The Fair Credit Reporting Act

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THE FAIR CREDIT REPORTING ACT – July 30, 2004

As a public service, the staff of the Federal Trade Commission (FTC) has prepared the following complete text of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq. Although staff generally followed the format of the U.S. Code as published by the Government Printing Office, the format of this text does differ in minor ways from the Code (and from West’s U.S. Code Annotated). For example, this version uses FCRA section numbers (§§ 601-625) in the headings. (The relevant U.S. Code citation is included with each section heading and each reference to the FCRA in the text.) Although the staff has made every effort to transcribe the statutory material accurately, this compendium is intended only as a convenience for the public and not a substitute for the text in the U. S. Code. This document was posted on July 30, 2004.

This version of the FCRA includes the amendments to the FCRA set forth in the Consumer Credit Reporting Reform Act of 1996 (Public Law 104-208, the Omnibus Consolidated Appro- priations Act for Fiscal Year 1997, Title II, Subtitle D, Chapter 1), Section 311 of the Intelligence Authorization for Fiscal Year 1998 (Public Law 105-107), the Consumer Reporting Employment Clarification Act of 1998 (Public Law 105-347), Section 506 of the Gramm-Leach- Bliley Act (Public Law 106-102), Sections 358(g) and 505(c) of Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) (Public Law 107-56), and Fair, Accurate Credit Transactions Act of 2003 (FACT Act) (Public Law 108-159).

The provisions added to the FCRA by the FACT Act will become effective at different times. In some cases, the provision includes its own effective date. In other cases, the FACT Act provides that the effective dates be prescribed by the FTC and Federal Reserve Board. See 16 CFR Part 602. (69 Fed. Reg. 6526; February 11, 2004) (69 Fed. Reg. 29061; May 20, 2004).

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

July 30, 2004 2 – § 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

(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

(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 in connection with a consumer report means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee.

(i) The term “medical information” —

(1) means information or data, whether oral or recorded, in any form or medium, created by or derived from a health care provider or the consumer, that relates to–

(A) the past, present, or future physical, mental, or behavioral health or condition of an individual;

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

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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 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 receipt of 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

(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 making the communication and is actually used for no other purpose, need not be disclosed other than under appropriate discovery procedures in a court of competent jurisdiction in which action is brought;

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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–

(A) is on active duty (as defined in section 101(d)(1) of title 10, United States Code) or is a reservist performing duty under a call or order to active duty under a provision of law referred to in section 101(a)(13) of title 10,
United States Code; and

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

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

(A) notifies all prospective users of a consumer report relating to the consumer that the consumer may be a victim of fraud, including identity theft, or is an active duty military consumer, as applicable; and

(B) is presented in a manner that facilitates a clear and conspicuous view of the statement described in subparagraph (A) by any person requesting such consumer report.

(3) The term “identity theft” means a fraud committed using the identifying information of another person, subject to such further definition as the Commission may prescribe, by regulation.

(4) The term “identity theft report” has the meaning given that term by rule of the Commission, and means, at a minimum, a report–

(A) that alleges an identity theft;

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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) 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 10 consumer for purposes of furnishing such information to any third party, to the extent of such activities; and

(2) does not maintain a database of the assembled or merged information from which new consumer reports are produced.

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

(w) The term “nationwide specialty consumer reporting agency” means a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis relating to–

(1) medical records or payments;

(2) residential or tenant history;

(3) check writing history;

(4) employment history; or

(5) insurance claims.

(x) Exclusion of Certain Communications for Employee Investigations

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

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

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

(i) suspected misconduct relating to employment; or

(ii) compliance with Federal, State, or local laws and regulations, the rules of a self-regulatory organization, or any preexisting written policies of the employer;

(C) the communication is not made for the purpose of investigating a consumer’s credit worthiness, credit standing, or credit capacity; and

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

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

(ii) to any Federal or State officer, agency, or department, or any officer, agency, or department of a unit of general local government;

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(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

(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

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(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–

(i) a clear and conspicuous disclosure has been made in writing to the consumer at any time
before the report is procured or caused to be procured, in a document that consists solely of the
disclosure, that a consumer report may be obtained for employment purposes; and

(ii) the consumer has authorized in writing (which authorization may be made on the document
referred to in clause (i)) the procurement of the report by that person.

