606.
Disclosure of investigative consumer reports.
607.
Compliance procedures.
608.
Disclosures to governmental agencies.
609.
Disclosures to consumers.
610.
Conditions 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.
Relation to State laws.
SS
601. SHORT TITLE
This
title may be cited as the Fair Credit Reporting Act.
SS
602. FINDINGS AND PURPOSE
(a)
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) 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.
SS
603. DEFINITIONS AND RULES OF CONSTRUCTION
(a)
Definitions and rules of construction set forth in this
section are applicable for the purposes of this title.(b)
The term 'person' means any individual, partnership, corporation,
trust, estate, cooperative, association, government or
governmental subdivision or agency, or other entity. (c)
The term 'consumer' means an individual. (d) The term
'consumer report' means any written, oral, or other communication
of any information by a consumer reporting agency bearing
on a consumer's credit worthiness, credit standing, credit
capacity, character, general reputation, personal characteristics,
or mode of living which is used or expected to be used
or collected in whole or in part for the purpose of serving
as a factor in establishing the consumer's eligibility
for (l) credit or insurance to be used primarily for personal,
family, or household purposes, or (2) employment purposes,
or (3) other purposes authorized under section 604. The
term does not include (A) any report containing information
solely as to transactions or experiences between the consumer
and the person making the report; (B) any authorization
or approval of a specific extension of credit directly
or indirectly by the issuer of credit card or similar
device; or (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 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. (e) The term 'investigative consumer report means
a consumer report or portion thereof in which information
on a consumer's character, general reputation, personal
characteristics, or mode of living is obtained through
personal interviews with neighbors, friends, or associates
of the consumer reported on or with others with whom he
is acquainted or who may have knowledge concerning any
such items of information. However, such information shall
not include specific factual information on a consumer's
credit record obtained directly from a creditor of the
consumer or from a consumer reporting agency when such
information was obtained directly from a creditor of the
consumer or from the consumer. (f) The term 'consumer
reporting agency' means any person which, for monetary
fees, dues, or on a cooperative nonprofit basis, regularly
engages in whole or in part in the practice of assembling
or evaluating consumer credit information or other information
on consumers for the purpose of furnishing consumer reports
to third parties, and which uses any means or facility
of interstate commerce for the purpose of preparing or
furnishing consumer reports. (g) The term 'file', when
used in connection with information on any consumer, means
all of the information on that consumer recorded and retained
by a consumer reporting agency regardless of how the information
is stored. (h) The term 'employment purposes' when used
in connection with a consumer report means a report used
for the purpose of evaluating a consumer for employment,
promotion, reassignment or retention as an employee. (g)
The term 'medical information' means information or records
obtained, with the consent of the individual to whom it
relates, from licensed physicians or medical practitioners,
hospitals, clinics, or other medical or medically related
facilities.
SS
604. PERMISSIBLE PURPOSES OF REPORTS
A
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. (2) In accordance with the written
instructions of the consumer to whom it relates. (3) To
person which it has reason to believe (A) intends to use
the information in connection with a credit transaction
involving the consumer on whom the information is to be
furnished and involving the extension of credit to, or
review or collection of an account of, the consumer; or
(B) intends to use the information for employment purposes;
or (C) intends to use the information in connection with
the underwriting of insurance involving the consumer;
or (D) intends to use the information in connection with
a determination of the consumer's eligibility for a license
or other benefit granted by a governmental instrumentality
required by law to consider an applicant's financial responsibility
or status; or (E) otherwise has a legitimate business
need for the information in connection with a business
transaction involving the consumer.
SS
605. OBSOLETE INFORMATION
(a)
Except as authorized under subsection (b), no consumer
reporting agency may make any consumer report containing
any of the following items of information: (1) Cases under
title 11 of the United States Code or under the Bankruptcy
Act that, from the date of entry of order for relief or
the date of adjudication, as the cause may be, antedate
the report by more than 10 years. (2) Suits and judgments
which, from date of entry, antedate the report by more
than seven years or until the governing statute of limitations
has expired, whichever is the longer period. (3) Paid
tax liens which, from date of payment, antedate the report
by more than seven years. (4) Accounts placed for collection
or charged to profit and loss which antedate the report
by more than seven years. (5) Records of arrest, indictment,
or conviction of crime which, from date of disposition,
release, or parole, antedate the report by more than seven
years. (6) Any other adverse item of information which
antedated the report by more than seven years. (b) The
provisions of subsection (a) 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 $50,000 or more; (2) the underwriting of life insurance
involving, or which may reasonably be expected to involve,
a face amount of $50,000 or more; or( 3) the employment
of any individual at an annual salary which equals, or
which may reasonably be expected to equal $20,000, or
more.
SS
606. DISCLOSURE OF INVESTIGATIVE CONSUMER REPORTS
(a)
A person may not procure or cause to be prepared an investigative
consumer report on any consumer unless (l) 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 made
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; or (2) the report
is to be used for employment purposes for which the consumer
has not specifically applied. (b) 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), shall 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) 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).
