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July 30, 2004 1
THE FAIR CREDIT REPORTING ACT
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 subtitute 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 Appropriations
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 the 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 the Fair and 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).
July 30, 2004 2

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 3

§ 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.
(c) The term “consumer” means an individual.
(d) Consumer Report
(1) In general. The term "consumer report" means any written, oral, or other
communication of any information by a consumer reporting agency bearing on a
consumer's credit worthiness, credit standing, credit capacity, character, general
reputation, personal characteristics, or mode of living which is used or expected
July 30, 2004 4
to be used or collected in whole or in part for the purpose of serving as a factor in
establishing the consumer's eligibility for
(A) credit or insurance to be used primarily for personal, family, or household
purposes;
(B) employment purposes; or
(C) any other purpose authorized under section 604 [§ 1681b].
(2) Exclusions. Except as provided in paragraph (3), the term "consumer report" does
not include
(A) subject to section 624, any
(i) report containing information solely as to transactions or experiences
between the consumer and the person making the report;
(ii) communication of that information among persons related by common
ownership or affiliated by corporate control; or
(iii) communication of other information among persons related by
common ownership or affiliated by corporate control, if it is clearly
and conspicuously disclosed to the consumer that the information may
be communicated among such persons and the consumer is given the
opportunity, before the time that the information is initially
communicated, to direct that such information not be communicated
among such persons;
(B) any authorization or approval of a specific extension of credit directly or
indirectly by the issuer of a credit card or similar device;
(C) any report in which a person who has been requested by a third party to
make a specific extension of credit directly or indirectly to a consumer
conveys his or her decision with respect to such request, if the third party
advises the consumer of the name and address of the person to whom the
request was made, and such person makes the disclosures to the consumer
required under section 615 [§ 1681m]; or
(D) a communication described in subsection (o) or (x).
(3) Restriction on sharing of medical information. Except for information or any
communication of information disclosed as provided in section 604(g)(3), the
exclusions in paragraph (2) shall not apply with respect to information disclosed
July 30, 2004 5
to any person related by common ownership or affiliated by corporate control, if
the information is--
(A) medical information;
(B) an individualized list or description based on the payment transactions of the
consumer for medical products or services; or
(C) an aggregate list of identified consumers based on payment transactions for
medical products or services.
(e) The term “investigative consumer report” means a consumer report or portion
thereof in which information on a consumer's character, general reputation, personal
characteristics, or mode of living is obtained through personal interviews with
neighbors, friends, or associates of the consumer reported on or with others with
whom he is acquainted or who may have knowledge concerning any such items of
information. However, such information shall not include specific factual information
on a consumer's credit record obtained directly from a creditor of the consumer or
from a consumer reporting agency when such information was obtained directly from
a creditor of the consumer or from the consumer.
(f) The term “consumer reporting agency” means any person which, for monetary fees,
dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the
practice of assembling or evaluating consumer credit information or other
information on consumers for the purpose of furnishing consumer reports to third
parties, and which uses any means or facility of interstate commerce for the purpose
of preparing or furnishing consumer reports.
(g) The term “file,” when used in connection with information on any consumer, means
all of the information on that consumer recorded and retained by a consumer
reporting agency regardless of how the information is stored.
(h) The term “employment purposes” when used in connection with a consumer report
means a report used for the purpose of evaluating a consumer for employment,
promotion, reassignment or retention as an employee.
(i) The term “medical information” --
(1) means information or data, whether oral or recorded, in any form or medium,
created by or derived from a health care provider or the consumer, that relates to--
(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
(C) the payment for the provision of health care to an individual.
July 30, 2004 6
(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
July 30, 2004 7
section 701(d)(6) of the Equal Credit Opportunity Act by the Board of Governors
of the Federal Reserve System or any court shall apply.
(l) The term “firm offer of credit or insurance” means any offer of credit or insurance to
a consumer that will be honored if the consumer is determined, based on information
in a consumer report on the consumer, to meet the specific criteria used to select the
consumer for the offer, except that the offer may be further conditioned on one or
more of the following:
(1) The consumer being determined, based on information in the consumer's
application for the credit or insurance, to meet specific criteria bearing on credit
worthiness or insurability, as applicable, that are established
(A) before selection of the consumer for the offer; and
(B) for the purpose of determining whether to extend credit or insurance
pursuant to the offer.
(2) Verification
(A) that the consumer continues to meet the specific criteria used to select the
consumer for the offer, by using information in a consumer report on the
consumer, information in the consumer's application for the credit or
insurance, or other information bearing on the credit worthiness or
insurability of the consumer; or
(B) of the information in the consumer's application for the credit or insurance,
to determine that the consumer meets the specific criteria bearing on credit
worthiness or insurability.
