Mt. Pleasant Bankruptcy Lawyer Blog | Fair Credit Reporting Act

This post includes the full text of the Fair Credit Reporting Act. Read it at your

own risk. Application of the Fair Credit Reporting Act is difficult even for

attorneys. Most tend to refer these sorts of claims to Traywick Law Offices

or other consumer protection attorneys rather than tackle them.

Contact Traywick Law Offices for help correcting errors on your credit report.

Don't pay higher rates of interest or fool with the credit reporting bureaus and

agencies. They aren't interested in fixing your report. And even if they are, the

original creditor is not. Telephone today and collect for damages.

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THE FAIR CREDIT REPORTING ACT

TABLE OF CONTENTS

§ 601 Short title

§ 602 Congressional findings and statement of purpose

§ 603 Definitions; rules of construction

§ 604 Permissible purposes of consumer reports

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

§ 605B Block of information resulting from identity theft

§ 605 Requirements relating to information contained in consumer reports

§ 606 Disclosure of investigative consumer reports

§ 607 Compliance procedures

§ 608 Disclosures to governmental agencies

§ 609 Disclosures to consumers

§ 610 Conditions and form of disclosure to consumers

§ 611 Procedure in case of disputed accuracy

§ 612 Charges for certain disclosures

§ 613 Public record information for employment purposes

§ 614 Restrictions on investigative consumer reports

§ 615 Requirements on users of consumer reports

§ 616 Civil liability for willful noncompliance

§ 617 Civil liability for negligent noncompliance

§ 618 Jurisdiction of courts; limitation of actions

§ 619 Obtaining information under false pretenses

§ 620 Unauthorized disclosures by officers or employees

§ 621 Administrative enforcement

§ 622 Information on overdue child support obligations

§ 623 Responsibilities of furnishers of information to consumer reporting agencies

§ 624 Affiliate sharing

§ 625 Relation to state laws

§ 626 Disclosures to FBI for counterintelligence purposes

§ 627 Disclosures to governmental agencies for counterterrorism purposes

§ 628 Disposal of records

§ 629 Corporate and technological circumvention prohibited

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§ 601. Short title

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

§ 602. Congressional findings and statement of purpose [15 U.S.C. § 1681]

(a) Accuracy and fairness of credit reporting. The Congress makes the following findings:

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

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

unfair credit reporting methods undermine the public confidence which is

essential to the continued functioning of the banking system.

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

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

reputation of consumers.

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

evaluating consumer credit and other information on consumers.

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

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

to privacy.

(b) Reasonable procedures. It is the purpose of this title to require that consumer

reporting agencies adopt reasonable procedures for meeting the needs of commerce

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

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

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

requirements of this title.

§ 603. Definitions; rules of construction [15 U.S.C. § 1681a]

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

purposes of this title.

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

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

other entity.

(d) Consumer Report

(1) In general. The term "consumer report" means any written, oral, or other

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

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

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

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

establishing the consumer's eligibility for

(A)

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

purposes;

(B)

employment purposes; or

(C)

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

(2) Exclusions. Except as provided in paragraph (3), the term "consumer report" does

not include

(A)

subject to section 624, any

(i)

report containing information solely as to transactions or experiences

between the consumer and the person making the report;

(ii)

communication of that information among persons related by common

ownership or affiliated by corporate control; or

(iii)

communication of other information among persons related by

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

and conspicuously disclosed to the consumer that the information may

be communicated among such persons and the consumer is given the

opportunity, before the time that the information is initially

communicated, to direct that such information not be communicated

among such persons;

(B)

any authorization or approval of a specific extension of credit directly or

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

(C)

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

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

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

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

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

required under section 615 [§ 1681m]; or

(D)

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

(3) Restriction on sharing of medical information. Except for information or any

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

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

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

the information is-

(A)

medical information;

(B)

an individualized list or description based on the payment transactions of the

consumer for medical products or services; or

(C)

an aggregate list of identified consumers based on payment transactions for

medical products or services.

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

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

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

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

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

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

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

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

a creditor of the consumer or from the consumer.

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

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

practice of assembling or evaluating consumer credit information or other

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

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

of preparing or furnishing consumer reports.

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

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

reporting agency regardless of how the information is stored.

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

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

promotion, reassignment or retention as an employee.

(i) The term “medical information” -(

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

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

the past, present, or future physical, mental, or behavioral health or

condition of an individual;

(B)

the provision of health care to an individual; or

(C)

the payment for the provision of health care to an individual.

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

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

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

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

any insurance policy.

(j) Definitions Relating to Child Support Obligations

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

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

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

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

child support obligations.

(k) Adverse Action

(1) Actions included. The term “adverse action”

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

Opportunity Act; and

(B) means

(i)

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

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

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

the underwriting of insurance;

(ii)

a denial of employment or any other decision for employment purposes

that adversely affects any current or prospective employee;

(iii)

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

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

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

(iv)

an action taken or determination that is

(I)

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

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

with a review of an account under section

604(a)(3)(F)(ii)[§ 1681b]; and

(II)

adverse to the interests of the consumer.

(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

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

of the Federal Reserve System or any court shall apply.

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

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

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

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

more of the following:

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

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

worthiness or insurability, as applicable, that are established

(A)

before selection of the consumer for the offer; and

(B)

for the purpose of determining whether to extend credit or insurance

pursuant to the offer.

(2) Verification

(A)

that the consumer continues to meet the specific criteria used to select the

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

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

insurance, or other information bearing on the credit worthiness or

insurability of the consumer; or

(B)

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

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

worthiness or insurability.

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

the credit or insurance that was

(A)

established before selection of the consumer for the offer of credit or

insurance; and

(B)

disclosed to the consumer in the offer of credit or insurance.

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

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

account or insurance policy, for purposes of

(1) reviewing the account or insurance policy; or

(2) collecting the account.

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

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

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(o) Excluded communications. A communication is described in this subsection if it is a

communication

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

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

(A)

procuring an employee for the employer; or

(B)

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

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

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

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

(5) with respect to which

(A)

the consumer who is the subject of the communication

(i)

consents orally or in writing to the nature and scope of the

communication, before the collection of any information for the

purpose of making the communication;

(ii)

consents orally or in writing to the making of the communication to a

prospective employer, before the making of the communication; and

(iii)

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

written confirmation of that consent by the person making the

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

consent by that person;

(B)

the person who makes the communication does not, for the purpose of

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

prospective employer of the consumer who is the subject of the

communication would violate any applicable Federal or State equal

employment opportunity law or regulation; and

(C)

the person who makes the communication

(i)

discloses in writing to the consumer who is the subject of the

communication, not later than 5 business days after receiving any

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

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

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

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

need not be disclosed other than under appropriate discovery procedures

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

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(ii)

notifies the consumer who is the subject of the communication, in

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

clause (i).

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

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

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

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

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

consumers residing nationwide:

(1) Public record information.

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

and in the ordinary course of business.

(q) Definitions relating to fraud alerts.

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

who-(

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

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

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

United States Code; and

(B)

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

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

consumer that-(

notifies all prospective users of a consumer report relating to the consumer

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

an active duty military consumer, as applicable; and

(B)

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

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

consumer report.

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

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

Commission may prescribe, by regulation.

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

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

that alleges an identity theft;

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(B)

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

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

United States Postal Inspection Service, or such other government agency

deemed appropriate by the Commission; and

(C)

the filing of which subjects the person filing the report to criminal

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

information in the report is false.

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

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

transaction not under an open end credit plan.

(r) Credit and Debit Related Terms

(1) The term “card issuer” means-(

a credit card issuer, in the case of a credit card; and

(B)

a debit card issuer, in the case of a debit card.

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

Lending Act.

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

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

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

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

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

section 903 of the Electronic Fund Transfer Act.

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

Equal Credit Opportunity Act.

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

Federal Deposit Insurance Act.

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

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

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

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

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

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

reporting agency or multiple consumer reporting agencies concerning any

July 30, 2004

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

extent of such activities; and

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

new consumer reports are produced.

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

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

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

basis relating to-(

1) medical records or payments;

(2) residential or tenant history;

(3) check writing history;

(4) employment history; or

(5) insurance claims.

(x) Exclusion of Certain Communications for Employee Investigations

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

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

report;

(B)

the communication is made to an employer in connection with an

investigation of–

(i)

suspected misconduct relating to employment; or

(ii)

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

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

the employer;

(C)

the communication is not made for the purpose of investigating a

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

(D)

the communication is not provided to any person except-(

to the employer or an agent of the employer;

(ii)

to any Federal or State officer, agency, or department, or any officer,

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

July 30, 2004

(iii)

to any self-regulatory organization with regulatory authority over the

activities of the employer or employee;

(iv)

as otherwise required by law; or

(v)

pursuant to section 608.

(2) Subsequent disclosure. After taking any adverse action based in whole or in part on a

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

consumer a summary containing the nature and substance of the communication

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

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

investigative consumer report need not be disclosed.

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

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

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

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

Commission, and any futures association registered with such Commission.

§ 604.

Permissible purposes of consumer reports [15 U.S.C. § 1681b]

(a) In general. Subject to subsection (c), 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

July 30, 2004

(E)

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

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

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

(F)

otherwise has a legitimate business need for the information

(i)

in connection with a business transaction that is initiated by the

consumer; or

(ii)

to review an account to determine whether the consumer continues to

meet the terms of the account.

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

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

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

agency that

(A)

the consumer report is needed for the purpose of establishing an

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

appropriate level of such payments;

(B)

the paternity of the consumer for the child to which the obligation relates

has been established or acknowledged by the consumer in accordance with

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

(C)

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

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

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

(D)

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

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

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

other purpose.

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

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

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

(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

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(ii)

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

any applicable Federal or State equal employment opportunity law or

regulation; and

(B)

the consumer reporting agency provides with the report, or has previously

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

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

(2) Disclosure to Consumer.

(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-(

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-(

the person who procures the consumer report on the consumer for

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

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

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

section 615(a)(3); and

(ii)

the consumer shall have consented, orally, in writing, or electronically

to the procurement of the report by that person.

(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-(

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

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(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-(

a copy of the report; and

(ii)

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

prescribed by the Federal Trade Commission under section 609(c)(3).1

(B)

Application by mail, telephone, computer, or other similar means.

(i)

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

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

who has procured a consumer report on the consumer for employment

purposes takes adverse action on the employment application based in

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

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

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

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

electronic notification-(

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.

1The references in Sections 604(b)(3)(A) and 604(b)(3)(B) should be to Section 609(c)(1), not (c)(3) that no

longer exists as the result of Congress’ re-organization of Section 609(c) in 2003 (FACT Act).

July 30, 2004

(ii)

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

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

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

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

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

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

(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-(

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-(

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

July 30, 2004

(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-(

a copy of such consumer report with any classified information

redacted as necessary;

(ii)

notice of any adverse action which is based, in part, on the consumer

report; and

(iii)

the identification with reasonable specificity of the nature of the

investigation for which the consumer report was sought.

(C)

Delegation by head of agency or department. For purposes of

subparagraphs (A) and (B), the head of any agency or department of the

United States Government may delegate his or her authorities under this

paragraph to an official of such agency or department who has personnel

security responsibilities and is a member of the Senior Executive Service

or equivalent civilian or military rank.

(D)

Report to the Congress. Not later than January 31 of each year, the head of

each agency and department of the United States Government that

exercised authority under this paragraph during the preceding year shall

submit a report to the Congress on the number of times the department or

agency exercised such authority during the year.

(E)

Definitions. For purposes of this paragraph, the following definitions shall

apply:

(i)

The term “classified information” means information that is protected

from unauthorized disclosure under Executive Order No. 12958 or

successor orders.

(ii)

The term “national security investigation” means any official inquiry

by an agency or department of the United States Government to

determine the eligibility of a consumer to receive access or continued

access to classified information or to determine whether classified

information has been lost or compromised.

initiated by the consumer.

July 30, 2004

(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) in

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

consumer only if

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

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

(ii)

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

(iii)

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

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

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

(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 609(a)(5)

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

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

by a consumer.

