer's credit worthiness, (FOOTNOTE 1) credit standing,
credit capacity, character, general reputation, personal
characteristics, or mode of living, the user of such information
shall, within a reasonable period of time, upon the consumer's
written request for the reasons for such adverse action received
within sixty days after learning of such adverse action, disclose
the nature of the information to the consumer. The user of such
information shall clearly and accurately disclose to the consumer
his right to make such written request at the time such adverse
action is communicated to the consumer.
(FOOTNOTE 1) So in original. Probably should be
''creditworthiness,''.
(2) Duties of person taking certain actions based on information
provided by affiliate
(A) Duties, generally
If a person takes an action described in subparagraph (B)
with respect to a consumer, based in whole or in part on
information described in subparagraph (C), the person shall -
(i) notify the consumer of the action, including a
statement that the consumer may obtain the information in
accordance with clause (ii); and
(ii) upon a written request from the consumer received
within 60 days after transmittal of the notice required by
clause (i), disclose to the consumer the nature of the
information upon which the action is based by not later than
30 days after receipt of the request.
(B) Action described
An action referred to in subparagraph (A) is an adverse
action described in section 1681a(k)(1)(A) of this title, taken
in connection with a transaction initiated by the consumer, or
any adverse action described in clause (i) or (ii) of section
1681a(k)(1)(B) of this title.
(C) Information described
Information referred to in subparagraph (A) -
(i) except as provided in clause (ii), is information that
-
(I) is furnished to the person taking the action by a
person related by common ownership or affiliated by common
corporate control to the person taking the action; and
(II) bears on the credit worthiness, (FOOTNOTE 1) credit
standing, credit capacity, character, general reputation,
personal characteristics, or mode of living of the
consumer; and
(ii) does not include -
(I) information solely as to transactions or experiences
between the consumer and the person furnishing the
information; or
(II) information in a consumer report.
(c) Reasonable procedures to assure compliance
No person shall be held liable for any violation of this section
if he shows by a preponderance of the evidence that at the time of
the alleged violation he maintained reasonable procedures to assure
compliance with the provisions of this section.
(d) Duties of users making written credit or insurance
solicitations on basis of information contained in consumer
files
(1) In general
Any person who uses a consumer report on any consumer in
connection with any credit or insurance transaction that is not
initiated by the consumer, that is provided to that person under
section 1681b(c)(1)(B) of this title, shall provide with each
written solicitation made to the consumer regarding the
transaction a clear and conspicuous statement that -
(A) information contained in the consumer's consumer report
was used in connection with the transaction;
(B) the consumer received the offer of credit or insurance
because the consumer satisfied the criteria for credit
worthiness (FOOTNOTE 2) or insurability under which the
consumer was selected for the offer;
(FOOTNOTE 2) So in original. Probably should be
''creditworthiness''.
(C) if applicable, the credit or insurance may not be
extended if, after the consumer responds to the offer, the
consumer does not meet the criteria used to select the consumer
for the offer or any applicable criteria bearing on credit
worthiness (FOOTNOTE 2) or insurability or does not furnish any
required collateral;
(D) the consumer has a right to prohibit information
contained in the consumer's file with any consumer reporting
agency from being used in connection with any credit or
insurance transaction that is not initiated by the consumer;
and
(E) the consumer may exercise the right referred to in
subparagraph (D) by notifying a notification system established
under section 1681b(e) of this title.
(2) Disclosure of address and telephone number
A statement under paragraph (1) shall include the address and
toll-free telephone number of the appropriate notification system
established under section 1681b(e) of this title.
(3) Maintaining criteria on file
A person who makes an offer of credit or insurance to a
consumer under a credit or insurance transaction described in
paragraph (1) shall maintain on file the criteria used to select
the consumer to receive the offer, all criteria bearing on credit
worthiness (FOOTNOTE 2) or insurability, as applicable, that are
the basis for determining whether or not to extend credit or
insurance pursuant to the offer, and any requirement for the
furnishing of collateral as a condition of the extension of
credit or insurance, until the expiration of the 3-year period
beginning on the date on which the offer is made to the consumer.
(4) Authority of Federal agencies regarding unfair or deceptive
acts or practices not affected
This section is not intended to affect the authority of any
Federal or State agency to enforce a prohibition against unfair
or deceptive acts or practices, including the making of false or
misleading statements in connection with a credit or insurance
transaction that is not initiated by the consumer.