(B) Application by mail, telephone, computer, or other similar means. If a consumer described in subparagraph (C) applies for employment by mail, telephone, computer, or other similar means, at any time before a consumer report is procured or caused to be procured in connection with that application–

(i) the person who procures the consumer report on the consumer for employment purposes shall provide to the consumer, by oral, written, or electronic means, notice that a consumer report may be obtained for employment purposes, and a summary of the consumer’s rights under section 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–

(i) the consumer is applying for a position over which the Secretary of Transportation has the power to establish qualifications and maximum hours of service pursuant to the provisions of section 31502 of title 49, or a position subject to safety regulation by a State transportation agency; and

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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–

(i) 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–

(I) that adverse action has been taken based in whole or in part on a consumer report
received from a consumer reporting agency;

(II) of the name, address and telephone number of the consumer reporting agency that furnished
the consumer report (including a toll-free telephone number established by the agency if the agency
compiles and maintains files on consumers on a nationwide basis);

(III) that the consumer reporting agency did not make the decision to take the adverse action
and is unable to provide to the consumer the specific reasons why the adverse action was taken; and

(IV) that the consumer may, upon providing proper identification, request a free copy of a report and may dispute with the consumer reporting agency the accuracy or completeness of any information in a report.

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).

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(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 identifi- cation, 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–

(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 employ- ment purposes, paragraph (3) shall not apply
to any adverse action by such agency or department which is based in part on such consumer report,
if the head of such agency or department makes a written finding that–

(i) the consumer report is relevant to a national security investigation of such agency or department;

(ii) the investigation is within the jurisdiction of such agency or department;

(iii) there is reason to believe that compliance with paragraph (3) will–

(I) endanger the life or physical safety of any person;

(II) result in flight from prosecution;

(III) result in the destruction of, or tampering with, evidence relevant to the investigation;

(IV) result in the intimidation of a potential witness relevant to the investigation;

(V) result in the compromise of classified information; or

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(VI) otherwise seriously jeopardize or unduly delay the investigation or another official proceeding.

(B) Notification of consumer upon conclusion of investigation. Upon the conclusion of a
national security investigation described in subparagraph (A), or upon the determination that the
exception under subparagraph (A) is no longer required for the reasons set forth in such
subparagraph, the official exercising the authority in such subparagraph shall provide to the
consumer who is the subject of the consumer report with regard to which such finding was made–

(i) a copy of such consumer report with any classified information redacted as necessary;

(ii) notice of any adverse action which is based, in part, on the consumer report; and

(iii) the identification with reasonable specificity of the nature of the investigation for
which the consumer report was sought.

(C) Delegation by head of agency or department. For purposes of subparagraphs (A) and (B), the head of any agency or department of the United States Government may delegate his or her authorities under this paragraph to an official of such agency or department who has personnel security responsibilities and is a member of the Senior Executive Service or equivalent civilian or military rank.

(D) Report to the Congress. Not later than January 31 of each year, the head of each agency
and department of the United States Government that exercised authority under this paragraph during
the preceding year shall submit a report to the Congress on the number of times the department or
agency exercised such authority during the year.

(E) Definitions. For purposes of this paragraph, the following definitions shall apply:

(i) 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.

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(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 18

(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 19

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–

(A) if furnished in connection with an insurance transaction, the consumer affirmatively
consents to the furnishing of the report;

July 30, 2004 20

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

(i) the information to be furnished is relevant to process or effect the employment or credit transaction; and

(ii) the consumer provides specific written consent for the furnishing of the report that
describes in clear and conspicuous language the use for which the information will be furnished; or

(C) the information to be furnished pertains solely to transactions, accounts, or balances
relating to debts arising from the receipt of medical services, products, or devises, where such
information, other than account status or amounts, is restricted or reported using codes that do
not identify, or do not provide information sufficient to infer, the specific provider or the
nature of such services, products, or devices, as provided in section 605(a)(6).

