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PUBLIC LAW 91-508-OCT. 26, 1970
TITLE VI - PROVISIONS RELATING TO CREDIT REPORTING AGENCIES
AMENDMENT OF CONSUMER CREDIT PROTECTION ACT
SEC 601. The Consumer Credit Protection Act is amended by adding
at the end thereof the following new title:
"TITLE VI - CONSUMER CREDIT REPORTING
"601. Short Title
"This title may be cited as the Fair Credit Reporting Act.
"602. Findings and purpose
"(a) The Congress makes the following findings:
"(1) The banking system is dependent upon fair and accurate
credit reporting. Inaccurate credit reports directly impair the
efficiency of the banking system, and unfair credit reporting
methods undermine the public confidence which is essential to the
continued functioning of the banking system.
"(2) An elaborate mechanism has been developed for
investigating and evaluating the credit worthiness, credit
standing, credit capacity, character, and general reputation of
consumers.
"(3) Consumer reporting agencies have assumed a vital role
in assembling and evaluating consumer credit and other
information on consumers.
"(4) There is a need to insure that consumer reporting
agencies exercise their grave responsibilities with fairness,
impartiality, and a respect for the consumer's right to privacy.
"(b) It is the purpose of this title to require that
consumer reporting agencies adopt reasonable procedures for
meeting the needs of commerce for consumer credit, personnel,
insurance, and other information in a manner which is fair and
equitable to the consumer, with regard to confidentiality,
accuracy, relevancy, and proper utilization of such information
in accordance with the requirements of this title.
"603. Definitions and rules of construction
"(a) Definitions and rules of construction set forth in this
section are applicable for the purposes of this title.
"(b) The term "person" means any individual, partnership,
corporation, trust, estate, cooperative, association, government
or government subdivision or agency, or other entity.
"(c) The term "consumer" means an individual.
"(d) The term "consumer report" means any written, oral, or
other communication of any information by a consumer reporting
agency bearing on a consumer's credit worthiness, credit
standing, credit capacity, character, general reputation,
personal characteristics, or mode of living which is used or
expected to be used or collected in whole or in part for the
purpose of serving as a factor in establishing the consumer's
eligibility for (1) credit or insurance to be used primarily for
personal, family, or household purposes, or (2) employment
purposes, or (3) other purposes authorized under section 604.
The term does not include (A) any report containing information
solely as to transactions or experiences between the consumer and
the person making the report; (B) any authorization or approval
of a specific extension of credit directly or indirectly by the
issuer of a credit card or similar device; or (C) any report in
which a person who has been requested by a third party to make a
specific extension of credit directly or indirectly to a consumer
conveys his decision with respect to such request, if the third
party advises the consumer of the name and address of the person
to whom the request was made and such person makes the
disclosures to the consumer required under section 615.
"(e) The term "investigative consumer report" means a
consumer report or portion thereof in which information on a
consumer's character, general reputation, personal
characteristics, or mode of living is obtained through personal
interviews with neighbors, friends, or associates of the consumer
reported on or with others with whom he is acquainted or who may
have knowledge concerning any such items of information.
However, such information shall not include specific factual
information on a consumer's credit record obtained directly from
a creditor of the consumer or from a consumer reporting agency
when such information was obtained directly from a creditor of
the consumer or from the consumer.
"(f) The term "consumer reporting agency" means any person
which, for monetary fees, dues, or on a cooperative nonprofit
basis, regularly engages in whole or in part in the practice of
assembling or evaluating consumer credit information or other
information on consumers for the purpose of furnishing consumer
reports to third parties, and which uses any means or facility of
interstate commerce for the purpose of preparing or furnishing
consumer reports.
"(g) The term "file", when used in connection with
information on any consumer, means all of the information on that
consumer recorded and retained by a consumer reporting agency
regardless of how the information is stored.
"(h) The term "employment purposes" when used in connection
with a consumer report means a report used for the purpose of
evaluating a consumer for employment, promotion, reassignment or
retention as an employee.
"(i) The term "medical information" means information or
records obtained, with the consent of the individual to whom it
relates, from licensed physicians or medical practitioners,
hospitals, clinics, or other medical or medically related
facilities.
"604. Permissible purposes of reports
"A consumer reporting agency may furnish a consumer report
under the following circumstances and no other:
"(1) In response to the order of a court having jurisdiction
to issue such an order.