Section 1681n. Civil liability for willful noncompliance

(a) In general
Any person who willfully fails to comply with any requirement
imposed under this subchapter with respect to any consumer is
liable to that consumer in an amount equal to the sum of -
(1)(A) any actual damages sustained by the consumer as a result
of the failure or damages of not less than $100 and not more than
$1,000; or
(B) in the case of liability of a natural person for obtaining
a consumer report under false pretenses or knowingly without a
permissible purpose, actual damages sustained by the consumer as
a result of the failure or $1,000, whichever is greater;
(2) such amount of punitive damages as the court may allow; and
(3) in the case of any successful action to enforce any
liability under this section, the costs of the action together
with reasonable attorney's fees as determined by the court.
(b) Civil liability for knowing noncompliance
Any person who obtains a consumer report from a consumer
reporting agency under false pretenses or knowingly without a
permissible purpose shall be liable to the consumer reporting
agency for actual damages sustained by the consumer reporting
agency or $1,000, whichever is greater.
(c) Attorney's fees
Upon a finding by the court that an unsuccessful pleading,
motion, or other paper filed in connection with an action under
this section was filed in bad faith or for purposes of harassment,
the court shall award to the prevailing party attorney's fees
reasonable in relation to the work expended in responding to the
pleading, motion, or other paper.

Section 1681o. Civil liability for negligent noncompliance

(a) In general
Any person who is negligent in failing to comply with any
requirement imposed under this subchapter with respect to any
consumer is liable to that consumer in an amount equal to the sum
of -
(1) any actual damages sustained by the consumer as a result of
the failure;
(2) in the case of any successful action to enforce any
liability under this section, the costs of the action together
with reasonable attorney's fees as determined by the court.
(b) Attorney's fees
On a finding by the court that an unsuccessful pleading, motion,
or other paper filed in connection with an action under this
section was filed in bad faith or for purposes of harassment, the
court shall award to the prevailing party attorney's fees
reasonable in relation to the work expended in responding to the
pleading, motion, or other paper.

Section 1681p. Jurisdiction of courts; limitation of actions

An action to enforce any liability created under this subchapter
may be brought in any appropriate United States district court
without regard to the amount in controversy, or in any other court
of competent jurisdiction, within two years from the date on which
the liability arises, except that where a defendant has materially
and willfully misrepresented any information required under this
subchapter to be disclosed to an individual and the information so
misrepresented is material to the establishment of the defendant's
liability to that individual under this subchapter, the action may
be brought at any time within two years after discovery by the
individual of the misrepresentation.

Section 1681q. Obtaining information under false pretenses

Any person who knowingly and willfully obtains information on a
consumer from a consumer reporting agency under false pretenses
shall be fined under title 18, imprisoned for not more than 2
years, or both.

Section 1681r. Unauthorized disclosures by officers or employees

Any officer or employee of a consumer reporting agency who
knowingly and willfully provides information concerning an
individual from the agency's files to a person not authorized to
receive that information shall be fined under title 18, imprisoned
for not more than 2 years, or both.

