-CITE-    
    15 USC CHAPTER 41 - CONSUMER CREDIT PROTECTION              01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION


-HEAD-
                  CHAPTER 41 - CONSUMER CREDIT PROTECTION              

-MISC1-
              SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE          

                        PART A - GENERAL PROVISIONS                    
    Sec.                                                     
    1601.       Congressional findings and declaration of purpose.    
    1602.       Definitions and rules of construction.                
    1603.       Exempted transactions.                                
    1604.       Disclosure guidelines.                                
    1605.       Determination of finance charge.                      
    1606.       Determination of annual percentage rate.              
    1607.       Administrative enforcement.                           
    1608.       Views of other agencies.                              
    1609.       Repealed.                                             
    1610.       Effect on other laws.                                 
    1611.       Criminal liability for willful and knowing violation. 
    1612.       Effect on government agencies.                        
    1613.       Annual reports to Congress by Board.                  
    1614.       Repealed.                                             
    1615.       Prohibition on use of "Rule of 78's" in connection
                 with mortgage refinancings and other consumer loans. 

                       PART B - CREDIT TRANSACTIONS                   
    1631.       Disclosure requirements.                              
    1632.       Form of disclosure; additional information.           
    1633.       Exemption for State-regulated transactions.           
    1634.       Effect of subsequent occurrence.                      
    1635.       Right of rescission as to certain transactions.       
    1636.       Repealed.                                             
    1637.       Open end consumer credit plans.                       
    1637a.      Disclosure requirements for open end consumer credit
                 plans secured by consumer's principal dwelling.      
    1638.       Transactions other than under an open end credit plan.
    1639.       Requirements for certain mortgages.                   
    1640.       Civil liability.                                      
    1641.       Liability of assignees.                               
    1642.       Issuance of credit cards.                             
    1643.       Liability of holder of credit card.                   
    1644.       Fraudulent use of credit cards; penalties.            
    1645.       Business credit cards; limits on liability of
                 employees.                                           
    1646.       Dissemination of annual percentage rates;
                 implementation, etc.                                 
    1647.       Home equity plans.                                    
    1648.       Reverse mortgages.                                    
    1649.       Certain limitations on liability.                     

                        PART C - CREDIT ADVERTISING                    
    1661.       Catalogs and multiple-page advertisements.            
    1662.       Advertising of downpayments and installments.         
    1663.       Advertising of open end credit plans.                 
    1664.       Advertising of credit other than open end plans.      
    1665.       Nonliability of advertising media.                    
    1665a.      Use of annual percentage rate in oral disclosures;
                 exceptions.                                          
    1665b.      Advertising of open end consumer credit plans secured
                 by consumer's principal dwelling.                    

                          PART D - CREDIT BILLING                      
    1666.       Correction of billing errors.                         
    1666a.      Regulation of credit reports.                         
    1666b.      Length of billing period in credit statement for
                 imposition of finance charge; effect of failure of
                 timely mailing or delivery of statement.             
    1666c.      Prompt crediting of payments; imposition of finance
                 charge.                                              
    1666d.      Treatment of credit balances.                         
    1666e.      Notification of credit card issuer by seller of return
                 of goods, etc., by obligor; credit for account of
                 obligor.                                             
    1666f.      Inducements to cardholders by sellers of cash
                 discounts for payments by cash, check or similar
                 means; finance charge for sales transactions
                 involving cash discounts.                            
    1666g.      Tie-in services prohibited for issuance of credit
                 card.                                                
    1666h.      Offset of cardholder's indebtedness by issuer of
                 credit card with funds deposited with issuer by
                 cardholder; remedies of creditors under State law not
                 affected.                                            
    1666i.      Assertion by cardholder against card issuer of claims
                 and defenses arising out of credit card transaction;
                 prerequisites; limitation on amount of claims or
                 defenses.                                            
    1666j.      Applicability of State laws.                          

                         PART E - CONSUMER LEASES                     
    1667.       Definitions.                                          
    1667a.      Consumer lease disclosures.                           
    1667b.      Lessee's liability on expiration or termination of
                 lease.                                               
    1667c.      Consumer lease advertising; liability of advertising
                 media.                                               
    1667d.      Civil liability of lessors.                           
    1667e.      Applicability of State laws; exemptions by Board from
                 leasing requirements.                                
    1667f.      Regulations.                                          

                SUBCHAPTER II - RESTRICTIONS ON GARNISHMENT            
    1671.       Congressional findings and declaration of purpose.    
    1672.       Definitions.                                          
    1673.       Restriction on garnishment.                           
    1674.       Restriction on discharge from employment by reason of
                 garnishment.                                         
    1675.       Exemption for State-regulated garnishments.           
    1676.       Enforcement by Secretary of Labor.                    
    1677.       Effect on State laws.                                 

               SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS           
    1679.       Findings and purposes.                                
    1679a.      Definitions.                                          
    1679b.      Prohibited practices.                                 
    1679c.      Disclosures.                                          
    1679d.      Credit repair organizations contracts.                
    1679e.      Right to cancel contract.                             
    1679f.      Noncompliance with this subchapter.                   
    1679g.      Civil liability.                                      
    1679h.      Administrative enforcement.                           
    1679i.      Statute of limitations.                               
    1679j.      Relation to State law.                                

                SUBCHAPTER III - CREDIT REPORTING AGENCIES            
    1681.       Congressional findings and statement of purpose.      
    1681a.      Definitions; rules of construction.                   
    1681b.      Permissible purposes of consumer reports.             
    1681c.      Requirements relating to information contained in
                 consumer reports.                                    
    1681c-1.    Identity theft prevention; fraud alerts and active
                 duty alerts.                                         
    1681c-2.    Block of information resulting from identity theft.   
    1681d.      Disclosure of investigative consumer reports.         
    1681e.      Compliance procedures.                                
    1681f.      Disclosures to governmental agencies.                 
    1681g.      Disclosures to consumers.                             
    1681h.      Conditions and form of disclosure to consumers.       
    1681i.      Procedure in case of disputed accuracy.               
    1681j.      Charges for certain disclosures.                      
    1681k.      Public record information for employment purposes.    
    1681l.      Restrictions on investigative consumer reports.       
    1681m.      Requirements on users of consumer reports.            
    1681n.      Civil liability for willful noncompliance.            
    1681o.      Civil liability for negligent noncompliance.          
    1681p.      Jurisdiction of courts; limitation of actions.        
    1681q.      Obtaining information under false pretenses.          
    1681r.      Unauthorized disclosures by officers or employees.    
    1681s.      Administrative enforcement.                           
    1681s-1.    Information on overdue child support obligations.     
    1681s-2.    Responsibilities of furnishers of information to
                 consumer reporting agencies.                         
    1681s-3.    Affiliate sharing.                                    
    1681t.      Relation to State laws.                               
    1681u.      Disclosures to FBI for counterintelligence purposes.  
    1681v.      Disclosures to governmental agencies for
                 counterterrorism purposes.                           
    1681w.      Disposal of records.                                  
    1681x.      Corporate and technological circumvention prohibited. 

                 SUBCHAPTER IV - EQUAL CREDIT OPPORTUNITY             
    1691.       Scope of prohibition.                                 
    1691a.      Definitions; rules of construction.                   
    1691b.      Promulgation of regulations by Board; establishment of
                 Consumer Advisory Council by Board; duties,
                 membership, etc., of Council.                        
    1691c.      Administrative enforcement.                           
    1691c-1.    Incentives for self-testing and self-correction.      
    1691d.      Applicability of other laws.                          
    1691e.      Civil liability.                                      
    1691f.      Annual reports to Congress; contents.                 

                 SUBCHAPTER V - DEBT COLLECTION PRACTICES             
    1692.       Congressional findings and declaration of purpose.    
    1692a.      Definitions.                                          
    1692b.      Acquisition of location information.                  
    1692c.      Communication in connection with debt collection.     
    1692d.      Harassment or abuse.                                  
    1692e.      False or misleading representations.                  
    1692f.      Unfair practices.                                     
    1692g.      Validation of debts.                                  
    1692h.      Multiple debts.                                       
    1692i.      Legal actions by debt collectors.                     
    1692j.      Furnishing certain deceptive forms.                   
    1692k.      Civil liability.                                      
    1692l.      Administrative enforcement.                           
    1692m.      Reports to Congress by the Commission; views of other
                 Federal agencies.                                    
    1692n.      Relation to State laws.                               
    1692o.      Exemption for State regulation.                       
    1692p       Exception for certain bad check enforcement programs
                 operated by private entities.                        

                 SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS             
    1693.       Congressional findings and declaration of purpose.    
    1693a.      Definitions.                                          
    1693b.      Regulations.                                          
    1693c.      Terms and conditions of transfers.                    
    1693d.      Documentation of transfers.                           
    1693e.      Preauthorized transfers.                              
    1693f.      Error resolution.                                     
    1693g.      Consumer liability.                                   
    1693h.      Liability of financial institutions.                  
    1693i.      Issuance of cards or other means of access.           
    1693j.      Suspension of obligations.                            
    1693k.      Compulsory use of electronic fund transfers.          
    1693l.      Waiver of rights.                                     
    1693m.      Civil liability.                                      
    1693n.      Criminal liability.                                   
    1693o.      Administrative enforcement.                           
    1693p.      Reports to Congress.                                  
    1693q.      Relation to State laws.                               
    1693r.      Exemption for State regulation.                       

-End-


-CITE-
    15 USC SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE       01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE

-HEAD-
              SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE          

-End-


-CITE-
    15 USC Part A - General Provisions                          01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
                        PART A - GENERAL PROVISIONS                    

-End-



-CITE-
    15 USC Sec. 1601                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1601. Congressional findings and declaration of purpose

-STATUTE-
    (a) Informed use of credit
      The Congress finds that economic stabilization would be enhanced
    and the competition among the various financial institutions and
    other firms engaged in the extension of consumer credit would be
    strengthened by the informed use of credit. The informed use of
    credit results from an awareness of the cost thereof by consumers.
    It is the purpose of this subchapter to assure a meaningful
    disclosure of credit terms so that the consumer will be able to
    compare more readily the various credit terms available to him and
    avoid the uninformed use of credit, and to protect the consumer
    against inaccurate and unfair credit billing and credit card
    practices.
    (b) Terms of personal property leases
      The Congress also finds that there has been a recent trend toward
    leasing automobiles and other durable goods for consumer use as an
    alternative to installment credit sales and that these leases have
    been offered without adequate cost disclosures. It is the purpose
    of this subchapter to assure a meaningful disclosure of the terms
    of leases of personal property for personal, family, or household
    purposes so as to enable the lessee to compare more readily the
    various lease terms available to him, limit balloon payments in
    consumer leasing, enable comparison of lease terms with credit
    terms where appropriate, and to assure meaningful and accurate
    disclosures of lease terms in advertisements.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 102, May 29, 1968, 82 Stat. 146;
    Pub. L. 93-495, title III, Sec. 302, Oct. 28, 1974, 88 Stat. 1511;
    Pub. L. 94-240, Sec. 2, Mar. 23, 1976, 90 Stat. 257.)


-MISC1-
                                AMENDMENTS                            
      1976 - Pub. L. 94-240 designated existing provisions as subsec.
    (a) and added subsec. (b).
      1974 - Pub. L. 93-495 inserted provisions expanding purposes of
    subchapter to include protection of consumer against inaccurate and
    unfair credit billing and credit card practices.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-240 effective on expiration of one year
    after Mar. 23, 1976, see section 6 of Pub. L. 94-240, set out as an
    Effective Date note under section 1667 of this title.

                     EFFECTIVE DATE OF 1974 AMENDMENT                 
      For effective date of amendment by Pub. L. 93-495, see section
    308 of Pub. L. 93-495, set out as an Effective Date note under
    section 1666 of this title.

                              EFFECTIVE DATE                          
      Section 504(a) of Pub. L. 90-321 provided that this part is
    effective May 29, 1968.

                       SHORT TITLE OF 2003 AMENDMENT                   
      Pub. L. 108-159, Sec. 1(a), Dec. 4, 2003, 117 Stat. 1952,
    provided that: "This Act [enacting sections 1681c-1, 1681c-2, 1681s-
    3, 1681w, and 1681x of this title and sections 9701 to 9708 of
    Title 20, Education, amending sections 1681a, 1681b, 1681c, 1681g,
    1681i, 1681j, 1681m, 1681o, 1681p, 1681s, 1681s-2, 1681t, 1681u,
    and 1681v of this title and section 5318 of Title 31, Money and
    Finance, enacting provisions set out as notes under this section,
    sections 1681, 1681a, 1681b, 1681c, 1681c-1, 1681i, 1681j, 1681m,
    1681n, 1681s-2, 1681s-3 of this title, and section 9701 of Title
    20, and amending provisions set out as a note under this section]
    may be cited as the 'Fair and Accurate Credit Transactions Act of
    2003'."

                       SHORT TITLE OF 1999 AMENDMENT                   
      Pub. L. 106-102, title VII, Sec. 701, Nov. 12, 1999, 113 Stat.
    1463, provided that: "This subtitle [subtitle A (Secs. 701-705) of
    title VII of Pub. L. 106-102, amending sections 1693b, 1693c, and
    1693h of this title] may be cited as the 'ATM Fee Reform Act of
    1999'."

                       SHORT TITLE OF 1998 AMENDMENT                   
      Pub. L. 105-347, Sec. 1, Nov. 2, 1998, 112 Stat. 3208, provided
    that: "This Act [amending sections 1681a to 1681c, 1681g, 1681i,
    1681k, and 1681s of this title and enacting provisions set out as a
    note under section 1681a of this title] may be cited as the
    'Consumer Reporting Employment Clarification Act of 1998'."

                       SHORT TITLE OF 1996 AMENDMENT                   
      Pub. L. 104-208, div. A, title II, Sec. 2401, Sept. 30, 1996, 110
    Stat. 3009-426, provided that: "This chapter [chapter 1 (Secs. 2401-
    2422) of subtitle D of title II of div. A of Pub. L. 104-208,
    enacting section 1681s-2 of this title, amending sections 1681a to
    1681e, 1681g to 1681j, 1681m to 1681o, 1681q to 1681s, and 1681t of
    this title, and enacting provisions set out as notes under sections
    1681a, 1681b, and 1681g of this title] may be cited as the
    'Consumer Credit Reporting Reform Act of 1996'."

                      SHORT TITLE OF 1995 AMENDMENTS                  
      Pub. L. 104-29, Sec. 1, Sept. 30, 1995, 109 Stat. 271, provided
    that: "This Act [enacting section 1649 of this title, amending
    sections 1605, 1631, 1635, 1640, and 1641 of this title, and
    enacting provisions set out as notes under section 1605 of this
    title] may be cited as the 'Truth in Lending Act Amendments of
    1995'."
      Pub. L. 104-12, Sec. 1, May 18, 1995, 109 Stat. 161, provided
    that: "This Act [amending section 1640 of this title] may be cited
    as the 'Truth in Lending Class Action Relief Act of 1995'."

                       SHORT TITLE OF 1994 AMENDMENT                   
      Pub. L. 103-325, title I, Sec. 151, Sept. 23, 1994, 108 Stat.
    2190, provided that: "This subtitle [subtitle B (Secs. 151-158) of
    title I of Pub. L. 103-325, enacting sections 1639 and 1648 of this
    title, amending sections 1602, 1604, 1610, 1640, 1641, and 1647 of
    this title, and enacting provisions set out as notes under this
    section and section 1602 of this title] may be cited as the 'Home
    Ownership and Equity Protection Act of 1994'."

                       SHORT TITLE OF 1992 AMENDMENT                   
      Pub. L. 102-537, Sec. 1, Oct. 27, 1992, 106 Stat. 3531, provided
    that: "This Act [enacting section 1681s-1 of this title, amending
    section 1681a of this title, and enacting provisions set out as a
    note under section 1681a of this title] may be cited as the 'Ted
    Weiss Child Support Enforcement Act of 1992'."

                      SHORT TITLE OF 1988 AMENDMENTS                  
      Pub. L. 100-709, Sec. 1, Nov. 23, 1988, 102 Stat. 4725, provided
    that: "This Act [enacting sections 1637a, 1647, and 1665b of this
    title, amending sections 1632 and 1637 of this title, and enacting
    provisions set out as notes under section 1637a of this title] may
    be cited as the 'Home Equity Loan Consumer Protection Act of
    1988'."
      Pub. L. 100-583, Sec. 1, Nov. 3, 1988, 102 Stat. 2960, provided
    that: "This Act [amending sections 1610, 1632, 1637, 1640, and 1646
    of this title and enacting provisions set out as a note under
    section 1637 of this title] may be cited as the 'Fair Credit and
    Charge Card Disclosure Act of 1988'."

                       SHORT TITLE OF 1981 AMENDMENT                   
      Pub. L. 97-25, Sec. 1, July 27, 1981, 95 Stat. 144, provided:
    "That this Act [amending sections 1602 and 1666f of this title,
    section 29 of Title 12, Banks and Banking, and sections 205 and 212
    of Title 42, The Public Health and Welfare; enacting provisions set
    out as notes under this section and sections 1602 and 1666f of this
    title; and amending provisions set out as notes under sections 1602
    and 1666f of this title] may be cited as the 'Cash Discount Act'."

                       SHORT TITLE OF 1980 AMENDMENT                   
       Pub. L. 96-221, title VI, Sec. 601, Mar. 31, 1980, 94 Stat. 168,
    provided that: "This title [enacting section 1646 of this title,
    amending sections 57a, 1602 to 1607, 1610, 1612, 1613, 1631, 1632,
    1635, 1637, 1638, 1640, 1641, 1643, 1663, 1664, 1665a, 1666, 1666d,
    1667d, and 1691f of this title, repealing sections 1614, 1636, and
    1639 of this title, and enacting provisions set out as notes under
    sections 1602 and 1607 of this title] may be cited as the 'Truth in
    Lending Simplification and Reform Act'."

                      SHORT TITLE OF 1976 AMENDMENTS                  
      Section 1 of Pub. L. 94-240 provided that: "This Act [enacting
    sections 1667 to 1667e of this title, amending this section and
    section 1640 of this title, and enacting provisions set out as a
    note under section 1667 of this title] may be cited as the
    'Consumer Leasing Act of 1976'."
      Pub. L. 94-239, Sec. 1(a), Mar. 23, 1976, 90 Stat. 251, provided
    that: "This Act [enacting section 1691f of this title, amending
    this section and sections 1691b, 1691c, 1691d, 1691e of this title,
    repealing section 1609 of this title, enacting provisions set out
    as notes under this section, and repealing provision set out as a
    note under this section] may be cited as the 'Equal Credit
    Opportunity Act Amendments of 1976'."
      Section 1(c) of Pub. L. 94-239 repealed section 501 of Pub. L. 93-
    495, title V, Oct. 28, 1974, 88 Stat. 1521, which provided that
    subchapter IV of this chapter and notes set out under section 1691
    were to be cited as the "Equal Credit Opportunity Act".

                       SHORT TITLE OF 1974 AMENDMENT                   
      Section 301 of title III of Pub. L. 93-495 provided that: "This
    title [enacting sections 1666 to 1666j of this title, amending this
    section and sections 1602, 1610, 1631, 1632, and 1637 of this
    title, and enacting provision set out as a note under section 1666
    of this title] may be cited as the 'Fair Credit Billing Act'."

                                SHORT TITLE                            
      Section 1 of Pub. L. 90-321 provided that: "This Act [enacting
    this chapter, sections 891 to 896 of Title 18, Crimes and Criminal
    Procedure, and provisions set out as notes under this section,
    sections 1631 and 1671 of this title, and section 891 of Title 18]
    may be cited as the 'Consumer Credit Protection Act'."
      Section 101 of title I of Pub. L. 90-321 provided that: "This
    title [enacting this subchapter] may be cited as the 'Truth in
    Lending Act'."
      Section 401 of title IV of Pub. L. 90-321, as added by Pub. L.
    104-208, div. A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat.
    3009-454, provided that: "This title [enacting subchapter II-A of
    this chapter] may be cited as the 'Credit Repair Organizations
    Act'."
      Section 601 of title VI of Pub. L. 90-321, as added by Pub. L. 91-
    508, title VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1128, as amended
    by Pub. L. 108-159, title VIII, Sec. 811(a), Dec. 4, 2003, 117
    Stat. 2011, provided that: "This title [enacting subchapter III of
    this chapter] may be cited as the 'Fair Credit Reporting Act'."
      Section 709 of title VII of Pub. L. 90-321, as added by section
    1(b) of Pub. L. 94-239, Mar. 23, 1976, 90 Stat. 251, provided that:
    "This title [enacting subchapter IV of this chapter and notes set
    out under section 1691 of this title] may be cited as the 'Equal
    Credit Opportunity Act'."
      Section 801 of title VIII of Pub. L. 90-321, as added by Pub. L.
    95-109, Sept. 20, 1977, 91 Stat. 874, provided that: "This title
    [enacting subchapter V of this chapter] may be cited as the 'Fair
    Debt Collection Practices Act'."
      Section 901 of title IX of Pub. L. 90-321, as added Pub. L. 95-
    630, title XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3728, provided
    that: "This title [enacting subchapter VI of this chapter] may be
    cited as the 'Electronic Fund Transfer Act'."

                               SEVERABILITY                           
      Section 501 of Pub. L. 90-321 provided that: "If a provision
    enacted by this Act [see Short Title note above], is held invalid,
    all valid provisions that are severable from the invalid provision
    remain in effect. If a provision enacted by this Act is held
    invalid in one or more of its applications, the provision remains
    in effect in all valid applications that are severable from the
    invalid application or applications."

     ANALYSIS OF FURTHER RESTRICTIONS ON OFFERS OF CREDIT OR INSURANCE 
      Pub. L. 108-159, title II, Sec. 213(e), Dec. 4, 2003, 117 Stat.
    1979, provided that:
      "(1) In general. - The Board shall conduct a study of - 
        "(A) the ability of consumers to avoid receiving written offers
      of credit or insurance in connection with transactions not
      initiated by the consumer; and
        "(B) the potential impact that any further restrictions on
      providing consumers with such written offers of credit or
      insurance would have on consumers.
      "(2) Report. - The Board shall submit a report summarizing the
    results of the study required under paragraph (1) to the Congress
    not later than 12 months after the date of enactment of this Act
    [Dec. 4, 2003], together with such recommendations for legislative
    or administrative action as the Board may determine to be
    appropriate.
      "(3) Content of report. - The report described in paragraph (2)
    shall address the following issues:
        "(A) The current statutory or voluntary mechanisms that are
      available to a consumer to notify lenders and insurance providers
      that the consumer does not wish to receive written offers of
      credit or insurance.
        "(B) The extent to which consumers are currently utilizing
      existing statutory and voluntary mechanisms to avoid receiving
      offers of credit or insurance.
        "(C) The benefits provided to consumers as a result of
      receiving written offers of credit or insurance.
        "(D) Whether consumers incur significant costs or are otherwise
      adversely affected by the receipt of written offers of credit or
      insurance.
        "(E) Whether further restricting the ability of lenders and
      insurers to provide written offers of credit or insurance to
      consumers would affect - 
          "(i) the cost consumers pay to obtain credit or insurance;
          "(ii) the availability of credit or insurance;
          "(iii) consumers' knowledge about new or alternative products
        and services;
          "(iv) the ability of lenders or insurers to compete with one
        another; and
          "(v) the ability to offer credit or insurance products to
        consumers who have been traditionally underserved."
      [For definitions of terms used in section 213(e) of Pub. L. 108-
    159, set out above, see section 2 of Pub. L. 108-159, set out as a
    Definitions note under section 1681 of this title.]

       FEDERAL RESERVE STUDY OF HOME EQUITY LENDING AND APPROPRIATE
                            INTEREST RATE INDEX
      Pub. L. 103-325, title I, Sec. 157, Sept. 23, 1994, 108 Stat.
    2197, provided that: "During the period beginning 180 days after
    the date of enactment of this Act [Sept. 23, 1994] and ending 2
    years after that date of enactment, the Board of Governors of the
    Federal Reserve System shall conduct a study and submit to the
    Congress a report, including recommendations for any appropriate
    legislation, regarding - 
        "(1) whether a consumer engaging in an open end credit
      transaction (as defined in section 103 of the Truth in Lending
      Act [15 U.S.C. 1602]) secured by the consumer's principal
      dwelling is provided adequate protections under Federal law,
      including section 127A of the Truth in Lending Act [15 U.S.C.
      1637a]; and
        "(2) whether a more appropriate interest rate index exists for
      purposes of subparagraph (A) of section 103(aa)(1) of the Truth
      in Lending Act (as added by section 152(a) of this Act [15 U.S.C.
      1602(aa)(1)(A)]) than the yield on Treasury securities referred
      to in that subparagraph."

                      HEARINGS ON HOME EQUITY LENDING                  
      Pub. L. 103-325, title I, Sec. 158, Sept. 23, 1994, 108 Stat.
    2197, provided that:
      "(a) Hearings. - Not less than once during the 3-year period
    beginning on the date of enactment of this Act [Sept. 23, 1994],
    and regularly thereafter, the Board of Governors of the Federal
    Reserve System, in consultation with the Consumer Advisory Council
    of the Board, shall conduct a public hearing to examine the home
    equity loan market and the adequacy of existing regulatory and
    legislative provisions and the provisions of this subtitle [see
    Short Title of 1994 Amendment note above] in protecting the
    interests of consumers, and low-income consumers in particular.
      "(b) Participation. - In conducting hearings required by
    subsection (a), the Board of Governors of the Federal Reserve
    System shall solicit participation from consumers, representatives
    of consumers, lenders, and other interested parties."

      STUDY BY FEDERAL RESERVE BOARD OF GOVERNORS COVERING EFFECT OF
        CHARGE CARD TRANSACTIONS UPON CARD ISSUERS, MERCHANTS, AND
                                 CONSUMERS
      Pub. L. 97-25, title II, Sec. 202, July 27, 1981, 95 Stat. 145,
    directed Board of Governors of Federal Reserve System, not later
    than 2 years after July 27, 1981, to prepare a study and submit its
    findings to Congress on the effect of charge card transactions upon
    card issuers, merchants, and consumers.

    INFERENCE OF LEGISLATIVE INTENT IN SECTION CAPTIONS AND CATCHLINES
      Section 502 of Pub. L. 90-321 provided that: "Captions and
    catchlines are intended solely as aids to convenient reference, and
    no inference as to the legislative intent with respect to any
    provision enacted by this Act [enacting this chapter, section 891
    to 896 of Title 18, Crimes and Criminal Procedure, and provisions
    set out as notes under this section, sections 1631 and 1671 of this
    title, and section 891 of Title 18] may be drawn from them."

                            GRAMMATICAL USAGES                        
      Section 503 of Pub. L. 90-321 provided that: "In this Act
    [enacting this chapter, sections 891 to 896 of Title 18, Crimes and
    Criminal Procedure, and provisions set out as notes under sections
    1601, 1631 and 1671 of this title, and section 891 of Title 18]:
        "(1) The word 'may' is used to indicate that an action either
      is authorized or is permitted.
        "(2) The word 'shall' is used to indicate that an action is
      both authorized and required.
        "(3) The phrase 'may not' is used to indicate that an action is
      both unauthorized and forbidden.
        "(4) Rules of law are stated in the indicative mood."

-End-



-CITE-
    15 USC Sec. 1602                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1602. Definitions and rules of construction

-STATUTE-
      (a) The definitions and rules of construction set forth in this
    section are applicable for the purposes of this subchapter.
      (b) The term "Board" refers to the Board of Governors of the
    Federal Reserve System.
      (c) The term "organization" means a corporation, government or
    governmental subdivision or agency, trust, estate, partnership,
    cooperative, or association.
      (d) The term "person" means a natural person or an organization.
      (e) The term "credit" means the right granted by a creditor to a
    debtor to defer payment of debt or to incur debt and defer its
    payment.
      (f) The term "creditor" refers only to a person who both (1)
    regularly extends, whether in connection with loans, sales of
    property or services, or otherwise, consumer credit which is
    payable by agreement in more than four installments or for which
    the payment of a finance charge is or may be required, and (2) is
    the person to whom the debt arising from the consumer credit
    transaction is initially payable on the face of the evidence of
    indebtedness or, if there is no such evidence of indebtedness, by
    agreement. Notwithstanding the preceding sentence, in the case of
    an open-end credit plan involving a credit card, the card issuer
    and any person who honors the credit card and offers a discount
    which is a finance charge are creditors. For the purpose of the
    requirements imposed under part D of this subchapter and sections
    1637(a)(5), 1637(a)(6), 1637(a)(7), 1637(b)(1), 1637(b)(2),
    1637(b)(3), 1637(b)(8), and 1637(b)(10) of this title, the term
    "creditor" shall also include card issuers whether or not the
    amount due is payable by agreement in more than four installments
    or the payment of a finance charge is or may be required, and the
    Board shall, by regulation, apply these requirements to such card
    issuers, to the extent appropriate, even though the requirements
    are by their terms applicable only to creditors offering open-end
    credit plans. Any person who originates 2 or more mortgages
    referred to in subsection (aa) of this section in any 12-month
    period or any person who originates 1 or more such mortgages
    through a mortgage broker shall be considered to be a creditor for
    purposes of this subchapter.
      (g) The term "credit sale" refers to any sale in which the seller
    is a creditor. The term includes any contract in the form of a
    bailment or lease if the bailee or lessee contracts to pay as
    compensation for use a sum substantially equivalent to or in excess
    of the aggregate value of the property and services involved and it
    is agreed that the bailee or lessee will become, or for no other or
    a nominal consideration has the option to become, the owner of the
    property upon full compliance with his obligations under the
    contract.
      (h) The adjective "consumer", used with reference to a credit
    transaction, characterizes the transaction as one in which the
    party to whom credit is offered or extended is a natural person,
    and the money, property, or services which are the subject of the
    transaction are primarily for personal, family, or household
    purposes.
      (i) The term "open end credit plan" means a plan under which the
    creditor reasonably contemplates repeated transactions, which
    prescribes the terms of such transactions, and which provides for a
    finance charge which may be computed from time to time on the
    outstanding unpaid balance. A credit plan which is an open end
    credit plan within the meaning of the preceding sentence is an open
    end credit plan even if credit information is verified from time to
    time.
      (j) The term "adequate notice," as used in section 1643 of this
    title, means a printed notice to a cardholder which sets forth the
    pertinent facts clearly and conspicuously so that a person against
    whom it is to operate could reasonably be expected to have noticed
    it and understood its meaning. Such notice may be given to a
    cardholder by printing the notice on any credit card, or on each
    periodic statement of account, issued to the cardholder, or by any
    other means reasonably assuring the receipt thereof by the
    cardholder.
      (k) The term "credit card" means any card, plate, coupon book or
    other credit device existing for the purpose of obtaining money,
    property, labor, or services on credit.
      (l) The term "accepted credit card" means any credit card which
    the cardholder has requested and received or has signed or has
    used, or authorized another to use, for the purpose of obtaining
    money, property, labor, or services on credit.
      (m) The term "cardholder" means any person to whom a credit card
    is issued or any person who has agreed with the card issuer to pay
    obligations arising from the issuance of a credit card to another
    person.
      (n) The term "card issuer" means any person who issues a credit
    card, or the agent of such person with respect to such card.
      (o) The term "unauthorized use," as used in section 1643 of this
    title, means a use of a credit card by a person other than the
    cardholder who does not have actual, implied, or apparent authority
    for such use and from which the cardholder receives no benefit.
      (p) The term "discount" as used in section 1666f of this title
    means a reduction made from the regular price. The term "discount"
    as used in section 1666f of this title shall not mean a surcharge.
      (q) The term "surcharge" as used in this section and section
    1666f of this title means any means of increasing the regular price
    to a cardholder which is not imposed upon customers paying by cash,
    check, or similar means."
      (r) The term "State" refers to any State, the Commonwealth of
    Puerto Rico, the District of Columbia, and any territory or
    possession of the United States.
      (s) The term "agricultural purposes" includes the production,
    harvest, exhibition, marketing, transportation, processing, or
    manufacture of agricultural products by a natural person who
    cultivates, plants, propagates, or nurtures those agricultural
    products, including but not limited to the acquisition of farmland,
    real property with a farm residence, and personal property and
    services used primarily in farming.
      (t) The term "agricultural products" includes agricultural,
    horticultural, viticultural, and dairy products, livestock,
    wildlife, poultry, bees, forest products, fish and shellfish, and
    any products thereof, including processed and manufactured
    products, and any and all products raised or produced on farms and
    any processed or manufactured products thereof.
      (u) The term "material disclosures" means the disclosure, as
    required by this subchapter, of the annual percentage rate, the
    method of determining the finance charge and the balance upon which
    a finance charge will be imposed, the amount of the finance charge,
    the amount to be financed, the total of payments, the number and
    amount of payments, the due dates or periods of payments scheduled
    to repay the indebtedness, and the disclosures required by section
    1639(a) of this title.
      (v) The term "dwelling" means a residential structure or mobile
    home which contains one to four family housing units, or individual
    units of condominiums or cooperatives.
      (w) The term "residential mortgage transaction" means a
    transaction in which a mortgage, deed of trust, purchase money
    security interest arising under an installment sales contract, or
    equivalent consensual security interest is created or retained
    against the consumer's dwelling to finance the acquisition or
    initial construction of such dwelling.
      (x) As used in this section and section 1666f of this title, the
    term "regular price" means the tag or posted price charged for the
    property or service if a single price is tagged or posted, or the
    price charged for the property or service when payment is made by
    use of an open-end credit plan or a credit card if either (1) no
    price is tagged or posted, or (2) two prices are tagged or posted,
    one of which is charged when payment is made by use of an open-end
    credit plan or a credit card and the other when payment is made by
    use of cash, check, or similar means. For purposes of this
    definition, payment by check, draft, or other negotiable instrument
    which may result in the debiting of an open-end credit plan or a
    credit cardholder's open-end account shall not be considered
    payment made by use of the plan or the account.
      (y) Any reference to any requirement imposed under this
    subchapter or any provision thereof includes reference to the
    regulations of the Board under this subchapter or the provision
    thereof in question.
      (z) The disclosure of an amount or percentage which is greater
    than the amount or percentage required to be disclosed under this
    subchapter does not in itself constitute a violation of this
    subchapter.
      (aa)(1) A mortgage referred to in this subsection means a
    consumer credit transaction that is secured by the consumer's
    principal dwelling, other than a residential mortgage transaction,
    a reverse mortgage transaction, or a transaction under an open end
    credit plan, if - 
        (A) the annual percentage rate at consummation of the
      transaction will exceed by more than 10 percentage points the
      yield on Treasury securities having comparable periods of
      maturity on the fifteenth day of the month immediately preceding
      the month in which the application for the extension of credit is
      received by the creditor; or
        (B) the total points and fees payable by the consumer at or
      before closing will exceed the greater of - 
          (i) 8 percent of the total loan amount; or
          (ii) $400.

      (2)(A) After the 2-year period beginning on the effective date of
    the regulations promulgated under section 155 of the Riegle
    Community Development and Regulatory Improvement Act of 1994, and
    no more frequently than biennially after the first increase or
    decrease under this subparagraph, the Board may by regulation
    increase or decrease the number of percentage points specified in
    paragraph (1)(A), if the Board determines that the increase or
    decrease is - 
        (i) consistent with the consumer protections against abusive
      lending provided by the amendments made by subtitle B of title I
      of the Riegle Community Development and Regulatory Improvement
      Act of 1994; and
        (ii) warranted by the need for credit.

      (B) An increase or decrease under subparagraph (A) may not result
    in the number of percentage points referred to in subparagraph (A)
    being - 
        (i) less that 8 percentage points; or
        (ii) greater than 12 percentage points.

      (C) In determining whether to increase or decrease the number of
    percentage points referred to in subparagraph (A), the Board shall
    consult with representatives of consumers, including low-income
    consumers, and lenders.
      (3) The amount specified in paragraph (1)(B)(ii) shall be
    adjusted annually on January 1 by the annual percentage change in
    the Consumer Price Index, as reported on June 1 of the year
    preceding such adjustment.
      (4) For purposes of paragraph (1)(B), points and fees shall
    include - 
        (A) all items included in the finance charge, except interest
      or the time-price differential;
        (B) all compensation paid to mortgage brokers;
        (C) each of the charges listed in section 1605(e) of this title
      (except an escrow for future payment of taxes), unless - 
          (i) the charge is reasonable;
          (ii) the creditor receives no direct or indirect
        compensation; and
          (iii) the charge is paid to a third party unaffiliated with
        the creditor; and

        (D) such other charges as the Board determines to be
      appropriate.

      (5) This subsection shall not be construed to limit the rate of
    interest or the finance charge that a person may charge a consumer
    for any extension of credit.
      (bb) The term "reverse mortgage transaction" means a nonrecourse
    transaction in which a mortgage, deed of trust, or equivalent
    consensual security interest is created against the consumer's
    principal dwelling - 
        (1) securing one or more advances; and
        (2) with respect to which the payment of any principal,
      interest, and shared appreciation or equity is due and payable
      (other than in the case of default) only after - 
          (A) the transfer of the dwelling;
          (B) the consumer ceases to occupy the dwelling as a principal
        dwelling; or
          (C) the death of the consumer.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 103, May 29, 1968, 82 Stat. 147;
    Pub. L. 91-508, title V, Sec. 501, Oct. 26, 1970, 84 Stat. 1126;
    Pub. L. 93-495, title III, Sec. 303, Oct. 28, 1974, 88 Stat. 1511;
    Pub. L. 94-222, Sec. 3(a), Feb. 27, 1976, 90 Stat. 197; Pub. L. 96-
    221, title VI, Secs. 602, 603(a), (b), 604, 612(a)(2), (b), Mar.
    31, 1980, 94 Stat. 168, 169, 175, 176; Pub. L. 97-25, title I, Sec.
    102, July 27, 1981, 95 Stat. 144; Pub. L. 97-320, title VII, Sec.
    702(a), Oct. 15, 1982, 96 Stat. 1538; Pub. L. 103-325, title I,
    Secs. 152(a)-(c), 154(a), Sept. 23, 1994, 108 Stat. 2190, 2191,
    2196.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Riegle Community Development and Regulatory Improvement Act
    of 1994, referred to in subsec. (aa)(2)(A)(i), is Pub. L. 103-325,
    Sept. 23, 1994, 108 Stat. 2160. Section 155 of the Act is set out
    below. For classification of subtitle B of title I of the Act,
    known as the "Home Ownership and Equity Protection Act of 1994",
    see Short Title of 1994 Amendment note set out under section 1601
    of this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 4701 of Title 12, Banks
    and Banking, and Tables.


-MISC1-
                                AMENDMENTS                            
      1994 - Subsec. (f). Pub. L. 103-325, Sec. 152(c), inserted at end
    "Any person who originates 2 or more mortgages referred to in
    subsection (aa) of this section in any 12-month period or any
    person who originates 1 or more such mortgages through a mortgage
    broker shall be considered to be a creditor for purposes of this
    subchapter."
      Subsec. (u). Pub. L. 103-325, Sec. 152(b), substituted "the due
    dates" for "and the due dates" and inserted before period at end ",
    and the disclosures required by section 1639(a) of this title".
      Subsec. (aa). Pub. L. 103-325, Sec. 152(a), added subsec. (aa).
      Subsec. (bb). Pub. L. 103-325, Sec. 154(a), added subsec. (bb).
      1982 - Subsec. (f). Pub. L. 97-320 struck out provision that a
    person who regularly arranged for the extension of consumer credit
    payable in more than four installments or for which the payment of
    a finance charge was or might have been required from persons not
    creditors was a creditor, and provision that this subchapter
    applied to any creditor, irrespective of his or its status as a
    natural person or any type of organization, who was a card issuer.
      1981 - Subsecs. (x) to (z). Pub. L. 97-25 added subsec. (z) and,
    effective Apr. 10, 1982, redesignated subsecs. (x), (y), and (z) as
    (y), (z), and (x), respectively.
      1980 - Subsec. (f). Pub. L. 96-221, Sec. 602(a), substituted
    provisions defining term "creditor" as referring only to a person
    who both regularly extends consumer credit, subject to specified
    conditions, and is the person to whom the debt arising is initially
    payable on the face of the indebtedness or by agreement, and
    notwithstanding such provisions, also refers to a person regularly
    arranging for the extension of consumer credit, and a card issuer
    and any person honoring the credit card, subject to specified
    conditions, for provisions defining term "creditor" as referring
    only to creditors who regularly extend, or arrange for the
    extension of credit payable in more than four installments or where
    a finance charge is or may be required, and substituted "(a)(5)"
    for "(a)(6)", "(a)(6)" for "(a)(7)", "(a)(7)" for "(a)(8)",
    "(b)(8)" for "(b)(9)", and "(b)(10)" for "(b)(11)".
      Subsec. (g). Pub. L. 96-221, Sec. 602(b), substituted "in which
    the seller is a creditor" for "with respect to which credit is
    extended or arranged by the seller".
      Subsec. (h). Pub. L. 96-221, Sec. 603(a), struck out
    applicability to agricultural purposes.
      Subsec. (i). Pub. L. 96-221, Sec. 604, inserted provisions
    respecting the reasonable contemplations of the creditor, and
    verification of credit information from time to time.
      Subsecs. (s), (t). Pub. L. 96-221, Sec. 603(b), added subsecs.
    (s) and (t). Former subsecs. (s) and (t) redesignated (x) and (y),
    respectively.
      Subsec. (u). Pub. L. 96-221, Sec. 612(a)(2), added subsec. (u).
      Subsecs. (v), (w). Pub. L. 96-221, Sec. 612(b), added subsecs.
    (v) and (w).
      Subsecs. (x), (y). Pub. L. 96-221, Sec. 603(b), redesignated
    former subsecs. (s) and (t) as (x) and (y), respectively.
      1976 - Subsecs. (p) to (t). Pub. L. 94-222 added subsecs. (p) and
    (q) and redesignated former subsecs. (p) to (r) as (r) to (t),
    respectively.
      1974 - Subsec. (f). Pub. L. 93-495 inserted provision requiring
    the credit to be payable by agreement in more than four
    installments and defining term "creditor" for the purposes of the
    requirements imposed under the enumerated sections of this chapter.
      1970 - Subsecs. (j) to (r). Pub. L. 91-508 added subsecs. (j) to
    (o) and redesignated former subsecs. (j) to (l) as (p) to (r),
    respectively.

                     EFFECTIVE DATE OF 1982 AMENDMENT                 
      Section 702(b) of Pub. L. 97-320 provided that: "The amendment
    made by subsection (a) [amending this section] shall take effect on
    the effective date of title VI of the Depository Institutions
    Deregulation and Monetary Control Act of 1980 [two years and six
    months after Mar. 31, 1980, see Effective Date of 1980 Amendment
    note below]."

                     EFFECTIVE DATE OF 1981 AMENDMENT                 
      Section 102(b) of Pub. L. 97-25 provided that the amendment made
    by that section is effective Apr. 10, 1982.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Section 625 of title VI of Pub. L. 96-221, as amended by Pub. L.
    97-25, title III, Sec. 301, July 27, 1981, 95 Stat. 145; Pub. L. 97-
    110, title III, Sec. 301, Dec. 26, 1981, 95 Stat. 1515, provided
    that:
      "(a) Except as provided in section 608(b) [set out as an
    Effective Date of 1980 Amendment note under section 1607 of this
    title], the amendments made by this title [enacting section 1646 of
    this title, amending sections 57a, 1602 to 1606, 1610, 1612, 1613,
    1631, 1632, 1635, 1637, 1638, 1640, 1641, 1643, 1663, 1664, 1665a,
    1666, 1666d, 1667d, and 1691f of this title, repealing sections
    1614, 1636, and 1639 of this title, and enacting provisions set out
    as a note under section 1601 of this title] shall take effect upon
    the expiration of two years and six months after the date of
    enactment of this title [Mar. 31, 1980].
      "(b) All regulations, forms, and clauses required to be
    prescribed under the amendments made by this title shall be
    promulgated at least one year prior to such effective date.
      "(c) Notwithstanding subsections (a) and (b), any creditor may
    comply with the amendments made by this title, in accordance with
    the regulations, forms, and clauses prescribed by the Board, prior
    to such effective date. Any creditor who elects to comply with such
    amendments and any assignee of such a creditor shall be subject to
    the provisions of sections 130 and 131 of the Truth in Lending Act,
    as amended by sections 615 and 616, respectively, of this title
    [sections 1640 and 1641 of this title]."

                     EFFECTIVE DATE OF 1974 AMENDMENT                 
      For effective date of amendment by Pub. L. 93-495, see section
    308 of Pub. L. 93-495, set out as an Effective Date note under
    section 1666 of this title.

                                REGULATIONS                            
      Section 155 of title I of Pub. L. 103-325 provided that: "Not
    later than 180 days after the date of enactment of this Act [Sept.
    23, 1994], the Board of Governors of the Federal Reserve System
    shall issue such regulations as may be necessary to carry out this
    subtitle [subtitle B (Secs. 151-158) of title I of Pub. L. 103-325,
    see Short Title of 1994 Amendment note set out under section 1601
    of this title], and such regulations shall become effective on the
    date on which disclosure regulations are required to become
    effective under section 105(d) of the Truth in Lending Act [15
    U.S.C. Sec. 1604(d)]."

    APPLICABILITY OF 1994 AMENDMENTS AND REGULATIONS TO SUBSECTION (AA)
                                 MORTGAGES
      Section 156 of title I of Pub. L. 103-325 provided that: "This
    subtitle [subtitle B (Secs. 151-158) of title I of Pub. L. 103-325,
    see Short Title of 1994 Amendment note set out under section 1601
    of this title], and the amendments made by this subtitle, shall
    apply to every mortgage referred to in section 103(aa) of the Truth
    in Lending Act [15 U.S.C. 1602(aa)] (as added by section 152(a) of
    this Act) consummated on or after the date on which regulations
    issued under section 155 [set out above] become effective."

-End-



-CITE-
    15 USC Sec. 1603                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1603. Exempted transactions

-STATUTE-
      This subchapter does not apply to the following:
        (1) Credit transactions involving extensions of credit
      primarily for business, commercial, or agricultural purposes, or
      to government or governmental agencies or instrumentalities, or
      to organizations.
        (2) Transactions in securities or commodities accounts by a
      broker-dealer registered with the Securities and Exchange
      Commission.
        (3) Credit transactions, other than those in which a security
      interest is or will be acquired in real property, or in personal
      property used or expected to be used as the principal dwelling of
      the consumer, in which the total amount financed exceeds $25,000.
        (4) Transactions under public utility tariffs, if the Board
      determines that a State regulatory body regulates the charges for
      the public utility services involved, the charges for delayed
      payment, and any discount allowed for early payment.
        (5) Transactions for which the Board, by rule, determines that
      coverage under this subchapter is not necessary to carry out the
      purposes of this subchapter.
        (6) Repealed. Pub. L. 96-221, title VI, Sec. 603(c)(3), Mar.
      31, 1980, 94 Stat. 169.
        (7) Loans made, insured, or guaranteed pursuant to a program
      authorized by title IV of the Higher Education Act of 1965 [20
      U.S.C. 1070 et seq., 42 U.S.C. 2751 et seq.].

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 104, May 29, 1968, 82 Stat. 147;
    Pub. L. 93-495, title IV, Sec. 402, Oct. 28, 1974, 88 Stat. 1517;
    Pub. L. 96-221, title VI, Sec. 603(c), Mar. 31, 1980, 94 Stat. 169;
    Pub. L. 97-320, title VII, Sec. 701(a), Oct. 15, 1982, 96 Stat.
    1538; Pub. L. 104-208, div. A, title II, Sec. 2102(a), Sept. 30,
    1996, 110 Stat. 3009-398.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Higher Education Act of 1965, referred to in par. (7), is
    Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as amended. Title IV
    of the Higher Education Act of 1965 is classified generally to
    subchapter IV (Sec. 1070 et seq.) of chapter 28 of Title 20,
    Education, and part C (Sec. 2751 et seq.) of subchapter I of
    chapter 34 of Title 42, The Public Health and Welfare. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of Title 20 and Tables.


-MISC1-
                                AMENDMENTS                            
      1996 - Pars. (5) to (7). Pub. L. 104-208 added par. (5) and
    redesignated former pars. (5) and (6) as (6) and (7), respectively.
      1982 - Par. (6). Pub. L. 97-320 added par. (6).
      1980 - Par. (1). Pub. L. 96-221, Sec. 603(c)(1), inserted
    provision relating to applicability to agricultural purposes.
      Par. (3). Pub. L. 96-221, Sec. 603(c)(2), substituted provision
    excepting security interest in real property, or in personal
    property used as the consumer's principal dwelling, for provisions
    excepting real property transactions.
      Par. (5). Pub. L. 96-221, Sec. 603(c)(3), struck out par. (5)
    which related to credit transactions primarily for agricultural
    purposes where the amount financed exceeds $25,000.
      1974 - Par. (5). Pub. L. 93-495 added par. (5).

                     EFFECTIVE DATE OF 1982 AMENDMENT                 
      Section 701(c) of Pub. L. 97-320, as amended by Pub. L. 97-457,
    Sec. 31, Jan. 12, 1983, 96 Stat. 2511, provided that: "The
    amendment made by subsection (a) [amending this section] and
    subsection (b) [enacting section 1099 of Title 20, Education] shall
    be effective with respect to loans made prior to, on, and after the
    date of the enactment of this Act [Oct. 15, 1982]."

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

                     EFFECTIVE DATE OF 1974 AMENDMENT                 
      Amendment by Pub. L. 93-495 effective Oct. 28, 1974, see section
    416 of Pub. L. 93-495, set out as an Effective Date note under
    section 1665a of this title.

              EXCEPTIONS IN AREAS WHERE MAJOR DISASTER EXISTS          
      Board of Governors of Federal Reserve System authorized to make
    exceptions to requirements of this subchapter for transactions
    within an area in which the President has determined that a major
    disaster exists, if Board determines that exception can reasonably
    be expected to alleviate hardships to the public that outweigh
    possible adverse effects, see section 2 of Pub. L. 103-76, set out
    as a note under section 4008 of Title 12, Banks and Banking.

-End-



-CITE-
    15 USC Sec. 1604                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1604. Disclosure guidelines

-STATUTE-
    (a) Promulgation, contents, etc., of regulations
      The Board shall prescribe regulations to carry out the purposes
    of this subchapter. Except in the case of a mortgage referred to in
    section 1602(aa) of this title, these regulations may contain such
    classifications, differentiations, or other provisions, and may
    provide for such adjustments and exceptions for any class of
    transactions, as in the judgment of the Board are necessary or
    proper to effectuate the purposes of this subchapter, to prevent
    circumvention or evasion thereof, or to facilitate compliance
    therewith.
    (b) Model disclosure forms and clauses; publication, criteria,
      compliance, etc.
      The Board shall publish model disclosure forms and clauses for
    common transactions to facilitate compliance with the disclosure
    requirements of this subchapter and to aid the borrower or lessee
    in understanding the transaction by utilizing readily
    understandable language to simplify the technical nature of the
    disclosures. In devising such forms, the Board shall consider the
    use by creditors or lessors of data processing or similar automated
    equipment. Nothing in this subchapter may be construed to require a
    creditor or lessor to use any such model form or clause prescribed
    by the Board under this section. A creditor or lessor shall be
    deemed to be in compliance with the disclosure provisions of this
    subchapter with respect to other than numerical disclosures if the
    creditor or lessor (1) uses any appropriate model form or clause as
    published by the Board, or (2) uses any such model form or clause
    and changes it by (A) deleting any information which is not
    required by this subchapter, or (B) rearranging the format, if in
    making such deletion or rearranging the format, the creditor or
    lessor does not affect the substance, clarity, or meaningful
    sequence of the disclosure.
    (c) Procedures applicable for adoption of model forms and clauses
      Model disclosure forms and clauses shall be adopted by the Board
    after notice duly given in the Federal Register and an opportunity
    for public comment in accordance with section 553 of title 5.
    (d) Effective dates of regulations containing new disclosure
      requirements
      Any regulation of the Board, or any amendment or interpretation
    thereof, requiring any disclosure which differs from the
    disclosures previously required by this part, part D, or part E of
    this subchapter or by any regulation of the Board promulgated
    thereunder shall have an effective date of that October 1 which
    follows by at least six months the date of promulgation, except
    that the Board may at its discretion take interim action by
    regulation, amendment, or interpretation to lengthen the period of
    time permitted for creditors or lessors to adjust their forms to
    accommodate new requirements or shorten the length of time for
    creditors or lessors to make such adjustments when it makes a
    specific finding that such action is necessary to comply with the
    findings of a court or to prevent unfair or deceptive disclosure
    practices. Notwithstanding the previous sentence, any creditor or
    lessor may comply with any such newly promulgated disclosure
    requirements prior to the effective date of the requirements.
    (f) (!1) Exemption authority

      (1) In general
        The Board may exempt, by regulation, from all or part of this
      subchapter any class of transactions, other than transactions
      involving any mortgage described in section 1602(aa) of this
      title, for which, in the determination of the Board, coverage
      under all or part of this subchapter does not provide a
      meaningful benefit to consumers in the form of useful information
      or protection.
      (2) Factors for consideration
        In determining which classes of transactions to exempt in whole
      or in part under paragraph (1), the Board shall consider the
      following factors and publish its rationale at the time a
      proposed exemption is published for comment:
          (A) The amount of the loan and whether the disclosures, right
        of rescission, and other provisions provide a benefit to the
        consumers who are parties to such transactions, as determined
        by the Board.
          (B) The extent to which the requirements of this subchapter
        complicate, hinder, or make more expensive the credit process
        for the class of transactions.
          (C) The status of the borrower, including - 
            (i) any related financial arrangements of the borrower, as
          determined by the Board;
            (ii) the financial sophistication of the borrower relative
          to the type of transaction; and
            (iii) the importance to the borrower of the credit, related
          supporting property, and coverage under this subchapter, as
          determined by the Board;

          (D) whether the loan is secured by the principal residence of
        the consumer; and
          (E) whether the goal of consumer protection would be
        undermined by such an exemption.
    (g) Waiver for certain borrowers
      (1) In general
        The Board, by regulation, may exempt from the requirements of
      this subchapter certain credit transactions if - 
          (A) the transaction involves a consumer - 
            (i) with an annual earned income of more than $200,000; or
            (ii) having net assets in excess of $1,000,000 at the time
          of the transaction; and

          (B) a waiver that is handwritten, signed, and dated by the
        consumer is first obtained from the consumer.
      (2) Adjustments by the Board
        The Board, at its discretion, may adjust the annual earned
      income and net asset requirements of paragraph (1) for inflation.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 105, May 29, 1968, 82 Stat. 148;
    Pub. L. 96-221, title VI, Sec. 605, Mar. 31, 1980, 94 Stat. 170;
    Pub. L. 103-325, title I, Sec. 152(e)(2)(A), Sept. 23, 1994, 108
    Stat. 2194; Pub. L. 104-208, div. A, title II, Secs. 2102(b), 2104,
    Sept. 30, 1996, 110 Stat. 3009-399, 3009-401.)


-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (f). Pub. L. 104-208, Sec. 2102(b), added subsec.
    (f).
      Subsec. (g). Pub. L. 104-208, Sec. 2104, added subsec. (g).
      1994 - Subsec. (a). Pub. L. 103-325 substituted "Except in the
    case of a mortgage referred to in section 1602(aa) of this title,
    these" for "These" in second sentence.
      1980 - Pub. L. 96-221 designated existing provisions as subsec.
    (a) and added subsecs. (b) to (d).

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

-FOOTNOTE-
    (!1) So in original. No subsec. (e) has been enacted.


-End-



-CITE-
    15 USC Sec. 1605                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1605. Determination of finance charge

-STATUTE-
    (a) "Finance charge" defined
      Except as otherwise provided in this section, the amount of the
    finance charge in connection with any consumer credit transaction
    shall be determined as the sum of all charges, payable directly or
    indirectly by the person to whom the credit is extended, and
    imposed directly or indirectly by the creditor as an incident to
    the extension of credit. The finance charge does not include
    charges of a type payable in a comparable cash transaction. The
    finance charge shall not include fees and amounts imposed by third
    party closing agents (including settlement agents, attorneys, and
    escrow and title companies) if the creditor does not require the
    imposition of the charges or the services provided and does not
    retain the charges. Examples of charges which are included in the
    finance charge include any of the following types of charges which
    are applicable:
        (1) Interest, time price differential, and any amount payable
      under a point, discount, or other system or additional charges.
        (2) Service or carrying charge.
        (3) Loan fee, finder's fee, or similar charge.
        (4) Fee for an investigation or credit report.
        (5) Premium or other charge for any guarantee or insurance
      protecting the creditor against the obligor's default or other
      credit loss.
        (6) Borrower-paid mortgage broker fees, including fees paid
      directly to the broker or the lender (for delivery to the broker)
      whether such fees are paid in cash or financed.
    (b) Life, accident, or health insurance premiums included in
      finance charge
      Charges or premiums for credit life, accident, or health
    insurance written in connection with any consumer credit
    transaction shall be included in the finance charges unless
        (1) the coverage of the debtor by the insurance is not a factor
      in the approval by the creditor of the extension of credit, and
      this fact is clearly disclosed in writing to the person applying
      for or obtaining the extension of credit; and
        (2) in order to obtain the insurance in connection with the
      extension of credit, the person to whom the credit is extended
      must give specific affirmative written indication of his desire
      to do so after written disclosure to him of the cost thereof.
    (c) Property damage and liability insurance premiums included in
      finance charge
      Charges or premiums for insurance, written in connection with any
    consumer credit transaction, against loss of or damage to property
    or against liability arising out of the ownership or use of
    property, shall be included in the finance charge unless a clear
    and specific statement in writing is furnished by the creditor to
    the person to whom the credit is extended, setting forth the cost
    of the insurance if obtained from or through the creditor, and
    stating that the person to whom the credit is extended may choose
    the person through which the insurance is to be obtained.
    (d) Items exempted from computation of finance charge in all credit
      transactions
      If any of the following items is itemized and disclosed in
    accordance with the regulations of the Board in connection with any
    transaction, then the creditor need not include that item in the
    computation of the finance charge with respect to that transaction:
        (1) Fees and charges prescribed by law which actually are or
      will be paid to public officials for determining the existence of
      or for perfecting or releasing or satisfying any security related
      to the credit transaction.
        (2) The premium payable for any insurance in lieu of perfecting
      any security interest otherwise required by the creditor in
      connection with the transaction, if the premium does not exceed
      the fees and charges described in paragraph (1) which would
      otherwise be payable.
        (3) Any tax levied on security instruments or on documents
      evidencing indebtedness if the payment of such taxes is a
      precondition for recording the instrument securing the evidence
      of indebtedness.
    (e) Items exempted from computation of finance charge in extensions
      of credit secured by an interest in real property
      The following items, when charged in connection with any
    extension of credit secured by an interest in real property, shall
    not be included in the computation of the finance charge with
    respect to that transaction:
        (1) Fees or premiums for title examination, title insurance, or
      similar purposes.
        (2) Fees for preparation of loan-related documents.
        (3) Escrows for future payments of taxes and insurance.
        (4) Fees for notarizing deeds and other documents.
        (5) Appraisal fees, including fees related to any pest
      infestation or flood hazard inspections conducted prior to
      closing.
        (6) Credit reports.
    (f) Tolerances for accuracy
      In connection with credit transactions not under an open end
    credit plan that are secured by real property or a dwelling, the
    disclosure of the finance charge and other disclosures affected by
    any finance charge - 
        (1) shall be treated as being accurate for purposes of this
      subchapter if the amount disclosed as the finance charge - 
          (A) does not vary from the actual finance charge by more than
        $100; or
          (B) is greater than the amount required to be disclosed under
        this subchapter; and

        (2) shall be treated as being accurate for purposes of section
      1635 of this title if - 
          (A) except as provided in subparagraph (B), the amount
        disclosed as the finance charge does not vary from the actual
        finance charge by more than an amount equal to one-half of one
        percent of the total amount of credit extended; or
          (B) in the case of a transaction, other than a mortgage
        referred to in section 1602(aa) of this title, which - 
            (i) is a refinancing of the principal balance then due and
          any accrued and unpaid finance charges of a residential
          mortgage transaction as defined in section 1602(w) of this
          title, or is any subsequent refinancing of such a
          transaction; and
            (ii) does not provide any new consolidation or new advance;

        if the amount disclosed as the finance charge does not vary
        from the actual finance charge by more than an amount equal to
        one percent of the total amount of credit extended.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 106, May 29, 1968, 82 Stat. 148;
    Pub. L. 96-221, title VI Sec. 606, Mar. 31, 1980, 94 Stat. 170;
    Pub. L. 104-29, Secs. 2(a), (b)(1), (c)-(e), 3(a), Sept. 30, 1995,
    109 Stat. 271, 272.)