(3) The consumer furnishing any collateral that is a requirement for the extension of
the credit or insurance that was
(A) established before selection of the consumer for the offer of credit or
insurance; and
(B) disclosed to the consumer in the offer of credit or insurance.
(m) The term “credit or insurance transaction that is not initiated by the consumer” does
not include the use of a consumer report by a person with which the consumer has an
account or insurance policy, for purposes of
(1) reviewing the account or insurance policy; or
(2) collecting the account.
(n) The term “State” means any State, the Commonwealth of Puerto Rico, the District of
Columbia, and any territory or possession of the United States.
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(o) Excluded communications. A communication is described in this subsection if it is a
communication
(1) that, but for subsection (d)(2)(D), would be an investigative consumer report;
(2) that is made to a prospective employer for the purpose of
(A) procuring an employee for the employer; or
(B) procuring an opportunity for a natural person to work for the employer;
(3) that is made by a person who regularly performs such procurement;
(4) that is not used by any person for any purpose other than a purpose described in
subparagraph (A) or (B) of paragraph (2); and
(5) with respect to which
(A) the consumer who is the subject of the communication
(i) consents orally or in writing to the nature and scope of the
communication, before the collection of any information for the
purpose of making the communication;
(ii) consents orally or in writing to the making of the communication to a
prospective employer, before the making of the communication; and
(iii) in the case of consent under clause (i) or (ii) given orally, is provided
written confirmation of that consent by the person making the
communication, not later than 3 business days after the receipt of the
consent by that person;
(B) the person who makes the communication does not, for the purpose of
making the communication, make any inquiry that if made by a
prospective employer of the consumer who is the subject of the
communication would violate any applicable Federal or State equal
employment opportunity law or regulation; and
(C) the person who makes the communication
(i) discloses in writing to the consumer who is the subject of the
communication, not later than 5 business days after receiving any
request from the consumer for such disclosure, the nature and substance
of all information in the consumer's file at the time of the request, except
that the sources of any information that is acquired solely for use in
making the communication and is actually used for no other purpose,
need not be disclosed other than under appropriate discovery procedures
in any court of competent jurisdiction in which an action is brought; and
July 30, 2004 9
(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;
July 30, 2004 10
(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 11
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;
July 30, 2004 12
(iii) to any self-regulatory organization with regulatory authority over the
activities of the employer or employee;
(iv) as otherwise required by law; or
(v) pursuant to section 608.
(2) Subsequent disclosure. After taking any adverse action based in whole or in part on a
communication described in paragraph (1), the employer shall disclose to the
consumer a summary containing the nature and substance of the communication
upon which the adverse action is based, except that the sources of information
acquired solely for use in preparing what would be but for subsection (d)(2)(D) an
investigative consumer report need not be disclosed.
(3) For purposes of this subsection, the term “self-regulatory organization” includes any
self-regulatory organization (as defined in section 3(a)(26) of the Securities
Exchange Act of 1934), any entity established under title I of the Sarbanes-Oxley Act
of 2002, any board of trade designated by the Commodity Futures Trading
Commission, and any futures association registered with such Commission.

§ 604. Permissible purposes of consumer reports [15 U.S.C. § 1681b]
(a) In general. Subject to subsection (c), any consumer reporting agency may furnish a
consumer report under the following circumstances and no other:
(1) In response to the order of a court having jurisdiction to issue such an order, or a
subpoena issued in connection with proceedings before a Federal grand jury.
(2) In accordance with the written instructions of the consumer to whom it relates.
(3) To a person which it has reason to believe
(A) intends to use the information in connection with a credit transaction
involving the consumer on whom the information is to be furnished and
involving the extension of credit to, or review or collection of an account
of, the consumer; or
(B) intends to use the information for employment purposes; or
(C) intends to use the information in connection with the underwriting of
insurance involving the consumer; or
(D) intends to use the information in connection with a determination of the
consumer's eligibility for a license or other benefit granted by a
governmental instrumentality required by law to consider an applicant's
financial responsibility or status; or
July 30, 2004 13
(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
July 30, 2004 14
(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
1The references in Sections 604(b)(3)(A) and 604(b)(3)(B) should be to Section 609(c)(1), not (c)(3) that no
longer exists as the result of Congress’ re-organization of Section 609(c) in 2003 (FACT Act).
July 30, 2004 15
(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.
July 30, 2004 16
(ii) If, under clause (B)(i)(IV), the consumer requests a copy of a consumer
report from the person who procured the report, then, within 3 business
days of receiving the consumer's request, together with proper identification,
the person must send or provide to the consumer a copy of a
report and a copy of the consumer's rights as prescribed by the Federal
Trade Commission under section 609(c)(3).