Section 1681s. Administrative enforcement

(a) Enforcement by Federal Trade Commission
(1) Compliance with the requirements imposed under this
subchapter shall be enforced under the Federal Trade Commission Act
(15 U.S.C. 41 et seq.) by the Federal Trade Commission with respect
to consumer reporting agencies and all other persons subject
thereto, except to the extent that enforcement of the requirements
imposed under this subchapter is specifically committed to some
other government agency under subsection (b) hereof. For the
purpose of the exercise by the Federal Trade Commission of its
functions and powers under the Federal Trade Commission Act, a
violation of any requirement or prohibition imposed under this
subchapter shall constitute an unfair or deceptive act or practice
in commerce in violation of section 5(a) of the Federal Trade
Commission Act (15 U.S.C. 45(a)) and shall be subject to
enforcement by the Federal Trade Commission under section 5(b)
thereof (15 U.S.C. 45(b)) with respect to any consumer reporting
agency or person subject to enforcement by the Federal Trade
Commission pursuant to this subsection, irrespective of whether
that person is engaged in commerce or meets any other
jurisdictional tests in the Federal Trade Commission Act. The
Federal Trade Commission shall have such procedural, investigative,
and enforcement powers, including the power to issue procedural
rules in enforcing compliance with the requirements imposed under
this subchapter and to require the filing of reports, the
production of documents, and the appearance of witnesses as though
the applicable terms and conditions of the Federal Trade Commission
Act were part of this subchapter. Any person violating any of the
provisions of this subchapter shall be subject to the penalties and
entitled to the privileges and immunities provided in the Federal
Trade Commission Act as though the applicable terms and provisions
thereof were part of this subchapter.
(2)(A) In the event of a knowing violation, which constitutes a
pattern or practice of violations of this subchapter, the
Commission may commence a civil action to recover a civil penalty
in a district court of the United States against any person that
violates this subchapter. In such action, such person shall be
liable for a civil penalty of not more than $2,500 per violation.
(B) In determining the amount of a civil penalty under
subparagraph (A), the court shall take into account the degree of
culpability, any history of prior such conduct, ability to pay,
effect on ability to continue to do business, and such other
matters as justice may require.
(3) Notwithstanding paragraph (2), a court may not impose any
civil penalty on a person for a violation of section 1681s-2(a)(1)
of this title unless the person has been enjoined from committing
the violation, or ordered not to commit the violation, in an action
or proceeding brought by or on behalf of the Federal Trade
Commission, and has violated the injunction or order, and the court
may not impose any civil penalty for any violation occurring before
the date of the violation of the injunction or order.
(b) Enforcement by other agencies
Compliance with the requirements imposed under this subchapter
with respect to consumer reporting agencies, persons who use
consumer reports from such agencies, persons who furnish
information to such agencies, and users of information that are
subject to subsection (d) of section 1681m of this title shall be
enforced under -
(1) section 8 of the Federal Deposit Insurance Act (12 U.S.C.
1818), in the case of -
(A) national banks, and Federal branches and Federal agencies
of foreign banks, by the Office of the Comptroller of the
Currency;
(B) member banks of the Federal Reserve System (other than
national banks), branches and agencies of foreign banks (other
than Federal branches, Federal agencies, and insured State
branches of foreign banks), commercial lending companies owned
or controlled by foreign banks, and organizations operating
under section 25 or 25(a) (FOOTNOTE 1) of the Federal Reserve
Act (12 U.S.C. 601 et seq., 611 et seq.), by the Board of
Governors of the Federal Reserve System; and
(FOOTNOTE 1) See References in Text note below.
(C) banks insured by the Federal Deposit Insurance
Corporation (other than members of the Federal Reserve System)
and insured State branches of foreign banks, by the Board of
Directors of the Federal Deposit Insurance Corporation;
(2) section 8 of the Federal Deposit Insurance Act (12 U.S.C.
1818), by the Director of the Office of Thrift Supervision, in
the case of a savings association the deposits of which are
insured by the Federal Deposit Insurance Corporation;
(3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.), by
the Administrator of the National Credit Union Administration
with respect to any Federal credit union;
(4) subtitle IV of title 49, by the Secretary of
Transportation, with respect to all carriers subject to the
jurisdiction of the Surface Transportation Board;
(5) part A of subtitle VII of title 49, by the Secretary of
Transportation with respect to any air carrier or foreign air
carrier subject to that part; and
(6) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.)
(except as provided in section 406 of that Act (7 U.S.C. 226,
227)), by the Secretary of Agriculture with respect to any
activities subject to that Act.