"(2) In accordance with the written instructions of the
consumer to whom it relates.
"(3) To a person which it has reason to believe -
"(A) intends to use the information in connection with a
credit transaction involving the consumer on whom the information
is to be furnished and involving the extension of credit to, or
review or collection of an account of, the consumer; or
"(B) intends to use the information for employment purposes;
or
"(C) intends to use the information in connection with the
underwriting of insurance involving the consumer; or
"(D) intends to use the information in connection with a
determination of the consumer's eligibility for a license or
other benefit granted by a governmental instrumentality required
by law to consider an applicant's financial responsibility or
status; or
"(E) otherwise has a legitimate business need for the
information in connection with a business transaction involving
the consumer.
"605. Obsolete information
"(a) Except as authorized under subsection (b), no consumer
reporting agency may make any consumer report containing any of
the following items of information:
"(1) Bankruptcies which, from date of adjudication of the
most recent bankruptcy, antedate the report by more than fourteen
years.
"(2) Suits and judgments which, from date of entry, antedate
the report by more than seven years or until the governing
statute of limitations has expired, whichever is the longer
period.
"(3) Paid tax liens which, from date of payment, antedate
the report by more than seven years.
"(4) Accounts placed for collection or charged to profit and
loss which antedate the report by more than seven years.
"(5) Records of arrest, indictment, or conviction of crime
which, from date of disposition, release, or parole, antedate the
report by more than seven years.
"(6) Any other adverse item of information which antedates
the report by more than seven years.
"(b) The provisions of subsection (a) are not applicable in
the case of any consumer credit report to be used in connection
with --
"(1) a credit transaction involving, or which may reasonably
be expected to involve, a principal amount of $$50,000 or more;
"(2) the underwriting of life insurance involving, or which
may reasonably be expected to involve, a face amount of $50,000
or more; or
"(3) the employment of any individual at an annual salary
which equals, or which may reasonably be expected to equal
$20,000, or more.
"606. Disclosure of investigative consumer reports
"(a) A person may not procure or cause to be prepared an
investigative consumer report on any consumer unless --
"(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, the consumer, not later than three days after the date
on which the report was first requested, and (B) includes a
statement informing the consumer of his right to request the
additional disclosures provided for under subsection (b) of this
section; or
"(2) the report is to be used for employment purposes for
which the consumer has not specifically applied.
"(b) Any person who procures or causes to be prepared an
investigative consumer report on any consumer shall, upon written
request made by the consumer within a reasonable period of time
after the receipt by him of the disclosure required by subsection
(a) (1), shall make a complete and accurate disclosure of the
nature and scope of the investigation requested. This disclosure
shall be made in a writing mailed, or otherwise delivered, to the
consumer not later than five days after the date on which the
request for such disclosure was received from the consumer or
such report was first requested, whichever is the later.
"(c) No person may be held liable for any violation of
subsection (a) or (b) of this section if he shows by a
preponderance of the evidence that at the time of the violation
he maintained reasonable procedures to assure compliance with
subsection (a) or (b).
"607. Compliance procedures.
"(a) Every consumer reporting agency shall maintain
reasonable procedures designed to avoid violations of section 605
and to limit the furnishing of consumer reports to the purposes
listed under section 604. These procedures shall require that
prospective users of the information identify themselves, certify
the purposes for which the information is sought, and certify
that the information will be used for no other purpose. Every
consumer reporting agency shall make a reasonable effort to
verify the identity of a new prospective user and the uses
certified by such prospective user prior to furnishing such user
a consumer report. No consumer reporting agency may furnish a
consumer report to any person if it has reasonable grounds for
believing that the consumer report will not be used for a purpose
listed in section 604.
"(b) Whenever a consumer reporting agency prepares a
consumer report it shall follow reasonable procedures to assure
maximum possible accuracy of the information concerning the
individual about whom the report relates.
"608. Disclosures to governmental agencies
"Notwithstanding the provisions of section 604, a consumer
reporting agency may furnish identifying information respecting
any consumer, limited to his name, address, former addresses,
places of employment, or former places of employment, to a
governmental agency.
"609. Disclosures to consumers
"(a) Every consumer reporting agency shall, upon request and
proper identification of any consumer, clearly and accurately
disclose to the consumer:
"(1) The nature and substance of all information (except
medical information) in its files on the consumer at the time of
the request.
