PC-SIG: Essential Home & Business/PC-SIG - Essential Home and Business Collection.iso/25/3/9/LHARC1.EXE/CREDITRP.STB

Text File | 1991-04-22 | 33KB | 672 lines

/* Your credit bureau file contains (hopefully) accurate
information on your credit history. Here is the full text
of the Fair Credit Reporting Act. This Act governs what credit
reporting agencies must do, and sets a minimum federal standard.
States are free to set a more stringent standard. If you feel
that you have been victimized by an incorrect credit report,
then this Act is the place to start to learn your rights.*/


 1681a.  Definitions, rules of construction

(a) Definitions and rules of construction set forth in this
section are applicable for the purposes of this title [15 USC
1681 et seq.].

(b) The term "person" means any individual, partnership,
corporation, trust, estate, cooperative, association,
governmental subdivision or agency, or other entity.

(c) The term "consumer" means an individual.

(d) The term "consumer report" means any written, oral, or other
communication of any information by a consumer reporting agency
bearing on a consumer's credit worthiness, credit standing,
credit capacity, character, general reputation, personal
characteristics, or mode of living which is used or expected to
be used or collected in whole or in part for the purpose of
serving as a factor in establishing the consumer's eligibility
for (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 [15 USC  1681b].
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 [16 USC
1681m].

/* This part of the act sets forth what reports are covered. Note
that pre-employment reports, reports that insurors might get if
they are undecided on whether or not to grant you insurance
coverage are all covered.*/

(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 a 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.

/* There are different kinds of reports. An investigative report
is the most intrusive kind of report, and of course, the most
expensive for the creditor, employer or insuror to get. In this
type of report your acquaintances will be interviewed. It's
literally the same kind of report that would be used to grant
someone a security clearance. By the way, if you are out
applying for a job, you may see that your prospective employer
will put in teeny print on the job application that they
have permission to conduct an investigative report. This is
especially true when you might be bonded.*/

(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.

 1681b.  Permissible purposes of consumer 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 con-
     sumer 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.

/* This section sets forth when a report may be obtained. Note the
very elastic "legimiate business need" test. That means anything
short of investigation for illegal purposes. I can always find a
business reason to justify anything.*/

 1681c.  Reporting of obsolete information prohibited

(a) Except as authorized under subsection (b), no consumer
reporting agency may make any consumer report containing any of
the following items of information:

     (1) cases under title 11 of the United States Code [11 USCS
     101 et seq.] 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) 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.

/* This section answers a question that I frequently get asked-
how long will adverse credit information stay on my record. The
answer is 10 years for a bankruptcy, no more than seven years
on anything else.*/

(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.

 1681d.  Disclosure of investigative consumer reports

(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; or

     (2) the report is to be used or employment purposes for
     which the consumer has not specifically applied.

(b) Disclosure or 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),
[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.

/* Here are your disclosure rights on when an investigative report
is conducted.*/

(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).

 1681e.  Compliance procedures

(a) Every consumer reporting agency shall maintain reasonable
procedures designed to avoid violations of section 605 [15 USC
1681c] and to limit the furnishing of consumer reports to the
purposes listed under section 604 [15 USC  1681b].  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 [15 USC
1681b].

(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.

 1681f.  Disclosures to governmental agencies

Notwithstanding the provisions of section 604 [15 USCS  1681b],
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.

 1681g.  Disclosures to consumers

(a) Every consumer reporting agency shall, upon request and
proper identification of any consumer, clearly and accurately
disclose to the consumer:

     (1) The nature and substance of all information (except
     medical information) in its files on the consumer at the
     time of the request.

     (2) The sources of the information; except that the sources
     of information acquired solely for use in preparing an
     investigative consumer report and actually used for no other
     purpose need not be disclosed:  Provided, That in the event
     an action is brought under this title [15 USC  1681 et
     seq.], 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 [180 days
following Oct. 26, 1970; see effective date note to 15 USC
1681] except to the extent that the matter involved is contained
in the files of the consumer reporting agency on that date.

 1681h.  Conditions of disclosure to consumers

(a) Times and notice.  A consumer reporting agency shall make the
disclosures required under section 609 [15 USC  1681g] during
normal business hours and on reasonable notice.