(C) Scope. Subparagraph (B) shall apply to a person procuring a consumer report
on a consumer in connection with the consumer's application for employment
only if--
(i) the consumer is applying for a position over which the Secretary of Transportation
has the power to establish qualifications and maximum hours of
service pursuant to the provisions of section 31502 of title 49, or a position
subject to safety regulation by a State transportation agency; and
(ii) as of the time at which the person procures the report or causes the
report to be procured the only interaction between the consumer and
the person in connection with that employment application has been by
mail, telephone, computer, or other similar means.
(4) Exception for national security investigations.
(A) In general. In the case of an agency or department of the United States
Government which seeks to obtain and use a consumer report for employment
purposes, paragraph (3) shall not apply to any adverse action by such
agency or department which is based in part on such consumer report, if
the head of such agency or department makes a written finding that–
(i) the consumer report is relevant to a national security investigation of
such agency or department;
(ii) the investigation is within the jurisdiction of such agency or department;
(iii) there is reason to believe that compliance with paragraph (3) will--
(I) endanger the life or physical safety of any person;
(II) result in flight from prosecution;
(III) result in the destruction of, or tampering with, evidence relevant
to the investigation;
(IV) result in the intimidation of a potential witness relevant to the
investigation;
(V) result in the compromise of classified information; or
July 30, 2004 17
(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.
(c) Furnishing reports in connection with credit or insurance transactions that are not
initiated by the consumer.
July 30, 2004 18
(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 19
(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 20
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 21
(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 regulations
prescribed under paragraph (5)(A), a creditor shall not obtain or use medical
information (other than medical contact information treated in the manner
required under section 605(a)(6)) pertaining to a consumer in connection with any
determination of the consumer's eligibility, or continued eligibility, for credit.
(3) Actions authorized by federal law, insurance activities and regulatory determinations.
Section 603(d)(3) shall not be construed so as to treat information or any
communication of information as a consumer report if the information or
communication is disclosed--
(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).
2 The reporting periods have been lengthened for certain adverse information pertaining to U.S. Government
insured or guaranteed student loans, or pertaining to national direct student loans. See sections 430A(f) and
463(c)(3) of the Higher Education Act of 1965, 20 U.S.C. 1080a(f) and 20 U.S.C. 1087cc(c)(3), respectively.
July 30, 2004 22
(4) Limitation on redisclosure of medical information. Any person that receives
medical information pursuant to paragraph (1) or (3) shall not disclose such
information to any other person, except as necessary to carry out the purpose
for which the information was initially disclosed, or as otherwise permitted by
statute, regulation, or order.
(5) Regulations and Effective Date for Paragraph (2)
(A) Regulations required. Each Federal banking agency and the National Credit
Union Administration shall, subject to paragraph (6) and after notice and
opportunity for comment, prescribe regulations that permit transactions
under paragraph (2) that are determined to be necessary and appropriate to
protect legitimate operational, transactional, risk, consumer, and other needs
(and which shall include permitting actions necessary for administrative
verification purposes), consistent with the intent of paragraph (2) to restrict
the use of medical information for inappropriate purposes.
(B) Final regulations required. The Federal banking agencies and the National
Credit Union Administration shall issue the regulations required under
subparagraph (A) in final form before the end of the 6-month period
beginning on the date of enactment of the Fair and Accurate Credit
Transactions Act of 2003.
(6) Coordination with other laws. No provision of this subsection shall be construed
as altering, affecting, or superseding the applicability of any other provision of
Federal law relating to medical confidentiality.

§ 605. Requirements relating to information contained in consumer reports [15 U.S.C. §1681c]
(a) Information excluded from consumer reports. Except as authorized under subsection
(b) of this section, no consumer reporting agency may make any consumer report
containing any of the following items of information:
(1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from
the date of entry of the order for relief or the date of adjudication, as the case may
be, antedate the report by more than 10 years.
(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate
the report by more than seven years or until the governing statute of limitations
has expired, whichever is the longer period.
(3) Paid tax liens which, from date of payment, antedate the report by more than
seven years.
(4) Accounts placed for collection or charged to profit and loss which antedate the
report by more than seven years.2
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
(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.
(c) Running of Reporting Period
(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
July 30, 2004 24
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 credit
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 25
(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--
(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
July 30, 2004 26
(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 27
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 28
(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 29
(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 30
(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.
(c) Authority to Decline or Rescind
(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 31
(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 section
shall be construed as requiring a consumer reporting agency to prevent a Federal,
State, or local law enforcement agency from accessing blocked information in a
consumer file to which the agency could otherwise obtain access under this title.