"(2) The sources of the information; except that the sources
of info rmation acquired solely for use in preparing an
investigative consumer report and actually used for no other
purpose need not be disclosed: Provided, That in the event an
action is brought under this title, such sources shall be
available to the plaintiff under appropriate discovery procedures
in the court in which the action is brought.
"(3) The recipients of any consumer report on the consumer
which it has furnished --
"(A) for employment purposes within the two-year period
preceding the request, and
"(B) for any other purpose within the six-month period
preceding the request.
"(b) The requirements of subsection (a) respecting the
disclosure of sources of information and the recipients of
consumer reports do not apply to information received or consumer
reports furnished prior to the effective date of this title
except to the extent that the matter involved is contained in the
files of the consumer reporting agency on that date.
"610. Conditions of disclosure to consumers
"(a) A consumer reporting agency shall make the disclosures
required under section 609 during normal business hours and on
reasonable notice.
"(b) The disclosures required under section 609 shall be
made to the consumer --
"(1) in person if he appears in person and furnishes proper
identification; or
"(2) by telephone if he has made a written request, with
proper identification, for telephone disclosure and the toll
charge, if any, for the telephone call is prepaid by or charged
directly to the consumer.
"(c) Any consumer reporting agency shall provide trained
personnel to explain to the consumer any information furnished to
him pursuant to section 609.
"(d) The consumer shall be permitted to be accompanied by
one other person of his choosing, who shall furnish reasonable
identification. A consumer reporting agency may require the
consumer to furnish a written statement granting permission to
the consumer reporting agency to discuss the consumer's file in
such person's presence.
"(e) Except as provided in sections 616 and 617, no consumer
may bring any action or proceeding in the nature of defamation,
invasion of privacy, or negligence with respect to the reporting
of information against any consumer reporting agency, any user of
information, or any person who furnishes information to a
consumer reporting agency, based on information disclosed
pursuant to section 609, 610, or 615, except as to false
information furnished with malice or willful intent to injure
such consumer.
"611. Procedure in case of disputed accuracy
"(a) If the completeness or accuracy of any item of
information contained in his file is disputed by a consumer, and
such dispute is directly conveyed to the consumer reporting
agency by the consumer, the consumer reporting agency shall
within a reasonable period of time reinvestigate and record the
current status of that information unless it has reasonable
grounds to believe that the dispute by the consumer is frivolous
or irrevelant. If after such reinvestigation such information is
found to be inaccurate or can no longer be verified, the consumer
reporting agency shall promptly delete such information. The
presence of contradictory information in the consumer's file does
not in and of itself constitute reasonable grounds for believing
the dispute is frivolous or irrelevant.
"(b) If the reinvestigation does not resolve the dispute,
the consumer may file a brief statement setting forth the nature
of the dispute. The consumer reporting agency may limit such
statements to not more than one hundred words if it provides the
consumer with assistance in writing a clear summary of the
dispute.
"(c) Whenever a statement of a dispute is filed, unless
there is reasonable grounds to believe that it is frivolous or
irreverent, the consumer reporting agency shall, in any
subsequent consumer report containing the information in
question, clearly note that it is disputed by the consumer and
provide either the consumer's statement or a clear and accurate
codification or summary thereof.
"(d) Following any deletion of information which is found to
be inaccurate or whose accuracy can no longer be verified or any
notation as to disputed information, the consumer reporting
agency shall, at the request of the consumer, furnish
notification that the item has been deleted or the statement,
codification or summary pursuant to subsection (b) or (c) to any
person specifically designated by the consumer who has within two
years prior thereto received a consumer report for employment
purposes, or within six months prior thereto received a consumer
report for any other purpose, which contained the deleted or
disputed information. The consumer reporting agency shall
clearly and conspicuously disclose to the consumer his rights to
make such a request. Such disclosure shall be made at or prior
to the time the information is deleted or the consumer's
statement regarding the disputed information is received.