The terms used in paragraph (1) that are not defined in this
subchapter or otherwise defined in section 3(s) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning
given to them in section 1(b) of the International Banking Act of
1978 (12 U.S.C. 3101).
(c) State action for violations
(1) Authority of States
In addition to such other remedies as are provided under State
law, if the chief law enforcement officer of a State, or an
official or agency designated by a State, has reason to believe
that any person has violated or is violating this subchapter, the
State -
(A) may bring an action to enjoin such violation in any
appropriate United States district court or in any other court
of competent jurisdiction;
(B) subject to paragraph (5), may bring an action on behalf
of the residents of the State to recover -
(i) damages for which the person is liable to such
residents under sections 1681n and 1681o of this title as a
result of the violation;
(ii) in the case of a violation of section 1681s-2(a) of
this title, damages for which the person would, but for
section 1681s-2(c) of this title, be liable to such residents
as a result of the violation; or
(iii) damages of not more than $1,000 for each willful or
negligent violation; and
(C) in the case of any successful action under subparagraph
(A) or (B), shall be awarded the costs of the action and
reasonable attorney fees as determined by the court.
(2) Rights of Federal regulators
The State shall serve prior written notice of any action under
paragraph (1) upon the Federal Trade Commission or the
appropriate Federal regulator determined under subsection (b) of
this section and provide the Commission or appropriate Federal
regulator with a copy of its complaint, except in any case in
which such prior notice is not feasible, in which case the State
shall serve such notice immediately upon instituting such
action. The Federal Trade Commission or appropriate Federal
regulator shall have the right -
(A) to intervene in the action;
(B) upon so intervening, to be heard on all matters arising
therein;
(C) to remove the action to the appropriate United States
district court; and
(D) to file petitions for appeal.
(3) Investigatory powers
For purposes of bringing any action under this subsection,
nothing in this subsection shall prevent the chief law
enforcement officer, or an official or agency designated by a
State, from exercising the powers conferred on the chief law
enforcement officer or such official by the laws of such State to
conduct investigations or to administer oaths or affirmations or
to compel the attendance of witnesses or the production of
documentary and other evidence.
(4) Limitation on State action while Federal action pending
If the Federal Trade Commission or the appropriate Federal
regulator has instituted a civil action or an administrative
action under section 8 of the Federal Deposit Insurance Act (12
U.S.C. 1818) for a violation of this subchapter, no State may,
during the pendency of such action, bring an action under this
section against any defendant named in the complaint of the
Commission or the appropriate Federal regulator for any violation
of this subchapter that is alleged in that complaint.
(5) Limitations on State actions for violation of section
1681s-2(a)(1)
(A) Violation of injunction required
A State may not bring an action against a person under
paragraph (1)(B) for a violation of section 1681s-2(a)(1) of
this title, unless -
(i) the person has been enjoined from committing the
violation, in an action brought by the State under paragraph
(1)(A); and
(ii) the person has violated the injunction.
(B) Limitation on damages recoverable
In an action against a person under paragraph (1)(B) for a
violation of section 1681s-2(a)(1) of this title, a State may
not recover any damages incurred before the date of the
violation of an injunction on which the action is based.
(d) Enforcement under other authority
For the purpose of the exercise by any agency referred to in
subsection (b) of this section of its powers under any Act referred
to in that subsection, a violation of any requirement imposed under
this subchapter shall be deemed to be a violation of a requirement
imposed under that Act. In addition to its powers under any
provision of law specifically referred to in subsection (b) of this
section, each of the agencies referred to in that subsection may
exercise, for the purpose of enforcing compliance with any
requirement imposed under this subchapter any other authority
conferred on it by law.
(e) Regulatory authority
(1) The Federal banking agencies referred to in paragraphs (1)
and (2) of subsection (b) of this section shall jointly prescribe
such regulations as necessary to carry out the purposes of this
subchapter with respect to any persons identified under paragraphs
(1) and (2) of subsection (b) of this section, and the Board of
Governors of the Federal Reserve System shall have authority to
prescribe regulations consistent with such joint regulations with
respect to bank holding companies and affiliates (other than
depository institutions and consumer reporting agencies) of such
holding companies.
(2) The Board of the National Credit Union Administration shall
prescribe such regulations as necessary to carry out the purposes
of this subchapter with respect to any persons identified under
paragraph (3) of subsection (b) of this section.