(d) Reserved.

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

(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) 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

July 30, 2004

(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 5-year

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

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

of paragraph (2)(B); and

(B)

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

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

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

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

through the system.

(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 5-year period beginning 5

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

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

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

(ii)

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

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

accordance with paragraph (2)(B);

(C)

shall not be effective after the date on which the consumer notifies the

agency, through the notification system established by the agency under

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

(D)

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

(5) Notification System

(A)

In general. Each consumer reporting agency that, under subsection

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

insurance transaction that is not initiated by a consumer, shall

(i)

establish and maintain a notification system, including a toll-free

telephone number, which permits any consumer whose consumer

July 30, 2004

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

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

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

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

(ii)

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

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

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

served by the agency

(I)

a notification that information in consumer files maintained by the

agency may be used in connection with such transactions; and

(II)

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

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

(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 607 [§ 1681e] by a prospective

user of the report through a general or specific certification.

(g) Protection of Medical Information

(1) Limitation on consumer reporting agencies. 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 (other than

medical contact information treated in the manner required under section

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

if furnished in connection with an insurance transaction, the consumer

affirmatively consents to the furnishing of the report;

July 30, 2004

(B)

if furnished for employment purposes or in connection with a credit

transaction-(

the information to be furnished is relevant to process or effect the

employment or credit transaction; and

(ii)

the consumer provides specific written consent for the furnishing of the

report that describes in clear and conspicuous language the use for

which the information will be furnished; or

(C)

the information to be furnished pertains solely to transactions, accounts, or

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

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

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

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

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

605(a)(6).

(2) Limitation on creditors. Except as permitted pursuant to paragraph (3)(C) or regulations

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

information (other than medical contact information treated in the manner

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

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

(3) Actions authorized by federal law, insurance activities and regulatory determinations.

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

communication of information as a consumer report if the information or

communication is disclosed-(

in connection with the business of insurance or annuities, including the

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

Financial and Health Information Regulation issued by the National

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

(B)

for any purpose permitted without authorization under the Standards for

Individually Identifiable Health Information promulgated by the

Department of Health and Human Services pursuant to the Health

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

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

106-102; or

(C)

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

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

banking agency or the National Credit Union Administration (with respect

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

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

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

providing insurance or annuities).

July 30, 2004

(4)

Limitation on redisclosure of medical information. Any person that receives

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

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

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

statute, regulation, or order.

(5)

Regulations and Effective Date for Paragraph (2)

(A)

Regulations required. Each Federal banking agency and the National Credit

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

opportunity for comment, prescribe regulations that permit transactions

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

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

(and which shall include permitting actions necessary for administrative

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

the use of medical information for inappropriate purposes.

(B)

Final regulations required. The Federal banking agencies and the National

Credit Union Administration shall issue the regulations required under

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

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

Transactions Act of 2003.

(6) Coordination with other laws. No provision of this subsection shall be construed

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

Federal law relating to medical confidentiality.

§ 605.

Requirements relating to information contained in consumer reports [15 U.S.C. §1681c]

(a) Information excluded from consumer reports. Except as authorized under subsection

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

containing any of the following items of information:

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

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

be, antedate the report by more than 10 years.

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

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

has expired, whichever is the longer period.

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

seven years.

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

report by more than seven years.2

2 The reporting periods have been lengthened for certain adverse information pertaining to U.S. Government

insured or guaranteed student loans, or pertaining to national direct student loans. See sections 430A(f) and

463(c)(3) of the Higher Education Act of 1965, 20 U.S.C. 1080a(f) and 20 U.S.C. 1087cc(c)(3), respectively.

July 30, 2004

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

crimes which antedates the report by more than seven years.2

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

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

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

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

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

person other than the consumer; or

(B)

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

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

casualty insurance.

(b) Exempted cases. The provisions of paragraphs (1) through (5) 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.

(1) In general. The 7-year period referred to in paragraphs (4) and (6) 3 of subsection

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

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

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

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

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

(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 the date of enactment of

the Consumer Credit Reporting Reform Act of 1996.

(d) Information Required to be Disclosed

(1) Title 11 information. Any consumer reporting agency that furnishes a consumer

report that contains information regarding any case involving the consumer that

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

3This provision, added in September 1996, should read “paragraphs (4) and (5)....” Prior Section 605(a)(6)

was amended and re-designated as Section 605(a)(5) in November 1998. The current Section 605(a)(6), added in

December 2003 and now containing no reference to any 7-year period, is obviously inapplicable.

July 30, 2004

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

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

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

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

was withdrawn upon receipt of documentation certifying such withdrawal.

(2) Key factor in credit score information. Any consumer reporting agency that furnishes

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

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

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

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

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

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

the purpose of approving or processing negotiable instruments, electronic fund

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

company is engaged in such activities.

(e) Indication of closure of account by consumer. If a consumer reporting agency is

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

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

consumer report that includes information related to the account.

(f)

Indication of dispute by consumer. If a consumer reporting agency is notified pursuant

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

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

fact in each consumer report that includes the disputed information.

(g) Truncation of Credit Card and Debit Card Numbers

(1) In general. Except as otherwise provided in this subsection, no person that accepts

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

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

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

(2) Limitation. This subsection shall apply only to receipts that are electronically

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

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

copy of the card.

(3) Effective date. This subsection shall become effective-(

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

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

(B)

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

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

(h) Notice of Discrepancy in Address

July 30, 2004

(1) In general. If a person has requested a consumer report relating to a consumer

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

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

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

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

of the existence of the discrepancy.

(2) Regulations

(A)

Regulations required. The Federal banking agencies, the National Credit

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

the entities that are subject to their respective enforcement authority under

section 621, prescribe regulations providing guidance regarding reasonable

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

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

(B)

Policies and procedures to be included. The regulations prescribed under

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

by a user of a consumer report-(

to form a reasonable belief that the user knows the identity of the

person to whom the consumer report pertains; and

(ii)

if the user establishes a continuing relationship with the consumer, and

the user regularly and in the ordinary course of business furnishes

information to the consumer reporting agency from which the notice of

discrepancy pertaining to the consumer was obtained, to reconcile the

address of the consumer with the consumer reporting agency by

furnishing such address to such consumer reporting agency as part of

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

relationship is established.

§ 605A. Identity theft prevention; fraud alerts and active duty alerts [15 U.S.C. §1681c-1]

(a) One-call Fraud Alerts

(1) Initial alerts. Upon the direct request of a consumer, or an individual acting on

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

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

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

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

proof of the identity of the requester shall-(

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

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

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

consumer or such representative requests that such fraud alert be removed

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

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

July 30, 2004

(B)

refer the information regarding the fraud alert under this paragraph to each

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

accordance with procedures developed under section 621(f).

(2) Access to free reports. In any case in which a consumer reporting agency includes

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

reporting agency shall-(

disclose to the consumer that the consumer may request a free copy of the

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

(B)

provide to the consumer all disclosures required to be made under section

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

any request described in subparagraph (A).

(b) Extended Alerts

(1) In general. Upon the direct request of a consumer, or an individual acting on

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

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

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

the identity of the requester, the agency shall-(

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

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

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

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

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

of the requester for such purpose;

(B)

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

consumer from any list of consumers prepared by the consumer reporting

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

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

unless the consumer or such representative requests that such exclusion be

rescinded before the end of such period; and

(C)

refer the information regarding the extended fraud alert under this paragraph

to each of the other consumer reporting agencies described in section

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

(2) Access to free reports. In any case in which a consumer reporting agency includes

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

reporting agency shall-(

disclose to the consumer that the consumer may request 2 free copies of

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

July 30, 2004

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

file; and

(B)

provide to the consumer all disclosures required to be made under section

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

any request described in subparagraph (A).

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

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

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

proof of the identity of the requester shall-(

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

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

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

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

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

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

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

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

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

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

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

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

period; and

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

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

developed under section 621(f).

(d) Procedures. Each consumer reporting agency described in section 603(p) shall

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

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

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

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

including by telephone.

(e) Referrals of alerts. Each consumer reporting agency described in section 603(p) that

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

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

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

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

subsection (a)(1)(B);

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

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

July 30, 2004

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

(c)(3).

(f)

Duty of reseller to reconvey alert. A reseller shall include in its report any fraud alert

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

another consumer reporting agency.

(g) Duty of other consumer reporting agencies to provide contact information. If a

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

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

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

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

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

and request alerts under this section.

(h) Limitations on Use of Information for Credit Extensions

(1) Requirements for initial and active duty alerts-

(A)

Notification. Each initial fraud alert and active duty alert under this section

shall include information that notifies all prospective users of a consumer

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

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

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

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

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

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

in accordance with subparagraph (B).

(B)

Limitation on Users

(i)

In general. No prospective user of a consumer report that includes an

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

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

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

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

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

existing credit account requested by a consumer, unless the user

utilizes reasonable policies and procedures to form a reasonable belief

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

(ii)

Verification. If a consumer requesting the alert has specified a

telephone number to be used for identity verification purposes, before

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

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

contact the consumer using that telephone number or take reasonable

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

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

July 30, 2004

(2) Requirements for Extended Alerts

(A)

Notification. Each extended alert under this section shall include

information that provides all prospective users of a consumer report

relating to a consumer with–

(i)

notification that the consumer does not authorize the establishment of

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

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

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

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

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

accordance with subparagraph (B); and

(ii)

a telephone number or other reasonable contact method designated by

the consumer.

(B)

Limitation on users. No prospective user of a consumer report or of a

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

includes an extended fraud alert in accordance with this section may

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

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

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

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

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

consumer in person or using the contact method described in subparagraph

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

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

theft.

§ 605B. Block of information resulting from identity theft [15 U.S.C. §1681c-2]

(a) Block. Except as otherwise provided in this section, a consumer reporting agency

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

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

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

1) appropriate proof of the identity of the consumer;

(2) a copy of an identity theft report;

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

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

any transaction by the consumer.

(b) Notification. A consumer reporting agency shall promptly notify the furnisher of

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

30, 2004

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

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

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

(4) of the effective dates of the block.

(1) In general. A consumer reporting agency may decline to block, or may rescind

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

consumer reporting agency reasonably determines that-(

the information was blocked in error or a block was requested by the

consumer in error;

(B)

the information was blocked, or a block was requested by the consumer,

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

relevant to the request to block; or

(C)

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

of the blocked transaction or transactions.

(2) Notification to consumer. If a block of information is declined or rescinded under

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

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

611(a)(5)(B).

(3) Significance of block. For purposes of this subsection, if a consumer reporting

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

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

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

services, or money as a result of the block.

(d) Exception for Resellers

(1) No reseller file. This section shall not apply to a consumer reporting agency, if the

consumer reporting agency-(

is a reseller;

(B)

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

otherwise furnishing or reselling a consumer report concerning the

information identified by the consumer; and

(C)

informs the consumer, by any means, that the consumer may report the

identity theft to the Commission to obtain consumer information regarding

identity theft.

July 30, 2004

(2) Reseller with file. The sole obligation of the consumer reporting agency under this

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

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

subsequent use, if-(

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

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

consumer that resulted from identity theft; and

(B)

the consumer reporting agency is a reseller of the identified information.

(3) Notice. In carrying out its obligation under paragraph (2), the reseller shall

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

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

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

(e) Exception for verification companies. The provisions of this section do not apply to a

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

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

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

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

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

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

resulting from identity theft.

(f)

Access to blocked information by law enforcement agencies. No provision of this section

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

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

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

§ 606.

Disclosure of investigative consumer reports [15 U.S.C. § 1681d]

(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 609(c) [§ 1681g]; and

July 30, 2004

(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).

(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.

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

investigative consumer report unless the agency has received a certification under

subsection (a)(2) 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 613

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

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

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

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

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

(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

July 30, 2004

(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.

§ 607. Compliance procedures [15 U.S.C. § 1681e]

(a) Identity and purposes of credit users. Every consumer reporting agency shall maintain

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

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

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

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

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

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

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

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

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

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

(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.

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 title.