-MISC1-
                                AMENDMENTS                            
      1995 - Subsec. (a). Pub. L. 104-29, Sec. 2(a), in introductory
    provisions inserted after second sentence "The finance charge shall
    not include fees and amounts imposed by third party closing agents
    (including settlement agents, attorneys, and escrow and title
    companies) if the creditor does not require the imposition of the
    charges or the services provided and does not retain the charges."
      Subsec. (a)(6). Pub. L. 104-29, Sec. 2(b)(1), added par. (6).
      Subsec. (d)(3). Pub. L. 104-29, Sec. 2(c), added par. (3).
      Subsec. (e)(2). Pub. L. 104-29, Sec. 2(d), amended par. (2)
    generally, substituting "loan-related" for "a deed, settlement
    statement, or other".
      Subsec. (e)(5). Pub. L. 104-29, Sec. 2(e), inserted before period
    ", including fees related to any pest infestation or flood hazard
    inspections conducted prior to closing".
      Subsec. (f). Pub. L. 104-29, Sec. 3(a), added subsec. (f).
      1980 - Subsec. (a). Pub. L. 96-221, Sec. 606(a), inserted
    provisions excluding charges of a type payable in comparable cash
    transactions and indicated that pars. (1) to (5) are examples of
    charges.
      Subsec. (d). Pub. L. 96-221, Sec. 606(b), struck out pars. (3)
    and (4) setting forth applicability to taxes and any other type of
    charge, respectively.

                     EFFECTIVE DATE OF 1995 AMENDMENT                 
      Section 2(b)(2) of Pub. L. 104-29 provided that: "The amendment
    made by paragraph (1) [amending this section] shall take effect on
    the earlier of - 
        "(A) 60 days after the date on which the Board of Governors of
      the Federal Reserve System issues final regulations under
      paragraph (3) [set out below]; or
        "(B) the date that is 12 months after the date of the enactment
      of this Act [Sept. 30, 1995]."

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

                                REGULATIONS                            
      Section 2(b)(3) of Pub. L. 104-29 provided that: "The Board of
    Governors of the Federal Reserve System shall promulgate
    regulations implementing the amendment made by paragraph (1)
    [amending this section] by no later than 6 months after the date of
    the enactment of this Act [Sept. 30, 1995]."

           ENSURING THAT FINANCE CHARGES REFLECT COST OF CREDIT       
      Section 2(f) of Pub. L. 104-29 provided that:
      "(1) Report. - 
        "(A) In general. - Not later than 6 months after the date of
      the enactment of this Act [Sept. 30, 1995], the Board of
      Governors of the Federal Reserve System shall submit to the
      Congress a report containing recommendations on any regulatory or
      statutory changes necessary - 
          "(i) to ensure that finance charges imposed in connection
        with consumer credit transactions more accurately reflect the
        cost of providing credit; and
          "(ii) to address abusive refinancing practices engaged in for
        the purpose of avoiding rescission.
        "(B) Report requirements. - In preparing the report under this
      paragraph, the Board shall - 
          "(i) consider the extent to which it is feasible to include
        in finance charges all charges payable directly or indirectly
        by the consumer to whom credit is extended, and imposed
        directly or indirectly by the creditor as an incident to the
        extension of credit (especially those charges excluded from
        finance charges under section 106 of the Truth in Lending Act
        [15 U.S.C. 1605] as of the date of the enactment of this Act),
        excepting only those charges which are payable in a comparable
        cash transaction; and
          "(ii) consult with and consider the views of affected
        industries and consumer groups.
      "(2) Regulations. - The Board of Governors of the Federal Reserve
    System shall prescribe any appropriate regulation in order to
    effect any change included in the report under paragraph (1), and
    shall publish the regulation in the Federal Register before the end
    of the 1-year period beginning on the date of enactment of this
    Act."

-End-



-CITE-
    15 USC Sec. 1606                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1606. Determination of annual percentage rate

-STATUTE-
    (a) "Annual percentage rate" defined
      The annual percentage rate applicable to any extension of
    consumer credit shall be determined, in accordance with the
    regulations of the Board,
        (1) in the case of any extension of credit other than under an
      open end credit plan, as
          (A) that nominal annual percentage rate which will yield a
        sum equal to the amount of the finance charge when it is
        applied to the unpaid balances of the amount financed,
        calculated according to the actuarial method of allocating
        payments made on a debt between the amount financed and the
        amount of the finance charge, pursuant to which a payment is
        applied first to the accumulated finance charge and the balance
        is applied to the unpaid amount financed; or
          (B) the rate determined by any method prescribed by the Board
        as a method which materially simplifies computation while
        retaining reasonable accuracy as compared with the rate
        determined under subparagraph (A).

        (2) in the case of any extension of credit under an open end
      credit plan, as the quotient (expressed as a percentage) of the
      total finance charge for the period to which it relates divided
      by the amount upon which the finance charge for that period is
      based, multiplied by the number of such periods in a year.
    (b) Computation of rate of finance charges for balances within a
      specified range
      Where a creditor imposes the same finance charge for balances
    within a specified range, the annual percentage rate shall be
    computed on the median balance within the range, except that if the
    Board determines that a rate so computed would not be meaningful,
    or would be materially misleading, the annual percentage rate shall
    be computed on such other basis as the Board may be regulation
    require.
    (c) Allowable tolerances for purposes of compliance with disclosure
      requirements
      The disclosure of an annual percentage rate is accurate for the
    purpose of this subchapter if the rate disclosed is within a
    tolerance not greater than one-eighth of 1 per centum more or less
    than the actual rate or rounded to the nearest one-fourth of 1 per
    centum. The Board may allow a greater tolerance to simplify
    compliance where irregular payments are involved.
    (d) Use of rate tables or charts having allowable variance from
      determined rates
      The Board may authorize the use of rate tables or charts which
    may provide for the disclosure of annual percentage rates which
    vary from the rate determined in accordance with subsection
    (a)(1)(A) of this section by not more than such tolerances as the
    Board may allow. The Board may not allow a tolerance greater than 8
    per centum of that rate except to simplify compliance where
    irregular payments are involved.
    (e) Authorization of tolerances in determining annual percentage
      rates
      In the case of creditors determining the annual percentage rate
    in a manner other than as described in subsection (d) of this
    section, the Board may authorize other reasonable tolerances.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 107, May 29, 1968, 82 Stat. 149;
    Pub. L. 96-221, title VI, Sec. 607, Mar. 31, 1980, 94 Stat. 170.)


-MISC1-
                                AMENDMENTS                            
      1980 - Subsec. (c). Pub. L. 96-221, Sec. 607(a), substituted
    provisions relating to allowable tolerances for purposes of
    compliance with disclosure requirements, for provisions relating to
    rounding off of annual percentage rates which are converted from
    single add-on or other rates.
      Subsec. (e). Pub. L. 96-221, Sec. 607(b), struck out reference to
    subsection (c) of this section.
      Subsec. (f). Pub. L. 96-221, Sec. 607(c), struck out subsec. (f)
    setting forth requirements for form of expressing percentage rates
    prior to Jan. 1, 1971.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

-End-



-CITE-
    15 USC Sec. 1607                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1607. Administrative enforcement

-STATUTE-
    (a) Enforcing agencies
      Compliance with the requirements imposed under this subchapter
    shall be enforced under
        (1) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
      1818], in the case of - 
          (A) national banks, and Federal branches and Federal agencies
        of foreign banks, by the Office of the Comptroller of the
        Currency;
          (B) member banks of the Federal Reserve System (other than
        national banks), branches and agencies of foreign banks (other
        than Federal branches, Federal agencies, and insured State
        branches of foreign banks), commercial lending companies owned
        or controlled by foreign banks, and organizations operating
        under section 25 or 25(a) (!1) of the Federal Reserve Act [12
        U.S.C. 601 et seq., 611 et seq.], by the Board; and

          (C) banks insured by the Federal Deposit Insurance
        Corporation (other than members of the Federal Reserve System)
        and insured State branches of foreign banks, by the Board of
        Directors of the Federal Deposit Insurance Corporation;

        (2) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
      1818], by the Director of the Office of Thrift Supervision, in
      the case of a savings association the deposits of which are
      insured by the Federal Deposit Insurance Corporation.
        (3) the Federal Credit Union Act [12 U.S.C. 1751 et seq.], by
      the National Credit Union Administration Board with respect to
      any Federal credit union.
        (4) part A of subtitle VII of title 49, by the Secretary of
      Transportation with respect to any air carrier or foreign air
      carrier subject to that part.
        (5) the Packers and Stockyards Act, 1921 [7 U.S.C. 181 et seq.]
      (except as provided in section 406 of that Act [7 U.S.C. 226,
      227]), by the Secretary of Agriculture with respect to any
      activities subject to that Act.
        (6) the Farm Credit Act of 1971 [12 U.S.C. 2001 et seq.] by the
      Farm Credit Administration with respect to any Federal land bank,
      Federal land bank association, Federal intermediate credit bank,
      or production credit association.

    The terms used in paragraph (1) that are not defined in this
    subchapter or otherwise defined in section 3(s) of the Federal
    Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning
    given to them in section 1(b) of the International Banking Act of
    1978 (12 U.S.C. 3101).
    (b) Violations of this subchapter deemed violations of pre-existing
      statutory requirements; additional agency powers
      For the purpose of the exercise by any agency referred to in
    subsection (a) of this section of its powers under any Act referred
    to in that subsection, a violation of any requirement imposed under
    this subchapter 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 (a) of this
    section, each of the agencies referred to in that subsection may
    exercise, for the purpose of enforcing compliance with any
    requirement imposed under this subchapter, any other authority
    conferred on it by law.
    (c) Federal Trade Commission as overall enforcing agency
      Except to the extent that enforcement of the requirements imposed
    under this subchapter is specifically committed to some other
    Government agency under subsection (a) of this section, the Federal
    Trade Commission shall enforce such requirements. For the purpose
    of the exercise by the Federal Trade Commission of its functions
    and powers under the Federal Trade Commission Act [15 U.S.C. 41 et
    seq.], a violation of any requirement imposed under this subchapter
    shall be deemed a violation of a requirement imposed under that
    Act. All of the functions and powers of the Federal Trade
    Commission under the Federal Trade Commission Act are available to
    the Commission to enforce compliance by any person with the
    requirements imposed under this subchapter, irrespective of whether
    that person is engaged in commerce or meets any other
    jurisdictional tests in the Federal Trade Commission Act.
    (d) Rules and regulations
      The authority of the Board to issue regulations under this
    subchapter does not impair the authority of any other agency
    designated in this section to make rules respecting its own
    procedures in enforcing compliance with requirements imposed under
    this subchapter.
    (e) Adjustment of finance charges; procedures applicable, coverage,
      criteria, etc.
      (1) In carrying out its enforcement activities under this
    section, each agency referred to in subsection (a) or (c) of this
    section, in cases where an annual percentage rate or finance charge
    was inaccurately disclosed, shall notify the creditor of such
    disclosure error and is authorized in accordance with the
    provisions of this subsection to require the creditor to make an
    adjustment to the account of the person to whom credit was
    extended, to assure that such person will not be required to pay a
    finance charge in excess of the finance charge actually disclosed
    or the dollar equivalent of the annual percentage rate actually
    disclosed, whichever is lower. For the purposes of this subsection,
    except where such disclosure error resulted from a willful
    violation which was intended to mislead the person to whom credit
    was extended, in determining whether a disclosure error has
    occurred and in calculating any adjustment, (A) each agency shall
    apply (i) with respect to the annual percentage rate, a tolerance
    of one-quarter of 1 percent more or less than the actual rate,
    determined without regard to section 1606(c) of this title, and
    (ii) with respect to the finance charge, a corresponding numerical
    tolerance as generated by the tolerance provided under this
    subsection for the annual percentage rate; except that (B) with
    respect to transactions consummated after two years following March
    31, 1980, each agency shall apply (i) for transactions that have a
    scheduled amortization of ten years or less, with respect to the
    annual percentage rate, a tolerance not to exceed one-quarter of 1
    percent more or less than the actual rate, determined without
    regard to section 1606(c) of this title, but in no event a
    tolerance of less than the tolerances allowed under section 1606(c)
    of this title, (ii) for transactions that have a scheduled
    amortization of more than ten years, with respect to the annual
    percentage rate, only such tolerances as are allowed under section
    1606(c) of this title, and (iii) for all transactions, with respect
    to the finance charge, a corresponding numerical tolerance as
    generated by the tolerances provided under this subsection for the
    annual percentage rate.
      (2) Each agency shall require such an adjustment when it
    determines that such disclosure error resulted from (A) a clear and
    consistent pattern or practice of violations, (B) gross negligence,
    or (C) a willful violation which was intended to mislead the person
    to whom the credit was extended. Notwithstanding the preceding
    sentence, except where such disclosure error resulted from a
    willful violation which was intended to mislead the person to whom
    credit was extended, an agency need not require such an adjustment
    if it determines that such disclosure error - 
        (A) resulted from an error involving the disclosure of a fee or
      charge that would otherwise be excludable in computing the
      finance charge, including but not limited to violations involving
      the disclosures described in sections 1605(b), (c) and (d) of
      this title, in which event the agency may require such remedial
      action as it determines to be equitable, except that for
      transactions consummated after two years after March 31, 1980,
      such an adjustment shall be ordered for violations of section
      1605(b) of this title;
        (B) involved a disclosed amount which was 10 per centum or less
      of the amount that should have been disclosed and (i) in cases
      where the error involved a disclosed finance charge, the annual
      percentage rate was disclosed correctly, and (ii) in cases where
      the error involved a disclosed annual percentage rate, the
      finance charge was disclosed correctly; in which event the agency
      may require such adjustment as it determines to be equitable;
        (C) involved a total failure to disclose either the annual
      percentage rate or the finance charge, in which event the agency
      may require such adjustment as it determines to be equitable; or
        (D) resulted from any other unique circumstance involving
      clearly technical and nonsubstantive disclosure violations that
      do not adversely affect information provided to the consumer and
      that have not misled or otherwise deceived the consumer.

    In the case of other such disclosure errors, each agency may
    require such an adjustment.
      (3) Notwithstanding paragraph (2), no adjustment shall be ordered
    - 
        (A) if it would have a significantly adverse impact upon the
      safety or soundness of the creditor, but in any such case, the
      agency may - 
          (i) require a partial adjustment in an amount which does not
        have such an impact; or
          (ii) require the full adjustment, but permit the creditor to
        make the required adjustment in partial payments over an
        extended period of time which the agency considers to be
        reasonable, if (in the case of an agency referred to in
        paragraph (1), (2), or (3) of subsection (a) of this section),
        the agency determines that a partial adjustment or making
        partial payments over an extended period is necessary to avoid
        causing the creditor to become undercapitalized pursuant to
        section 38 of the Federal Deposit Insurance Act [12 U.S.C.
        1831o];

        (B) the (!2) amount of the adjustment would be less than $1,
      except that if more than one year has elapsed since the date of
      the violation, the agency may require that such amount be paid
      into the Treasury of the United States, or

        (C) except where such disclosure error resulted from a willful
      violation which was intended to mislead the person to whom credit
      was extended, in the case of an open-end credit plan, more than
      two years after the violation, or in the case of any other
      extension of credit, as follows:
        (i) with respect to creditors that are subject to examination
      by the agencies referred to in paragraphs (1) through (3) of
      subsection (a) of this section, except in connection with
      violations arising from practices identified in the current
      examination and only in connection with transactions that are
      consummated after the date of the immediately preceding
      examination, except that where practices giving rise to
      violations identified in earlier examinations have not been
      corrected, adjustments for those violations shall be required in
      connection with transactions consummated after the date of
      examination in which such practices were first identified;
        (ii) with respect to creditors that are not subject to
      examination by such agencies, except in connection with
      transactions that are consummated after May 10, 1978; and
        (iii) in no event after the later of (I) the expiration of the
      life of the credit extension, or (II) two years after the
      agreement to extend credit was consummated.

      (4)(A) Notwithstanding any other provision of this section, an
    adjustment under this subsection may be required by an agency
    referred to in subsection (a) or (c) of this section only by an
    order issued in accordance with cease and desist procedures
    provided by the provision of law referred to in such subsections.
      (B) In case of an agency which is not authorized to conduct cease
    and desist proceedings, such an order may be issued after an agency
    hearing on the record conducted at least thirty but not more than
    sixty days after notice of the alleged violation is served on the
    creditor. Such a hearing shall be deemed to be a hearing which is
    subject to the provisions of section 8(h) of the Federal Deposit
    Insurance Act [12 U.S.C. 1818(h)] and shall be subject to judicial
    review as provided therein.
      (5) Except as otherwise specifically provided in this subsection
    and notwithstanding any provision of law referred to in subsection
    (a) or (c) of this section, no agency referred to in subsection (a)
    or (c) of this section may require a creditor to make dollar
    adjustments for errors in any requirements under this subchapter,
    except with regard to the requirements of section 1666d of this
    title.
      (6) A creditor shall not be subject to an order to make an
    adjustment, if within sixty days after discovering a disclosure
    error, whether pursuant to a final written examination report or
    through the creditor's own procedures, the creditor notifies the
    person concerned of the error and adjusts the account so as to
    assure that such person will not be required to pay a finance
    charge in excess of the finance charge actually disclosed or the
    dollar equivalent of the annual percentage rate actually disclosed,
    whichever is lower.
      (7) Notwithstanding the second sentence of subsection (e)(1),
    subsection (e)(3)(C)(i), and subsection (e)(3)(C)(ii) of this
    section, each agency referred to in subsection (a) or (c) of this
    section shall require an adjustment for an annual percentage rate
    disclosure error that exceeds a tolerance of one quarter of one
    percent less than the actual rate, determined without regard to
    section 1606(c) of this title, with respect to any transaction
    consummated between January 1, 1977, and March 31, 1980.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 108, May 29, 1968, 82 Stat. 150;
    Pub. L. 91-206, Sec. 3, Mar. 10, 1970, 84 Stat. 49; Pub. L. 93-495,
    title IV, Sec. 403, Oct. 28, 1974, 88 Stat. 1517; Pub. L. 95-630,
    title V, Sec. 501, Nov. 10, 1978, 92 Stat. 3680; Pub. L. 96-221,
    title VI, Sec. 608(a), (c), Mar. 21, 1980, 94 Stat. 171, 173; Pub.
    L. 98-443, Sec. 9(n), Oct. 4, 1984, 98 Stat. 1708; Pub. L. 101-73,
    title VII, Sec. 744(k), Aug. 9, 1989, 103 Stat. 439; Pub. L. 102-
    242, title II, Sec. 212(b), Dec. 19, 1991, 105 Stat. 2299; Pub. L.
    102-550, title XVI, Sec. 1604(a)(5), Oct. 28, 1992, 106 Stat. 4082;
    Pub. L. 104-208, div. A, title II, Sec. 2106, Sept. 30, 1996, 110
    Stat. 3009-402.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 25(a) of the Federal Reserve Act, referred to in subsec.
    (a)(1)(B), which is classified to subchapter II (Sec. 611 et seq.)
    of chapter 6 of Title 12, Banks and Banking, was renumbered section
    25A of that act by Pub. L. 102-242, title I, Sec. 142(e)(2), Dec.
    19, 1991, 105 Stat. 2281. Section 25 of the Federal Reserve Act is
    classified to subchapter I (Sec. 601 et seq.) of chapter 6 of Title
    12.
      The Federal Credit Union Act, referred to in subsec. (a)(3), is
    act June 26, 1934, ch. 750, 48 Stat. 1216, as amended, which is
    classified generally to chapter 14 (Sec. 1751 et seq.) of Title 12.
    For complete classification of this Act to the Code, see section
    1751 of Title 12 and Tables.
      The Packers and Stockyards Act, 1921, referred to in subsec.
    (a)(5), is act Aug. 15, 1921, ch. 64, 42 Stat. 159, as amended,
    which is classified to chapter 9 (Sec. 181 et seq.) of Title 7,
    Agriculture. For complete classification of this Act to the Code,
    see section 181 of Title 7 and Tables.
      The Farm Credit Act of 1971, referred to in subsec. (a)(6), is
    Pub. L. 92-181, Dec. 10, 1971, 85 Stat. 583, as amended, which is
    classified generally to chapter 23 (Sec. 2001 et seq.) of Title 12,
    Banks and Banking. For complete classification of this Act to the
    Code, see Short Title note set out under section 2001 of Title 12
    and Tables.
      The Federal Trade Commission Act, referred to in subsec. (c), is
    act Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended, which is
    classified generally to subchapter I (Sec. 41 et seq.) of chapter 2
    of this title. For complete classification of this Act to the Code,
    see section 58 of this title and Tables.

-COD-
                               CODIFICATION                           
      In subsec. (a)(4), "part A of subtitle VII of title 49"
    substituted for "the Federal Aviation Act of 1958 [49 App. U.S.C.
    1301 et seq.]" and "that part" substituted for "that Act" on
    authority of Pub. L. 103-272, Sec. 6(b), July 5, 1994, 108 Stat.
    1378, the first section of which enacted subtitles II, III, and V
    to X of Title 49, Transportation.


-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (e)(3). Pub. L. 104-208 struck out "ordered (A)
    if" and inserted "ordered - 
        "(A) if";
    struck out "may require a partial" and inserted "may - 
        "(i) require a partial";
    struck out ", except that with respect to any transaction
    consumated after March 31, 1980, the agency shall require" and
    inserted "; or
        "(ii) require";
    directed the substitution of "reasonable, if (in the case of an
    agency referred to in paragraph (1), (2), or (3) of subsection (a)
    of this section), the agency determines that a partial adjustment
    or making partial payments over an extended period is necessary to
    avoid causing the creditor to become undercapitalized pursuant to
    section 38 of the Federal Deposit Insurance Act;
        "(B) the";
    for "reasonable, (B) the", which was executed by making the
    substitution for "reasonable, (B) if the"; and struck out "(C)
    except" and inserted
        "(C) except".
      1992 - Subsec. (a)(1)(C). Pub. L. 102-550 substituted semicolon
    for period at end.
      1991 - Subsec. (a). Pub. L. 102-242, Sec. 212(b)(2), inserted at
    end "The terms used in paragraph (1) that are not defined in this
    subchapter or otherwise defined in section 3(s) of the Federal
    Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning
    given to them in section 1(b) of the International Banking Act of
    1978 (12 U.S.C. 3101)."
      Pub. L. 102-242, Sec. 212(b)(1), added par. (1) and struck out
    former par. (1) which read as follows: "section 8 of the Federal
    Deposit Insurance Act, in the case of
        "(A) national banks, by the Comptroller of the Currency.
        "(B) member banks of the Federal Reserve System (other than
      national banks), by the Board.
        "(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."
      1989 - Subsec. (a)(2). Pub. L. 101-73 amended par. (2) generally.
    Prior to amendment, par. (2) read as follows: "section 5(d) of the
    Home Owner's Loan Act of 1933, section 407 of the National Housing
    Act, and sections 6(i) and 17 of the Federal Home Loan Bank Act, by
    the Federal Home Loan Bank Board (acting directly or through the
    Federal Savings and Loan Insurance Corporation), in the case of any
    institution subject to any of those provisions."
      1984 - Subsec. (a)(4). Pub. L. 98-443 substituted "Secretary of
    Transportation" for "Civil Aeronautics Board".
      1980 - Subsec. (e). Pub. L. 96-221, Sec. 608(a), added subsec.
    (e).
      Pub. L. 96-221, Sec. 608(c), struck out in pars. (1)(A)(i) and
    (7) ", except in the case of an irregular mortgage lending
    transaction" after "section 1606(c) of this title". See Effective
    Date of 1980 Amendment note below.
      1974 - Subsec. (a)(4) to (6). Pub. L. 93-495 redesignated pars.
    (5) and (6) as (4) and (5), respectively. Former par. (4), which
    related to enforcement by the Interstate Commerce Commission, was
    struck out.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-550 effective as if included in the
    Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.
    L. 102-242, as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102-
    550, set out as a note under section 191 of Title 12, Banks and
    Banking.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-443 effective Jan. 1, 1985, see section
    9(v) of Pub. L. 98-443, set out as a note under section 5314 of
    Title 5, Government Organization and Employees.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Section 608(b) of Pub. L. 96-221 provided that: "This section
    [amending this section] shall take effect on the date of enactment
    of the Truth in Lending Simplification and Reform Act [Mar. 31,
    1980]."
      Section 608(c) of Pub. L. 96-221 provided that the amendment made
    by that section is effective one year after Mar. 31, 1980.

                     EFFECTIVE DATE OF 1974 AMENDMENT                 
      Amendment by Pub. L. 93-495 effective Oct. 28, 1974, see section
    416 of Pub. L. 93-495, set out as an Effective Date note under
    section 1665a of this title.


-TRANS-
                           TRANSFER OF FUNCTIONS                       
      "National Credit Union Administration Board" substituted for
    "Director of the Bureau of Federal Credit Unions" in subsec. (a)(3)
    pursuant to section 3 of Pub. L. 91-206 and section 501 of Pub. L.
    95-630 [12 U.S.C. 1752a] which transferred functions of Bureau of
    Federal Credit Unions, and Director thereof, to National Credit
    Union Administration and vested authority for management of
    Administration in National Credit Union Administration Board.

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) So in original. Probably should be preceded by "if".


-End-



-CITE-
    15 USC Sec. 1608                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1608. Views of other agencies

-STATUTE-
      In the exercise of its functions under this subchapter, the Board
    may obtain upon requests the views of any other Federal agency
    which, in the judgment of the Board, exercises regulatory or
    supervisory functions with respect to any class of creditors
    subject to this subchapter.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 109, May 29, 1968, 82 Stat. 150.)

-End-



-CITE-
    15 USC Sec. 1609                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1609. Repealed.

-MISC1-
    Sec. 1609. Repealed. Pub. L. 94-239, Sec. 3(b)(1), Mar. 23, 1976,
      90 Stat. 253.
      Section, Pub. L. 90-321, title I, Sec. 110, May 29, 1968, 82
    Stat. 151, provided for establishment of an advisory committee
    authorized to seek to achieve a fair representation of interests of
    sellers of merchandise on credit, lenders, and the public.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Mar. 23, 1976, see section 708 of Pub. L. 90-
    321, set out as an Effective Date note under section 1691 of this
    title.

-End-



-CITE-
    15 USC Sec. 1610                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1610. Effect on other laws

-STATUTE-
    (a) Inconsistent provisions; procedures applicable for
      determination
      (1) Except as provided in subsection (e) of this section, this
    part and parts B and C of this subchapter, do not annul, alter, or
    affect the laws of any State relating to the disclosure of
    information in connection with credit transactions, except to the
    extent that those laws are inconsistent with the provisions of this
    subchapter and then only to the extent of the inconsistency. Upon
    its own motion or upon the request of any creditor, State or other
    interested party which is submitted in accordance with procedures
    prescribed in regulations of the Board, the Board shall determine
    whether any such inconsistency exists. If the Board determines that
    a State-required disclosure is inconsistent, creditors located in
    that State may not make disclosures using the inconsistent term or
    form, and shall incur no liability under the law of that State for
    failure to use such term or form, notwithstanding that such
    determination is subsequently amended, rescinded, or determined by
    judicial or other authority to be invalid for any reason.
      (2) Upon its own motion or upon the request of any creditor,
    State, or other interested party which is submitted in accordance
    with procedures prescribed in regulations of the Board, the Board
    shall determine whether any disclosure required under the law of
    any State is substantially the same in meaning as a disclosure
    required under this subchapter. If the Board determines that a
    State-required disclosure is substantially the same in meaning as a
    disclosure required by this subchapter, then creditors located in
    that State may make such disclosure in compliance with such State
    law in lieu of the disclosure required by this subchapter, except
    that the annual percentage rate and finance charge shall be
    disclosed as required by section 1632 of this title, and such State-
    required disclosure may not be made in lieu of the disclosures
    applicable to certain mortgages under section 1639 of this title.
    (b) State credit charge statutes
      Except as provided in section 1639 of this title, this subchapter
    does not otherwise annul, alter or affect in any manner the
    meaning, scope or applicability of the laws of any State,
    including, but not limited to, laws relating to the types, amounts
    or rates of charges, or any element or elements of charges,
    permissible under such laws in connection with the extension or use
    of credit, nor does this subchapter extend the applicability of
    those laws to any class of persons or transactions to which they
    would not otherwise apply. The provisions of section 1639 of this
    title do not annul, alter, or affect the applicability of the laws
    of any State or exempt any person subject to the provisions of
    section 1639 of this title from complying with the laws of any
    State, with respect to the requirements for mortgages referred to
    in section 1602(aa) of this title, except to the extent that those
    State laws are inconsistent with any provisions of section 1639 of
    this title, and then only to the extent of the inconsistency.
    (c) Disclosure as evidence
      In any action or proceeding in any court involving a consumer
    credit sale, the disclosure of the annual percentage rate as
    required under this subchapter in connection with that sale may not
    be received as evidence that the sale was a loan or any type of
    transaction other than a credit sale.
    (d) Contract or other obligations under State or Federal law
      Except as specified in sections 1635, 1640, and 1666e of this
    title, this subchapter and the regulations issued thereunder do not
    affect the validity or enforceability of any contract or obligation
    under State or Federal law.
    (e) Certain credit and charge card application and solicitation
      disclosure provisions
      The provisions of subsection (c) of section 1632 of this title
    and subsections (c), (d), (e), and (f) of section 1637 of this
    title shall supersede any provision of the law of any State
    relating to the disclosure of information in any credit or charge
    card application or solicitation which is subject to the
    requirements of section 1637(c) of this title or any renewal notice
    which is subject to the requirements of section 1637(d) of this
    title, except that any State may employ or establish State laws for
    the purpose of enforcing the requirements of such sections.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 111, May 29, 1968, 82 Stat. 151;
    Pub. L. 93-495, title III, Sec. 307(b), Oct. 28, 1974, 88 Stat.
    1516; Pub. L. 96-221, title VI, Sec. 609, Mar. 31, 1980, 94 Stat.
    173; Pub. L. 100-583, Sec. 4, Nov. 3, 1988, 102 Stat. 2967; Pub. L.
    103-325, title I, Sec. 152(e)(2)(B), (C), Sept. 23, 1994, 108 Stat.
    2194.)


-MISC1-
                                AMENDMENTS                            
      1994 - Subsec. (a)(2). Pub. L. 103-325, Sec. 152(e)(2)(B), which
    directed the amendment of par. (2) by inserting ", and such State-
    required disclosure may not be made in lieu of the disclosures
    applicable to certain mortgages under section 1639 of this title"
    before period, was executed by making the insertion before period
    at end of par. (2), to reflect the probable intent of Congress.
      Subsec. (b). Pub. L. 103-325, Sec. 152(e)(2)(C), substituted
    "Except as provided in section 1639 of this title, this subchapter"
    for "This subchapter" and inserted at end "The provisions of
    section 1639 of this title do not annul, alter, or affect the
    applicability of the laws of any State or exempt any person subject
    to the provisions of section 1639 of this title from complying with
    the laws of any State, with respect to the requirements for
    mortgages referred to in section 1602(aa) of this title, except to
    the extent that those State laws are inconsistent with any
    provisions of section 1639 of this title, and then only to the
    extent of the inconsistency."
      1988 - Subsec. (a)(1). Pub. L. 100-583, Sec. 4(1), substituted
    "Except as provided in subsection (e) of this section, this part"
    for "This part".
      Subsec. (e). Pub. L. 100-583, Sec. 4(2), added subsec. (e).
      1980 - Subsec. (a). Pub. L. 96-221 designated existing provisions
    as par. (1), substituted provisions respecting the effect of this
    part and parts B and C of this subchapter, and procedures
    applicable for determination, for provisions respecting the effect
    of this subchapter, and added par. (2).
      1974 - Subsec. (d). Pub. L. 93-495 inserted reference to section
    1666e of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

                     EFFECTIVE DATE OF 1974 AMENDMENT                 
      For effective date of amendment by Pub. L. 93-495, see section
    308 of Pub. L. 93-495, set out as an Effective Date note under
    section 1666 of this title.

-End-



-CITE-
    15 USC Sec. 1611                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1611. Criminal liability for willful and knowing violation

-STATUTE-
      Whoever willfully and knowingly
        (1) gives false or inaccurate information or fails to provide
      information which he is required to disclose under the provisions
      of this subchapter or any regulation issued thereunder,
        (2) uses any chart or table authorized by the Board under
      section 1606 of this title in such a manner as to consistently
      understate the annual percentage rate determined under section
      1606(a)(1)(A) of this title, or
        (3) otherwise fails to comply with any requirement imposed
      under this subchapter,

    shall be fined not more than $5,000 or imprisoned not more than one
    year, or both.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 112, May 29, 1968, 82 Stat. 151.)

-End-



-CITE-
    15 USC Sec. 1612                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1612. Effect on government agencies

-STATUTE-
    (a) Consultation requirements respecting compliance of credit
      instruments issued to participating creditor
      Any department or agency of the United States which administers a
    credit program in which it extends, insures, or guarantees consumer
    credit and in which it provides instruments to a creditor which
    contain any disclosures required by this subchapter shall, prior to
    the issuance or continued use of such instruments, consult with the
    Board to assure that such instruments comply with this subchapter.
    (b) Inapplicability of Federal civil or criminal penalties to
      Federal, State, and local agencies
      No civil or criminal penalty provided under this subchapter for
    any violation thereof may be imposed upon the United States or any
    department or agency thereof, or upon any State or political
    subdivision thereof, or any agency of any State of political
    subdivision.
    (c) Inapplicability of Federal civil or criminal penalties to
      participating creditor where violating instrument issued by
      United States
      A creditor participating in a credit program administered,
    insured, or guaranteed by any department or agency or the United
    States shall not be held liable for a civil or criminal penalty
    under this subchapter in any case in which the violation results
    from the use of an instrument required by any such department or
    agency.
    (d) Applicability of State penalties to violations by participating
      creditor
      A creditor participating in a credit program administered,
    insured, or guaranteed by any department or agency of the United
    States shall not be held liable for a civil or criminal penalty
    under the laws of any State (other than laws determined under
    section 1610 of this title to be inconsistent with this subchapter)
    for any technical or procedural failure, such as a failure to use a
    specific form, to make information available at a specific place on
    an instrument, or to use a specific typeface, as required by State
    law, which is caused by the use of an instrument required to be
    used by such department or agency.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 113, May 29, 1968, 82 Stat. 151;
    Pub. L. 96-221, title VI, Sec. 622(a), Mar. 31, 1980, 94 Stat.
    184.)


-MISC1-
                                AMENDMENTS                            
      1980 - Pub. L. 96-221 amended section generally, designating
    existing provisions as subsec. (b) and adding subsecs. (a), (c),
    and (d).

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

-End-



-CITE-
    15 USC Sec. 1613                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1613. Annual reports to Congress by Board

-STATUTE-
      Each year the Board shall make a report to the Congress
    concerning the administration of its functions under this
    subchapter, including such recommendations as the Board deems
    necessary or appropriate. In addition, each report of the Board
    shall include its assessment of the extent to which compliance with
    the requirements imposed under this subchapter is being achieved.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 114, May 29, 1968, 82 Stat. 151;
    Pub. L. 96-221, title VI, Sec. 610(a), Mar. 31, 1980, 94 Stat. 174;
    Pub. L. 97-375, title II, Sec. 209(b), Dec. 21, 1982, 96 Stat.
    1825.)


-MISC1-
                                AMENDMENTS                            
      1982 - Pub. L. 97-375 struck out requirement that the Attorney
    General make a report on the same terms as the Board.
      1980 - Pub. L. 96-221 substituted "Each year" for "Not later than
    January 3 of each year after 1969,".

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

-End-



-CITE-
    15 USC Sec. 1614                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1614. Repealed.

-MISC1-
    Sec. 1614. Repealed. Pub. L. 96-221, title VI, Sec. 616(b), Mar.
      31, 1980, 94 Stat. 182.
      Section, Pub. L. 90-321, title I, Sec. 115, as added Pub. L. 93-
    495, title IV, Sec. 413(a), Oct. 28, 1974, 88 Stat. 1520, related
    to liability of assignees. See section 1641 of this title.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective on expiration of two years and six months after
    Mar. 31, 1980, with all regulations, forms, and clauses required to
    be prescribed to be promulgated at least one year prior to such
    effective date, and allowing any creditor to comply with any
    amendments, in accordance with the regulations, forms, and clauses
    prescribed by the Board prior to such effective date, see section
    625 of Pub. L. 96-221, set out as an Effective Date of 1980
    Amendment note under section 1602 of this title.

-End-



-CITE-
    15 USC Sec. 1615                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part A - General Provisions

-HEAD-
    Sec. 1615. Prohibition on use of "Rule of 78's" in connection with
      mortgage refinancings and other consumer loans

-STATUTE-
    (a) Prompt refund of unearned interest required
      (1) In general
        If a consumer prepays in full the financed amount under any
      consumer credit transaction, the creditor shall promptly refund
      any unearned portion of the interest charge to the consumer.
      (2) Exception for refund of de minimus (!1) amount

        No refund shall be required under paragraph (1) with respect to
      the prepayment of any consumer credit transaction if the total
      amount of the refund would be less than $1.
      (3) Applicability to refinanced transactions and acceleration by
        the creditor
        This subsection shall apply with respect to any prepayment of a
      consumer credit transaction described in paragraph (1) without
      regard to the manner or the reason for the prepayment, including -
       
          (A) any prepayment made in connection with the refinancing,
        consolidation, or restructuring of the transaction; and
          (B) any prepayment made as a result of the acceleration of
        the obligation to repay the amount due with respect to the
        transaction.
    (b) Use of "Rule of 78's" prohibited
      For the purpose of calculating any refund of interest required
    under subsection (a) of this section for any precomputed consumer
    credit transaction of a term exceeding 61 months which is
    consummated after September 30, 1993, the creditor shall compute
    the refund based on a method which is at least as favorable to the
    consumer as the actuarial method.
    (c) Statement of prepayment amount
      (1) In general
        Before the end of the 5-day period beginning on the date an
      oral or written request is received by a creditor from a consumer
      for the disclosure of the amount due on any precomputed consumer
      credit account, the creditor or assignee shall provide the
      consumer with a statement of - 
          (A) the amount necessary to prepay the account in full; and
          (B) if the amount disclosed pursuant to subparagraph (A)
        includes an amount which is required to be refunded under this
        section with respect to such prepayment, the amount of such
        refund.
      (2) Written statement required if request is in writing
        If the customer's request is in writing, the statement under
      paragraph (1) shall be in writing.
      (3) 1 free annual statement
        A consumer shall be entitled to obtain 1 statement under
      paragraph (1) each year without charge.
      (4) Additional statements subject to reasonable fees
        Any creditor may impose a reasonable fee to cover the cost of
      providing any statement under paragraph (1) to any consumer in
      addition to the 1 free annual statement required under paragraph
      (3) if the amount of the charge for such additional statement is
      disclosed to the consumer before furnishing such statement.
    (d) Definitions
      For the purpose of this section - 
      (1) Actuarial method
        The term "actuarial method" means the method of allocating
      payments made on a debt between the amount financed and the
      finance charge pursuant to which a payment is applied first to
      the accumulated finance charge and any remainder is subtracted
      from, or any deficiency is added to, the unpaid balance of the
      amount financed.
      (2) Consumer, credit
        The terms "consumer" and "creditor" have the meanings given to
      such terms in section 1602 of this title.
      (3) Creditor
        The term "creditor" - 
          (A) has the meaning given to such term in section 1602 of
        this title; and
          (B) includes any assignee of any creditor with respect to
        credit extended in connection with any consumer credit
        transaction and any subsequent assignee with respect to such
        credit.

-SOURCE-
    (Pub. L. 102-550, title IX, Sec. 933, Oct. 28, 1992, 106 Stat.
    3891.)

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Housing and Community
    Development Act of 1992, and not as part of the Consumer Credit
    Protection Act which comprises this chapter.

-FOOTNOTE-
    (!1) So in original. Probably should be "de minimis".


-End-


-CITE-
    15 USC Part B - Credit Transactions                         01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
                       PART B - CREDIT TRANSACTIONS                   

-End-



-CITE-
    15 USC Sec. 1631                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1631. Disclosure requirements

-STATUTE-
    (a) Duty of creditor or lessor respecting one or more than one
      obligor
      Subject to subsection (b) of this section, a creditor or lessor
    shall disclose to the person who is obligated on a consumer lease
    or a consumer credit transaction the information required under
    this subchapter. In a transaction involving more than one obligor,
    a creditor or lessor, except in a transaction under section 1635 of
    this title, need not disclose to more than one of such obligors if
    the obligor given disclosure is a primary obligor.
    (b) Creditor or lessor required to make disclosure
      If a transaction involves one creditor as defined in section
    1602(f) of this title, or one lessor as defined in section 1667(3)
    of this title, such creditor or lessor shall make the disclosures.
    If a transaction involves more than one creditor or lessor, only
    one creditor or lessor shall by required to make the disclosures.
    The Board shall by regulation specify which creditor or lessor
    shall make the disclosures.
    (c) Estimates as satisfying statutory requirements; basis of
      disclosure for per diem interest
      The Board may provide by regulation that any portion of the
    information required to be disclosed by this subchapter may be
    given in the form of estimates where the provider of such
    information is not in a position to know exact information. In the
    case of any consumer credit transaction a portion of the interest
    on which is determined on a per diem basis and is to be collected
    upon the consummation of such transaction, any disclosure with
    respect to such portion of interest shall be deemed to be accurate
    for purposes of this subchapter if the disclosure is based on
    information actually known to the creditor at the time that the
    disclosure documents are being prepared for the consummation of the
    transaction.
    (d) Tolerances for numerical disclosures
      The Board shall determine whether tolerances for numerical
    disclosures other than the annual percentage rate are necessary to
    facilitate compliance with this subchapter, and if it determines
    that such tolerances are necessary to facilitate compliance, it
    shall by regulation permit disclosures within such tolerances. The
    Board shall exercise its authority to permit tolerances for
    numerical disclosures other than the annual percentage rate so that
    such tolerances are narrow enough to prevent such tolerances from
    resulting in misleading disclosures or disclosures that circumvent
    the purposes of this subchapter.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 121, May 29, 1968, 82 Stat. 152;
    Pub. L. 93-495, title III, Sec. 307(c), (d), title IV, Sec. 409,
    Oct. 28, 1974, 88 Stat. 1516, 1519; Pub. L. 94-205, Sec. 11, Jan.
    2, 1976, 89 Stat. 1159; Pub. L. 96-221, title VI, Sec. 611, Mar.
    31, 1980, 94 Stat. 174; Pub. L. 104-29, Sec. 3(b), Sept. 30, 1995,
    109 Stat. 273.)


-MISC1-
                                AMENDMENTS                            
      1995 - Subsec. (c). Pub. L. 104-29 inserted at end "In the case
    of any consumer credit transaction a portion of the interest on
    which is determined on a per diem basis and is to be collected upon
    the consummation of such transaction, any disclosure with respect
    to such portion of interest shall be deemed to be accurate for
    purposes of this subchapter if the disclosure is based on
    information actually known to the creditor at the time that the
    disclosure documents are being prepared for the consummation of the
    transaction."
      1980 - Subsec. (a). Pub. L. 96-221 substituted provisions
    respecting to which obligor duty of creditor or lessor, where one
    or more than one obligor is involved, is owed, for provisions
    setting forth clear and conspicuous disclosure requirements for
    creditors to persons extended consumer credit.
      Subsec. (b). Pub. L. 96-221 substituted provisions relating to
    disclosure requirements of creditor or lessor, for provisions
    relating to statement of information where more than one obligor is
    involved.
      Subsecs. (c), (d). Pub. L. 96-221 added subsecs. (c) and (d).
      1976 - Subsec. (c). Pub. L. 94-205 struck out subsec. (c) which
    related to disclosure including a full statement of closing costs
    incurred and permitted estimates of such information where the
    lender was not in a position to know exact information.
      1974 - Subsec. (a). Pub. L. 93-495, Sec. 307(c), inserted
    reference to part D of this subchapter and struck out "and upon
    whom a finance charge is or may be imposed" after "extended".
      Subsec. (b). Pub. L. 93-495, Sec. 307(d), inserted reference to
    part D of this subchapter.
      Subsec. (c). Pub. L. 93-495, Sec. 409, added subsec (c).

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-205 effective Jan. 2, 1976, see section
    12 of Pub. L. 94-205, set out as a note under section 2602 of Title
    12, Banks and Banking.

                     EFFECTIVE DATE OF 1974 AMENDMENT                 
      For effective date of amendment by section 307(c), (d) of Pub. L.
    93-495, see section 308 of Pub. L. 93-495, set out as an Effective
    Date note under section 1666 of this title.
      For effective date of amendment by section 409 of Pub. L. 93-495,
    see section 416 of Pub. L. 93-495, set out as an Effective Date
    note under section 1665a of this title.

                              EFFECTIVE DATE                          
      Section 504(b) of Pub. L. 90-321 provided in part that chapter 2
    of title I, which enacted sections 1631 to 1641 of this title, is
    effective July 1, 1969.

                     REAL ESTATE SETTLEMENT PROCEDURES                 
      Provisions of Real Estate Settlement Procedures Act of 1974, as
    superseding provisions of subsec. (c) of this section insofar as
    applying to federally related mortgage loans, see section 2605 of
    Title 12, Banks and Banking.

-End-



-CITE-
    15 USC Sec. 1632                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1632. Form of disclosure; additional information

-STATUTE-
    (a) Information clearly and conspicuously disclosed; "annual
      percentage rate" and "finance charge"; order of disclosures and
      use of different terminology
      Information required by this subchapter shall be disclosed
    clearly and conspicuously, in accordance with regulations of the
    Board. The terms "annual percentage rate" and "finance charge"
    shall be disclosed more conspicuously than other terms, data, or
    information provided in connection with a transaction, except
    information relating to the identify of the creditor. Except as
    provided in subsection (c) of this section, regulations of the
    Board need not require that disclosures pursuant to this subchapter
    be made in the order set forth in this subchapter and, except as
    otherwise provided, may permit the use of terminology different
    from that employed in this subchapter if it conveys substantially
    the same meaning.
    (b) Optional information by creditor or lessor
      Any creditor or lessor may supply additional information or
    explanation with any disclosures required under parts D and E of
    this subchapter and, except as provided in sections 1637a(b)(3) and
    1638(b)(1) of this title, under this part.
    (c) Tabular format required for certain disclosures under section
      1637(c)
      (1) In general
        The information described in paragraphs (1)(A), (3)(B)(i)(I),
      (4)(A), and (4)(C)(i)(I) of section 1637(c) of this title shall
      be - 
          (A) disclosed in the form and manner which the Board shall
        prescribe by regulations; and
          (B) placed in a conspicuous and prominent location on or with
        any written application, solicitation, or other document or
        paper with respect to which such disclosure is required.
      (2) Tabular format
        (A) Form of table to be prescribed
          In the regulations prescribed under paragraph (1)(A) of this
        subsection, the Board shall require that the disclosure of such
        information shall, to the extent the Board determines to be
        practicable and appropriate, be in the form of a table which - 
            (i) contains clear and concise headings for each item of
          such information; and
            (ii) provides a clear and concise form for stating each
          item of information required to be disclosed under each such
          heading.
        (B) Board discretion in prescribing order and wording of table
          In prescribing the form of the table under subparagraph (A),
        the Board may - 
            (i) list the items required to be included in the table in
          a different order than the order in which such items are set
          forth in paragraph (1)(A) or (4)(A) of section 1637(c) of
          this title; and
            (ii) subject to subparagraph (C), employ terminology which
          is different than the terminology which is employed in
          section 1637(c) of this title if such terminology conveys
          substantially the same meaning.
        (C) Grace period
          Either the heading or the statement under the heading which
        relates to the time period referred to in section
        1637(c)(1)(A)(iii) of this title shall contain the term "grace
        period".

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 122, May 29, 1968, 82 Stat. 152;
    Pub. L. 93-495, title III, Sec. 307(e), (f), Oct. 28, 1974, 88
    Stat. 1516, 1517; Pub. L. 96-221, title VI, Sec. 611, Mar. 31,
    1980, 94 Stat. 175; Pub. L. 100-583, Sec. 2(b), Nov. 3, 1988, 102
    Stat. 2966; Pub. L. 100-709, Sec. 2(d), Nov. 23, 1988, 102 Stat.
    4731.)


-MISC1-
                                AMENDMENTS                            
      1988 - Subsec. (a). Pub. L. 100-583, Sec. 2(b)(1), substituted
    "Except as provided in subsection (c) of this section, regulations"
    for "Regulations".
      Subsec. (b). Pub. L. 100-709 substituted "sections 1637a(b)(3)
    and 1638(b)(1)" for "section 1638(b)(1)".
      Subsec. (c). Pub. L. 100-583, Sec. 2(b)(2), added subsec. (c).
      1980 - Subsec. (a). Pub. L. 96-221 substituted provisions setting
    forth form of disclosure to meet requirements of this subchapter,
    for provisions setting forth form of disclosure authorized under
    this part or part D of this subchapter.
      Subsec. (b). Pub. L. 96-221 substituted provisions setting forth
    disclosure requirements for additional information by creditors or
    lessors, for provisions setting forth disclosure requirements for
    additional information by creditors.
      1974 - Subsecs. (a), (b). Pub. L. 93-495 inserted references to
    part D of this subchapter.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      For effective date of amendments by Pub. L. 100-709, see
    Regulations; Effective Date note below.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

                     EFFECTIVE DATE OF 1974 AMENDMENT                 
      For effective date of amendment by Pub. L. 93-495, see section
    308 of Pub. L. 93-495, set out as an Effective Date note under
    section 1666 of this title.

                        REGULATIONS; EFFECTIVE DATE                    
      For provisions relating to promulgation of regulations to
    implement amendment by Pub. L. 100-709, and effective date of such
    amendment in connection with those regulations, see section 7 of
    Pub. L. 100-709, set out as a note under section 1637a of this
    title.
      For provisions relating to promulgation of regulations to
    implement amendment by Pub. L. 100-583, and effective date of such
    amendment in connection with those regulations, see section 7 of
    Pub. L. 100-583, set out as a note under section 1637 of this
    title.

-End-



-CITE-
    15 USC Sec. 1633                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1633. Exemption for State-regulated transactions

-STATUTE-
      The Board shall by regulation exempt from the requirements of
    this part any class of credit transactions within any State if it
    determines that under the law of that State that class of
    transactions is subject to requirements substantially similar to
    those imposed under this part, and that there is adequate provision
    for enforcement.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 123, May 29, 1968, 82 Stat. 152.)

-End-



-CITE-
    15 USC Sec. 1634                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1634. Effect of subsequent occurrence

-STATUTE-
      If information disclosed in accordance with this part is
    subsequently rendered inaccurate as the result of any act,
    occurrence, or agreement subsequent to the delivery of the required
    disclosures, the inaccuracy resulting therefrom does not constitute
    a violation of this part.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 124, May 29, 1968, 82 Stat. 152.)

-End-



-CITE-
    15 USC Sec. 1635                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1635. Right of rescission as to certain transactions

-STATUTE-
    (a) Disclosure of obligor's right to rescind
      Except as otherwise provided in this section, in the case of any
    consumer credit transaction (including opening or increasing the
    credit limit for an open end credit plan) in which a security
    interest, including any such interest arising by operation of law,
    is or will be retained or acquired in any property which is used as
    the principal dwelling of the person to whom credit is extended,
    the obligor shall have the right to rescind the transaction until
    midnight of the third business day following the consummation of
    the transaction or the delivery of the information and rescission
    forms required under this section together with a statement
    containing the material disclosures required under this subchapter,
    whichever is later, by notifying the creditor, in accordance with
    regulations of the Board, of his intention to do so. The creditor
    shall clearly and conspicuously disclose, in accordance with
    regulations of the Board, to any obligor in a transaction subject
    to this section the rights of the obligor under this section. The
    creditor shall also provide, in accordance with regulations of the
    Board, appropriate forms for the obligor to exercise his right to
    rescind any transaction subject to this section.
    (b) Return of money or property following rescission
      When an obligor exercises his right to rescind under subsection
    (a) of this section, he is not liable for any finance or other
    charge, and any security interest given by the obligor, including
    any such interest arising by operation of law, becomes void upon
    such a rescission. Within 20 days after receipt of a notice of
    rescission, the creditor shall return to the boligor any money or
    property given as earnest money, downpayment, or otherwise, and
    shall take any action necessary or appropriate to reflect the
    termination of any security interest created under the transaction.
    If the creditor has delivered any property to the obligor, the
    obligor may retain possession of it. Upon the performance of the
    creditor's obligations under this section, the obligor shall tender
    the property to the creditor, except that if return of the property
    in kind would be impracticable or inequitable, the obligor shall
    tender its reasonable value. Tender shall be made at the location
    of the property or at the residence of the obligor, at the option
    of the obligor. If the creditor does not take possession of the
    property within 20 days after tender by the obligor, ownership of
    the property vests in the obligor without obligation on his part to
    pay for it. The procedures prescribed by this subsection shall
    apply except when otherwise ordered by a court.
    (c) Rebuttable presumption of delivery of required disclosures
      Notwithstanding any rule of evidence, written acknowledgment of
    receipt of any disclosures required under this subchapter by a
    person to whom information, forms, and a statement is required to
    be given pursuant to this section does no more than create a
    rebuttable presumption of delivery thereof.
    (d) Modification and waiver of rights
      The Board may, if it finds that such action is necessary in order
    to permit homeowners to meet bona fide personal financial
    emergencies, prescribe regulations authorizing the modification or
    waiver of any rights created under this section to the extent and
    under the circumstances set forth in those regulations.
    (e) Exempted transactions; reapplication of provisions
      This section does not apply to - 
        (1) a residential mortgage transaction as defined in section
      1602(w) of this title;
        (2) a transaction which constitutes a refinancing or
      consolidation (with no new advances) of the principal balance
      then due and any accrued and unpaid finance charges of an
      existing extension of credit by the same creditor secured by an
      interest in the same property;
        (3) a transaction in which an agency of a State is the
      creditor; or
        (4) advances under a preexisting open end credit plan if a
      security interest has already been retained or acquired and such
      advances are in accordance with a previously established credit
      limit for such plan.
    (f) Time limit for exercise of right
      An obligor's right of rescission shall expire three years after
    the date of consummation of the transaction or upon the sale of the
    property, whichever occurs first, notwithstanding the fact that the
    information and forms required under this section or any other
    disclosures required under this part have not been delivered to the
    obligor, except that if (1) any agency empowered to enforce the
    provisions of this subchapter institutes a proceeding to enforce
    the provisions of this section within three years after the date of
    consummation of the transaction, (2) such agency finds a violation
    of this section, and (3) the obligor's right to rescind is based in
    whole or in part on any matter involved in such proceeding, then
    the obligor's right of rescission shall expire three years after
    the date of consummation of the transaction or upon the earlier
    sale of the property, or upon the expiration of one year following
    the conclusion of the proceeding, or any judicial review or period
    for judicial review thereof, whichever is later.
    (g) Additional relief
      In any action in which it is determined that a creditor has
    violated this section, in addition to rescission the court may
    award relief under section 1640 of this title for violations of
    this subchapter not relating to the right to rescind.
    (h) Limitation on rescission
      An obligor shall have no rescission rights arising solely from
    the form of written notice used by the creditor to inform the
    obligor of the rights of the obligor under this section, if the
    creditor provided the obligor the appropriate form of written
    notice published and adopted by the Board, or a comparable written
    notice of the rights of the obligor, that was properly completed by
    the creditor, and otherwise complied with all other requirements of
    this section regarding notice.
    (i) Rescission rights in foreclosure
      (1) In general
        Notwithstanding section 1649 of this title, and subject to the
      time period provided in subsection (f) of this section, in
      addition to any other right of rescission available under this
      section for a transaction, after the initiation of any judicial
      or nonjudicial foreclosure process on the primary dwelling of an
      obligor securing an extension of credit, the obligor shall have a
      right to rescind the transaction equivalent to other rescission
      rights provided by this section, if - 
          (A) a mortgage broker fee is not included in the finance
        charge in accordance with the laws and regulations in effect at
        the time the consumer credit transaction was consummated; or
          (B) the form of notice of rescission for the transaction is
        not the appropriate form of written notice published and
        adopted by the Board or a comparable written notice, and
        otherwise complied with all the requirements of this section
        regarding notice.
      (2) Tolerance for disclosures
        Notwithstanding section 1605(f) of this title, and subject to
      the time period provided in subsection (f) of this section, for
      the purposes of exercising any rescission rights after the
      initiation of any judicial or nonjudicial foreclosure process on
      the principal dwelling of the obligor securing an extension of
      credit, the disclosure of the finance charge and other
      disclosures affected by any finance charge shall be treated as
      being accurate for purposes of this section if the amount
      disclosed as the finance charge does not vary from the actual
      finance charge by more than $35 or is greater than the amount
      required to be disclosed under this subchapter.
      (3) Right of recoupment under State law
        Nothing in this subsection affects a consumer's right of
      rescission in recoupment under State law.
      (4) Applicability
        This subsection shall apply to all consumer credit transactions
      in existence or consummated on or after September 30, 1995.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 125, May 29, 1968, 82 Stat. 153;
    Pub. L. 93-495, title IV, Secs. 404, 405, 412, Oct. 28, 1974, 88
    Stat. 1517, 1519; Pub. L. 96-221, title VI, Sec. 612(a)(1), (3)-
    (6), Mar. 31, 1980, 94 Stat. 175, 176; Pub. L. 98-479, title II,
    Sec. 205, Oct. 17, 1984, 98 Stat. 2234; Pub. L. 104-29, Secs. 5, 8,
    Sept. 30, 1995, 109 Stat. 274, 275.)


-MISC1-
                                AMENDMENTS                            
      1995 - Subsec. (h). Pub. L. 104-29, Sec. 5, added subsec. (h).
      Subsec. (i). Pub. L. 104-29, Sec. 8, added subsec. (i).
      1984 - Subsec. (e). Pub. L. 98-479 redesignated par. (1) as
    subsec. (e), redesignated subpars. (A), (B), (C), and (D) of par.
    (1) as pars. (1), (2), (3), and (4), respectively, and struck out
    par. (2) which read as follows: "The provisions of paragraph (1)(D)
    shall cease to be effective 3 years after the effective date of the
    Truth in Lending Simplification Reform Act."
      1980 - Subsec. (a). Pub. L. 96-221, Sec. 612(a)(1), substituted
    provisions relating to the right of rescission until midnight of
    the third business day following the consummation of the
    transaction or the delivery of the information and rescission forms
    required together with the statement containing the material
    disclosures required under this subchapter, whichever is later, for
    provisions relating to right of rescission until midnight of the
    third business day following the consummation of the transaction or
    the delivery of the required disclosures and all other material
    disclosures required under this part, whichever is later.
      Subsec. (b). Pub. L. 96-221, Sec. 612(a)(3), (4), inserted
    provisions setting forth applicability of procedures prescribed by
    this subsection, and substituted "20" for "ten" in two places.
      Subsec. (c). Pub. L. 96-221, Sec. 612(a)(5), inserted
    "information, forms, and" after "whom".
      Subsec. (e). Pub. L. 96-221, Sec. 612(a)(6), substituted
    provisions relating to nonapplicability to residential mortgage
    transactions, refinancing or consolidation transactions, etc., for
    provisions relating to nonapplicability to creation or retention of
    first liens.
      Subsec. (f). Pub. L. 96-221, Sec. 612(a)(6), substituted
    provisions setting forth duration of right of rescission where the
    required information and forms or other disclosures required under
    this part have not been delivered to the obligor, and exceptions to
    such term, for provisions setting forth duration of right of
    rescission where the required disclosures or any other material
    disclosures required under this part have not been delivered to the
    obligor.
      Subsec. (g). Pub. L. 96-221, Sec. 612(a)(6), added subsec. (g).
      1974 - Subsecs. (a), (b). Pub. L. 93-495, Sec. 404, inserted
    provisions relating to security interest arising by operation of
    law.
      Subsec. (e). Pub. L. 93-495, Sec. 412, inserted exemption for
    consumer credit transactions where a State agency is the creditor.
      Subsec. (f). Pub. L. 93-495, Sec. 405, added subsec. (f).