Section 1681s-1. Information on overdue child support obligations

Notwithstanding any other provision of this subchapter, a
consumer reporting agency shall include in any consumer report
furnished by the agency in accordance with section 1681b of this
title, any information on the failure of the consumer to pay
overdue support which -
(1) is provided -
(A) to the consumer reporting agency by a State or local
child support enforcement agency; or
(B) to the consumer reporting agency and verified by any
local, State, or Federal Government agency; and
(2) antedates the report by 7 years or less.

Section 1681s-2. Responsibilities of furnishers of information to consumer reporting agencies

(a) Duty of furnishers of information to provide accurate
information
(1) Prohibition
(A) Reporting information with actual knowledge of errors
A person shall not furnish any information relating to a
consumer to any consumer reporting agency if the person knows
or consciously avoids knowing that the information is
inaccurate.
(B) Reporting information after notice and confirmation of
errors
A person shall not furnish information relating to a consumer
to any consumer reporting agency if -
(i) the person has been notified by the consumer, at the
address specified by the person for such notices, that
specific information is inaccurate; and
(ii) the information is, in fact, inaccurate.
(C) No address requirement
A person who clearly and conspicuously specifies to the
consumer an address for notices referred to in subparagraph (B)
shall not be subject to subparagraph (A); however, nothing in
subparagraph (B) shall require a person to specify such an
address.
(2) Duty to correct and update information
A person who -
(A) regularly and in the ordinary course of business
furnishes information to one or more consumer reporting
agencies about the person's transactions or experiences with
any consumer; and
(B) has furnished to a consumer reporting agency information
that the person determines is not complete or accurate,
shall promptly notify the consumer reporting agency of that
determination and provide to the agency any corrections to that
information, or any additional information, that is necessary to
make the information provided by the person to the agency
complete and accurate, and shall not thereafter furnish to the
agency any of the information that remains not complete or
accurate.
(3) Duty to provide notice of dispute
If the completeness or accuracy of any information furnished by
any person to any consumer reporting agency is disputed to such
person by a consumer, the person may not furnish the information
to any consumer reporting agency without notice that such
information is disputed by the consumer.
(4) Duty to provide notice of closed accounts
A person who regularly and in the ordinary course of business
furnishes information to a consumer reporting agency regarding a
consumer who has a credit account with that person shall notify
the agency of the voluntary closure of the account by the
consumer, in information regularly furnished for the period in
which the account is closed.
(5) Duty to provide notice of delinquency of accounts
A person who furnishes information to a consumer reporting
agency regarding a delinquent account being placed for
collection, charged to profit or loss, or subjected to any
similar action shall, not later than 90 days after furnishing the
information, notify the agency of the month and year of the
commencement of the delinquency that immediately preceded the
action.
(b) Duties of furnishers of information upon notice of dispute
(1) In general
After receiving notice pursuant to section 1681i(a)(2) of this
title of a dispute with regard to the completeness or accuracy of
any information provided by a person to a consumer reporting
agency, the person shall -
(A) conduct an investigation with respect to the disputed
information;
(B) review all relevant information provided by the consumer
reporting agency pursuant to section 1681i(a)(2) of this title;
(C) report the results of the investigation to the consumer
reporting agency; and
(D) if the investigation finds that the information is
incomplete or inaccurate, report those results to all other
consumer reporting agencies to which the person furnished the
information and that compile and maintain files on consumers on
a nationwide basis.
(2) Deadline
A person shall complete all investigations, reviews, and
reports required under paragraph (1) regarding information
provided by the person to a consumer reporting agency, before the
expiration of the period under section 1681i(a)(1) of this title
within which the consumer reporting agency is required to
complete actions required by that section regarding that
information.
(c) Limitation on liability
Sections 1681n and 1681o of this title do not apply to any
failure to comply with subsection (a) of this section, except as
provided in section 1681s(c)(1)(B) of this title.
(d) Limitation on enforcement
Subsection (a) of this section shall be enforced exclusively
under section 1681s of this title by the Federal agencies and
officials and the State officials identified in that section.

Section 1681t. Relation to State laws

(a) In general
Except as provided in subsections (b) and (c) of this section,
this subchapter does not annul, alter, affect, or exempt any person
subject to the provisions of this subchapter from complying with
the laws of any State with respect to the collection, distribution,
or use of any information on consumers, except to the extent that
those laws are inconsistent with any provision of this subchapter,
and then only to the extent of the inconsistency.
(b) General exceptions
No requirement or prohibition may be imposed under the laws of
any State -
(1) with respect to any subject matter regulated under -
(A) subsection (c) or (e) of section 1681b of this title,
relating to the prescreening of consumer reports;
(B) section 1681i of this title, relating to the time by
which a consumer reporting agency must take any action,
including the provision of notification to a consumer or other
person, in any procedure related to the disputed accuracy of
information in a consumer's file, except that this subparagraph
shall not apply to any State law in effect on September 30,
1996;
(C) subsections (a) and (b) of section 1681m of this title,
relating to the duties of a person who takes any adverse action
with respect to a consumer;
(D) section 1681m(d) of this title, relating to the duties of
persons who use a consumer report of a consumer in connection
with any credit or insurance transaction that is not initiated
by the consumer and that consists of a firm offer of credit or
insurance;
(E) section 1681c of this title, relating to information
contained in consumer reports, except that this subparagraph
shall not apply to any State law in effect on September 30,
1996; or
(F) section 1681s-2 of this title, relating to the
responsibilities of persons who furnish information to consumer
reporting agencies, except that this paragraph shall not apply
-
(i) with respect to section 54A(a) of chapter 93 of the
Massachusetts Annotated Laws (as in effect on September 30,
1996); or
(ii) with respect to section 1785.25(a) of the California
Civil Code (as in effect on September 30, 1996);
(2) with respect to the exchange of information among persons
affiliated by common ownership or common corporate control,
except that this paragraph shall not apply with respect to
subsection (a) or (c)(1) of section 2480e of title 9, Vermont
Statutes Annotated (as in effect on September 30, 1996); or
(3) with respect to the form and content of any disclosure
required to be made under section 1681g(c) of this title.
(c) ''Firm offer of credit or insurance'' defined
Notwithstanding any definition of the term ''firm offer of credit
or insurance'' (or any equivalent term) under the laws of any
State, the definition of that term contained in section 1681a(l) of
this title shall be construed to apply in the enforcement and
interpretation of the laws of any State governing consumer reports.
(d) Limitations
Subsections (b) and (c) of this section -
(1) do not affect any settlement, agreement, or consent
judgment between any State Attorney General and any consumer
reporting agency in effect on September 30, 1996; and
(2) do not apply to any provision of State law (including any
provision of a State constitution) that -
(A) is enacted after January 1, 2004;
(B) states explicitly that the provision is intended to
supplement this subchapter; and
(C) gives greater protection to consumers than is provided
under this subchapter.