(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

July 30, 2004

(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 604 [§ 1681b] 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 604 [§ 1681b], including

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

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

(i)

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

(ii)

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

used; and

(iii)

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

purpose; and

(B)

before reselling the report, make reasonable efforts to verify the

identifications and certifications made under subparagraph (A).

(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-(

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

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

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

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

(B)

the agency or department certifies in writing to the person reselling the report

that nondisclosure is necessary to protect classified information or the safety

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

work or contracting with the agency or department.

§ 608.

Disclosures to governmental agencies [15 U.S.C. § 1681f]

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

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

July 30, 2004

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

employment, to a governmental agency.

§ 609.

Disclosures to consumers [15 U.S.C. § 1681g]

(a) Information on file; sources; report recipients. Every consumer reporting agency shall,

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

the consumer:

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

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

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

consumer not be included in the disclosure and the consumer reporting

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

consumer reporting agency shall so truncate such number in such

disclosure; and

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

reporting agency to disclose to a consumer any information concerning

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

consumer.

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

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

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

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

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

(3)(A)

Identification of each person (including each end-user identified under

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

(i)

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

on which the request is made; or

(ii)

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

which the request is made.

(B)

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

(i)

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

under which such person conducts business; and

(ii)

upon request of the consumer, the address and telephone number of the

person.

(C)

Subparagraph (A) does not apply if-(

the end user is an agency or department of the United States

Government that procures the report from the person for purposes of

July 30, 2004

determining the eligibility of the consumer to whom the report relates

to receive access or continued access to classified information (as

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

(ii)

the head of the agency or department makes a written finding as

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

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

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

disclosure.

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

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

insurance transaction that was not initiated by the consumer.

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

consumer may request and obtain a credit score.

(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 title except to the extent that the matter involved is contained in the files

of the consumer reporting agency on that date.

Obtain Credit Scores

(1) Commission Summary of Rights Required

(A)

In general. The Commission shall prepare a model summary of the rights

of consumers under this title.

(B)

Content of summary. The summary of rights prepared under subparagraph

(A) shall include a description of–

(i)

the right of a consumer to obtain a copy of a consumer report under

subsection (a) from each consumer reporting agency;

(ii)

the frequency and circumstances under which a consumer is entitled to

receive a consumer report without charge under section 612;

(iii)

the right of a consumer to dispute information in the file of the

consumer under section 611;

(iv)

the right of a consumer to obtain a credit score from a consumer

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

(v)

the method by which a consumer can contact, and obtain a consumer

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

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

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

July 30, 2004

(vi)

the method by which a consumer can contact, and obtain a consumer

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

as provided in the regulations of the Commission prescribed under

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

(C)

Availability of summary of rights. The Commission shall-(

actively publicize the availability of the summary of rights prepared

under this paragraph;

(ii)

conspicuously post on its Internet website the availability of such

summary of rights; and

(iii)

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

(2) Summary of rights required to be included with agency disclosures. A consumer

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

agency to the consumer under this section-(

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

(B)

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

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

are accessible to consumers during normal business hours;

(C)

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

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

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

(D)

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

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

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

learn of those rights; and

(E)

a statement that a consumer reporting agency is not required to remove

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

information is outdated under section 605 or cannot be verified.

(d) Summary of Rights of Identity Theft Victims

(1) In general. The Commission, in consultation with the Federal banking agencies and

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

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

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

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

(2) Summary of rights and contact information. Beginning 60 days after the date on

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

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

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

July 30, 2004

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

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

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

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

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

Commission to obtain more detailed information.

(e) Information Available to Victims

(1) In general. For the purpose of documenting fraudulent transactions resulting from

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

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

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

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

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

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

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

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

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

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

the victim;

(B)

any Federal, State, or local government law enforcement agency or officer

specified by the victim in such a request; or

(C)

any law enforcement agency investigating the identity theft and authorized

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

(2) Verification of identity and claim. Before a business entity provides any information

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

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

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

as proof of positive identification of the victim, at the election of the

business entity–

(i)

the presentation of a government-issued identification card;

(ii)

personally identifying information of the same type as was provided to

the business entity by the unauthorized person; or

(iii)

personally identifying information that the business entity typically

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

victim's request for information, including any documentation

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

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

a copy of a police report evidencing the claim of the victim of identity

theft; and

July 30, 2004

(ii)

a properly completed-(

copy of a standardized affidavit of identity theft developed and

made available by the Commission; or

(II)

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

purpose.

(3) Procedures. The request of a victim under paragraph (1) shall-(

be in writing;

(B)

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

(C)

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

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

with this section including–

(i)

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

of the application or transaction; and

(ii)

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

other identifying information such as an account or transaction

number.

(4) No charge to victim. Information required to be provided under paragraph (1)

shall be so provided without charge.

(5) Authority to decline to provide information. A business entity may decline to

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

business entity determines that-(

this subsection does not require disclosure of the information;

(B)

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

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

true identity of the individual requesting the information;

(C)

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

the individual requesting the information relevant to the request for

information; or

(D)

the information requested is Internet navigational data or similar

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

(6) Limitation on liability. Except as provided in section 621, sections 616 and 617 do

not apply to any violation of this subsection.

July 30, 2004

(7) Limitation on civil liability. No business entity may be held civilly liable under

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

pursuant to this subsection.

(8) No new recordkeeping obligation. Nothing in this subsection creates an obligation

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

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

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

(9) Rule of Construction

(A)

In general. No provision of subtitle A of title V of Public Law 106-102,

prohibiting the disclosure of financial information by a business entity to

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

under this subsection.

(B)

Limitation. Except as provided in subparagraph (A), nothing in this

subsection permits a business entity to disclose information, including

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

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

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

(10)

Affirmative defense. In any civil action brought to enforce this subsection, it is an

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

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

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

business records; and

(B)

the records requested under this subsection do not exist or are not

reasonably available.

(11)

Definition of victim. For purposes of this subsection, the term “victim” means a

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

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

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

theft or a similar crime.

(12)

Effective date. This subsection shall become effective 180 days after the date of

enactment of this subsection.

(13)

Effectiveness study. Not later than 18 months after the date of enactment of this

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

Congress assessing the effectiveness of this provision.

(f) Disclosure of Credit Scores

(1) In general. Upon the request of a consumer for a credit score, a consumer

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

July 30, 2004

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

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

(A)

the current credit score of the consumer or the most recent credit score of

the consumer that was previously calculated by the credit reporting agency

for a purpose related to the extension of credit;

(B)

the range of possible credit scores under the model used;

(C)

all of the key factors that adversely affected the credit score of the

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

subject to paragraph (9);

(D)

the date on which the credit score was created; and

(E)

the name of the person or entity that provided the credit score or credit file

upon which the credit score was created.

(2) Definitions. For purposes of this subsection, the following definitions shall apply:

(A)

The term “credit score” -(

means a numerical value or a categorization derived from a statistical

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

to predict the likelihood of certain credit behaviors, including default

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

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

(ii)

does not include-(

any mortgage score or rating of an automated underwriting system

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

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

financial assets of a consumer; or

(II)

any other elements of the underwriting process or underwriting decision.

(B)

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

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

their importance based on their effect on the credit score.

(3) Timeframe and manner of disclosure. The information required by this subsection

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

in subsection (a).

(4) Applicability to certain uses. This subsection shall not be construed so as to

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

does not-July

30, 2004

(A)

distribute scores that are used in connection with residential real property

loans; or

(B)

develop scores that assist credit providers in understanding the general

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

the consumer.

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

(A)

In general. This subsection shall not be construed to require a consumer

reporting agency that distributes credit scores developed by another person

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

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

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

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

methodology of the score.

(B)

Exception. This paragraph shall not apply to a consumer reporting agency

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

entity.

(6) Maintenance of credit scores not required. This subsection shall not be construed

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

(7) Compliance in certain cases. In complying with this subsection, a consumer

reporting agency shall-(

supply the consumer with a credit score that is derived from a credit

scoring model that is widely distributed to users by that consumer

reporting agency in connection with residential real property loans or with

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

assessment of the credit behavior of the consumer and predictions about

the future credit behavior of the consumer; and

(B)

a statement indicating that the information and credit scoring model may

be different than that used by the lender.

(8) Fair and reasonable fee. A consumer reporting agency may charge a fair and

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

required under this subsection.

(9) Use of enquiries as a key factor. If a key factor that adversely affects the credit

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

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

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

(g) Disclosure of Credit Scores by Certain Mortgage Lenders

July 30, 2004

(1) In general. Any person who makes or arranges loans and who uses a consumer

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

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

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

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

the following to the consumer as soon as reasonably practicable:

(A)

Information Required under Subsection (f)

(i)

In general. A copy of the information identified in subsection (f) that

was obtained from a consumer reporting agency or was developed and

used by the user of the information.

(ii)

Notice under subparagraph (D). In addition to the information provided

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

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

(B)

Disclosures in Case of Automated Underwriting System

(i)

In general. If a person that is subject to this subsection uses an automated

underwriting system to underwrite a loan, that person may

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

score and associated key factors supplied by a consumer reporting

agency.

(ii)

Numerical credit score. However, if a numerical credit score is

generated by an automated underwriting system used by an enterprise,

and that score is disclosed to the person, the score shall be disclosed to

the consumer consistent with subparagraph (C).

(iii)

Enterprise defined. For purposes of this subparagraph, the term “enterprise”

has the same meaning as in paragraph (6) of section 1303 of the

Federal Housing Enterprises Financial Safety and Soundness Act of

1992.

(C)

Disclosures of credit scores not obtained from a consumer reporting agency.

A person that is subject to the provisions of this subsection and that uses a

credit score, other than a credit score provided by a consumer reporting

agency, may satisfy the obligation to provide a credit score by disclosing a

credit score and associated key factors supplied by a consumer reporting

agency.

(D)

Notice to home loan applicants. A copy of the following notice, which shall

include the name, address, and telephone number of each consumer

reporting agency providing a credit score that was used:

“Notice To The Home Loan Applicant

July 30, 2004

“In connection with your application for a home loan, the lender must disclose to you the

score that a consumer reporting agency distributed to users and the lender used in connection

with your home loan, and the key factors affecting your credit scores.

“The credit score is a computer generated summary calculated at the time of the request

and based on information that a consumer reporting agency or lender has on file. The scores

are based on data about your credit history and payment patterns. Credit scores are important

because they are used to assist the lender in determining whether you will obtain a loan. They

may also be used to determine what interest rate you may be offered on the mortgage. Credit

scores can change over time, depending on your conduct, how your credit history and

payment patterns change, and how credit scoring technologies change.

“Because the score is based on information in your credit history, it is very important that

you review the credit-related information that is being furnished to make sure it is accurate.

Credit records may vary from one company to another.

“If you have questions about your credit score or the credit information that is furnished to

you, contact the consumer reporting agency at the address and telephone number provided

with this notice, or contact the lender, if the lender developed or generated the credit score.

The consumer reporting agency plays no part in the decision to take any action on the loan

application and is unable to provide you with specific reasons for the decision on a loan

application.

“If you have questions concerning the terms of the loan, contact the lender.”

(E)

Actions not required under this subsection. This subsection shall not require

any person to–

(i)

explain the information provided pursuant to subsection (f);

(ii)

disclose any information other than a credit score or key factors, as

defined in subsection (f);

(iii)

disclose any credit score or related information obtained by the user

after a loan has closed;

(iv)

provide more than 1 disclosure per loan transaction; or

(v)

provide the disclosure required by this subsection when another person

has made the disclosure to the consumer for that loan transaction.

(F)

No Obligation for Content

(i)

In general. The obligation of any person pursuant to this subsection

shall be limited solely to providing a copy of the information that was

received from the consumer reporting agency.

(ii)

Limit on liability. No person has liability under this subsection for the

content of that information or for the omission of any information

within the report provided by the consumer reporting agency.

July 30, 2004

(G)

Person defined as excluding enterprise. As used in this subsection, the term

“person” does not include an enterprise (as defined in paragraph (6) of section

1303 of the Federal Housing Enterprises Financial Safety and Soundness Act

of 1992).