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

                     EFFECTIVE DATE OF 1974 AMENDMENT                 
      Amendment by Pub. L. 93-495 effective Oct. 28, 1974, see section
    416 of Pub. L. 93-495, set out as an Effective Date note under
    section 1665a of this title.

-End-



-CITE-
    15 USC Sec. 1636                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1636. Repealed.

-MISC1-
    Sec. 1636. Repealed. Pub. L. 96-221, title VI, Sec. 614(e)(1), Mar.
      31, 1980, 94 Stat. 180.
      Section, Pub. L. 90-321, title I, Sec. 126, May 29, 1968, 82
    Stat. 153, related to contents of periodic statements.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective on expiration of two years and six months after
    Mar. 31, 1980, with all regulations, forms, and clauses required to
    be prescribed to be promulgated at least one year prior to such
    effective date, and allowing any creditor to comply with any
    amendments, in accordance with the regulations, forms, and clauses
    prescribed by the Board prior to such effective date, see section
    625 of Pub. L. 96-221, set out as an Effective Date of 1980
    Amendment note under section 1602 of this title.

-End-



-CITE-
    15 USC Sec. 1637                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1637. Open end consumer credit plans

-STATUTE-
    (a) Required disclosures by creditor
      Before opening any account under an open end consumer credit
    plan, the creditor shall disclose to the person to whom credit is
    to be extended each of the following items, to the extent
    applicable:
        (1) The conditions under which a finance charge may be imposed,
      including the time period (if any) within which any credit
      extended may be repaid without incurring a finance charge, except
      that the creditor may, at his election and without disclosure,
      impose no such finance charge if payment is received after the
      termination of such time period. If no such time period is
      provided, the creditor shall disclose such fact.
        (2) The method of determining the balance upon which a finance
      charge will be imposed.
        (3) The method of determining the amount of the finance charge,
      including any minimum or fixed amount imposed as a finance
      charge.
        (4) Where one or more periodic rates may be used to compute the
      finance charge, each such rate, the range of balances to which it
      is applicable, and the corresponding nominal annual percentage
      rate determined by multiplying the periodic rate by the number of
      periods in a year.
        (5) Identification of other charges which may be imposed as
      part of the plan, and their method of computation, in accordance
      with regulations of the Board.
        (6) In cases where the credit is or will be secured, a
      statement that a security interest has been or will be taken in
      (A) the property purchased as part of the credit transaction, or
      (B) property not purchased as part of the credit transaction
      identified by item or type.
        (7) A statement, in a form prescribed by regulations of the
      Board of the protection provided by sections 1666 and 1666i of
      this title to an obligor and the creditor's responsibilities
      under sections 1666a and 1666i of this title. With respect to one
      billing cycle per calendar year, at intervals of not less than
      six months or more than eighteen months, the creditor shall
      transmit such statement to each obligor to whom the creditor is
      required to transmit a statement pursuant to subsection (b) of
      this section for such billing cycle.
        (8) In the case of any account under an open end consumer
      credit plan which provides for any extension of credit which is
      secured by the consumer's principal dwelling, any information
      which - 
          (A) is required to be disclosed under section 1637a(a) of
        this title; and
          (B) the Board determines is not described in any other
        paragraph of this subsection.
    (b) Statement required with each billing cycle
      The creditor of any account under an open end consumer credit
    plan shall transmit to the obligor, for each billing cycle at the
    end of which there is an outstanding balance in that account or
    with respect to which a finance charge is imposed, a statement
    setting forth each of the following items to the extent applicable:
        (1) The outstanding balance in the account at the beginning of
      the statement period.
        (2) The amount and date of each extension of credit during the
      period, and a brief identification, on or accompanying the
      statement of each extension of credit in a form prescribed by the
      Board sufficient to enable the obligor either to identify the
      transaction or to relate it to copies of sales vouchers or
      similar instruments previously furnished, except that a
      creditor's failure to disclose such information in accordance
      with this paragraph shall not be deemed a failure to comply with
      this part or this subchapter if (A) the creditor maintains
      procedures reasonably adapted to procure and provide such
      information, and (B) the creditor responds to and treats any
      inquiry for clarification or documentation as a billing error and
      an erroneously billed amount under section 1666 of this title. In
      lieu of complying with the requirements of the previous sentence,
      in the case of any transaction in which the creditor and seller
      are the same person, as defined by the Board, and such person's
      open end credit plan has fewer than 15,000 accounts, the creditor
      may elect to provide only the amount and date of each extension
      of credit during the period and the seller's name and location
      where the transaction took place if (A) a brief identification of
      the transaction has been previously furnished, and (B) the
      creditor responds to and treats any inquiry for clarification or
      documentation as a billing error and an erroneously billed amount
      under section 1666 of this title.
        (3) The total amount credited to the account during the period.
        (4) The amount of any finance charge added to the account
      during the period, itemized to show the amounts, if any, due to
      the application of percentage rates and the amount, if any,
      imposed as a minimum or fixed charge.
        (5) Where one or more periodic rates may be used to compute the
      finance charge, each such rate, the range of balances to which it
      is applicable, and, unless the annual percentage rate (determined
      under section 1606(a)(2) of this title) is required to be
      disclosed pursuant to paragraph (6), the corresponding nominal
      annual percentage rate determined by multiplying the periodic
      rate by the number of periods in a year.
        (6) Where the total finance charge exceeds 50 cents for a
      monthly or longer billing cycle, or the pro rata part of 50 cents
      for a billing cycle shorter than monthly, the total finance
      charge expressed as an annual percentage rate (determined under
      section 1606(a)(2) of this title), except that if the finance
      charge is the sum of two or more products of a rate times a
      portion of the balance, the creditor may, in lieu of disclosing a
      single rate for the total charge, disclose each such rate
      expressed as an annual percentage rate, and the part of the
      balance to which it is applicable.
        (7) The balance on which the finance charge was computed and a
      statement of how the balance was determined. If the balance is
      determined without first deducting all credits during the period,
      that fact and the amount of such payments shall also be
      disclosed.
        (8) The outstanding balance in the account at the end of the
      period.
        (9) The date by which or the period (if any) within which,
      payment must be made to avoid additional finance charges, except
      that the creditor may, at his election and without disclosure,
      impose no such additional finance charge if payment is received
      after such date or the termination of such period.
        (10) The address to be used by the creditor for the purpose of
      receiving billing inquiries from the obligor.
        (11)(A) In the case of an open end credit plan that requires a
      minimum monthly payment of not more than 4 percent of the balance
      on which finance charges are accruing, the following statement,
      located on the front of the billing statement, disclosed clearly
      and conspicuously: "Minimum Payment Warning: Making only the
      minimum payment will increase the interest you pay and the time
      it takes to repay your balance. For example, making only the
      typical 2% minimum monthly payment on a balance of $1,000 at an
      interest rate of 17% would take 88 months to repay the balance in
      full. For an estimate of the time it would take to repay your
      balance, making only minimum payments, call this toll-free
      number: ______." (the blank space to be filled in by the
      creditor).
        (B) In the case of an open end credit plan that requires a
      minimum monthly payment of more than 4 percent of the balance on
      which finance charges are accruing, the following statement, in a
      prominent location on the front of the billing statement,
      disclosed clearly and conspicuously: "Minimum Payment Warning:
      Making only the required minimum payment will increase the
      interest you pay and the time it takes to repay your balance.
      Making a typical 5% minimum monthly payment on a balance of $300
      at an interest rate of 17% would take 24 months to repay the
      balance in full. For an estimate of the time it would take to
      repay your balance, making only minimum monthly payments, call
      this toll-free number: ______." (the blank space to be filled in
      by the creditor).
        (C) Notwithstanding subparagraphs (A) and (B), in the case of a
      creditor with respect to which compliance with this subchapter is
      enforced by the Federal Trade Commission, the following
      statement, in a prominent location on the front of the billing
      statement, disclosed clearly and conspicuously: "Minimum Payment
      Warning: Making only the required minimum payment will increase
      the interest you pay and the time it takes to repay your balance.
      For example, making only the typical 5% minimum monthly payment
      on a balance of $300 at an interest rate of 17% would take 24
      months to repay the balance in full. For an estimate of the time
      it would take to repay your balance, making only minimum monthly
      payments, call the Federal Trade Commission at this toll-free
      number: ______." (the blank space to be filled in by the
      creditor). A creditor who is subject to this subparagraph shall
      not be subject to subparagraph (A) or (B).
        (D) Notwithstanding subparagraph (A), (B), or (C), in complying
      with any such subparagraph, a creditor may substitute an example
      based on an interest rate that is greater than 17 percent. Any
      creditor that is subject to subparagraph (B) may elect to provide
      the disclosure required under subparagraph (A) in lieu of the
      disclosure required under subparagraph (B).
        (E) The Board shall, by rule, periodically recalculate, as
      necessary, the interest rate and repayment period under
      subparagraphs (A), (B), and (C).
        (F)(i) The toll-free telephone number disclosed by a creditor
      or the Federal Trade Commission under subparagraph (A), (B), or
      (G), as appropriate, may be a toll-free telephone number
      established and maintained by the creditor or the Federal Trade
      Commission, as appropriate, or may be a toll-free telephone
      number established and maintained by a third party for use by the
      creditor or multiple creditors or the Federal Trade Commission,
      as appropriate. The toll-free telephone number may connect
      consumers to an automated device through which consumers may
      obtain information described in subparagraph (A), (B), or (C), by
      inputting information using a touch-tone telephone or similar
      device, if consumers whose telephones are not equipped to use
      such automated device are provided the opportunity to be
      connected to an individual from whom the information described in
      subparagraph (A), (B), or (C), as applicable, may be obtained. A
      person that receives a request for information described in
      subparagraph (A), (B), or (C) from an obligor through the toll-
      free telephone number disclosed under subparagraph (A), (B), or
      (C), as applicable, shall disclose in response to such request
      only the information set forth in the table promulgated by the
      Board under subparagraph (H)(i).
        (ii)(I) The Board shall establish and maintain for a period not
      to exceed 24 months following the effective date of the
      Bankruptcy Abuse Prevention and Consumer Protection Act of 2005,
      a toll-free telephone number, or provide a toll-free telephone
      number established and maintained by a third party, for use by
      creditors that are depository institutions (as defined in section
      1813 of title 12), including a Federal credit union or State
      credit union (as defined in section 1752 of title 12), with total
      assets not exceeding $250,000,000. The toll-free telephone number
      may connect consumers to an automated device through which
      consumers may obtain information described in subparagraph (A) or
      (B), as applicable, by inputting information using a touch-tone
      telephone or similar device, if consumers whose telephones are
      not equipped to use such automated device are provided the
      opportunity to be connected to an individual from whom the
      information described in subparagraph (A) or (B), as applicable,
      may be obtained. A person that receives a request for information
      described in subparagraph (A) or (B) from an obligor through the
      toll-free telephone number disclosed under subparagraph (A) or
      (B), as applicable, shall disclose in response to such request
      only the information set forth in the table promulgated by the
      Board under subparagraph (H)(i). The dollar amount contained in
      this subclause shall be adjusted according to an indexing
      mechanism established by the Board.
        (II) Not later than 6 months prior to the expiration of the 24-
      month period referenced in subclause (I), the Board shall submit
      to the Committee on Banking, Housing, and Urban Affairs of the
      Senate and the Committee on Financial Services of the House of
      Representatives a report on the program described in subclause
      (I).
        (G) The Federal Trade Commission shall establish and maintain a
      toll-free number for the purpose of providing to consumers the
      information required to be disclosed under subparagraph (C).
        (H) The Board shall - 
          (i) establish a detailed table illustrating the approximate
        number of months that it would take to repay an outstanding
        balance if a consumer pays only the required minimum monthly
        payments and if no other advances are made, which table shall
        clearly present standardized information to be used to disclose
        the information required to be disclosed under subparagraph
        (A), (B), or (C), as applicable;
          (ii) establish the table required under clause (i) by
        assuming - 
            (I) a significant number of different annual percentage
          rates;
            (II) a significant number of different account balances;
            (III) a significant number of different minimum payment
          amounts; and
            (IV) that only minimum monthly payments are made and no
          additional extensions of credit are obtained; and

          (iii) promulgate regulations that provide instructional
        guidance regarding the manner in which the information
        contained in the table established under clause (i) should be
        used in responding to the request of an obligor for any
        information required to be disclosed under subparagraph (A),
        (B), or (C).

        (I) The disclosure requirements of this paragraph do not apply
      to any charge card account, the primary purpose of which is to
      require payment of charges in full each month.
        (J) A creditor that maintains a toll-free telephone number for
      the purpose of providing customers with the actual number of
      months that it will take to repay the customer's outstanding
      balance is not subject to the requirements of subparagraph (A) or
      (B).
        (K) A creditor that maintains a toll-free telephone number for
      the purpose of providing customers with the actual number of
      months that it will take to repay an outstanding balance shall
      include the following statement on each billing statement:
      "Making only the minimum payment will increase the interest you
      pay and the time it takes to repay your balance. For more
      information, call this toll-free number: ______." (the blank
      space to be filled in by the creditor).
        (12) If a late payment fee is to be imposed due to the failure
      of the obligor to make payment on or before a required payment
      due date, the following shall be stated clearly and conspicuously
      on the billing statement:
          (A) The date on which that payment is due or, if different,
        the earliest date on which a late payment fee may be charged.
          (B) The amount of the late payment fee to be imposed if
        payment is made after such date.
    (c) Disclosure in credit and charge card applications and
      solicitations
      (1) Direct mail applications and solicitations
        (A) Information in tabular format
          Any application to open a credit card account for any person
        under an open end consumer credit plan, or a solicitation to
        open such an account without requiring an application, that is
        mailed to consumers shall disclose the following information,
        subject to subsection (e) of this section and section 1632(c)
        of this title:
          (i) Annual percentage rates
            (I) Each annual percentage rate applicable to extensions of
          credit under such credit plan.
            (II) Where an extension of credit is subject to a variable
          rate, the fact that the rate is variable, the annual
          percentage rate in effect at the time of the mailing, and how
          the rate is determined.
            (III) Where more than one rate applies, the range of
          balances to which each rate applies.
          (ii) Annual and other fees
            (I) Any annual fee, other periodic fee, or membership fee
          imposed for the issuance or availability of a credit card,
          including any account maintenance fee or other charge imposed
          based on activity or inactivity for the account during the
          billing cycle.
            (II) Any minimum finance charge imposed for each period
          during which any extension of credit which is subject to a
          finance charge is outstanding.
            (III) Any transaction charge imposed in connection with use
          of the card to purchase goods or services.
          (iii) Grace period
            (I) The date by which or the period within which any credit
          extended under such credit plan for purchases of goods or
          services must be repaid to avoid incurring a finance charge,
          and, if no such period is offered, such fact shall be clearly
          stated.
            (II) If the length of such "grace period" varies, the card
          issuer may disclose the range of days in the grace period,
          the minimum number of days in the grace period, or the
          average number of days in the grace period, if the disclosure
          is identified as such.
          (iv) Balance calculation method
            (I) The name of the balance calculation method used in
          determining the balance on which the finance charge is
          computed if the method used has been defined by the Board, or
          a detailed explanation of the balance calculation method used
          if the method has not been so defined.
            (II) In prescribing regulations to carry out this clause,
          the Board shall define and name not more than the 5 balance
          calculation methods determined by the Board to be the most
          commonly used methods.
        (B) Other information
          In addition to the information required to be disclosed under
        subparagraph (A), each application or solicitation to which
        such subparagraph applies shall disclose clearly and
        conspicuously the following information, subject to subsections
        (e) and (f) of this section:
          (i) Cash advance fee
            Any fee imposed for an extension of credit in the form of
          cash.
          (ii) Late fee
            Any fee imposed for a late payment.
          (iii) Over-the-limit fee
            Any fee imposed in connection with an extension of credit
          in excess of the amount of credit authorized to be extended
          with respect to such account.
      (2) Telephone solicitations
        (A) In general
          In any telephone solicitation to open a credit card account
        for any person under an open end consumer credit plan, the
        person making the solicitation shall orally disclose the
        information described in paragraph (1)(A).
        (B) Exception
          Subparagraph (A) shall not apply to any telephone
        solicitation if - 
            (i) the credit card issuer - 
              (I) does not impose any fee described in paragraph
            (1)(A)(ii)(I); or
              (II) does not impose any fee in connection with telephone
            solicitations unless the consumer signifies acceptance by
            using the card;

            (ii) the card issuer discloses clearly and conspicuously in
          writing the information described in paragraph (1) within 30
          days after the consumer requests the card, but in no event
          later than the date of delivery of the card; and
            (iii) the card issuer discloses clearly and conspicuously
          that the consumer is not obligated to accept the card or
          account and the consumer will not be obligated to pay any of
          the fees or charges disclosed unless the consumer elects to
          accept the card or account by using the card.
      (3) Applications and solicitations by other means
        (A) In general
          Any application to open a credit card account for any person
        under an open end consumer credit plan, and any solicitation to
        open such an account without requiring an application, that is
        made available to the public or contained in catalogs,
        magazines, or other publications shall meet the disclosure
        requirements of subparagraph (B), (C), or (D).
        (B) Specific information
          An application or solicitation described in subparagraph (A)
        meets the requirement of this subparagraph if such application
        or solicitation contains - 
            (i) the information - 
              (I) described in paragraph (1)(A) in the form required
            under section 1632(c) of this title, subject to subsection
            (e) of this section, and
              (II) described in paragraph (1)(B) in a clear and
            conspicuous form, subject to subsections (e) and (f) of
            this section;

            (ii) a statement, in a conspicuous and prominent location
          on the application or solicitation, that - 
              (I) the information is accurate as of the date the
            application or solicitation was printed;
              (II) the information contained in the application or
            solicitation is subject to change after such date; and
              (III) the applicant should contact the creditor for
            information on any change in the information contained in
            the application or solicitation since it was printed;

            (iii) a clear and conspicuous disclosure of the date the
          application or solicitation was printed; and
            (iv) a disclosure, in a conspicuous and prominent location
          on the application or solicitation, of a toll free telephone
          number or a mailing address at which the applicant may
          contact the creditor to obtain any change in the information
          provided in the application or solicitation since it was
          printed.
        (C) General information without any specific term
          An application or solicitation described in subparagraph (A)
        meets the requirement of this subparagraph if such application
        or solicitation - 
            (i) contains a statement, in a conspicuous and prominent
          location on the application or solicitation, that - 
              (I) there are costs associated with the use of credit
            cards; and
              (II) the applicant may contact the creditor to request
            disclosure of specific information of such costs by calling
            a toll free telephone number or by writing to an address,
            specified in the application;

            (ii) contains a disclosure, in a conspicuous and prominent
          location on the application or solicitation, of a toll free
          telephone number and a mailing address at which the applicant
          may contact the creditor to obtain such information; and
            (iii) does not contain any of the items described in
          paragraph (1).
        (D) Applications or solicitations containing subsection (a)
          disclosures
          An application or solicitation meets the requirement of this
        subparagraph if it contains, or is accompanied by - 
            (i) the disclosures required by paragraphs (1) through (6)
          of subsection (a) of this section;
            (ii) the disclosures required by subparagraphs (A) and (B)
          of paragraph (1) of this subsection included clearly and
          conspiciously (!1) (except that the provisions of section
          1632(c) of this title shall not apply); and

            (iii) a toll free telephone number or a mailing address at
          which the applicant may contact the creditor to obtain any
          change in the information provided.
        (E) Prompt response to information requests
          Upon receipt of a request for any of the information referred
        to in subparagraph (B), (C), or (D), the card issuer or the
        agent of such issuer shall promptly disclose all of the
        information described in paragraph (1).
      (4) Charge card applications and solicitations
        (A) In general
          Any application or solicitation to open a charge card account
        shall disclose clearly and conspicuously the following
        information in the form required by section 1632(c) of this
        title, subject to subsection (e) of this section:
            (i) Any annual fee, other periodic fee, or membership fee
          imposed for the issuance or availability of the charge card,
          including any account maintenance fee or other charge imposed
          based on activity or inactivity for the account during the
          billing cycle.
            (ii) Any transaction charge imposed in connection with use
          of the card to purchase goods or services.
            (iii) A statement that charges incurred by use of the
          charge card are due and payable upon receipt of a periodic
          statement rendered for such charge card account.
        (B) Other information
          In addition to the information required to be disclosed under
        subparagraph (A), each written application or solicitation to
        which such subparagraph applies shall disclose clearly and
        conspicuously the following information, subject to subsections
        (e) and (f) of this section:
          (i) Cash advance fee
            Any fee imposed for an extension of credit in the form of
          cash.
          (ii) Late fee
            Any fee imposed for a late payment.
          (iii) Over-the-limit fee
            Any fee imposed in connection with an extension of credit
          in excess of the amount of credit authorized to be extended
          with respect to such account.
        (C) Applications and solicitations by other means
          Any application to open a charge card account, and any
        solicitation to open such an account without requiring an
        application, that is made available to the public or contained
        in catalogs, magazines, or other publications shall contain - 
            (i) the information - 
              (I) described in subparagraph (A) in the form required
            under section 1632(c) of this title, subject to subsection
            (e) of this section, and
              (II) described in subparagraph (B) in a clear and
            conspicuous form, subject to subsections (e) and (f) of
            this section;

            (ii) a statement, in a conspicuous and prominent location
          on the application or solicitation, that - 
              (I) the information is accurate as of the date the
            application or solicitation was printed;
              (II) the information contained in the application or
            solicitation is subject to change after such date; and
              (III) the applicant should contact the creditor for
            information on any change in the information contained in
            the application or solicitation since it was printed;

            (iii) a clear and conspicuous disclosure of the date the
          application or solicitation was printed; and
            (iv) a disclosure, in a conspicuous and prominent location
          on the application or solicitation, of a toll free telephone
          number or a mailing address at which the applicant may
          contact the creditor to obtain any change in the information
          provided in the application or solicitation since it was
          printed.
        (D) Issuers of charge cards which provide access to open end
          consumer credit plans
          If a charge card permits the card holder to receive an
        extension of credit under an open end consumer credit plan,
        which is not maintained by the charge card issuer, the charge
        card issuer may provide the information described in
        subparagraphs (A) and (B) in the form required by such
        subparagraphs in lieu of the information required to be
        provided under paragraph (1), (2), or (3) with respect to any
        credit extended under such plan, if the charge card issuer
        discloses clearly and conspicuously to the consumer in the
        application or solicitation that - 
            (i) the charge card issuer will make an independent
          decision as to whether to issue the card;
            (ii) the charge card may arrive before the decision is made
          with respect to an extension of credit under an open end
          consumer credit plan; and
            (iii) approval by the charge card issuer does not
          constitute approval by the issuer of the extension of credit.

        The information required to be disclosed under paragraph (1)
        shall be provided to the charge card holder by the creditor
        which maintains such open end consumer credit plan before the
        first extension of credit under such plan.
        (E) Charge card defined
          For the purposes of this subsection, the term "charge card"
        means a card, plate, or other single credit device that may be
        used from time to time to obtain credit which is not subject to
        a finance charge.
      (5) Regulatory authority of the Board
        The Board may, by regulation, require the disclosure of
      information in addition to that otherwise required by this
      subsection or subsection (d) of this section, and modify any
      disclosure of information required by this subsection or
      subsection (d) of this section, in any application to open a
      credit card account for any person under an open end consumer
      credit plan or any application to open a charge card account for
      any person, or a solicitation to open any such account without
      requiring an application, if the Board determines that such
      action is necessary to carry out the purposes of, or prevent
      evasions of, any paragraph of this subsection.
      (6) Additional notice concerning "introductory rates"
        (A) In general
          Except as provided in subparagraph (B), an application or
        solicitation to open a credit card account and all promotional
        materials accompanying such application or solicitation for
        which a disclosure is required under paragraph (1), and that
        offers a temporary annual percentage rate of interest, shall - 
            (i) use the term "introductory" in immediate proximity to
          each listing of the temporary annual percentage rate
          applicable to such account, which term shall appear clearly
          and conspicuously;
            (ii) if the annual percentage rate of interest that will
          apply after the end of the temporary rate period will be a
          fixed rate, state in a clear and conspicuous manner in a
          prominent location closely proximate to the first listing of
          the temporary annual percentage rate (other than a listing of
          the temporary annual percentage rate in the tabular format
          described in section 1632(c) of this title), the time period
          in which the introductory period will end and the annual
          percentage rate that will apply after the end of the
          introductory period; and
            (iii) if the annual percentage rate that will apply after
          the end of the temporary rate period will vary in accordance
          with an index, state in a clear and conspicuous manner in a
          prominent location closely proximate to the first listing of
          the temporary annual percentage rate (other than a listing in
          the tabular format prescribed by section 1632(c) of this
          title), the time period in which the introductory period will
          end and the rate that will apply after that, based on an
          annual percentage rate that was in effect within 60 days
          before the date of mailing the application or solicitation.
        (B) Exception
          Clauses (ii) and (iii) of subparagraph (A) do not apply with
        respect to any listing of a temporary annual percentage rate on
        an envelope or other enclosure in which an application or
        solicitation to open a credit card account is mailed.
        (C) Conditions for introductory rates
          An application or solicitation to open a credit card account
        for which a disclosure is required under paragraph (1), and
        that offers a temporary annual percentage rate of interest
        shall, if that rate of interest is revocable under any
        circumstance or upon any event, clearly and conspicuously
        disclose, in a prominent manner on or with such application or
        solicitation - 
            (i) a general description of the circumstances that may
          result in the revocation of the temporary annual percentage
          rate; and
            (ii) if the annual percentage rate that will apply upon the
          revocation of the temporary annual percentage rate - 
              (I) will be a fixed rate, the annual percentage rate that
            will apply upon the revocation of the temporary annual
            percentage rate; or
              (II) will vary in accordance with an index, the rate that
            will apply after the temporary rate, based on an annual
            percentage rate that was in effect within 60 days before
            the date of mailing the application or solicitation.
        (D) Definitions
          In this paragraph - 
            (i) the terms "temporary annual percentage rate of
          interest" and "temporary annual percentage rate" mean any
          rate of interest applicable to a credit card account for an
          introductory period of less than 1 year, if that rate is less
          than an annual percentage rate that was in effect within 60
          days before the date of mailing the application or
          solicitation; and
            (ii) the term "introductory period" means the maximum time
          period for which the temporary annual percentage rate may be
          applicable.
        (E) Relation to other disclosure requirements
          Nothing in this paragraph may be construed to supersede
        subsection (a) of section 1632 of this title, or any disclosure
        required by paragraph (1) or any other provision of this
        subsection.
      (7) Internet-based solicitations
        (A) In general
          In any solicitation to open a credit card account for any
        person under an open end consumer credit plan using the
        Internet or other interactive computer service, the person
        making the solicitation shall clearly and conspicuously
        disclose - 
            (i) the information described in subparagraphs (A) and (B)
          of paragraph (1); and
            (ii) the information described in paragraph (6).
        (B) Form of disclosure
          The disclosures required by subparagraph (A) shall be - 
            (i) readily accessible to consumers in close proximity to
          the solicitation to open a credit card account; and
            (ii) updated regularly to reflect the current policies,
          terms, and fee amounts applicable to the credit card account.
        (C) Definitions
          For purposes of this paragraph - 
            (i) the term "Internet" means the international computer
          network of both Federal and non-Federal interoperable packet
          switched data networks; and
            (ii) the term "interactive computer service" means any
          information service, system, or access software provider that
          provides or enables computer access by multiple users to a
          computer server, including specifically a service or system
          that provides access to the Internet and such systems
          operated or services offered by libraries or educational
          institutions.
    (d) Disclosure prior to renewal
      (1) In general
        Except as provided in paragraph (2), a card issuer that imposes
      any fee described in subsection (c)(1)(A)(ii)(I) or (c)(4)(A)(i)
      of this section shall transmit to a consumer at least 30 days
      prior to the scheduled renewal date of the consumer's credit or
      charge card account a clear and conspicuous disclosure of - 
          (A) the date by which, the month by which, or the billing
        period at the close of which, the account will expire if not
        renewed;
          (B) the information described in subsection (c)(1)(A) or
        (c)(4)(A) of this section that would apply if the account were
        renewed, subject to subsection (e) of this section; and
          (C) the method by which the consumer may terminate continued
        credit availability under the account.
      (2) Special rule for certain disclosures
        (A) In general
          The disclosures required by this subsection may be provided -
        
            (i) prior to posting a fee described in subsection
          (c)(1)(A)(ii)(I) or (c)(4)(A)(i) of this section to the
          account, or
            (ii) with the periodic billing statement first disclosing
          that the fee has been posted to the account.
        (B) Limitation on use of special rule
          Disclosures may be provided under subparagraph (A) only if - 
            (i) the consumer is given a 30-day period to avoid payment
          of the fee or to have the fee recredited to the account in
          any case where the consumer does not wish to continue the
          availability of the credit; and
            (ii) the consumer is permitted to use the card during such
          period without incurring an obligation to pay such fee.
      (3) Short-term renewals
        The Board may by regulation provide for fewer disclosures than
      are required by paragraph (1) in the case of an account which is
      renewable for a period of less than 6 months.
    (e) Other rules for disclosures under subsections (c) and (d)
      (1) Fees determined on the basis of a percentage
        If the amount of any fee required to be disclosed under
      subsection (c) or (d) of this section is determined on the basis
      of a percentage of another amount, the percentage used in making
      such determination and the identification of the amount against
      which such percentage is applied shall be disclosed in lieu of
      the amount of such fee.
      (2) Disclosure only of fees actually imposed
        If a credit or charge card issuer does not impose any fee
      required to be disclosed under any provision of subsection (c) or
      (d) of this section, such provision shall not apply with respect
      to such issuer.
    (f) Disclosure of range of certain fees which vary by State allowed
      If the amount of any fee required to be disclosed by a credit or
    charge card issuer under paragraph (1)(B), (3)(B)(i)(II), (4)(B),
    or (4)(C)(i)(II) of subsection (c) of this section varies from
    State to State, the card issuer may disclose the range of such fees
    for purposes of subsection (c) of this section in lieu of the
    amount for each applicable State, if such disclosure includes a
    statement that the amount of such fee varies from State to State.
    (g) Insurance in connection with certain open end credit card plans
      (1) Change in insurance carrier
        Whenever a card issuer that offers any guarantee or insurance
      for repayment of all or part of the outstanding balance of an
      open end credit card plan proposes to change the person providing
      that guarantee or insurance, the card issuer shall send each
      insured consumer written notice of the proposed change not less
      than 30 days prior to the change, including notice of any
      increase in the rate or substantial decrease in coverage or
      service which will result from such change. Such notice may be
      included on or with the monthly statement provided to the
      consumer prior to the month in which the proposed change would
      take effect.
      (2) Notice of new insurance coverage
        In any case in which a proposed change described in paragraph
      (1) occurs, the insured consumer shall be given the name and
      address of the new guarantor or insurer and a copy of the policy
      or group certificate containing the basic terms and conditions,
      including the premium rate to be charged.
      (3) Right to discontinue guarantee or insurance
        The notices required under paragraphs (1) and (2) shall each
      include a statement that the consumer has the option to
      discontinue the insurance or guarantee.
      (4) No preemption of State law
        No provision of this subsection shall be construed as
      superseding any provision of State law which is applicable to the
      regulation of insurance.
      (5) Board definition of substantial decrease in coverage or
        service
        The Board shall define, in regulations, what constitutes a
      "substantial decrease in coverage or service" for purposes of
      paragraph (1).
    (h) Prohibition on certain actions for failure to incur finance
      charges
      A creditor of an account under an open end consumer credit plan
    may not terminate an account prior to its expiration date solely
    because the consumer has not incurred finance charges on the
    account. Nothing in this subsection shall prohibit a creditor from
    terminating an account for inactivity in 3 or more consecutive
    months.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 127, May 29, 1968, 82 Stat. 153;
    Pub. L. 93-495, title III, Secs. 304, 305, title IV, Secs. 411,
    415, Oct. 28, 1974, 88 Stat. 1511, 1519, 1521; Pub. L. 96-221,
    title VI, Sec. 613(a)-(e), Mar. 31, 1980, 94 Stat. 176, 177; Pub.
    L. 100-583, Secs. 2(a), 6, Nov. 3, 1988, 102 Stat. 2960, 2968; Pub.
    L. 100-709, Sec. 2(b), Nov. 23, 1988, 102 Stat. 4729; Pub. L. 109-
    8, title XIII, Secs. 1301(a), 1303(a), 1304(a), 1305(a), 1306(a),
    Apr. 20, 2005, 119 Stat. 204, 209, 211, 212.)


-STATAMEND-
       ENACTMENT OF SUBSECTIONS (B)(11), (12), (C)(6), (7), AND (H)   
      Subsections (b)(11), (12), (c)(6), (7), and (h) of this section
    not effective until the later of 12 to 18 months after Apr. 20,
    2005, or 12 months after date of publication by Board of Governors
    of the Federal Reserve System of final regulations implementing the
    requirements of each of those subsections, see Effective Date of
    2005 Amendment note below.

-REFTEXT-
                            REFERENCES IN TEXT                        
      For effective date of the Bankruptcy Abuse Prevention and
    Consumer Protection Act of 2005, referred to in subsec.
    (b)(11)(F)(ii)(I), as being 180 days after Apr. 20, 2005, except as
    otherwise provided, see section 1501 of Pub. L. 109-8, set out as
    an Effective Date of 2005 Amendment note under section 101 of Title
    11, Bankruptcy. For effective date of subsec. (b)(11) of this
    section, see Effective Date of 2005 Amendment note below.


-MISC1-
                                AMENDMENTS                            
      2005 - Subsec. (b)(11). Pub. L. 109-8, Sec. 1301(a), added par.
    (11).
      Subsec. (b)(12). Pub. L. 109-8, Sec. 1305(a), added par. (12).
      Subsec. (c)(6). Pub. L. 109-8, Sec. 1303(a), added par. (6).
      Subsec. (c)(7). Pub. L. 109-8, Sec. 1304(a), added par. (7).
      Subsec. (h). Pub. L. 109-8, Sec. 1306(a), added subsec. (h).
      1988 - Subsec. (a)(8). Pub. L. 100-709 added par. (8).
      Subsecs. (c) to (f). Pub. L. 100-583, Sec. 2(a), added subsecs.
    (c) to (f).
      Subsec. (g). Pub. L. 100-583, Sec. 6, added subsec. (g).
      1980 - Subsec. (a)(1). Pub. L. 96-221, Sec. 613(a)(1), inserted
    provisions requiring the creditor to disclose that no time period
    is provided.
      Subsec. (a)(5). Pub. L. 96-221, Sec. 613(a)(2), (3), redesignated
    par. (6) as (5) and inserted provisions relating to identification
    of other charges, and regulations by the Board. Former par. (5),
    relating to elective rights of the creditor, was struck out.
      Subsec. (a)(6). Pub. L. 96-221, Sec. 613(a)(2), (3), redesignated
    par. (7) as (6) and revised nomenclature and expanded statement
    requirements. Former par. (6) redesignated (5).
      Subsec. (a)(7), (8). Pub. L. 96-221, Sec. 613(a)(2), (d),
    redesignated par. (8) as (7) and substituted provisions relating to
    one billing cycle per calendar year, for provisions relating to
    each of two billing cycles per year. Former par. (7) redesignated
    (6).
      Subsec. (b)(2). Pub. L. 96-221, Sec. 613(b), inserted provisions
    relating to failure of the creditor to disclose information in
    accordance with this paragraph, and made minor changes in
    phraseology.
      Subsec. (b)(7) to (11). Pub. L. 96-221, Sec. 613(c), struck out
    par. (7) which related to elective rights of the creditor, and
    redesignated pars. (8) to (11) as (7) to (10), respectively.
      Subsec. (c). Pub. L. 96-221, Sec. 613(e), struck out subsec. (c)
    which related to the time for making disclosures with respect to
    open end consumer credit plans having an outstanding balance of
    more than $1 at or after the close of the first full billing cycle.
      1974 - Subsec. (a)(1). Pub. L. 93-495, Sec. 415(1), inserted
    exception relating to nonimposition of a finance charge at the
    election of the creditor and without disclosure.
      Subsec. (a)(8). Pub. L. 93-495, Sec. 304(a), added par. (8).
      Subsec. (b)(2). Pub. L. 93-495, Sec. 411, substituted provisions
    requiring a brief identification on or accompanying the statement
    of credit extension sufficient to enable the obligor to identify
    the transaction or relate it to copies of sales vouchers or similar
    instruments previously furnished, for provisions requiring for
    purchases a brief identification, unless previously furnished, of
    the goods or services purchased.
      Subsec. (b)(10). Pub. L. 93-495, Sec. 415(2), inserted exception
    relating to nonimposition of additional finance charge at the
    election of the creditor and without disclosure.
      Subsec. (b)(11). Pub. L. 93-495, Sec. 305, added par. (11).
      Subsec. (c). Pub. L. 93-495, Sec. 304(b), substituted provisions
    relating to disclosure requirements in a notice mailed or delivered
    to the obligor not later than the time of mailing the next
    statement required by subsec. (b) of this section, for provisions
    relating to disclosure requirements in a notice mailed or delivered
    to the obligor not later than thirty days after July 1, 1969.

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Pub. L. 109-8, title XIII, Sec. 1301(b)(2), Apr. 20, 2005, 119
    Stat. 207, provided that: "Section 127(b)(11) of the Truth in
    Lending Act [subsec. (b)(11) of this section], as added by
    subsection (a) of this section, and the regulations issued under
    paragraph (1) of this subsection [set out as a note under this
    section] shall not take effect until the later of - 
        "(A) 18 months after the date of enactment of this Act [Apr.
      20, 2005]; or
        "(B) 12 months after the publication of such final regulations
      by the Board [of Governors of the Federal Reserve System]."
      Pub. L. 109-8, title XIII, Sec. 1303(b)(2), Apr. 20, 2005, 119
    Stat. 211, provided that: "Section 127(c)(6) of the Truth in
    Lending Act [subsec. (c)(6) of this section], as added by this
    section, and regulations issued under paragraph (1) of this
    subsection [set out as a note under this section] shall not take
    effect until the later of - 
        "(A) 12 months after the date of enactment of this Act [Apr.
      20, 2005]; or
        "(B) 12 months after the date of publication of such final
      regulations by the Board [of Governors of the Federal Reserve
      System]."
      Pub. L. 109-8, title XIII, Sec. 1304(b)(2), Apr. 20, 2005, 119
    Stat. 212, provided that: "The amendment made by subsection (a)
    [amending this section] and the regulations issued under paragraph
    (1) of this subsection [set out as a note under this section] shall
    not take effect until the later of - 
        "(A) 12 months after the date of enactment of this Act [Apr.
      20, 2005]; or
        "(B) 12 months after the date of publication of such final
      regulations by the Board [of Governors of the Federal Reserve
      System]."
      Pub. L. 109-8, title XIII, Sec. 1305(b)(2), Apr. 20, 2005, 119
    Stat. 212, provided that: "The amendment made by subsection (a)
    [amending this section] and regulations issued under paragraph (1)
    of this subsection [set out as a note under this section] shall not
    take effect until the later of - 
        "(A) 12 months after the date of enactment of this Act [Apr.
      20, 2005]; or
        "(B) 12 months after the date of publication of such final
      regulations by the Board [of Governors of the Federal Reserve
      System]."
      Pub. L. 109-8, title XIII, Sec. 1306(b)(2), Apr. 20, 2005, 119
    Stat. 212, provided that: "The amendment made by subsection (a)
    [amending this section] and regulations issued under paragraph (1)
    of this subsection [set out as a note under this section] shall not
    take effect until the later of - 
        "(A) 12 months after the date of enactment of this Act [Apr.
      20, 2005]; or
        "(B) 12 months after the date of publication of such final
      regulations by the Board [of Governors of the Federal Reserve
      System]."

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      For effective date of amendments by Pub. L. 100-709, see
    Regulations; Effective Date note below.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

                     EFFECTIVE DATE OF 1974 AMENDMENT                 
      For effective date of amendment by sections 304 and 305 of Pub.
    L. 93-495, see section 308 of Pub. L. 93-495, set out as an
    Effective Date note under section 1666 of this title.
      For effective date of amendment by section 411 of Pub. L. 93-495,
    see section 416 of Pub. L. 93-495, set out as an Effective Date
    note under section 1665a of this title.
      Amendment by section 415 of Pub. L. 93-495 effective Oct. 28,
    1974, see section 416 of Pub. L. 93-495, set out as an Effective
    Date note under section 1665a of this title.

                                REGULATIONS                            
      Pub. L. 109-8, title XIII, Sec. 1301(b)(1), Apr. 20, 2005, 119
    Stat. 207, provided that: "The Board of Governors of the Federal
    Reserve System (hereafter in this title [amending this section and
    sections 1637a, 1638, 1664, and 1665b of this title and enacting
    provisions set out as notes under this section and section 1637a of
    this title] referred to as the 'Board') shall promulgate
    regulations implementing the requirements of section 127(b)(11) of
    the Truth in Lending Act [subsec. (b)(11) of this section], as
    added by subsection (a) of this section."
      Pub. L. 109-8, title XIII, Sec. 1303(b)(1), Apr. 20, 2005, 119
    Stat. 211, provided that: "The Board [of Governors of the Federal
    Reserve System] shall promulgate regulations implementing the
    requirements of section 127(c)(6) of the Truth in Lending Act
    [subsec. (c)(6) of this section], as added by this section."
      Pub. L. 109-8, title XIII, Sec. 1304(b)(1), Apr. 20, 2005, 119
    Stat. 211, provided that: "The Board [of Governors of the Federal
    Reserve System] shall promulgate regulations implementing the
    requirements of section 127(c)(7) of the Truth in Lending Act
    [subsec. (c)(7) of this section], as added by this section."
      Pub. L. 109-8, title XIII, Sec. 1305(b)(1), Apr. 20, 2005, 119
    Stat. 212, provided that: "The Board [of Governors of the Federal
    Reserve System] shall promulgate regulations implementing the
    requirements of section 127(b)(12) of the Truth in Lending Act
    [subsec. (b)(12) of this section], as added by this section."
      Pub. L. 109-8, title XIII, Sec. 1306(b)(1), Apr. 20, 2005, 119
    Stat. 212, provided that: "The Board [of Governors of the Federal
    Reserve System] shall promulgate regulations implementing the
    requirements of section 127(h) of the Truth in Lending Act [subsec.
    (h) of this section], as added by this section."
      Pub. L. 109-8, title XIII, Sec. 1309, Apr. 20, 2005, 119 Stat.
    213, provided that:
      "(a) Regulations. - Not later than 6 months after the date of
    enactment of this Act [Apr. 20, 2005], the Board [of Governors of
    the Federal Reserve System], in consultation with the other Federal
    banking agencies (as defined in section 3 of the Federal Deposit
    Insurance Act [12 U.S.C. 1813]), the National Credit Union
    Administration Board, and the Federal Trade Commission, shall
    promulgate regulations to provide guidance regarding the meaning of
    the term 'clear and conspicuous', as used in subparagraphs (A),
    (B), and (C) of section 127(b)(11) and clauses (ii) and (iii) of
    section 127(c)(6)(A) of the Truth in Lending Act [subsecs. (b)(11)
    and (c)(6)(A) of this section].
      "(b) Examples. - Regulations promulgated under subsection (a)
    shall include examples of clear and conspicuous model disclosures
    for the purposes of disclosures required by the provisions of the
    Truth in Lending Act [15 U.S.C. 1601 et seq.] referred to in
    subsection (a).
      "(c) Standards. - In promulgating regulations under this section,
    the Board [of Governors of the Federal Reserve System] shall ensure
    that the clear and conspicuous standard required for disclosures
    made under the provisions of the Truth in Lending Act referred to
    in subsection (a) can be implemented in a manner which results in
    disclosures which are reasonably understandable and designed to
    call attention to the nature and significance of the information in
    the notice."

                        REGULATIONS; EFFECTIVE DATE                    
      For provisions relating to promulgation of regulations to
    implement amendment by Pub. L. 100-709, and effective date of such
    amendment in connection with those regulations, see section 7 of
    Pub. L. 100-709, set out as a note under section 1637a of this
    title.
      Section 7 of Pub. L. 100-583 provided that: "Any regulation
    required to be prescribed by the Board under the amendments made by
    section 2 [amending this section and section 1632 of this title]
    shall - 
        "(1) take effect not later than the end of the 150-day period
      beginning on the date of the enactment of this Act [Nov. 3,
      1988]; and
        "(2) apply only with respect to applications, solicitations,
      and other material distributed after the end of the 150-day
      period beginning after the end of the period referred to in
      paragraph (1), except that - 
          "(A) in the case of applications and solicitations subject to
        paragraph (3) or (4)(C) of section 127(c) of the Truth in
        Lending Act [15 U.S.C. 1637(c)(3), (4)(C)] (as added by section
        2), such period shall be 240 days; and
          "(B) any card issuer may, at its option, comply with the
        requirements of the amendments made by this Act [see Short
        Title of 1988 Amendment note under section 1601 of this title]
        prior to the applicable effective date, in which case the
        amendments made by this Act shall be fully applicable to such
        card issuer."

                            REPORTS TO CONGRESS                        
      Section 8 of Pub. L. 100-583 provided that: "Not later than 1
    year after the regulations prescribed under section 7 of this Act
    [set out as a note above] become effective and annually thereafter,
    the Board of Governors of the Federal Reserve System shall transmit
    to the Congress a report containing an assessment by the Board of
    the profitability of credit card operations of depository
    institutions, including an analysis of any impact of the amendments
    made by this Act [see Short Title of 1988 Amendment note under
    section 1601 of this title] on such profitability."

-FOOTNOTE-
    (!1) So in original. Probably should be "conspicuously".


-End-



-CITE-
    15 USC Sec. 1637a                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1637a. Disclosure requirements for open end consumer credit
      plans secured by consumer's principal dwelling

-STATUTE-
    (a) Application disclosures
      In the case of any open end consumer credit plan which provides
    for any extension of credit which is secured by the consumer's
    principal dwelling, the creditor shall make the following
    disclosures in accordance with subsection (b) of this section:
      (1) Fixed annual percentage rate
        Each annual percentage rate imposed in connection with
      extensions of credit under the plan and a statement that such
      rate does not include costs other than interest.
      (2) Variable percentage rate
        In the case of a plan which provides for variable rates of
      interest on credit extended under the plan - 
          (A) a description of the manner in which such rate will be
        computed and a statement that such rate does not include costs
        other than interest;
          (B) a description of the manner in which any changes in the
        annual percentage rate will be made, including - 
            (i) any negative amortization and interest rate carryover;
            (ii) the timing of any such changes;
            (iii) any index or margin to which such changes in the rate
          are related; and
            (iv) a source of information about any such index;

          (C) if an initial annual percentage rate is offered which is
        not based on an index - 
            (i) a statement of such rate and the period of time such
          initial rate will be in effect; and
            (ii) a statement that such rate does not include costs
          other than interest;

          (D) a statement that the consumer should ask about the
        current index value and interest rate;
          (E) a statement of the maximum amount by which the annual
        percentage rate may change in any 1-year period or a statement
        that no such limit exists;
          (F) a statement of the maximum annual percentage rate that
        may be imposed at any time under the plan;
          (G) subject to subsection (b)(3) of this section, a table,
        based on a $10,000 extension of credit, showing how the annual
        percentage rate and the minimum periodic payment amount under
        each repayment option of the plan would have been affected
        during the preceding 15-year period by changes in any index
        used to compute such rate;
          (H) a statement of - 
            (i) the maximum annual percentage rate which may be imposed
          under each repayment option of the plan;
            (ii) the minimum amount of any periodic payment which may
          be required, based on a $10,000 outstanding balance, under
          each such option when such maximum annual percentage rate is
          in effect; and
            (iii) the earliest date by which such maximum annual
          interest rate may be imposed; and

          (I) a statement that interest rate information will be
        provided on or with each periodic statement.
      (3) Other fees imposed by the creditor
        An itemization of any fees imposed by the creditor in
      connection with the availability or use of credit under such
      plan, including annual fees, application fees, transaction fees,
      and closing costs (including costs commonly described as
      "points"), and the time when such fees are payable.
      (4) Estimates of fees which may be imposed by third parties
        (A) Aggregate amount
          An estimate, based on the creditor's experience with such
        plans and stated as a single amount or as a reasonable range,
        of the aggregate amount of additional fees that may be imposed
        by third parties (such as governmental authorities, appraisers,
        and attorneys) in connection with opening an account under the
        plan.
        (B) Statement of availability
          A statement that the consumer may ask the creditor for a good
        faith estimate by the creditor of the fees that may be imposed
        by third parties.
      (5) Statement of risk of loss of dwelling
        A statement that - 
          (A) any extension of credit under the plan is secured by the
        consumer's dwelling; and
          (B) in the event of any default, the consumer risks the loss
        of the dwelling.
      (6) Conditions to which disclosed terms are subject
        (A) Period during which such terms are available
          A clear and conspicuous statement - 
            (i) of the time by which an application must be submitted
          to obtain the terms disclosed; or
            (ii) if applicable, that the terms are subject to change.
        (B) Right of refusal if certain terms change
          A statement that - 
            (i) the consumer may elect not to enter into an agreement
          to open an account under the plan if any term changes (other
          than a change contemplated by a variable feature of the plan)
          before any such agreement is final; and
            (ii) if the consumer makes an election described in clause
          (i), the consumer is entitled to a refund of all fees paid in
          connection with the application.
        (C) Retention of information
          A statement that the consumer should make or otherwise retain
        a copy of information disclosed under this subparagraph.
      (7) Rights of creditor with respect to extensions of credit
        A statement that - 
          (A) under certain conditions, the creditor may terminate any
        account under the plan and require immediate repayment of any
        outstanding balance, prohibit any additional extension of
        credit to the account, or reduce the credit limit applicable to
        the account; and
          (B) the consumer may receive, upon request, more specific
        information about the conditions under which the creditor may
        take any action described in subparagraph (A).
      (8) Repayment options and minimum periodic payments
        The repayment options under the plan, including - 
          (A) if applicable, any differences in repayment options with
        regard to - 
            (i) any period during which additional extensions of credit
          may be obtained; and
            (ii) any period during which repayment is required to be
          made and no additional extensions of credit may be obtained;

          (B) the length of any repayment period, including any
        differences in the length of any repayment period with regard
        to the periods described in clauses (i) and (ii) of
        subparagraph (A); and
          (C) an explanation of how the amount of any minimum monthly
        or periodic payment will be determined under each such option,
        including any differences in the determination of any such
        amount with regard to the periods described in clauses (i) and
        (ii) of subparagraph (A).
      (9) Example of minimum payments and maximum repayment period
        An example, based on a $10,000 outstanding balance and the
      interest rate (other than a rate not based on the index under the
      plan) which is, or was recently, in effect under such plan,
      showing the minimum monthly or periodic payment, and the time it
      would take to repay the entire $10,000 if the consumer paid only
      the minimum periodic payments and obtained no additional
      extensions of credit.
      (10) Statement concerning balloon payments
        If, under any repayment option of the plan, the payment of not
      more than the minimum periodic payments required under such
      option over the length of the repayment period - 
          (A) would not repay any of the principal balance; or
          (B) would repay less than the outstanding balance by the end
        of such period,

      as the case may be, a statement of such fact, including an
      explicit statement that at the end of such repayment period a
      balloon payment (as defined in section 1665b(f) of this title)
      would result which would be required to be paid in full at that
      time.
      (11) Negative amortization
        If applicable, a statement that - 
          (A) any limitation in the plan on the amount of any increase
        in the minimum payments may result in negative amortization;
          (B) negative amortization increases the outstanding principal
        balance of the account; and
          (C) negative amortization reduces the consumer's equity in
        the consumer's dwelling.
      (12) Limitations and minimum amount requirements on extensions of
        credit
        (A) Number and dollar amount limitations
          Any limitation contained in the plan on the number of
        extensions of credit and the amount of credit which may be
        obtained during any month or other defined time period.
        (B) Minimum balance and other transaction amount requirements
          Any requirement which establishes a minimum amount for - 
            (i) the initial extension of credit to an account under the
          plan;
            (ii) any subsequent extension of credit to an account under
          the plan; or
            (iii) any outstanding balance of an account under the plan.
      (13) Statement regarding tax deductibility
        A statement that - 
          (A) the consumer should consult a tax advisor regarding the
        deductibility of interest and charges under the plan; and
          (B) in any case in which the extension of credit exceeds the
        fair market value (as defined under title 26) of the dwelling,
        the interest on the portion of the credit extension that is
        greater than the fair market value of the dwelling is not tax
        deductible for Federal income tax purposes.
      (14) Disclosure requirements established by Board
        Any other term which the Board requires, in regulations, to be
      disclosed.
    (b) Time and form of disclosures
      (1) Time of disclosure
        (A) In general
          The disclosures required under subsection (a) of this section
        with respect to any open end consumer credit plan which
        provides for any extension of credit which is secured by the
        consumer's principal dwelling and the pamphlet required under
        subsection (e) of this section shall be provided to any
        consumer at the time the creditor distributes an application to
        establish an account under such plan to such consumer.
        (B) Telephone, publications, and third party applications
          In the case of telephone applications, applications contained
        in magazines or other publications, or applications provided by
        a third party, the disclosures required under subsection (a) of
        this section and the pamphlet required under subsection (e) of
        this section shall be provided by the creditor before the end
        of the 3-day period beginning on the date the creditor receives
        a completed application from a consumer.
      (2) Form
        (A) In general
          Except as provided in paragraph (1)(B), the disclosures
        required under subsection (a) of this section shall be provided
        on or with any application to establish an account under an
        open end consumer credit plan which provides for any extension
        of credit which is secured by the consumer's principal
        dwelling.
        (B) Segregation of required disclosures from other information
          The disclosures required under subsection (a) of this section
        shall be conspicuously segregated from all other terms, data,
        or additional information provided in connection with the
        application, either by grouping the disclosures separately on
        the application form or by providing the disclosures on a
        separate form, in accordance with regulations of the Board.
        (C) Precedence of certain information
          The disclosures required by paragraphs (5), (6), and (7) of
        subsection (a) of this section shall precede all of the other
        required disclosures.
        (D) Special provision relating to variable interest rate
          information
          Whether or not the disclosures required under subsection (a)
        of this section are provided on the application form, the
        variable rate information described in subsection (a)(2) of
        this section may be provided separately from the other
        information required to be disclosed.
      (3) Requirement for historical table
        In preparing the table required under subsection (a)(2)(G) of
      this section, the creditor shall consistently select one rate of
      interest for each year and the manner of selecting the rate from
      year to year shall be consistent with the plan.
    (c) Third party applications
      In the case of an application to open an account under any open
    end consumer credit plan described in subsection (a) of this
    section which is provided to a consumer by any person other than
    the creditor - 
        (1) such person shall provide such consumer with - 
          (A) the disclosures required under subsection (a) of this
        section with respect to such plan, in accordance with
        subsection (b) of this section; and
          (B) the pamphlet required under subsection (e) of this
        section; or

        (2) if such person cannot provide specific terms about the plan
      because specific information about the plan terms is not
      available, no nonrefundable fee may be imposed in connection with
      such application before the end of the 3-day period beginning on
      the date the consumer receives the disclosures required under
      subsection (a) of this section with respect to the application.
    (d) "Principal dwelling" defined
      For purposes of this section and sections 1647 and 1665b of this
    title, the term "principal dwelling" includes any second or
    vacation home of the consumer.
    (e) Pamphlet
      In addition to the disclosures required under subsection (a) of
    this section with respect to an application to open an account
    under any open end consumer credit plan described in such
    subsection, the creditor or other person providing such disclosures
    to the consumer shall provide - 
        (1) a pamphlet published by the Board pursuant to section 4 of
      the Home Equity Consumer Protection Act of 1988; or
        (2) any pamphlet which provides substantially similar
      information to the information described in such section, as
      determined by the Board.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 127A, as added Pub. L. 100-709, Sec.
    2(a), Nov. 23, 1988, 102 Stat. 4725; amended Pub. L. 109-8, title
    XIII, Sec. 1302(a)(1), Apr. 20, 2005, 119 Stat. 208.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 4 of the Home Equity Consumer Protection Act of 1988,
    referred to in subsec. (e)(1), is section 4 of Pub. L. 100-709,
    which is set out as a note below.


-MISC1-
                                AMENDMENTS                            
      2005 - Subsec. (a)(13). Pub. L. 109-8 substituted "tax
    deductibility" for "consultation of tax advisor" in heading,
    designated existing provisions as introductory provisions and
    subpar. (A), inserted dash, substituted "; and" for period at end
    of subpar. (A), and added subpar. (B).

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-8 effective 180 days after Apr. 20,
    2005, and not applicable with respect to cases commenced under
    Title 11, Bankruptcy, before such effective date, except as
    otherwise provided, see section 1501 of Pub. L. 109-8, set out as a
    note under section 101 of Title 11.

                              EFFECTIVE DATE                          
      For effective date of section, see Regulations; Effective Date
    note below.

                                REGULATIONS                            
      Pub. L. 109-8, title XIII, Sec. 1302(c), Apr. 20, 2005, 119 Stat.
    209, provided that:
      "(1) In general. - The Board [of Governors of the Federal Reserve
    System] shall promulgate regulations implementing the amendments
    made by this section [amending this section and sections 1638,
    1664, and 1665b of this title].
      "(2) Effective date. - Regulations issued under paragraph (1)
    shall not take effect until the later of - 
        "(A) 12 months after the date of enactment of this Act [Apr.
      20, 2005]; or
        "(B) 12 months after the date of publication of such final
      regulations by the Board."

                        REGULATIONS; EFFECTIVE DATE                    
      Section 7 of Pub. L. 100-709 provided that:
      "(a) Regulations. - Before the end of the 60-day period beginning
    on the date of the enactment of this Act [Nov. 23, 1988], the Board
    of Governors of the Federal Reserve System shall prescribe such
    regulations as may be necessary to carry out the proposes [sic] of
    the amendments made by this Act [enacting this section and sections
    1647 and 1665b of this title, amending sections 1632 and 1637 of
    this title, and enacting provisions set out as notes under this
    section and section 1601 of this title].
      "(b) Effective Date. - The amendments made by this Act, and the
    regulations prescribed pursuant to subsection (a) with respect to
    such amendments, shall apply to - 
        "(1) any agreement to open an account under an open end
      consumer credit plan under which extensions of credit are secured
      by a consumer's principal dwelling which is entered into after
      the end of the 5-month period beginning on the date on which the
      regulations prescribed under subsection (a) become final; and
        "(2) any application to open such an account which is
      distributed by, or received by a creditor, after the end of such
      5-month period.
      "(c) Voluntary Compliance. - Notwithstanding subsection (b), any
    creditor may comply with the amendments made by this Act, in
    accordance with the regulations prescribed by the Board, before the
    effective date established under such subsection."