Section 1681u. Disclosures to FBI for counterintelligence purposes

(a) Identity of financial institutions
Notwithstanding section 1681b of this title or any other
provision of this subchapter, a consumer reporting agency shall
furnish to the Federal Bureau of Investigation the names and
addresses of all financial institutions (as that term is defined in
section 3401 of title 12) at which a consumer maintains or has
maintained an account, to the extent that information is in the
files of the agency, when presented with a written request for that
information, signed by the Director of the Federal Bureau of
Investigation, or the Director's designee in a position not lower
than Deputy Assistant Director at Bureau headquarters or a Special
Agent in Charge of a Bureau field office designated by the
Director, which certifies compliance with this section. The
Director or the Director's designee may make such a certification
only if the Director or the Director's designee has determined in
writing, that such information is sought for the conduct of an
authorized investigation to protect against international terrorism
or clandestine intelligence activities, provided that such an
investigation of a United States person is not conducted solely
upon the basis of activities protected by the first amendment to
the Constitution of the United States.
(b) Identifying information
Notwithstanding the provisions of section 1681b of this title or
any other provision of this subchapter, a consumer reporting agency
shall furnish identifying information respecting a consumer,
limited to name, address, former addresses, places of employment,
or former places of employment, to the Federal Bureau of
Investigation when presented with a written request, signed by the
Director or the Director's designee in a position not lower than
Deputy Assistant Director at Bureau headquarters or a Special Agent
in Charge of a Bureau field office designated by the Director,
which certifies compliance with this subsection. The Director or
the Director's designee may make such a certification only if the
Director or the Director's designee has determined in writing that
such information is sought for the conduct of an authorized
investigation to protect against international terrorism or
clandestine intelligence activities, provided that such an
investigation of a United States person is not conducted solely
upon the basis of activities protected by the first amendment to
the Constitution of the United States.
(c) Court order for disclosure of consumer reports
Notwithstanding section 1681b of this title or any other
provision of this subchapter, if requested in writing by the
Director of the Federal Bureau of Investigation, or a designee of
the Director in a position not lower than Deputy Assistant Director
at Bureau headquarters or a Special Agent in Charge in a Bureau
field office designated by the Director, a court may issue an order
ex parte directing a consumer reporting agency to furnish a
consumer report to the Federal Bureau of Investigation, upon a
showing in camera that the consumer report is sought for the
conduct of an authorized investigation to protect against
international terrorism or clandestine intelligence activities,
provided that such an investigation of a United States person is
not conducted solely upon the basis of activities protected by the
first amendment to the Constitution of the United States. The terms
of an order issued under this subsection shall not disclose that
the order is issued for purposes of a counterintelligence
investigation.
(d) Confidentiality
No consumer reporting agency or officer, employee, or agent of a
consumer reporting agency shall disclose to any person, other than
those officers, employees, or agents of a consumer reporting agency
necessary to fulfill the requirement to disclose information to the
Federal Bureau of Investigation under this section, that the
Federal Bureau of Investigation has sought or obtained the identity
of financial institutions or a consumer report respecting any
consumer under subsection (a), (b), or (c) of this section, and no
consumer reporting agency or officer, employee, or agent of a
consumer reporting agency shall include in any consumer report any
information that would indicate that the Federal Bureau of
Investigation has sought or obtained such information or a consumer
report.
(e) Payment of fees
The Federal Bureau of Investigation shall, subject to the
availability of appropriations, pay to the consumer reporting
agency assembling or providing report or information in accordance
with procedures established under this section a fee for
reimbursement for such costs as are reasonably necessary and which
have been directly incurred in searching, reproducing, or
transporting books, papers, records, or other data required or
requested to be produced under this section.
(f) Limit on dissemination
The Federal Bureau of Investigation may not disseminate
information obtained pursuant to this section outside of the
Federal Bureau of Investigation, except to other Federal agencies
as may be necessary for the approval or conduct of a foreign
counterintelligence investigation, or, where the information
concerns a person subject to the Uniform Code of Military Justice,
to appropriate investigative authorities within the military
department concerned as may be necessary for the conduct of a joint
foreign counterintelligence investigation.
(g) Rules of construction
Nothing in this section shall be construed to prohibit
information from being furnished by the Federal Bureau of
Investigation pursuant to a subpoena or court order, in connection
with a judicial or administrative proceeding to enforce the
provisions of this subchapter. Nothing in this section shall be
construed to authorize or permit the withholding of information
from the Congress.
(h) Reports to Congress
(1) On a semiannual basis, the Attorney General shall fully
inform the Permanent Select Committee on Intelligence and the
Committee on Banking, Finance and Urban Affairs of the House of
Representatives, and the Select Committee on Intelligence and the
Committee on Banking, Housing, and Urban Affairs of the Senate
concerning all requests made pursuant to subsections (a), (b), and
(c) of this section.
(2) In the case of the semiannual reports required to be
submitted under paragraph (1) to the Permanent Select Committee on
Intelligence of the House of Representatives and the Select
Committee on Intelligence of the Senate, the submittal dates for
such reports shall be as provided in section 415b of title 50.
(i) Damages
Any agency or department of the United States obtaining or
disclosing any consumer reports, records, or information contained
therein in violation of this section is liable to the consumer to
whom such consumer reports, records, or information relate in an
amount equal to the sum of -
(1) $100, without regard to the volume of consumer reports,
records, or information involved;
(2) any actual damages sustained by the consumer as a result of
the disclosure;
(3) if the violation is found to have been willful or
intentional, such punitive damages as a court may allow; and
(4) in the case of any successful action to enforce liability
under this subsection, the costs of the action, together with
reasonable attorney fees, as determined by the court.
(j) Disciplinary actions for violations
If a court determines that any agency or department of the United
States has violated any provision of this section and the court
finds that the circumstances surrounding the violation raise
questions of whether or not an officer or employee of the agency or
department acted willfully or intentionally with respect to the
violation, the agency or department shall promptly initiate a
proceeding to determine whether or not disciplinary action is
warranted against the officer or employee who was responsible for
the violation.
(k) Good-faith exception
Notwithstanding any other provision of this subchapter, any
consumer reporting agency or agent or employee thereof making
disclosure of consumer reports or identifying information pursuant
to this subsection in good-faith reliance upon a certification of
the Federal Bureau of Investigation pursuant to provisions of this
section shall not be liable to any person for such disclosure under
this subchapter, the constitution of any State, or any law or
regulation of any State or any political subdivision of any State.
(l) Limitation of remedies
Notwithstanding any other provision of this subchapter, the
remedies and sanctions set forth in this section shall be the only
judicial remedies and sanctions for violation of this section.
(m) Injunctive relief
In addition to any other remedy contained in this section,
injunctive relief shall be available to require compliance with the
procedures of this section. In the event of any successful action
under this subsection, costs together with reasonable attorney
fees, as determined by the court, may be recovered.