(2) Prohibition on Disclosure Clauses Null and Void

(A)

In general. Any provision in a contract that prohibits the disclosure of a credit

score by a person who makes or arranges loans or a consumer reporting agency

is void.

(B)

No liability for disclosure under this subsection- A lender shall not have liability

under any contractual provision for disclosure of a credit score pursuant to this

subsection.

§ 610.

Conditions and form of disclosure to consumers [15 U.S.C. § 1681h]

(a) In General

(1)

Proper identification. A consumer reporting agency shall require, as a

condition of making the disclosures required under section 609 [§ 1681g], that

the consumer furnish proper identification.

(2)

Disclosure in writing. Except as provided in subsection (b), the disclosures

required to be made under section 609 [§ 1681g] 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 609 [§ 1681g]

(A)

other than in writing; and

(B)

in such form as may be

(i)

specified by the consumer in accordance with paragraph (2); and

(ii)

available from the agency.

(2) Form. A consumer may specify pursuant to paragraph (1) that disclosures under

section 609 [§ 1681g] shall be made

(A)

in person, upon the appearance of the consumer at the place of business of

the consumer reporting agency where disclosures are regularly provided,

during normal business hours, and on reasonable notice;

(B)

by telephone, if the consumer has made a written request for disclosure by

telephone;

July 30, 2004

(C)

by electronic means, if available from the agency; or

(D)

by any other reasonable means that is available from the agency.

explain to the consumer any information furnished to him pursuant to section 609

[§ 1681g] of this title.

(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 616 and 617 [§§ 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 609, 610, or 615 [§§ 1681g, 1681h, or

1681m] of this title or based on information disclosed by a user of a consumer report

to or for a consumer against whom the user has taken adverse action, based in whole

or in part on the report, except as to false information furnished with malice or willful

intent to injure such consumer.

§ 611.

Procedure in case of disputed accuracy [15 U.S.C. § 1681i]

(a) Reinvestigations of Disputed Information

(1) Reinvestigation Required

(A)

In general. Subject to subsection (f), 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, or indirectly through a reseller, of such dispute, the agency shall,

free of charge, conduct a reasonable reinvestigation to determine whether

the disputed information is inaccurate and record the current status of the

disputed information, or delete the item from the file in accordance with

paragraph (5), before the end of the 30-day period beginning on the date on

which the agency receives the notice of the dispute from the consumer or

reseller.

(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

July 30, 2004

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 or a reseller in accordance with paragraph (1), the

agency shall provide notification of the dispute to any person who provided

any item of information in dispute, at the address and in the manner

established with the person. The notice shall include all relevant

information regarding the dispute that the agency has received from the

consumer or reseller.

(B)

Provision of other information. 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 or the reseller after the period referred to in subparagraph

(A) and before the end of the period referred to in paragraph (1)(A).

(3) Determination That Dispute Is Frivolous or Irrelevant

(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.

July 30, 2004

(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–

(i)

promptly delete that item of information from the file of the consumer,

or modify that item of information, as appropriate, based on the results

of the reinvestigation; and

(ii)

promptly notify the furnisher of that information that the information

has been modified or deleted from the file of the consumer.

(B) Requirements Relating to Reinsertion of Previously Deleted Material

(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)).

July 30, 2004

(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) 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

July 30, 2004

(A)

provides prompt notice of the deletion to the consumer by telephone;

(B)

includes in that notice, or in a written notice that accompanies a confirmation

and consumer report provided in accordance with subparagraph (C), a

statement of the consumer's right to request under subsection (d) that the

agency furnish notifications under that subsection; and

(C)

provides written confirmation of the deletion and a copy of a consumer

report on the consumer that is based on the consumer's file after the

deletion, not later than 5 business days after making the deletion.

(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.

of a dispute is filed, unless there is reasonable grounds to believe that it is frivolous or

irrelevant, the consumer reporting agency shall, in any subsequent report containing

the information in question, clearly note that it is disputed by the consumer and

provide either the consumer's statement or a clear and accurate codification or

summary thereof.

(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.

(e) Treatment of Complaints and Report to Congress

(1) In general. The Commission shall-(

compile all complaints that it receives that a file of a consumer that is

maintained by a consumer reporting agency described in section 603(p)

contains incomplete or inaccurate information, with respect to which, the

consumer appears to have disputed the completeness or accuracy with the

consumer reporting agency or otherwise utilized the procedures provided

by subsection (a); and

(B)

transmit each such complaint to each consumer reporting agency involved.

(2) Exclusion. Complaints received or obtained by the Commission pursuant to its

investigative authority under the Federal Trade Commission Act shall not be

subject to paragraph (1).

July 30, 2004

(3) Agency responsibilities. Each consumer reporting agency described in section

603(p) that receives a complaint transmitted by the Commission pursuant to

paragraph (1) shall-(

review each such complaint to determine whether all legal obligations

imposed on the consumer reporting agency under this title (including any

obligation imposed by an applicable court or administrative order) have

been met with respect to the subject matter of the complaint;

(B)

provide reports on a regular basis to the Commission regarding the

determinations of and actions taken by the consumer reporting agency, if

any, in connection with its review of such complaints; and

(C)

maintain, for a reasonable time period, records regarding the disposition of

each such complaint that is sufficient to demonstrate compliance with this

subsection.

(4) Rulemaking authority. The Commission may prescribe regulations, as appropriate

to implement this subsection.

(5) Annual report. The Commission shall submit to the Committee on Banking,

Housing, and Urban Affairs of the Senate and the Committee on Financial

Services of the House of Representatives an annual report regarding information

gathered by the Commission under this subsection.'.

(f) Reinvestigation Requirement Applicable to Resellers

(1) Exemption from general reinvestigation requirement. Except as provided in paragraph

(2), a reseller shall be exempt from the requirements of this section.

(2) Action required upon receiving notice of a dispute. If a reseller receives a notice

from a consumer of a dispute concerning the completeness or accuracy of any item

of information contained in a consumer report on such consumer produced by the

reseller, the reseller shall, within 5 business days of receiving the notice, and free

of charge–

(A)

determine whether the item of information is incomplete or inaccurate as a

result of an act or omission of the reseller; and

(B) if (i) the reseller determines that the item of information is incomplete or

inaccurate as a result of an act or omission of the reseller, not later than 20

days after receiving the notice, correct the information in the consumer

report or delete it; or

(ii) if the reseller determines that the item of information is not incomplete or

inaccurate as a result of an act or omission of the reseller, convey the notice of

the dispute, together with all relevant information provided by the consumer, to

each consumer reporting agency that provided the reseller with the information

that is the subject of the dispute, using an address or a notification mechanism

specified by the consumer reporting agency for such notices.

July 30, 2004

(3) Responsibility of consumer reporting agency to notify consumer through reseller. Upon the

completion of a reinvestigation under this section of a dispute concerning the completeness

or accuracy of any information in the file of a consumer by a consumer reporting

agency that received notice of the dispute from a reseller under paragraph (2)-(

the notice by the consumer reporting agency under paragraph (6), (7), or (8) of

subsection (a) shall be provided to the reseller in lieu of the consumer; and

(B)

the reseller shall immediately reconvey such notice to the consumer, including any

notice of a deletion by telephone in the manner required under paragraph (8)(A).

(4) Reseller reinvestigations. No provision of this subsection shall be construed as prohibiting

a reseller from conducting a reinvestigation of a consumer dispute directly.

§ 612.

Charges for certain disclosures [15 U.S.C. § 1681j] See also 16 CFR Part 610

69 Fed. Reg. 35467 (06/24/04)

(a) Free Annual Disclosure

(1) Nationwide Consumer Reporting Agencies

(A) In general. All consumer reporting agencies described in subsections (p) and

(w) of section 603 shall make all disclosures pursuant to section 609 once

during any 12-month period upon request of the consumer and without charge

to the consumer.

(B)

Centralized source. Subparagraph (A) shall apply with respect to a consumer

reporting agency described in section 603(p) only if the request from the

consumer is made using the centralized source established for such purpose in

accordance with section 211(c) of the Fair and Accurate Credit Transactions

Act of 2003.

(i)

In general. The Commission shall prescribe regulations applicable to each

consumer reporting agency described in section 603(w) to require the establishment

of a streamlined process for consumers to request consumer reports

under subparagraph (A), which shall include, at a minimum, the establishment

by each such agency of a toll-free telephone number for such requests.

(ii)

Considerations. In prescribing regulations under clause (i), the

Commission shall consider–

(I)

the significant demands that may be placed on consumer reporting

agencies in providing such consumer reports;

(II)

appropriate means to ensure that consumer reporting agencies can

satisfactorily meet those demands, including the efficacy of a

system of staggering the availability to consumers of such

consumer reports; and

July 30, 2004

(III)

the ease by which consumers should be able to contact consumer

reporting agencies with respect to access to such consumer reports.

(iii)

Date of issuance. The Commission shall issue the regulations required

by this subparagraph in final form not later than 6 months after the date

of enactment of the Fair and Accurate Credit Transactions Act of 2003.

(iv)

Consideration of ability to comply. The regulations of the Commission

under this subparagraph shall establish an effective date by which each

nationwide specialty consumer reporting agency (as defined in section

603(w)) shall be required to comply with subsection (a), which

effective date-(

shall be established after consideration of the ability of each

nationwide specialty consumer reporting agency to comply with

subsection (a); and

(II)

shall be not later than 6 months after the date on which such

regulations are issued in final form (or such additional period not to

exceed 3 months, as the Commission determines appropriate).

(2) Timing. A consumer reporting agency shall provide a consumer report under

paragraph (1) not later than 15 days after the date on which the request is received

under paragraph (1).

(3) Reinvestigations. Notwithstanding the time periods specified in section 611(a)(1),

a reinvestigation under that section by a consumer reporting agency upon a

request of a consumer that is made after receiving a consumer report under this

subsection shall be completed not later than 45 days after the date on which the

request is received.

(4)

Exception for first 12 months of operation. This subsection shall not apply to a

consumer reporting agency that has not been furnishing consumer reports to third

parties on a continuing basis during the 12-month period preceding a request

under paragraph (1), with respect to consumers residing nationwide.

(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 609

[§ 1681g] without charge to the consumer if, not later than 60 days after receipt by

such consumer of a notification pursuant to section 615 [§ 1681m], or of a

notification from a debt collection agency affiliated with that consumer reporting

agency stating that the consumer's credit rating may be or has been adversely

affected, the consumer makes a request under section 609 [§ 1681g].

a consumer reporting agency shall make all disclosures pursuant to section 609

[§ 1681g] once during any 12-month period without charge to that consumer if the

consumer certifies in writing that the consumer

July 30, 2004

(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) Free disclosures in connection with fraud alerts. Upon the request of a consumer, a

consumer reporting agency described in section 603(p) shall make all disclosures

pursuant to section 609 without charge to the consumer, as provided in subsections

(a)(2) and (b)(2) of section 605A, as applicable.

(e) Other charges prohibited A consumer reporting agency shall not impose any charge

on a consumer for providing any notification required by this title or making any

disclosure required by this title, except as authorized by subsection (f).

(f) Reasonable Charges Allowed for Certain Disclosures

(1) In general. In the case of a request from a consumer other than a request that is

covered by any of subsections (a) through (d), a consumer reporting agency may

impose a reasonable charge on a consumer

(A)

for making a disclosure to the consumer pursuant to section 609 [§ 1681g],

which charge

(i)

shall not exceed $8;4 and

(ii)

shall be indicated to the consumer before making the disclosure; and

(B)

for furnishing, pursuant to 611(d) [§ 1681i], following a reinvestigation

under section 611(a) [§ 1681i], a statement, codification, or summary to a

person designated by the consumer under that section after the 30-day

period beginning on the date of notification of the consumer under

paragraph (6) or (8) of section 611(a) [§ 1681i] with respect to the

reinvestigation, which charge

(i)

shall not exceed the charge that the agency would impose on each

designated recipient for a consumer report; and

(ii)

shall be indicated to the consumer before furnishing such information.