                            CONSUMER EDUCATION                        
      Section 4 of Pub. L. 100-709 provided that: "The Board of
    Governors of the Federal Reserve System shall develop and prepare a
    pamphlet for distribution to consumers which contains - 
        "(1) a general description of open end consumer credit plans
      secured by the consumer's principal dwelling and the terms and
      conditions under which such loans are generally extended; and
        "(2) a discussion of the potential advantages and disadvantages
      of such plans, including how to compare among home equity plans
      and between home equity and closed end credit plans."

-End-



-CITE-
    15 USC Sec. 1638                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1638. Transactions other than under an open end credit plan

-STATUTE-
    (a) Required disclosures by creditor
      For each consumer credit transaction other than under an open end
    credit plan, the creditor shall disclose each of the following
    items, to the extent applicable:
        (1) The identity of the creditor required to make disclosure.
        (2)(A) The "amount financed", using that term, which shall be
      the amount of credit of which the consumer has actual use. This
      amount shall be computed as follows, but the computations need
      not be disclosed and shall not be disclosed with the disclosures
      conspicuously segregated in accordance with subsection (b)(1) of
      this section:
          (i) take the principal amount of the loan or the cash price
        less downpayment and trade-in;
          (ii) add any charges which are not part of the finance charge
        or of the principal amount of the loan and which are financed
        by the consumer, including the cost of any items excluded from
        the finance charge pursuant to section 1605 of this title; and
          (iii) subtract any charges which are part of the finance
        charge but which will be paid by the consumer before or at the
        time of the consummation of the transaction, or have been
        withheld from the proceeds of the credit.

        (B) In conjunction with the disclosure of the amount financed,
      a creditor shall provide a statement of the consumer's right to
      obtain, upon a written request, a written itemization of the
      amount financed. The statement shall include spaces for a "yes"
      and "no" indication to be initialed by the consumer to indicate
      whether the consumer wants a written itemization of the amount
      financed. Upon receiving an affirmative indication, the creditor
      shall provide, at the time other disclosures are required to be
      furnished, a written itemization of the amount financed. For the
      purposes of this subparagraph, "itemization of the amount
      financed" means a disclosure of the following items, to the
      extent applicable:
          (i) the amount that is or will be paid directly to the
        consumer;
          (ii) the amount that is or will be credited to the consumer's
        account to discharge obligations owed to the creditor;
          (iii) each amount that is or will be paid to third persons by
        the creditor on the consumer's behalf, together with an
        identification of or reference to the third person; and
          (iv) the total amount of any charges described in the
        preceding subparagraph (A)(iii).

        (3) The "finance charge", not itemized, using that term.
        (4) The finance charge expressed as an "annual percentage
      rate", using that term. This shall not be required if the amount
      financed does not exceed $75 and the finance charge does not
      exceed $5, or if the amount financed exceeds $75 and the finance
      charge does not exceed $7.50.
        (5) The sum of the amount financed and the finance charge,
      which shall be termed the "total of payments".
        (6) The number, amount, and due dates or period of payments
      scheduled to repay the total of payments.
        (7) In a sale of property or services in which the seller is
      the creditor required to disclose pursuant to section 1631(b) of
      this title, the "total sale price", using that term, which shall
      be the total of the cash price of the property or services,
      additional charges, and the finance charge.
        (8) Descriptive explanations of the terms "amount financed",
      "finance charge", "annual percentage rate", "total of payments",
      and "total sale price" as specified by the Board. The descriptive
      explanation of "total sale price" shall include reference to the
      amount of the downpayment.
        (9) Where the credit is secured, a statement that a security
      interest has been taken in (A) the property which is purchased as
      part of the credit transaction, or (B) property not purchased as
      part of the credit transaction identified by item or type.
        (10) Any dollar charge or percentage amount which may be
      imposed by a creditor solely on account of a late payment, other
      than a deferral or extension charge.
        (11) A statement indicating whether or not the consumer is
      entitled to a rebate of any finance charge upon refinancing or
      prepayment in full pursuant to acceleration or otherwise, if the
      obligation involves a precomputed finance charge. A statement
      indicating whether or not a penalty will be imposed in those same
      circumstances if the obligation involves a finance charge
      computed from time to time by application of a rate to the unpaid
      principal balance.
        (12) A statement that the consumer should refer to the
      appropriate contract document for any information such document
      provides about nonpayment, default, the right to accelerate the
      maturity of the debt, and prepayment rebates and penalties.
        (13) In any residential mortgage transaction, a statement
      indicating whether a subsequent purchaser or assignee of the
      consumer may assume the debt obligation on its original terms and
      conditions.
        (14) In the case of any variable interest rate residential
      mortgage transaction, in disclosures provided at application as
      prescribed by the Board for a variable rate transaction secured
      by the consumer's principal dwelling, at the option of the
      creditor, a statement that the periodic payments may increase or
      decrease substantially, and the maximum interest rate and payment
      for a $10,000 loan originated at a recent interest rate, as
      determined by the Board, assuming the maximum periodic increases
      in rates and payments under the program, or a historical example
      illustrating the effects of interest rate changes implemented
      according to the loan program.
        (15) In the case of a consumer credit transaction that is
      secured by the principal dwelling of the consumer, in which the
      extension of credit may exceed the fair market value of the
      dwelling, a clear and conspicuous statement that - 
          (A) the interest on the portion of the credit extension that
        is greater than the fair market value of the dwelling is not
        tax deductible for Federal income tax purposes; and
          (B) the consumer should consult a tax adviser for further
        information regarding the deductibility of interest and
        charges.
    (b) Form and timing of disclosures; residential mortgage
      transaction requirements
      (1) Except as otherwise provided in this part, the disclosures
    required under subsection (a) of this section shall be made before
    the credit is extended. Except for the disclosures required by
    subsection (a)(1) of this section, all disclosures required under
    subsection (a) of this section and any disclosure provided for in
    subsection (b), (c), or (d) of section 1605 of this title shall be
    conspicuously segregated from all other terms, data, or information
    provided in connection with a transaction, including any
    computations or itemization.
      (2) In the case of a residential mortgage transaction, as defined
    in section 1602(w) of this title, which is also subject to the Real
    Estate Settlement Procedures Act [12 U.S.C. 2601 et seq.], good
    faith estimates of the disclosures required under subsection (a) of
    this section shall be made in accordance with regulations of the
    Board under section 1631(c) of this title before the credit is
    extended, or shall be delivered or placed in the mail not later
    than three business days after the creditor receives the consumer's
    written application, which ever is earlier. If the disclosure
    statement furnished within three days of the written application
    contains an annual percentage rate which is subsequently rendered
    inaccurate within the meaning of section 1606(c) of this title, the
    creditor shall furnish another statement at the time of settlement
    or consummation.
      (3) In the case of a credit transaction described in paragraph
    (15) of subsection (a) of this section, disclosures required by
    that paragraph shall be made to the consumer at the time of
    application for such extension of credit.
    (c) Timing of disclosures on unsolicited mailed or telephone
      purchase orders or loan requests
      (1) If a creditor receives a purchase order by mail or telephone
    without personal solicitation, and the cash price and the total
    sale price and the terms of financing, including the annual
    percentage rate, are set forth in the creditor's catalog or other
    printed material distributed to the public, then the disclosures
    required under subsection (a) of this section may be made at any
    time not later than the date the first payment is due.
      (2) If a creditor receives a request for a loan by mail or
    telephone without personal solicitation and the terms of financing,
    including the annual percentage rate for representative amounts of
    credit, are set forth in the creditor's printed material
    distributed to the public, or in the contract of loan or other
    printed material delivered to the obligor, then the disclosures
    required under subsection (a) of this section may be made at any
    time not later than the date the first payment is due.
    (d) Timing of disclosure in cases of an addition of a deferred
      payment price to an existing outstanding balance
      If a consumer credit sale is one of a series of consumer credit
    sales transactions made pursuant to an agreement providing for the
    addition of the deferred payment price of that sale to an existing
    outstanding balance, and the person to whom the credit is extended
    has approved in writing both the annual percentage rate or rates
    and the method of computing the finance charge or charges, and the
    creditor retains no security interest in any property as to which
    he has received payments aggregating the amount of the sales price
    including any finance charges attributable thereto, then the
    disclosure required under subsection (a) of this section for the
    particular sale may be made at any time not later than the date the
    first payment for that sale is due. For the purposes of this
    subsection, in the case of items purchased on different dates, the
    first purchased shall be deemed first paid for, and in the case of
    items purchased on the same date, the lowest price shall be deemed
    first paid for.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 128, May 29, 1968, 82 Stat. 155;
    Pub. L. 96-221, title VI, Sec. 614(a)-(c), Mar. 31, 1980, 94 Stat.
    178, 179; Pub. L. 104-208, div. A, title II, Sec. 2105, Sept. 30,
    1996, 110 Stat. 3009-402; Pub. L. 109-8, title XIII, Sec.
    1302(b)(1), Apr. 20, 2005, 119 Stat. 208.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Real Estate Settlement Procedures Act, referred to in subsec.
    (b)(2), probably refers to the Real Estate Settlement Procedures
    Act of 1974, Pub. L. 93-533, Dec. 22, 1974, 88 Stat. 1724, as
    amended, which is classified principally to chapter 27 (Sec. 2601
    et seq.) of Title 12, Banks and Banking. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 2601 of Title 12 and Tables.


-MISC1-
                                AMENDMENTS                            
      2005 - Subsec. (a)(15). Pub. L. 109-8, Sec. 1302(b)(1)(A), added
    par. (15).
      Subsec. (b)(3). Pub. L. 109-8, Sec. 1302(b)(1)(B), added par.
    (3).
      1996 - Subsec. (a)(14). Pub. L. 104-208 added par. (14).
      1980 - Subsec. (a). Pub. L. 96-221, Sec. 614(a), substituted
    provisions setting forth required disclosures by the creditor for
    transactions other than under an open end credit plan, for
    provisions setting forth required disclosures by the creditor for
    sales not under open end credit plans.
      Subsec. (b). Pub. L. 96-221, Sec. 614(b), designated existing
    provisions as par. (1), inserted provisions relating to the
    conspicuous segregation of required disclosures, and struck out
    provisions authorizing the required information to be disclosed in
    the signed evidence of indebtedness, and added par. (2).
      Subsec. (c). Pub. L. 96-221, Sec. 614(c), designated existing
    provisions as par. (1), substituted "total sale" for "deferred
    payment", and added par. (2).

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-8 effective 180 days after Apr. 20,
    2005, and not applicable with respect to cases commenced under
    Title 11, Bankruptcy, before such effective date, except as
    otherwise provided, see section 1501 of Pub. L. 109-8, set out as a
    note under section 101 of Title 11.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

-End-



-CITE-
    15 USC Sec. 1639                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1639. Requirements for certain mortgages

-STATUTE-
    (a) Disclosures
      (1) Specific disclosures
        In addition to other disclosures required under this
      subchapter, for each mortgage referred to in section 1602(aa) of
      this title, the creditor shall provide the following disclosures
      in conspicuous type size:
          (A) "You are not required to complete this agreement merely
        because you have received these disclosures or have signed a
        loan application.".
          (B) "If you obtain this loan, the lender will have a mortgage
        on your home. You could lose your home, and any money you have
        put into it, if you do not meet your obligations under the
        loan.".
      (2) Annual percentage rate
        In addition to the disclosures required under paragraph (1),
      the creditor shall disclose - 
          (A) in the case of a credit transaction with a fixed rate of
        interest, the annual percentage rate and the amount of the
        regular monthly payment; or
          (B) in the case of any other credit transaction, the annual
        percentage rate of the loan, the amount of the regular monthly
        payment, a statement that the interest rate and monthly payment
        may increase, and the amount of the maximum monthly payment,
        based on the maximum interest rate allowed pursuant to section
        3806 of title 12.
    (b) Time of disclosures
      (1) In general
        The disclosures required by this section shall be given not
      less than 3 business days prior to consummation of the
      transaction.
      (2) New disclosures required
        (A) In general
          After providing the disclosures required by this section, a
        creditor may not change the terms of the extension of credit if
        such changes make the disclosures inaccurate, unless new
        disclosures are provided that meet the requirements of this
        section.
        (B) Telephone disclosure
          A creditor may provide new disclosures pursuant to
        subparagraph (A) by telephone, if - 
            (i) the change is initiated by the consumer; and
            (ii) at the consummation of the transaction under which the
          credit is extended - 
              (I) the creditor provides to the consumer the new
            disclosures, in writing; and
              (II) the creditor and consumer certify in writing that
            the new disclosures were provided by telephone, by not
            later than 3 days prior to the date of consummation of the
            transaction.
      (3) Modifications
        The Board may, if it finds that such action is necessary to
      permit homeowners to meet bona fide personal financial
      emergencies, prescribe regulations authorizing the modification
      or waiver of rights created under this subsection, to the extent
      and under the circumstances set forth in those regulations.
    (c) No Prepayment penalty
      (1) In general
        (A) Limitation on terms
          A mortgage referred to in section 1602(aa) of this title may
        not contain terms under which a consumer must pay a prepayment
        penalty for paying all or part of the principal before the date
        on which the principal is due.
        (B) Construction
          For purposes of this subsection, any method of computing a
        refund of unearned scheduled interest is a prepayment penalty
        if it is less favorable to the consumer than the actuarial
        method (as that term is defined in section 1615(d) of this
        title).
      (2) Exception
        Notwithstanding paragraph (1), a mortgage referred to in
      section 1602(aa) of this title may contain a prepayment penalty
      (including terms calculating a refund by a method that is not
      prohibited under section 1615(b) of this title for the
      transaction in question) if - 
          (A) at the time the mortgage is consummated - 
            (i) the consumer is not liable for an amount of monthly
          indebtedness payments (including the amount of credit
          extended or to be extended under the transaction) that is
          greater than 50 percent of the monthly gross income of the
          consumer; and
            (ii) the income and expenses of the consumer are verified
          by a financial statement signed by the consumer, by a credit
          report, and in the case of employment income, by payment
          records or by verification from the employer of the consumer
          (which verification may be in the form of a copy of a pay
          stub or other payment record supplied by the consumer);

          (B) the penalty applies only to a prepayment made with
        amounts obtained by the consumer by means other than a
        refinancing by the creditor under the mortgage, or an affiliate
        of that creditor;
          (C) the penalty does not apply after the end of the 5-year
        period beginning on the date on which the mortgage is
        consummated; and
          (D) the penalty is not prohibited under other applicable law.
    (d) Limitations after default
      A mortgage referred to in section 1602(aa) of this title may not
    provide for an interest rate applicable after default that is
    higher than the interest rate that applies before default. If the
    date of maturity of a mortgage referred to in subsection (!1)
    1602(aa) of this title is accelerated due to default and the
    consumer is entitled to a rebate of interest, that rebate shall be
    computed by any method that is not less favorable than the
    actuarial method (as that term is defined in section 1615(d) of
    this title).

    (e) No balloon payments
      A mortgage referred to in section 1602(aa) of this title having a
    term of less than 5 years may not include terms under which the
    aggregate amount of the regular periodic payments would not fully
    amortize the outstanding principal balance.
    (f) No negative amortization
      A mortgage referred to in section 1602(aa) of this title may not
    include terms under which the outstanding principal balance will
    increase at any time over the course of the loan because the
    regular periodic payments do not cover the full amount of interest
    due.
    (g) No prepaid payments
      A mortgage referred to in section 1602(aa) of this title may not
    include terms under which more than 2 periodic payments required
    under the loan are consolidated and paid in advance from the loan
    proceeds provided to the consumer.
    (h) Prohibition on extending credit without regard to payment
      ability of consumer
      A creditor shall not engage in a pattern or practice of extending
    credit to consumers under mortgages referred to in section 1602(aa)
    of this title based on the consumers' collateral without regard to
    the consumers' repayment ability, including the consumers' current
    and expected income, current obligations, and employment.
    (i) Requirements for payments under home improvement contracts
      A creditor shall not make a payment to a contractor under a home
    improvement contract from amounts extended as credit under a
    mortgage referred to in section 1602(aa) of this title, other than -
     
        (1) in the form of an instrument that is payable to the
      consumer or jointly to the consumer and the contractor; or
        (2) at the election of the consumer, by a third party escrow
      agent in accordance with terms established in a written agreement
      signed by the consumer, the creditor, and the contractor before
      the date of payment.
    (j) Consequence of failure to comply
      Any mortgage that contains a provision prohibited by this section
    shall be deemed a failure to deliver the material disclosures
    required under this subchapter, for the purpose of section 1635 of
    this title.
    (k) "Affiliate" defined
      For purposes of this section, the term "affiliate" has the same
    meaning as in section 1841(k) of title 12.
    (l) Discretionary regulatory authority of Board
      (1) Exemptions
        The Board may, by regulation or order, exempt specific mortgage
      products or categories of mortgages from any or all of the
      prohibitions specified in subsections (c) through (i) of this
      section, if the Board finds that the exemption - 
          (A) is in the interest of the borrowing public; and
          (B) will apply only to products that maintain and strengthen
        home ownership and equity protection.
      (2) Prohibitions
        The Board, by regulation or order, shall prohibit acts or
      practices in connection with - 
          (A) mortgage loans that the Board finds to be unfair,
        deceptive, or designed to evade the provisions of this section;
        and
          (B) refinancing of mortgage loans that the Board finds to be
        associated with abusive lending practices, or that are
        otherwise not in the interest of the borrower.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 129, as added Pub. L. 103-325, title
    I, Sec. 152(d), Sept. 23, 1994, 108 Stat. 2191.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1639, Pub. L. 90-321, title I, Sec. 129, May 29,
    1968, 82 Stat. 156, related to consumer loans not under open end
    credit plans, prior to repeal by Pub. L. 96-221, title VI, Sec.
    614(d)(1), Mar. 31, 1980, 94 Stat. 180. Repeal effective on
    expiration of two years and six months after Mar. 31, 1980, with
    all regulations, forms, and clauses required to be prescribed to be
    promulgated at least one year prior to such effective date, and
    allowing any creditor to comply with any amendments, in accordance
    with the regulations, forms, and clauses prescribed by the Board
    prior to such effective date, see section 625 of Pub. L. 96-221,
    set out as an Effective Date of 1980 Amendment note under section
    1602 of this title.

-FOOTNOTE-
    (!1) So in original. Probably should be "section".


-End-



-CITE-
    15 USC Sec. 1640                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1640. Civil liability

-STATUTE-
    (a) Individual or class action for damages; amount of award;
      factors determining amount of award
      Except as otherwise provided in this section, any creditor who
    fails to comply with any requirement imposed under this part,
    including any requirement under section 1635 of this title, or part
    D or E of this subchapter with respect to any person is liable to
    such person in an amount equal to the sum of - 
        (1) any actual damage sustained by such person as a result of
      the failure;
        (2)(A)(i) in the case of an individual action twice the amount
      of any finance charge in connection with the transaction, (ii) in
      the case of an individual action relating to a consumer lease
      under part E of this subchapter, 25 per centum of the total
      amount of monthly payments under the lease, except that the
      liability under this subparagraph shall not be less than $100 nor
      greater than $1,000, or (iii) in the case of an individual action
      relating to a credit transaction not under an open end credit
      plan that is secured by real property or a dwelling, not less
      than $200 or greater than $2,000; or
        (B) in the case of a class action, such amount as the court may
      allow, except that as to each member of the class no minimum
      recovery shall be applicable, and the total recovery under this
      subparagraph in any class action or series of class actions
      arising out of the same failure to comply by the same creditor
      shall not be more than the lesser of $500,000 or 1 per centum of
      the net worth of the creditor;
        (3) in the case of any successful action to enforce the
      foregoing liability or in any action in which a person is
      determined to have a right of rescission under section 1635 of
      this title, the costs of the action, together with a reasonable
      attorney's fee as determined by the court; and
        (4) in the case of a failure to comply with any requirement
      under section 1639 of this title, an amount equal to the sum of
      all finance charges and fees paid by the consumer, unless the
      creditor demonstrates that the failure to comply is not material.

    In determining the amount of award in any class action, the court
    shall consider, among other relevant factors, the amount of any
    actual damages awarded, the frequency and persistence of failures
    of compliance by the creditor, the resources of the creditor, the
    number of persons adversely affected, and the extent to which the
    creditor's failure of compliance was intentional. In connection
    with the disclosures referred to in subsections (a) and (b) of
    section 1637 of this title, a creditor shall have a liability
    determined under paragraph (2) only for failing to comply with the
    requirements of section 1635 of this title, section 1637(a) of this
    title, or of paragraph (4), (5), (6), (7), (8), (9), or (10) of
    section 1637(b) of this title or for failing to comply with
    disclosure requirements under State law for any term or item which
    the Board has determined to be substantially the same in meaning
    under section 1610(a)(2) of this title as any of the terms or items
    referred to in section 1637(a) of this title or any of those
    paragraphs of section 1637(b) of this title. In connection with the
    disclosures referred to in subsection (c) or (d) of section 1637 of
    this title, a card issuer shall have a liability under this section
    only to a cardholder who pays a fee described in section
    1637(c)(1)(A)(ii)(I) or section 1637(c)(4)(A)(i) of this title or
    who uses the credit card or charge card. In connection with the
    disclosures referred to in section 1638 of this title, a creditor
    shall have a liability determined under paragraph (2) only for
    failing to comply with the requirements of section 1635 of this
    title or of paragraph (2) (insofar as it requires a disclosure of
    the "amount financed"), (3), (4), (5), (6), or (9) of section
    1638(a) of this title, or for failing to comply with disclosure
    requirements under State law for any term which the Board has
    determined to be substantially the same in meaning under section
    1610(a)(2) of this title as any of the terms referred to in any of
    those paragraphs of section 1638(a) of this title. With respect to
    any failure to make disclosures required under this part or part D
    or E of this subchapter, liability shall be imposed only upon the
    creditor required to make disclosure, except as provided in section
    1641 of this title.
    (b) Correction of errors
      A creditor or assignee has no liability under this section or
    section 1607 of this title or section 1611 of this title for any
    failure to comply with any requirement imposed under this part or
    part E of this subchapter, if within sixty days after discovering
    an error, whether pursuant to a final written examination report or
    notice issued under section 1607(e)(1) of this title or through the
    creditor's or assignee's own procedures, and prior to the
    institution of an action under this section or the receipt of
    written notice of the error from the obligor, the creditor or
    assignee notifies the person concerned of the error and makes
    whatever adjustments in the appropriate account are necessary to
    assure that the person will not be required to pay an amount in
    excess of the charge actually disclosed, or the dollar equivalent
    of the annual percentage rate actually disclosed, whichever is
    lower.
    (c) Unintentional violations; bona fide errors
      A creditor or assignee may not be held liable in any action
    brought under this section or section 1635 of this title for a
    violation of this subchapter if the creditor or assignee shows by a
    preponderance of evidence that the violation was not intentional
    and resulted from a bona fide error notwithstanding the maintenance
    of procedures reasonably adapted to avoid any such error. Examples
    of a bona fide error include, but are not limited to, clerical,
    calculation, computer malfunction and programing, and printing
    errors, except that an error of legal judgment with respect to a
    person's obligations under this subchapter is not a bona fide
    error.
    (d) Liability in transaction or lease involving multiple obligors
      When there are multiple obligors in a consumer credit transaction
    or consumer lease, there shall be no more than one recovery of
    damages under subsection (a)(2) of this section for a violation of
    this subchapter.
    (e) Jurisdiction of courts; limitations on actions; State attorney
      general enforcement
      Any action under this section may be brought in any United States
    district court, or in any other court of competent jurisdiction,
    within one year from the date of the occurrence of the violation.
    This subsection does not bar a person from asserting a violation of
    this subchapter in an action to collect the debt which was brought
    more than one year from the date of the occurrence of the violation
    as a matter of defense by recoupment or set-off in such action,
    except as otherwise provided by State law. An action to enforce a
    violation of section 1639 of this title may also be brought by the
    appropriate State attorney general in any appropriate United States
    district court, or any other court of competent jurisdiction, not
    later than 3 years after the date on which the violation occurs.
    The State attorney general shall provide prior written notice of
    any such civil action to the Federal agency responsible for
    enforcement under section 1607 of this title and shall provide the
    agency with a copy of the complaint. If prior notice is not
    feasible, the State attorney general shall provide notice to such
    agency immediately upon instituting the action. The Federal agency
    may - 
        (1) intervene in the action;
        (2) upon intervening - 
          (A) remove the action to the appropriate United States
        district court, if it was not originally brought there; and
          (B) be heard on all matters arising in the action; and

        (3) file a petition for appeal.
    (f) Good faith compliance with rule, regulation, or interpretation
      of Board or with interpretation or approval of duly authorized
      official or employee of Federal Reserve System
      No provision of this section, section 1607(b) of this title,
    section 1607(c) of this title, section 1607(e) of this title, or
    section 1611 of this title imposing any liability shall apply to
    any act done or omitted in good faith in conformity with any rule,
    regulation, or interpretation thereof by the Board or in conformity
    with any interpretation or approval by an official or employee of
    the Federal Reserve System duly authorized by the Board to issue
    such interpretations or approvals under such procedures as the
    Board may prescribe therefor, notwithstanding that after such act
    or omission has occurred, such rule, regulation, interpretation, or
    approval is amended, rescinded, or determined by judicial or other
    authority to be invalid for any reason.
    (g) Recovery for multiple failures to disclose
      The multiple failure to disclose to any person any information
    required under this part or part D or E of this subchapter to be
    disclosed in connection with a single account under an open end
    consumer credit plan, other single consumer credit sale, consumer
    loan, consumer lease, or other extension of consumer credit, shall
    entitle the person to a single recovery under this section but
    continued failure to disclose after a recovery has been granted
    shall give rise to rights to additional recoveries. This subsection
    does not bar any remedy permitted by section 1635 of this title.
    (h) Offset from amount owed to creditor or assignee; rights of
      defaulting consumer
      A person may not take any action to offset any amount for which a
    creditor or assignee is potentially liable to such person under
    subsection (a)(2) of this section against any amount owed by such
    person, unless the amount of the creditor's or assignee's liability
    under this subchapter has been determined by judgment of a court of
    competent jurisdiction in an action of which such person was a
    party. This subsection does not bar a consumer then in default on
    the obligation from asserting a violation of this subchapter as an
    original action, or as a defense or counterclaim to an action to
    collect amounts owed by the consumer brought by a person liable
    under this subchapter.
    (i) Class action moratorium
      (1) In general
        During the period beginning on May 18, 1995, and ending on
      October 1, 1995, no court may enter any order certifying any
      class in any action under this subchapter - 
          (A) which is brought in connection with any credit
        transaction not under an open end credit plan which is secured
        by a first lien on real property or a dwelling and constitutes
        a refinancing or consolidation of an existing extension of
        credit; and
          (B) which is based on the alleged failure of a creditor - 
            (i) to include a charge actually incurred (in connection
          with the transaction) in the finance charge disclosed
          pursuant to section 1638 of this title;
            (ii) to properly make any other disclosure required under
          section 1638 of this title as a result of the failure
          described in clause (i); or
            (iii) to provide proper notice of rescission rights under
          section 1635(a) of this title due to the selection by the
          creditor of the incorrect form from among the model forms
          prescribed by the Board or from among forms based on such
          model forms.
      (2) Exceptions for certain alleged violations
        Paragraph (1) shall not apply with respect to any action - 
          (A) described in clause (i) or (ii) of paragraph (1)(B), if
        the amount disclosed as the finance charge results in an annual
        percentage rate that exceeds the tolerance provided in section
        1606(c) of this title; or
          (B) described in paragraph (1)(B)(iii), if - 
            (i) no notice relating to rescission rights under section
          1635(a) of this title was provided in any form; or
            (ii) proper notice was not provided for any reason other
          than the reason described in such paragraph.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 130, May 29, 1968, 82 Stat. 157;
    Pub. L. 93-495, title IV, Secs. 406, 407, 408(a)-(d), Oct. 28,
    1974, 88 Stat. 1518; Pub. L. 94-222, Sec. 3(b), Feb. 27, 1976, 90
    Stat. 197; Pub. L. 94-240, Sec. 4, Mar. 23, 1976, 90 Stat. 260;
    Pub. L. 96-221, title VI, Sec. 615, Mar. 31, 1980, 94 Stat. 180;
    Pub. L. 100-583, Sec. 3, Nov. 3, 1988, 102 Stat. 2966; Pub. L. 103-
    325, title I, Sec. 153(a), (b), Sept. 23, 1994, 108 Stat. 2195;
    Pub. L. 104-12, Sec. 2, May 18, 1995, 109 Stat. 161; Pub. L. 104-
    29, Sec. 6, Sept. 30, 1995, 109 Stat. 274.)


-MISC1-
                                AMENDMENTS                            
      1995 - Subsec. (a)(2)(A)(iii). Pub. L. 104-29 added cl. (iii).
      Subsec. (i). Pub. L. 104-12 added subsec. (i).
      1994 - Subsec. (a)(4). Pub. L. 103-325, Sec. 153(a), added par.
    (4).
      Subsec. (e). Pub. L. 103-325, Sec. 153(b), inserted at end "An
    action to enforce a violation of section 1639 of this title may
    also be brought by the appropriate State attorney general in any
    appropriate United States district court, or any other court of
    competent jurisdiction, not later than 3 years after the date on
    which the violation occurs. The State attorney general shall
    provide prior written notice of any such civil action to the
    Federal agency responsible for enforcement under section 1607 of
    this title and shall provide the agency with a copy of the
    complaint. If prior notice is not feasible, the State attorney
    general shall provide notice to such agency immediately upon
    instituting the action. The Federal agency may - 
        "(1) intervene in the action;
        "(2) upon intervening - 
          "(A) remove the action to the appropriate United States
        district court, if it was not originally brought there; and
          "(B) be heard on all matters arising in the action; and
        "(3) file a petition for appeal."
      1988 - Subsec. (a). Pub. L. 100-583 substituted "in subsections
    (a) and (b) of section 1637" for "in section 1637" in third
    sentence and inserted provisions limiting liability of card issuer
    under this section to cardholders who pay fee or use credit card or
    charge card.
      1980 - Subsec. (a). Pub. L. 96-221, Sec. 615(b), in introductory
    text inserted provisions respecting applicability of section 1635
    of this title, and in text following numbered pars. inserted
    provisions relating to disclosures required under sections 1637 and
    1638 of this title.
      Subsec. (a)(2)(B). Pub. L. 96-221, Sec. 615(a)(1), substituted
    provisions respecting recovery under this subparagraph in any class
    action or series of class actions, for provisions respecting
    recovery in a class action.
      Subsec. (a)(3). Pub. L. 96-221, Sec. 615(a)(2), inserted
    provisions relating to right of rescission under section 1635 of
    this title.
      Subsec. (b). Pub. L. 96-221, Sec. 615(a)(3), substituted
    provisions relating to correction of errors within sixty days by a
    creditor or assignee, for provisions relating to correction of
    errors within fifteen days by a creditor.
      Subsec. (c). Pub. L. 96-221, Sec. 615(a)(3), substituted
    provisions relating to liability of a creditor or assignee in any
    action brought under this section or section 1635 of this title,
    for provisions relating to liability of a creditor in any action
    brought under this section.
      Subsec. (d). Pub. L. 96-221, Sec. 615(a)(3), substituted
    provisions relating to liability in transaction or lease involving
    multiple obligors, for provisions relating to liability of
    subsequent assignees original creditor.
      Subsec. (e). Pub. L. 96-221, Sec. 615(a)(4), inserted provisions
    relating to limitations on actions.
      Subsec. (f). Pub. L. 96-221, Sec. 615(a)(5), inserted references
    to section 1607(b), (c), and (e) of this title.
      Subsec. (g). Pub. L. 96-221, Sec. 615(a)(6), inserted provisions
    relating to remedy under section 1635 of this title.
      Subsec. (h). Pub. L. 96-221, Sec. 615(a)(7), substituted
    provisions relating to offset from amounts owed to the creditor or
    assignee, and rights of defaulting consumer, for provisions
    relating to offset from amounts owed to the creditor.
      1976 - Subsec. (a). Pub. L. 94-240, Sec. 4(1), inserted "or E"
    after "part D".
      Subsec. (a)(2)(A). Pub. L. 94-240, Sec. 4(2), designated existing
    provision as cl. (i) and added cl. (ii).
      Subsec. (a)(2)(B). Pub. L. 94-240, Sec. 4(3), substituted "lesser
    of $500,000" for "lesser of $100,000".
      Subsec. (b). Pub. L. 94-240, Sec. 4(4), inserted "or part E of
    this subchapter" after "this part" and struck out "finance" after
    "required to pay a".
      Subsec. (f). Pub. L. 94-222 inserted "or in conformity with any
    interpretation or approval by an official or employee of the
    Federal Reserve System duly authorized by the Board to issue such
    interpretations or approvals under such procedures as the Board may
    prescribe therefor" after "by the Board", and substituted
    "interpretation, or approval" for "or interpretation" before "is
    amended".
      Subsec. (g). Pub. L. 94-240, Sec. 4(5), inserted "or part D or E
    of this subchapter" after "this part", and "consumer lease" after
    "consumer loan".
      1974 - Subsec. (a). Pub. L. 93-495, Sec. 408(a), substituted
    provisions setting forth determination of amount of liability of
    any creditor failing to comply with any requirement imposed under
    part D of this subchapter or this part, for provisions setting
    forth determination of amount of liability of any creditor failing
    to disclose in connection with any consumer credit transaction any
    information required under this part to be disclosed to specified
    persons.
      Subsec. (b). Pub. L. 93-495, Sec. 408(b), inserted "for any
    failure to comply with any requirement imposed under this part,"
    before "if within".
      Subsec. (c). Pub. L. 93-495, Sec. 408(c), substituted
    "subchapter" for "part".
      Subsec. (f). Pub. L. 93-495, Sec. 406, added subsec. (f).
      Subsec. (g). Pub. L. 93-495, Sec. 407, added subsec. (g).
      Subsec. (h). Pub. L. 93-495, Sec. 408(d), added subsec. (h).

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-240 effective on expiration of one year
    after Mar. 23, 1976, see section 6 of Pub. L. 94-240, set out as an
    Effective Date note under section 1667 of this title.

                     EFFECTIVE DATE OF 1974 AMENDMENT                 
      Amendment by Pub. L. 93-495 effective Oct. 28, 1974, see section
    416 of Pub. L. 93-495, set out as an Effective Date note under
    section 1665a of this title.

           DETERMINATION OF LIABILITY PRIOR TO OCTOBER 28, 1974       
      Section 408(e) of Pub. L. 93-495 provided that: "The amendments
    made by sections 406, 407, and 408 [amending this section] shall
    apply in determining the liability of any person under chapter 2 or
    4 of the Truth in Lending Act [this part or part D of this
    subchapter], unless prior to the date of enactment of this Act
    [Oct. 28, 1974] such liability has been determined by final
    judgment of a court of competent jurisdiction and no further review
    of such judgment may be had by appeal or otherwise."

-End-



-CITE-
    15 USC Sec. 1641                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1641. Liability of assignees

-STATUTE-
    (a) Prerequisites
      Except as otherwise specifically provided in this subchapter, any
    civil action for a violation of this subchapter or proceeding under
    section 1607 of this title which may be brought against a creditor
    may be maintained against any assignee of such creditor only if the
    violation for which such action or proceeding is brought is
    apparent on the face of the disclosure statement, except where the
    assignment was involuntary. For the purpose of this section, a
    violation apparent on the face of the disclosure statement
    includes, but is not limited to (1) a disclosure which can be
    determined to be incomplete or inaccurate from the face of the
    disclosure statement or other documents assigned, or (2) a
    disclosure which does not use the terms required to be used by this
    subchapter.
    (b) Proof of compliance with statutory provisions
      Except as provided in section 1635(c) of this title, in any
    action or proceeding by or against any subsequent assignee of the
    original creditor without knowledge to the contrary by the assignee
    when he acquires the obligation, written acknowledgement of receipt
    by a person to whom a statement is required to be given pursuant to
    this subchapter shall be conclusive proof of the delivery thereof
    and, except as provided in subsection (a) of this section, of
    compliance with this part. This section does not affect the rights
    of the obligor in any action against the original creditor.
    (c) Right of rescission by consumer unaffected
      Any consumer who has the right to rescind a transaction under
    section 1635 of this title may rescind the transaction as against
    any assignee of the obligation.
    (d) Rights upon assignment of certain mortgages
      (1) In general
        Any person who purchases or is otherwise assigned a mortgage
      referred to in section 1602(aa) of this title shall be subject to
      all claims and defenses with respect to that mortgage that the
      consumer could assert against the creditor of the mortgage,
      unless the purchaser or assignee demonstrates, by a preponderance
      of the evidence, that a reasonable person exercising ordinary due
      diligence, could not determine, based on the documentation
      required by this subchapter, the itemization of the amount
      financed, and other disclosure of disbursements that the mortgage
      was a mortgage referred to in section 1602(aa) of this title. The
      preceding sentence does not affect rights of a consumer under
      subsection (a), (b), or (c) of this section or any other
      provision of this subchapter.
      (2) Limitation on damages
        Notwithstanding any other provision of law, relief provided as
      a result of any action made permissible by paragraph (1) may not
      exceed - 
          (A) with respect to actions based upon a violation of this
        subchapter, the amount specified in section 1640 of this title;
        and
          (B) with respect to all other causes of action, the sum of - 
            (i) the amount of all remaining indebtedness; and
            (ii) the total amount paid by the consumer in connection
          with the transaction.
      (3) Offset
        The amount of damages that may be awarded under paragraph
      (2)(B) shall be reduced by the amount of any damages awarded
      under paragraph (2)(A).
      (4) Notice
        Any person who sells or otherwise assigns a mortgage referred
      to in section 1602(aa) of this title shall include a prominent
      notice of the potential liability under this subsection as
      determined by the Board.
    (e) Liability of assignee for consumer credit transactions secured
      by real property
      (1) In general
        Except as otherwise specifically provided in this subchapter,
      any civil action against a creditor for a violation of this
      subchapter, and any proceeding under section 1607 of this title
      against a creditor, with respect to a consumer credit transaction
      secured by real property may be maintained against any assignee
      of such creditor only if - 
          (A) the violation for which such action or proceeding is
        brought is apparent on the face of the disclosure statement
        provided in connection with such transaction pursuant to this
        subchapter; and
          (B) the assignment to the assignee was voluntary.
      (2) Violation apparent on the face of the disclosure described
        For the purpose of this section, a violation is apparent on the
      face of the disclosure statement if - 
          (A) the disclosure can be determined to be incomplete or
        inaccurate by a comparison among the disclosure statement, any
        itemization of the amount financed, the note, or any other
        disclosure of disbursement; or
          (B) the disclosure statement does not use the terms or format
        required to be used by this subchapter.
    (f) Treatment of servicer
      (1) In general
        A servicer of a consumer obligation arising from a consumer
      credit transaction shall not be treated as an assignee of such
      obligation for purposes of this section unless the servicer is or
      was the owner of the obligation.
      (2) Servicer not treated as owner on basis of assignment for
        administrative convenience
        A servicer of a consumer obligation arising from a consumer
      credit transaction shall not be treated as the owner of the
      obligation for purposes of this section on the basis of an
      assignment of the obligation from the creditor or another
      assignee to the servicer solely for the administrative
      convenience of the servicer in servicing the obligation. Upon
      written request by the obligor, the servicer shall provide the
      obligor, to the best knowledge of the servicer, with the name,
      address, and telephone number of the owner of the obligation or
      the master servicer of the obligation.
      (3) "Servicer" defined
        For purposes of this subsection, the term "servicer" has the
      same meaning as in section 2605(i)(2) of title 12.
      (4) Applicability
        This subsection shall apply to all consumer credit transactions
      in existence or consummated on or after September 30, 1995.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 131, May 29, 1968, 82 Stat. 157;
    Pub. L. 96-221, title VI, Sec. 616(a), Mar. 31, 1980, 94 Stat. 182;
    Pub. L. 103-325, title I, Sec. 153(c), Sept. 23, 1994, 108 Stat.
    2195; Pub. L. 104-29, Sec. 7, Sept. 30, 1995, 109 Stat. 274.)


-MISC1-
                                AMENDMENTS                            
      1995 - Subsec. (e). Pub. L. 104-29, Sec. 7(a), added subsec. (e).
      Subsec. (f). Pub. L. 104-29, Sec. 7(b), added subsec. (f).
      1994 - Subsec. (d). Pub. L. 103-325 added subsec. (d).
      1980 - Pub. L. 96-221 added subsecs. (a) and (c), designated
    existing provisions as subsec. (b), substituted "excepted as
    provided in subsection (a) of this section" for "unless the
    violation is apparent on the face of the statement", and struck out
    exception for actions under section 1640(d) of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

-End-



-CITE-
    15 USC Sec. 1642                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1642. Issuance of credit cards

-STATUTE-
      No credit card shall be issued except in response to a request or
    application therefor. This prohibition does not apply to the
    issuance of a credit card in renewal of, or in substitution for, an
    accepted credit card.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 132, as added Pub. L. 91-508, title
    V, Sec. 502(a), Oct. 26, 1970, 84 Stat. 1126.)


-MISC1-
                              EFFECTIVE DATE                          
      Section 503(1) of Pub. L. 91-508 provided that: "Section 132 of
    such Act [this section] takes effect on date of enactment of this
    title [Oct. 26, 1970]."

-End-



-CITE-
    15 USC Sec. 1643                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1643. Liability of holder of credit card

-STATUTE-
    (a) Limits on liability
      (1) A cardholder shall be liable for the unauthorized use of a
    credit card only if - 
        (A) the card is an accepted credit card;
        (B) the liability is not in excess of $50;
        (C) the card issuer gives adequate notice to the cardholder of
      the potential liability;
        (D) the card issuer has provided the cardholder with a
      description of a means by which the card issuer may be notified
      of loss or theft of the card, which description may be provided
      on the face or reverse side of the statement required by section
      1637(b) of this title or on a separate notice accompanying such
      statement;
        (E) the unauthorized use occurs before the card issuer has been
      notified that an unauthorized use of the credit card has occurred
      or may occur as the result of loss, theft, or otherwise; and
        (F) the card issuer has provided a method whereby the user of
      such card can be identified as the person authorized to use it.

      (2) For purposes of this section, a card issuer has been notified
    when such steps as may be reasonably required in the ordinary
    course of of business to provide the card issuer with the pertinent
    information have been taken, whether or not any particular officer,
    employee, or agent of the card issuer does in fact receive such
    information.
    (b) Burden of proof
      In any action by a card issuer to enforce liability for the use
    of a credit card, the burden of proof is upon the card issuer to
    show that the use was authorized or, if the use was unauthorized,
    then the burden of proof is upon the card issuer to show that the
    conditions of liability for the unauthorized use of a credit card,
    as set forth in subsection (a) of this section, have been met.
    (c) Liability imposed by other laws or by agreement with issuer
      Nothing in this section imposes liability upon a cardholder for
    the unauthorized use of a credit card in excess of his liability
    for such use under other applicable law or under any agreement with
    the card issuer.
    (d) Exclusiveness of liability
      Except as provided in this section, a cardholder incurs no
    liability from the unauthorized use of a credit card.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 133, as added Pub. L. 91-508, title
    V, Sec. 502(a), Oct. 26, 1970, 84 Stat. 1126; amended Pub. L. 96-
    221, title VI, Sec. 617, Mar. 31, 1980, 94 Stat. 182.)


-MISC1-
                                AMENDMENTS                            
      1980 - Subsec. (a). Pub. L. 96-221 revised existing provisions
    into pars. (1) and (2) and, as so revised, in par. (1) made changes
    in structure and phraseology and revised means of notice and
    verification, and in par. (2) made changes in phraseology.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

                              EFFECTIVE DATE                          
      Section 503(2) of Pub. L. 91-508 provided that: "Section 133 of
    such Act [this section] takes effect upon the expiration of 90 days
    after such date of enactment [Oct. 26, 1970]."

-End-



-CITE-
    15 USC Sec. 1644                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1644. Fraudulent use of credit cards; penalties

-STATUTE-
    (a) Use, attempt or conspiracy to use card in transaction affecting
      interstate or foreign commerce
      Whoever knowingly in a transaction affecting interstate or
    foreign commerce, uses or attempts or conspires to use any
    counterfeit, fictitious, altered, forged, lost, stolen, or
    fraudulently obtained credit card to obtain money, goods, services,
    or anything else of value which within any one-year period has a
    value aggregating $1,000 or more; or
    (b) Transporting, attempting or conspiring to transport card in
      interstate commerce
      Whoever, with unlawful or fraudulent intent, transports or
    attempts or conspires to transport in interstate or foreign
    commerce a counterfeit, fictitious, altered, forged, lost, stolen,
    or fraudulently obtained credit card knowing the same to be
    counterfeit, fictitious, altered, forged, lost, stolen, or
    fraudulently obtained; or
    (c) Use of interstate commerce to sell or transport card
      Whoever, with unlawful or fraudulent intent, uses any
    instrumentality of interstate or foreign commerce to sell or
    transport a counterfeit, fictitious, altered, forged, lost, stolen,
    or fraudulently obtained credit card knowing the same to be
    counterfeit, fictitious, altered, forged, lost, stolen, or
    fraudulently obtained; or
    (d) Receipt, concealment, etc., of goods obtained by use of card
      Whoever knowingly receives, conceals, uses, or transports money,
    goods, services, or anything else of value (except tickets for
    interstate or foreign transportation) which (1) within any one-year
    period has a value aggregating $1,000 or more, (2) has moved in or
    is part of, or which constitutes interstate or foreign commerce,
    and (3) has been obtained with a counterfeit, fictitious, altered,
    forged, lost, stolen, or fraudulently obtained credit card; or
    (e) Receipt, concealment, etc., of tickets for interstate or
      foreign transportation obtained by use of card
      Whoever knowingly receives, conceals, uses, sells, or transports
    in interstate or foreign commerce one or more tickets for
    interstate or foreign transportation, which (1) within any one-year
    period have a value aggregating $500 or more, and (2) have been
    purchased or obtained with one or more counterfeit, fictitious,
    altered, forged, lost, stolen, or fraudulently obtained credit
    cards; or
    (f) Furnishing of money, etc., through use of card
      Whoever in a transaction affecting interstate or foreign commerce
    furnishes money, property, services, or anything else of value,
    which within any one-year period has a value aggregating $1,000 or
    more, through the use of any counterfeit, fictitious, altered,
    forged, lost, stolen, or fraudulently obtained credit card knowing
    the same to be counterfeit, fictitious, altered, forged, lost,
    stolen, or fraudulently obtained - 

    shall be fined not more than $10,000 or imprisoned not more than
    ten years, or both.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 134, as added Pub. L. 91-508, title
    V, Sec. 502(a), Oct. 26, 1970, 84 Stat. 1127; amended Pub. L. 93-
    495, title IV, Sec. 414, Oct. 28, 1974, 88 Stat. 1520.)


-MISC1-
                                AMENDMENTS                            
      1974 - Pub. L. 93-495 generally reorganized provisions by
    designating former unlettered paragraph cls. (a) to (f), and as so
    designated, expanded prohibitions relating to fraudulent use of
    credit cards, decreased amount required for fraudulent use from a
    retail value aggregating $5,000, or more, to enumerated amounts for
    particular activities, and increased the punishment from a sentence
    of not more than five years to a sentence of not more than ten
    years.

                     EFFECTIVE DATE OF 1974 AMENDMENT                 
      Amendment by Pub. L. 93-495 effective Oct. 28, 1974, see section
    416 of Pub. L. 93-495, set out as an Effective Date note under
    section 1665a of this title.

                              EFFECTIVE DATE                          
      Section 503(3) of Pub. L. 91-508 provided that: "Section 134 of
    such Act [this section] applies to offenses committed on or after
    such date of enactment [Oct. 26, 1970]."

-End-



-CITE-
    15 USC Sec. 1645                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1645. Business credit cards; limits on liability of employees

-STATUTE-
      The exemption provided by section 1603(1) of this title does not
    apply to the provisions of sections 1642, 1643, and 1644 of this
    title, except that a card issuer and a business or other
    organization which provides credit cards issued by the same card
    issuer to ten or more of its employees may by contract agree as to
    liability of the business or other organization with respect to
    unauthorized use of such credit cards without regard to the
    provisions of section 1643 of this title, but in no case may such
    business or other organization or card issuer impose liability upon
    any employee with respect to unauthorized use of such a credit card
    except in accordance with and subject to the limitations of section
    1643 of this title.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 135, as added Pub. L. 93-495, title
    IV, Sec. 410(a), Oct. 28, 1974, 88 Stat. 1519.)


-MISC1-
                              EFFECTIVE DATE                          
      Section effective Oct. 28, 1974, see section 416 of Pub. L. 93-
    495, set out as a note under section 1665a of this title.

-End-



-CITE-
    15 USC Sec. 1646                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1646. Dissemination of annual percentage rates;
      implementation, etc.

-STATUTE-
    (a) Annual percentage rates
      The Board shall collect, publish, and disseminate to the public,
    on a demonstration basis in a number of standard metropolitan
    statistical areas to be determined by the Board, the annual
    percentage rates charged for representative types of nonsale credit
    by creditors in such areas. For the purpose of this section, the
    Board is authorized to require creditors in such areas to furnish
    information necessary for the Board to collect, publish, and
    disseminate such information.
    (b) Credit card price and availability information
      (1) Collection required
        The Board shall collect, on a semiannual basis, credit card
      price and availability information, including the information
      required to be disclosed under section 1637(c) of this title,
      from a broad sample of financial institutions which offer credit
      card services.
      (2) Sample requirements
        The broad sample of financial institutions required under
      paragraph (1) shall include - 
          (A) the 25 largest issuers of credit cards; and
          (B) not less than 125 additional financial institutions
        selected by the Board in a manner that ensures - 
            (i) an equitable geographical distribution within the
          sample; and
            (ii) the representation of a wide spectrum of institutions
          within the sample.
      (3) Report of information from sample
        Each financial institution in the broad sample established
      pursuant to paragraph (2) shall report the information to the
      Board in accordance with such regulations or orders as the Board
      may prescribe.
      (4) Public availability of collected information; report to
        Congress
        The Board shall - 
          (A) make the information collected pursuant to this
        subsection available to the public upon request; and
          (B) report such information semiannually to Congress.
    (c) Implementation
      The Board is authorized to enter into contracts or other
    arrangements with appropriate persons, organizations, or State
    agencies to carry out its functions under subsections (a) and (b)
    of this section and to furnish financial assistance in support
    thereof.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 136, as added Pub. L. 96-221, title
    VI, Sec. 618(a), Mar. 31, 1980, 94 Stat. 183; amended Pub. L. 100-
    583, Sec. 5, Nov. 3, 1988, 102 Stat. 2967.)


-MISC1-
                                AMENDMENTS                            
      1988 - Subsecs. (b), (c). Pub. L. 100-583 added subsec. (b),
    redesignated former subsec. (b) as (c), and substituted
    "subsections (a) and (b)" for "subsection (a)".

                              EFFECTIVE DATE                          
      Section effective on expiration of two years and six months after
    Mar. 31, 1980, with all regulations, forms, and clauses required to
    be prescribed to be promulgated at least one year prior to such
    effective date, and allowing any creditor to comply with any
    amendments, in accordance with the regulations, forms, and clauses
    prescribed by the Board prior to such effective date, see section
    625 of Pub. L. 96-221, set out as an Effective Date of 1980
    Amendment note under section 1602 of this title.

-End-



-CITE-
    15 USC Sec. 1647                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1647. Home equity plans

-STATUTE-
    (a) Index requirement
      In the case of extensions of credit under an open end consumer
    credit plan which are subject to a variable rate and are secured by
    a consumer's principal dwelling, the index or other rate of
    interest to which changes in the annual percentage rate are related
    shall be based on an index or rate of interest which is publicly
    available and is not under the control of the creditor.
    (b) Grounds for acceleration of outstanding balance
      A creditor may not unilaterally terminate any account under an
    open end consumer credit plan under which extensions of credit are
    secured by a consumer's principal dwelling and require the
    immediate repayment of any outstanding balance at such time, except
    in the case of - 
        (1) fraud or material misrepresentation on the part of the
      consumer in connection with the account;
        (2) failure by the consumer to meet the repayment terms of the
      agreement for any outstanding balance; or
        (3) any other action or failure to act by the consumer which
      adversely affects the creditor's security for the account or any
      right of the creditor in such security.

    This subsection does not apply to reverse mortgage transactions.
    (c) Change in terms
      (1) In general
        No open end consumer credit plan under which extensions of
      credit are secured by a consumer's principal dwelling may contain
      a provision which permits a creditor to change unilaterally any
      term required to be disclosed under section 1637a(a) of this
      title or any other term, except a change in insignificant terms
      such as the address of the creditor for billing purposes.
      (2) Certain changes not precluded
        Notwithstanding the provisions of subsection (!1) (1), a
      creditor may make any of the following changes:

          (A) Change the index and margin applicable to extensions of
        credit under such plan if the index used by the creditor is no
        longer available and the substitute index and margin would
        result in a substantially similar interest rate.
          (B) Prohibit additional extensions of credit or reduce the
        credit limit applicable to an account under the plan during any
        period in which the value of the consumer's principal dwelling
        which secures any outstanding balance is significantly less
        than the original appraisal value of the dwelling.
          (C) Prohibit additional extensions of credit or reduce the
        credit limit applicable to the account during any period in
        which the creditor has reason to believe that the consumer will
        be unable to comply with the repayment requirements of the
        account due to a material change in the consumer's financial
        circumstances.
          (D) Prohibit additional extensions of credit or reduce the
        credit limit applicable to the account during any period in
        which the consumer is in default with respect to any material
        obligation of the consumer under the agreement.
          (E) Prohibit additional extensions of credit or reduce the
        credit limit applicable to the account during any period in
        which - 
            (i) the creditor is precluded by government action from
          imposing the annual percentage rate provided for in the
          account agreement; or
            (ii) any government action is in effect which adversely
          affects the priority of the creditor's security interest in
          the account to the extent that the value of the creditor's
          secured interest in the property is less than 120 percent of
          the amount of the credit limit applicable to the account.

          (F) Any change that will benefit the consumer.
      (3) Material obligations
        Upon the request of the consumer and at the time an agreement
      is entered into by a consumer to open an account under an open
      end consumer credit plan under which extensions of credit are
      secured by the consumer's principal dwelling, the consumer shall
      be given a list of the categories of contract obligations which
      are deemed by the creditor to be material obligations of the
      consumer under the agreement for purposes of paragraph (2)(D).
      (4) Consumer benefit
        (A) In general
          For purposes of paragraph (2)(F), a change shall be deemed to
        benefit the consumer if the change is unequivocally beneficial
        to the borrower and the change is beneficial through the entire
        term of the agreement.
        (B) Board categorization
          The Board may, by regulation, determine categories of changes
        that benefit the consumer.
    (d) Terms changed after application
      If any term or condition described in section 1637a(a) of this
    title which is disclosed to a consumer in connection with an
    application to open an account under an open end consumer credit
    plan described in such section (other than a variable feature of
    the plan) changes before the account is opened, and if, as a result
    of such change, the consumer elects not to enter into the plan
    agreement, the creditor shall refund all fees paid by the consumer
    in connection with such application.
    (e) Additional requirements relating to refunds and imposition of
      nonrefundable fees
      (1) In general
        No nonrefundable fee may be imposed by a creditor or any other
      person in connection with any application by a consumer to
      establish an account under any open end consumer credit plan
      which provides for extensions of credit which are secured by a
      consumer's principal dwelling before the end of the 3-day period
      beginning on the date such consumer receives the disclosure
      required under section 1637a(a) of this title and the pamphlet
      required under section 1637a(e) of this title with respect to
      such application.
      (2) Constructive receipt
        For purposes of determining when a nonrefundable fee may be
      imposed in accordance with this subsection if the disclosures and
      pamphlet referred to in paragraph (1) are mailed to the consumer,
      the date of the receipt of the disclosures by such consumer shall
      be deemed to be 3 business days after the date of mailing by the
      creditor.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 137, as added Pub. L. 100-709, Sec.
    3, Nov. 23, 1988, 102 Stat. 4731; amended Pub. L. 103-325, title I,
    Sec. 154(c), Sept. 23, 1994, 108 Stat. 2197.)


-MISC1-
                                AMENDMENTS                            
      1994 - Subsec. (b). Pub. L. 103-325 inserted at end "This
    subsection does not apply to reverse mortgage transactions."

                              EFFECTIVE DATE                          
      For effective date of section, see Regulations; Effective Date
    note below.

                        REGULATIONS; EFFECTIVE DATE                    
      For provisions relating to promulgation of regulations to
    implement amendment by Pub. L. 100-709 [enacting this section], and
    effective date of such amendment in connection with those
    regulations, see section 7 of Pub. L. 100-709, set out as a note
    under section 1637a of this title.

-FOOTNOTE-
    (!1) So in original. Probably should be "paragraph".


-End-



-CITE-
    15 USC Sec. 1648                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1648. Reverse mortgages

-STATUTE-
    (a) In general
      In addition to the disclosures required under this subchapter,
    for each reverse mortgage, the creditor shall, not less than 3 days
    prior to consummation of the transaction, disclose to the consumer
    in conspicuous type a good faith estimate of the projected total
    cost of the mortgage to the consumer expressed as a table of annual
    interest rates. Each annual interest rate shall be based on a
    projected total future credit extension balance under a projected
    appreciation rate for the dwelling and a term for the mortgage. The
    disclosure shall include - 
        (1) statements of the annual interest rates for not less than 3
      projected appreciation rates and not less than 3 credit
      transaction periods, as determined by the Board, including - 
          (A) a short-term reverse mortgage;
          (B) a term equaling the actuarial life expectancy of the
        consumer; and
          (C) such longer term as the Board deems appropriate; and

        (2) a statement that the consumer is not obligated to complete
      the reverse mortgage transaction merely because the consumer has
      received the disclosure required under this section or has signed
      an application for the reverse mortgage.
    (b) Projected total cost
      In determining the projected total cost of the mortgage to be
    disclosed to the consumer under subsection (a) of this section, the
    creditor shall take into account - 
        (1) any shared appreciation or equity that the lender will, by
      contract, be entitled to receive;
        (2) all costs and charges to the consumer, including the costs
      of any associated annuity that the consumer elects or is required
      to purchase as part of the reverse mortgage transaction;
        (3) all payments to and for the benefit of the consumer,
      including, in the case in which an associated annuity is
      purchased (whether or not required by the lender as a condition
      of making the reverse mortgage), the annuity payments received by
      the consumer and financed from the proceeds of the loan, instead
      of the proceeds used to finance the annuity; and
        (4) any limitation on the liability of the consumer under
      reverse mortgage transactions (such as nonrecourse limits and
      equity conservation agreements).

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 138, as added Pub. L. 103-325, title
    I, Sec. 154(b), Sept. 23, 1994, 108 Stat. 2196.)

-End-



-CITE-
    15 USC Sec. 1649                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part B - Credit Transactions

-HEAD-
    Sec. 1649. Certain limitations on liability

-STATUTE-
    (a) Limitations on liability
      For any closed end consumer credit transaction that is secured by
    real property or a dwelling, that is subject to this subchapter,
    and that is consummated before September 30, 1995, a creditor or
    any assignee of a creditor shall have no civil, administrative, or
    criminal liability under this subchapter for, and a consumer shall
    have no extended rescission rights under section 1635(f) of this
    title with respect to - 
        (1) the creditor's treatment, for disclosure purposes, of - 
          (A) taxes described in section 1605(d)(3) of this title;
          (B) fees described in section 1605(e)(2) and (5) of this
        title;
          (C) fees and amounts referred to in the 3rd sentence of
        section 1605(a) of this title; or
          (D) borrower-paid mortgage broker fees referred to in section
        1605(a)(6) of this title;

        (2) the form of written notice used by the creditor to inform
      the obligor of the rights of the obligor under section 1635 of
      this title if the creditor provided the obligor with a properly
      dated form of written notice published and adopted by the Board
      or a comparable written notice, and otherwise complied with all
      the requirements of this section regarding notice; or
        (3) any disclosure relating to the finance charge imposed with
      respect to the transaction if the amount or percentage actually
      disclosed - 
          (A) may be treated as accurate for purposes of this
        subchapter if the amount disclosed as the finance charge does
        not vary from the actual finance charge by more than $200;
          (B) may, under section 1605(f)(2) of this title, be treated
        as accurate for purposes of section 1635 of this title; or
          (C) is greater than the amount or percentage required to be
        disclosed under this subchapter.
    (b) Exceptions
      Subsection (a) of this section shall not apply to - 
        (1) any individual action or counterclaim brought under this
      subchapter which was filed before June 1, 1995;
        (2) any class action brought under this subchapter for which a
      final order certifying a class was entered before January 1,
      1995;
        (3) the named individual plaintiffs in any class action brought
      under this subchapter which was filed before June 1, 1995; or
        (4) any consumer credit transaction with respect to which a
      timely notice of rescission was sent to the creditor before June
      1, 1995.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 139, as added Pub. L. 104-29, Sec.
    4(a), Sept. 30, 1995, 109 Stat. 273; amended Pub. L. 104-208, div.
    A, title II, Sec. 2107(a), Sept. 30, 1996, 110 Stat. 3009-402.)