"612. Charges for certain disclosures
"A consumer reporting agency shall make all disclosures
pursuant to section 609 and furnish all consumer reports pursuant
to section 611(d) without charge to the consumer if, within
thirty days after receipt by such consumer of a notification
pursuant to section 615 or notification from a debt collection
agency affiliated with such consumer reporting agency stating
that the consumer's credit rating may be or has been adversely
affected, the consumer makes a request under section 609 or
611(d). Otherwise, the consumer reporting agency may impose a
reasonable charge on the consumer for making disclosure to such
consumer pursuant to section 609, the charge for which shall be
indicated to the consumer prior to making disclosure; and for
furnishing notifications, statements, summaries, or codifications
to person designated by the consumer pursuant to section 611(d),
the charge for which shall be indicated to the consumer prior to
furnishing such information and shall not exceed the charge that
the consumer reporting agency would impose on each designated
recipient for a consumer report except that no charge may be made
for notifying such persons of the deletion of information which
is found to be inaccurate or which can no longer be verified.
"613. Public record information for employment purposes
"A consumer reporting agency which furnishes a consumer
report for employment purposes and which for that purpose
compiles and reports items of information on consumers which are
matters of public record and are likely to have an adverse effect
upon a consumer's ability to obtain employment shall --
"(1) at the time such public record information is reported
to the user of such consumer report, notify the consumer of the
fact that public record information is being reported by the
consumer reporting agency, together with the name and address of
person to whom such information is being reported; or
"(2) maintain strict procedures designed to insure that
whenever public record information which is likely to have an
adverse effect on a consumer's ability to obtain employment is
reported it is complete and up to date. For purposes of this
paragraph, items of public record relating to arrests,
indictments, convictions, suits, tax liens, and outstanding
judgments shall be considered up to date if the current public
record status of the item at the time of the report is reported.
"614. Restrictions on investigative consumer reports
"Whenever a consumer reporting agency prepares an
investigative consumer report, no adverse information in the
consumer report (other than information which is a matter of
public record) may be included in a subsequent consumer report
unless such adverse information has been verified in the process
of making such subsequent consumer report, or the adverse
information was received within the three-month period preceding
the date the subsequent report is furnished.
"615. Requirements on users of consumer reports
"(a) Whenever credit or insurance for personal, family, or
household purposes, or employment involving a consumer is denied
or the charge for such credit or insurance is increased either
wholly or partly because of information contained in a consumer
report from a consumer reporting agency, the user of the consumer
report shall so advise the consumer against whom such adverse
action has been taken and supply the name and address of the
consumer reporting agency making the report.
"(b) Whenever credit for personal, family, or household
purposes involving a consumer is denied or the charge for such
credit is increased either wholly or partly because of
information obtained from a person other than a consumer
reporting agency bearing upon the consumer's credit worthiness,
credit standing, credit capacity, character, general reputation,
personal characteristics, or mode of living, the user of such
information shall, within a reasonable period of time, upon the
consumer's written request for the reasons for such adverse
action received within sixty days after learning of such adverse
action, disclose the nature of the information to the consumer.
The user of such information shall clearly and accurately
disclose to the consumer his right to make such written request
at the time such adverse action is communicated to the consumer.
"(c) No person shall be held liable for any violation of
this section if he shows by a preponderance of the evidence that
at the time of the alleged violation he maintained reasonable
procedures to assure compliance with the provisions of
subsections (a) and (b).
"616. Civil liability for willful noncompliance
"Any consumer reporting agency or user of information which
willfully fails to comply with any requirement imposed under this
title with respect to any consumer is liable to that consumer in
an amount equal to the sum of --
"(1) any actual damages sustained by the consumer as a
result of the failure;
"(2) such amount of punitive damages as the court may allow;
and
"(3) in the case of any successful action to enforce any
liability under this section, the costs of the action together
with reasonable attorney's fees as determined by the court.
"617. Civil liability for negligent noncompliance
"Any consumer reporting agency or use of information which
is negligent in failing to comply with any requirement imposed
under this title with respect to any consumer is liable to that
consumer in an amount equal to the sum of --
"(1) any actual damages sustained by the consumer as a
result of the failure;
"(2) in the case of any successful action to enforce any
liability under this section, the costs of the action together
with reasonable attorney's fees as determined by the court.
"618. Jurisdiction of courts; limitation of actions
"An action to enforce any liability created under this title
may be brought in any appropriate Untied States district court
without regard to the amount in controversy, or in any other
court of competent jurisdiction, within two years from the date
on which the liability arises, except that where a defendant has
materially and willfully misrepresented any information required
under this title to be disclosed to an individual and the
information so misrepresented is material to the establishment of
the defendant's liability to that individual under this title,
the action may be brought at any time within two years after
discovery by the individual of the misrepresentation.