(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.

The Federal Trade Commission increased the maximum allowable charge to $9.00, effective January 1,

2002. 66 Fed. Reg. 63545 (Dec. 7, 2001).

July 30, 2004

§ 613.

Public record information for employment purposes [15 U.S.C. § 1681k]

(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) 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 604(b)(4)(A).

§ 614.

Restrictions on investigative consumer reports [15 U.S.C. § 1681l]

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.

§ 615.

Requirements on users of consumer reports [15 U.S.C. § 1681m]

(a) Duties of users taking adverse actions on the basis of information contained in consumer

reports. If any person takes any adverse action with respect to any consumer that is

based in whole or in part on any information contained in a consumer report, the

person shall

(1) provide oral, written, or electronic notice of the adverse action to the consumer;

(2) provide to the consumer orally, in writing, or electronically

(A)

the name, address, and telephone number of the consumer reporting

agency (including a toll-free telephone number established by the agency

if the agency compiles and maintains files on consumers on a nationwide

basis) that furnished the report to the person; and

July 30, 2004

(B)

a statement that the consumer reporting agency did not make the decision

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

specific reasons why the adverse action was taken; and

(3)

provide to the consumer an oral, written, or electronic notice of the consumer's

right

(A)

to obtain, under section 612 [§ 1681j], a free copy of a consumer report on

the consumer from the consumer reporting agency referred to in paragraph

(2), which notice shall include an indication of the 60-day period under

that section for obtaining such a copy; and

(B)

to dispute, under section 611 [§ 1681i], with a consumer reporting agency

the accuracy or completeness of any information in a consumer report

furnished by the agency.

(b) Adverse Action Based on Information Obtained from Third Parties Other than

Consumer Reporting Agencies

(1) In general. Whenever credit for personal, family, or household purposes

involving a consumer is denied or the charge for such credit is increased either

wholly or partly because of information obtained from a person other than a

consumer reporting agency bearing upon the consumer's credit worthiness, credit

standing, credit capacity, character, general reputation, personal characteristics, or

mode of living, the user of such information shall, within a reasonable period of

time, upon the consumer's written request for the reasons for such adverse action

received within sixty days after learning of such adverse action, disclose the

nature of the information to the consumer. The user of such information shall

clearly and accurately disclose to the consumer his right to make such written

request at the time such adverse action is communicated to the consumer.

(2) Duties of Person Taking Certain Actions Based on Information Provided by

Affiliate

(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 603(k)(1)(A) [§ 1681a], taken in connection

with a transaction initiated by the consumer, or any adverse action

described in clause (i) or (ii) of section 603(k)(1)(B) [§ 1681a].

July 30, 2004

(i) except as provided in clause (ii), is information that

(I)

is furnished to the person taking the action by a person related by

common ownership or affiliated by common corporate control to

the person taking the action; and

(II)

bears on the credit worthiness, credit standing, credit capacity,

character, general reputation, personal characteristics, or mode of

living of the consumer; and

(ii) does not include

(I)

information solely as to transactions or experiences between the

consumer and the person furnishing the information; or

(II)

information in a consumer report.

violation of this section if he shows by a preponderance of the evidence that at the

time of the alleged violation he maintained reasonable procedures to assure

compliance with the provisions of this section.

(d) Duties of Users Making Written Credit or Insurance Solicitations on the Basis of

Information Contained in Consumer Files

(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 604(c)(1)(B) [§ 1681b], shall provide

with each written solicitation made to the consumer regarding the transaction a

clear and conspicuous statement that

(A)

information contained in the consumer's consumer report was used in

connection with the transaction;

(B)

the consumer received the offer of credit or insurance because the

consumer satisfied the criteria for credit worthiness or insurability under

which the consumer was selected for the offer;

(C)

if applicable, the credit or insurance may not be extended if, after the

consumer responds to the offer, the consumer does not meet the criteria

used to select the consumer for the offer or any applicable criteria bearing

on credit worthiness or insurability or does not furnish any required

collateral;

(D)

the consumer has a right to prohibit information contained in the

consumer's file with any consumer reporting agency from being used in

July 30, 2004

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

the consumer; and

(E)

the consumer may exercise the right referred to in subparagraph (D) by

notifying a notification system established under section 604(e) [§ 1681b].

(2) Disclosure of address and telephone number; format. A statement under paragraph

(1) shall-(

include the address and toll-free telephone number of the appropriate

notification system established under section 604(e); and

(B)

be presented in such format and in such type size and manner as to be

simple and easy to understand, as established by the Commission, by rule,

in consultation with the Federal banking agencies and the National Credit

Union Administration.

(3) Maintaining criteria on file. A person who makes an offer of credit or insurance to

a consumer under a credit or insurance transaction described in paragraph (1)

shall maintain on file the criteria used to select the consumer to receive the offer,

all criteria bearing on credit worthiness or insurability, as applicable, that are the

basis for determining whether or not to extend credit or insurance pursuant to the

offer, and any requirement for the furnishing of collateral as a condition of the

extension of credit or insurance, until the expiration of the 3-year period

beginning on the date on which the offer is made to the consumer.

(4) Authority of federal agencies regarding unfair or deceptive acts or practices not

affected. This section is not intended to affect the authority of any Federal or

State agency to enforce a prohibition against unfair or deceptive acts or practices,

including the making of false or misleading statements in connection with a credit

or insurance transaction that is not initiated by the consumer.

(e) Red Flag Guidelines and Regulations Required

(1) Guidelines. The Federal banking agencies, the National Credit Union

Administration, and the Commission shall jointly, with respect to the entities that

are subject to their respective enforcement authority under section 621–

(A)

establish and maintain guidelines for use by each financial institution and

each creditor regarding identity theft with respect to account holders at, or

customers of, such entities, and update such guidelines as often as

necessary;

(B)

prescribe regulations requiring each financial institution and each creditor

to establish reasonable policies and procedures for implementing the

guidelines established pursuant to subparagraph (A), to identify possible

risks to account holders or customers or to the safety and soundness of the

institution or customers; and

July 30, 2004

(C)

prescribe regulations applicable to card issuers to ensure that, if a card

issuer receives notification of a change of address for an existing account,

and within a short period of time (during at least the first 30 days after

such notification is received) receives a request for an additional or

replacement card for the same account, the card issuer may not issue the

additional or replacement card, unless the card issuer, in accordance with

reasonable policies and procedures-(

notifies the cardholder of the request at the former address of the

cardholder and provides to the cardholder a means of promptly

reporting incorrect address changes;

(ii)

notifies the cardholder of the request by such other means of communication

as the cardholder and the card issuer previously agreed to; or

(iii)

uses other means of assessing the validity of the change of address, in

accordance with reasonable policies and procedures established by the

card issuer in accordance with the regulations prescribed under

subparagraph (B).

(2) Criteria

(A)

In general. In developing the guidelines required by paragraph (1)(A), the

agencies described in paragraph (1) shall identify patterns, practices, and

specific forms of activity that indicate the possible existence of identity

theft.

(B)

Inactive accounts. In developing the guidelines required by paragraph

(1)(A), the agencies described in paragraph (1) shall consider including

reasonable guidelines providing that when a transaction occurs with

respect to a credit or deposit account that has been inactive for more than 2

years, the creditor or financial institution shall follow reasonable policies

and procedures that provide for notice to be given to a consumer in a

manner reasonably designed to reduce the likelihood of identity theft with

respect to such account.

(3) Consistency with verification requirements. Guidelines established pursuant to

paragraph (1) shall not be inconsistent with the policies and procedures required

under section 5318(l) of title 31, United States Code.

(f) Prohibition on Sale or Transfer of Debt Caused by Identity Theft

(1) In general. No person shall sell, transfer for consideration, or place for collection

a debt that such person has been notified under section 605B has resulted from

identity theft.

(2) Applicability. The prohibitions of this subsection shall apply to all persons

collecting a debt described in paragraph (1) after the date of a notification under

paragraph (1).

July 30, 2004

(3) Rule of construction. Nothing in this subsection shall be construed to prohibit-(

the repurchase of a debt in any case in which the assignee of the debt

requires such repurchase because the debt has resulted from identity theft;

(B)

the securitization of a debt or the pledging of a portfolio of debt as

collateral in connection with a borrowing; or

(C)

the transfer of debt as a result of a merger, acquisition, purchase and

assumption transaction, or transfer of substantially all of the assets of an

entity.

(g) Debt collector communications concerning identity theft. If a person acting as a debt

collector (as that term is defined in title VIII) on behalf of a third party that is a

creditor or other user of a consumer report is notified that any information relating to

a debt that the person is attempting to collect may be fraudulent or may be the result

of identity theft, that person shall-(

1) notify the third party that the information may be fraudulent or may be the result

of identity theft; and

(2) upon request of the consumer to whom the debt purportedly relates, provide to the

consumer all information to which the consumer would otherwise be entitled if

the consumer were not a victim of identity theft, but wished to dispute the debt

under provisions of law applicable to that person.

(h) Duties of Users in Certain Credit Transactions

(1) In general. Subject to rules prescribed as provided in paragraph (6), if any person

uses a consumer report in connection with an application for, or a grant,

extension, or other provision of, credit on material terms that are materially less

favorable than the most favorable terms available to a substantial proportion of

consumers from or through that person, based in whole or in part on a consumer

report, the person shall provide an oral, written, or electronic notice to the

consumer in the form and manner required by regulations prescribed in

accordance with this subsection.

(2) Timing. The notice required under paragraph (1) may be provided at the time of

an application for, or a grant, extension, or other provision of, credit or the time of

communication of an approval of an application for, or grant, extension, or other

provision of, credit, except as provided in the regulations prescribed under

paragraph (6).

(3) Exceptions. No notice shall be required from a person under this subsection if–

(A)

the consumer applied for specific material terms and was granted those

terms, unless those terms were initially specified by the person after the

transaction was initiated by the consumer and after the person obtained a

consumer report; or

July 30, 2004

(B)

the person has provided or will provide a notice to the consumer under

subsection (a) in connection with the transaction.

(4) Other notice not sufficient. A person that is required to provide a notice under

subsection (a) cannot meet that requirement by providing a notice under this

subsection.

(5) Content and delivery of notice. A notice under this subsection shall, at a minimum–

(A) include a statement informing the consumer that the terms offered to the

consumer are set based on information from a consumer report;

(B)

identify the consumer reporting agency furnishing the report;

(C)

include a statement informing the consumer that the consumer may obtain

a copy of a consumer report from that consumer reporting agency without

charge; and

(D)

include the contact information specified by that consumer reporting agency

for obtaining such consumer reports (including a toll-free telephone

number established by the agency in the case of a consumer reporting

agency described in section 603(p)).

(6) Rulemaking

(A)

Rules required. The Commission and the Board shall jointly prescribe

rules.

(B)

Content. Rules required by subparagraph (A) shall address, but are not

limited to–

(i)

the form, content, time, and manner of delivery of any notice under this

subsection;

(ii)

clarification of the meaning of terms used in this subsection, including

what credit terms are material, and when credit terms are materially

less favorable;

(iii)

exceptions to the notice requirement under this subsection for classes

of persons or transactions regarding which the agencies determine that

notice would not significantly benefit consumers;

(iv)

a model notice that may be used to comply with this subsection; and

(v)

the timing of the notice required under paragraph (1), including the

circumstances under which the notice must be provided after the terms

offered to the consumer were set based on information from a

consumer report.

July 30, 2004

(7) Compliance. A person shall not be liable for failure to perform the duties required

by this section if, at the time of the failure, the person maintained reasonable

policies and procedures to comply with this section.

(8) Enforcement

(A)

No civil actions. Sections 616 and 617 shall not apply to any failure by any

person to comply with this section.

(B)

Administrative enforcement. This section shall be enforced exclusively under

section 621 by the Federal agencies and officials identified in that section.

§ 616.