(2) Limitation on creditors. Except as permitted pursuant to paragraph (3)(C) or regu- lations
prescribed under paragraph (5)(A), a creditor shall not obtain or use medi- cal 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 determina- tions.
Section 603(d)(3) shall not be construed so as to treat information or any communication of
information as a consumer report if the information or communication is disclosed–

(A) in connection with the business of insurance or annuities, including the activities described in section 18B of the model Privacy of Consumer Financial and Health Information Regulation issued by the National Association of Insurance Commissioners (as in effect on January 1, 2003);

(B) for any purpose permitted without authorization under the Standards for Individually
Identifiable Health Information promulgated by the Department of Health and Human Services pursuant
to the Health Insurance Portability and Accountability Act of 1996, or referred to under section
1179 of such Act, or described in section 502(e) of Public Law 106-102; or

(C) as otherwise determined to be necessary and appropriate, by regulation or order and
subject to paragraph (6), by the Commission, any Federal banking agency or the National Credit
Union Administration (with respect to any financial institution subject to the jurisdiction of such
agency or Administration under paragraph (1), (2), or (3) of section 621(b), or the applicable
State insurance authority (with respect to any person engaged in providing insurance or annuities).

July 30, 2004 21

(4) Limitation on re-disclosure 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. Govern- ment 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 22

(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–

(A) such name, address, and telephone number are restricted or reported using codes that do
not identify, or provide information sufficient to infer, the specific provider or the nature of
such services, products, or devices to a person other than the consumer; or

(B) the report is being provided to an insurance company for a purpose relating to engaging in
the business of insurance other than property and casualty insurance.

(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 23

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–

(A) 3 years after the date of enactment of this subsection, with respect to any cash register
or other machine or device that electronically prints receipts for cred- it card or debit card
transactions that is in use before January 1, 2005; and

(B) 1 year after the date of enactment of this subsection, with respect to any cash register
or other machine or device that electronically prints receipts for credit card or debit card
transactions that is first put into use on or after January 1, 2005.

(h) Notice of Discrepancy in Address

July 30, 2004 24

(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–

(i) to form a reasonable belief that the user knows the identity of the person to whom the
consumer report pertains; and

(ii) if the user establishes a continuing relationship with the consumer, and the user
regularly and in the ordinary course of business furnishes information to the consumer reporting
agency from which the notice of discrepancy pertaining to the consumer was obtained, to reconcile
the address of the consumer with the consumer reporting agency by furnishing such address to such
consumer reporting agency as part of information regularly furnished by the user for the period in
which the relationship is established.

§ 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–

July 30, 2004

(A) include a fraud alert in the file of that consumer, and also provide that alert along with
any credit score generated in using that file, for a period of not less than 90 days, beginning on
the date of such request, unless the consumer or such representative requests that such fraud alert
be removed before the end of such period, and the agency has received appropriate proof of the identity of the requester for such purpose; and 25

(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–

(A) disclose to the consumer that the consumer may request a free copy of the file of the
consumer pursuant to section 612(d); and

(B) provide to the consumer all disclosures required to be made under section 609, without charge to the consumer, not later than 3 business days after any request described in subparagraph (A).

(b) Extended Alerts

(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–

(A) include a fraud alert in the file of that consumer, and also provide that alert along with
any credit score generated in using that file, during the 7-year period beginning on the date of
such request, unless the consumer or such representative requests that such fraud alert be removed
before the end of such period and the agency has received appropriate proof of the identity of the
requester for such purpose;

(B) during the 5-year period beginning on the date of such request, exclude the consumer from
any list of consumers prepared by the consumer reporting agency and provided to any third party to
offer credit or insurance to the consumer as part of a transaction that was not initiated by the
consumer, unless the consumer or such representative requests that such exclusion be rescinded
before the end of such period; and

(C) refer the information regarding the extended fraud alert under this paragraph to each of
the other consumer reporting agencies described in section 603(p), in accordance with procedures
developed under section 621(f).

(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–

(A) disclose to the consumer that the consumer may request 2 free copies of the file of the
consumer pursuant to section 612(d) during the 12-month

July 30, 2004 26

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).

