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.)
This version of the FCRA
is complete as of January 7, 2002. It 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), and 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).
TABLE OF CONTENTS
§ 601 Short title
§ 602 Congressional findings and statement of purpose
§ 603 Definitions; rules of construction
§ 604 Permissible purposes of consumer reports
§ 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 Relation to State laws
§ 625 Disclosures to FBI for counterintelligence purposes
§ 626 Disclosures to governmental agencies for counterterrorism
purposes
§ 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 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. The term "consumer report" does not include
(A) 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).
(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.
(j) Definitions relating to child
support obligations.
(1) Overdue
support. The term "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) State or
local child support enforcement agency. 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
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) Firm offer of credit or
insurance. 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) Credit or insurance transaction
that is not initiated by the consumer. 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) State. The term "State"
means any State, the Commonwealth of Puerto Rico, the District of
Columbia, and any territory or possession of
the United States.
(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
(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) Consumer reporting agency that
compiles and maintains files on consumers on a nationwide basis. 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.
§ 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
(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
(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
(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).
(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.
(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
(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) Classified information. The term `classified
information' means information that is protected from unauthorized disclosure
under Executive Order No. 12958 or successor orders.
(ii) National
security investigation. 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.
(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
(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 2-year period
following the election if the consumer does not submit to the agency a signed
notic