Civil liability for willful noncompliance [15 U.S.C. § 1681n]

(a) In general. Any person who willfully fails to comply with any requirement imposed

under this title with respect to any consumer is liable to that consumer in an amount

equal to the sum of

(1) (A)

any actual damages sustained by the consumer as a result of the failure or

damages of not less than $100 and not more than $1,000; or

(B)

in the case of liability of a natural person for obtaining a consumer report

under false pretenses or knowingly without a permissible purpose, actual

damages sustained by the consumer as a result of the failure or $1,000,

whichever is greater;

(2) such amount of punitive damages as the court may allow; and

(3) in the case of any successful action to enforce any liability under this section, the

costs of the action together with reasonable attorney's fees as determined by the

court.

(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.

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.

§ 617.

Civil liability for negligent noncompliance [15 U.S.C. § 1681o]

(a) In general. Any person who is negligent in failing to comply with any requirement

imposed under this title with respect to any consumer is liable to that consumer in an

amount equal to the sum of

July 30, 2004

(1) any actual damages sustained by the consumer as a result of the failure; and

(2) in the case of any successful action to enforce any liability under this section, the

costs of the action together with reasonable attorney's fees as determined by the

court.

(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.

§ 618. Jurisdiction of courts; limitation of actions [15 U.S.C. § 1681p]

An action to enforce any liability created under this title may be brought in any

appropriate United States district court, without regard to the amount in controversy, or in

any other court of competent jurisdiction, not later than the earlier of (1) 2 years after the

date of discovery by the plaintiff of the violation that is the basis for such liability; or (2) 5

years after the date on which the violation that is the basis for such liability occurs.

§ 619. Obtaining information under false pretenses [15 U.S.C. § 1681q]

Any person who knowingly and willfully obtains information on a consumer from a

consumer reporting agency under false pretenses shall be fined under title 18, United States

Code, imprisoned for not more than 2 years, or both.

§ 620. Unauthorized disclosures by officers or employees [15 U.S.C. § 1681r]

Any officer or employee of a consumer reporting agency who knowingly and willfully

provides information concerning an individual from the agency's files to a person not

authorized to receive that information shall be fined under title 18, United States Code,

imprisoned for not more than 2 years, or both.

§ 621. Administrative enforcement [15 U.S.C. § 1681s]

(a) (1) Enforcement by Federal Trade Commission. Compliance with the requirements

imposed under this title shall be enforced under the Federal Trade Commission

Act [15 U.S.C. §§ 41 et seq.] by the Federal Trade Commission with respect to

consumer reporting agencies and all other persons subject thereto, except to the

extent that enforcement of the requirements imposed under this title is specifically

committed to some other government agency under subsection (b) hereof. For the

purpose of the exercise by the Federal Trade Commission of its functions and

powers under the Federal Trade Commission Act, a violation of any requirement

or prohibition imposed under this title shall constitute an unfair or deceptive act

or practice in commerce in violation of section 5(a) of the Federal Trade

Commission Act [15 U.S.C. § 45(a)] and shall be subject to enforcement by the

Federal Trade Commission under section 5(b) thereof [15 U.S.C. § 45(b)] with

respect to any consumer reporting agency or person subject to enforcement by the

Federal Trade Commission pursuant to this subsection, irrespective of whether

July 30, 2004 63

that person is engaged in commerce or meets any other jurisdictional tests in the

Federal Trade Commission Act. The Federal Trade Commission shall have such

procedural, investigative, and enforcement powers, including the power to issue

procedural rules in enforcing compliance with the requirements imposed under

this title and to require the filing of reports, the production of documents, and the

appearance of witnesses as though the applicable terms and conditions of the

Federal Trade Commission Act were part of this title. Any person violating any of

the provisions of this title shall be subject to the penalties and entitled to the

privileges and immunities provided in the Federal Trade Commission Act as

though the applicable terms and provisions thereof were part of this title.

(2) (A)

In the event of a knowing violation, which constitutes a pattern or practice

of violations of this title, the Commission may commence a civil action to

recover a civil penalty in a district court of the United States against any

person that violates this title. In such action, such person shall be liable for

a civil penalty of not more than $2,500 per violation.

(B)

In determining the amount of a civil penalty under subparagraph (A), the

court shall take into account the degree of culpability, any history of prior

such conduct, ability to pay, effect on ability to continue to do business,

and such other matters as justice may require.

(3) Notwithstanding paragraph (2), a court may not impose any civil penalty on a

person for a violation of section 623(a)(1) [§ 1681s-2] unless the person has been

enjoined from committing the violation, or ordered not to commit the violation, in

an action or proceeding brought by or on behalf of the Federal Trade Commission,

and has violated the injunction or order, and the court may not impose any

civil penalty for any violation occurring before the date of the violation of the

injunction or order.

(b) Enforcement by other agencies. Compliance with the requirements imposed under this

title with respect to consumer reporting agencies, persons who use consumer reports

from such agencies, persons who furnish information to such agencies, and users of

information that are subject to subsection (d) of section 615 [§ 1681m] shall be

enforced under

(1) section 8 of the Federal Deposit Insurance Act [12 U.S.C. § 1818], in the case of

(A)

national banks, and Federal branches and Federal agencies of foreign

banks, by the Office of the Comptroller of the Currency;

(B)

member banks of the Federal Reserve System (other than national banks),

branches and agencies of foreign banks (other than Federal branches,

Federal agencies, and insured State branches of foreign banks),

commercial lending companies owned or controlled by foreign banks, and

organizations operating under section 25 or 25A of the Federal Reserve

Act [12 U.S.C. §§ 601 et seq., §§ 611 et seq], by the Board of Governors

of the Federal Reserve System; and

July 30, 2004

(C)

banks insured by the Federal Deposit Insurance Corporation (other than members

of the Federal Reserve System) and insured State branches of foreign

banks, by the Board of Directors of the Federal Deposit Insurance Corporation;

(2) section 8 of the Federal Deposit Insurance Act [12 U.S.C. § 1818], by the

Director of the Office of Thrift Supervision, in the case of a savings association

the deposits of which are insured by the Federal Deposit Insurance Corporation;

(3) the Federal Credit Union Act [12 U.S.C. §§ 1751 et seq.], by the Administrator of

the National Credit Union Administration [National Credit Union Administration

Board] with respect to any Federal credit union;

(4) subtitle IV of title 49 [49 U.S.C. §§ 10101 et seq.], by the Secretary of

Transportation, with respect to all carriers subject to the jurisdiction of the Surface

Transportation Board;

(5) the Federal Aviation Act of 1958 [49 U.S.C. Appx §§ 1301 et seq.], by the

Secretary of Transportation with respect to any air carrier or foreign air carrier

subject to that Act [49 U.S.C. Appx §§ 1301 et seq.]; and

(6) the Packers and Stockyards Act, 1921 [7 U.S.C. §§ 181 et seq.] (except as

provided in section 406 of that Act [7 U.S.C. §§ 226 and 227]), by the Secretary

of Agriculture with respect to any activities subject to that Act.

The terms used in paragraph (1) that are not defined in this title or otherwise defined in section

3(s) of the Federal Deposit Insurance Act (12 U.S.C. §1813(s)) shall have the meaning

given to them in section 1(b) of the International Banking Act of 1978 (12 U.S.C. § 3101).

(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 title, the State

(A)

may bring an action to enjoin such violation in any appropriate United

States district court or in any other court of competent jurisdiction;

(B)

subject to paragraph (5), may bring an action on behalf of the residents of

the State to recover

(i)

damages for which the person is liable to such residents under sections

616 and 617 [§§ 1681n and 1681o] as a result of the violation;

(ii)

in the case of a violation described in any of paragraphs (1) through (3) of

section 623(c), damages for which the person would, but for section

623(c) [§ 1681s-2], be liable to such residents as a result of the violation;

(iii)

damages of not more than $1,000 for each willful or negligent violation; and

July 30, 2004

(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) 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 for a

violation of this title, no State may, during the pendency of such action, bring an

action under this section against any defendant named in the complaint of the

Commission or the appropriate Federal regulator for any violation of this title that

is alleged in that complaint.

(5) Limitations on State Actions for Certain Violations

(A)

Violation of injunction required. A State may not bring an action against a

person under paragraph (1)(B) for a violation described in any of

paragraphs (1) through (3) of section 623(c), unless

(i)

the person has been enjoined from committing the violation, in an

action brought by the State under paragraph (1)(A); and

(ii)

the person has violated the injunction.

(B)

Limitation on damages recoverable. In an action against a person under

paragraph (1)(B) for a violation described in any of paragraphs (1) through

(3) of section 623(c), a State may not recover any damages incurred before

the date of the violation of an injunction on which the action is based.

July 30, 2004

(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 title shall be

deemed to be a violation of a requirement imposed under that Act. In addition to its

powers under any provision of law specifically referred to in subsection (b) of this

section, each of the agencies referred to in that subsection may exercise, for the

purpose of enforcing compliance with any requirement imposed under this title any

other authority conferred on it by law.

(e) Regulatory authority

(1) The Federal banking agencies referred to in paragraphs (1) and (2) of subsection

(b) shall jointly prescribe such regulations as necessary to carry out the purposes

of this Act with respect to any persons identified under paragraphs (1) and (2) of

subsection (b), and the Board of Governors of the Federal Reserve System shall

have authority to prescribe regulations consistent with such joint regulations with

respect to bank holding companies and affiliates (other than depository

institutions and consumer reporting agencies) of such holding companies.

(2) The Board of the National Credit Union Administration shall prescribe such

regulations as necessary to carry out the purposes of this Act with respect to any

persons identified under paragraph (3) of subsection (b).

(f) Coordination of Consumer Complaint Investigations

(1) In general. Each consumer reporting agency described in section 603(p) shall

develop and maintain procedures for the referral to each other such agency of any

consumer complaint received by the agency alleging identity theft, or requesting a

fraud alert under section 605A or a block under section 605B.

(2) Model form and procedure for reporting identity theft. The Commission, in

consultation with the Federal banking agencies and the National Credit Union

Administration, shall develop a model form and model procedures to be used by

consumers who are victims of identity theft for contacting and informing creditors

and consumer reporting agencies of the fraud.

(3) Annual summary reports. Each consumer reporting agency described in section

603(p) shall submit an annual summary report to the Commission on consumer

complaints received by the agency on identity theft or fraud alerts.

(g) FTC regulation of coding of trade names. If the Commission determines that a person

described in paragraph (9) of section 623(a) has not met the requirements of such

paragraph, the Commission shall take action to ensure the person's compliance with

such paragraph, which may include issuing model guidance or prescribing reasonable

policies and procedures, as necessary to ensure that such person complies with such

paragraph.

§ 622. Information on overdue child support obligations [15 U.S.C. § 1681s-1]

July 30, 2004 67

Notwithstanding any other provision of this title, a consumer reporting agency shall

include in any consumer report furnished by the agency in accordance with section 604

[§ 1681b] of this title, any information on the failure of the consumer to pay overdue support

which

(1) is provided

(A)

to the consumer reporting agency by a State or local child support enforcement

agency; or

(B)

to the consumer reporting agency and verified by any local, State, or

Federal government agency; and

(2) antedates the report by 7 years or less.

§ 623. Responsibilities of furnishers of information to consumer reporting agencies

[15 U.S.C. § 1681s-2]

(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 has reasonable cause to believe 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.

(D)

Definition. For purposes of subparagraph (A), the term “reasonable cause to

believe that the information is inaccurate” means having specific knowledge,

other than solely allegations by the consumer, that would cause a reasonable

person to have substantial doubts about the accuracy of the information.

(2) Duty to correct and update information. A person who

July 30, 2004

(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)

In general. 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 date of

delinquency on the account, which shall be the month and year of the

commencement of the delinquency on the account that immediately

preceded the action.