§ 606. Disclosure of investigative consumer reports [15 U.S.C. § 1681d]
(a) Disclosure of fact of preparation. A person may not procure or cause to be prepared an
investigative consumer report on any consumer unless
(1) it is clearly and accurately disclosed to the consumer that an investigative
consumer report including information as to his character, general reputation,
personal characteristics and mode of living, whichever are applicable, may be
made, and such disclosure
(A) is made in a writing mailed, or otherwise delivered, to the consumer, not
later than three days after the date on which the report was first requested,
and
(B) includes a statement informing the consumer of his right to request the
additional disclosures provided for under subsection (b) of this section and
the written summary of the rights of the consumer prepared pursuant to
section 609(c) [§ 1681g]; and
July 30, 2004 32
(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 consumer
report that includes information that is a matter of public record and that
relates to an arrest, indictment, conviction, civil judicial action, tax lien, or outstanding
judgment, unless the agency has verified the accuracy of the information
during the 30-day period ending on the date on which the report is furnished.
(4) Certain adverse information. A consumer reporting agency shall not prepare or
furnish an investigative consumer report on a consumer that contains information
that is adverse to the interest of the consumer and that is obtained through a
personal interview with a neighbor, friend, or associate of the consumer or with
another person with whom the consumer is acquainted or who has knowledge of
such item of information, unless
July 30, 2004 33
(A) the agency has followed reasonable procedures to obtain confirmation of
the information, from an additional source that has independent and direct
knowledge of the information; or
(B) the person interviewed is the best possible source of the information.

§ 607. Compliance procedures [15 U.S.C. § 1681e]
(a) Identity and purposes of credit users. Every consumer reporting agency shall maintain
reasonable procedures designed to avoid violations of section 605 [§ 1681c] and to limit
the furnishing of consumer reports to the purposes listed under section 604 [§ 1681b] of
this title. These procedures shall require that prospective users of the information identify
themselves, certify the purposes for which the information is sought, and certify that
the information will be used for no other purpose. Every consumer reporting agency
shall make a reasonable effort to verify the identity of a new prospective user and the
uses certified by such prospective user prior to furnishing such user a consumer report.
No consumer reporting agency may furnish a consumer report to any person if it has
reasonable grounds for believing that the consumer report will not be used for a purpose
listed in section 604 [§ 1681b] of this title.
(b) Accuracy of report. Whenever a consumer reporting agency prepares a consumer
report it shall follow reasonable procedures to assure maximum possible accuracy of
the information concerning the individual about whom the report relates.
(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 notices
under paragraph (1), and a consumer reporting agency shall be in compliance
with this subsection if it provides a notice under paragraph (1) that is substantially
similar to the Federal Trade Commission prescription under this paragraph.
(e) Procurement of Consumer Report for Resale
July 30, 2004 34
(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 35
his name, address, former addresses, places of employment, or former places of
employment, to a governmental agency.

§ 609. Disclosures to consumers [15 U.S.C. § 1681g]
(a) Information on file; sources; report recipients. Every consumer reporting agency shall,
upon request, and subject to 610(a)(1) [§ 1681h], clearly and accurately disclose to
the consumer:
(1) All information in the consumer's file at the time of the request except that--
(A) if the consumer to whom the file relates requests that the first 5 digits of
the social security number (or similar identification number) of the
consumer not be included in the disclosure and the consumer reporting
agency has received appropriate proof of the identity of the requester, the
consumer reporting agency shall so truncate such number in such
disclosure; and
(B) nothing in this paragraph shall be construed to require a consumer
reporting agency to disclose to a consumer any information concerning
credit scores or any other risk scores or predictors relating to the
consumer.
(2) The sources of the information; except that the sources of information acquired
solely for use in preparing an investigative consumer report and actually use for
no other purpose need not be disclosed: Provided, That in the event an action is
brought under this title, such sources shall be available to the plaintiff under
appropriate discovery procedures in the court in which the action is brought.
(3)(A) Identification of each person (including each end-user identified under
section 607(e)(1) [§ 1681e]) that procured a consumer report
(i) for employment purposes, during the 2-year period preceding the date
on which the request is made; or
(ii) for any other purpose, during the 1-year period preceding the date on
which the request is made.
(B) An identification of a person under subparagraph (A) shall include
(i) the name of the person or, if applicable, the trade name (written in full)
under which such person conducts business; and
(ii) upon request of the consumer, the address and telephone number of the
person.
(C) Subparagraph (A) does not apply if--
(i) the end user is an agency or department of the United States
Government that procures the report from the person for purposes of
July 30, 2004 36
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.