-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (a). Pub. L. 104-208 substituted "For any closed
    end consumer credit transaction that is secured by real property or
    a dwelling, that is subject to this subchapter, and" for "For any
    consumer credit transaction subject to this subchapter".

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 2107(b) of div. A of Pub. L. 104-208 provided that: "The
    amendment made by subsection (a) [amending this section] shall be
    effective as of September 30, 1995."

-End-


-CITE-
    15 USC Part C - Credit Advertising                          01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part C - Credit Advertising

-HEAD-
                        PART C - CREDIT ADVERTISING                    

-End-



-CITE-
    15 USC Sec. 1661                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part C - Credit Advertising

-HEAD-
    Sec. 1661. Catalogs and multiple-page advertisements

-STATUTE-
      For the purposes of this part, a catalog or other multiple-page
    advertisement shall be considered a single advertisement if it
    clearly and conspicuously displays a credit terms table on which
    the information required to be stated under this part is clearly
    set forth.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 141, May 29, 1968, 82 Stat. 158.)


-MISC1-
                              EFFECTIVE DATE                          
      Section 504(b) of Pub. L. 90-321 provided that chapter 3 of title
    I, which enacted sections 1661 to 1665 of this title, is effective
    July 1, 1969.

-End-



-CITE-
    15 USC Sec. 1662                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part C - Credit Advertising

-HEAD-
    Sec. 1662. Advertising of downpayments and installments

-STATUTE-
      No advertisement to aid, promote, or assist directly or
    indirectly any extension of consumer credit may state
        (1) that a specific periodic consumer credit amount or
      installment amount can be arranged, unless the creditor usually
      and customarily arranges credit payments or installments for that
      period and in that amount.
        (2) that a specified downpayment is required in connection with
      any extension of consumer credit, unless the creditor usually and
      customarily arranges downpayments in that amount.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 142, May 29, 1968, 82 Stat. 158.)

-End-



-CITE-
    15 USC Sec. 1663                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part C - Credit Advertising

-HEAD-
    Sec. 1663. Advertising of open end credit plans

-STATUTE-
      No advertisement to aid, promote, or assist directly or
    indirectly the extension of consumer credit under an open end
    credit plan may set forth any of the specific terms of that plan
    unless it also clearly and conspicuously sets forth all of the
    following items:
        (1) Any minimum or fixed amount which could be imposed.
        (2) In any case in which periodic rates may be used to compute
      the finance charge, the periodic rates expressed as annual
      percentage rates.
        (3) Any other term that the Board may by regulation require to
      be disclosed.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 143, May 29, 1968, 82 Stat. 158;
    Pub. L. 96-221, title VI, Secs. 613(f), 619(a), Mar. 31, 1980, 94
    Stat. 177, 183.)


-MISC1-
                                AMENDMENTS                            
      1980 - Pub. L. 96-221 in existing introductory text struck out
    applicability of rate determined under section 1637(a)(5) of this
    title, and amended section generally substituting items setting
    forth minimum or fixed amount, etc., set out in pars. (1) to (3),
    for items time period, etc., set out in pars. (1) to (5).

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

-End-



-CITE-
    15 USC Sec. 1664                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part C - Credit Advertising

-HEAD-
    Sec. 1664. Advertising of credit other than open end plans

-STATUTE-
    (a) Exclusion of open end credit plans
      Except as provided in subsection (b) of this section, this
    section applies to any advertisement to aid, promote, or assist
    directly or indirectly any consumer credit sale, loan, or other
    extension of credit subject to the provisions of this subchapter,
    other than an open end credit plan.
    (b) Advertisements of residential real estate
      The provisions of this section do not apply to advertisements of
    residential real estate except to the extent that the Board may by
    regulation require.
    (c) Rate of finance charge expressed as annual percentage rate
      If any advertisement to which this section applies states the
    rate of a finance charge, the advertisement shall state the rate of
    that charge expressed as an annual percentage rate.
    (d) Requisite disclosures in advertisement
      If any advertisement to which this section applies states the
    amount of the downpayment, if any, the amount of any installment
    payment, the dollar amount of any finance charge, or the number of
    installments or the period of repayment, then the advertisement
    shall state all of the following items:
        (1) The downpayment, if any.
        (2) The terms of repayment.
        (3) The rate of the finance charge expressed as an annual
      percentage rate.
    (e) Credit transaction secured by principal dwelling of consumer
      Each advertisement to which this section applies that relates to
    a consumer credit transaction that is secured by the principal
    dwelling of a consumer in which the extension of credit may exceed
    the fair market value of the dwelling, and which advertisement is
    disseminated in paper form to the public or through the Internet,
    as opposed to by radio or television, shall clearly and
    conspicuously state that - 
        (1) the interest on the portion of the credit extension that is
      greater than the fair market value of the dwelling is not tax
      deductible for Federal income tax purposes; and
        (2) the consumer should consult a tax adviser for further
      information regarding the deductibility of interest and charges.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 144, May 29, 1968, 82 Stat. 158;
    Pub. L. 96-221, title VI, Sec. 619(b), Mar. 31, 1980, 94 Stat. 183;
    Pub. L. 109-8, title XIII, Sec. 1302(b)(2), Apr. 20, 2005, 119
    Stat. 209.)


-MISC1-
                                AMENDMENTS                            
      2005 - Subsec. (e). Pub. L. 109-8 added subsec. (e).
      1980 - Subsec. (d). Pub. L. 97-221 substituted items setting
    forth downpayment, etc., set out in pars. (1) to (3), for items
    setting forth cash price or amount of loan, etc., set out in pars.
    (1) to (4).

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-8 effective 180 days after Apr. 20,
    2005, and not applicable with respect to cases commenced under
    Title 11, Bankruptcy, before such effective date, except as
    otherwise provided, see section 1501 of Pub. L. 109-8, set out as a
    note under section 101 of Title 11.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

-End-



-CITE-
    15 USC Sec. 1665                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part C - Credit Advertising

-HEAD-
    Sec. 1665. Nonliability of advertising media

-STATUTE-
      There is no liability under this part on the part of any owner or
    personnel, as such, of any medium in which an advertisement appears
    or through which it is disseminated.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 145, May 29, 1968, 82 Stat. 159.)

-End-



-CITE-
    15 USC Sec. 1665a                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part C - Credit Advertising

-HEAD-
    Sec. 1665a. Use of annual percentage rate in oral disclosures;
      exceptions

-STATUTE-
       In responding orally to any inquiry about the cost of credit, a
    creditor, regardless of the method used to compute finance charges,
    shall state rates only in terms of the annual percentage rate,
    except that in the case of an open end credit plan, the periodic
    rate also may be stated and, in the case of an other than open end
    credit plan where a major component of the finance charge consists
    of interest computed at a simple annual rate, the simple annual
    rate also may be stated. The Board may, by regulation, modify the
    requirements of this section or provide an exception from this
    section for a transaction or class of transactions for which the
    creditor cannot determine in advance the applicable annual
    percentage rate.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 146, as added Pub. L. 93-495, title
    IV, Sec. 401(a), Oct. 28, 1974, 88 Stat. 1517; amended Pub. L. 96-
    221, title VI, Sec. 623(a), Mar. 31, 1980, 94 Stat. 185.)


-MISC1-
                                AMENDMENTS                            
      1980 - Pub. L. 96-221 substituted provisions relating to use of
    annual percentage rate in oral disclosures by creditors, for
    provisions setting forth requirements for advertisements concerning
    consumer credit repayable in more than four installments.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

                              EFFECTIVE DATE                          
      Section 416 of title IV of Pub. L. 93-495 provided that: "This
    title [enacting this section and sections 1614 and 1645 of this
    title, amending sections 1603, 1607, 1635, 1637, 1640, and 1644 of
    this title, and enacting provision set out as a note under section
    1640 of this title] takes effect upon the date of its enactment
    [Oct. 28, 1974], except that sections 409 [amending section 1631 of
    this title] and 411 [amending section 1637 of this title] take
    effect upon the expiration of one year after the date of its
    enactment [Oct. 28, 1974]."

-End-



-CITE-
    15 USC Sec. 1665b                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part C - Credit Advertising

-HEAD-
    Sec. 1665b. Advertising of open end consumer credit plans secured
      by consumer's principal dwelling

-STATUTE-
    (a) In general
      If any advertisement to aid, promote, or assist, directly or
    indirectly, the extension of consumer credit through an open end
    consumer credit plan under which extensions of credit are secured
    by the consumer's principal dwelling states, affirmatively or
    negatively, any of the specific terms of the plan, including any
    periodic payment amount required under such plan, such
    advertisement shall also clearly and conspicuously set forth the
    following information, in such form and manner as the Board may
    require:
      (1) Loan fees and opening cost estimates
        Any loan fee the amount of which is determined as a percentage
      of the credit limit applicable to an account under the plan and
      an estimate of the aggregate amount of other fees for opening the
      account, based on the creditor's experience with the plan and
      stated as a single amount or as a reasonable range.
      (2) Periodic rates
        In any case in which periodic rates may be used to compute the
      finance charge, the periodic rates expressed as an annual
      percentage rate.
      (3) Highest annual percentage rate
        The highest annual percentage rate which may be imposed under
      the plan.
      (4) Other information
        Any other information the Board may by regulation require.
    (b) Tax deductibility
      (1) In general
        If any advertisement described in subsection (a) of this
      section contains a statement that any interest expense incurred
      with respect to the plan is or may be tax deductible, the
      advertisement shall not be misleading with respect to such
      deductibility.
      (2) Credit in excess of fair market value
        Each advertisement described in subsection (a) of this section
      that relates to an extension of credit that may exceed the fair
      market value of the dwelling, and which advertisement is
      disseminated in paper form to the public or through the Internet,
      as opposed to by radio or television, shall include a clear and
      conspicuous statement that - 
          (A) the interest on the portion of the credit extension that
        is greater than the fair market value of the dwelling is not
        tax deductible for Federal income tax purposes; and
          (B) the consumer should consult a tax adviser for further
        information regarding the deductibility of interest and
        charges.
    (c) Certain terms prohibited
      No advertisement described in subsection (a) of this section with
    respect to any home equity account may refer to such loan as "free
    money" or use other terms determined by the Board by regulation to
    be misleading.
    (d) Discounted initial rate
      (1) In general
        If any advertisement described in subsection (a) of this
      section includes an initial annual percentage rate that is not
      determined by the index or formula used to make later interest
      rate adjustments, the advertisement shall also state with equal
      prominence the current annual percentage rate that would have
      been applied using the index or formula if such initial rate had
      not been offered.
      (2) Quoted rate must be reasonably current
        The annual percentage rate required to be disclosed under the
      paragraph (1) rate must be current as of a reasonable time given
      the media involved.
      (3) Period during which initial rate is in effect
        Any advertisement to which paragraph (1) applies shall also
      state the period of time during which the initial annual
      percentage rate referred to in such paragraph will be in effect.
    (e) Balloon payment
      If any advertisement described in subsection (a) of this section
    contains a statement regarding the minimum monthly payment under
    the plan, the advertisement shall also disclose, if applicable, the
    fact that the plan includes a balloon payment.
    (f) "Balloon payment" defined
      For purposes of this section and section 1637a of this title, the
    term "balloon payment" means, with respect to any open end consumer
    credit plan under which extensions of credit are secured by the
    consumer's principal dwelling, any repayment option under which - 
        (1) the account holder is required to repay the entire amount
      of any outstanding balance as of a specified date or at the end
      of a specified period of time, as determined in accordance with
      the terms of the agreement pursuant to which such credit is
      extended; and
        (2) the aggregate amount of the minimum periodic payments
      required would not fully amortize such outstanding balance by
      such date or at the end of such period.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 147, as added Pub. L. 100-709, Sec.
    2(c), Nov. 23, 1988, 102 Stat. 4730; amended Pub. L. 109-8, title
    XIII, Sec. 1302(a)(2), Apr. 20, 2005, 119 Stat. 208.)


-MISC1-
                                AMENDMENTS                            
      2005 - Subsec. (b). Pub. L. 109-8 designated existing provisions
    as par. (1), inserted par. heading, and added par. (2).

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-8 effective 180 days after Apr. 20,
    2005, and not applicable with respect to cases commenced under
    Title 11, Bankruptcy, before such effective date, except as
    otherwise provided, see section 1501 of Pub. L. 109-8, set out as a
    note under section 101 of Title 11.

                              EFFECTIVE DATE                          
      For effective date of section, see Regulations; Effective Date
    note below.

                        REGULATIONS; EFFECTIVE DATE                    
      For provisions relating to promulgation of regulations to
    implement amendment by Pub. L. 100-709 [enacting this section], and
    effective date of such amendment in connection with those
    regulations, see section 7 of Pub. L. 100-709, set out as a note
    under section 1637a of this title.

-End-


-CITE-
    15 USC Part D - Credit Billing                              01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part D - Credit Billing

-HEAD-
                          PART D - CREDIT BILLING                      

-End-



-CITE-
    15 USC Sec. 1666                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part D - Credit Billing

-HEAD-
    Sec. 1666. Correction of billing errors

-STATUTE-
    (a) Written notice by obligor to creditor; time for and contents of
      notice; procedure upon receipt of notice by creditor
      If a creditor, within sixty days after having transmitted to an
    obligor a statement of the obligor's account in connection with an
    extension of consumer credit, receives at the address disclosed
    under section 1637(b)(10) of this title a written notice (other
    than notice on a payment stub or other payment medium supplied by
    the creditor if the creditor so stipulates with the disclosure
    required under section 1637(a)(7) of this title) from the obligor
    in which the obligor - 
        (1) sets forth or otherwise enables the creditor to identify
      the name and account number (if any) of the obligor,
        (2) indicates the obligor's belief that the statement contains
      a billing error and the amount of such billing error, and
        (3) sets forth the reasons for the obligor's belief (to the
      extent applicable) that the statement contains a billing error,

    the creditor shall, unless the obligor has, after giving such
    written notice and before the expiration of the time limits herein
    specified, agreed that the statement was correct - 
        (A) not later than thirty days after the receipt of the notice,
      send a written acknowledgment thereof to the obligor, unless the
      action required in subparagraph (B) is taken within such thirty-
      day period, and
        (B) not later than two complete billing cycles of the creditor
      (in no event later than ninety days) after the receipt of the
      notice and prior to taking any action to collect the amount, or
      any part thereof, indicated by the obligor under paragraph (2)
      either - 
          (i) make appropriate corrections in the account of the
        obligor, including the crediting of any finance charges on
        amounts erroneously billed, and transmit to the obligor a
        notification of such corrections and the creditor's explanation
        of any change in the amount indicated by the obligor under
        paragraph (2) and, if any such change is made and the obligor
        so requests, copies of documentary evidence of the obligor's
        indebtedness; or
          (ii) send a written explanation or clarification to the
        obligor, after having conducted an investigation, setting forth
        to the extent applicable the reasons why the creditor believes
        the account of the obligor was correctly shown in the statement
        and, upon request of the obligor, provide copies of documentary
        evidence of the obligor's indebtedness. In the case of a
        billing error where the obligor alleges that the creditor's
        billing statement reflects goods not delivered to the obligor
        or his designee in accordance with the agreement made at the
        time of the transaction, a creditor may not construe such
        amount to be correctly shown unless he determines that such
        goods were actually delivered, mailed, or otherwise sent to the
        obligor and provides the obligor with a statement of such
        determination.

    After complying with the provisions of this subsection with respect
    to an alleged billing error, a creditor has no further
    responsibility under this section if the obligor continues to make
    substantially the same allegation with respect to such error.
    (b) Billing error
      For the purpose of this section, a "billing error" consists of
    any of the following:
        (1) A reflection on a statement of an extension of credit which
      was not made to the obligor or, if made, was not in the amount
      reflected on such statement.
        (2) A reflection on a statement of an extension of credit for
      which the obligor requests additional clarification including
      documentary evidence thereof.
        (3) A reflection on a statement of goods or services not
      accepted by the obligor or his designee or not delivered to the
      obligor or his designee in accordance with the agreement made at
      the time of a transaction.
        (4) The creditor's failure to reflect properly on a statement a
      payment made by the obligor or a credit issued to the obligor.
        (5) A computation error or similar error of an accounting
      nature of the creditor on a statement.
        (6) Failure to transmit the statement required under section
      1637(b) of this title to the last address of the obligor which
      has been disclosed to the creditor, unless that address was
      furnished less than twenty days before the end of the billing
      cycle for which the statement is required.
        (7) Any other error described in regulations of the Board.
    (c) Action by creditor to collect amount or any part thereof
      regarded by obligor to be a billing error
      For the purposes of this section, "action to collect the amount,
    or any part thereof, indicated by an obligor under paragraph (2)"
    does not include the sending of statements of account, which may
    include finance charges on amounts in dispute, to the obligor
    following written notice from the obligor as specified under
    subsection (a) of this section, if - 
        (1) the obligor's account is not restricted or closed because
      of the failure of the obligor to pay the amount indicated under
      paragraph (2) of subsection (a) of this section, and
        (2) the creditor indicates the payment of such amount is not
      required pending the creditor's compliance with this section.

    Nothing in this section shall be construed to prohibit any action
    by a creditor to collect any amount which has not been indicated by
    the obligor to contain a billing error.
    (d) Restricting or closing by creditor of account regarded by
      obligor to contain a billing error
      Pursuant to regulations of the Board, a creditor operating an
    open end consumer credit plan may not, prior to the sending of the
    written explanation or clarification required under paragraph
    (B)(ii), restrict or close an account with respect to which the
    obligor has indicated pursuant to subsection (a) of this section
    that he believes such account to contain a billing error solely
    because of the obligor's failure to pay the amount indicated to be
    in error. Nothing in this subsection shall be deemed to prohibit a
    creditor from applying against the credit limit on the obligor's
    account the amount indicated to be in error.
    (e) Effect of noncompliance with requirements by creditor
      Any creditor who fails to comply with the requirements of this
    section or section 1666a of this title forfeits any right to
    collect from the obligor the amount indicated by the obligor under
    paragraph (2) of subsection (a) of this section, and any finance
    charges thereon, except that the amount required to be forfeited
    under this subsection may not exceed $50.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 161, as added Pub. L. 93-495, title
    III, Sec. 306, Oct. 28, 1974, 88 Stat. 1512; amended Pub. L. 96-
    221, title VI Secs. 613(g), 620, Mar. 31, 1980, 94 Stat. 177,
    184.)


-MISC1-
                                AMENDMENTS                            
      1980 - Subsec. (a). Pub. L. 96-221, Sec. 613(g), substituted
    "(b)(10)" for "(b)(11)" and "(a)(7)" for "(a)(8)".
      Subsec. (b)(6), (7). Pub. L. 96-221, Sec. 620(a), added par. (6)
    and redesignated former par. (6) as (7).
      Subsec. (c). Pub. L. 96-221, Sec. 620(b), inserted provisions
    respecting finance charges on amounts in dispute.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment buy Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

                              EFFECTIVE DATE                          
      Section 308 of title III of Pub. L. 93-495 provided that: "This
    title [enacting this section and sections 1666a to 1666j of this
    title, amending sections 1601, 1602, 1610, 1631, 1632, and 1637 of
    this title, and enacting provision set out as a note under section
    1601 of this title] takes effect upon the expiration of one year
    after the date of its enactment [Oct. 28, 1974]."

                                SHORT TITLE                            
      Title III of Pub. L. 93-495, which is classified principally to
    this part, is known as the "Fair Credit Billing Act". For complete
    classification of Title III to the Code, see Short Title of 1974
    Amendment note set out under section 1601 of this title and Tables.

-End-



-CITE-
    15 USC Sec. 1666a                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part D - Credit Billing

-HEAD-
    Sec. 1666a. Regulation of credit reports

-STATUTE-
    (a) Reports by creditor on obligor's failure to pay amount regarded
      as billing error
      After receiving a notice from an obligor as provided in section
    1666(a) of this title, a creditor or his agent may not directly or
    indirectly threaten to report to any person adversely on the
    obligor's credit rating or credit standing because of the obligor's
    failure to pay the amount indicated by the obligor under section
    1666(a)(2) of this title, and such amount may not be reported as
    delinquent to any third party until the creditor has met the
    requirements of section 1666 of this title and has allowed the
    obligor the same number of days (not less than ten) thereafter to
    make payment as is provided under the credit agreement with the
    obligor for the payment of undisputed amounts.
    (b) Reports by creditor on delinquent amounts in dispute;
      notification of obligor of parties notified of delinquency
      If a creditor receives a further written notice from an obligor
    that an amount is still in dispute within the time allowed for
    payment under subsection (a) of this section, a creditor may not
    report to any third party that the amount of the obligor is
    delinquent because the obligor has failed to pay an amount which he
    has indicated under section 1666(a)(2) of this title, unless the
    creditor also reports that the amount is in dispute and, at the
    same time, notifies the obligor of the name and address of each
    party to whom the creditor is reporting information concerning the
    delinquency.
    (c) Reports by creditor of subsequent resolution of delinquent
      amounts
      A creditor shall report any subsequent resolution of any
    delinquencies reported pursuant to subsection (b) of this section
    to the parties to whom such delinquencies were initially reported.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 162, as added Pub. L. 93-495, title
    III, Sec. 306, Oct. 28, 1974, 88 Stat. 1513.)

-End-



-CITE-
    15 USC Sec. 1666b                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part D - Credit Billing

-HEAD-
    Sec. 1666b. Length of billing period in credit statement for
      imposition of finance charge; effect of failure of timely mailing
      or delivery of statement

-STATUTE-
    (a) Additional finance charge
      If an open end consumer credit plan provides a time period within
    which an obligor may repay any portion of the credit extended
    without incurring an additional finance charge, such additional
    finance charge may not be imposed with respect to such portion of
    the credit extended for the billing cycle of which such period is a
    part unless a statement which includes the amount upon which the
    finance charge for that period is based was mailed at least
    fourteen days prior to the date specified in the statement by which
    payment must be made in order to avoid imposition of that finance
    charge.
    (b) Excusable cause
      Subsection (a) of this section does not apply in any case where a
    creditor has been prevented, delayed, or hindered in making timely
    mailing or delivery of such periodic statement within the time
    period specified in such subsection because of an act of God, war,
    natural disaster, strike, or other excusable or justifiable cause,
    as determined under regulations of the Board.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 163, as added Pub. L. 93-495, title
    III, Sec. 306, Oct. 28, 1974, 88 Stat. 1514.)

-End-



-CITE-
    15 USC Sec. 1666c                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part D - Credit Billing

-HEAD-
    Sec. 1666c. Prompt crediting of payments; imposition of finance
      charge

-STATUTE-
      Payments received from an obligor under an open end consumer
    credit plan by the creditor shall be posted promptly to the
    obligor's account as specified in regulations of the Board. Such
    regulations shall prevent a finance charge from being imposed on
    any obligor if the creditor has received the obligor's payment in
    readily identifiable form in the amount, manner, location, and time
    indicated by the creditor to avoid the imposition thereof.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 164, as added Pub. L. 93-495, title
    III, Sec. 306, Oct. 28, 1974, 88 Stat. 1514.)

-End-



-CITE-
    15 USC Sec. 1666d                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part D - Credit Billing

-HEAD-
    Sec. 1666d. Treatment of credit balances

-STATUTE-
      Whenever a credit balance in excess of $1 is created in
    connection with a consumer credit transaction through (1)
    transmittal of funds to a creditor in excess of the total balance
    due on an account, (2) rebates of unearned finance charges or
    insurance premiums, or (3) amounts otherwise owed to or held for
    the benefit of an obligor, the creditor shall - 
        (A) credit the amount of the credit balance to the consumer's
      account;
        (B) refund any part of the amount of the remaining credit
      balance, upon request of the consumer; and
        (C) make a good faith effort to refund to the consumer by cash,
      check, or money order any part of the amount of the credit
      balance remaining in the account for more than six months, except
      that no further action is required in any case in which the
      consumer's current location is not known by the creditor and
      cannot be traced through the consumer's last known address or
      telephone number.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 165, as added Pub. L. 93-495, title
    III, Sec. 306, Oct. 28, 1974, 88 Stat. 1514; amended Pub. L. 96-
    221, title VI, Sec. 621(a), Mar. 31, 1980, 94 Stat. 184.)


-MISC1-
                                AMENDMENTS                            
      1980 - Pub. L. 96-221 substituted provisions relating to duties
    of creditor whenever a credit balance in excess of $1 is created in
    connection with a consumer credit transaction, for provisions
    relating to duties of creditor whenever an obligor transmits funds
    to creditor in excess of the total balance due on an open end
    consumer credit account.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

-End-



-CITE-
    15 USC Sec. 1666e                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part D - Credit Billing

-HEAD-
    Sec. 1666e. Notification of credit card issuer by seller of return
      of goods, etc., by obligor; credit for account of obligor

-STATUTE-
      With respect to any sales transaction where a credit card has
    been used to obtain credit, where the seller is a person other than
    the card issuer, and where the seller accepts or allows a return of
    the goods or forgiveness of a debit for services which were the
    subject of such sale, the seller shall promptly transmit to the
    credit card issuer, a credit statement with respect thereto and the
    credit card issuer shall credit the account of the obligor for the
    amount of the transaction.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 166, as added Pub. L. 93-495, title
    III, Sec. 306, Oct. 28, 1974, 88 Stat. 1514.)

-End-



-CITE-
    15 USC Sec. 1666f                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part D - Credit Billing

-HEAD-
    Sec. 1666f. Inducements to cardholders by sellers of cash discounts
      for payments by cash, check or similar means; finance charge for
      sales transactions involving cash discounts

-STATUTE-
    (a) Cash discounts
      With respect to credit card which may be used for extensions of
    credit in sales transactions in which the seller is a person other
    than the card issuer, the card issuer may not, by contract, or
    otherwise, prohibit any such seller from offering a discount to a
    cardholder to induce the cardholder to pay by cash, check, or
    similar means rather than use a credit card.
    (b) Finance charge
      With respect to any sales transaction, any discount from the
    regular price offered by the seller for the purpose of inducing
    payment by cash, checks, or other means not involving the use of an
    open-end credit plan or a credit card shall not constitute a
    finance charge as determined under section 1605 of this title if
    such discount is offered to all prospective buyers and its
    availability is disclosed clearly and conspicuously.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 167, as added Pub. L. 93-495, title
    III, Sec. 306, Oct. 28, 1974, 88 Stat. 1515; amended Pub. L. 94-
    222, Sec. 3(c)(1), Feb. 27, 1976, 90 Stat. 197; Pub. L. 97-25,
    title I, Sec. 101, July 27, 1981, 95 Stat. 144.)


-MISC1-
                                AMENDMENTS                            
      1981 - Subsec. (b). Pub. L. 97-25 substituted "With respect to
    any sales transaction, any discount from the regular price offered
    by the seller for the purpose of inducing payment by cash, checks,
    or other means not involving the use of an open-end credit plan or
    a credit card shall not constitute a finance charge as determined
    under section 1605 of this title if such discount is offered to all
    prospective buyers and its availability is disclosed clearly and
    conspicuously" for "With respect to any sales transaction, any
    discount not in excess of 5 per centum offered by the seller for
    the purpose of inducing payment by cash, check, or other means not
    involving the use of a credit card shall not constitute a finance
    charge as determined under section 1605 of this title, if such
    discount is offered to all prospective buyers and its availability
    is disclosed to all prospective buyers clearly and conspicuously in
    accordance with regulations of the Board".
      1976 - Subsec. (a). Pub. L. 94-222 temporarily designated
    existing provisions as par. (1) and added par. (2). See Termination
    Date of 1976 Amendment note below.

                    TERMINATION DATE OF 1976 AMENDMENT                
      Section 3(c)(2) of Pub. L. 94-222, as amended by Pub. L. 95-630,
    title XV, Sec. 1501, Nov. 10, 1978, 92 Stat. 3713; Pub. L. 97-25,
    title II, Sec. 201, July 27, 1981, 95 Stat. 44, provided that: "The
    amendments made by paragraph (1) [amending this section] shall
    cease to be effective on February 27, 1984."

     NULLIFICATION OF BOARD RULES AND REGULATIONS UNDER SUBSECTION (B)
                OF THIS SECTION IN EFFECT ON JULY 26, 1981
      Section 103 of Pub. L. 97-25 provided that: "Any rule or
    regulation of the Board of Governors of the Federal Reserve System
    pursuant to section 167(b) of the Truth in Lending Act [subsec. (b)
    of this section], as such section was in effect on the day before
    the date of enactment of this Act [July 27, 1981], is null and
    void."

-End-



-CITE-
    15 USC Sec. 1666g                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part D - Credit Billing

-HEAD-
    Sec. 1666g. Tie-in services prohibited for issuance of credit card

-STATUTE-
      Notwithstanding any agreement to the contrary, a card issuer may
    not require a seller, as a condition to participating in a credit
    card plan, to open an account with or procure any other service
    from the card issuer or its subsidiary or agent.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 168, as added Pub. L. 93-495, title
    III, Sec. 306, Oct. 28, 1974, 88 Stat. 1515.)

-End-



-CITE-
    15 USC Sec. 1666h                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part D - Credit Billing

-HEAD-
    Sec. 1666h. Offset of cardholder's indebtedness by issuer of credit
      card with funds deposited with issuer by cardholder; remedies of
      creditors under State law not affected

-STATUTE-
    (a) Offset against consumer's funds
      A card issuer may not take any action to offset a cardholder's
    indebtedness arising in connection with a consumer credit
    transaction under the relevant credit card plan against funds of
    the cardholder held on deposit with the card issuer unless - 
        (1) such action was previously authorized in writing by the
      cardholder in accordance with a credit plan whereby the
      cardholder agrees periodically to pay debts incurred in his open
      end credit account by permitting the card issuer periodically to
      deduct all or a portion of such debt from the cardholder's
      deposit account, and
        (2) such action with respect to any outstanding disputed amount
      not be taken by the card issuer upon request of the cardholder.

    In the case of any credit card account in existence on the
    effective date of this section, the previous written authorization
    referred to in clause (1) shall not be required until the date
    (after such effective date) when such account is renewed, but in no
    case later than one year after such effective date. Such written
    authorization shall be deemed to exist if the card issuer has
    previously notified the cardholder that the use of his credit card
    account will subject any funds which the card issuer holds in
    deposit accounts of such cardholder to offset against any amounts
    due and payable on his credit card account which have not been paid
    in accordance with the terms of the agreement between the card
    issuer and the cardholder.
    (b) Attachments and levies
      This section does not alter or affect the right under State law
    of a card issuer to attach or otherwise levy upon funds of a
    cardholder held on deposit with the card issuer if that remedy is
    constitutionally available to creditors generally.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 169, as added Pub. L. 93-495, title
    III, Sec. 306, Oct. 28, 1974, 88 Stat. 1515.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For effective date of this section, referred to in subsec. (a),
    see Effective Date note set out under section 1666 of this title.

-End-



-CITE-
    15 USC Sec. 1666i                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part D - Credit Billing

-HEAD-
    Sec. 1666i. Assertion by cardholder against card issuer of claims
      and defenses arising out of credit card transaction;
      prerequisites; limitation on amount of claims or defenses

-STATUTE-
    (a) Claims and defenses assertible
      Subject to the limitation contained in subsection (b) of this
    section, a card issuer who has issued a credit card to a cardholder
    pursuant to an open end consumer credit plan shall be subject to
    all claims (other than tort claims) and defenses arising out of any
    transaction in which the credit card is used as a method of payment
    or extension of credit if (1) the obligor has made a good faith
    attempt to obtain satisfactory resolution of a disagreement or
    problem relative to the transaction from the person honoring the
    credit card; (2) the amount of the initial transaction exceeds $50;
    and (3) the place where the initial transaction occurred was in the
    same State as the mailing address previously provided by the
    cardholder or was within 100 miles from such address, except that
    the limitations set forth in clauses (2) and (3) with respect to an
    obligor's right to assert claims and defenses against a card issuer
    shall not be applicable to any transaction in which the person
    honoring the credit card (A) is the same person as the card issuer,
    (B) is controlled by the card issuer, (C) is under direct or
    indirect common control with the card issuer, (D) is a franchised
    dealer in the card issuer's products or services, or (E) has
    obtained the order for such transaction through a mail solicitation
    made by or participated in by the card issuer in which the
    cardholder is solicited to enter into such transaction by using the
    credit card issued by the card issuer.
    (b) Amount of claims and defenses assertible
      The amount of claims or defenses asserted by the cardholder may
    not exceed the amount of credit outstanding with respect to such
    transaction at the time the cardholder first notifies the card
    issuer or the person honoring the credit card of such claim or
    defense. For the purpose of determining the amount of credit
    outstanding in the preceding sentence, payments and credits to the
    cardholder's account are deemed to have been applied, in the order
    indicated, to the payment of: (1) late charges in the order of
    their entry to the account; (2) finance charges in order of their
    entry to the account; and (3) debits to the account other than
    those set forth above, in the order in which each debit entry to
    the account was made.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 170, as added Pub. L. 93-495, title
    III, Sec. 306, Oct. 28, 1974, 88 Stat. 1515.)

-End-



-CITE-
    15 USC Sec. 1666j                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part D - Credit Billing

-HEAD-
    Sec. 1666j. Applicability of State laws

-STATUTE-
    (a) Consistency of provisions
      This part does not annul, alter, or affect, or exempt any person
    subject to the provisions of this part from complying with, the
    laws of any State with respect to credit billing practices, except
    to the extent that those laws are inconsistent with any provision
    of this part, and then only to the extent of the inconsistency. The
    Board is authorized to determine whether such inconsistencies
    exist. The Board may not determine that any State law is
    inconsistent with any provision of this part if the Board
    determines that such law gives greater protection to the consumer.
    (b) Exemptions by Board from credit billing requirements
      The Board shall by regulation exempt from the requirements of
    this part any class of credit transactions within any State if it
    determines that under the law of that State that class of
    transactions is subject to requirements substantially similar to
    those imposed under this part or that such law gives greater
    protection to the consumer, and that there is adequate provision
    for enforcement.
    (c) Finance charge or other charge for credit for sales
      transactions involving cash discounts
      Notwithstanding any other provisions of this subchapter, any
    discount offered under section 1666f(b) of this title shall not be
    considered a finance charge or other charge for credit under the
    usury laws of any State or under the laws of any State relating to
    disclosure of information in connection with credit transactions,
    or relating to the types, amounts or rates of charges, or to any
    element or elements of charges permissible under such laws in
    connection with the extension or use of credit.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 171, as added Pub. L. 93-495, title
    III, Sec. 306, Oct. 28, 1974, 88 Stat. 1516; amended Pub. L. 94-
    222, Sec. 3(d), Feb. 27, 1976, 90 Stat. 198.)


-MISC1-
                                AMENDMENTS                            
      1976 - Subsec. (c). Pub. L. 94-222 added subsec. (c).

-End-


-CITE-
    15 USC Part E - Consumer Leases                             01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part E - Consumer Leases

-HEAD-
                         PART E - CONSUMER LEASES                     

-End-



-CITE-
    15 USC Sec. 1667                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part E - Consumer Leases

-HEAD-
    Sec. 1667. Definitions

-STATUTE-
      For purposes of this part - 
        (1) The term "consumer lease" means a contract in the form of a
      lease or bailment for the use of personal property by a natural
      person for a period of time exceeding four months, and for a
      total contractual obligation not exceeding $25,000, primarily for
      personal, family, or household purposes, whether or not the
      lessee has the option to purchase or otherwise become the owner
      of the property at the expiration of the lease, except that such
      term shall not include any credit sale as defined in section
      1602(g) of this title. Such term does not include a lease for
      agricultural, business, or commercial purposes, or to a
      government or governmental agency or instrumentality, or to an
      organization.
        (2) The term "lessee" means a natural person who leases or is
      offered a consumer lease.
        (3) The term "lessor" means a person who is regularly engaged
      in leasing, offering to lease, or arranging to lease under a
      consumer lease.
        (4) The term "personal property" means any property which is
      not real property under the laws of the State where situated at
      the time offered or otherwise made available for lease.
        (5) The terms "security" and "security interest" mean any
      interest in property which secures payment or performance of an
      obligation.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 181, as added Pub. L. 94-240, Sec.
    3, Mar. 23, 1976, 90 Stat. 257.)


-MISC1-
                              EFFECTIVE DATE                          
      Section 6 of Pub. L. 94-240 provided that: "This Act [enacting
    this section and sections 1667a to 1667e of this title, amending
    sections 1601 and 1640 of this title, and enacting provisions set
    out as a note under section 1601 of this title] takes effect one
    year after the date of its enactment [Mar. 23, 1976]."

-End-



-CITE-
    15 USC Sec. 1667a                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part E - Consumer Leases

-HEAD-
    Sec. 1667a. Consumer lease disclosures

-STATUTE-
      Each lessor shall give a lessee prior to the consummation of the
    lease a dated written statement on which the lessor and lessee are
    identified setting out accurately and in a clear and conspicuous
    manner the following information with respect to that lease, as
    applicable:
        (1) A brief description or identification of the leased
      property;
        (2) The amount of any payment by the lessee required at the
      inception of the lease;
        (3) The amount paid or payable by the lessee for official fees,
      registration, certificate of title, or license fees or taxes;
        (4) The amount of other charges payable by the lessee not
      included in the periodic payments, a description of the charges
      and that the lessee shall be liable for the differential, if any,
      between the anticipated fair market value of the leased property
      and its appraised actual value at the termination of the lease,
      if the lessee has such liability;
        (5) A statement of the amount or method of determining the
      amount of any liabilities the lease imposes upon the lessee at
      the end of the term and whether or not the lessee has the option
      to purchase the leased property and at what price and time;
        (6) A statement identifying all express warranties and
      guarantees made by the manufacturer or lessor with respect to the
      leased property, and identifying the party responsible for
      maintaining or servicing the leased property together with a
      description of the responsibility;
        (7) A brief description of insurance provided or paid for by
      the lessor or required of the lessee, including the types and
      amounts of the coverages and costs;
        (8) A description of any security interest held or to be
      retained by the lessor in connection with the lease and a clear
      identification of the property to which the security interest
      relates;
        (9) The number, amount, and due dates or periods of payments
      under the lease and the total amount of such periodic payments;
        (10) Where the lease provides that the lessee shall be liable
      for the anticipated fair market value of the property on
      expiration of the lease, the fair market value of the property at
      the inception of the lease, the aggregate cost of the lease on
      expiration, and the differential between them; and
        (11) A statement of the conditions under which the lessee or
      lessor may terminate the lease prior to the end of the term and
      the amount or method of determining any penalty or other charge
      for delinquency, default, late payments, or early termination.

    The disclosures required under this section may be made in the
    lease contract to be signed by the lessee. The Board may provide by
    regulation that any portion of the information required to be
    disclosed under this section may be given in the form of estimates
    where the lessor is not in a position to know exact information.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 182, as added Pub. L. 94-240, Sec.
    3, Mar. 23, 1976, 90 Stat. 258.)

-End-



-CITE-
    15 USC Sec. 1667b                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part E - Consumer Leases

-HEAD-
    Sec. 1667b. Lessee's liability on expiration or termination of
      lease

-STATUTE-
    (a) Estimated residual value of property as basis; presumptions;
      action by lessor for excess liability; mutually agreeable final
      adjustment
      Where the lessee's liability on expiration of a consumer lease is
    based on the estimated residual value of the property such
    estimated residual value shall be a reasonable approximation of the
    anticipated actual fair market value of the property on lease
    expiration. There shall be a rebuttable presumption that the
    estimated residual value is unreasonable to the extent that the
    estimated residual value exceeds the actual residual value by more
    than three times the average payment allocable to a monthly period
    under the lease. In addition, where the lessee has such liability
    on expiration of a consumer lease there shall be a rebuttable
    presumption that the lessor's estimated residual value is not in
    good faith to the extent that the estimated residual value exceeds
    the actual residual value by more than three times the average
    payment allocable to a monthly period under the lease and such
    lessor shall not collect from the lessee the amount of such excess
    liability on expiration of a consumer lease unless the lessor
    brings a successful action with respect to such excess liability.
    In all actions, the lessor shall pay the lessee's reasonable
    attorney's fees. The presumptions stated in this section shall not
    apply to the extent the excess of estimated over actual residual
    value is due to physical damage to the property beyond reasonable
    wear and use, or to excessive use, and the lease may set standards
    for such wear and use if such standards are not unreasonable.
    Nothing in this subsection shall preclude the right of a willing
    lessee to make any mutually agreeable final adjustment with respect
    to such excess residual liability, provided such an agreement is
    reached after termination of the lease.
    (b) Penalties and charges for delinquency, default, or early
      termination
      Penalties or other charges for delinquency, default, or early
    termination may be specified in the lease but only at an amount
    which is reasonable in the light of the anticipated or actual harm
    caused by the delinquency, default, or early termination, the
    difficulties of proof of loss, and the inconvenience or
    nonfeasibility of otherwise obtaining an adequate remedy.
    (c) Independent professional appraisal of residual value of
      property at termination of lease; finality
      If a lease has a residual value provision at the termination of
    the lease, the lessee may obtain at his expense, a professional
    appraisal of the leased property by an independent third party
    agreed to by both parties. Such appraisal shall be final and
    binding on the parties.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 183, as added Pub. L. 94-240, Sec.
    3, Mar. 23, 1976, 90 Stat. 259.)

-End-



-CITE-
    15 USC Sec. 1667c                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part E - Consumer Leases

-HEAD-
    Sec. 1667c. Consumer lease advertising; liability of advertising
      media

-STATUTE-
    (a) In general
      If an advertisement for a consumer lease includes a statement of
    the amount of any payment or a statement that any or no initial
    payment is required, the advertisement shall clearly and
    conspicuously state, as applicable - 
        (1) the transaction advertised is a lease;
        (2) the total amount of any initial payments required on or
      before consummation of the lease or delivery of the property,
      whichever is later;
        (3) that a security deposit is required;
        (4) the number, amount, and timing of scheduled payments; and
        (5) with respect to a lease in which the liability of the
      consumer at the end of the lease term is based on the anticipated
      residual value of the property, that an extra charge may be
      imposed at the end of the lease term.
    (b) Advertising medium not liable
      No owner or employee of any entity that serves as a medium in
    which an advertisement appears or through which an advertisement is
    disseminated, shall be liable under this section.
    (c) Radio advertisements
      (1) In general
        An advertisement by radio broadcast to aid, promote, or assist,
      directly or indirectly, any consumer lease shall be deemed to be
      in compliance with the requirements of subsection (a) of this
      section if such advertisement clearly and conspicuously - 
          (A) states the information required by paragraphs (1) and (2)
        of subsection (a) of this section;
          (B) states the number, amounts, due dates or periods of
        scheduled payments, and the total of such payments under the
        lease;
          (C) includes - 
            (i) a referral to - 
              (I) a toll-free telephone number established in
            accordance with paragraph (2) that may be used by consumers
            to obtain the information required under subsection (a) of
            this section; or
              (II) a written advertisement that - 
                (aa) appears in a publication in general circulation in
              the community served by the radio station on which such
              advertisement is broadcast during the period beginning 3
              days before any such broadcast and ending 10 days after
              such broadcast; and
                (bb) includes the information required to be disclosed
              under subsection (a) of this section; and

            (ii) the name and dates of any publication referred to in
          clause (i)(II); and

          (D) includes any other information which the Board determines
        necessary to carry out this part.
      (2) Establishment of toll-free number
        (A) In general
          In the case of a radio broadcast advertisement described in
        paragraph (1) that includes a referral to a toll-free telephone
        number, the lessor who offers the consumer lease shall - 
            (i) establish such a toll-free telephone number not later
          than the date on which the advertisement including the
          referral is broadcast;
            (ii) maintain such telephone number for a period of not
          less than 10 days, beginning on the date of any such
          broadcast; and
            (iii) provide the information required under subsection (a)
          of this section with respect to the lease to any person who
          calls such number.
        (B) Form of information
          The information required to be provided under subparagraph
        (A)(iii) shall be provided verbally or, if requested by the
        consumer, in written form.
      (3) No effect on other law
        Nothing in this subsection shall affect the requirements of
      Federal law as such requirements apply to advertisement by any
      medium other than radio broadcast.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 184, as added Pub. L. 94-240, Sec.
    3, Mar. 23, 1976, 90 Stat. 259; amended Pub. L. 103-325, title III,
    Sec. 336(a), Sept. 23, 1994, 108 Stat. 2234; Pub. L. 104-208, div.
    A, title II, Sec. 2605(c), Sept. 30, 1996, 110 Stat. 3009-473.)


-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (a). Pub. L. 104-208, Sec. 2605(c)(1), (3), added
    subsec. (a) and struck out former subsec. (a) consisting of
    introductory provisions and 5 pars. relating to contents of lease
    agreements required if consumer lease advertisement stated amount
    of payment, number of required payments, or that any or no payments
    were required at lease inception.
      Subsec. (b). Pub. L. 104-208, Sec. 2605(c)(3), added subsec. (b).
    Former subsec. (b) redesignated (c).
      Subsec. (c). Pub. L. 104-208, Sec. 2605(c)(1), (2), redesignated
    subsec. (b) as (c) and struck out former subsec. (c) which read as
    follows: "There is no liability under this section on the part of
    any owner or personnel, as such, of any medium in which an
    advertisement appears or through which it is disseminated."
      1994 - Subsecs. (b), (c). Pub. L. 103-325 added subsec. (b) and
    redesignated former subsec. (b) as (c).

                        STUDY OF ADVERTISING RULES                    
      Section 336(b) of Pub. L. 103-325 provided that: "Not later than
    365 days after the date of enactment of this Act [Sept. 23, 1994],
    the Board of Governors of the Federal Reserve System shall submit a
    report to the Congress on - 
        "(1) the current rules applicable to credit advertising;
        "(2) how such rules could be modified to increase consumer
      benefit and decrease creditor costs; and
        "(3) how such rules could be modified, if at all, for radio
      advertisements without diminishing consumer protection."

-End-



-CITE-
    15 USC Sec. 1667d                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part E - Consumer Leases

-HEAD-
    Sec. 1667d. Civil liability of lessors

-STATUTE-
    (a) Grounds for maintenance of action
      Any lessor who fails to comply with any requirement imposed under
    section 1667a or 1667b of this title with respect to any person is
    liable to such person as provided in section 1640 of this title.
    (b) Additional grounds for maintenance of action; "creditor"
      defined
      Any lessor who fails to comply with any requirement imposed under
    section 1667c of this title with respect to any person who suffers
    actual damage from the violation is liable to such person as
    provided in section 1640 of this title. For the purposes of this
    section, the term "creditor" as used in sections 1640 and 1641 of
    this title shall include a lessor as defined in this part.
    (c) Jurisdiction of courts; time limitation
      Notwithstanding section 1640(e) of this title, any action under
    this section may be brought in any United States district court or
    in any other court of competent jurisdiction. Such actions alleging
    a failure to disclose or otherwise comply with the requirements of
    this part shall be brought within one year of the termination of
    the lease agreement.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 185, as added Pub. L. 94-240, Sec.
    3, Mar. 23, 1976, 90 Stat. 260; amended Pub. L. 96-221, title VI,
    Sec. 624, Mar. 31, 1980, 94 Stat. 185.)


-MISC1-
                                AMENDMENTS                            
      1980 - Subsec. (b). Pub. L. 96-221 struck out applicability of
    section 1614 of this title to term "creditor".

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

-End-



-CITE-
    15 USC Sec. 1667e                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part E - Consumer Leases

-HEAD-
    Sec. 1667e. Applicability of State laws; exemptions by Board from
      leasing requirements

-STATUTE-
      (a) This part does not annul, alter, or affect, or exempt any
    person subject to the provisions of this part from complying with,
    the laws of any State with respect to consumer leases, except to
    the extent that those laws are inconsistent with any provision of
    this part, and then only to the extent of the inconsistency. The
    Board is authorized to determine whether such inconsistencies
    exist. The Board may not determine that any State law is
    inconsistent with any provision of this part if the Board
    determines that such law gives greater protection and benefit to
    the consumer.
      (b) The Board shall by regulation exempt from the requirements of
    this part any class of lease transactions within any State if it
    determines that under the law of that State that class of
    transactions is subject to requirements substantially similar to
    those imposed under this part or that such law gives greater
    protection and benefit to the consumer, and that there is adequate
    provision for enforcement.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 186, as added Pub. L. 94-240, Sec.
    3, Mar. 23, 1976, 90 Stat. 260.)

-End-



-CITE-
    15 USC Sec. 1667f                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER I - CONSUMER CREDIT COST DISCLOSURE
    Part E - Consumer Leases

-HEAD-
    Sec. 1667f. Regulations

-STATUTE-
    (a) Regulations authorized
      (1) In general
        The Board shall prescribe regulations to update and clarify the
      requirements and definitions applicable to lease disclosures and
      contracts, and any other issues specifically related to consumer
      leasing, to the extent that the Board determines such action to
      be necessary - 
          (A) to carry out this part;
          (B) to prevent any circumvention of this part; or
          (C) to facilitate compliance with the requirements of the
        (!1) part.

      (2) Classifications, adjustments
        Any regulations prescribed under paragraph (1) may contain
      classifications and differentiations, and may provide for
      adjustments and exceptions for any class of transactions, as the
      Board considers appropriate.
    (b) Model disclosure
      (1) Publication
        The Board shall establish and publish model disclosure forms to
      facilitate compliance with the disclosure requirements of this
      part and to aid the consumer in understanding the transaction to
      which the subject disclosure form relates.
      (2) Use of automated equipment
        In establishing model forms under this subsection, the Board
      shall consider the use by lessors of data processing or similar
      automated equipment.
      (3) Use optional
        A lessor may utilize a model disclosure form established by the
      Board under this subsection for purposes of compliance with this
      part, at the discretion of the lessor.
      (4) Effect of use
        Any lessor who properly uses the material aspects of any model
      disclosure form established by the Board under this subsection
      shall be deemed to be in compliance with the disclosure
      requirements to which the form relates.

-SOURCE-
    (Pub. L. 90-321, title I, Sec. 187, as added Pub. L. 104-208, div.
    A, title II, Sec. 2605(b)(1), Sept. 30, 1996, 110 Stat. 3009-471.)


-MISC1-
                              EFFECTIVE DATE                          
      Section 2605(b)(2) of div. A of Pub. L. 104-208 provided that:
      "(A) In general. - Any regulation of the Board, or any amendment
    or interpretation of any regulation of the Board issued pursuant to
    section 187 of the Truth in Lending Act [15 U.S.C. 1667f] (as added
    by paragraph (1) of this subsection), shall become effective on the
    first October 1 that follows the date of promulgation of that
    regulation, amendment, or interpretation by not less than 6 months.
      "(B) Longer period. - The Board may, at the discretion of the
    Board, extend the time period referred to in subparagraph (A) in
    accordance with subparagraph (C), to permit lessors to adjust their
    disclosure forms to accommodate the requirements of section 127
    [187] of the Truth in Lending Act (as added by paragraph (1) of
    this subsection).
      "(C) Shorter period. - The Board may shorten the time period
    referred to in subparagraph (A), if the Board makes a specific
    finding that such action is necessary to comply with the findings
    of a court or to prevent an unfair or deceptive practice.
      "(D) Compliance before effective date. - Any lessor may comply
    with any means of disclosure provided for in section 127 [187] of
    the Truth in Lending Act (as added by paragraph (1) of this
    subsection) before the effective date of such requirement.
      "(E) Definitions. - For purposes of this subsection, the term
    'lessor' has the same meaning as in section 181 of the Truth in
    Lending Act [15 U.S.C. 1667]."

            CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSES        
      Section 2605(a) of div. A of Pub. L. 104-208 provided that:
      "(1) Findings. - The Congress finds that - 
        "(A) competition among the various financial institutions and
      other firms engaged in the business of consumer leasing is
      greatest when there is informed use of leasing;
        "(B) the informed use of leasing results from an awareness of
      the cost of leasing by consumers; and
        "(C) there has been a continued trend toward leasing
      automobiles and other durable goods for consumer use as an
      alternative to installment credit sales and that leasing product
      advances have occurred such that lessors have been unable to
      provide consistent industry-wide disclosures to fully account for
      the competitive progress that has occurred.
      "(2) Purposes. - The purposes of this section are - 
        "(A) to assure a simple, meaningful disclosure of leasing terms
      so that the consumer will be able to compare more readily the
      various leasing terms available to the consumer and avoid the
      uninformed use of leasing, and to protect the consumer against
      inaccurate and unfair leasing practices;
        "(B) to provide for adequate cost disclosures that reflect the
      marketplace without impairing competition and the development of
      new leasing products; and
        "(C) to provide the Board with the regulatory authority to
      assure a simplified, meaningful definition and disclosure of the
      terms of certain leases of personal property for personal,
      family, or household purposes so as to - 
          "(i) enable the lessee to compare more readily the various
        lease terms available to the lessee;
          "(ii) enable comparison of lease terms with credit terms, as
        appropriate; and
          "(iii) assure meaningful and accurate disclosures of lease
        terms in advertisements."

-FOOTNOTE-
    (!1) So in original. Probably should be "this".


-End-


-CITE-
    15 USC SUBCHAPTER II - RESTRICTIONS ON GARNISHMENT          01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II - RESTRICTIONS ON GARNISHMENT

-HEAD-
                SUBCHAPTER II - RESTRICTIONS ON GARNISHMENT            

-End-



-CITE-
    15 USC Sec. 1671                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II - RESTRICTIONS ON GARNISHMENT

-HEAD-
    Sec. 1671. Congressional findings and declaration of purpose

-STATUTE-
    (a) Disadvantages of garnishment
      The Congress finds:
        (1) The unrestricted garnishment of compensation due for
      personal services encourages the making of predatory extensions
      of credit. Such extensions of credit divert money into excessive
      credit payments and thereby hinder the production and flow of
      goods in interstate commerce.
        (2) The application of garnishment as a creditors' remedy
      frequently results in loss of employment by the debtor, and the
      resulting disruption of employment, production, and consumption
      constitutes a substantial burden on interstate commerce.
        (3) The great disparities among the laws of the several States
      relating to garnishment have, in effect, destroyed the uniformity
      of the bankruptcy laws and frustrated the purposes thereof in
      many areas of the country.
    (b) Necessity for regulation
      On the basis of the findings stated in subsection (a) of this
    section, the Congress determines that the provisions of this
    subchapter are necessary and proper for the purpose of carrying
    into execution the powers of the Congress to regulate commerce and
    to establish uniform bankruptcy laws.

-SOURCE-
    (Pub. L. 90-321, title III, Sec. 301, May 29, 1968, 82 Stat. 163.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The bankruptcy laws, referred to in subsec. (b), are generally
    classified to Title 11 (Sec. 101 et seq.), Bankruptcy.


-MISC1-
                              EFFECTIVE DATE                          
      Section 504(c) of Pub. L. 90-321 provided that: "Title III
    [enacting this section and sections 1672 to 1677 of this title]
    takes effect on July 1, 1970."

-End-



-CITE-
    15 USC Sec. 1672                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II - RESTRICTIONS ON GARNISHMENT

-HEAD-
    Sec. 1672. Definitions

-STATUTE-
      For the purposes of this subchapter:
      (a) The term "earnings" means compensation paid or payable for
    personal services, whether denominated as wages, salary,
    commission, bonus, or otherwise, and includes periodic payments
    pursuant to a pension or retirement program.
      (b) The term "disposable earnings" means that part of the
    earnings of any individual remaining after the deduction from those
    earnings of any amounts required by law to be withheld.
      (c) The term "garnishment" means any legal or equitable procedure
    through which the earnings of any individual are required to be
    withheld for payment of any debt.

-SOURCE-
    (Pub. L. 90-321, title III, Sec. 302, May 29, 1968, 82 Stat. 163.)

-End-



-CITE-
    15 USC Sec. 1673                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II - RESTRICTIONS ON GARNISHMENT

-HEAD-
    Sec. 1673. Restriction on garnishment

-STATUTE-
    (a) Maximum allowable garnishment
      Except as provided in subsection (b) of this section and in
    section 1675 of this title, the maximum part of the aggregate
    disposable earnings of an individual for any workweek which is
    subjected to garnishment may not exceed
        (1) 25 per centum of his disposable earnings for that week, or
        (2) the amount by which his disposable earnings for that week
      exceed thirty times the Federal minimum hourly wage prescribed by
      section 206(a)(1) of title 29 in effect at the time the earnings
      are payable,

    whichever is less. In the case of earnings for any pay period other
    than a week, the Secretary of Labor shall by regulation prescribe a
    multiple of the Federal minimum hourly wage equivalent in effect to
    that set forth in paragraph (2).
    (b) Exceptions
      (1) The restrictions of subsection (a) of this section do not
    apply in the case of
        (A) any order for the support of any person issued by a court
      of competent jurisdiction or in accordance with an administrative
      procedure, which is established by State law, which affords
      substantial due process, and which is subject to judicial review.
        (B) any order of any court of the United States having
      jurisdiction over cases under chapter 13 of title 11.
        (C) any debt due for any State or Federal tax.

      (2) The maximum part of the aggregate disposable earnings of an
    individual for any workweek which is subject to garnishment to
    enforce any order for the support of any person shall not exceed - 
        (A) where such individual is supporting his spouse or dependent
      child (other than a spouse or child with respect to whose support
      such order is used), 50 per centum of such individual's
      disposable earnings for that week; and
        (B) where such individual is not supporting such a spouse or
      dependent child described in clause (A), 60 per centum of such
      individual's disposable earnings for that week;

    except that, with respect to the disposable earnings of any
    individual for any workweek, the 50 per centum specified in clause
    (A) shall be deemed to be 55 per centum and the 60 per centum
    specified in clause (B) shall be deemed to be 65 per centum, if and
    to the extent that such earnings are subject to garnishment to
    enforce a support order with respect to a period which is prior to
    the twelve-week period which ends with the beginning of such
    workweek.
    (c) Execution or enforcement of garnishment order or process
      prohibited
      No court of the United States or any State, and no State (or
    officer or agency thereof), may make, execute, or enforce any order
    or process in violation of this section.

-SOURCE-
    (Pub. L. 90-321, title III, Sec. 303, May 29, 1968, 82 Stat. 163;
    Pub. L. 95-30, title V, Sec. 501(e)(1)-(3), May 23, 1977, 91 Stat.
    161, 162; Pub. L. 95-598, title III, Sec. 312(a), Nov. 6, 1978, 92
    Stat. 2676.)


-MISC1-
                                AMENDMENTS                            
      1978 - Subsec. (b)(1)(B). Pub. L. 95-598 substituted "court of
    the United States having jurisdiction over cases under chapter 13
    of title 11" for "court of bankruptcy under chapter XIII of the
    Bankruptcy Act".
      1977 - Subsec. (b). Pub. L. 95-30, Sec. 501(e)(1), (2),
    designated existing provisions as par. (1) and existing pars. (1),
    (2), and (3) as subpars. (A), (B), and (C) thereof, substituted
    "for the support of any person issued by a court of competent
    jurisdiction or in accordance with an administrative procedure,
    which is established by State law, which affords substantial due
    process, and which is subject to judicial review" for "of any court
    for the support of any person" in subpar. (A) as so redesignated,
    and added par. (2).
      Subsec. (c). Pub. L. 95-30, Sec. 501(e)(3), inserted ", and no
    State (or officer or agency thereof)," after "or any State".