(B)

Rule of construction. For purposes of this paragraph only, and provided

that the consumer does not dispute the information, a person that furnishes

information on a delinquent account that is placed for collection, charged

for profit or loss, or subjected to any similar action, complies with this

paragraph, if-(

the person reports the same date of delinquency as that provided by the

creditor to which the account was owed at the time at which the

commencement of the delinquency occurred, if the creditor previously

reported that date of delinquency to a consumer reporting agency;

(ii)

the creditor did not previously report the date of delinquency to a

consumer reporting agency, and the person establishes and follows

reasonable procedures to obtain the date of delinquency from the

creditor or another reliable source and reports that date to a consumer

reporting agency as the date of delinquency; or

July 30, 2004

(iii)

the creditor did not previously report the date of delinquency to a

consumer reporting agency and the date of delinquency cannot be

reasonably obtained as provided in clause (ii), the person establishes

and follows reasonable procedures to ensure the date reported as the

date of delinquency precedes the date on which the account is placed

for collection, charged to profit or loss, or subjected to any similar

action, and reports such date to the credit reporting agency.

(6) Duties of Furnishers Upon Notice of Identity Theft-Related Information

(A)

Reasonable procedures. A person that furnishes information to any

consumer reporting agency shall have in place reasonable procedures to

respond to any notification that it receives from a consumer reporting

agency under section 605B relating to information resulting from identity

theft, to prevent that person from refurnishing such blocked information.

(B)

Information alleged to result from identity theft. If a consumer submits an

identity theft report to a person who furnishes information to a consumer

reporting agency at the address specified by that person for receiving such

reports stating that information maintained by such person that purports to

relate to the consumer resulted from identity theft, the person may not

furnish such information that purports to relate to the consumer to any

consumer reporting agency, unless the person subsequently knows or is

informed by the consumer that the information is correct.

(7) Negative Information

(A)

Notice to Consumer Required

(i)

In general. If any financial institution that extends credit and regularly

and in the ordinary course of business furnishes information to a consumer

reporting agency described in section 603(p) furnishes negative

information to such an agency regarding credit extended to a customer,

the financial institution shall provide a notice of such furnishing of

negative information, in writing, to the customer.

(ii)

Notice effective for subsequent submissions. After providing such notice,

the financial institution may submit additional negative information to

a consumer reporting agency described in section 603(p) with respect

to the same transaction, extension of credit, account, or customer

without providing additional notice to the customer.

(B)

Time of Notice

(i)

In general. The notice required under subparagraph (A) shall be

provided to the customer prior to, or no later than 30 days after,

furnishing the negative information to a consumer reporting agency

described in section 603(p).

July 30, 2004

(ii)

Coordination with new account disclosures. If the notice is provided to

the customer prior to furnishing the negative information to a

consumer reporting agency, the notice may not be included in the

initial disclosures provided under section 127(a) of the Truth in

Lending Act.

(C)

Coordination with other disclosures-The notice required under subparagraph

(A)-(

may be included on or with any notice of default, any billing statement,

or any other materials provided to the customer; and

(ii)

must be clear and conspicuous.

(D)

Model Disclosure

(i)

Duty of board to prepare. The Board shall prescribe a brief model

disclosure a financial institution may use to comply with subparagraph

(A), which shall not exceed 30 words.

(ii)

Use of model not required. No provision of this paragraph shall be

construed as requiring a financial institution to use any such model

form prescribed by the Board.

(iii)

Compliance using model. A financial institution shall be deemed to be

in compliance with subparagraph (A) if the financial institution uses

any such model form prescribed by the Board, or the financial

institution uses any such model form and rearranges its format.

(E)

Use of notice without submitting negative information. No provision of this

paragraph shall be construed as requiring a financial institution that has

provided a customer with a notice described in subparagraph (A) to

furnish negative information about the customer to a consumer reporting

agency.

(F)

Safe harbor. A financial institution shall not be liable for failure to

perform the duties required by this paragraph if, at the time of the failure,

the financial institution maintained reasonable policies and procedures to

comply with this paragraph or the financial institution reasonably believed

that the institution is prohibited, by law, from contacting the consumer.

(G)

Definitions. For purposes of this paragraph, the following definitions shall apply:

(i)

The term “negative information” means information concerning a customer's

delinquencies, late payments, insolvency, or any form of default.

(ii)

The terms “customer” and “financial institution” have the same meanings as

in section 509 Public Law 106-102.

July 30, 2004

(8) Ability of Consumer to Dispute Information Directly with Furnisher

(A)

In general. The Federal banking agencies, the National Credit Union Administration,

and the Commission shall jointly prescribe regulations that

shall identify the circumstances under which a furnisher shall be required to

reinvestigate a dispute concerning the accuracy of information contained in

a consumer report on the consumer, based on a direct request of a consumer.

(B)

Considerations. In prescribing regulations under subparagraph (A), the

agencies shall weigh-(

the benefits to consumers with the costs on furnishers and the credit

reporting system;

(ii)

the impact on the overall accuracy and integrity of consumer reports of

any such requirements;

(iii)

whether direct contact by the consumer with the furnisher would likely

result in the most expeditious resolution of any such dispute; and

(iv)

the potential impact on the credit reporting process if credit repair

organizations, as defined in section 403(3) [15 U.S.C. §1679a(3)],

including entities that would be a credit repair organization, but for

section 403(3)(B)(i), are able to circumvent the prohibition in

subparagraph (G).

(C)

Applicability. Subparagraphs (D) through (G) shall apply in any circumstance

identified under the regulations promulgated under subparagraph

(A).

(D)

Submitting a notice of dispute-A consumer who seeks to dispute the

accuracy of information shall provide a dispute notice directly to such

person at the address specified by the person for such notices that-(

identifies the specific information that is being disputed;

(ii)

explains the basis for the dispute; and

(iii)

includes all supporting documentation required by the furnisher to

substantiate the basis of the dispute.

(E)

Duty of person after receiving notice of dispute. After receiving a notice of

dispute from a consumer pursuant to subparagraph (D), the person that

provided the information in dispute to a consumer reporting agency shall-(

conduct an investigation with respect to the disputed information;

(ii)

review all relevant information provided by the consumer with the notice;

July 30, 2004

(iii)

complete such person's investigation of the dispute and report the

results of the investigation to the consumer before the expiration of the

period under section 611(a)(1) within which a consumer reporting

agency would be required to complete its action if the consumer had

elected to dispute the information under that section; and

(iv)

if the investigation finds that the information reported was inaccurate,

promptly notify each consumer reporting agency to which the person

furnished the inaccurate information of that determination and provide

to the agency any correction to that information that is necessary to

make the information provided by the person accurate.

(F) Frivolous or Irrelevant Dispute

(i)

In general. This paragraph shall not apply if the person receiving a notice

of a dispute from a consumer reasonably determines that the dispute is

frivolous or irrelevant, including-(

by reason of the failure of a consumer to provide sufficient

information to investigate the disputed information; or

(II)

the submission by a consumer of a dispute that is substantially the

same as a dispute previously submitted by or for the consumer,

either directly to the person or through a consumer reporting

agency under subsection (b), with respect to which the person has

already performed the person's duties under this paragraph or

subsection (b), as applicable.

(ii)

Notice of determination. Upon making any determination under clause

(i) that a dispute is frivolous or irrelevant, the person shall notify the

consumer of such determination not later than 5 business days after

making such determination, by mail or, if authorized by the consumer

for that purpose, by any other means available to the person.

(iii)

Contents of notice. A notice under clause (ii) shall include-(

the reasons for the determination under clause (i); and

(II)

identification of any information required to investigate the

disputed information, which may consist of a standardized form

describing the general nature of such information.

(G)

Exclusion of credit repair organizations. This paragraph shall not apply if

the notice of the dispute is submitted by, is prepared on behalf of the

consumer by, or is submitted on a form supplied to the consumer by, a

credit repair organization, as defined in section 403(3), or an entity that

would be a credit repair organization, but for section 403(3)(B)(i).

July 30, 2004

(9) Duty to provide notice of status as medical information furnisher. A person whose

primary business is providing medical services, products, or devices, or the

person's agent or assignee, who furnishes information to a consumer reporting

agency on a consumer shall be considered a medical information furnisher for

purposes of this title, and shall notify the agency of such status.

(b) Duties of Furnishers of Information upon Notice of Dispute

(1) In general. After receiving notice pursuant to section 611(a)(2) [§ 1681i] 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 611(a)(2) [§ 1681i];

(C)

report the results of the investigation to the consumer reporting agency;

(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; and

(E)

if an item of information disputed by a consumer is found to be inaccurate

or incomplete or cannot be verified after any reinvestigation under

paragraph (1), for purposes of reporting to a consumer reporting agency

only, as appropriate, based on the results of the reinvestigation promptly–

(i)

modify that item of information;

(ii)

delete that item of information; or

(iii)

permanently block the reporting of that item of information.

(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

611(a)(1) [§ 1681i] within which the consumer reporting agency is required to

complete actions required by that section regarding that information.

617 do not apply to any violation of-(

1) subsection (a) of this section, including any regulations issued thereunder;

(2) subsection (e) of this section, except that nothing in this paragraph shall limit,

expand, or otherwise affect liability under section 616 or 617, as applicable, for

violations of subsection (b) of this section; or

July 30, 2004

(3) subsection (e) of section 615.

(d) Limitation on enforcement. The provisions of law described in paragraphs (1) through

(3) of subsection (c) (other than with respect to the exception described in paragraph

(2) of subsection (c)) shall be enforced exclusively as provided under section 621 by

the Federal agencies and officials and the State officials identified in section 621.

(e) Accuracy Guidelines and Regulations Required

(1) Guidelines. The Federal banking agencies, the National Credit Union

Administration, and the Commission shall, with respect to the entities that are

subject to their respective enforcement authority under section 621, and in

coordination as described in paragraph (2)-(

establish and maintain guidelines for use by each person that furnishes

information to a consumer reporting agency regarding the accuracy and

integrity of the information relating to consumers that such entities furnish

to consumer reporting agencies, and update such guidelines as often as

necessary; and

(B)

prescribe regulations requiring each person that furnishes information to a

consumer reporting agency to establish reasonable policies and procedures

for implementing the guidelines established pursuant to subparagraph (A).

(2) Coordination. Each agency required to prescribe regulations under paragraph (1)

shall consult and coordinate with each other such agency so that, to the extent

possible, the regulations prescribed by each such entity are consistent and

comparable with the regulations prescribed by each other such agency.

(3) Criteria. In developing the guidelines required by paragraph (1)(A), the agencies

described in paragraph (1) shall-(

identify patterns, practices, and specific forms of activity that can

compromise the accuracy and integrity of information furnished to

consumer reporting agencies;

(B)

review the methods (including technological means) used to furnish

information relating to consumers to consumer reporting agencies;

(C)

determine whether persons that furnish information to consumer reporting

agencies maintain and enforce policies to assure the accuracy and integrity

of information furnished to consumer reporting agencies; and

(D)

examine the policies and processes that persons that furnish information to

consumer reporting agencies employ to conduct reinvestigations and

correct inaccurate information relating to consumers that has been

furnished to consumer reporting agencies.

July 30, 2004

§ 624. Affiliate sharing [15 U.S.C. § 1681s-3]

(a) Special Rule for Solicitation for Purposes of Marketing

(1) Notice. Any person that receives from another person related to it by common

ownership or affiliated by corporate control a communication of information that

would be a consumer report, but for clauses (i), (ii), and (iii) of section

603(d)(2)(A), may not use the information to make a solicitation for marketing

purposes to a consumer about its products or services, unless-(

it is clearly and conspicuously disclosed to the consumer that the

information may be communicated among such persons for purposes of

making such solicitations to the consumer; and

(B)

the consumer is provided an opportunity and a simple method to prohibit

the making of such solicitations to the consumer by such person.

(2) Consumer Choice

(A)

In general. The notice required under paragraph (1) shall allow the

consumer the opportunity to prohibit all solicitations referred to in such

paragraph, and may allow the consumer to choose from different options

when electing to prohibit the sending of such solicitations, including

options regarding the types of entities and information covered, and which

methods of delivering solicitations the consumer elects to prohibit.

(B)

Format. Notwithstanding subparagraph (A), the notice required under

paragraph (1) shall be clear, conspicuous, and concise, and any method

provided under paragraph (1)(B) shall be simple. The regulations

prescribed to implement this section shall provide specific guidance

regarding how to comply with such standards.