(c) Summary of Rights to Obtain and Dispute Information in Consumer Reports and to
Obtain Credit Scores
(1) Commission Summary of Rights Required
(A) In general. The Commission shall prepare a model summary of the rights
of consumers under this title.
(B) Content of summary. The summary of rights prepared under subparagraph
(A) shall include a description of–
(i) the right of a consumer to obtain a copy of a consumer report under
subsection (a) from each consumer reporting agency;
(ii) the frequency and circumstances under which a consumer is entitled to
receive a consumer report without charge under section 612;
(iii) the right of a consumer to dispute information in the file of the
consumer under section 611;
(iv) the right of a consumer to obtain a credit score from a consumer
reporting agency, and a description of how to obtain a credit score;
(v) the method by which a consumer can contact, and obtain a consumer
report from, a consumer reporting agency without charge, as provided
in the regulations of the Commission prescribed under section 211(c)
of the Fair and Accurate Credit Transactions Act of 2003; and
July 30, 2004 37
(vi) the method by which a consumer can contact, and obtain a consumer
report from, a consumer reporting agency described in section 603(w),
as provided in the regulations of the Commission prescribed under
section 612(a)(1)(C).
(C) Availability of summary of rights. The Commission shall--
(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 38
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--
(i) a copy of a police report evidencing the claim of the victim of identity
theft; and
July 30, 2004 39
(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 40
(7) Limitation on civil liability. No business entity may be held civilly liable under
any provision of Federal, State, or other law for disclosure, made in good faith
pursuant to this subsection.
(8) No new recordkeeping obligation. Nothing in this subsection creates an obligation
on the part of a business entity to obtain, retain, or maintain information or
records that are not otherwise required to be obtained, retained, or maintained in
the ordinary course of its business or under other applicable law.
(9) Rule of Construction
(A) In general. No provision of subtitle A of title V of Public Law 106-102,
prohibiting the disclosure of financial information by a business entity to
third parties shall be used to deny disclosure of information to the victim
under this subsection.
(B) Limitation. Except as provided in subparagraph (A), nothing in this
subsection permits a business entity to disclose information, including
information to law enforcement under subparagraphs (B) and (C) of
paragraph (1), that the business entity is otherwise prohibited from
disclosing under any other applicable provision of Federal or State law.
(10) Affirmative defense. In any civil action brought to enforce this subsection, it is an
affirmative defense (which the defendant must establish by a preponderance of
the evidence) for a business entity to file an affidavit or answer stating that--
(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 41
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 analysis
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) Timeframe and manner of disclosure. The information required by this subsection
shall be provided in the same timeframe and manner as the information described
in subsection (a).
(4) Applicability to certain uses. This subsection shall not be construed so as to
compel a consumer reporting agency to develop or disclose a score if the agency
does not--
July 30, 2004 42
(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 43
(1) In general. Any person who makes or arranges loans and who uses a consumer
credit score, as defined in subsection (f), in connection with an application
initiated or sought by a consumer for a closed end loan or the establishment of an
open end loan for a consumer purpose that is secured by 1 to 4 units of residential
real property (hereafter in this subsection referred to as the “lender”) shall provide
the following to the consumer as soon as reasonably practicable:
(A) Information Required under Subsection (f)
(i) In general. A copy of the information identified in subsection (f) that
was obtained from a consumer reporting agency or was developed and
used by the user of the information.
(ii) Notice under subparagraph (D). In addition to the information provided
to it by a third party that provided the credit score or scores, a lender is
only required to provide the notice contained in subparagraph (D).
(B) Disclosures in Case of Automated Underwriting System
(i) In general. If a person that is subject to this subsection uses an automated
underwriting system to underwrite a loan, that person may
satisfy the obligation to provide a credit score by disclosing a credit
score and associated key factors supplied by a consumer reporting
agency.
(ii) Numerical credit score. However, if a numerical credit score is
generated by an automated underwriting system used by an enterprise,
and that score is disclosed to the person, the score shall be disclosed to
the consumer consistent with subparagraph (C).
(iii) Enterprise defined. For purposes of this subparagraph, the term “enterprise”
has the same meaning as in paragraph (6) of section 1303 of the
Federal Housing Enterprises Financial Safety and Soundness Act of
1992.
(C) Disclosures of credit scores not obtained from a consumer reporting agency.
A person that is subject to the provisions of this subsection and that uses a
credit score, other than a credit score provided by a consumer reporting
agency, may satisfy the obligation to provide a credit score by disclosing a
credit score and associated key factors supplied by a consumer reporting
agency.
(D) Notice