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section
    402(a) of Pub. L. 95-598, set out as an Effective Date note
    preceding section 101 of Title 11, Bankruptcy.

                     EFFECTIVE DATE OF 1977 AMENDMENT                 
      Section 501(e)(5) of Pub. L. 95-30 provided that: "The amendments
    made by this subsection [amending this section and section 1675 of
    this title] shall take effect on the first day of the first
    calendar month which begins after the date of enactment of this Act
    [May 23, 1977]."

-End-



-CITE-
    15 USC Sec. 1674                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II - RESTRICTIONS ON GARNISHMENT

-HEAD-
    Sec. 1674. Restriction on discharge from employment by reason of
      garnishment

-STATUTE-
    (a) Termination of employment
      No employer may discharge any employee by reason of the fact that
    his earnings have been subjected to garnishment for any one
    indebtedness.
    (b) Penalties
      Whoever willfully violates subsection (a) of this section shall
    be fined not more than $1,000, or imprisoned not more than one
    year, or both.

-SOURCE-
    (Pub. L. 90-321, title III, Sec. 304, May 29, 1968, 82 Stat. 163.)

-End-



-CITE-
    15 USC Sec. 1675                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II - RESTRICTIONS ON GARNISHMENT

-HEAD-
    Sec. 1675. Exemption for State-regulated garnishments

-STATUTE-
      The Secretary of Labor may by regulation exempt from the
    provisions of section 1673(a) and (b)(2) of this title garnishments
    issued under the laws of any State if he determines that the laws
    of that State provide restrictions on garnishment which are
    substantially similar to those provided in section 1673(a) and
    (b)(2) of this title.

-SOURCE-
    (Pub. L. 90-321, title III, Sec. 305, May 29, 1968, 82 Stat. 164;
    Pub. L. 95-30, title V, Sec. 501(e)(4), May 23, 1977, 91 Stat.
    162.)


-MISC1-
                                AMENDMENTS                            
      1977 - Pub. L. 95-30 substituted "section 1673(a) and (b)(2) of
    this title" for "section 1673(a) of this title" in two places.

-End-



-CITE-
    15 USC Sec. 1676                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II - RESTRICTIONS ON GARNISHMENT

-HEAD-
    Sec. 1676. Enforcement by Secretary of Labor

-STATUTE-
      The Secretary of Labor, acting through the Wage and Hour Division
    of the Department of Labor, shall enforce the provisions of this
    subchapter.

-SOURCE-
    (Pub. L. 90-321, title III, Sec. 306, May 29, 1968, 82 Stat. 164.)

-End-



-CITE-
    15 USC Sec. 1677                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II - RESTRICTIONS ON GARNISHMENT

-HEAD-
    Sec. 1677. Effect on State laws

-STATUTE-
      This subchapter does not annul, alter, or affect, or exempt any
    person from complying with, the laws of any State
        (1) prohibiting garnishments or providing for more limited
      garnishment than are allowed under this subchapter, or
        (2) prohibiting the discharge of any employee by reason of the
      fact that his earnings have been subjected to garnishment for
      more than one indebtedness.

-SOURCE-
    (Pub. L. 90-321, title III, Sec. 307, May 29, 1968, 82 Stat. 164.)

-End-


-CITE-
    15 USC SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS        01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

-HEAD-
               SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS           

-End-



-CITE-
    15 USC Sec. 1679                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

-HEAD-
    Sec. 1679. Findings and purposes

-STATUTE-
    (a) Findings
      The Congress makes the following findings:
        (1) Consumers have a vital interest in establishing and
      maintaining their credit worthiness (!1) and credit standing in
      order to obtain and use credit. As a result, consumers who have
      experienced credit problems may seek assistance from credit
      repair organizations which offer to improve the credit standing
      of such consumers.

        (2) Certain advertising and business practices of some
      companies engaged in the business of credit repair services have
      worked a financial hardship upon consumers, particularly those of
      limited economic means and who are inexperienced in credit
      matters.
    (b) Purposes
      The purposes of this subchapter are - 
        (1) to ensure that prospective buyers of the services of credit
      repair organizations are provided with the information necessary
      to make an informed decision regarding the purchase of such
      services; and
        (2) to protect the public from unfair or deceptive advertising
      and business practices by credit repair organizations.

-SOURCE-
    (Pub. L. 90-321, title IV, Sec. 402, as added Pub. L. 104-208, div.
    A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-455.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior title IV of Pub. L. 90-321, May 29, 1968, 82 Stat. 164,
    as amended by Pub. L. 91-344, July 20, 1970, 84 Stat. 440; Pub. L.
    92-321, June 30, 1972, 86 Stat. 382, which was set out as a note
    under section 1601 of this title, established a bipartisan National
    Commission on Consumer Finance to study the functioning and
    structure of the consumer finance industry as well as consumer
    credit transactions generally. The Commission was to submit a final
    report by Dec. 31, 1972, and was to cease to exist thereafter.

                       EFFECTIVE DATE OF SUBCHAPTER                   
      Section 413 of title IV of Pub. L. 90-321, as added by Pub. L.
    104-208, div. A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat.
    3009-462, provided that: "This title [enacting this subchapter]
    shall apply after the end of the 6-month period beginning on the
    date of the enactment of the Credit Repair Organizations Act [Sept.
    30, 1996], except with respect to contracts entered into by a
    credit repair organization before the end of such period."

-FOOTNOTE-
    (!1) So in original. Probably should be "creditworthiness".


-End-



-CITE-
    15 USC Sec. 1679a                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

-HEAD-
    Sec. 1679a. Definitions

-STATUTE-
      For purposes of this subchapter, the following definitions apply:
      (1) Consumer
        The term "consumer" means an individual.
      (2) Consumer credit transaction
        The term "consumer credit transaction" means any transaction in
      which credit is offered or extended to an individual for
      personal, family, or household purposes.
      (3) Credit repair organization
        The term "credit repair organization" - 
          (A) means any person who uses any instrumentality of
        interstate commerce or the mails to sell, provide, or perform
        (or represent that such person can or will sell, provide, or
        perform) any service, in return for the payment of money or
        other valuable consideration, for the express or implied
        purpose of - 
            (i) improving any consumer's credit record, credit history,
          or credit rating; or
            (ii) providing advice or assistance to any consumer with
          regard to any activity or service described in clause (i);
          and

          (B) does not include - 
            (i) any nonprofit organization which is exempt from
          taxation under section 501(c)(3) of title 26;
            (ii) any creditor (as defined in section 1602 of this
          title), with respect to any consumer, to the extent the
          creditor is assisting the consumer to restructure any debt
          owed by the consumer to the creditor; or
            (iii) any depository institution (as that term is defined
          in section 1813 of title 12) or any Federal or State credit
          union (as those terms are defined in section 1752 of title
          12), or any affiliate or subsidiary of such a depository
          institution or credit union.
      (4) Credit
        The term "credit" has the meaning given to such term in section
      1602(e) of this title.

-SOURCE-
    (Pub. L. 90-321, title IV, Sec. 403, as added Pub. L. 104-208, div.
    A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-455.)


-MISC1-
                             PRIOR PROVISIONS                         
      For a prior section 403 of Pub. L. 90-321, see note set out under
    section 1679 of this title.

-End-



-CITE-
    15 USC Sec. 1679b                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

-HEAD-
    Sec. 1679b. Prohibited practices

-STATUTE-
    (a) In general
      No person may - 
        (1) make any statement, or counsel or advise any consumer to
      make any statement, which is untrue or misleading (or which, upon
      the exercise of reasonable care, should be known by the credit
      repair organization, officer, employee, agent, or other person to
      be untrue or misleading) with respect to any consumer's credit
      worthiness,(!1) credit standing, or credit capacity to - 

          (A) any consumer reporting agency (as defined in section
        1681a(f) of this title); or
          (B) any person - 
            (i) who has extended credit to the consumer; or
            (ii) to whom the consumer has applied or is applying for an
          extension of credit;

        (2) make any statement, or counsel or advise any consumer to
      make any statement, the intended effect of which is to alter the
      consumer's identification to prevent the display of the
      consumer's credit record, history, or rating for the purpose of
      concealing adverse information that is accurate and not obsolete
      to - 
          (A) any consumer reporting agency;
          (B) any person - 
            (i) who has extended credit to the consumer; or
            (ii) to whom the consumer has applied or is applying for an
          extension of credit;

        (3) make or use any untrue or misleading representation of the
      services of the credit repair organization; or
        (4) engage, directly or indirectly, in any act, practice, or
      course of business that constitutes or results in the commission
      of, or an attempt to commit, a fraud or deception on any person
      in connection with the offer or sale of the services of the
      credit repair organization.
    (b) Payment in advance
      No credit repair organization may charge or receive any money or
    other valuable consideration for the performance of any service
    which the credit repair organization has agreed to perform for any
    consumer before such service is fully performed.

-SOURCE-
    (Pub. L. 90-321, title IV, Sec. 404, as added Pub. L. 104-208, div.
    A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-456.)


-MISC1-
                             PRIOR PROVISIONS                         
      For a prior section 404 of Pub. L. 90-321, see note set out under
    section 1679 of this title.

-FOOTNOTE-
    (!1) So in original. Probably should be "creditworthiness,".


-End-



-CITE-
    15 USC Sec. 1679c                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

-HEAD-
    Sec. 1679c. Disclosures

-STATUTE-
    (a) Disclosure required
      Any credit repair organization shall provide any consumer with
    the following written statement before any contract or agreement
    between the consumer and the credit repair organization is
    executed:

         "CONSUMER CREDIT FILE RIGHTS UNDER STATE AND FEDERAL LAW     
      "You have a right to dispute inaccurate information in your
    credit report by contacting the credit bureau directly. However,
    neither you nor any 'credit repair' company or credit repair
    organization has the right to have accurate, current, and
    verifiable information removed from your credit report. The credit
    bureau must remove accurate, negative information from your report
    only if it is over 7 years old. Bankruptcy information can be
    reported for 10 years.
      "You have a right to obtain a copy of your credit report from a
    credit bureau. You may be charged a reasonable fee. There is no
    fee, however, if you have been turned down for credit, employment,
    insurance, or a rental dwelling because of information in your
    credit report within the preceding 60 days. The credit bureau must
    provide someone to help you interpret the information in your
    credit file. You are entitled to receive a free copy of your credit
    report if you are unemployed and intend to apply for employment in
    the next 60 days, if you are a recipient of public welfare
    assistance, or if you have reason to believe that there is
    inaccurate information in your credit report due to fraud.
      "You have a right to sue a credit repair organization that
    violates the Credit Repair Organization Act. This law prohibits
    deceptive practices by credit repair organizations.
      "You have the right to cancel your contract with any credit
    repair organization for any reason within 3 business days from the
    date you signed it.
      "Credit bureaus are required to follow reasonable procedures to
    ensure that the information they report is accurate. However,
    mistakes may occur.
      "You may, on your own, notify a credit bureau in writing that you
    dispute the accuracy of information in your credit file. The credit
    bureau must then reinvestigate and modify or remove inaccurate or
    incomplete information. The credit bureau may not charge any fee
    for this service. Any pertinent information and copies of all
    documents you have concerning an error should be given to the
    credit bureau.
      "If the credit bureau's reinvestigation does not resolve the
    dispute to your satisfaction, you may send a brief statement to the
    credit bureau, to be kept in your file, explaining why you think
    the record is inaccurate. The credit bureau must include a summary
    of your statement about disputed information with any report it
    issues about you.
      "The Federal Trade Commission regulates credit bureaus and credit
    repair organizations. For more information contact:

                       "THE PUBLIC REFERENCE BRANCH                   
                         "FEDERAL TRADE COMMISSION                     
                         "WASHINGTON, D.C. 20580".                     
    (b) Separate statement requirement
      The written statement required under this section shall be
    provided as a document which is separate from any written contract
    or other agreement between the credit repair organization and the
    consumer or any other written material provided to the consumer.
    (c) Retention of compliance records
      (1) In general
        The credit repair organization shall maintain a copy of the
      statement signed by the consumer acknowledging receipt of the
      statement.
      (2) Maintenance for 2 years
        The copy of any consumer's statement shall be maintained in the
      organization's files for 2 years after the date on which the
      statement is signed by the consumer.

-SOURCE-
    (Pub. L. 90-321, title IV, Sec. 405, as added Pub. L. 104-208, div.
    A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-457.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Credit Repair Organization Act, referred to in subsec. (a),
    probably means the Credit Repair Organizations Act, Pub. L. 90-321,
    title IV, as added Pub. L. 104-208, div. A, title II, Sec. 2451,
    Sept. 30, 1996, 110 Stat. 3009-454, which is classified generally
    to this subchapter. For complete classification of this Act to the
    Code, see Short Title note set out under section 1601 of this title
    and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      For a prior section 405 of Pub. L. 90-321, see note set out under
    section 1679 of this title.

-End-



-CITE-
    15 USC Sec. 1679d                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

-HEAD-
    Sec. 1679d. Credit repair organizations contracts

-STATUTE-
    (a) Written contracts required
      No services may be provided by any credit repair organization for
    any consumer - 
        (1) unless a written and dated contract (for the purchase of
      such services) which meets the requirements of subsection (b) of
      this section has been signed by the consumer; or
        (2) before the end of the 3-business-day period beginning on
      the date the contract is signed.
    (b) Terms and conditions of contract
      No contract referred to in subsection (a) of this section meets
    the requirements of this subsection unless such contract includes
    (in writing) - 
        (1) the terms and conditions of payment, including the total
      amount of all payments to be made by the consumer to the credit
      repair organization or to any other person;
        (2) a full and detailed description of the services to be
      performed by the credit repair organization for the consumer,
      including - 
          (A) all guarantees of performance; and
          (B) an estimate of - 
            (i) the date by which the performance of the services (to
          be performed by the credit repair organization or any other
          person) will be complete; or
            (ii) the length of the period necessary to perform such
          services;

        (3) the credit repair organization's name and principal
      business address; and
        (4) a conspicuous statement in bold face type, in immediate
      proximity to the space reserved for the consumer's signature on
      the contract, which reads as follows: "You may cancel this
      contract without penalty or obligation at any time before
      midnight of the 3rd business day after the date on which you
      signed the contract. See the attached notice of cancellation form
      for an explanation of this right.".

-SOURCE-
    (Pub. L. 90-321, title IV, Sec. 406, as added Pub. L. 104-208, div.
    A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-458.)


-MISC1-
                             PRIOR PROVISIONS                         
      For a prior section 406 of Pub. L. 90-321, see note set out under
    section 1679 of this title.

-End-



-CITE-
    15 USC Sec. 1679e                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

-HEAD-
    Sec. 1679e. Right to cancel contract

-STATUTE-
    (a) In general
      Any consumer may cancel any contract with any credit repair
    organization without penalty or obligation by notifying the credit
    repair organization of the consumer's intention to do so at any
    time before midnight of the 3rd business day which begins after the
    date on which the contract or agreement between the consumer and
    the credit repair organization is executed or would, but for this
    subsection, become enforceable against the parties.
    (b) Cancellation form and other information
      Each contract shall be accompanied by a form, in duplicate, which
    has the heading "Notice of Cancellation" and contains in bold face
    type the following statement:
        "You may cancel this contract, without any penalty or
      obligation, at any time before midnight of the 3rd day which
      begins after the date the contract is signed by you.
        "To cancel this contract, mail or deliver a signed, dated copy
      of this cancellation notice, or any other written notice to [
      name of credit repair organization ] at [ address of credit
      repair organization ] before midnight on [ date ]
        "I hereby cancel this transaction,
        [ date ]
        [ purchaser's signature ].".
    (c) Consumer copy of contract required
      Any consumer who enters into any contract with any credit repair
    organization shall be given, by the organization - 
        (1) a copy of the completed contract and the disclosure
      statement required under section 1679c of this title; and
        (2) a copy of any other document the credit repair organization
      requires the consumer to sign,

    at the time the contract or the other document is signed.

-SOURCE-
    (Pub. L. 90-321, title IV, Sec. 407, as added Pub. L. 104-208, div.
    A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-459.)


-MISC1-
                             PRIOR PROVISIONS                         
      For a prior section 407 of Pub. L. 90-321, see note set out under
    section 1679 of this title.

-End-



-CITE-
    15 USC Sec. 1679f                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

-HEAD-
    Sec. 1679f. Noncompliance with this subchapter

-STATUTE-
    (a) Consumer waivers invalid
      Any waiver by any consumer of any protection provided by or any
    right of the consumer under this subchapter - 
        (1) shall be treated as void; and
        (2) may not be enforced by any Federal or State court or any
      other person.
    (b) Attempt to obtain waiver
      Any attempt by any person to obtain a waiver from any consumer of
    any protection provided by or any right of the consumer under this
    subchapter shall be treated as a violation of this subchapter.
    (c) Contracts not in compliance
      Any contract for services which does not comply with the
    applicable provisions of this subchapter - 
        (1) shall be treated as void; and
        (2) may not be enforced by any Federal or State court or any
      other person.

-SOURCE-
    (Pub. L. 90-321, title IV, Sec. 408, as added Pub. L. 104-208, div.
    A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-459.)

-End-



-CITE-
    15 USC Sec. 1679g                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

-HEAD-
    Sec. 1679g. Civil liability

-STATUTE-
    (a) Liability established
      Any person who fails to comply with any provision of this
    subchapter with respect to any other person shall be liable to such
    person in an amount equal to the sum of the amounts determined
    under each of the following paragraphs:
      (1) Actual damages
        The greater of - 
          (A) the amount of any actual damage sustained by such person
        as a result of such failure; or
          (B) any amount paid by the person to the credit repair
        organization.
      (2) Punitive damages
        (A) Individual actions
          In the case of any action by an individual, such additional
        amount as the court may allow.
        (B) Class actions
          In the case of a class action, the sum of - 
            (i) the aggregate of the amount which the court may allow
          for each named plaintiff; and
            (ii) the aggregate of the amount which the court may allow
          for each other class member, without regard to any minimum
          individual recovery.
      (3) Attorneys' fees
        In the case of any successful action to enforce any liability
      under paragraph (1) or (2), the costs of the action, together
      with reasonable attorneys' fees.
    (b) Factors to be considered in awarding punitive damages
      In determining the amount of any liability of any credit repair
    organization under subsection (a)(2) of this section, the court
    shall consider, among other relevant factors - 
        (1) the frequency and persistence of noncompliance by the
      credit repair organization;
        (2) the nature of the noncompliance;
        (3) the extent to which such noncompliance was intentional; and
        (4) in the case of any class action, the number of consumers
      adversely affected.

-SOURCE-
    (Pub. L. 90-321, title IV, Sec. 409, as added Pub. L. 104-208, div.
    A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-459.)

-End-



-CITE-
    15 USC Sec. 1679h                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

-HEAD-
    Sec. 1679h. Administrative enforcement

-STATUTE-
    (a) In general
      Compliance with the requirements imposed under this subchapter
    with respect to credit repair organizations shall be enforced under
    the Federal Trade Commission Act [15 U.S.C. 41 et seq.] by the
    Federal Trade Commission.
    (b) Violations of this subchapter treated as violations of Federal
      Trade Commission Act
      (1) In general
        For the purpose of the exercise by the Federal Trade Commission
      of the Commission's functions and powers under the Federal Trade
      Commission Act [15 U.S.C. 41 et seq.], any violation of any
      requirement or prohibition imposed under this subchapter with
      respect to credit repair organizations shall constitute an unfair
      or deceptive act or practice in commerce in violation of section
      5(a) of the Federal Trade Commission Act [15 U.S.C. 45(a)].
      (2) Enforcement authority under other law
        All functions and powers of the Federal Trade Commission under
      the Federal Trade Commission Act shall be available to the
      Commission to enforce compliance with this subchapter by any
      person subject to enforcement by the Federal Trade Commission
      pursuant to this subsection, including the power to enforce the
      provisions of this subchapter in the same manner as if the
      violation had been a violation of any Federal Trade Commission
      trade regulation rule, without regard to whether the credit
      repair organization - 
          (A) is engaged in commerce; or
          (B) meets any other jurisdictional tests in the Federal Trade
        Commission Act.
    (c) State action for violations
      (1) Authority of States
        In addition to such other remedies as are provided under State
      law, whenever the chief law enforcement officer of a State, or an
      official or agency designated by a State, has reason to believe
      that any person has violated or is violating this subchapter, the
      State - 
          (A) may bring an action to enjoin such violation;
          (B) may bring an action on behalf of its residents to recover
        damages for which the person is liable to such residents under
        section 1679g of this title as a result of the violation; and
          (C) in the case of any successful action under subparagraph
        (A) or (B), shall be awarded the costs of the action and
        reasonable attorney fees as determined by the court.
      (2) Rights of Commission
        (A) Notice to Commission
          The State shall serve prior written notice of any civil
        action under paragraph (1) upon the Federal Trade Commission
        and provide the Commission with a copy of its complaint, except
        in any case where such prior notice is not feasible, in which
        case the State shall serve such notice immediately upon
        instituting such action.
        (B) Intervention
          The Commission shall have the right - 
            (i) to intervene in any action referred to in subparagraph
          (A);
            (ii) upon so intervening, to be heard on all matters
          arising in the action; and
            (iii) to file petitions for appeal.
      (3) Investigatory powers
        For purposes of bringing any action under this subsection,
      nothing in this subsection shall prevent the chief law
      enforcement officer, or an official or agency designated by a
      State, from exercising the powers conferred on the chief law
      enforcement officer or such official by the laws of such State to
      conduct investigations or to administer oaths or affirmations or
      to compel the attendance of witnesses or the production of
      documentary and other evidence.
      (4) Limitation
        Whenever the Federal Trade Commission has instituted a civil
      action for violation of this subchapter, no State may, during the
      pendency of such action, bring an action under this section
      against any defendant named in the complaint of the Commission
      for any violation of this subchapter that is alleged in that
      complaint.

-SOURCE-
    (Pub. L. 90-321, title IV, Sec. 410, as added Pub. L. 104-208, div.
    A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-460.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Trade Commission Act, referred to in subsecs. (a) and
    (b), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended,
    which is classified generally to subchapter I (Sec. 41 et seq.) of
    chapter 2 of this title. For complete classification of this Act to
    the Code, see section 58 of this title and Tables.

-End-



-CITE-
    15 USC Sec. 1679i                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

-HEAD-
    Sec. 1679i. Statute of limitations

-STATUTE-
      Any action to enforce any liability under this subchapter may be
    brought before the later of - 
        (1) the end of the 5-year period beginning on the date of the
      occurrence of the violation involved; or
        (2) in any case in which any credit repair organization has
      materially and willfully misrepresented any information which - 
          (A) the credit repair organization is required, by any
        provision of this subchapter, to disclose to any consumer; and
          (B) is material to the establishment of the credit repair
        organization's liability to the consumer under this subchapter,

      the end of the 5-year period beginning on the date of the
      discovery by the consumer of the misrepresentation.

-SOURCE-
    (Pub. L. 90-321, title IV, Sec. 411, as added Pub. L. 104-208, div.
    A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-461.)

-End-



-CITE-
    15 USC Sec. 1679j                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

-HEAD-
    Sec. 1679j. Relation to State law

-STATUTE-
      This subchapter shall not annul, alter, affect, or exempt any
    person subject to the provisions of this subchapter from complying
    with any law of any State except to the extent that such law is
    inconsistent with any provision of this subchapter, and then only
    to the extent of the inconsistency.

-SOURCE-
    (Pub. L. 90-321, title IV, Sec. 412, as added Pub. L. 104-208, div.
    A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-462.)

-End-


-CITE-
    15 USC SUBCHAPTER III - CREDIT REPORTING AGENCIES           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
                SUBCHAPTER III - CREDIT REPORTING AGENCIES            

-End-



-CITE-
    15 USC Sec. 1681                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681. Congressional findings and statement of purpose

-STATUTE-
    (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,(!1) 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 subchapter 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 subchapter.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 602, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1128.)


-MISC1-
                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Pub. L. 108-159, Sec. 3, Dec. 4, 2003, 117 Stat. 1953, provided
    that: "Except as otherwise specifically provided in this Act [see
    Short Title of 2003 Amendment note set out under section 1601 of
    this title] and the amendments made by this Act - 
        "(1) before the end of the 2-month period beginning on the date
      of enactment of this Act [Dec. 4, 2003], the Board and the
      Commission shall jointly prescribe regulations in final form
      establishing effective dates for each provision of this Act; and
        "(2) the regulations prescribed under paragraph (1) shall
      establish effective dates that are as early as possible, while
      allowing a reasonable time for the implementation of the
      provisions of this Act, but in no case shall any such effective
      date be later than 10 months after the date of issuance of such
      regulations in final form."
    [For final rules adopted by Board of Governors of the Federal
    Reserve System and Federal Trade Commission establishing effective
    dates for provisions of Pub. L. 108-159, see 68 F.R. 74467 (joint
    interim final rules) and 69 F.R. 6526 (joint final rules).]

                              EFFECTIVE DATE                          
      Section 504(d) of Pub. L. 90-321, as added by Pub. L. 91-508,
    title VI, Sec. 602, Oct. 26, 1970, 84 Stat. 1136, provided that:
    "Title VI [enacting this subchapter] takes effect upon the
    expiration of one hundred and eighty days following the date of its
    enactment [Oct. 26, 1970]."

                                SHORT TITLE                            
      This subchapter known as the "Fair Credit Reporting Act", see
    Short Title note set out under section 1601 of this title.

    STUDY OF EFFECTS OF CREDIT SCORES AND CREDIT-BASED INSURANCE SCORES
          ON AVAILABILITY AND AFFORDABILITY OF FINANCIAL PRODUCTS
      Pub. L. 108-159, title II, Sec. 215, Dec. 4, 2003, 117 Stat.
    1984, provided that:
      "(a) Study Required. - The Commission and the Board, in
    consultation with the Office of Fair Housing and Equal Opportunity
    of the Department of Housing and Urban Development, shall conduct a
    study of - 
        "(1) the effects of the use of credit scores and credit-based
      insurance scores on the availability and affordability of
      financial products and services, including credit cards,
      mortgages, auto loans, and property and casualty insurance;
        "(2) the statistical relationship, utilizing a multivariate
      analysis that controls for prohibited factors under the Equal
      Credit Opportunity Act [15 U.S.C. 1691 et seq.] and other known
      risk factors, between credit scores and credit-based insurance
      scores and the quantifiable risks and actual losses experienced
      by businesses;
        "(3) the extent to which, if any, the use of credit scoring
      models, credit scores, and credit-based insurance scores impact
      on the availability and affordability of credit and insurance to
      the extent information is currently available or is available
      through proxies, by geography, income, ethnicity, race, color,
      religion, national origin, age, sex, marital status, and creed,
      including the extent to which the consideration or lack of
      consideration of certain factors by credit scoring systems could
      result in negative or differential treatment of protected classes
      under the Equal Credit Opportunity Act, and the extent to which,
      if any, the use of underwriting systems relying on these models
      could achieve comparable results through the use of factors with
      less negative impact; and
        "(4) the extent to which credit scoring systems are used by
      businesses, the factors considered by such systems, and the
      effects of variables which are not considered by such systems.
      "(b) Public Participation. - The Commission shall seek public
    input about the prescribed methodology and research design of the
    study described in subsection (a), including from relevant Federal
    regulators, State insurance regulators, community, civil rights,
    consumer, and housing groups.
      "(c) Report Required. - 
        "(1) In general. - Before the end of the 24-month period
      beginning on the date of enactment of this Act [Dec. 4, 2003],
      the Commission shall submit a detailed report on the study
      conducted pursuant to subsection (a) to the Committee on
      Financial Services of the House of Representatives and the
      Committee on Banking, Housing, and Urban Affairs of the Senate.
        "(2) Contents of report. - The report submitted under paragraph
      (1) shall include the findings and conclusions of the Commission,
      recommendations to address specific areas of concerns addressed
      in the study, and recommendations for legislative or
      administrative action that the Commission may determine to be
      necessary to ensure that credit and credit-based insurance scores
      are used appropriately and fairly to avoid negative effects."

       FTC STUDY OF ISSUES RELATING TO THE FAIR CREDIT REPORTING ACT   
      Pub. L. 108-159, title III, Sec. 318, Dec. 4, 2003, 117 Stat.
    1998, provided that:
      "(a) Study Required. - 
        "(1) In general. - The Commission shall conduct a study on ways
      to improve the operation of the Fair Credit Reporting Act [15
      U.S.C. 1681 et seq.].
        "(2) Areas for study. - In conducting the study under paragraph
      (1), the Commission shall review - 
          "(A) the efficacy of increasing the number of points of
        identifying information that a credit reporting agency is
        required to match to ensure that a consumer is the correct
        individual to whom a consumer report relates before releasing a
        consumer report to a user, including - 
            "(i) the extent to which requiring additional points of
          such identifying information to match would - 
         "(I) enhance the accuracy of credit reports; and
         "(II) combat the provision of incorrect consumer reports to
          users;
            "(ii) the extent to which requiring an exact match of the
          first and last name, social security number, and address and
          ZIP Code of the consumer would enhance the likelihood of
          increasing credit report accuracy; and
            "(iii) the effects of allowing consumer reporting agencies
          to use partial matches of social security numbers and name
          recognition software on the accuracy of credit reports;
          "(B) requiring notification to consumers when negative
        information has been added to their credit reports, including -
        
            "(i) the potential impact of such notification on the
          ability of consumers to identify errors on their credit
          reports; and
            "(ii) the potential impact of such notification on the
          ability of consumers to remove fraudulent information from
          their credit reports;
          "(C) the effects of requiring that a consumer who has
        experienced an adverse action based on a credit report receives
        a copy of the same credit report that the creditor relied on in
        taking the adverse action, including - 
            "(i) the extent to which providing such reports to
          consumers would increase the ability of consumers to identify
          errors in their credit reports; and
            "(ii) the extent to which providing such reports to
          consumers would increase the ability of consumers to remove
          fraudulent information from their credit reports;
          "(D) any common financial transactions that are not generally
        reported to the consumer reporting agencies, but would provide
        useful information in determining the credit worthiness of
        consumers; and
          "(E) any actions that might be taken within a voluntary
        reporting system to encourage the reporting of the types of
        transactions described in subparagraph (D).
        "(3) Costs and benefits. - With respect to each area of study
      described in paragraph (2), the Commission shall consider the
      extent to which such requirements would benefit consumers,
      balanced against the cost of implementing such provisions.
      "(b) Report Required. - Not later than 1 year after the date of
    enactment of this Act [Dec. 4, 2003], the chairman of the
    Commission shall submit a report to the Committee on Banking,
    Housing, and Urban Affairs of the Senate and the Committee on
    Financial Services of the House of Representatives containing a
    detailed summary of the findings and conclusions of the study under
    this section, together with such recommendations for legislative or
    administrative actions as may be appropriate."

               FTC STUDY OF THE ACCURACY OF CONSUMER REPORTS           
      Pub. L. 108-159, title III, Sec. 319, Dec. 4, 2003, 117 Stat.
    1999, provided that:
      "(a) Study Required. - Until the final report is submitted under
    subsection (b)(2), the Commission shall conduct an ongoing study of
    the accuracy and completeness of information contained in consumer
    reports prepared or maintained by consumer reporting agencies and
    methods for improving the accuracy and completeness of such
    information.
      "(b) Biennial Reports Required. - 
        "(1) Interim reports. - The Commission shall submit an interim
      report to the Congress on the study conducted under subsection
      (a) at the end of the 1-year period beginning on the date of
      enactment of this Act [Dec. 4, 2003] and biennially thereafter
      for 8 years.
        "(2) Final report. - The Commission shall submit a final report
      to the Congress on the study conducted under subsection (a) at
      the end of the 2-year period beginning on the date on which the
      final interim report is submitted to the Congress under paragraph
      (1).
        "(3) Contents. - Each report submitted under this subsection
      shall contain a detailed summary of the findings and conclusions
      of the Commission with respect to the study required under
      subsection (a) and such recommendations for legislative and
      administrative action as the Commission may determine to be
      appropriate."

-CROSS-
                                DEFINITIONS                            
      Pub. L. 108-159, Sec. 2, Dec. 4, 2003, 117 Stat. 1953, provided
    that: "As used in this Act [see Short Title of 2003 Amendment note
    set out under section 1601 of this title] - 
        "(1) the term 'Board' means the Board of Governors of the
      Federal Reserve System;
        "(2) the term 'Commission', other than as used in title V [20
      U.S.C. 9701 et seq.], means the Federal Trade Commission;
        "(3) the terms 'consumer', 'consumer report', 'consumer
      reporting agency', 'creditor', 'Federal banking agencies', and
      'financial institution' have the same meanings as in section 603
      of the Fair Credit Reporting Act [15 U.S.C. 1681a], as amended by
      this Act; and
        "(4) the term 'affiliates' means persons that are related by
      common ownership or affiliated by corporate control."

-FOOTNOTE-
    (!1) So in original. Probably should be "creditworthiness,".


-End-



-CITE-
    15 USC Sec. 1681a                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681a. Definitions; rules of construction

-STATUTE-
      (a) Definitions and rules of construction set forth in this
    section are applicable for the purposes of this subchapter.
      (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,(!1)
      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 1681b of this
        title.

        (2) Exclusions. - Except as provided in paragraph (3), the term
      "consumer report" does not include - 
          (A) subject to section 1681s-3 of this title, 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 1681m of this title; or
          (D) a communication described in subsection (o) or (x) of
        this section.

        (3) Restriction on sharing of medical information. - Except for
      information or any communication of information disclosed as
      provided in section 1681b(g)(3) of this title, 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 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) Medical Information. - The term "medical information" - 
        (1) means information or data, whether oral or recorded, in any
      form or medium, created by or derived from a health care provider
      or the consumer, that relates to - 
          (A) the past, present, or future physical, mental, or
        behavioral health or condition of an individual;
          (B) the provision of health care to an individual; or
          (C) the payment for the provision of health care to an
        individual.(!2)


        (2) does not include the age or gender of a consumer,
      demographic information about the consumer, including a
      consumer's residence address or e-mail address, or any other
      information about a consumer that does not relate to the
      physical, mental, or behavioral health or condition of a
      consumer, including the existence or value of any insurance
      policy.

      (j) Definitions Relating to Child Support Obligations. - 
        (1) Overdue support. - The term "overdue support" has the
      meaning given to such term in section 666(e) of title 42.
        (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 1691(d)(6) of this
        title; 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
          1681b(a)(3)(D) of this title; 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
            1681b(a)(3)(F)(ii) of this title; 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
      1691(d)(6) of this title 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 (!3) 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 (!3) 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 (!3) 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) of this section, 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,(!4) 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) Active duty military consumer. - 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) 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; and
          (B) is assigned to service away from the usual duty station
        of the consumer.

        (2) Fraud alert; active duty alert. - The terms "fraud alert"
      and "active duty alert" mean a statement in the file of a
      consumer that - 
          (A) notifies all prospective users of a consumer report
        relating to the consumer that the consumer may be a victim of
        fraud, including identity theft, or is an active duty military
        consumer, as applicable; and
          (B) is presented in a manner that facilitates a clear and
        conspicuous view of the statement described in subparagraph (A)
        by any person requesting such consumer report.

        (3) Identity theft. - The term "identity theft" means a fraud
      committed using the identifying information of another person,
      subject to such further definition as the Commission may
      prescribe, by regulation.
        (4) Identity theft report. - The term "identity theft report"
      has the meaning given that term by rule of the Commission, and
      means, at a minimum, a report - 
          (A) that alleges an identity theft;
          (B) that is a copy of an official, valid report filed by a
        consumer with an appropriate Federal, State, or local law
        enforcement agency, including the United States Postal
        Inspection Service, or such other government agency deemed
        appropriate by the Commission; and
          (C) the filing of which subjects the person filing the report
        to criminal penalties relating to the filing of false
        information if, in fact, the information in the report is
        false.

        (5) New credit plan. - The term "new credit plan" means a new
      account under an open end credit plan (as defined in section
      1602(i) of this title) or a new credit transaction not under an
      open end credit plan.

      (r) Credit and Debit Related Terms - 
        (1) Card issuer. - 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) Credit card. - The term "credit card" has the same meaning
      as in section 1602 of this title.
        (3) Debit card. - 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) Account and electronic fund transfer. - The terms "account"
      and "electronic fund transfer" have the same meanings as in
      section 1693a of this title.
        (5) Credit and creditor. - The terms "credit" and "creditor"
      have the same meanings as in section 1691a of this title.

      (s) Federal Banking Agency. - The term "Federal banking agency"
    has the same meaning as in section 1813 of title 12.
      (t) Financial Institution. - 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 461(b) of title 12)
    belonging to a consumer.
      (u) Reseller. - 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) Commission. - The term "Commission" means the Federal Trade
    Commission.
      (w) Nationwide Specialty Consumer Reporting Agency. - The term
    "nationwide specialty consumer reporting agency" means a consumer
    reporting agency that compiles and maintains files on consumers on
    a nationwide basis relating to - 
        (1) medical records or payments;
        (2) residential or tenant history;
        (3) check writing history;
        (4) employment history; or
        (5) insurance claims.

      (x) Exclusion of Certain Communications for Employee
    Investigations. - 
        (1) Communications described in this subsection. - A
      communication is described in this subsection if - 
          (A) but for subsection (d)(2)(D) of this section, the
        communication would be a consumer report;
          (B) the communication is made to an employer in connection
        with an investigation of - 
            (i) suspected misconduct relating to employment; or
            (ii) compliance with Federal, State, or local laws and
          regulations, the rules of a self-regulatory organization, or
          any preexisting written policies of the employer;

          (C) the communication is not made for the purpose of
        investigating a consumer's credit worthiness,(!5) 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 1681f of this title.

        (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) of this section an investigative
      consumer report need not be disclosed.
        (3) Self-regulatory organization defined. - For purposes of
      this subsection, the term "self-regulatory organization" includes
      any self-regulatory organization (as defined in section
      78c(a)(26) of this title), any entity established under title I
      of the Sarbanes-Oxley Act of 2002 [15 U.S.C. 7211 et seq.], any
      board of trade designated by the Commodity Futures Trading
      Commission, and any futures association registered with such
      Commission.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 603, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1128; amended Pub. L. 102-
    537, Sec. 2(b), Oct. 27, 1992, 106 Stat. 3531; Pub. L. 104-208,
    div. A, title II, Sec. 2402, Sept. 30, 1996, 110 Stat. 3009-426;
    Pub. L. 105-347, Sec. 6(1)-(3), Nov. 2, 1998, 112 Stat. 3211; Pub.
    L. 108-159, title I, Sec. 111, title II, Sec. 214(c)(1), title IV,
    Sec. 411(b), (c), title VI, Sec. 611, Dec. 4, 2003, 117 Stat. 1954,
    1983, 2001, 2010.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Sarbanes-Oxley Act of 2002, referred to in subsec. (x)(3), is
    Pub. L. 107-204, July 30, 2002, 116 Stat. 745. Title I of the Act
    is classified principally to subchapter I (Sec. 7211 et seq.) of
    chapter 98 of this title. For complete classification of this Act
    to the Code, see Short Title note set out under section 7201 of
    this title and Tables.


-MISC1-
                                AMENDMENTS                            
      2003 - Subsec. (d)(2). Pub. L. 108-159, Sec. 411(b)(1),
    substituted "Except as provided in paragraph (3), the term" for
    "The term" in introductory provisions.
      Subsec. (d)(2)(A). Pub. L. 108-159, Sec. 214(c)(1), inserted
    "subject to section 1681s-3 of this title," after "(A)" in
    introductory provisions.
      Subsec. (d)(2)(D). Pub. L. 108-159, Sec. 611(b), inserted "or
    (x)" after "subsection (o)".
      Subsec. (d)(3). Pub. L. 108-159, Sec. 411(b)(2), added par. (3).
      Subsec. (i). Pub. L. 108-159, Sec. 411(c), inserted heading and
    amended text of subsec. (i) generally. Prior to amendment, text
    read as follows: "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."
      Subsecs. (q) to (w). Pub. L. 108-159, Sec. 111, added subsecs.
    (q) to (w).
      Subsec. (x). Pub. L. 108-159, Sec. 611(a), added subsec. (x).
      1998 - Subsec. (d)(2)(A)(iii). Pub. L. 105-347, Sec. 6(1), struck
    out "any" before "communication of other".
      Subsec. (o)(1). Pub. L. 105-347, Sec. 6(2), substituted
    "(d)(2)(D)" for "(d)(2)(E)".
      Subsec. (o)(4). Pub. L. 105-347, Sec. 6(3), substituted "and" for
    "or" at end.
      1996 - Subsec. (d). Pub. L. 104-208, Sec. 2402(e), inserted
    subsec. heading, designated existing provisions as par. (1) and
    inserted heading, redesignated cls. (1) to (3) as subpars. (A) to
    (C), respectively, added par. (2), and struck out at end "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 1681m of this title."
      Subsec. (k). Pub. L. 104-208, Sec. 2402(a), added subsec. (k).
      Subsec. (l). Pub. L. 104-208, Sec. 2402(b), added subsec. (l).
      Subsec. (m). Pub. L. 104-208, Sec. 2402(c), added subsec. (m).
      Subsec. (n). Pub. L. 104-208, Sec. 2402(d), added subsec. (n).
      Subsec. (o). Pub. L. 104-208, Sec. 2402(f), added subsec. (o).
      Subsec. (p). Pub. L. 104-208, Sec. 2402(g), added subsec. (p).
      1992 - Subsec. (j). Pub. L. 102-537 added subsec. (j).

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-159 subject to joint regulations
    establishing effective dates as prescribed by Federal Reserve Board
    and Federal Trade Commission, except as otherwise provided, see
    section 3 of Pub. L. 108-159, set out as a note under section 1681
    of this title.
      Pub. L. 108-159, title IV, Sec. 411(d), Dec. 4, 2003, 117 Stat.
    2002, provided that: "This section [amending this section and
    section 1681b of this title] shall take effect at the end of the
    180-day period beginning on the date of enactment of this Act [Dec.
    4, 2003], except that paragraph (2) of section 604(g) of the Fair
    Credit Reporting Act [15 U.S.C. 1681b(g)(2)] (as amended by
    subsection (a) of this section) shall take effect on the later of -
    
        "(1) the end of the 90-day period beginning on the date on
      which the regulations required under paragraph (5)(B) of such
      section 604(g) are issued in final form; or
        "(2) the date specified in the regulations referred to in
      paragraph (1)."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-347, Sec. 7, Nov. 2, 1998, 112 Stat. 3211, provided
    that: "The amendments made by this Act [amending this section and
    sections 1681b, 1681c, 1681g, 1681i, 1681k, and 1681s of this
    title] shall be deemed to have the same effective date [see section
    2420 of Pub. L. 104-208, set out as a note below] as the amendments
    made by section 2403 of the Consumer Credit Reporting Reform Act of
    1996 (Public Law 104-208; 110 Stat. 3009-1257 [3009-430]) [amending
    section 1681b of this title]."

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 2420 of div. A of Pub. L. 104-208 provided that:
      "(a) In General. - Except as otherwise specifically provided in
    this chapter [chapter 1 (Secs. 2401-2422) of subtitle D of title II
    of div. A of Pub. L. 104-208, see Short Title of 1996 Amendment
    note set out under section 1601 of this title], the amendments made
    by this chapter shall become effective 365 days after the date of
    enactment of this Act [Sept. 30, 1996].
      "(b) Early Compliance. - Any person or other entity that is
    subject to the requirements of this chapter may, at its option,
    comply with any provision of this chapter before the date on which
    that provision becomes effective under this chapter, in which case,
    each of the corresponding provisions of this chapter shall be fully
    applicable to such person or entity."

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Section 2(d) of Pub. L. 102-537 provided that: "The amendments
    made by this section [enacting section 1681s-1 of this title and
    amending this section] shall take effect on January 1, 1993."

                      CONSTRUCTION OF 1996 AMENDMENT                  
      Section 2421 of div. A of Pub. L. 104-208 provided that: "Nothing
    in this chapter [chapter 1 (Secs. 2401-2422) of subtitle D of title
    II of div. A of Pub. L. 104-208, see Short Title of 1996 Amendment
    note set out under section 1601 of this title] or the amendments
    made by this chapter shall be considered to supersede or otherwise
    affect section 2721 of title 18, United States Code, with respect
    to motor vehicle records for surveys, marketing, or solicitations."

-FOOTNOTE-
    (!1) So in original. Probably should be "creditworthiness,".

               

    (!2) So in original. The period probably should be "; and".

    (!3) So in original. Probably should be "creditworthiness".

    (!4) So in original. Probably should be "creditworthiness,".

    (!5) So in original. Probably should be "creditworthiness,".


-End-



-CITE-
    15 USC Sec. 1681b                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681b. Permissible purposes of consumer reports

-STATUTE-
    (a) In general
      Subject to subsection (c) of this section, 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 654
      of title 42 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 [12 U.S.C. 1811 et seq.] or the Federal
      Credit Union Act [12 U.S.C. 1751 et seq.], 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
            (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 subchapter, as prescribed by the Federal Trade
        Commission under section 1681g(c)(3) (!1) of this title.

      (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
          1681m(a)(3) of this title; 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 subchapter, as prescribed by the Federal Trade
          Commission under section 1681g(c)(3) (!1) of this title.
        (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 1681m(a) of
        this title, 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 1681g(c)(3) (!1) of this
        title.
        (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) 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 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) of this section 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) of this section; and
          (iii) there is not in effect an election by the consumer,
        made in accordance with subsection (e) of this section, 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 1681g(a)(5) of this title, 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) of this section 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 5-year period following the election if the consumer
        does not submit to the agency a signed notice of election form
        issued by the agency for purposes of paragraph (2)(B); and
          (B) provide to the consumer a notice of election form, if
        requested by the consumer, not later than 5 business days after
        receipt of the notification of the election through the system
        established under paragraph (5), in the case of a request made
        at the time the consumer provides notification through the
        system.
      (4) Effectiveness of election
        An election of a consumer under paragraph (1) - 
          (A) shall be effective with respect to a consumer reporting
        agency beginning 5 business days after the date on which the
        consumer notifies the agency in accordance with paragraph (2);
          (B) shall be effective with respect to a consumer reporting
        agency - 
            (i) subject to subparagraph (C), during the 5-year period
          beginning 5 business days after the date on which the
          consumer notifies the agency of the election, in the case of
          an election for which a consumer notifies the agency only in
          accordance with paragraph (2)(A); or
            (ii) until the consumer notifies the agency under
          subparagraph (C), in the case of an election for which a
          consumer notifies the agency in accordance with paragraph
          (2)(B);

          (C) shall not be effective after the date on which the
        consumer notifies the agency, through the notification system
        established by the agency under paragraph (5), that the
        election is no longer effective; and
          (D) shall be effective with respect to each affiliate of the
        agency.
      (5) Notification system
        (A) In general
          Each consumer reporting agency that, under subsection
        (c)(1)(B) of this section, furnishes a consumer report in
        connection with a credit or insurance transaction that is not
        initiated by a consumer, shall - 
            (i) establish and maintain a notification system, including
          a toll-free telephone number, which permits any consumer
          whose consumer report is maintained by the agency to notify
          the agency, with appropriate identification, of the
          consumer's election to have the consumer's name and address
          excluded from any such list of names and addresses provided
          by the agency for such a transaction; and
            (ii) publish by not later than 365 days after September 30,
          1996, and not less than annually thereafter, in a publication
          of general circulation in the area served by the agency - 
              (I) a notification that information in consumer files
            maintained by the agency may be used in connection with
            such transactions; and
              (II) the address and toll-free telephone number for
            consumers to use to notify the agency of the consumer's
            election under clause (i).
        (B) Establishment and maintenance as compliance
          Establishment and maintenance of a notification system
        (including a toll-free telephone number) and publication by a
        consumer reporting agency on the agency's own behalf and on
        behalf of any of its affiliates in accordance with this
        paragraph is deemed to be compliance with this paragraph by
        each of those affiliates.
      (6) Notification system by agencies that operate nationwide
        Each consumer reporting agency that compiles and maintains
      files on consumers on a nationwide basis shall establish and
      maintain a notification system for purposes of paragraph (5)
      jointly with other such consumer reporting agencies.
    (f) Certain use or obtaining of information prohibited
      A person shall not use or obtain a consumer report for any
    purpose unless - 
        (1) the consumer report is obtained for a purpose for which the
      consumer report is authorized to be furnished under this section;
      and
        (2) the purpose is certified in accordance with section 1681e
      of this title by a prospective user of the report through a
      general or specific certification.
    (g) Protection of medical information
      (1) Limitation on consumer reporting agencies
        A consumer reporting agency shall not furnish for employment
      purposes, or in connection with a credit or insurance
      transaction, a consumer report that contains medical information
      (other than medical contact information treated in the manner
      required under section 1681c(a)(6) of this title) about a
      consumer, unless - 
          (A) if furnished in connection with an insurance transaction,
        the consumer affirmatively consents to the furnishing of the
        report;
          (B) if furnished for employment purposes or in connection
        with a credit transaction - 
            (i) the information to be furnished is relevant to process
          or effect the employment or credit transaction; and
            (ii) the consumer provides specific written consent for the
          furnishing of the report that describes in clear and
          conspicuous language the use for which the information will
          be furnished; or

          (C) the information to be furnished pertains solely to
        transactions, accounts, or balances relating to debts arising
        from the receipt of medical services, products, or devises,
        where such information, other than account status or amounts,
        is restricted or reported using codes that do not identify, or
        do not provide information sufficient to infer, the specific
        provider or the nature of such services, products, or devices,
        as provided in section 1681c(a)(6) of this title.
      (2) Limitation on creditors
        Except as permitted pursuant to paragraph (3)(C) or regulations
      prescribed under paragraph (5)(A), a creditor shall not obtain or
      use medical information (other than medical information treated
      in the manner required under section 1681c(a)(6) of this title)
      pertaining to a consumer in connection with any determination of
      the consumer's eligibility, or continued eligibility, for credit.
      (3) Actions authorized by Federal law, insurance activities and
        regulatory determinations
        Section 1681a(d)(3) of this title shall not be construed so as
      to treat information or any communication of information as a
      consumer report if the information or communication is disclosed -
       
          (A) in connection with the business of insurance or
        annuities, including the activities described in section 18B of
        the model Privacy of Consumer Financial and Health Information
        Regulation issued by the National Association of Insurance
        Commissioners (as in effect on January 1, 2003);
          (B) for any purpose permitted without authorization under the
        Standards for Individually Identifiable Health Information
        promulgated by the Department of Health and Human Services
        pursuant to the Health Insurance Portability and Accountability
        Act of 1996, or referred to under section 1179 of such Act,(!2)
        or described in section 6802(e) of this title; or

          (C) as otherwise determined to be necessary and appropriate,
        by regulation or order and subject to paragraph (6), by the
        Commission, any Federal banking agency or the National Credit
        Union Administration (with respect to any financial institution
        subject to the jurisdiction of such agency or Administration
        under paragraph (1), (2), or (3) of section 1681s(b) of this
        title,(!3) or the applicable State insurance authority (with
        respect to any person engaged in providing insurance or
        annuities).

      (4) Limitation on redisclosure of medical information
        Any person that receives medical information pursuant to
      paragraph (1) or (3) shall not disclose such information to any
      other person, except as necessary to carry out the purpose for
      which the information was initially disclosed, or as otherwise
      permitted by statute, regulation, or order.
      (5) Regulations and effective date for paragraph (2)
        (A) Regulations required
          Each Federal banking agency and the National Credit Union
        Administration shall, subject to paragraph (6) and after notice
        and opportunity for comment, prescribe regulations that permit
        transactions under paragraph (2) that are determined to be
        necessary and appropriate to protect legitimate operational,
        transactional, risk, consumer, and other needs (and which shall
        include permitting actions necessary for administrative
        verification purposes), consistent with the intent of paragraph
        (2) to restrict the use of medical information for
        inappropriate purposes.
        (B) Final regulations required
          The Federal banking agencies and the National Credit Union
        Administration shall issue the regulations required under
        subparagraph (A) in final form before the end of the 6-month
        period beginning on December 4, 2003.
      (6) Coordination with other laws
        No provision of this subsection shall be construed as altering,
      affecting, or superseding the applicability of any other
      provision of Federal law relating to medical confidentiality.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 604, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1129; amended Pub. L. 101-73,
    title IX, Sec. 964(c), Aug. 9, 1989, 103 Stat. 506; Pub. L. 104-
    193, title III, Sec. 352, Aug. 22, 1996, 110 Stat. 2240; Pub. L.
    104-208, div. A, title II, Secs. 2403, 2404(a), (b), 2405, Sept.
    30, 1996, 110 Stat. 3009-430, 3009-431, 3009-433, 3009-434; Pub. L.
    105-107, title III, Sec. 311(a), Nov. 20, 1997, 111 Stat. 2255;
    Pub. L. 105-347, Secs. 2, 3, 6(4), Nov. 2, 1998, 112 Stat. 3208,
    3210, 3211; Pub. L. 107-306, title VIII, Sec. 811(b)(8)(A), Nov.
    27, 2002, 116 Stat. 2426; Pub. L. 108-159, title II, Sec. 213(c),
    title IV, Secs. 411(a), 412(f), title VIII, Sec. 811(b), Dec. 4,
    2003, 117 Stat. 1979, 1999, 2003, 2011; Pub. L. 108-177, title III,
    Sec. 361(j), Dec. 13, 2003, 117 Stat. 2625; Pub. L. 109-351, title
    VII, Sec. 719, Oct. 13, 2006, 120 Stat. 1998.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Deposit Insurance Act, referred to in subsec. (a)(6),
    is act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as amended,
    which is classified generally to chapter 16 (Sec. 1811 et seq.) of
    Title 12, Banks and Banking. For complete classification of this
    Act to the Code, see Short Title note set out under section 1811 of
    Title 12 and Tables.
      The Federal Credit Union Act, referred to in subsec. (a)(6), is
    act June 26, 1934, ch. 750, 48 Stat. 1216, as amended, which is
    classified principally to chapter 14 (Sec. 1751 et seq.) of Title
    12, Banks and Banking. For complete classification of this Act to
    the Code, see section 1751 of Title 12 and Tables.
      Section 1681g(c) of this title, referred to in subsec. (b)(1)(B),
    (3)(A)(ii), (B)(ii), was amended generally by Pub. L. 108-159,
    title II, Sec. 211(c), Dec. 4, 2003, 117 Stat. 1970, and, as so
    amended, no longer contains a par. (3).
      Executive Order No. 12958, referred to in subsec. (b)(4)(D)(i),
    is Ex. Ord. No. 12958, Apr. 17, 1995, 60 F.R. 19825, as amended,
    which is set out under section 435 of Title 50, War and National
    Defense.
      The Health Insurance Portability and Accountability Act of 1996,
    referred to in subsec. (g)(3)(B), is Pub. L. 104-191, Aug. 21,
    1996, 110 Stat. 1936. For complete classification of this Act to
    the Code, see Short Title of 1996 Amendments note set out under
    section 201 of Title 42, The Public Health and Welfare, and Tables.
      Section 1179 of such Act, referred to in subsec. (g)(3)(B),
    probably means section 1179 of the Social Security Act, as added by
    section 262(a) of Pub. L. 104-191, title II, Aug. 21, 1996, 110
    Stat. 2030, which is classified to section 1320d-8 of Title 42, The
    Public Health and Welfare.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a)(6). Pub. L. 109-351 added par. (6).
      2003 - Subsec. (a). Pub. L. 108-159, Sec. 811(b), realigned
    margins.
      Subsec. (b)(4)(D) to (F). Pub. L. 108-177 struck out subpars. (D)
    and (E) and redesignated subpar. (F) as (D). Prior to amendment,
    subpars. (D) and (E) read as follows:
      "(D) Report to the congress. - Except as provided in subparagraph
    (E), 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) Reports to congressional intelligence committees. - In the
    case of a report to be submitted under subparagraph (D) to the
    congressional intelligence committees (as defined in section 401a
    of title 50), the submittal date for such report shall be as
    provided in section 415b of title 50."
      Subsec. (e)(3)(A), (4)(B)(i). Pub. L. 108-159, Sec. 213(c),
    substituted "5-year period" for "2-year period".
      Subsec. (g). Pub. L. 108-159, Sec. 411(a), amended heading and
    text of subsec. (g) generally. Prior to amendment, text read as
    follows: "A consumer reporting agency shall not furnish for
    employment purposes, or in connection with a credit or insurance
    transaction, a consumer report that contains medical information
    about a consumer, unless the consumer consents to the furnishing of
    the report."
      Subsec. (g)(1). Pub. L. 108-159, Sec. 412(f)(1), inserted "(other
    than medical contact information treated in the manner required
    under section 1681c(a)(6) of this title)" after "a consumer report
    that contains medical information" in introductory provisions.
      Subsec. (g)(2). Pub. L. 108-159, Sec. 412(f)(2), inserted "(other
    than medical information treated in the manner required under
    section 1681c(a)(6) of this title)" after "a creditor shall not
    obtain or use medical information".
      2002 - Subsec. (b)(4)(D). Pub. L. 107-306, Sec. 811(b)(8)(A)(i),
    substituted "Except as provided in subparagraph (E), not later
    than" for "Not later than".
      Subsec. (b)(4)(E), (F). Pub. L. 107-306, Sec. 811(b)(8)(A)(ii),
    (iii), added subpar. (E) and redesignated former subpar. (E) as
    (F).
      1998 - Subsec. (b)(1)(B). Pub. L. 105-347, Sec. 3, inserted ", or
    has previously provided," before "a summary".
      Subsec. (b)(2). Pub. L. 105-347, Sec. 2(a), amended heading and
    text of par. (2) generally. Prior to amendment, text read as
    follows: "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 - 
        "(A) 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
        "(B) the consumer has authorized in writing the procurement of
      the report by that person."
      Subsec. (b)(3). Pub. L. 105-347, Sec. 2(b), amended heading and
    text of par. (3) generally. Prior to amendment, text read as
    follows: "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 - 
        "(A) a copy of the report; and
        "(B) a description in writing of the rights of the consumer
      under this subchapter, as prescribed by the Federal Trade
      Commission under section 1681g(c)(3) of this title."
      Subsec. (g). Pub. L. 105-347, Sec. 6(4), struck out "or a direct
    marketing transaction" after "or insurance transaction".
      1997 - Subsec. (b)(4). Pub. L. 105-107 added par. (4).
      1996 - Pub. L. 104-208, Secs. 2403(a), 2404(a)(1), designated
    existing provisions as subsec. (a) and inserted heading,
    substituted "Subject to subsection (c) of this section, any
    consumer reporting agency" for "A consumer reporting agency" in
    introductory provisions, added subpars. (E) and (F) of par. (3),
    and struck out former subpar. (E) of par. (3) which read as
    follows: "otherwise has a legitimate business need for the
    information in connection with a business transaction involving the
    consumer."
      Subsec. (b). Pub. L. 104-208, Sec. 2403(b), added subsec. (b).
      Subsecs. (c) to (e). Pub. L. 104-208, Sec. 2404(a)(2), added
    subsecs. (c) to (e).
      Subsec. (f). Pub. L. 104-208, Sec. 2404(b), added subsec. (f).
      Subsec. (g). Pub. L. 104-208, Sec. 2405, added subsec. (g).
      Pars. (4), (5). Pub. L. 104-193, Sec. 352, added pars. (4) and
    (5).
      1989 - Par. (1). Pub. L. 101-73 inserted ", or a subpoena issued
    in connection with proceedings before a Federal grand jury" before
    period at end.