(3) Duration

(A)

In general. The election of a consumer pursuant to paragraph (1)(B) to

prohibit the making of solicitations shall be effective for at least 5 years,

beginning on the date on which the person receives the election of the

consumer, unless the consumer requests that such election be revoked.

(B)

Notice upon expiration of effective period. At such time as the election of a

consumer pursuant to paragraph (1)(B) is no longer effective, a person

may not use information that the person receives in the manner described

in paragraph (1) to make any solicitation for marketing purposes to the

consumer, unless the consumer receives a notice and an opportunity, using

a simple method, to extend the opt-out for another period of at least 5

years, pursuant to the procedures described in paragraph (1).

(4) Scope. This section shall not apply to a person–

July 30, 2004

(A)

using information to make a solicitation for marketing purposes to a

consumer with whom the person has a pre-existing business relationship;

(B)

using information to facilitate communications to an individual for whose

benefit the person provides employee benefit or other services pursuant to

a contract with an employer related to and arising out of the current

employment relationship or status of the individual as a participant or

beneficiary of an employee benefit plan;

(C)

using information to perform services on behalf of another person related

by common ownership or affiliated by corporate control, except that this

subparagraph shall not be construed as permitting a person to send

solicitations on behalf of another person, if such other person would not be

permitted to send the solicitation on its own behalf as a result of the

election of the consumer to prohibit solicitations under paragraph (1)(B);

(D)

using information in response to a communication initiated by the

consumer;

(E)

using information in response to solicitations authorized or requested by

the consumer; or

(F)

if compliance with this section by that person would prevent compliance

by that person with any provision of State insurance laws pertaining to

unfair discrimination in any State in which the person is lawfully doing

business.

(5) No retroactivity. This subsection shall not prohibit the use of information to send

a solicitation to a consumer if such information was received prior to the date on

which persons are required to comply with regulations implementing this

subsection.

(b) Notice for other purposes permissible. A notice or other disclosure under this section

may be coordinated and consolidated with any other notice required to be issued

under any other provision of law by a person that is subject to this section, and a

notice or other disclosure that is equivalent to the notice required by subsection (a),

and that is provided by a person described in subsection (a) to a consumer together

with disclosures required by any other provision of law, shall satisfy the requirements

of subsection (a).

received from another person related to it by common ownership or affiliated by

corporate control, such as the requirements of this section, constitute requirements

with respect to the exchange of information among persons affiliated by common

ownership or common corporate control, within the meaning of section 625(b)(2).

July 30, 2004

(d) Definitions. For purposes of this section, the following definitions shall apply:

(1) The term “pre-existing business relationship” means a relationship between a

person, or a person's licensed agent, and a consumer, based on-(

a financial contract between a person and a consumer which is in force;

(B)

the purchase, rental, or lease by the consumer of that person's goods or

services, or a financial transaction (including holding an active account or

a policy in force or having another continuing relationship) between the

consumer and that person during the 18-month period immediately

preceding the date on which the consumer is sent a solicitation covered by

this section;

(C)

an inquiry or application by the consumer regarding a product or service

offered by that person, during the 3-month period immediately preceding

the date on which the consumer is sent a solicitation covered by this

section; or

(D)

any other pre-existing customer relationship defined in the regulations

implementing this section.

(2) The term “solicitation” means the marketing of a product or service initiated by a

person to a particular consumer that is based on an exchange of information

described in subsection (a), and is intended to encourage the consumer to

purchase such product or service, but does not include communications that are

directed at the general public or determined not to be a solicitation by the

regulations prescribed under this section.

§ 625.

Relation to State laws [15 U.S.C. § 1681t]

(a) In general. Except as provided in subsections (b) and (c), this title does not annul,

alter, affect, or exempt any person subject to the provisions of this title from

complying with the laws of any State with respect to the collection, distribution, or

use of any information on consumers, or for the prevention or mitigation of identity

theft, except to the extent that those laws are inconsistent with any provision of this

title, 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 604 [§ 1681b], relating to the prescreening

of consumer reports;

July 30, 2004

(B)

section 611 [§ 1681i], 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 the date of enactment of the

Consumer Credit Reporting Reform Act of 1996;

(C)

subsections (a) and (b) of section 615 [§ 1681m], relating to the duties of a

person who takes any adverse action with respect to a consumer;

(D)

section 615(d) [§ 1681m], 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 605 [§ 1681c], relating to information contained in consumer

reports, except that this subparagraph shall not apply to any State law in

effect on the date of enactment of the Consumer Credit Reporting Reform

Act of 1996;

(F)

section 623 [§ 1681s-2], 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 the date of enactment of the Consumer

Credit Reporting Reform Act of 1996); or

(ii)

with respect to section 1785.25(a) of the California Civil Code (as in

effect on the date of enactment of the Consumer Credit Reporting

Reform Act of 1996);

(G)

section 609(e), relating to information available to victims under section

609(e);

(H)

section 624, relating to the exchange and use of information to make a

solicitation for marketing purposes; or

(I)

section 615(h), relating to the duties of users of consumer reports to

provide notice with respect to terms in certain credit transactions;

(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 the date of enactment of the Consumer Credit

Reporting Reform Act of 1996);

July 30, 2004

(3) with respect to the disclosures required to be made under subsection (c), (d), (e),

or (g) of section 609, or subsection (f) of section 609 relating to the disclosure of

credit scores for credit granting purposes, except that this paragraph-(

shall not apply with respect to sections 1785.10, 1785.16, and 1785.20.2 of

the California Civil Code (as in effect on the date of enactment of the Fair

and Accurate Credit Transactions Act of 2003) and section 1785.15

through section 1785.15.2 of such Code (as in effect on such date);

(B)

shall not apply with respect to sections 5-3-106(2) and 212-14.3-104.3 of

the Colorado Revised Statutes (as in effect on the date of enactment of the

Fair and Accurate Credit Transactions Act of 2003); and

(C)

shall not be construed as limiting, annulling, affecting, or superseding any

provision of the laws of any State regulating the use in an insurance

activity, or regulating disclosures concerning such use, of a credit-based

insurance score of a consumer by any person engaged in the business of

insurance;

(4) with respect to the frequency of any disclosure under section 612(a), except that

this paragraph shall not apply–

(A)

with respect to section 12-14.3-105(1)(d) of the Colorado Revised Statutes

(as in effect on the date of enactment of the Fair and Accurate Credit

Transactions Act of 2003);

(B)

with respect to section 10-1-393(29)(C) of the Georgia Code (as in effect

on the date of enactment of the Fair and Accurate Credit Transactions Act

of 2003);

(C)

with respect to section 1316.2 of title 10 of the Maine Revised Statutes (as

in effect on the date of enactment of the Fair and Accurate Credit

Transactions Act of 2003);

(D)

with respect to sections 14-1209(a)(1) and 14-1209(b)(1)(i) of the

Commercial Law Article of the Code of Maryland (as in effect on the date

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

(E)

with respect to section 59(d) and section 59(e) of chapter 93 of the General

Laws of Massachusetts (as in effect on the date of enactment of the Fair

and Accurate Credit Transactions Act of 2003);

(F)

with respect to section 56:11-37.10(a)(1) of the New Jersey Revised

Statutes (as in effect on the date of enactment of the Fair and Accurate

Credit Transactions Act of 2003); or

July 30, 2004

(G)

with respect to section 2480c(a)(1) of title 9 of the Vermont Statutes

Annotated (as in effect on the date of enactment of the Fair and Accurate

Credit Transactions Act of 2003); or

(5) with respect to the conduct required by the specific provisions of-(

A) section 605(g);

(B) section 605A;

(D) section 609(a)(1)(A);

(E) section 612(a);

(F) subsections (e), (f), and (g) of section 615;

(G) section 621(f);

(H) section 623(a)(6); or

(I) section 628.

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 603(l) [§ 1681a] 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) do not affect any settlement, agreement, or

consent judgment between any State Attorney General and any consumer reporting

agency in effect on the date of enactment of the Consumer Credit Reporting Reform

Act of 1996.

§ 626.

Disclosures to FBI for counterintelligence purposes [15 U.S.C. § 1681u]

(a) Identity of financial institutions. Notwithstanding section 604 [§ 1681b] or any other

provision of this title, a consumer reporting agency shall furnish to the Federal

Bureau of Investigation the names and addresses of all financial institutions (as that

term is defined in section 1101 of the Right to Financial Privacy Act of 1978 [12

U.S.C. § 3401]) at which a consumer maintains or has maintained an account, to the

extent that information is in the files of the agency, when presented with a written

request for that information, signed by the Director of the Federal Bureau of

Investigation, or the Director's designee 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

July 30, 2004

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 604 [§ 1681b] or

any other provision of this title, a consumer reporting agency shall furnish identifying

information respecting a consumer, limited to name, address, former addresses,

places of employment, or former places of employment, to the Federal Bureau of

Investigation when presented with a written request, signed by the Director or the

Director's designee, which certifies compliance with this subsection. The Director or

the Director's designee 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 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.

[§ 1681b] or any other provision of this title, 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 of 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), 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.

July 30, 2004 82

(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 Act. Nothing in this section shall be construed to

authorize or permit the withholding of information from the Congress.

(h) Reports to Congress. On a semiannual basis, the Attorney General shall fully inform

the Permanent Select Committee on Intelligence and the Committee on Banking,

Finance and Urban Affairs of the House of Representatives, and the Select

Committee on Intelligence and the Committee on Banking, Housing, and Urban

Affairs of the Senate concerning all requests made pursuant to subsections (a), (b),

and (c).

(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

July 30, 2004

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 title, 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 title, 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 title, 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.

§ 627. Disclosures to governmental agencies for counterterrorism purposes [15 U.S.C. §1681v]

(a) Disclosure. Notwithstanding section 604 or any other provision of this title, 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) 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.

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).

(d) Rule of construction. Nothing in section 626 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 title, 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

July 30, 2004

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.

§ 628. Disposal of records [15 U.S.C. §1681w]

(a) Regulations

(1) In general. Not later than 1 year after the date of enactment of this section, the

Federal banking agencies, the National Credit Union Administration, and the

Commission with respect to the entities that are subject to their respective

enforcement authority under section 621, and the Securities and Exchange

Commission, and in coordination as described in paragraph (2), shall issue final

regulations requiring any person that maintains or otherwise possesses consumer

information, or any compilation of consumer information, derived from consumer

reports for a business purpose to properly dispose of any such information or

compilation.

(2) Coordination. Each agency required to prescribe regulations under paragraph (1)

shall–

(A)

consult and coordinate with each other such agency so that, to the extent

possible, the regulations prescribed by each such agency are consistent and

comparable with the regulations by each such other agency; and

(B)

ensure that such regulations are consistent with the requirements and

regulations issued pursuant to Public Law 106-102 and other provisions of

Federal law.

(3) Exemption authority. In issuing regulations under this section, the Federal banking

agencies, the National Credit Union Administration, the Commission, and the

Securities and Exchange Commission may exempt any person or class of persons

from application of those regulations, as such agency deems appropriate to carry

out the purpose of this section.

(b) Rule of construction. Nothing in this section shall be construed-(

1) to require a person to maintain or destroy any record pertaining to a consumer

that is not imposed under other law; or

(2) to alter or affect any requirement imposed under any other provision of law to

maintain or destroy such a record.

§ 629. Corporate and technological circumvention prohibited [15 U.S.C. §1681x]

The Commission shall prescribe regulations, to become effective not later than 90

days after the date of enactment of this section, to prevent a consumer reporting agency from

July 30, 2004

circumventing or evading treatment as a consumer reporting agency described in section

603(p) for purposes of this title, including-

(1) by means of a corporate reorganization or restructuring, including a merger, acquisition,

dissolution, divestiture, or asset sale of a consumer reporting agency; or

(2) by maintaining or merging public record and credit account information in a

manner that is substantially equivalent to that described in paragraphs (1) and (2)

of section 603(p), in the manner described in section 603(p).

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