(c) Active duty alerts. Upon the direct request of an active duty military consumer, or an
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 27

(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 28

(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 29

(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–

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

(B) the information was blocked, or a block was requested by the consumer, on the basis of a
material misrepresentation of fact by the consumer relevant to the request to block; or

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

(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–

(A) is a reseller;

(B) is not, at the time of the request of the consumer under subsection (a), otherwise furnishing or reselling a consumer report concerning the information identified by the consumer; and

(C) informs the consumer, by any means, that the consumer may report the identity theft to the
Commission to obtain consumer information regarding identity theft.

July 30, 2004 30

(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–

(A) the consumer, in accordance with the provisions of subsection (a), identifies, to a
consumer reporting agency, information in the file of the consumer that resulted from identity
theft; and

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

(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 sec- tion
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 31

(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.

(c) Limitation on liability upon showing of reasonable procedures for compliance with provisions.
No person may be held liable for any violation of subsection (a) or (b) of this section if he shows by a preponderance of the evidence that at the time of the violation he maintained reasonable procedures to assure compliance with subsection (a) or (b) of this section.

(d) Prohibitions

(1) Certification. A consumer reporting agency shall not prepare or furnish 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 con- sumer 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 out- standing 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 32

(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 iden- tify 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.

(c) Disclosure of consumer reports by users allowed. A consumer reporting agency may not prohibit
a user of a consumer report furnished by the agency on a consumer from disclosing the contents of
the report to the consumer, if adverse action against the consumer has been taken by the user based
in whole or in part on the report.

(d) Notice to Users and Furnishers of Information

(1) Notice requirement. A consumer reporting agency shall provide to any person

(A) who regularly and in the ordinary course of business furnishes information to the agency with respect to any consumer; or

(B) to whom a consumer report is provided by the agency; a notice of such person’s responsibilities under this title. (2) Content of notice. The Federal Trade Commission shall prescribe the content of noti- ces 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 33

(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–

(A) the end user is an agency or department of the United States Government which procures the report from the person for purposes of determining the eligibility of the consumer concerned to receive access or continued access to classified information (as defined in section 604(b)(4)(E)(i)); and

(B) the agency or department certifies in writing to the person reselling the report that
nondisclosure is necessary to protect classified information or the safety of persons employed by
or contracting with, or undergoing investigation for work or contracting with the agency or department.

§ 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 34

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.

July 30, 2004

(i) the end user is an agency or department of the United States Government that procures the report from the person for purposes of 35

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.

(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;

July 30, 2004

(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
36

(vi) the method by which a consumer can contact, and obtain a consumer report from, a consumer
reporting agency described in section 603(w), as provided in the regulations of the Commission prescribed under section 612(a)(1)(C).

(i) actively publicize the availability of the summary of rights prepared under this paragraph;

(ii) conspicuously post on its Internet website the availability of such summary of rights; and

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

(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–

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

(B) in the case of a consumer reporting agency described in section 603(p), a toll-free
telephone number established by the agency, at which personnel are accessible to consumers during
normal business hours;

(C) a list of all Federal agencies responsible for enforcing any provision of this title, and the address and any appropriate phone number of each such agency, in a form that will assist the consumer in selecting the appropriate agency;

(D) a statement that the consumer may have additional rights under State law, and that the
consumer may wish to contact a State or local consumer protection agency or a State attorney
general (or the equivalent thereof) to learn of those rights; and

(E) a statement that a consumer reporting agency is not required to remove accurate derogatory information from the file of a consumer, unless the information is outdated under section 605 or cannot be verified.

(d) Summary of Rights of Identity Theft Victims

(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 37

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–

(A) the victim;

(B) any Federal, State, or local government law enforcement agency or officer specified by the
victim in such a request; or

(C) any law enforcement agency investigating the identity theft and authorized by the victim
to take receipt of records provided under this subsection.