SS
607. COMPLIANCE PROCEDURES
(a)
Every consumer reporting agency shall maintain reasonable
procedures designed to avoid violations of section 605
and to limit the furnishing of consumer reports to the
purposes listed under section 604. These procedures shall
require that prospective users of the information identify
themselves, certify the purposes for which the information
is sought, and certify that the information will be used
for no other purpose. Every consumer reporting agency
shall make a reasonable effort to verify the identity
of a new prospective user and the uses certified by such
prospective user prior to furnishing such user a consumer
report. No consumer reporting agency may furnish a consumer
report to any person if it has reasonable grounds for
believing that the consumer report will not be used for
a purpose listed in section (b) 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.
SS
608. DISCLOSURES TO GOVERNMENTAL AGENCIES
Not
withstanding the provisions of section 604, a consumer
reporting agency may furnish identifying information respecting
any consumer, limited to his name, address, former addresses,
places of employment, or former places of employment,
to a governmental agency.
SS
609. DISCLOSURES TO CONSUMERS
(a)
Every consumer reporting agency shall, upon request and
proper identification of any consumer, clearly and accurately
disclose to the consumer: (1) The nature and substance
of all information (except medical information) in its
files on the consumer at the time of the request. (2)
The sources of the information; except that the sources
of information acquired solely for use in preparing an
investigative consumer report and actually used for no
other purpose need not be disclosed: Provided, That in
the event an action is brought under this title, such
sources shall be available to the plaintiff under appropriate
discovery procedures in the court in which the action
is brought. (3) The recipients of any consumer report
on the consumer which it has furnished (A) for employment
purposes within the two year period preceding the request
and (B) for any other purpose within the six month period
preceding the request. (b) The requirements of subsection
(a) 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.
SS
610. CONDITIONS OF DISCLOSURE TO CONSUMERS
(a)
A consumer reporting agency shall make the disclosures
required under section 609 during normal business hours
and on reasonable notice. (b) The disclosures required
under section 609 shall be made to the consumer. (1) in
person if he appears in person and furnishes proper indemnification;
or (2) by telephone if he has made a written request,
with proper identification, for telephone disclosure and
the toll charge, if any, for the telephone call is prepaid
by or charged directly to the consumer. (c) Any consumer
reporting agency shall provide trained personnel to explain
to the consumer any information furnished to him pursuant
to section 609. (d) 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) Except as provided in sections 616 and 617, 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 and 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 to false information
furnished with malice or to injure such consumer.
SS
611. PROCEDURE IN CASE OF DISPUTED ACCURACY
(a)
If the completeness of accuracy of any item of information
contained in his file is disputed by a consumer, and such
dispute is directly conveyed to the consumer reporting
agency by the consumer, the consumer reporting agency
shall within a reasonable period of time reinvestigate
and record the current status of that information unless
it has reasonable grounds to believe that the dispute
by the consumer if frivolous or irrelevant. If after such
reinvestigation such information is found to be inaccurate
or can no longer be verified, the consumer reporting agency
shall promptly delete such information. The presence of
contradictory information in the consumer's file does
not in and of itself constitute reasonable grounds for
believing the dispute is frivolous or irrelevant. (b)
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) Whenever a statement
of a dispute is filed, unless there is reasonable grounds
to believe that it is frivolous or irrelevant, the consumer
reporting agency shall, in any subsequent consumer report
containing the information in question, clearly note that
it is disputed by the consumer and provide either the
consumer's statement or a clear and accurate codification
or summary thereof. (d) 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) 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. The consumer reporting agency shall
clearly and conspicuously disclose to the consumer his
rights to make such a request. Such disclosure shall be
made at or prior to the time the information is deleted
or the consumer's statement regarding the disputed information
is received.
SS
612. CHARGES FOR CERTAIN DISCLOSURES
A
consumer reporting agency shall make all disclosures pursuant
to section 609 and furnish all consumer reports pursuant
to section 611 (d) without charge to the consumer if,
within thirty days after receipt by such consumer of a
notification pursuant to section 615 or notification from
a debt collection agency affiliated with such 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 or 611(d). Otherwise, the
consumer reporting agency may impose a reasonable charge
on the consumer for making disclosure to such consumer
pursuant to section 609, the charge for which shall be
indicated to the consumer prior to making disclosure;
and for furnishing notifications, statements, summaries,
or notifications to person designated by the consumer
pursuant to section 611 (d), the charge for which shall
be indicated to the consumer prior to furnishing such
information and shall not exceed the charge that the consumer
reporting agency would impose on each designated recipient
for a consumer report except that no charge may be made
for notifying such persons of the deletion of information
which is found to be inaccurate or which can no longer
be verified.
SS
613. PUBLIC RECORD INFORMATION FOR EMPLOYMENT PURPOSES:
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 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, conviction, 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.