"619. Obtaining information under false presences
"Any person who knowingly and willfully obtains information
on a consumer from a consumer reporting agency under false
presences shall be fined not more than $$5,000 or imprisoned not
more than one year, or both.
"620. Unauthorized disclosures by officers or employees
"Any officer or employee of a consumer reporting agency who
knowingly and willfully provides information concerning an
individual from the agency's files to a person not authorized to
receive that information shall be fined not more than $$5,000 or
imprisoned not more than one year, or both.
"621. Administrative enforcement.
"(a) Compliance with the requirements imposed under this
title shall be enforced under the Federal Trade Commission Act by
the Federal Trade Commission with respect to consumer reporting
agencies and all other persons subject thereto, except to the
extent that enforcement of the requirements imposed under this
title is specifically committed to some other government agency
under subsection (b) hereof. For the purpose of the exercise by
the Federal Trade Commission of its functions and powers under
the Federal Trade Commission Act, a violation of any requirement
or prohibition imposed under this title shall constitute an
unfair or deceptive act or practice in commerce in violation of
section 5(a) of the Federal Trade Commission Act and shall be
subject to enforcement by the Federal Trade Commission under
section 5(b) thereof with respect to any consumer reporting
agency or person subject to enforcement by the Federal Trade
Commission pursuant to this subsection, irrespective of whether
that person is engaged in commerce or meets any other
jurisdictional tests in the Federal Trade Commission Act. The
Federal Trade Commission shall have such procedural,
investigative, and enforcement powers, including the power to
issue procedural rules in enforcing compliance with the
requirements imposed under this title and to require the filing
of reports, the production of documents, and the appearance of
witnesses as though the applicable terms and conditions of the
Federal Trade Commission Act were part of this title. Any person
violating any of the provisions of this title shall be subject to
the penalties and entitled to the privileges and immunities
provided in the Federal Trade Commission Act as though the
applicable terms and provisions thereof were part of this title.
"(b) Compliance with the requirements imposed under this
title with respect to consumer reporting agencies and persons who
use consumer reports from such agencies shall be enforced under
--
"(1) section 8 of the Federal Deposit Insurance Act, in the
case of:
"(A) national banks, by the Comptroller of the
Currency;
"(B) member banks of the Federal Reserve System (other
than national banks), by the Federal Reserve Board; and
"(C) banks insured by the Federal Deposit Insurance
Corporation (other than members of the Federal Reserve
System), by the Board of Directors of the Federal Deposit
Insurance Corporation.
"(2) section 5(d) of the Home Owners Loan Act of 1993,
section 407 of the National Housing Act, and sections 6(i) and 17
of the Federal Home Loan Bank Act, by the Federal Home Loan Bank
Board (acting directly or through the Federal Savings and Loan
Insurance Corporation), in the case of any institution subject
to any of those provisions;
"(3) The Federal Credit Union Act, by the Administrator of
the National Credit Union Administration with respect to any
Federal credit union;
"(4) the Acts to regulate commerce, by the Interstate
Commerce Commission with respect to any common carrier subject to
those Acts;
"(5) the Federal Aviation Act of 1958, by the Civil
Aeronautics Board with respect to any air carrier or foreign air
carrier subject to that Act; and
"(6) the Packers and Stockyards Act, 1921 (except as
provided in section 406 of that Act), by the Secretary of
Agriculture with respect to any activities subject to that Act.
"(c) For the purpose of the exercise by any agency referred
to in subsection (b) of its powers under any Act referred to in
that subsection, a violation of any requirement imposed under
this title shall be deemed to be a violation of a requirement
imposed under that Act. In addition to its powers under and
provision of law specifically referred to in subsection (b), each
of the agencies referred to in that subsection may exercise, for
the purpose of enforcing compliance with any requirement imposed
under this title any other authority conferred on it by law.
"622. Relation to State laws
"This title does not annul, alter, affect, or exempt any
person subject to the provisions of this title from complying
with the laws of any State with respect to the collection,
distribution, or use of any information on consumers, except to
the extent that those laws are inconsistent with any provision of
this title, and then only to the extent of the inconsistency."
EFFECTIVE DATE
Sec 602. Section 504 of the Consumer Credit Protection Act is
amended by adding at the end thereof the following new
subsection:
"(d) Title VI takes effect upon the expiration of one
hundred and eighty days following the date of its enactment."
Approved October 26, 1970.