(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–

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

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

(ii) personally identifying information of the same type as was provided to the business
entity by the unauthorized person; or

(iii) personally identifying information that the business entity typically requests from new applicants or for new transactions, at the time of the victim’s request for information, including any documentation described in clauses (i) and (ii); and

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

July 30, 2004

(i) a copy of a police report evidencing the claim of the victim of identity theft; and 38

(ii) a properly completed–

(I) copy of a standardized affidavit of identity theft developed and made available by the Commission; or

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

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

(A) be in writing;

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

(C) if asked by the business entity, include relevant information about any transaction
alleged to be a result of identity theft to facilitate compliance with this section including–

(i) if known by the victim (or if readily obtainable by the victim), the date of the application or transaction; and

(ii) if known by the victim (or if readily obtainable by the victim), any other identifying
information such as an account or transaction number.

(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–

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

(B) after reviewing the information provided pursuant to paragraph (2), the business entity does not have a high degree of confidence in knowing the true identity of the individual requesting the information;

(C) the request for the information is based on a misrepresentation of fact by the individual
requesting the information relevant to the request for information; or

(D) the information requested is Internet navigational data or similar information about a
person’s visit to a website or online service.

(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 39

(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 record keeping 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–

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

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

(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 40

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” —

(i) means a numerical value or a categorization derived from a statistical tool or modeling
system used by a person who makes or arranges a loan to predict the likelihood of certain credit
behaviors, including default (and the numerical value or the categorization derived from such
analy- sis may also be referred to as a “risk predictor” or “risk score”); and

(ii) does not include–

(I) any mortgage score or rating of an automated underwriting system that considers one or
more factors in addition to credit information, including the loan to value ratio, the amount of
down payment, or the financial assets of a consumer; or

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

(B) The term “key factors” means all relevant elements or reasons adversely affecting the credit score for the particular individual, listed in the order of their importance based on their effect on the credit score.

(3) Time frame and manner of disclosure. The information required by this subsection shall be
provided in the same time frame 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 41

(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–

(A) supply the consumer with a credit score that is derived from a credit scoring model that is widely distributed to users by that consumer reporting agency in connection with residential real property loans or with a credit score that assists the consumer in understanding the credit scoring assessment of the credit behavior of the consumer and predictions about the future credit behavior of the consumer; and

(B) a statement indicating that the information and credit scoring model may be different
than that used by the lender.

(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 42

(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 auto- mated 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 “enter- prise” 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 43

“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 44

(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 45

(D) by any other reasonable means that is available from the agency.

(c) Trained personnel. Any consumer reporting agency shall provide trained personnel to explain to
the consumer any information furnished to him pursuant to section 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 re-investigation 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 re-investigate. 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 re-investigation.

July 30, 2004

(C) Limitations on extension of period to reinvestigate. Subparagraph (B) shall not apply to
any reinvestigation in which, during the 30-day period 46

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
subpara- graph (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.

(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 47

(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.

July 30, 2004

(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)).
48

(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 49

(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 confirma- tion 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.

(c) Notification of consumer dispute in subsequent consumer reports. Whenever a statement of a
dispute is filed, unless there is reasonable grounds to believe that it is frivolous or irrelevant,
the consumer reporting agency shall, in any subsequent 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–

(A) compile all complaints that it receives that a file of a consumer that is maintained by a
consumer reporting agency described in section 603(p) contains incomplete or inaccurate information, with respect to which, the consumer appears to have disputed the completeness or accuracy with the consumer reporting agency or otherwise utilized the procedures provided by subsection (a); and

(B) transmit each such complaint to each consumer reporting agency involved.

(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 50

(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–

(A) review each such complaint to determine whether all legal obligations imposed on the
consumer reporting agency under this title (including any obligation imposed by an applicable court
or administrative order) have been met with respect to the subject matter of the complaint;

(B) provide reports on a regular basis to the Commission regarding the determinations of and
actions taken by the consumer reporting agency, if any, in connection with its review of such
complaints; and

(C) maintain, for a reasonable time period, records regarding the disposition of each such
complaint that is sufficient to demonstrate compliance with this subsection.

(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 para- graph (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

July 30, 2004

(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.
51

(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 complete- ness or
accuracy of any information in the file of a consumer by a consumer reporting agency that received
notice of the dispute from a reseller under paragraph (2)–

(A) the notice by the consumer reporting agency under paragraph (6), (7), or (8) of subsection
(a) shall be provided to the reseller in lieu of the consumer; and

(B) the reseller shall immediately reconvey such notice to the consumer, including any notice
of a deletion by telephone in the manner required under paragraph (8)(A).