SS
614. RESTRICTIONS ON INVESTIGATIVE CONSUMER REPORTS
Whenever
a consumer reporting agency prepares an investigative
consumer report, no adverse information in the consumer
report (other than information which is a matter of public
record) may be included in a subsequent consumer report
unless such adverse information has been verified in the
process of making such subsequent consumer report, or
the adverse information was received within the three
month period preceding the date the subsequent report
is furnished.
SS
615. REQUIREMENTS ON USERS OF CONSUMER REPORTS
(a)
Whenever credit or insurance for personal, family, or
household purposes, or employment involving a consumer
is denied or the charge for such credit or insurance is
increased either wholly or partly because of information
contained in a consumer report from a consumer reporting
agency, the user of the consumer report shall so advise
the consumer against whom such adverse action has been
taken and supply the name and address of the consumer
reporting agency making the report. (b) 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
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. (c) 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 subsections (a) & (b).
SS
616. CIVIL LIABILITY FOR WILLFUL NONCOMPLIANCE
Any
consumer reporting agency or user of information which
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)
any actual damages sustained by the consumer as a result
of the failure; (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.
SS
617. CIVIL LIABILITY FOR NEGLIGENT NONCOMPLIANCE
Any
consumer reporting agency or user of information which
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 (1) any actual damages sustained by the consumer as
a result of the failure; (2) in the case of any successful
action to enforce any liability under this section, the
costs of the action together with reasonable attorney's
fees as determined by the court.
SS
618. JURISDICTION OF COURTS; LIMITATION OF ACTIONS
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, within two
years from the date on which the liability arises, except
that where a defendant has materially and willfully misrepresented
any information required under this title to be disclosed
to an individual and the information so misrepresented
is material to the establishment of the defendant's liability
to that individual under this title, the action may be
brought at any time within two years after discovery by
the individual of the misrepresentation.
SS
619. OBTAINING INFORMATION UNDER FALSE PRETENSES
Any
person who knowingly and willfully obtains information
on a consumer from a consumer reporting agency, under
false pretenses shall be fined not more than $5,000 imprisoned
not more than one year, or both.
SS
620. UNAUTHORIZED DISCLOSURE BY OFFICERS OR EMPLOYEES
Any
officer or employee of a consumer reporting agency who
knowingly and willfully provides information concerning
an individual from the agency's files to a person not
authorized to receive that information shall be fined
not more than $5,000 or imprisoned not more than one year,
or both.
SS
621. ADMINISTRATIVE ENFORCEMENT
(a)
Compliance with the requirements imposed under this title
shall be enforced under the Federal Trade Commission Act
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 and shall be subject
to enforcement by the Federal Trade Commission under section
5 (b) thereof with respect to any consumer reporting agency
or person subject to enforcement by the Federal Trade
Commission pursuant to this subsection, irrespective of
whether that person if; 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 power, 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 though the applicable terms and provisions
thereof were part of this title. (b) Compliance with the
requirements imposed under this title with respect to
consumer reporting agencies and persons who use consumer
reports from such agencies shall be enforced under (1)
section 8 of the Federal Deposit Insurance Act in the
case of: (A) national banks, by the comptroller of the
Currency; (B) member banks of the Federal Reserve System
(other than national banks). by the Federal Reserve Board;
and (C) banks insured by the Federal Deposit Insurance
Corporation (other than members of the Federal Deposit
Insurance Corporation. (2) section 5 (d) of the Home Owners
Loan Act of 1933, section 407 of the National [lousing
Act, and sections 6 (i) and 17 of the Federal Home Loan
Bank Act, by the Federal Home Loan Hank Board (acting
directly or through the Federal Savings and Loan Insurance
Corporation), in the case of any institution subject to
any of those provisions; (3) the Federal Credit Union
Act, by the Administrator of the National Credit Union
Administration with respect to any Federal Credit union;
(4) the Acts to regulate commerce, by the Interstate Commerce
Commission with respect to any common carrier subject
to those Acts: (5) the Federal Aviation Act of 1958, by
the Civil Aeronautics Board with respect to any air carrier
or foreign air carrier subject to that act; and (6) the
Packers and Stockyards Act, 1921 (except as provided in
section 406 of that Act), by the Secretary of Agriculture
with respect to any activities subject to that Act. (c)
For the purpose of the exercise by any agency referred
to in subsection (b) of its powers under any Act referred
to in that subsection, a violation of any requirement
imposed under this title shall be deemed to be a violation
of a requirement imposed under the Act. In addition to
its powers under any provision of law specifically referred
to in subsection (b), each of the agencies referred to
in that subsection may exercise, for the purpose of enforcing
compliance with any requirement imposed under this title
any other authority conferred on it by law.
SS
622. RELATION TO STATE LAWS
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,
except to the extent that laws are inconsistent with any
provision of this title, and then only to the extent of
the inconsistency.
EFFECTIVE
DATE
Sec.
602. Section 504 of the Consumer Credit Protection Act
amended by adding at the end thereof the following new
subsection: (d) Title VI takes effect upon the expiration
of one hundred and eighty days following the date of its
enactment." And the Senate agree to the same.
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