(b) Identification of consumer.  The disclosures required under
section 609 [15 USC  1681g] 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) Trained personnel.  Any consumer reporting agency shall
provide trained personnel to explain to the consumer any
information furnished to him pursuant to section 609 [15 USC
1681g].

(d) Persons accompanying consumer.  The consumer shall be
permitted to be accompanied by one other person of his choosing,
who shall furnish reasonable identification.  A consumer
reporting agency may require the consumer to furnish a written
statement granting permission to the consumer reporting agency to
discuss the consumer's file in such person's presence.

(e) Limitation of liability.  Except as provided in sections 616
and 617 [15 USC  1681n and 1681o], no consumer may bring any
action or proceedings 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 [15 USC  1681g, 1681h, or
1681m], except as to false information furnished with malice or
willful intent to injure such consumer.

 1681i.  Procedure in case of disputed accuracy

(a) Dispute; reinvestigation.  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 irrelevant.  If after such reinvestigation such information is
found to be inaccurate or can no longer be verified, the consumer
reporting agency shall promptly delete such information.  The
presence of contradictory information in the consumer's file does
not in and of itself constitute reasonable grounds for believing
the dispute is frivolous or irrelevant.

/* Here's where some of your most important rights reside. A
credit reporting information MUST investigate and HAVE TO OBTAIN
verification of a disputed item. A credit reporting agency that
refuses to re-invesitgate and verify is headed for a lot of
trouble! The "frivolous" refusal had better be based on good
grounds, or else. */

(b) Statement of dispute.  If the reinvestigation does not
resolve the dispute, the consumer may file a brief statement
setting forth the nature of the dispute.  The consumer reporting
agency may limit such statements to not more than one hundred
words if it provides the consumer with assistance in writing a
clear summary of the dispute.

/* Another important right-- you may place your own statement
on the credit bureau record if you dispute something. */

(c) Notification of consumer dispute in subsequent consumer
reports.  Whenever a statement of a dispute is filed, unless
there is reasonable grounds to believe that it is frivolous or
irrelevant, the consumer reporting agency shall, in any
subsequent 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) Notification of deletion of disputed information. Following
any deletion of information which is found to be inaccurate or
whose accuracy can no longer be verified or any notation as to
disputed information, the consumer reporting agency shall, at the
request of the consumer, furnish notification that the item has
been deleted or the statement, codification or summary pursuant
to subsection (b) or (c) 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.

 1681j.  Charges for disclosures

A consumer reporting agency shall make all disclosures pursuant
to section 609 [15 USC  1681g] and furnish all consumer reports
pursuant to section 611(d) [15 USC  1681(d)] without charge to
the consumer if, within thirty days after receipt by such
consumer of a notification pursuant to section 615 [15 USC
1681m] or notification from a debt collection agency affiliated
with such consumer reporting agency stating that the consumer
makes a request under section 609 or 611(d) [15 USC  1681g or
1681i(d)].  Otherwise, the consumer reporting agency may impose a
reasonable charge on the consumer for making disclosure to such
consumer pursuant to section 609 [15 USC  1681g], 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) [15 USC  1681i(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.

/* If you are ever turned down for credit you are entitled to
a free copy of your credit bureau record, if the same is as a
result of the information in the credit bureau. */

 1681k.  Public record information for employment purposes

A consumer reporting agency which furnishes a consumer report for
employment purposes and which for that purpose compiles and
reports items of information on consumers which are matters of
public record and are likely to have an adverse effect upon a
consumer's ability to obtain employment shall --

     (1) at the time such public record information is reported
     to the user of such consumer report, notify the consumer of
     the fact that public record information is being reported by
     the consumer reporting agency, together with the name and
     address of the person to whom such information is being
     reported; or

/* Public record information includes convictions, judgments and
things that are obtained from a public agency like the Courts.*/

     (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.

 1681l.  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.

 1681m.  Requirements on users of consumer reports

(a) Adverse action based on reports of consumer reporting
agencies.  Whenever credit or insurance for personal, family, or
household purposes, or employment involving a consumer is denied
or the charge for such credit for 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) Adverse action based on reports of persons other than
consumer reporting agencies.  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) Reasonable procedures to assure compliance.  No person shall
be held liable for any violation of this section if he shows by a
preponderance of the evidence that at the time of the alleged
violation he maintained reasonable procedures to assure
compliance with the provisions of subsections (a) and (b).