                     EFFECTIVE DATE OF 2003 AMENDMENTS                 
      Amendment by Pub. L. 108-177 effective Dec. 31, 2003, see section
    361(n) of Pub. L. 108-177, set out as a note under section 1611 of
    Title 10, Armed Forces.
      Amendment by Pub. L. 108-159 subject to joint regulations
    establishing effective dates as prescribed by Federal Reserve Board
    and Federal Trade Commission, except as otherwise provided, see
    section 3 of Pub. L. 108-159, set out as a note under section 1681
    of this title.
      Amendment by section 411 of Pub. L. 108-159 effective at end of
    180-day period beginning on Dec. 4, 2003, with certain exceptions,
    see section 411(d) of Pub. L. 108-159, set out as an Effective Date
    of 2003 Amendment note under section 1681a of this title.
      Pub. L. 108-159, title IV, Sec. 412(g), Dec. 4, 2003, 117 Stat.
    2003, provided that: "The amendments made by this section [amending
    this section and sections 1681c, 1681s, and 1681s-2 of this title]
    shall take effect at the end of the 15-month period beginning on
    the date of enactment of this Act [Dec. 4, 2003]."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-347 deemed to have same effective date
    as amendments made by section 2403 of Pub. L. 104-208, see section
    7 of Pub. L. 105-347, set out as a note under section 1681a of this
    title.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Pub. L. 105-107, title III, Sec. 311(c), Nov. 20, 1997, 111 Stat.
    2256, provided that: "The amendments made by subsections (a) and
    (b) [amending this section and section 1681e of this title] shall
    take effect as if such amendments had been included in chapter 1 of
    subtitle D of the Economic Growth and Regulatory Paperwork
    Reduction Act of 1996 [chapter 1 (Secs. 2401-2422) of subtitle D of
    title II of div. A of Pub. L. 104-208], as of the date of the
    enactment of such Act [Sept. 30, 1996]."

                     EFFECTIVE DATE OF 1996 AMENDMENTS                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.
      For effective date of amendment by Pub. L. 104-193, see section
    395(a)-(c) of Pub. L. 104-193, set out as a note under section 654
    of Title 42, The Public Health and Welfare.

                         PUBLIC AWARENESS CAMPAIGN                     
      Pub. L. 108-159, title II, Sec. 213(d), Dec. 4, 2003, 117 Stat.
    1979, provided that: "The Commission shall actively publicize and
    conspicuously post on its website any address and the toll-free
    telephone number established as part of a notification system for
    opting out of prescreening under section 604(e) of the Fair Credit
    Reporting Act (15 U.S.C. 1681b(e)), and otherwise take measures to
    increase public awareness regarding the availability of the right
    to opt out of prescreening."
      [For definitions of terms used in section 213(d) of Pub. L. 108-
    159, set out above, see section 2 of Pub. L. 108-159, set out as a
    Definitions note under section 1681 of this title.]

    COORDINATION WITH FEDERAL LAWS RELATING TO MEDICAL CONFIDENTIALITY
      Pub. L. 108-159, title IV, Sec. 412(d), Dec. 4, 2003, 117 Stat.
    2002, provided that: "No provision of any amendment made by this
    section [amending this section and sections 1681c, 1681s, and 1681s-
    2 of this title] shall be construed as altering, affecting, or
    superseding the applicability of any other provision of Federal law
    relating to medical confidentiality."

     FTC GUIDELINES REGARDING PRESCREENING FOR INSURANCE TRANSACTIONS 
      Section 2404(c) of div. A of Pub. L. 104-208 provided that: "The
    Federal Trade Commission may issue such guidelines as it deems
    necessary with respect to the use of consumer reports in connection
    with insurance transactions that are not initiated by the consumer
    pursuant to section 604(c) of the Fair Credit Reporting Act [15
    U.S.C. 1681b(c)], as added by subsection (a) of this section."

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) See References in Text note below.

    (!3) So in original. A closing parenthesis probably should
         precede the comma.


-End-



-CITE-
    15 USC Sec. 1681c                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681c. Requirements relating to information contained in
      consumer reports

-STATUTE-
    (a) Information excluded from consumer reports
      Except as authorized under subsection (b) of this section, no
    consumer reporting agency may make any consumer report containing
    any of the following items of information:
      (1) Cases under title 11 or under the Bankruptcy Act that, from
    the date of entry of the order for relief or the date of
    adjudication, as the case may be, antedate the report by more than
    10 years.
      (2) Civil suits, civil judgments, and records of arrest that,
    from date of entry, antedate the report by more than seven years or
    until the governing statute of limitations has expired, whichever
    is the longer period.
      (3) Paid tax liens which, from date of payment, antedate the
    report by more than seven years.
      (4) Accounts placed for collection or charged to profit and loss
    which antedate the report by more than seven years.
      (5) Any other adverse item of information, other than records of
    convictions of crimes which antedates the report by more than seven
    years.
      (6) The name, address, and telephone number of any medical
    information furnisher that has notified the agency of its status,
    unless - 
        (A) such name, address, and telephone number are restricted or
      reported using codes that do not identify, or provide information
      sufficient to infer, the specific provider or the nature of such
      services, products, or devices to a person other than the
      consumer; or
        (B) the report is being provided to an insurance company for a
      purpose relating to engaging in the business of insurance other
      than property and casualty insurance.
    (b) Exempted cases
      The provisions of paragraphs (1) through (5) of subsection (a) of
    this section are not applicable in the case of any consumer credit
    report to be used in connection with - 
        (1) a credit transaction involving, or which may reasonably be
      expected to involve, a principal amount of $150,000 or more;
        (2) the underwriting of life insurance involving, or which may
      reasonably be expected to involve, a face amount of $150,000 or
      more; or
        (3) the employment of any individual at an annual salary which
      equals, or which may reasonably be expected to equal $75,000, or
      more.
    (c) Running of reporting period
      (1) In general
        The 7-year period referred to in paragraphs (4) and (6) of
      subsection (a) of this section shall begin, with respect to any
      delinquent account that is placed for collection (internally or
      by referral to a third party, whichever is earlier), charged to
      profit and loss, or subjected to any similar action, upon the
      expiration of the 180-day period beginning on the date of the
      commencement of the delinquency which immediately preceded the
      collection activity, charge to profit and loss, or similar
      action.
      (2) Effective date
        Paragraph (1) shall apply only to items of information added to
      the file of a consumer on or after the date that is 455 days
      after September 30, 1996.
    (d) Information required to be disclosed
      (1) Title 11 information
        Any consumer reporting agency that furnishes a consumer report
      that contains information regarding any case involving the
      consumer that arises under title 11 shall include in the report
      an identification of the chapter of such title 11 under which
      such case arises if provided by the source of the information. If
      any case arising or filed under title 11 is withdrawn by the
      consumer before a final judgment, the consumer reporting agency
      shall include in the report that such case or filing was
      withdrawn upon receipt of documentation certifying such
      withdrawal.
      (2) Key factor in credit score information
        Any consumer reporting agency that furnishes a consumer report
      that contains any credit score or any other risk score or
      predictor on any consumer shall include in the report a clear and
      conspicuous statement that a key factor (as defined in section
      1681g(f)(2)(B) of this title) that adversely affected such score
      or predictor was the number of enquiries, if such a predictor was
      in fact a key factor that adversely affected such score. This
      paragraph shall not apply to a check services company, acting as
      such, which issues authorizations for the purpose of approving or
      processing negotiable instruments, electronic fund transfers, or
      similar methods of payments, but only to the extent that such
      company is engaged in such activities.
    (e) Indication of closure of account by consumer
      If a consumer reporting agency is notified pursuant to section
    1681s-2(a)(4) of this title that a credit account of a consumer was
    voluntarily closed by the consumer, the agency shall indicate that
    fact in any consumer report that includes information related to
    the account.
    (f) Indication of dispute by consumer
      If a consumer reporting agency is notified pursuant to section
    1681s-2(a)(3) of this title that information regarding a consumer
    who (!1) was furnished to the agency is disputed by the consumer,
    the agency shall indicate that fact in each consumer report that
    includes the disputed information.

    (g) Truncation of credit card and debit card numbers
      (1) In general
        Except as otherwise provided in this subsection, no person that
      accepts credit cards or debit cards for the transaction of
      business shall print more than the last 5 digits of the card
      number or the expiration date upon any receipt provided to the
      cardholder at the point of the sale or transaction.
      (2) Limitation
        This subsection shall apply only to receipts that are
      electronically printed, and shall not apply to transactions in
      which the sole means of recording a credit card or debit card
      account number is by handwriting or by an imprint or copy of the
      card.
      (3) Effective date
        This subsection shall become effective - 
          (A) 3 years after December 4, 2003, with respect to any cash
        register or other machine or device that electronically prints
        receipts for credit card or debit card transactions that is in
        use before January 1, 2005; and
          (B) 1 year after December 4, 2003, with respect to any cash
        register or other machine or device that electronically prints
        receipts for credit card or debit card transactions that is
        first put into use on or after January 1, 2005.
    (h) Notice of discrepancy in address
      (1) In general
        If a person has requested a consumer report relating to a
      consumer from a consumer reporting agency described in section
      1681a(p) of this title, the request includes an address for the
      consumer that substantially differs from the addresses in the
      file of the consumer, and the agency provides a consumer report
      in response to the request, the consumer reporting agency shall
      notify the requester of the existence of the discrepancy.
      (2) Regulations
        (A) Regulations required
          The Federal banking agencies, the National Credit Union
        Administration, and the Commission shall jointly, with respect
        to the entities that are subject to their respective
        enforcement authority under section 1681s of this title,
        prescribe regulations providing guidance regarding reasonable
        policies and procedures that a user of a consumer report should
        employ when such user has received a notice of discrepancy
        under paragraph (1).
        (B) Policies and procedures to be included
          The regulations prescribed under subparagraph (A) shall
        describe reasonable policies and procedures for use by a user
        of a consumer report - 
            (i) to form a reasonable belief that the user knows the
          identity of the person to whom the consumer report pertains;
          and
            (ii) if the user establishes a continuing relationship with
          the consumer, and the user regularly and in the ordinary
          course of business furnishes information to the consumer
          reporting agency from which the notice of discrepancy
          pertaining to the consumer was obtained, to reconcile the
          address of the consumer with the consumer reporting agency by
          furnishing such address to such consumer reporting agency as
          part of information regularly furnished by the user for the
          period in which the relationship is established.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 605, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1129; amended Pub. L. 95-598,
    title III, Sec. 312(b), Nov. 6, 1978, 92 Stat. 2676; Pub. L. 104-
    208, div. A, title II, Sec. 2406(a)-(e)(1), Sept. 30, 1996, 110
    Stat. 3009-434, 3009-435; Pub. L. 105-347, Sec. 5, Nov. 2, 1998,
    112 Stat. 3211; Pub. L. 108-159, title I, Sec. 113, title II, Sec.
    212(d), title III, Sec. 315, title IV, Sec. 412(b), (c), title
    VIII, Sec. 811(c)(1), (2)(A), Dec. 4, 2003, 117 Stat. 1959, 1977,
    1996, 2002, 2011.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Bankruptcy Act, referred to in subsec. (a)(1), was act July
    1, 1898, ch. 541, 30 Stat. 544, as amended, which was classified to
    section 1 et seq. of former Title 11, Bankruptcy, prior to its
    repeal by Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2549, section 101
    of which enacted revised Title 11.


-MISC1-
                                AMENDMENTS                            
      2003 - Subsec. (a)(1). Pub. L. 108-159, Sec. 811(c)(1),
    substituted "(1) Cases" for "(1) cases".
      Subsec. (a)(2). Pub. L. 108-159, Sec. 811(c)(2)(A), made
    technical correction to directory language of Pub. L. 105-347, Sec.
    5(1). See 1998 Amendment note below.
      Subsec. (a)(6). Pub. L. 108-159, Sec. 412(b), added par. (6).
      Subsec. (b). Pub. L. 108-159, Sec. 412(c), substituted "The
    provisions of paragraphs (1) through (5) of subsection (a)" for
    "The provisions of subsection (a)" in introductory provisions.
      Subsec. (d). Pub. L. 108-159, Sec. 212(d), designated existing
    provisions as par. (1), inserted heading, and added par. (2).
      Subsec. (g). Pub. L. 108-159, Sec. 113, added subsec. (g).
      Subsec. (h). Pub. L. 108-159, Sec. 315, added subsec. (h).
      1998 - Subsec. (a)(2). Pub. L. 105-347, Sec. 5(1), as amended by
    Pub. L. 108-159, Sec. 811(c)(2)(A), substituted "Civil suits, civil
    judgments, and records of arrest that" for "Suits and judgments
    which".
      Subsec. (a)(5), (6). Pub. L. 105-347, Sec. 5(2)-(4), redesignated
    par. (6) as (5), inserted ", other than records of convictions of
    crimes" after "of information", and struck out former par. (5)
    which read as follows: "Records of arrest, indictment, or
    conviction of crime which, from date of disposition, release, or
    parole, antedate the report by more than seven years."
      1996 - Pub. L. 104-208, Sec. 2406(e)(1), amended section
    catchline.
      Subsec. (a). Pub. L. 104-208, Sec. 2406(a)(1), inserted heading.
      Subsec. (b). Pub. L. 104-208, Sec. 2406(a)(2), substituted
    "$150,000" for "$50,000" in pars. (1) and (2) and "$75,000" for
    "$20,000" in par. (3).
      Subsec. (c). Pub. L. 104-208, Sec. 2406(b), added subsec. (c).
      Subsec. (d). Pub. L. 104-208, Sec. 2406(c), added subsec. (d).
      Subsecs. (e), (f). Pub. L. 104-208, Sec. 2406(d), added subsecs.
    (e) and (f).
      1978 - Subsec. (a)(1). Pub. L. 95-598 substituted "cases under
    title 11 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" for
    "Bankruptcies which, from date of adjudication of the most recent
    bankruptcy, antedate the report by more than fourteen years".

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-159 subject to joint regulations
    establishing effective dates as prescribed by Federal Reserve Board
    and Federal Trade Commission, except as otherwise provided, see
    section 3 of Pub. L. 108-159, set out as a note under section 1681
    of this title.
      Amendment by section 412 of Pub. L. 108-159 effective at end of
    15-month period beginning on Dec. 4, 2003, see section 412(g) of
    Pub. L. 108-159, set out as a note under section 1681b of this
    title.
      Pub. L. 108-159, title VIII, Sec. 811(c)(2)(B), Dec. 4, 2003, 117
    Stat. 2011, provided that: "The amendment made by subparagraph (A)
    [amending this section] shall be deemed to have the same effective
    date as section 5(1) of Public Law 105-347 (112 Stat. 3211) [see
    Effective Date of 1998 Amendment note below]."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-347 deemed to have same effective date
    as amendments made by section 2403 of Pub. L. 104-208, see section
    7 of Pub. L. 105-347, set out as a note under section 1681a of this
    title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section
    402(a) of Pub. L. 95-598, set out as an Effective Date note
    preceding section 101 of Title 11, Bankruptcy.

-FOOTNOTE-
    (!1) So in original. Probably should be "which".


-End-



-CITE-
    15 USC Sec. 1681c-1                                         01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681c-1. Identity theft prevention; fraud alerts and active
      duty alerts

-STATUTE-
    (a) One-call fraud alerts
      (1) Initial alerts
        Upon the direct request of a consumer, or an individual acting
      on behalf of or as a personal representative of a consumer, who
      asserts in good faith a suspicion that the consumer has been or
      is about to become a victim of fraud or related crime, including
      identity theft, a consumer reporting agency described in section
      1681a(p) of this title that maintains a file on the consumer and
      has received appropriate proof of the identity of the requester
      shall - 
          (A) include a fraud alert in the file of that consumer, and
        also provide that alert along with any credit score generated
        in using that file, for a period of not less than 90 days,
        beginning on the date of such request, unless the consumer or
        such representative requests that such fraud alert be removed
        before the end of such period, and the agency has received
        appropriate proof of the identity of the requester for such
        purpose; and
          (B) refer the information regarding the fraud alert under
        this paragraph to each of the other consumer reporting agencies
        described in section 1681a(p) of this title, in accordance with
        procedures developed under section 1681s(f) of this title.
      (2) Access to free reports
        In any case in which a consumer reporting agency includes a
      fraud alert in the file of a consumer pursuant to this
      subsection, the consumer reporting agency shall - 
          (A) disclose to the consumer that the consumer may request a
        free copy of the file of the consumer pursuant to section
        1681j(d) of this title; and
          (B) provide to the consumer all disclosures required to be
        made under section 1681g of this title, without charge to the
        consumer, not later than 3 business days after any request
        described in subparagraph (A).
    (b) Extended alerts
      (1) In general
        Upon the direct request of a consumer, or an individual acting
      on behalf of or as a personal representative of a consumer, who
      submits an identity theft report to a consumer reporting agency
      described in section 1681a(p) of this title that maintains a file
      on the consumer, if the agency has received appropriate proof of
      the identity of the requester, the agency shall - 
          (A) include a fraud alert in the file of that consumer, and
        also provide that alert along with any credit score generated
        in using that file, during the 7-year period beginning on the
        date of such request, unless the consumer or such
        representative requests that such fraud alert be removed before
        the end of such period and the agency has received appropriate
        proof of the identity of the requester for such purpose;
          (B) during the 5-year period beginning on the date of such
        request, exclude the consumer from any list of consumers
        prepared by the consumer reporting agency and provided to any
        third party to offer credit or insurance to the consumer as
        part of a transaction that was not initiated by the consumer,
        unless the consumer or such representative requests that such
        exclusion be rescinded before the end of such period; and
          (C) refer the information regarding the extended fraud alert
        under this paragraph to each of the other consumer reporting
        agencies described in section 1681a(p) of this title, in
        accordance with procedures developed under section 1681s(f) of
        this title.
      (2) Access to free reports
        In any case in which a consumer reporting agency includes a
      fraud alert in the file of a consumer pursuant to this
      subsection, the consumer reporting agency shall - 
          (A) disclose to the consumer that the consumer may request 2
        free copies of the file of the consumer pursuant to section
        1681j(d) of this title during the 12-month period beginning on
        the date on which the fraud alert was included in the file; and
          (B) provide to the consumer all disclosures required to be
        made under section 1681g of this title, without charge to the
        consumer, not later than 3 business days after any request
        described in subparagraph (A).
    (c) Active duty alerts
      Upon the direct request of an active duty military consumer, or
    an individual acting on behalf of or as a personal representative
    of an active duty military consumer, a consumer reporting agency
    described in section 1681a(p) of this title that maintains a file
    on the active duty military consumer and has received appropriate
    proof of the identity of the requester shall - 
        (1) include an active duty alert in the file of that active
      duty military consumer, and also provide that alert along with
      any credit score generated in using that file, during a period of
      not less than 12 months, or such longer period as the Commission
      shall determine, by regulation, beginning on the date of the
      request, unless the active duty military consumer or such
      representative requests that such fraud alert be removed before
      the end of such period, and the agency has received appropriate
      proof of the identity of the requester for such purpose;
        (2) during the 2-year period beginning on the date of such
      request, exclude the active duty military consumer from any list
      of consumers prepared by the consumer reporting agency and
      provided to any third party to offer credit or insurance to the
      consumer as part of a transaction that was not initiated by the
      consumer, unless the consumer requests that such exclusion be
      rescinded before the end of such period; and
        (3) refer the information regarding the active duty alert to
      each of the other consumer reporting agencies described in
      section 1681a(p) of this title, in accordance with procedures
      developed under section 1681s(f) of this title.
    (d) Procedures
      Each consumer reporting agency described in section 1681a(p) of
    this title shall establish policies and procedures to comply with
    this section, including procedures that inform consumers of the
    availability of initial, extended, and active duty alerts and
    procedures that allow consumers and active duty military consumers
    to request initial, extended, or active duty alerts (as applicable)
    in a simple and easy manner, including by telephone.
    (e) Referrals of alerts
      Each consumer reporting agency described in section 1681a(p) of
    this title that receives a referral of a fraud alert or active duty
    alert from another consumer reporting agency pursuant to this
    section shall, as though the agency received the request from the
    consumer directly, follow the procedures required under - 
        (1) paragraphs (1)(A) and (2) of subsection (a) of this
      section, in the case of a referral under subsection (a)(1)(B) of
      this section;
        (2) paragraphs (1)(A), (1)(B), and (2) of subsection (b) of
      this section, in the case of a referral under subsection
      (b)(1)(C) of this section; and
        (3) paragraphs (1) and (2) of subsection (c) of this section,
      in the case of a referral under subsection (c)(3) of this
      section.
    (f) Duty of reseller to reconvey alert
      A reseller shall include in its report any fraud alert or active
    duty alert placed in the file of a consumer pursuant to this
    section by another consumer reporting agency.
    (g) Duty of other consumer reporting agencies to provide contact
      information
      If a consumer contacts any consumer reporting agency that is not
    described in section 1681a(p) of this title to communicate a
    suspicion that the consumer has been or is about to become a victim
    of fraud or related crime, including identity theft, the agency
    shall provide information to the consumer on how to contact the
    Commission and the consumer reporting agencies described in section
    1681a(p) of this title to obtain more detailed information and
    request alerts under this section.
    (h) Limitations on use of information for credit extensions
      (1) Requirements for initial and active duty alerts
        (A) Notification
          Each initial fraud alert and active duty alert under this
        section shall include information that notifies all prospective
        users of a consumer report on the consumer to which the alert
        relates that the consumer does not authorize the establishment
        of any new credit plan or extension of credit, other than under
        an open-end credit plan (as defined in section 1602(i) of this
        title), in the name of the consumer, or issuance of an
        additional card on an existing credit account requested by a
        consumer, or any increase in credit limit on an existing credit
        account requested by a consumer, except in accordance with
        subparagraph (B).
        (B) Limitation on users
          (i) In general
            No prospective user of a consumer report that includes an
          initial fraud alert or an active duty alert in accordance
          with this section may establish a new credit plan or
          extension of credit, other than under an open-end credit plan
          (as defined in section 1602(i) of this title), in the name of
          the consumer, or issue an additional card on an existing
          credit account requested by a consumer, or grant any increase
          in credit limit on an existing credit account requested by a
          consumer, unless the user utilizes reasonable policies and
          procedures to form a reasonable belief that the user knows
          the identity of the person making the request.
          (ii) Verification
            If a consumer requesting the alert has specified a
          telephone number to be used for identity verification
          purposes, before authorizing any new credit plan or extension
          described in clause (i) in the name of such consumer, a user
          of such consumer report shall contact the consumer using that
          telephone number or take reasonable steps to verify the
          consumer's identity and confirm that the application for a
          new credit plan is not the result of identity theft.
      (2) Requirements for extended alerts
        (A) Notification
          Each extended alert under this section shall include
        information that provides all prospective users of a consumer
        report relating to a consumer with - 
            (i) notification that the consumer does not authorize the
          establishment of any new credit plan or extension of credit
          described in clause (i), other than under an open-end credit
          plan (as defined in section 1602(i) of this title), in the
          name of the consumer, or issuance of an additional card on an
          existing credit account requested by a consumer, or any
          increase in credit limit on an existing credit account
          requested by a consumer, except in accordance with
          subparagraph (B); and
            (ii) a telephone number or other reasonable contact method
          designated by the consumer.
        (B) Limitation on users
          No prospective user of a consumer report or of a credit score
        generated using the information in the file of a consumer that
        includes an extended fraud alert in accordance with this
        section may establish a new credit plan or extension of credit,
        other than under an open-end credit plan (as defined in section
        1602(i) of this title), in the name of the consumer, or issue
        an additional card on an existing credit account requested by a
        consumer, or any increase in credit limit on an existing credit
        account requested by a consumer, unless the user contacts the
        consumer in person or using the contact method described in
        subparagraph (A)(ii) to confirm that the application for a new
        credit plan or increase in credit limit, or request for an
        additional card is not the result of identity theft.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 605A, as added Pub. L. 108-159,
    title I, Sec. 112(a), Dec. 4, 2003, 117 Stat. 1955.)


-MISC1-
                              EFFECTIVE DATE                          
      Section subject to joint regulations establishing effective dates
    as prescribed by Federal Reserve Board and Federal Trade
    Commission, except as otherwise provided, see section 3 of Pub. L.
    108-159, set out as an Effective Date of 2003 Amendment note under
    section 1681 of this title.

                                REGULATIONS                            
      Pub. L. 108-159, title I, Sec. 112(b), Dec. 4, 2003, 117 Stat.
    1959, provided that: "The Commission shall prescribe regulations to
    define what constitutes appropriate proof of identity for purposes
    of sections 605A , 605B, and 609(a)(1) of the Fair Credit Reporting
    Act [15 U.S.C. 1681c-1, 1681c-2, 1681g(a)(1)], as amended by this
    Act."
      [For definitions of terms used in section 112(b) of Pub. L. 108-
    159, set out above, see section 2 of Pub. L. 108-159, set out as a
    Definitions note under section 1681 of this title.]

                 PUBLIC CAMPAIGN TO PREVENT IDENTITY THEFT             
      Pub. L. 108-159, title I, Sec. 151(b), Dec. 4, 2003, 117 Stat.
    1964, provided that: "Not later than 2 years after the date of
    enactment of this Act [Dec. 4, 2003], the Commission shall
    establish and implement a media and distribution campaign to teach
    the public how to prevent identity theft. Such campaign shall
    include existing Commission education materials, as well as radio,
    television, and print public service announcements, video
    cassettes, interactive digital video discs (DVD's) or compact audio
    discs (CD's), and Internet resources."
      [For definitions of terms used in section 151(b) of Pub. L. 108-
    159, set out above, see section 2 of Pub. L. 108-159, set out as a
    Definitions note under section 1681 of this title.]

-End-



-CITE-
    15 USC Sec. 1681c-2                                         01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681c-2. Block of information resulting from identity theft

-STATUTE-
    (a) Block
      Except as otherwise provided in this section, a consumer
    reporting agency shall block the reporting of any information in
    the file of a consumer that the consumer identifies as information
    that resulted from an alleged identity theft, not later than 4
    business days after the date of receipt by such agency of - 
        (1) appropriate proof of the identity of the consumer;
        (2) a copy of an identity theft report;
        (3) the identification of such information by the consumer; and
        (4) a statement by the consumer that the information is not
      information relating to any transaction by the consumer.
    (b) Notification
      A consumer reporting agency shall promptly notify the furnisher
    of information identified by the consumer under subsection (a) of
    this section - 
        (1) that the information may be a result of identity theft;
        (2) that an identity theft report has been filed;
        (3) that a block has been requested under this section; and
        (4) of the effective dates of the block.
    (c) Authority to decline or rescind
      (1) In general
        A consumer reporting agency may decline to block, or may
      rescind any block, of information relating to a consumer under
      this section, if the consumer reporting agency reasonably
      determines that - 
          (A) the information was blocked in error or a block was
        requested by the consumer in error;
          (B) the information was blocked, or a block was requested by
        the consumer, on the basis of a material misrepresentation of
        fact by the consumer relevant to the request to block; or
          (C) the consumer obtained possession of goods, services, or
        money as a result of the blocked transaction or transactions.
      (2) Notification to consumer
        If a block of information is declined or rescinded under this
      subsection, the affected consumer shall be notified promptly, in
      the same manner as consumers are notified of the reinsertion of
      information under section 1681i(a)(5)(B) of this title.
      (3) Significance of block
        For purposes of this subsection, if a consumer reporting agency
      rescinds a block, the presence of information in the file of a
      consumer prior to the blocking of such information is not
      evidence of whether the consumer knew or should have known that
      the consumer obtained possession of any goods, services, or money
      as a result of the block.
    (d) Exception for resellers
      (1) No reseller file
        This section shall not apply to a consumer reporting agency, if
      the consumer reporting agency - 
          (A) is a reseller;
          (B) is not, at the time of the request of the consumer under
        subsection (a) of this section, otherwise furnishing or
        reselling a consumer report concerning the information
        identified by the consumer; and
          (C) informs the consumer, by any means, that the consumer may
        report the identity theft to the Commission to obtain consumer
        information regarding identity theft.
      (2) Reseller with file
        The sole obligation of the consumer reporting agency under this
      section, with regard to any request of a consumer under this
      section, shall be to block the consumer report maintained by the
      consumer reporting agency from any subsequent use, if - 
          (A) the consumer, in accordance with the provisions of
        subsection (a) of this section, identifies, to a consumer
        reporting agency, information in the file of the consumer that
        resulted from identity theft; and
          (B) the consumer reporting agency is a reseller of the
        identified information.
      (3) Notice
        In carrying out its obligation under paragraph (2), the
      reseller shall promptly provide a notice to the consumer of the
      decision to block the file. Such notice shall contain the name,
      address, and telephone number of each consumer reporting agency
      from which the consumer information was obtained for resale.
    (e) Exception for verification companies
      The provisions of this section do not apply to a check services
    company, acting as such, which issues authorizations for the
    purpose of approving or processing negotiable instruments,
    electronic fund transfers, or similar methods of payments, except
    that, beginning 4 business days after receipt of information
    described in paragraphs (1) through (3) of subsection (a) of this
    section, a check services company shall not report to a national
    consumer reporting agency described in section 1681a(p) of this
    title, any information identified in the subject identity theft
    report as resulting from identity theft.
    (f) Access to blocked information by law enforcement agencies
      No provision of this section shall be construed as requiring a
    consumer reporting agency to prevent a Federal, State, or local law
    enforcement agency from accessing blocked information in a consumer
    file to which the agency could otherwise obtain access under this
    subchapter.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 605B, as added Pub. L. 108-159,
    title I, Sec. 152(a), Dec. 4, 2003, 117 Stat. 1964.)


-MISC1-
                              EFFECTIVE DATE                          
      Section subject to joint regulations establishing effective dates
    as prescribed by Federal Reserve Board and Federal Trade
    Commission, except as otherwise provided, see section 3 of Pub. L.
    108-159, set out as an Effective Date of 2003 Amendment note under
    section 1681 of this title.

-End-



-CITE-
    15 USC Sec. 1681d                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681d. Disclosure of investigative consumer reports

-STATUTE-
    (a) Disclosure of fact of preparation
      A person may not procure or cause to be prepared an investigative
    consumer report on any consumer unless - 
        (1) it is clearly and accurately disclosed to the consumer that
      an investigative consumer report including information as to his
      character, general reputation, personal characteristics, and mode
      of living, whichever are applicable, may be made, and such
      disclosure (A) is made in a writing mailed, or otherwise
      delivered, to the consumer, not later than three days after the
      date on which the report was first requested, and (B) includes a
      statement informing the consumer of his right to request the
      additional disclosures provided for under subsection (b) of this
      section and the written summary of the rights of the consumer
      prepared pursuant to section 1681g(c) of this title; and
        (2) the person certifies or has certified to the consumer
      reporting agency that - 
          (A) the person has made the disclosures to the consumer
        required by paragraph (1); and
          (B) the person will comply with subsection (b) of this
        section.
    (b) Disclosure on request of nature and scope of investigation
      Any person who procures or causes to be prepared an investigative
    consumer report on any consumer shall, upon written request made by
    the consumer within a reasonable period of time after the receipt
    by him of the disclosure required by subsection (a)(1) of this
    section, make a complete and accurate disclosure of the nature and
    scope of the investigation requested. This disclosure shall be made
    in a writing mailed, or otherwise delivered, to the consumer not
    later than five days after the date on which the request for such
    disclosure was received from the consumer or such report was first
    requested, whichever is the later.
    (c) Limitation on liability upon showing of reasonable procedures
      for compliance with provisions
      No person may be held liable for any violation of subsection (a)
    or (b) of this section if he shows by a preponderance of the
    evidence that at the time of the violation he maintained reasonable
    procedures to assure compliance with subsection (a) or (b) of this
    section.
    (d) Prohibitions
      (1) Certification
        A consumer reporting agency shall not prepare or furnish an
      investigative consumer report unless the agency has received a
      certification under subsection (a)(2) of this section from the
      person who requested the report.
      (2) Inquiries
        A consumer reporting agency shall not make an inquiry for the
      purpose of preparing an investigative consumer report on a
      consumer for employment purposes if the making of the inquiry by
      an employer or prospective employer of the consumer would violate
      any applicable Federal or State equal employment opportunity law
      or regulation.
      (3) Certain public record information
        Except as otherwise provided in section 1681k of this title, a
      consumer reporting agency shall not furnish an investigative
      consumer report that includes information that is a matter of
      public record and that relates to an arrest, indictment,
      conviction, civil judicial action, tax lien, or outstanding
      judgment, unless the agency has verified the accuracy of the
      information during the 30-day period ending on the date on which
      the report is furnished.
      (4) Certain adverse information
        A consumer reporting agency shall not prepare or furnish an
      investigative consumer report on a consumer that contains
      information that is adverse to the interest of the consumer and
      that is obtained through a personal interview with a neighbor,
      friend, or associate of the consumer or with another person with
      whom the consumer is acquainted or who has knowledge of such item
      of information, unless - 
          (A) the agency has followed reasonable procedures to obtain
        confirmation of the information, from an additional source that
        has independent and direct knowledge of the information; or
          (B) the person interviewed is the best possible source of the
        information.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 606, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1130; amended Pub. L. 104-
    208, div. A, title II, Secs. 2408(d)(2), 2414, Sept. 30, 1996, 110
    Stat. 3009-438, 3009-449.)


-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (a)(1)(B). Pub. L. 104-208, Secs. 2408(d)(2),
    2414(1), inserted "and the written summary of the rights of the
    consumer prepared pursuant to section 1681g(c) of this title"
    before the semicolon and substituted "and" for "or" at end.
      Subsec. (a)(2). Pub. L. 104-208, Sec. 2414(2), added par. (2) and
    struck out former par. (2) which read as follows: "the report is to
    be used for employment purposes for which the consumer has not
    specifically applied."
      Subsec. (b). Pub. L. 104-208, Sec. 2414(3), substituted ", make a
    complete" for ", shall make a complete".
      Subsec. (d). Pub. L. 104-208, Sec. 2414(4), added subsec. (d).

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

-End-



-CITE-
    15 USC Sec. 1681e                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681e. Compliance procedures

-STATUTE-
    (a) Identity and purposes of credit users
      Every consumer reporting agency shall maintain reasonable
    procedures designed to avoid violations of section 1681c of this
    title and to limit the furnishing of consumer reports to the
    purposes listed under section 1681b of this title. These procedures
    shall require that prospective users of the information identify
    themselves, certify the purposes for which the information is
    sought, and certify that the information will be used for no other
    purpose. Every consumer reporting agency shall make a reasonable
    effort to verify the identity of a new prospective user and the
    uses certified by such prospective user prior to furnishing such
    user a consumer report. No consumer reporting agency may furnish a
    consumer report to any person if it has reasonable grounds for
    believing that the consumer report will not be used for a purpose
    listed in section 1681b of this title.
    (b) Accuracy of report
      Whenever a consumer reporting agency prepares a consumer report
    it shall follow reasonable procedures to assure maximum possible
    accuracy of the information concerning the individual about whom
    the report relates.
    (c) Disclosure of consumer reports by users allowed
      A consumer reporting agency may not prohibit a user of a consumer
    report furnished by the agency on a consumer from disclosing the
    contents of the report to the consumer, if adverse action against
    the consumer has been taken by the user based in whole or in part
    on the report.
    (d) Notice to users and furnishers of information
      (1) Notice requirement
        A consumer reporting agency shall provide to any person - 
          (A) who regularly and in the ordinary course of business
        furnishes information to the agency with respect to any
        consumer; or
          (B) to whom a consumer report is provided by the agency;

      a notice of such person's responsibilities under this subchapter.
      (2) Content of notice
        The Federal Trade Commission shall prescribe the content of
      notices under paragraph (1), and a consumer reporting agency
      shall be in compliance with this subsection if it provides a
      notice under paragraph (1) that is substantially similar to the
      Federal Trade Commission prescription under this paragraph.
    (e) Procurement of consumer report for resale
      (1) Disclosure
        A person may not procure a consumer report for purposes of
      reselling the report (or any information in the report) unless
      the person discloses to the consumer reporting agency that
      originally furnishes the report - 
          (A) the identity of the end-user of the report (or
        information); and
          (B) each permissible purpose under section 1681b of this
        title for which the report is furnished to the end-user of the
        report (or information).
      (2) Responsibilities of procurers for resale
        A person who procures a consumer report for purposes of
      reselling the report (or any information in the report) shall - 
          (A) establish and comply with reasonable procedures designed
        to ensure that the report (or information) is resold by the
        person only for a purpose for which the report may be furnished
        under section 1681b of this title, including by requiring that
        each person to which the report (or information) is resold and
        that resells or provides the report (or information) to any
        other person - 
            (i) identifies each end user of the resold report (or
          information);
            (ii) certifies each purpose for which the report (or
          information) will be used; and
            (iii) certifies that the report (or information) will be
          used for no other purpose; and

          (B) before reselling the report, make reasonable efforts to
        verify the identifications and certifications made under
        subparagraph (A).
      (3) Resale of consumer report to a Federal agency or department
        Notwithstanding paragraph (1) or (2), a person who procures a
      consumer report for purposes of reselling the report (or any
      information in the report) shall not disclose the identity of the
      end-user of the report under paragraph (1) or (2) if - 
          (A) the end user is an agency or department of the United
        States Government which procures the report from the person for
        purposes of determining the eligibility of the consumer
        concerned to receive access or continued access to classified
        information (as defined in section 1681b(b)(4)(E)(i) (!1) of
        this title); and

          (B) the agency or department certifies in writing to the
        person reselling the report that nondisclosure is necessary to
        protect classified information or the safety of persons
        employed by or contracting with, or undergoing investigation
        for work or contracting with the agency or department.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 607, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1130; amended Pub. L. 104-
    208, div. A, title II, Sec. 2407, Sept. 30, 1996, 110 Stat. 3009-
    435; Pub. L. 105-107, title III, Sec. 311(b), Nov. 20, 1997, 111
    Stat. 2256.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1681b(b)(4) of this title, referred to in subsec.
    (e)(3)(A), was subsequently amended, and section 1681b(b)(4)(E) no
    longer defines the term "classified information". However, such
    term is defined elsewhere in that section.


-MISC1-
                                AMENDMENTS                            
      1997 - Subsec. (e)(3). Pub. L. 105-107 added par. (3).
      1996 - Subsecs. (c) to (e). Pub. L. 104-208 added subsecs. (c) to
    (e).

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by Pub. L. 105-107 effective as if included in chapter
    1 of subtitle D of the Economic Growth and Regulatory Paperwork
    Reduction Act of 1996, Pub. L. 104-208, as of Sept. 30, 1996, see
    section 311(c) of Pub. L. 105-107, set out as a note under section
    1681b of this title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    15 USC Sec. 1681f                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681f. Disclosures to governmental agencies

-STATUTE-
      Notwithstanding the provisions of section 1681b of this title, 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.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 608, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1131.)

-End-



-CITE-
    15 USC Sec. 1681g                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681g. Disclosures to consumers

-STATUTE-
    (a) Information on file; sources; report recipients
      Every consumer reporting agency shall, upon request, and subject
    to section 1681h(a)(1) of this title, clearly and accurately
    disclose to the consumer:
      (1) All information in the consumer's file at the time of the
    request, except that - 
        (A) if the consumer to whom the file relates requests that the
      first 5 digits of the social security number (or similar
      identification number) of the consumer not be included in the
      disclosure and the consumer reporting agency has received
      appropriate proof of the identity of the requester, the consumer
      reporting agency shall so truncate such number in such
      disclosure; and
        (B) nothing in this paragraph shall be construed to require a
      consumer reporting agency to disclose to a consumer any
      information concerning credit scores or any other risk scores or
      predictors relating to the consumer.

      (2) The sources of the information; except that the sources of
    information acquired solely for use in preparing an investigative
    consumer report and actually used for no other purpose need not be
    disclosed: Provided, That in the event an action is brought under
    this subchapter, such sources shall be available to the plaintiff
    under appropriate discovery procedures in the court in which the
    action is brought.
      (3)(A) Identification of each person (including each end-user
    identified under section 1681e(e)(1) of this title) that procured a
    consumer report - 
        (i) for employment purposes, during the 2-year period preceding
      the date on which the request is made; or
        (ii) for any other purpose, during the 1-year period preceding
      the date on which the request is made.

      (B) An identification of a person under subparagraph (A) shall
    include - 
        (i) the name of the person or, if applicable, the trade name
      (written in full) under which such person conducts business; and
        (ii) upon request of the consumer, the address and telephone
      number of the person.

      (C) Subparagraph (A) does not apply if - 
        (i) the end user is an agency or department of the United
      States Government that procures the report from the person for
      purposes of determining the eligibility of the consumer to whom
      the report relates to receive access or continued access to
      classified information (as defined in section 1681b(b)(4)(E)(i)
      (!1) of this title); and

        (ii) the head of the agency or department makes a written
      finding as prescribed under section 1681b(b)(4)(A) of this title.

      (4) The dates, original payees, and amounts of any checks upon
    which is based any adverse characterization of the consumer,
    included in the file at the time of the disclosure.
      (5) A record of all inquiries received by the agency during the 1-
    year period preceding the request that identified the consumer in
    connection with a credit or insurance transaction that was not
    initiated by the consumer.
      (6) If the consumer requests the credit file and not the credit
    score, a statement that the consumer may request and obtain a
    credit score.
    (b) Exempt information
      The requirements of subsection (a) of this section respecting the
    disclosure of sources of information and the recipients of consumer
    reports do not apply to information received or consumer reports
    furnished prior to the effective date of this subchapter except to
    the extent that the matter involved is contained in the files of
    the consumer reporting agency on that date.
    (c) Summary of rights to obtain and dispute information in consumer
      reports and to obtain credit scores
      (1) Commission summary of rights required
        (A) In general
          The Commission shall prepare a model summary of the rights of
        consumers under this subchapter.
        (B) Content of summary
          The summary of rights prepared under subparagraph (A) shall
        include a description of - 
            (i) the right of a consumer to obtain a copy of a consumer
          report under subsection (a) of this section from each
          consumer reporting agency;
            (ii) the frequency and circumstances under which a consumer
          is entitled to receive a consumer report without charge under
          section 1681j of this title;
            (iii) the right of a consumer to dispute information in the
          file of the consumer under section 1681i of this title;
            (iv) the right of a consumer to obtain a credit score from
          a consumer reporting agency, and a description of how to
          obtain a credit score;
            (v) the method by which a consumer can contact, and obtain
          a consumer report from, a consumer reporting agency without
          charge, as provided in the regulations of the Commission
          prescribed under section 211(c) (!1) of the Fair and Accurate
          Credit Transactions Act of 2003; and
            (vi) the method by which a consumer can contact, and obtain
          a consumer report from, a consumer reporting agency described
          in section 1681a(w) of this title, as provided in the
          regulations of the Commission prescribed under section
          1681j(a)(1)(C) of this title.
        (C) Availability of summary of rights
          The Commission shall - 
            (i) actively publicize the availability of the summary of
          rights prepared under this paragraph;
            (ii) conspicuously post on its Internet website the
          availability of such summary of rights; and
            (iii) promptly make such summary of rights available to
          consumers, on request.
      (2) Summary of rights required to be included with agency
        disclosures
        A consumer reporting agency shall provide to a consumer, with
      each written disclosure by the agency to the consumer under this
      section - 
          (A) the summary of rights prepared by the Commission under
        paragraph (1);
          (B) in the case of a consumer reporting agency described in
        section 1681a(p) of this title, a toll-free telephone number
        established by the agency, at which personnel are accessible to
        consumers during normal business hours;
          (C) a list of all Federal agencies responsible for enforcing
        any provision of this subchapter, and the address and any
        appropriate phone number of each such agency, in a form that
        will assist the consumer in selecting the appropriate agency;
          (D) a statement that the consumer may have additional rights
        under State law, and that the consumer may wish to contact a
        State or local consumer protection agency or a State attorney
        general (or the equivalent thereof) to learn of those rights;
        and
          (E) a statement that a consumer reporting agency is not
        required to remove accurate derogatory information from the
        file of a consumer, unless the information is outdated under
        section 1681c of this title or cannot be verified.
    (d) Summary of rights of identity theft victims
      (1) In general
        The Commission, in consultation with the Federal banking
      agencies and the National Credit Union Administration, shall
      prepare a model summary of the rights of consumers under this
      subchapter with respect to the procedures for remedying the
      effects of fraud or identity theft involving credit, an
      electronic fund transfer, or an account or transaction at or with
      a financial institution or other creditor.
      (2) Summary of rights and contact information
        Beginning 60 days after the date on which the model summary of
      rights is prescribed in final form by the Commission pursuant to
      paragraph (1), if any consumer contacts a consumer reporting
      agency and expresses a belief that the consumer is a victim of
      fraud or identity theft involving credit, an electronic fund
      transfer, or an account or transaction at or with a financial
      institution or other creditor, the consumer reporting agency
      shall, in addition to any other action that the agency may take,
      provide the consumer with a summary of rights that contains all
      of the information required by the Commission under paragraph
      (1), and information on how to contact the Commission to obtain
      more detailed information.
    (e) Information available to victims
      (1) In general
        For the purpose of documenting fraudulent transactions
      resulting from identity theft, not later than 30 days after the
      date of receipt of a request from a victim in accordance with
      paragraph (3), and subject to verification of the identity of the
      victim and the claim of identity theft in accordance with
      paragraph (2), a business entity that has provided credit to,
      provided for consideration products, goods, or services to,
      accepted payment from, or otherwise entered into a commercial
      transaction for consideration with, a person who has allegedly
      made unauthorized use of the means of identification of the
      victim, shall provide a copy of application and business
      transaction records in the control of the business entity,
      whether maintained by the business entity or by another person on
      behalf of the business entity, evidencing any transaction alleged
      to be a result of identity theft to - 
          (A) the victim;
          (B) any Federal, State, or local government law enforcement
        agency or officer specified by the victim in such a request; or
          (C) any law enforcement agency investigating the identity
        theft and authorized by the victim to take receipt of records
        provided under this subsection.
      (2) Verification of identity and claim
        Before a business entity provides any information under
      paragraph (1), unless the business entity, at its discretion,
      otherwise has a high degree of confidence that it knows the
      identity of the victim making a request under paragraph (1), the
      victim shall provide to the business entity - 
          (A) as proof of positive identification of the victim, at the
        election of the business entity - 
            (i) the presentation of a government-issued identification
          card;
            (ii) personally identifying information of the same type as
          was provided to the business entity by the unauthorized
          person; or
            (iii) personally identifying information that the business
          entity typically requests from new applicants or for new
          transactions, at the time of the victim's request for
          information, including any documentation described in clauses
          (i) and (ii); and

          (B) as proof of a claim of identity theft, at the election of
        the business entity - 
            (i) a copy of a police report evidencing the claim of the
          victim of identity theft; and
            (ii) a properly completed - 
              (I) copy of a standardized affidavit of identity theft
            developed and made available by the Commission; or
              (II) an (!2) affidavit of fact that is acceptable to the
            business entity for that purpose.

      (3) Procedures
        The request of a victim under paragraph (1) shall - 
          (A) be in writing;
          (B) be mailed to an address specified by the business entity,
        if any; and
          (C) if asked by the business entity, include relevant
        information about any transaction alleged to be a result of
        identity theft to facilitate compliance with this section
        including - 
            (i) if known by the victim (or if readily obtainable by the
          victim), the date of the application or transaction; and
            (ii) if known by the victim (or if readily obtainable by
          the victim), any other identifying information such as an
          account or transaction number.
      (4) No charge to victim
        Information required to be provided under paragraph (1) shall
      be so provided without charge.
      (5) Authority to decline to provide information
        A business entity may decline to provide information under
      paragraph (1) if, in the exercise of good faith, the business
      entity determines that - 
          (A) this subsection does not require disclosure of the
        information;
          (B) after reviewing the information provided pursuant to
        paragraph (2), the business entity does not have a high degree
        of confidence in knowing the true identity of the individual
        requesting the information;
          (C) the request for the information is based on a
        misrepresentation of fact by the individual requesting the
        information relevant to the request for information; or
          (D) the information requested is Internet navigational data
        or similar information about a person's visit to a website or
        online service.
      (6) Limitation on liability
        Except as provided in section 1681s of this title, sections
      1681n and 1681o of this title do not apply to any violation of
      this subsection.
      (7) Limitation on civil liability
        No business entity may be held civilly liable under any
      provision of Federal, State, or other law for disclosure, made in
      good faith pursuant to this subsection.
      (8) No new recordkeeping obligation
        Nothing in this subsection creates an obligation on the part of
      a business entity to obtain, retain, or maintain information or
      records that are not otherwise required to be obtained, retained,
      or maintained in the ordinary course of its business or under
      other applicable law.
      (9) Rule of construction
        (A) In general
          No provision of subtitle A of title V of Public Law 106-102
        [15 U.S.C. 6801 et seq.], prohibiting the disclosure of
        financial information by a business entity to third parties
        shall be used to deny disclosure of information to the victim
        under this subsection.
        (B) Limitation
          Except as provided in subparagraph (A), nothing in this
        subsection permits a business entity to disclose information,
        including information to law enforcement under subparagraphs
        (B) and (C) of paragraph (1), that the business entity is
        otherwise prohibited from disclosing under any other applicable
        provision of Federal or State law.
      (10) Affirmative defense
        In any civil action brought to enforce this subsection, it is
      an affirmative defense (which the defendant must establish by a
      preponderance of the evidence) for a business entity to file an
      affidavit or answer stating that - 
          (A) the business entity has made a reasonably diligent search
        of its available business records; and
          (B) the records requested under this subsection do not exist
        or are not reasonably available.
      (11) Definition of victim
        For purposes of this subsection, the term "victim" means a
      consumer whose means of identification or financial information
      has been used or transferred (or has been alleged to have been
      used or transferred) without the authority of that consumer, with
      the intent to commit, or to aid or abet, an identity theft or a
      similar crime.
      (12) Effective date
        This subsection shall become effective 180 days after December
      4, 2003.
      (13) Effectiveness study
        Not later than 18 months after December 4, 2003, the
      Comptroller General of the United States shall submit a report to
      Congress assessing the effectiveness of this provision.
    (f) Disclosure of credit scores
      (1) In general
        Upon the request of a consumer for a credit score, a consumer
      reporting agency shall supply to the consumer a statement
      indicating that the information and credit scoring model may be
      different than the credit score that may be used by the lender,
      and a notice which shall include - 
          (A) the current credit score of the consumer or the most
        recent credit score of the consumer that was previously
        calculated by the credit reporting agency for a purpose related
        to the extension of credit;
          (B) the range of possible credit scores under the model used;
          (C) all of the key factors that adversely affected the credit
        score of the consumer in the model used, the total number of
        which shall not exceed 4, subject to paragraph (9);
          (D) the date on which the credit score was created; and
          (E) the name of the person or entity that provided the credit
        score or credit file upon which the credit score was created.
      (2) Definitions
        For purposes of this subsection, the following definitions
      shall apply:
        (A) Credit score
          The term "credit score" - 
            (i) means a numerical value or a categorization derived
          from a statistical tool or modeling system used by a person
          who makes or arranges a loan to predict the likelihood of
          certain credit behaviors, including default (and the
          numerical value or the categorization derived from such
          analysis may also be referred to as a "risk predictor" or
          "risk score"); and
            (ii) does not include - 
              (I) any mortgage score or rating of an automated
            underwriting system that considers one or more factors in
            addition to credit information, including the loan to value
            ratio, the amount of down payment, or the financial assets
            of a consumer; or
              (II) any other elements of the underwriting process or
            underwriting decision.
        (B) Key factors
          The term "key factors" means all relevant elements or reasons
        adversely affecting the credit score for the particular
        individual, listed in the order of their importance based on
        their effect on the credit score.
      (3) Timeframe and manner of disclosure
        The information required by this subsection shall be provided
      in the same timeframe and manner as the information described in
      subsection (a) of this section.
      (4) Applicability to certain uses
        This subsection shall not be construed so as to compel a
      consumer reporting agency to develop or disclose a score if the
      agency does not - 
          (A) distribute scores that are used in connection with
        residential real property loans; or
          (B) develop scores that assist credit providers in
        understanding the general credit behavior of a consumer and
        predicting the future credit behavior of the consumer.
      (5) Applicability to credit scores developed by another person
        (A) In general
          This subsection shall not be construed to require a consumer
        reporting agency that distributes credit scores developed by
        another person or entity to provide a further explanation of
        them, or to process a dispute arising pursuant to section 1681i
        of this title, except that the consumer reporting agency shall
        provide the consumer with the name and address and website for
        contacting the person or entity who developed the score or
        developed the methodology of the score.
        (B) Exception
          This paragraph shall not apply to a consumer reporting agency
        that develops or modifies scores that are developed by another
        person or entity.
      (6) Maintenance of credit scores not required
        This subsection shall not be construed to require a consumer
      reporting agency to maintain credit scores in its files.
      (7) Compliance in certain cases
        In complying with this subsection, a consumer reporting agency
      shall - 
          (A) supply the consumer with a credit score that is derived
        from a credit scoring model that is widely distributed to users
        by that consumer reporting agency in connection with
        residential real property loans or with a credit score that
        assists the consumer in understanding the credit scoring
        assessment of the credit behavior of the consumer and
        predictions about the future credit behavior of the consumer;
        and
          (B) a statement indicating that the information and credit
        scoring model may be different than that used by the lender.
      (8) Fair and reasonable fee
        A consumer reporting agency may charge a fair and reasonable
      fee, as determined by the Commission, for providing the
      information required under this subsection.
      (9) Use of enquiries as a key factor
        If a key factor that adversely affects the credit score of a
      consumer consists of the number of enquiries made with respect to
      a consumer report, that factor shall be included in the
      disclosure pursuant to paragraph (1)(C) without regard to the
      numerical limitation in such paragraph.
    (g) Disclosure of credit scores by certain mortgage lenders
      (1) In general
        Any person who makes or arranges loans and who uses a consumer
      credit score, as defined in subsection (f) of this section, in
      connection with an application initiated or sought by a consumer
      for a closed end loan or the establishment of an open end loan
      for a consumer purpose that is secured by 1 to 4 units of
      residential real property (hereafter in this subsection referred
      to as the "lender") shall provide the following to the consumer
      as soon as reasonably practicable:
        (A) Information required under subsection (f)
          (i) In general
            A copy of the information identified in subsection (f) of
          this section that was obtained from a consumer reporting
          agency or was developed and used by the user of the
          information.
          (ii) Notice under subparagraph (D)
            In addition to the information provided to it by a third
          party that provided the credit score or scores, a lender is
          only required to provide the notice contained in subparagraph
          (D).
        (B) Disclosures in case of automated underwriting system
          (i) In general
            If a person that is subject to this subsection uses an
          automated underwriting system to underwrite a loan, that
          person may satisfy the obligation to provide a credit score
          by disclosing a credit score and associated key factors
          supplied by a consumer reporting agency.
          (ii) Numerical credit score
            However, if a numerical credit score is generated by an
          automated underwriting system used by an enterprise, and that
          score is disclosed to the person, the score shall be
          disclosed to the consumer consistent with subparagraph (C).
          (iii) Enterprise defined
            For purposes of this subparagraph, the term "enterprise"
          has the same meaning as in paragraph (6) of section 4502 of
          title 12.
        (C) Disclosures of credit scores not obtained from a consumer
          reporting agency
          A person that is subject to the provisions of this subsection
        and that uses a credit score, other than a credit score
        provided by a consumer reporting agency, may satisfy the
        obligation to provide a credit score by disclosing a credit
        score and associated key factors supplied by a consumer
        reporting agency.
        (D) Notice to home loan applicants
          A copy of the following notice, which shall include the name,
        address, and telephone number of each consumer reporting agency
        providing a credit score that was used:

                    "NOTICE TO THE HOME LOAN APPLICANT                
      "In connection with your application for a home loan, the lender
    must disclose to you the score that a consumer reporting agency
    distributed to users and the lender used in connection with your
    home loan, and the key factors affecting your credit scores.
      "The credit score is a computer generated summary calculated at
    the time of the request and based on information that a consumer
    reporting agency or lender has on file. The scores are based on
    data about your credit history and payment patterns. Credit scores
    are important because they are used to assist the lender in
    determining whether you will obtain a loan. They may also be used
    to determine what interest rate you may be offered on the mortgage.
    Credit scores can change over time, depending on your conduct, how
    your credit history and payment patterns change, and how credit
    scoring technologies change.
      "Because the score is based on information in your credit
    history, it is very important that you review the credit-related
    information that is being furnished to make sure it is accurate.
    Credit records may vary from one company to another.
      "If you have questions about your credit score or the credit
    information that is furnished to you, contact the consumer
    reporting agency at the address and telephone number provided with
    this notice, or contact the lender, if the lender developed or
    generated the credit score. The consumer reporting agency plays no
    part in the decision to take any action on the loan application and
    is unable to provide you with specific reasons for the decision on
    a loan application.
      "If you have questions concerning the terms of the loan, contact
    the lender.".
        (E) Actions not required under this subsection
          This subsection shall not require any person to - 
            (i) explain the information provided pursuant to subsection
          (f) of this section;
            (ii) disclose any information other than a credit score or
          key factors, as defined in subsection (f) of this section;
            (iii) disclose any credit score or related information
          obtained by the user after a loan has closed;
            (iv) provide more than 1 disclosure per loan transaction;
          or
            (v) provide the disclosure required by this subsection when
          another person has made the disclosure to the consumer for
          that loan transaction.
        (F) No obligation for content
          (i) In general
            The obligation of any person pursuant to this subsection
          shall be limited solely to providing a copy of the
          information that was received from the consumer reporting
          agency.
          (ii) Limit on liability
            No person has liability under this subsection for the
          content of that information or for the omission of any
          information within the report provided by the consumer
          reporting agency.
        (G) Person defined as excluding enterprise
          As used in this subsection, the term "person" does not
        include an enterprise (as defined in paragraph (6) of section
        4502 of title 12).
      (2) Prohibition on disclosure clauses null and void
        (A) In general
          Any provision in a contract that prohibits the disclosure of
        a credit score by a person who makes or arranges loans or a
        consumer reporting agency is void.
        (B) No liability for disclosure under this subsection
          A lender shall not have liability under any contractual
        provision for disclosure of a credit score pursuant to this
        subsection.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 609, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1131; amended Pub. L. 103-
    325, title III, Sec. 339, Sept. 23, 1994, 108 Stat. 2237; Pub. L.
    104-208, div. A, title II, Sec. 2408(a)-(d)(1), (e)(5)(A), Sept.
    30, 1996, 110 Stat. 3009-436, 3009-437, 3009-439; Pub. L. 105-347,
    Sec. 4(a), Nov. 2, 1998, 112 Stat. 3210; Pub. L. 108-159, title I,
    Secs. 115, 151(a)(1), title II, Secs. 211(c), 212(a)-(c), title
    VIII, Sec. 811(d), Dec. 4, 2003, 117 Stat. 1961, 1970, 1973-1975,
    2011.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1681b(b)(4) of this title, referred to in subsec.
    (a)(3)(C)(i), was subsequently amended, and section 1681b(b)(4)(E)
    no longer defines the term "classified information". However, such
    term is defined elsewhere in that section.
      For the effective date of this subchapter, referred to in subsec.
    (b), see section 504(d) of Pub. L. 90-321, set out as an Effective
    Date note under section 1681 of this title.
      Section 211(c) of the Fair and Accurate Credit Transactions Act
    of 2003, referred to in subsec. (c)(1)(B)(v), probably means
    section 211(d) of Pub. L. 108-159, which is set out as a note under
    section 1681j of this title and relates to the promulgation of
    regulations. Section 211(c) of Pub. L. 108-159 amended this
    section.
      Public Law 106-102, referred to in subsec. (e)(9)(A), is Pub. L.
    106-102, Nov. 12, 1999, 113 Stat. 1338, as amended, known as the
    Gramm-Leach-Bliley Act. Subtitle A of title V of the Act is
    classified principally to subchapter I (Sec. 6801 et seq.) of
    chapter 94 of this title. For complete classification of this Act
    to the Code, see Short Title of 1999 Amendment note set out under
    section 1811 of Title 12, Banks and Banking, and Tables.