(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 estab- lishment of a streamlined
process for consumers to request consumer reports under subparagraph (A), which shall include, at a
minimum, the establish- ment 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 52

(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–

(I) shall be established after consideration of the ability of each nationwide specialty
consumer reporting agency to comply with subsection (a); and

(II) shall be not later than 6 months after the date on which such regulations are issued in
final form (or such additional period not to exceed 3 months, as the Commission determines
appropriate).

(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].

(c) Free disclosure under certain other circumstances. Upon the request of the consumer, 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 53

(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.

4 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 54

§ 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 55

(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 con- sumer 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.

July 30, 2004

(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]. 56

(i) except as provided in clause (ii), is information that

(I) is furnished to the person taking the action by a person related by common ownership or
affiliated by common corporate control to the person taking the action; and

(II) bears on the credit worthiness, credit standing, credit capacity, character, general
reputation, personal characteristics, or mode of living of the consumer; and

(ii) does not include

(I) information solely as to transactions or experiences between the consumer and the person
furnishing the information; or

(II) information in a consumer report.

(c) Reasonable procedures to assure compliance. No person shall be held liable for any violation
of this section if he shows by a preponderance of the evidence that at the time of the alleged
violation he maintained reasonable procedures to assure compliance with the provisions of this section.

(d) Duties of Users Making Written Credit or Insurance Solicitations on the Basis of Information
Contained in Consumer Files

(1) In general. Any person who uses a consumer report on any consumer in connec- tion 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 57

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–

(A) include the address and toll-free telephone number of the appropriate notification system
established under section 604(e); and

(B) be presented in such format and in such type size and manner as to be simple and easy to
understand, as established by the Commission, by rule, in consultation with the Federal banking
agencies and the National Credit Union Administration.

(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 58

(C) prescribe regulations applicable to card issuers to ensure that, if a card issuer receives
notification of a change of address for an existing account, and within a short period of time
(during at least the first 30 days after such notification is received) receives a request for an
additional or replacement card for the same account, the card issuer may not issue the additional
or replacement card, unless the card issuer, in accordance with reasonable policies and procedures–

(i) notifies the cardholder of the request at the former address of the cardholder and
provides to the cardholder a means of promptly reporting incorrect address changes;

(ii) notifies the cardholder of the request by such other means of communication as the
cardholder and the card issuer previously agreed to; or

(iii) uses other means of assessing the validity of the change of address, in accordance with reasonable policies and procedures established by the card issuer in accordance with the regulations prescribed under subparagraph (B).

(2) Criteria

(A) In general, 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 59

(3) Rule of construction. Nothing in this subsection shall be construed to prohibit–

(A) the repurchase of a debt in any case in which the assignee of the debt requires such
repurchase because the debt has resulted from identity theft;

(B) the securitization of a debt or the pledging of a portfolio of debt as collateral in
connection with a borrowing; or

(C) the transfer of debt as a result of a merger, acquisition, purchase and assumption
transaction, or transfer of substantially all of the assets of an entity.

(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 60

(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 agen- cy 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 61

(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.

(c) Attorney’s fees. Upon a finding by the court that an unsuccessful pleading, motion, or other
paper filed in connection with an action under this section was filed in bad faith or for purposes
of harassment, the court shall award to the prevailing party attorney’s fees reasonable in relation
to the work expended in responding to the pleading, motion, or other paper.

§ 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 62

(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 Commis- sion, 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 64

(C) banks insured by the Federal Deposit Insurance Corporation (other than mem- bers 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 sec-
tion 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; or

(iii) damages of not more than $1,000 for each willful or negligent violation; and

July 30, 2004 65

(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;

(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 66

(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 enforce- ment 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 subpara- graph (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 68

(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 informa- tion
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–

(i) the person reports the same date of delinquency as that provided by the creditor to
which the account was owed at the time at which the commencement of the delinquency occurred, if
the creditor previously reported that date of delinquency to a consumer reporting agency;

July 30, 2004

(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 69

(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 con- sumer 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 70

(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.