Section 1681v. Disclosures to governmental agencies for counterterrorism purposes

(a) Disclosure
Notwithstanding section 1681b of this title or any other
provision of this subchapter, a consumer reporting agency shall
furnish a consumer report of a consumer and all other information
in a consumer's file to a government agency authorized to conduct
investigations of, or intelligence or counterintelligence
activities or analysis related to, international terrorism when
presented with a written certification by such government agency
that such information is necessary for the agency's conduct or such
investigation, activity or analysis.
(b) Form of certification
The certification described in subsection (a) of this section
shall be signed by a supervisory official designated by the head of
a Federal agency or an officer of a Federal agency whose
appointment to office is required to be made by the President, by
and with the advice and consent of the Senate.
(c) Confidentiality
No consumer reporting agency, or officer, employee, or agent of
such consumer reporting agency, shall disclose to any person, or
specify in any consumer report, that a government agency has sought
or obtained access to information under subsection (a) of this
section.
(d) Rule of construction
Nothing in section 1681u of this title shall be construed to
limit the authority of the Director of the Federal Bureau of
Investigation under this section.
(e) Safe harbor
Notwithstanding any other provision of this subchapter, any
consumer reporting agency or agent or employee thereof making
disclosure of consumer reports or other information pursuant to
this section in good-faith reliance upon a certification of a
governmental agency pursuant to the provisions of this section
shall not be liable to any person for such disclosure under this
subchapter, the constitution of any State, or any law or regulation
of any State or any political subdivision of any State.

Fair Credit Billing Act

Fair Credit Billing Act (FCBA)
This Act requires your credit company to provide prompt correction of credit and charge billing errors. However, there are certain things you must do to protect your rights.

