Product: Debt collection

I do not know what this account is and do not owe this money 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 consumers 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 consumers credit worthiness, credit standing, 2 603 - 15 U.S.C. 1681a 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 consumers 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 ) .1 1 Should be read as ( o ) or ( y ) because section 603 ( x ) was re-designated as 603 ( y ) in 2010 by the CFPA.

603 - 15 U.S.C. 1681a 3 ( 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 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 consumers 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 consumers 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 4 603 - 15 U.S.C. 1681a ( 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.

( 2 ) does not include the age or gender of a consumer, demographic information about the consumer, including a consumers 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 603 - 15 U.S.C. 1681a 5 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 Bureau 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 consumers 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 consumers 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 consumers 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.

6 603 - 15 U.S.C. 1681a ( 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.

( 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 603 - 15 U.S.C. 1681a 7 ( 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 consumers 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 consumers 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 consumers 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 8 603 - 15 U.S.C. 1681a ( 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 Bureau may prescribe, by regulation.

See also 16 CFR Part 603.2 69 Fed. Reg. 63922 ( 11/03/04 ) ( 4 ) The term identity theft report has the meaning given that term by rule of the Bureau, and means, at a minimum, a report See also 16 CFR Part 603.3 69 Fed. Reg. 63922 ( 11/03/04 ) ( A ) that alleges an identity theft ; ( 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 Bureau ; 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.

603 - 15 U.S.C. 1681a 9 ( 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 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 Bureau means the Bureau of Consumer Financial Protection.

( x ) 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.

( y ) 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 10 603 - 15 U.S.C. 1681a ( 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 consumers 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 ; ( 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 .

( z ) Veteran. The term veteran has the meaning given the term in section 101 of title 38, United States Code.

( aa ) Veterans medical debt. The term veterans medical debt ( 1 ) means a medical collection debt of a veteran owed to a non-Department of Veterans Affairs health care provider that was submitted to the Department for payment for health care authorized by the Department of Veterans Affairs ; and ( 2 ) includes medical collection debt that the Department of Veterans Affairs has wrongfully charged a veteran.

604 - 15 U.S.C. 1681b 11 604. 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 consumers eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicants 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.2 ( G ) executive departments and agencies in connection with the issuance of government-sponsored individually-billed travel charge cards. 2 2 As written in the 2007 amendment that added section 604 ( a ) ( 3 ) ( G ). Subsection F ( ii ) should end with ; or instead of a period, and the text of subsection ( g ) should conform to the style of the rest of section 605 ( a ) ( 3 ).

12 604 - 15 U.S.C. 1681b ( 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 individuals capacity to make child support payments, determining the appropriate level of such payments, or enforcing a child support order, award, agreement, or judgment ; ( B ) the parentage 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 ) ; and ( C ) 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.

( D ) Redesignated ( C ) ( 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.

( 6 ) To the Federal Deposit Insurance Corporation or the National Credit Union Administration as part of its preparation for its appointment or as part of its exercise of powers, as conservator, receiver, or liquidating agent for an insured depository institution or insured credit union under the Federal Deposit Insurance Act or the Federal Credit Union Act, or other applicable Federal or State law, or in connection with the resolution or liquidation of a failed or failing insured depository institution or insured credit union, as applicable.

( 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 604 - 15 U.S.C. 1681b 13 ( 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 consumers rights under this title, as prescribed by the Bureau 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 consumers 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 consumers application for employment only if 14 604 - 15 U.S.C. 1681b ( 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 Bureau under section 609 ( c ) ( 3 ) .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 ; 3 The 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 ).

604 - 15 U.S.C. 1681b 15 ( 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 consumers request, together with proper identification, the person must send or provide to the consumer a copy of a report and a copy of the consumers rights as prescribed by the Bureau under section 609 ( c ) ( 3 ) .3 ( C ) Scope. Subparagraph ( B ) shall apply to a person procuring a consumer report on a consumer in connection with the consumers 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 16 604 - 15 U.S.C. 1681b consumer report for employment purposes