(i) may be included on or with any notice of default, any billing statement, or any other
materials provided to the customer; and

(ii) must be clear and conspicuous.

(D) Model Disclosure

(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 71

(8) Ability of Consumer to Dispute Information Directly with Furnisher

(A) In general. The Federal banking agencies, the National Credit Union Ad- ministration, 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–

(i) the benefits to consumers with the costs on furnishers and the credit reporting system;

(ii) the impact on the overall accuracy and integrity of consumer reports of any such requirements;

(iii) whether direct contact by the consumer with the furnisher would likely result in the
most expeditious resolution of any such dispute; and

(iv) the potential impact on the credit reporting process if credit repair organizations, as
defined in section 403(3) [15 U.S.C. §1679a(3)], including entities that would be a credit repair
organization, but for section 403(3)(B)(i), are able to circumvent the prohibition in subparagraph
(G).

(C) Applicability. Subparagraphs (D) through (G) shall apply in any circum- stance 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–

(i) identifies the specific information that is being disputed;

(ii) explains the basis for the dispute; and

(iii) includes all supporting documentation required by the furnisher to substantiate the
basis of the dispute.

(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–

(i) conduct an investigation with respect to the disputed information;

(ii) review all relevant information provided by the consumer with the notice;

July 30, 2004 72

(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–

(I) by reason of the failure of a consumer to provide sufficient information to investigate
the disputed information; or

(II) the submission by a consumer of a dispute that is substantially the same as a dispute
previously submitted by or for the consumer, either directly to the person or through a consumer
reporting agency under subsection (b), with respect to which the person has already performed the
person’s duties under this paragraph or subsection (b), as applicable.

(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–

(I) the reasons for the determination under clause (i); and

(II) identification of any information required to investigate the disputed information, which
may consist of a standardized form describing the general nature of such information.

(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 73

(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];

(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.

(c) Limitation on liability. Except as provided in section 621(c)(1)(B), sections 616 and 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 74

(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)–

(A) 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–

(A) 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 75

§ 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–

(A) 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 76

(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).

(c) User requirements. Requirements with respect to the use by a person of information 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 77

(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) 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 78

(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 79

(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–

(A) 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 80

(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.

(c) Definition of firm offer of credit or insurance. Notwithstanding any definition of the term
“firm offer of credit or insurance” (or any equivalent term) under the laws of any State, the
definition of that term contained in section 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 81

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.

(c) Court order for disclosure of consumer reports. Notwithstanding section 604
[§ 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 83

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.

(c) Confidentiality. No consumer reporting agency, or officer, employee, or agent of such consumer
reporting agency, shall disclose to any person, or specify in any consumer report, that a
government agency has sought or obtained access to information under subsection (a).

(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 report- ing
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 84

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 85

July 30, 2004
86
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, ac- quisition,
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).
See also 16 CFR Part 611
69 Fed. Reg. 8531 (02/24/04)
69 Fed. Reg. 29061 (05/20/04)

Legislative History
House Reports: No. 91-975 (Comm. on Banking and Currency) and No. 91-1587 (Comm. of Conference)
Senate Reports: No. 91-1139 accompanying S. 3678 (Comm. on Banking and Currency)
Congressional Record, Vol. 116 (1970)

May 25, considered and passed House.
Sept. 18, considered and passed Senate, amended. Oct. 9, Senate agreed to conference report.
Oct. 13, House agreed to conference report. Enactment: Public Law No. 91-508 (October 26,
1970):
Amendments: Public Law Nos. 95-473 (October 17, 1978)
95-598 (November 6, 1978)
98-443 (October 4, 1984)
101-73 (August 9, 1989)
102-242 (December 19, 1991)
102-537 (October 27, 1992)
102-550 (October 28, 1992)
103-325 (September 23, 1994)
104-88 (December 29, 1995)
104-93 (January 6, 1996)
104-193 (August 22, 1996)
104-208 (September 30, 1996)
105-107 (November 20, 1997)
105-347 (November 2, 1998)
106-102 (November 12, 1999)
107-56 (October 26, 2001)
108-159 (December 4, 2003)

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