If you find an error on your bill, you should write a letter to the credit card company's customer service department right away. Your letter must reach the credit card company within 60 days after the bill was mailed. In your letter include your name, card number, and the amount involved. Briefly describe the error. Make sure to also include a copy of the bill and any receipts. Keep your originals. Also, keep a copy of your letter.

Within 30 days, the credit card company must acknowledge your letter or correct the error. If the credit card company disagrees with you, it must write bank within 90 days (or two billing cycles, whichever is less). During this time, the credit card company can't report the disputed amount to a credit bureau as overdue. If your claim is confirmed, any interest charged on the disputed amount must be dropped.

Fair Credit and Charge Card Disclosure Act

Fair Credit and Charge Card Disclosure Act (FCCCDA)
Under this Act, credit and charge companies must provide you with information about their terms. Features like Annual Percentage Rates (APRs), cash advances, and annual fees may vary from one card to another. Cards may charge different APRs for purchases than they do for cash advances, and the APR may change. Card issuers are required to disclose their terms in writing at the time you apply. If a card company offers you a written "pre-approved" credit solicitation, the offer must include these written terms. Also, card issuers must inform customers if they make certain changes in rates or coverage for credit insurance.

Equal Credit Opportunity Act

Equal Credit Opportunity Act (ECOPA)
The Equal Credit Opportunity Act guarantees equal opportunity to all customers of credit card companies, banks, loan and finance companies, retail stores and credit unions. Discrimination on the basis of race, color, sex, national origin, marital status, age (provided the customer has the capacity to enter into a binding contract), receipt of public assistance, or the fact that the consumer has in good faith exercised any right under the Consumer Credit Protection Act is strictly prohibited.
The following summarizes some of the key protections under the Act:
· In general, creditors cannot ask you for your race, sex, or national origin, nor can they use theses factors when deciding whether to give you a loan or other credit. However, if you apply for a mortgage, the lender is required to ask you about these facts. Your answers may be used to help enforce laws against discrimination. Even so, you aren't required to give this information.
· You're entitled to your own credit history-in your individual name-even if you are married. This can be important if you should ever need credit on your own. However, if you share credit with your spouse, you will share your own partner's credit record as well.
· If you apply for unsecured credit on your own, your marital status is off-limits.
· You don't have to tell a creditor you're divorces or you're receiving support payments. However, a lender has a legitimate interest in your ability to repay your debts. Therefore, you may have to disclose any alimony, maintenance, or child support you're obligate to pay. You must also list any support payments you receive if you want to be counted as income on your application.
· You don't have to tell a creditor you're divorces or you're receiving support payments. However, a lender has a legitimate interest in your ability to repay your debts. Therefore, you may have to disclose any alimony, maintenance, or child support you're obligate to pay. You must also list any support payments you receive if you want to be counted as income on your application.
· As long as you're old enough to sign a legal contract, your age can be used against you.
· A creditor cannot discriminate against you if you receive public assistance. However, a creditor can verify any income you list on a credit application.

Send your letter by certified mail, and request a return receipt so you can document what the credit bureau received and when. Keep copies of your dispute letter and enclosures. Credit bureaus must usually investigate the items in question within 30 days, unless they consider your dispute frivolous. They also must forward all relevant date you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the credit bureau, it must investigate, review all relevant information provided by the credit bureau, and report the results to the credit bureau. If the information provider finds the disputed information to be inaccurate, it must notify any nationwide credit bureau that it reports to so that the credit bureau can correct this information in your file. Note that:
· Disputed information that cannot be verified must be deleted from your file.
· If your report contains erroneous information, the credit bureau must correct it.
· If an item is incomplete, the credit bureau must complete it. For example, if your file shows that you have been late making payments, but fails to show that you are no longer delinquent, the credit bureau must show that you're current.
If your file shows an account that belongs to someone else, the credit bureau must delete it.

When the investigation is complete, the credit bureau must give you written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the credit bureau cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the credit bureau gives you a written notice that includes the name, address, and phone number of the information provider.

Dealing with creditors/information providers

In addition to writing to the credit bureau, tell the creditor or other information providers in writing that you dispute an item. Again, include copies (NOT originals) of documents that support your position. Many information providers specify an address for disputes. If the information provider then reports the item to any credit bureau, it must include a notice of your dispute. In addition, if your are correct-that is, if the disputed information is not accurate-the information provider must not use it again.

Additional Resources
For more information, consult How to Dispute Credit Report Errors and Fair Credit Reporting, two brochures available from the Federal Trade Commission or online at www.consumer.gov/idtheft or
For more information, go to our Financial Library and download the two brochures.
If you want a summarized version of Fair Credit Reporting Act, go to Your Legal Rights Section