 1681n.  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 [15 USC  1681 et seq.] 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.

/* The act now gives you the right to sue for money someone
who willfully violates the law.*/

 1681o.  Civil liability for negligent noncompliance

Any consumer reporting agency or user of information which is
negligent in failing to comply with any requirement imposed under
this title [15 USC  1681 et seq.] 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.

/* This part of the act relates to negligent non-compliance, that
is, a mistake rather than a deliberate act. */

1681p.  Jurisdiction of courts; limitation of actions

An action to enforce any liability created under this title [15
USCS  1681 et seq.] may be brought in any appropriate United
States district court without regard to the amount in
controversy, or in any other court of competent jurisdiction,
within two years from the date on which the liability arises,
except that where a defendant has materially and willfully
misrepresented any information required under this title to be
disclosed to an individual and the information so misrepresented
is material to the establishment of the defendant's liability to
that individual under this title [15 USC 1681 et seq.], the
action may be brought at any time within two years after
discovery by the individual of the misrepresentation.

 1681q.  Obtaining information under false pretenses

Any person who knowingly and willfully obtains information on a
consumer from a consumer reporting agency under false pretenses
shall be fined not more than $5,000 or imprisoned not more than
one year, or both.

 1681r.  Unauthorized disclosures by officers and 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.

 1681s.  Administrative enforcement

(a) Federal Trade Commission; powers.  Compliance with the
requirements imposed under this title [15 USC 1681 et seq.]
shall be enforced under the Federal Trade Commission Act [15 USC
41 et seq.] by the Federal Trade Commission with respect to
consumer reporting agencies and all other persons subject
thereto, except to the extent that enforcement of the
requirements imposed under this title [15 USC  1681 et seq.] is
specifically committed to some other government agency under
subsection (b) hereof.  For the purpose of the exercise by the
Federal Trade Commission Act [15 USC  41 et seq.], a violation
of any requirement or prohibition imposed under this title [15
USC  1681 et seq.] shall constitute an unfair or deceptive act
or practice in commerce in violation of section 5(a) of the
Federal Trade Commission Act [15 USC  45(a)] and shall be
subject to enforcement by the Federal Trade Commission under
section 5(b) thereof [15 USC  45(b)] with respect to any
consumer reporting agency or person subject to enforcement by the
Federal Trade Commission pursuant to this subsection,
irrespective of whether that person is engaged in commerce or
meets any other jurisdictional tests in the Federal Trade
Commission Act [15 USC  41 et seq.].  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 [15 USC  1681 et seq.] 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 [15 USC  41 et seq.] were part of
this title [15 USC  1681 et seq.].  Any person violating any of
the provisions of this title [15 USC  1681 et seq.] shall be
subject to the penalties and entitled to the privileges and
immunities provided in the Federal Trade Commission Act [15 USC
41 et seq.] as though the applicable terms and provisions
thereof were part of this title [15 USC  1681 et seq.].

/* The Federal Trade Commission is the body which can enforce
the act. Their address appears in the tutorial on this topic.
If you have a well documented case contact them. */

(b) Other administrative bodies.  Compliance with the
requirements imposed under this title [15 USC  1681 et seq.]
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 [12 USCS
      1818], 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 1933 [12 USC
     1464(d)], section 407 of the National Housing Act [12 USC
     1730], and sections 6(i) and 17 of the Federal Home Loan
     Bank Act [12 USC  1426(i), 1437] 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 [12 USC  1751 et seq.],
     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 [49 USC  1301 et
     seq.], 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 [7 USC  181 et
     seq.] (except as provided in section 406 of that act [7 USC
     226, 227]), by the Secretary of Agriculture with respect
     to any activities subject to that Act.

(c) Enforcement under other authority. 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 [15 USCS 1681 et
seq.] shall be deemed to be a violation of a requirement imposed
under that Act.  In addition to its powers under any provision of
law specifically referred to in subsection (b), each of the
agencies referred to in that subsection may exercise, for the
purpose of enforcing compliance with any requirement imposed
under this title [15 USC  1681 et seq.] any other authority
conferred on it by law.

 1681t.  Relation to State laws

This title [15 USC  1681 et seq.] does not annul, alter,
affect, or exempt any person subject to the provisions of this
title [15 USC  1681 et seq.] 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 [15 USC
1681 et seq.], and then only to the extent of the inconsistency.