-MISC1-
                                AMENDMENTS                            
      2003 - Subsec. (a)(1). Pub. L. 108-159, Sec. 115, substituted
    "except that - 
        "(A) if the consumer to whom the file relates requests that the
      first 5 digits of the social security number (or similar
      identification number) of the consumer not be included in the
      disclosure and the consumer reporting agency has received
      appropriate proof of the identity of the requester, the consumer
      reporting agency shall so truncate such number in such
      disclosure; and
        "(B) nothing"
    for "except that nothing".
      Subsec. (a)(2), (3)(C). Pub. L. 108-159, Sec. 811(d), realigned
    margins.
      Subsec. (a)(6). Pub. L. 108-159, Sec. 212(a), added par. (6).
      Subsec. (c). Pub. L. 108-159, Sec. 211(c), amended subsec. (c)
    generally. Prior to amendment, subsec. (c) related to the summary
    of rights required to be included with disclosure to consumers by
    consumer reporting agencies.
      Subsecs. (d), (e). Pub. L. 108-159, Sec. 151(a)(1), added
    subsecs. (d) and (e).
      Subsec. (f). Pub. L. 108-159, Sec. 212(b), added subsec. (f).
      Subsec. (g). Pub. L. 108-159, Sec. 212(c), added subsec. (g).
      1998 - Subsec. (a)(3)(C). Pub. L. 105-347 added subpar. (C).
      1996 - Subsec. (a). Pub. L. 104-208, Sec. 2408(e)(5)(A), in
    introductory provisions substituted ", and subject to section
    1681h(a)(1) of this title" for "and proper identification of any
    consumer".
      Subsec. (a)(1). Pub. L. 104-208, Sec. 2408(a), amended par. (1)
    generally. Prior to amendment, par. (1) read as follows: "The
    nature and substance of all information (except medical
    information) in its files on the consumer at the time of the
    request."
      Subsec. (a)(3). Pub. L. 104-208, Sec. 2408(b), amended par. (3)
    generally. Prior to amendment, par. (3) read as follows: "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."
      Subsec. (a)(5). Pub. L. 104-208, Sec. 2408(c), added par. (5).
      Subsec. (c). Pub. L. 104-208, Sec. 2408(d)(1), added subsec. (c).
      1994 - Subsec. (a)(4). Pub. L. 103-325 added par. (4).

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-159 subject to joint regulations
    establishing effective dates as prescribed by Federal Reserve Board
    and Federal Trade Commission, except as otherwise provided, see
    section 3 of Pub. L. 108-159, set out as a note under section 1681
    of this title.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-347 deemed to have same effective date
    as amendments made by section 2403 of Pub. L. 104-208, see section
    7 of Pub. L. 105-347, set out as a note under section 1681a of this
    title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

          SIMPLIFIED DISCLOSURE TO MAXIMIZE COMPREHENSIBILITY AND
                              STANDARDIZATION
      Section 2408(e)(2), (3) of div. A of Pub. L. 104-208 provided
    that:
      "(2) Simplified disclosure. - Not later than 90 days after the
    date of enactment of this Act [Sept. 30, 1996], each consumer
    reporting agency shall develop a form on which such consumer
    reporting agency shall make the disclosures required under section
    609(a) of the Fair Credit Reporting Act [15 U.S.C. 1681g(a)], for
    the purpose of maximizing the comprehensibility and standardization
    of such disclosures.
      "(3) Goals. - The Federal Trade Commission shall take appropriate
    action to assure that the goals of comprehensibility and
    standardization are achieved in accordance with paragraph (2)."

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) So in original. The word "an" probably should not appear.


-End-



-CITE-
    15 USC Sec. 1681h                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681h. Conditions and form of disclosure to consumers

-STATUTE-
    (a) In general
      (1) Proper identification
        A consumer reporting agency shall require, as a condition of
      making the disclosures required under section 1681g of this
      title, that the consumer furnish proper identification.
      (2) Disclosure in writing
        Except as provided in subsection (b) of this section, the
      disclosures required to be made under section 1681g of this title
      shall be provided under that section in writing.
    (b) Other forms of disclosure
      (1) In general
        If authorized by a consumer, a consumer reporting agency may
      make the disclosures required under (!1) 1681g of this title - 

          (A) other than in writing; and
          (B) in such form as may be - 
            (i) specified by the consumer in accordance with paragraph
          (2); and
            (ii) available from the agency.
      (2) Form
        A consumer may specify pursuant to paragraph (1) that
      disclosures under section 1681g of this title shall be made - 
          (A) in person, upon the appearance of the consumer at the
        place of business of the consumer reporting agency where
        disclosures are regularly provided, during normal business
        hours, and on reasonable notice;
          (B) by telephone, if the consumer has made a written request
        for disclosure by telephone;
          (C) by electronic means, if available from the agency; or
          (D) by any other reasonable means that is available from the
        agency.
    (c) Trained personnel
      Any consumer reporting agency shall provide trained personnel to
    explain to the consumer any information furnished to him pursuant
    to section 1681g of this title.
    (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 1681n and 1681o of this title, no
    consumer may bring any action or proceeding in the nature of
    defamation, invasion of privacy, or negligence with respect to the
    reporting of information against any consumer reporting agency, any
    user of information, or any person who furnishes information to a
    consumer reporting agency, based on information disclosed pursuant
    to section 1681g, 1681h, or 1681m of this title, or based on
    information disclosed by a user of a consumer report to or for a
    consumer against whom the user has taken adverse action, based in
    whole or in part on the report (!2) except as to false information
    furnished with malice or willful intent to injure such consumer.


-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 610, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1131; amended Pub. L. 104-
    208, div. A, title II, Sec. 2408(e)(1), (4), (5)(B), Sept. 30,
    1996, 110 Stat. 3009-438, 3009-439.)


-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-208, Sec. 2408(e)(5)(B), inserted "and form"
    after "Conditions" in section catchline.
      Subsec. (a). Pub. L. 104-208, Sec. 2408(e)(1), inserted heading
    and amended text of subsec. (a) generally. Prior to amendment, text
    read as follows: "A consumer reporting agency shall make the
    disclosures required under section 1681g of this title during
    normal business hours and on reasonable notice."
      Subsec. (b). Pub. L. 104-208, Sec. 2408(e)(1), inserted heading
    and amended text of subsec. (b) generally. Prior to amendment, text
    read as follows: "The disclosures required under section 1681g of
    this title 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."
      Subsec. (e). Pub. L. 104-208, Sec. 2408(e)(4), inserted "or based
    on information disclosed by a user of a consumer report to or for a
    consumer against whom the user has taken adverse action, based in
    whole or in part on the report" before "except".

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

-FOOTNOTE-
    (!1) So in original. Probably should be followed by "section".

    (!2) So in original. Probably should be followed by a comma.


-End-



-CITE-
    15 USC Sec. 1681i                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681i. Procedure in case of disputed accuracy

-STATUTE-
    (a) Reinvestigations of disputed information
      (1) Reinvestigation required
        (A) In general
          Subject to subsection (f) of this section, if the
        completeness or accuracy of any item of information contained
        in a consumer's file at a consumer reporting agency is disputed
        by the consumer and the consumer notifies the agency directly,
        or indirectly through a reseller, of such dispute, the agency
        shall, free of charge, conduct a reasonable reinvestigation to
        determine whether the disputed information is inaccurate and
        record the current status of the disputed information, or
        delete the item from the file in accordance with paragraph (5),
        before the end of the 30-day period beginning on the date on
        which the agency receives the notice of the dispute from the
        consumer or reseller.
        (B) Extension of period to reinvestigate
          Except as provided in subparagraph (C), the 30-day period
        described in subparagraph (A) may be extended for not more than
        15 additional days if the consumer reporting agency receives
        information from the consumer during that 30-day period that is
        relevant to the reinvestigation.
        (C) Limitations on extension of period to reinvestigate
          Subparagraph (B) shall not apply to any reinvestigation in
        which, during the 30-day period described in subparagraph (A),
        the information that is the subject of the reinvestigation is
        found to be inaccurate or incomplete or the consumer reporting
        agency determines that the information cannot be verified.
      (2) Prompt notice of dispute to furnisher of information
        (A) In general
          Before the expiration of the 5-business-day period beginning
        on the date on which a consumer reporting agency receives
        notice of a dispute from any consumer or a reseller in
        accordance with paragraph (1), the agency shall provide
        notification of the dispute to any person who provided any item
        of information in dispute, at the address and in the manner
        established with the person. The notice shall include all
        relevant information regarding the dispute that the agency has
        received from the consumer or reseller.
        (B) Provision of other information
          The consumer reporting agency shall promptly provide to the
        person who provided the information in dispute all relevant
        information regarding the dispute that is received by the
        agency from the consumer or the reseller after the period
        referred to in subparagraph (A) and before the end of the
        period referred to in paragraph (1)(A).
      (3) Determination that dispute is frivolous or irrelevant
        (A) In general
          Notwithstanding paragraph (1), a consumer reporting agency
        may terminate a reinvestigation of information disputed by a
        consumer under that paragraph if the agency reasonably
        determines that the dispute by the consumer is frivolous or
        irrelevant, including by reason of a failure by a consumer to
        provide sufficient information to investigate the disputed
        information.
        (B) Notice of determination
          Upon making any determination in accordance with subparagraph
        (A) that a dispute is frivolous or irrelevant, a consumer
        reporting agency shall notify the consumer of such
        determination not later than 5 business days after making such
        determination, by mail or, if authorized by the consumer for
        that purpose, by any other means available to the agency.
        (C) Contents of notice
          A notice under subparagraph (B) shall include - 
            (i) the reasons for the determination under subparagraph
          (A); and
            (ii) identification of any information required to
          investigate the disputed information, which may consist of a
          standardized form describing the general nature of such
          information.
      (4) Consideration of consumer information
        In conducting any reinvestigation under paragraph (1) with
      respect to disputed information in the file of any consumer, the
      consumer reporting agency shall review and consider all relevant
      information submitted by the consumer in the period described in
      paragraph (1)(A) with respect to such disputed information.
      (5) Treatment of inaccurate or unverifiable information
        (A) In general
          If, after any reinvestigation under paragraph (1) of any
        information disputed by a consumer, an item of the information
        is found to be inaccurate or incomplete or cannot be verified,
        the consumer reporting agency shall - 
            (i) promptly delete that item of information from the file
          of the consumer, or modify that item of information, as
          appropriate, based on the results of the reinvestigation; and
            (ii) promptly notify the furnisher of that information that
          the information has been modified or deleted from the file of
          the consumer.
        (B) Requirements relating to reinsertion of previously deleted
          material
          (i) Certification of accuracy of information
            If any information is deleted from a consumer's file
          pursuant to subparagraph (A), the information may not be
          reinserted in the file by the consumer reporting agency
          unless the person who furnishes the information certifies
          that the information is complete and accurate.
          (ii) Notice to consumer
            If any information that has been deleted from a consumer's
          file pursuant to subparagraph (A) is reinserted in the file,
          the consumer reporting agency shall notify the consumer of
          the reinsertion in writing not later than 5 business days
          after the reinsertion or, if authorized by the consumer for
          that purpose, by any other means available to the agency.
          (iii) Additional information
            As part of, or in addition to, the notice under clause
          (ii), a consumer reporting agency shall provide to a consumer
          in writing not later than 5 business days after the date of
          the reinsertion - 
              (I) a statement that the disputed information has been
            reinserted;
              (II) the business name and address of any furnisher of
            information contacted and the telephone number of such
            furnisher, if reasonably available, or of any furnisher of
            information that contacted the consumer reporting agency,
            in connection with the reinsertion of such information; and
              (III) a notice that the consumer has the right to add a
            statement to the consumer's file disputing the accuracy or
            completeness of the disputed information.
        (C) Procedures to prevent reappearance
          A consumer reporting agency shall maintain reasonable
        procedures designed to prevent the reappearance in a consumer's
        file, and in consumer reports on the consumer, of information
        that is deleted pursuant to this paragraph (other than
        information that is reinserted in accordance with subparagraph
        (B)(i)).
        (D) Automated reinvestigation system
          Any consumer reporting agency that compiles and maintains
        files on consumers on a nationwide basis shall implement an
        automated system through which furnishers of information to
        that consumer reporting agency may report the results of a
        reinvestigation that finds incomplete or inaccurate information
        in a consumer's file to other such consumer reporting agencies.
      (6) Notice of results of reinvestigation
        (A) In general
          A consumer reporting agency shall provide written notice to a
        consumer of the results of a reinvestigation under this
        subsection not later than 5 business days after the completion
        of the reinvestigation, by mail or, if authorized by the
        consumer for that purpose, by other means available to the
        agency.
        (B) Contents
          As part of, or in addition to, the notice under subparagraph
        (A), a consumer reporting agency shall provide to a consumer in
        writing before the expiration of the 5-day period referred to
        in subparagraph (A) - 
            (i) a statement that the reinvestigation is completed;
            (ii) a consumer report that is based upon the consumer's
          file as that file is revised as a result of the
          reinvestigation;
            (iii) a notice that, if requested by the consumer, a
          description of the procedure used to determine the accuracy
          and completeness of the information shall be provided to the
          consumer by the agency, including the business name and
          address of any furnisher of information contacted in
          connection with such information and the telephone number of
          such furnisher, if reasonably available;
            (iv) a notice that the consumer has the right to add a
          statement to the consumer's file disputing the accuracy or
          completeness of the information; and
            (v) a notice that the consumer has the right to request
          under subsection (d) of this section that the consumer
          reporting agency furnish notifications under that subsection.
      (7) Description of reinvestigation procedure
        A consumer reporting agency shall provide to a consumer a
      description referred to in paragraph (6)(B)(iii) by not later
      than 15 days after receiving a request from the consumer for that
      description.
      (8) Expedited dispute resolution
        If a dispute regarding an item of information in a consumer's
      file at a consumer reporting agency is resolved in accordance
      with paragraph (5)(A) by the deletion of the disputed information
      by not later than 3 business days after the date on which the
      agency receives notice of the dispute from the consumer in
      accordance with paragraph (1)(A), then the agency shall not be
      required to comply with paragraphs (2), (6), and (7) with respect
      to that dispute if the agency - 
          (A) provides prompt notice of the deletion to the consumer by
        telephone;
          (B) includes in that notice, or in a written notice that
        accompanies a confirmation and consumer report provided in
        accordance with subparagraph (C), a statement of the consumer's
        right to request under subsection (d) of this section that the
        agency furnish notifications under that subsection; and
          (C) provides written confirmation of the deletion and a copy
        of a consumer report on the consumer that is based on the
        consumer's file after the deletion, not later than 5 business
        days after making the deletion.
    (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.
    (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) of this section 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.
    (e) Treatment of complaints and report to Congress
      (1) In general
        The Commission shall - 
          (A) compile all complaints that it receives that a file of a
        consumer that is maintained by a consumer reporting agency
        described in section 1681a(p) of this title contains incomplete
        or inaccurate information, with respect to which, the consumer
        appears to have disputed the completeness or accuracy with the
        consumer reporting agency or otherwise utilized the procedures
        provided by subsection (a) of this section; and
          (B) transmit each such complaint to each consumer reporting
        agency involved.
      (2) Exclusion
        Complaints received or obtained by the Commission pursuant to
      its investigative authority under the Federal Trade Commission
      Act [15 U.S.C. 41 et seq.] shall not be subject to paragraph (1).
      (3) Agency responsibilities
        Each consumer reporting agency described in section 1681a(p) of
      this title that receives a complaint transmitted by the
      Commission pursuant to paragraph (1) shall - 
          (A) review each such complaint to determine whether all legal
        obligations imposed on the consumer reporting agency under this
        subchapter (including any obligation imposed by an applicable
        court or administrative order) have been met with respect to
        the subject matter of the complaint;
          (B) provide reports on a regular basis to the Commission
        regarding the determinations of and actions taken by the
        consumer reporting agency, if any, in connection with its
        review of such complaints; and
          (C) maintain, for a reasonable time period, records regarding
        the disposition of each such complaint that is sufficient to
        demonstrate compliance with this subsection.
      (4) Rulemaking authority
        The Commission may prescribe regulations, as appropriate to
      implement this subsection.
      (5) Annual report
        The Commission shall submit to the Committee on Banking,
      Housing, and Urban Affairs of the Senate and the Committee on
      Financial Services of the House of Representatives an annual
      report regarding information gathered by the Commission under
      this subsection.
    (f) Reinvestigation requirement applicable to resellers
      (1) Exemption from general reinvestigation requirement
        Except as provided in paragraph (2), a reseller shall be exempt
      from the requirements of this section.
      (2) Action required upon receiving notice of a dispute
        If a reseller receives a notice from a consumer of a dispute
      concerning the completeness or accuracy of any item of
      information contained in a consumer report on such consumer
      produced by the reseller, the reseller shall, within 5 business
      days of receiving the notice, and free of charge - 
          (A) determine whether the item of information is incomplete
        or inaccurate as a result of an act or omission of the
        reseller; and
          (B) if - 
            (i) the reseller determines that the item of information is
          incomplete or inaccurate as a result of an act or omission of
          the reseller, not later than 20 days after receiving the
          notice, correct the information in the consumer report or
          delete it; or
            (ii) if the reseller determines that the item of
          information is not incomplete or inaccurate as a result of an
          act or omission of the reseller, convey the notice of the
          dispute, together with all relevant information provided by
          the consumer, to each consumer reporting agency that provided
          the reseller with the information that is the subject of the
          dispute, using an address or a notification mechanism
          specified by the consumer reporting agency for such notices.
      (3) Responsibility of consumer reporting agency to notify
        consumer through reseller
        Upon the completion of a reinvestigation under this section of
      a dispute concerning the completeness or accuracy of any
      information in the file of a consumer by a consumer reporting
      agency that received notice of the dispute from a reseller under
      paragraph (2) - 
          (A) the notice by the consumer reporting agency under
        paragraph (6), (7), or (8) of subsection (a) of this section
        shall be provided to the reseller in lieu of the consumer; and
          (B) the reseller shall immediately reconvey such notice to
        the consumer, including any notice of a deletion by telephone
        in the manner required under paragraph (8)(A).
      (4) Reseller reinvestigations
        No provision of this subsection shall be construed as
      prohibiting a reseller from conducting a reinvestigation of a
      consumer dispute directly.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 611, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1132; amended Pub. L. 104-
    208, div. A, title II, Sec. 2409, Sept. 30, 1996, 110 Stat. 3009-
    439; Pub. L. 105-347, Sec. 6(5), Nov. 2, 1998, 112 Stat. 3211;
    Pub. L. 108-159, title III, Secs. 313(a), 314(a), 316, 317, Dec. 4,
    2003, 117 Stat. 1994-1996, 1998.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Trade Commission Act, referred to in subsec. (e)(2),
    is act Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended, which is
    classified generally to subchapter I (Sec. 41 et seq.) of chapter 2
    of this title. For complete classification of this Act to the Code,
    see section 58 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      2003 - Subsec. (a)(1)(A). Pub. L. 108-159, Sec. 317, substituted
    "shall, free of charge, conduct a reasonable reinvestigation to
    determine whether the disputed information is inaccurate" for
    "shall reinvestigate free of charge".
      Pub. L. 108-159, Sec. 316(a)(1), substituted "Subject to
    subsection (f) of this section, if the completeness" for "If the
    completeness" and inserted ", or indirectly through a reseller,"
    after "notifies the agency directly" and "or reseller" before
    period at end.
      Subsec. (a)(2)(A). Pub. L. 108-159, Sec. 316(a)(2), inserted "or
    a reseller" after "dispute from any consumer" and "or reseller"
    before period at end.
      Subsec. (a)(2)(B). Pub. L. 108-159, Sec. 316(c), struck out "from
    consumer" after "information" in heading.
      Pub. L. 108-159, Sec. 316(a)(3), inserted "or the reseller" after
    "from the consumer".
      Subsec. (a)(5)(A). Pub. L. 108-159, Sec. 314(a), substituted
    "shall - " and cls. (i) and (ii) for "shall promptly delete that
    item of information from the consumer's file or modify that item of
    information, as appropriate, based on the results of the
    reinvestigation."
      Subsec. (e). Pub. L. 108-159, Sec. 313(a), added subsec. (e).
      Subsec. (f). Pub. L. 108-159, Sec. 316(b), added subsec. (f).
      1998 - Subsec. (a)(7). Pub. L. 105-347 substituted "(6)(B)(iii)"
    for "(6)(B)(iv)".
      1996 - Subsec. (a). Pub. L. 104-208, Sec. 2409(a), inserted
    heading and amended text of subsec. (a) generally. Prior to
    amendment, text read as follows: "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."
      Subsec. (d). Pub. L. 104-208, Sec. 2409(b), struck out at end
    "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."

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-159 subject to joint regulations
    establishing effective dates as prescribed by Federal Reserve Board
    and Federal Trade Commission, except as otherwise provided, see
    section 3 of Pub. L. 108-159, set out as a note under section 1681
    of this title.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-347 deemed to have same effective date
    as amendments made by section 2403 of Pub. L. 104-208, see section
    7 of Pub. L. 105-347, set out as a note under section 1681a of this
    title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

           PROMPT INVESTIGATION OF DISPUTED CONSUMER INFORMATION       
      Pub. L. 108-159, title III, Sec. 313(b), Dec. 4, 2003, 117 Stat.
    1994, provided that:
      "(1) Study required. - The Board and the Commission shall jointly
    study the extent to which, and the manner in which, consumer
    reporting agencies and furnishers of consumer information to
    consumer reporting agencies are complying with the procedures, time
    lines, and requirements under the Fair Credit Reporting Act [this
    subchapter] for the prompt investigation of the disputed accuracy
    of any consumer information, the completeness of the information
    provided to consumer reporting agencies, and the prompt correction
    or deletion, in accordance with such Act, of any inaccurate or
    incomplete information or information that cannot be verified.
      "(2) Report required. - Before the end of the 12-month period
    beginning on the date of enactment of this Act [Dec. 4, 2003], the
    Board and the Commission shall jointly submit a progress report to
    the Congress on the results of the study required under paragraph
    (1).
      "(3) Considerations. - In preparing the report required under
    paragraph (2), the Board and the Commission shall consider
    information relating to complaints compiled by the Commission under
    section 611(e) of the Fair Credit Reporting Act [15 U.S.C.
    1681i(e)], as added by this section.
      "(4) Recommendations. - The report required under paragraph (2)
    shall include such recommendations as the Board and the Commission
    jointly determine to be appropriate for legislative or
    administrative action, to ensure that - 
        "(A) consumer disputes with consumer reporting agencies over
      the accuracy or completeness of information in a consumer's file
      are promptly and fully investigated and any incorrect,
      incomplete, or unverifiable information is corrected or deleted
      immediately thereafter;
        "(B) furnishers of information to consumer reporting agencies
      maintain full and prompt compliance with the duties and
      responsibilities established under section 623 of the Fair Credit
      Reporting Act [15 U.S.C. 1681s-2]; and
        "(C) consumer reporting agencies establish and maintain
      appropriate internal controls and management review procedures
      for maintaining full and continuous compliance with the
      procedures, time lines, and requirements under the Fair Credit
      Reporting Act [this subchapter] for the prompt investigation of
      the disputed accuracy of any consumer information and the prompt
      correction or deletion, in accordance with such Act, of any
      inaccurate or incomplete information or information that cannot
      be verified."
      [For definitions of terms used in section 313(b) of Pub. L. 108-
    159, set out above, see section 2 of Pub. L. 108-159, set out as a
    Definitions note under section 1681 of this title.]

-End-



-CITE-
    15 USC Sec. 1681j                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681j. Charges for certain disclosures

-STATUTE-
    (a) Free annual disclosure
      (1) Nationwide consumer reporting agencies
        (A) In general
          All consumer reporting agencies described in subsections (p)
        and (w) of section 1681a of this title shall make all
        disclosures pursuant to section 1681g of this title once during
        any 12-month period upon request of the consumer and without
        charge to the consumer.
        (B) Centralized source
          Subparagraph (A) shall apply with respect to a consumer
        reporting agency described in section 1681a(p) of this title
        only if the request from the consumer is made using the
        centralized source established for such purpose in accordance
        with section 211(c) (!1) of the Fair and Accurate Credit
        Transactions Act of 2003.

        (C) Nationwide specialty consumer reporting agency
          (i) In general
            The Commission shall prescribe regulations applicable to
          each consumer reporting agency described in section 1681a(w)
          of this title to require the establishment of a streamlined
          process for consumers to request consumer reports under
          subparagraph (A), which shall include, at a minimum, the
          establishment by each such agency of a toll-free telephone
          number for such requests.
          (ii) Considerations
            In prescribing regulations under clause (i), the Commission
          shall consider - 
              (I) the significant demands that may be placed on
            consumer reporting agencies in providing such consumer
            reports;
              (II) appropriate means to ensure that consumer reporting
            agencies can satisfactorily meet those demands, including
            the efficacy of a system of staggering the availability to
            consumers of such consumer reports; and
              (III) the ease by which consumers should be able to
            contact consumer reporting agencies with respect to access
            to such consumer reports.
          (iii) Date of issuance
            The Commission shall issue the regulations required by this
          subparagraph in final form not later than 6 months after
          December 4, 2003.
          (iv) Consideration of ability to comply
            The regulations of the Commission under this subparagraph
          shall establish an effective date by which each nationwide
          specialty consumer reporting agency (as defined in section
          1681a(w) of this title) shall be required to comply with
          subsection (a) of this section, which effective date - 
              (I) shall be established after consideration of the
            ability of each nationwide specialty consumer reporting
            agency to comply with subsection (a) of this section; and
              (II) shall be not later than 6 months after the date on
            which such regulations are issued in final form (or such
            additional period not to exceed 3 months, as the Commission
            determines appropriate).
      (2) Timing
        A consumer reporting agency shall provide a consumer report
      under paragraph (1) not later than 15 days after the date on
      which the request is received under paragraph (1).
      (3) Reinvestigations
        Notwithstanding the time periods specified in section
      1681i(a)(1) of this title, a reinvestigation under that section
      by a consumer reporting agency upon a request of a consumer that
      is made after receiving a consumer report under this subsection
      shall be completed not later than 45 days after the date on which
      the request is received.
      (4) Exception for first 12 months of operation
        This subsection shall not apply to a consumer reporting agency
      that has not been furnishing consumer reports to third parties on
      a continuing basis during the 12-month period preceding a request
      under paragraph (1), with respect to consumers residing
      nationwide.
    (b) Free disclosure after adverse notice to consumer
      Each consumer reporting agency that maintains a file on a
    consumer shall make all disclosures pursuant to section 1681g of
    this title without charge to the consumer if, not later than 60
    days after receipt by such consumer of a notification pursuant to
    section 1681m of this title, or of a notification from a debt
    collection agency affiliated with that consumer reporting agency
    stating that the consumer's credit rating may be or has been
    adversely affected, the consumer makes a request under section
    1681g of this title.
    (c) Free disclosure under certain other circumstances
      Upon the request of the consumer, a consumer reporting agency
    shall make all disclosures pursuant to section 1681g of this title
    once during any 12-month period without charge to that consumer if
    the consumer certifies in writing that the consumer - 
        (1) is unemployed and intends to apply for employment in the 60-
      day period beginning on the date on which the certification is
      made;
        (2) is a recipient of public welfare assistance; or
        (3) has reason to believe that the file on the consumer at the
      agency contains inaccurate information due to fraud.
    (d) Free disclosures in connection with fraud alerts
      Upon the request of a consumer, a consumer reporting agency
    described in section 1681a(p) of this title shall make all
    disclosures pursuant to section 1681g of this title without charge
    to the consumer, as provided in subsections (a)(2) and (b)(2) of
    section 1681c-1 of this title, as applicable.
    (e) Other charges prohibited
      A consumer reporting agency shall not impose any charge on a
    consumer for providing any notification required by this subchapter
    or making any disclosure required by this subchapter, except as
    authorized by subsection (f) of this section.
    (f) Reasonable charges allowed for certain disclosures
      (1) In general
        In the case of a request from a consumer other than a request
      that is covered by any of subsections (a) through (d) of this
      section, a consumer reporting agency may impose a reasonable
      charge on a consumer - 
          (A) for making a disclosure to the consumer pursuant to
        section 1681g of this title, which charge - 
            (i) shall not exceed $8; and
            (ii) shall be indicated to the consumer before making the
          disclosure; and

          (B) for furnishing, pursuant to section 1681i(d) of this
        title, following a reinvestigation under section 1681i(a) of
        this title, a statement, codification, or summary to a person
        designated by the consumer under that section after the 30-day
        period beginning on the date of notification of the consumer
        under paragraph (6) or (8) of section 1681i(a) of this title
        with respect to the reinvestigation, which charge - 
            (i) shall not exceed the charge that the agency would
          impose on each designated recipient for a consumer report;
          and
            (ii) shall be indicated to the consumer before furnishing
          such information.
      (2) Modification of amount
        The Federal Trade Commission shall increase the amount referred
      to in paragraph (1)(A)(i) on January 1 of each year, based
      proportionally on changes in the Consumer Price Index, with
      fractional changes rounded to the nearest fifty cents.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 612, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1132; amended Pub. L. 104-
    208, div. A, title II, Sec. 2410, Sept. 30, 1996, 110 Stat. 3009-
    442; Pub. L. 108-159, title II, Sec. 211(a), Dec. 4, 2003, 117
    Stat. 1968.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 211(c) of the Fair and Accurate Credit Transactions Act
    of 2003, referred to in subsec. (a)(1)(B), probably means section
    211(d) of Pub. L. 108-159, which is set out as a note below and
    relates to the establishment of a centralized source. Section
    211(c) of Pub. L. 108-159 amended section 1681g of this title.


-MISC1-
                                AMENDMENTS                            
      2003 - Subsec. (a). Pub. L. 108-159, Sec. 211(a)(2), added
    subsec. (a). Former subsec. (a) redesignated (f).
      Subsec. (d). Pub. L. 108-159, Sec. 211(a)(4), added subsec. (d).
    Former subsec. (d) redesignated (e).
      Subsec. (e). Pub. L. 108-159, Sec. 211(a)(3), (5), redesignated
    subsec. (d) as (e) and substituted "subsection (f)" for "subsection
    (a)".
      Subsec. (f). Pub. L. 108-159, Sec. 211(a)(1), (6), redesignated
    subsec. (a) as (f) and substituted "In the case of a request from a
    consumer other than a request that is covered by any of subsections
    (a) through (d) of this section, a" for "Except as provided in
    subsections (b), (c), and (d) of this section, a" in par. (1).
      1996 - Pub. L. 104-208 amended section generally. Prior to
    amendment, section read as follows: "A consumer reporting agency
    shall make all disclosures pursuant to section 1681g of this title
    and furnish all consumer reports pursuant to section 1681i(d) of
    this title without charge to the consumer if, within thirty days
    after receipt by such consumer of a notification pursuant to
    section 1681m of this title or notification from a debt collection
    agency affiliated with such consumer reporting agency stating that
    the consumer's credit rating may be or has been adversely affected,
    the consumer makes a request under section 1681g or 1681i(d) of
    this title. Otherwise, the consumer reporting agency may impose a
    reasonable charge on the consumer for making disclosure to such
    consumer pursuant to section 1681g of this title, 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 1681i(d) of this title, 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."

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-159 subject to joint regulations
    establishing effective dates as prescribed by Federal Reserve Board
    and Federal Trade Commission, except as otherwise provided, see
    section 3 of Pub. L. 108-159, set out as a note under section 1681
    of this title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

                                REGULATIONS                            
      Pub. L. 108-159, title II, Sec. 211(d), Dec. 4, 2003, 117 Stat.
    1972, provided that:
      "(1) In general. - The Commission shall prescribe regulations
    applicable to consumer reporting agencies described in section
    603(p) of the Fair Credit Reporting Act [15 U.S.C. 1681a(p)], to
    require the establishment of - 
        "(A) a centralized source through which consumers may obtain a
      consumer report from each such consumer reporting agency, using a
      single request, and without charge to the consumer, as provided
      in section 612(a) of the Fair Credit Reporting Act [15 U.S.C.
      1681j(a)] (as amended by this section); and
        "(B) a standardized form for a consumer to make such a request
      for a consumer report by mail or through an Internet website.
      "(2) Considerations. - In prescribing regulations under paragraph
    (1), the Commission shall consider - 
        "(A) the significant demands that may be placed on consumer
      reporting agencies in providing such consumer reports;
        "(B) appropriate means to ensure that consumer reporting
      agencies can satisfactorily meet those demands, including the
      efficacy of a system of staggering the availability to consumers
      of such consumer reports; and
        "(C) the ease by which consumers should be able to contact
      consumer reporting agencies with respect to access to such
      consumer reports.
      "(3) Centralized source. - The centralized source for a request
    for a consumer report from a consumer required by this subsection
    shall provide for - 
        "(A) a toll-free telephone number for such purpose;
        "(B) use of an Internet website for such purpose; and
        "(C) a process for requests by mail for such purpose.
      "(4) Transition. - The regulations of the Commission under
    paragraph (1) shall provide for an orderly transition by consumer
    reporting agencies described in section 603(p) of the Fair Credit
    Reporting Act [15 U.S.C. 1681a(p)] to the centralized source for
    consumer report distribution required by section 612(a)(1)(B) [15
    U.S.C. 1681j(a)(1)(B)], as amended by this section, in a manner
    that - 
        "(A) does not temporarily overwhelm such consumer reporting
      agencies with requests for disclosures of consumer reports beyond
      their capacity to deliver; and
        "(B) does not deny creditors, other users, and consumers access
      to consumer reports on a time-sensitive basis for specific
      purposes, such as home purchases or suspicions of identity theft,
      during the transition period.
      "(5) Timing. - Regulations required by this subsection shall - 
        "(A) be issued in final form not later than 6 months after the
      date of enactment of this Act [Dec. 4, 2003]; and
        "(B) become effective not later than 6 months after the date on
      which they are issued in final form.
      "(6) Scope of regulations. - 
        "(A) In general. - The Commission shall, by rule, determine
      whether to require a consumer reporting agency that compiles and
      maintains files on consumers on substantially a nationwide basis,
      other than one described in section 603(p) of the Fair Credit
      Reporting Act [15 U.S.C. 1681a(p)], to make free consumer reports
      available upon consumer request, and if so, whether such consumer
      reporting agencies should make such free reports available
      through the centralized source described in paragraph (1)(A).
        "(B) Considerations. - Before making any determination under
      subparagraph (A), the Commission shall consider - 
          "(i) the number of requests for consumer reports to, and the
        number of consumer reports generated by, the consumer reporting
        agency, in comparison with consumer reporting agencies
        described in subsections (p) and (w) of section 603 of the Fair
        Credit Reporting Act [15 U.S.C. 1681a(p), (w)];
          "(ii) the overall scope of the operations of the consumer
        reporting agency;
          "(iii) the needs of consumers for access to consumer reports
        provided by consumer reporting agencies free of charge;
          "(iv) the costs of providing access to consumer reports by
        consumer reporting agencies free of charge; and
          "(v) the effects on the ongoing competitive viability of such
        consumer reporting agencies if such free access is required."
      [For definitions of terms used in section 211(d) of Pub. L. 108-
    159, set out above, see section 2 of Pub. L. 108-159, set out as a
    Definitions note under section 1681 of this title.]

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    15 USC Sec. 1681k                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681k. Public record information for employment purposes

-STATUTE-
    (a) In general
      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
        (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.
    (b) Exemption for national security investigations
      Subsection (a) of this section does not apply in the case of an
    agency or department of the United States Government that seeks to
    obtain and use a consumer report for employment purposes, if the
    head of the agency or department makes a written finding as
    prescribed under section 1681b(b)(4)(A) of this title.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 613, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1133; amended Pub. L. 105-
    347, Sec. 4(b), Nov. 2, 1998, 112 Stat. 3210.)


-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-347 designated existing provisions as subsec.
    (a), inserted heading, and added subsec. (b).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-347 deemed to have same effective date
    as amendments made by section 2403 of Pub. L. 104-208, see section
    7 of Pub. L. 105-347, set out as a note under section 1681a of this
    title.

-End-



-CITE-
    15 USC Sec. 1681l                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681l. Restrictions on investigative consumer reports

-STATUTE-
      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.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 614, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1133.)

-End-



-CITE-
    15 USC Sec. 1681m                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681m. Requirements on users of consumer reports

-STATUTE-
    (a) Duties of users taking adverse actions on basis of information
      contained in consumer reports
      If any person takes any adverse action with respect to any
    consumer that is based in whole or in part on any information
    contained in a consumer report, the person shall - 
        (1) provide oral, written, or electronic notice of the adverse
      action to the consumer;
        (2) provide to the consumer orally, in writing, or
      electronically - 
          (A) the name, address, and telephone number of the consumer
        reporting agency (including a toll-free telephone number
        established by the agency if the agency compiles and maintains
        files on consumers on a nationwide basis) that furnished the
        report to the person; and
          (B) a statement that the consumer reporting agency did not
        make the decision to take the adverse action and is unable to
        provide the consumer the specific reasons why the adverse
        action was taken; and

        (3) provide to the consumer an oral, written, or electronic
      notice of the consumer's right - 
          (A) to obtain, under section 1681j of this title, a free copy
        of a consumer report on the consumer from the consumer
        reporting agency referred to in paragraph (2), which notice
        shall include an indication of the 60-day period under that
        section for obtaining such a copy; and
          (B) to dispute, under section 1681i of this title, with a
        consumer reporting agency the accuracy or completeness of any
        information in a consumer report furnished by the agency.
    (b) Adverse action based on information obtained from third parties
      other than consumer reporting agencies
      (1) In general
        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,(!1) 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.

      (2) Duties of person taking certain actions based on information
        provided by affiliate
        (A) Duties, generally
          If a person takes an action described in subparagraph (B)
        with respect to a consumer, based in whole or in part on
        information described in subparagraph (C), the person shall - 
            (i) notify the consumer of the action, including a
          statement that the consumer may obtain the information in
          accordance with clause (ii); and
            (ii) upon a written request from the consumer received
          within 60 days after transmittal of the notice required by
          clause (i), disclose to the consumer the nature of the
          information upon which the action is based by not later than
          30 days after receipt of the request.
        (B) Action described
          An action referred to in subparagraph (A) is an adverse
        action described in section 1681a(k)(1)(A) of this title, taken
        in connection with a transaction initiated by the consumer, or
        any adverse action described in clause (i) or (ii) of section
        1681a(k)(1)(B) of this title.
        (C) Information described
          Information referred to in subparagraph (A) - 
            (i) except as provided in clause (ii), is information that -
           
              (I) is furnished to the person taking the action by a
            person related by common ownership or affiliated by common
            corporate control to the person taking the action; and
              (II) bears on the credit worthiness,(!1) credit standing,
            credit capacity, character, general reputation, personal
            characteristics, or mode of living of the consumer; and

            (ii) does not include - 
              (I) information solely as to transactions or experiences
            between the consumer and the person furnishing the
            information; or
              (II) information in a consumer report.
    (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 this section.
    (d) Duties of users making written credit or insurance
      solicitations on basis of information contained in consumer files
      (1) In general
        Any person who uses a consumer report on any consumer in
      connection with any credit or insurance transaction that is not
      initiated by the consumer, that is provided to that person under
      section 1681b(c)(1)(B) of this title, shall provide with each
      written solicitation made to the consumer regarding the
      transaction a clear and conspicuous statement that - 
          (A) information contained in the consumer's consumer report
        was used in connection with the transaction;
          (B) the consumer received the offer of credit or insurance
        because the consumer satisfied the criteria for credit
        worthiness (!2) or insurability under which the consumer was
        selected for the offer;

          (C) if applicable, the credit or insurance may not be
        extended if, after the consumer responds to the offer, the
        consumer does not meet the criteria used to select the consumer
        for the offer or any applicable criteria bearing on credit
        worthiness (!2) or insurability or does not furnish any
        required collateral;
          (D) the consumer has a right to prohibit information
        contained in the consumer's file with any consumer reporting
        agency from being used in connection with any credit or
        insurance transaction that is not initiated by the consumer;
        and
          (E) the consumer may exercise the right referred to in
        subparagraph (D) by notifying a notification system established
        under section 1681b(e) of this title.
      (2) Disclosure of address and telephone number; format
        A statement under paragraph (1) shall - 
          (A) include the address and toll-free telephone number of the
        appropriate notification system established under section
        1681b(e) of this title; and
          (B) be presented in such format and in such type size and
        manner as to be simple and easy to understand, as established
        by the Commission, by rule, in consultation with the Federal
        banking agencies and the National Credit Union Administration.
      (3) Maintaining criteria on file
        A person who makes an offer of credit or insurance to a
      consumer under a credit or insurance transaction described in
      paragraph (1) shall maintain on file the criteria used to select
      the consumer to receive the offer, all criteria bearing on credit
      worthiness (!2) or insurability, as applicable, that are the
      basis for determining whether or not to extend credit or
      insurance pursuant to the offer, and any requirement for the
      furnishing of collateral as a condition of the extension of
      credit or insurance, until the expiration of the 3-year period
      beginning on the date on which the offer is made to the consumer.
      (4) Authority of Federal agencies regarding unfair or deceptive
        acts or practices not affected
        This section is not intended to affect the authority of any
      Federal or State agency to enforce a prohibition against unfair
      or deceptive acts or practices, including the making of false or
      misleading statements in connection with a credit or insurance
      transaction that is not initiated by the consumer.
    (e) Red flag guidelines and regulations required
      (1) Guidelines
        The Federal banking agencies, the National Credit Union
      Administration, and the Commission shall jointly, with respect to
      the entities that are subject to their respective enforcement
      authority under section 1681s of this title - 
          (A) establish and maintain guidelines for use by each
        financial institution and each creditor regarding identity
        theft with respect to account holders at, or customers of, such
        entities, and update such guidelines as often as necessary;
          (B) prescribe regulations requiring each financial
        institution and each creditor to establish reasonable policies
        and procedures for implementing the guidelines established
        pursuant to subparagraph (A), to identify possible risks to
        account holders or customers or to the safety and soundness of
        the institution or customers; and
          (C) prescribe regulations applicable to card issuers to
        ensure that, if a card issuer receives notification of a change
        of address for an existing account, and within a short period
        of time (during at least the first 30 days after such
        notification is received) receives a request for an additional
        or replacement card for the same account, the card issuer may
        not issue the additional or replacement card, unless the card
        issuer, in accordance with reasonable policies and procedures -
        
            (i) notifies the cardholder of the request at the former
          address of the cardholder and provides to the cardholder a
          means of promptly reporting incorrect address changes;
            (ii) notifies the cardholder of the request by such other
          means of communication as the cardholder and the card issuer
          previously agreed to; or
            (iii) uses other means of assessing the validity of the
          change of address, in accordance with reasonable policies and
          procedures established by the card issuer in accordance with
          the regulations prescribed under subparagraph (B).
      (2) Criteria
        (A) In general
          In developing the guidelines required by paragraph (1)(A),
        the agencies described in paragraph (1) shall identify
        patterns, practices, and specific forms of activity that
        indicate the possible existence of identity theft.
        (B) Inactive accounts
          In developing the guidelines required by paragraph (1)(A),
        the agencies described in paragraph (1) shall consider
        including reasonable guidelines providing that when a
        transaction occurs with respect to a credit or deposit account
        that has been inactive for more than 2 years, the creditor or
        financial institution shall follow reasonable policies and
        procedures that provide for notice to be given to a consumer in
        a manner reasonably designed to reduce the likelihood of
        identity theft with respect to such account.
      (3) Consistency with verification requirements
        Guidelines established pursuant to paragraph (1) shall not be
      inconsistent with the policies and procedures required under
      section 5318(l) of title 31.
    (f) Prohibition on sale or transfer of debt caused by identity
      theft
      (1) In general
        No person shall sell, transfer for consideration, or place for
      collection a debt that such person has been notified under
      section 1681c-2 of this title has resulted from identity theft.
      (2) Applicability
        The prohibitions of this subsection shall apply to all persons
      collecting a debt described in paragraph (1) after the date of a
      notification under paragraph (1).
      (3) Rule of construction
        Nothing in this subsection shall be construed to prohibit - 
          (A) the repurchase of a debt in any case in which the
        assignee of the debt requires such repurchase because the debt
        has resulted from identity theft;
          (B) the securitization of a debt or the pledging of a
        portfolio of debt as collateral in connection with a borrowing;
        or
          (C) the transfer of debt as a result of a merger,
        acquisition, purchase and assumption transaction, or transfer
        of substantially all of the assets of an entity.
    (g) Debt collector communications concerning identity theft
      If a person acting as a debt collector (as that term is defined
    in subchapter V of this chapter) on behalf of a third party that is
    a creditor or other user of a consumer report is notified that any
    information relating to a debt that the person is attempting to
    collect may be fraudulent or may be the result of identity theft,
    that person shall - 
        (1) notify the third party that the information may be
      fraudulent or may be the result of identity theft; and
        (2) upon request of the consumer to whom the debt purportedly
      relates, provide to the consumer all information to which the
      consumer would otherwise be entitled if the consumer were not a
      victim of identity theft, but wished to dispute the debt under
      provisions of law applicable to that person.
    (h) Duties of users in certain credit transactions
      (1) In general
        Subject to rules prescribed as provided in paragraph (6), if
      any person uses a consumer report in connection with an
      application for, or a grant, extension, or other provision of,
      credit on material terms that are materially less favorable than
      the most favorable terms available to a substantial proportion of
      consumers from or through that person, based in whole or in part
      on a consumer report, the person shall provide an oral, written,
      or electronic notice to the consumer in the form and manner
      required by regulations prescribed in accordance with this
      subsection.
      (2) Timing
        The notice required under paragraph (1) may be provided at the
      time of an application for, or a grant, extension, or other
      provision of, credit or the time of communication of an approval
      of an application for, or grant, extension, or other provision
      of, credit, except as provided in the regulations prescribed
      under paragraph (6).
      (3) Exceptions
        No notice shall be required from a person under this subsection
      if - 
          (A) the consumer applied for specific material terms and was
        granted those terms, unless those terms were initially
        specified by the person after the transaction was initiated by
        the consumer and after the person obtained a consumer report;
        or
          (B) the person has provided or will provide a notice to the
        consumer under subsection (a) of this section in connection
        with the transaction.
      (4) Other notice not sufficient
        A person that is required to provide a notice under subsection
      (a) of this section cannot meet that requirement by providing a
      notice under this subsection.
      (5) Content and delivery of notice
        A notice under this subsection shall, at a minimum - 
          (A) include a statement informing the consumer that the terms
        offered to the consumer are set based on information from a
        consumer report;
          (B) identify the consumer reporting agency furnishing the
        report;
          (C) include a statement informing the consumer that the
        consumer may obtain a copy of a consumer report from that
        consumer reporting agency without charge; and
          (D) include the contact information specified by that
        consumer reporting agency for obtaining such consumer reports
        (including a toll-free telephone number established by the
        agency in the case of a consumer reporting agency described in
        section 1681a(p) of this title).
      (6) Rulemaking
        (A) Rules required
          The Commission and the Board shall jointly prescribe rules.
        (B) Content
          Rules required by subparagraph (A) shall address, but are not
        limited to - 
            (i) the form, content, time, and manner of delivery of any
          notice under this subsection;
            (ii) clarification of the meaning of terms used in this
          subsection, including what credit terms are material, and
          when credit terms are materially less favorable;
            (iii) exceptions to the notice requirement under this
          subsection for classes of persons or transactions regarding
          which the agencies determine that notice would not
          significantly benefit consumers;
            (iv) a model notice that may be used to comply with this
          subsection; and
            (v) the timing of the notice required under paragraph (1),
          including the circumstances under which the notice must be
          provided after the terms offered to the consumer were set
          based on information from a consumer report.
      (7) Compliance
        A person shall not be liable for failure to perform the duties
      required by this section if, at the time of the failure, the
      person maintained reasonable policies and procedures to comply
      with this section.
      (8) Enforcement
        (A) No civil actions
          Sections 1681n and 1681o of this title shall not apply to any
        failure by any person to comply with this section.
        (B) Administrative enforcement
          This section shall be enforced exclusively under section
        1681s of this title by the Federal agencies and officials
        identified in that section.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 615, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1133; amended Pub. L. 104-
    208, div. A, title II, Sec. 2411, Sept. 30, 1996, 110 Stat. 3009-
    443; Pub. L. 108-159, title I, Secs. 114, 154(b), 155, title II,
    Sec. 213(a), title III, Sec. 311(a), title VIII, Sec. 811(h), Dec.
    4, 2003, 117 Stat. 1960, 1967, 1978, 1988, 2012.)


-MISC1-
                                AMENDMENTS                            
      2003 - Subsec. (d)(2). Pub. L. 108-159, Sec. 213(a), amended
    heading and text of par. (2) generally. Prior to amendment, text
    read as follows: "A statement under paragraph (1) shall include the
    address and toll-free telephone number of the appropriate
    notification system established under section 1681b(e) of this
    title."
      Subsec. (e). Pub. L. 108-159, Sec. 811(h), repealed Pub. L. 104-
    208, Sec. 2411(c). See 1996 Amendment note below.
      Pub. L. 108-159, Sec. 114, added subsec. (e) and struck out
    former subsec. (e) designation that had been added with no heading
    or text by Pub. L. 104-208, Sec. 2411(c). See note above and 1996
    Amendment note below.
      Subsec. (f). Pub. L. 108-159, Sec. 154(b), added subsec. (f).
      Subsec. (g). Pub. L. 108-159, Sec. 155, added subsec. (g).
      Subsec. (h). Pub. L. 108-159, Sec. 311(a), added subsec. (h).
      1996 - Subsec. (a). Pub. L. 104-208, Sec. 2411(a), inserted
    heading and amended text of subsec. (a) generally. Prior to
    amendment, text read as follows: "Whenever credit or insurance for
    personal, family, or household purposes, or employment involving a
    consumer is denied or the charge for such credit or insurance is
    increased either wholly or partly because of information contained
    in a consumer report from a consumer reporting agency, the user of
    the consumer report shall so advise the consumer against whom such
    adverse action has been taken and supply the name and address of
    the consumer reporting agency making the report."
      Subsec. (b). Pub. L. 104-208, Sec. 2411(e), inserted subsec.
    heading, designated existing provisions as par. (1) and inserted
    heading, and added par. (2).
      Subsec. (c). Pub. L. 104-208, Sec. 2411(d), substituted "this
    section" for "subsections (a) and (b) of this section".
      Subsec. (d). Pub. L. 104-208, Sec. 2411(b), added subsec. (d).
      Subsec. (e). Pub. L. 104-208, Sec. 2411(c), which added subsec.
    (e) containing subsec. designation, but no heading or text, was
    repealed by Pub. L. 108-159, Sec. 811(h).

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-159 subject to joint regulations
    establishing effective dates as prescribed by Federal Reserve Board
    and Federal Trade Commission, except as otherwise provided, see
    section 3 of Pub. L. 108-159, set out as a note under section 1681
    of this title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

                                REGULATIONS                            
      Pub. L. 108-159, title II, Sec. 213(b), Dec. 4, 2003, 117 Stat.
    1979, provided that: "Regulations required by section 615(d)(2) of
    the Fair Credit Reporting Act [15 U.S.C. 1681m(d)(2)], as amended
    by this section, shall be issued in final form not later than 1
    year after the date of enactment of this Act [Dec. 4, 2003]."

-FOOTNOTE-
    (!1) So in original. Probably should be "creditworthiness,".

    (!2) So in original. Probably should be "creditworthiness".


-End-



-CITE-
    15 USC Sec. 1681n                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681n. Civil liability for willful noncompliance

-STATUTE-
    (a) In general
      Any person who willfully fails to comply with any requirement
    imposed under this subchapter with respect to any consumer is
    liable to that consumer in an amount equal to the sum of - 
        (1)(A) any actual damages sustained by the consumer as a result
      of the failure or damages of not less than $100 and not more than
      $1,000; or
        (B) in the case of liability of a natural person for obtaining
      a consumer report under false pretenses or knowingly without a
      permissible purpose, actual damages sustained by the consumer as
      a result of the failure or $1,000, whichever is greater;
        (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.
    (b) Civil liability for knowing noncompliance
      Any person who obtains a consumer report from a consumer
    reporting agency under false pretenses or knowingly without a
    permissible purpose shall be liable to the consumer reporting
    agency for actual damages sustained by the consumer reporting
    agency or $1,000, whichever is greater.
    (c) Attorney's fees
      Upon a finding by the court that an unsuccessful pleading,
    motion, or other paper filed in connection with an action under
    this section was filed in bad faith or for purposes of harassment,
    the court shall award to the prevailing party attorney's fees
    reasonable in relation to the work expended in responding to the
    pleading, motion, or other paper.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 616, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1134; amended Pub. L. 104-
    208, div. A, title II, Sec. 2412(a)-(c), (e)(1), Sept. 30, 1996,
    110 Stat. 3009-446.)


-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (a). Pub. L. 104-208, Sec. 2412(a), designated
    existing provisions as subsec. (a), inserted heading, and in
    introductory provisions substituted "Any person who" for "Any
    consumer reporting agency or user of information which".
      Subsec. (a)(1). Pub. L. 104-208, Sec. 2412(b), amended par. (1)
    generally. Prior to amendment, par. (1) read as follows: "any
    actual damages sustained by the consumer as a result of the
    failure;".
      Subsec. (b). Pub. L. 104-208, Sec. 2412(c), added subsec. (b).
      Subsec. (c). Pub. L. 104-208, Sec. 2412(e)(1), added subsec. (c).

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

                               CONSTRUCTION                           
      Pub. L. 108-159, title III, Sec. 312(f), Dec. 4, 2003, 117 Stat.
    1993, provided that: "Nothing in this section, the amendments made
    by this section, or any other provision of this Act [see Short
    Title of 2003 Amendment note set out under section 1601 of this
    title] shall be construed to affect any liability under section 616
    or 617 of the Fair Credit Reporting Act (15 U.S.C. 1681n, 1681o)
    that existed on the day before the date of enactment of this Act
    [Dec. 4, 2003]."

-End-



-CITE-
    15 USC Sec. 1681o                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681o. Civil liability for negligent noncompliance

-STATUTE-
    (a) In general
      Any person who is negligent in failing to comply with any
    requirement imposed under this subchapter 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; and
        (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.
    (b) Attorney's fees
      On a finding by the court that an unsuccessful pleading, motion,
    or other paper filed in connection with an action under this
    section was filed in bad faith or for purposes of harassment, the
    court shall award to the prevailing party attorney's fees
    reasonable in relation to the work expended in responding to the
    pleading, motion, or other paper.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 617, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1134; amended Pub. L. 104-
    208, div. A, title II, Sec. 2412(d), (e)(2), Sept. 30, 1996, 110
    Stat. 3009-446, 3009-447; Pub. L. 108-159, title VIII, Sec. 811(e),
    Dec. 4, 2003, 117 Stat. 2012.)


-MISC1-
                                AMENDMENTS                            
      2003 - Subsec. (a)(1). Pub. L. 108-159 inserted "and" after
    semicolon at end.
      1996 - Subsec. (a). Pub. L. 104-208, Sec. 2412(d), designated
    existing provisions as subsec. (a), inserted heading, and
    substituted "Any person who" for "Any consumer reporting agency or
    user of information which".
      Subsec. (b). Pub. L. 104-208, Sec. 2412(e)(2), added subsec. (b).

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-159 subject to joint regulations
    establishing effective dates as prescribed by Federal Reserve Board
    and Federal Trade Commission, except as otherwise provided, see
    section 3 of Pub. L. 108-159, set out as a note under section 1681
    of this title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

-End-



-CITE-
    15 USC Sec. 1681p                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681p. Jurisdiction of courts; limitation of actions

-STATUTE-
      An action to enforce any liability created under this subchapter
    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, not later than the earlier of - 
        (1) 2 years after the date of discovery by the plaintiff of the
      violation that is the basis for such liability; or
        (2) 5 years after the date on which the violation that is the
      basis for such liability occurs.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 618, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1134; amended Pub. L. 108-
    159, title I, Sec. 156, Dec. 4, 2003, 117 Stat. 1968.)


-MISC1-
                                AMENDMENTS                            
      2003 - Pub. L. 108-159 reenacted section catchline without change
    and amended text generally. Prior to amendment, text read as
    follows: "An action to enforce any liability created under this
    subchapter 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 subchapter 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 subchapter,
    the action may be brought at any time within two years after
    discovery by the individual of the misrepresentation."

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-159 subject to joint regulations
    establishing effective dates as prescribed by Federal Reserve Board
    and Federal Trade Commission, except as otherwise provided, see
    section 3 of Pub. L. 108-159, set out as a note under section 1681
    of this title.

-End-



-CITE-
    15 USC Sec. 1681q                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681q. Obtaining information under false pretenses

-STATUTE-
      Any person who knowingly and willfully obtains information on a
    consumer from a consumer reporting agency under false pretenses
    shall be fined under title 18, imprisoned for not more than 2
    years, or both.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 619, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1134; amended Pub. L. 104-
    208, div. A, title II, Sec. 2415(a), Sept. 30, 1996, 110 Stat.
    3009-450.)


-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-208 substituted "fined under title 18,
    imprisoned for not more than 2 years, or both" for "fined not more
    than $5,000 or imprisoned not more than one year, or both".

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

-End-



-CITE-
    15 USC Sec. 1681r                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681r. Unauthorized disclosures by officers or employees

-STATUTE-
      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 under title 18, imprisoned
    for not more than 2 years, or both.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 620, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1134; amended Pub. L. 104-
    208, div. A, title II, Sec. 2415(b), Sept. 30, 1996, 110 Stat.
    3009-450.)


-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-208 substituted "fined under title 18,
    imprisoned for not more than 2 years, or both" for "fined not more
    than $5,000 or imprisoned not more than one year, or both".

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

-End-



-CITE-
    15 USC Sec. 1681s                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681s. Administrative enforcement

-STATUTE-
    (a) Enforcement by Federal Trade Commission
      (1) Compliance with the requirements imposed under this
    subchapter shall be enforced under the Federal Trade Commission Act
    [15 U.S.C. 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 subchapter is specifically committed to some
    other government agency under subsection (b) hereof. For the
    purpose of the exercise by the Federal Trade Commission of its
    functions and powers under the Federal Trade Commission Act, a
    violation of any requirement or prohibition imposed under this
    subchapter shall constitute an unfair or deceptive act or practice
    in commerce in violation of section 5(a) of the Federal Trade
    Commission Act [15 U.S.C. 45(a)] and shall be subject to
    enforcement by the Federal Trade Commission under section 5(b)
    thereof [15 U.S.C. 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. 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 subchapter and to require the filing of reports, the
    production of documents, and the appearance of witnesses as though
    the applicable terms and conditions of the Federal Trade Commission
    Act were part of this subchapter. Any person violating any of the
    provisions of this subchapter shall be subject to the penalties and
    entitled to the privileges and immunities provided in the Federal
    Trade Commission Act as though the applicable terms and provisions
    thereof were part of this subchapter.
      (2)(A) In the event of a knowing violation, which constitutes a
    pattern or practice of violations of this subchapter, the
    Commission may commence a civil action to recover a civil penalty
    in a district court of the United States against any person that
    violates this subchapter. In such action, such person shall be
    liable for a civil penalty of not more than $2,500 per violation.
      (B) In determining the amount of a civil penalty under
    subparagraph (A), the court shall take into account the degree of
    culpability, any history of prior such conduct, ability to pay,
    effect on ability to continue to do business, and such other
    matters as justice may require.
      (3) Notwithstanding paragraph (2), a court may not impose any
    civil penalty on a person for a violation of section 1681s-2(a)(1)
    of this title unless the person has been enjoined from committing
    the violation, or ordered not to commit the violation, in an action
    or proceeding brought by or on behalf of the Federal Trade
    Commission, and has violated the injunction or order, and the court
    may not impose any civil penalty for any violation occurring before
    the date of the violation of the injunction or order.
    (b) Enforcement by other agencies
      Compliance with the requirements imposed under this subchapter
    with respect to consumer reporting agencies, persons who use
    consumer reports from such agencies, persons who furnish
    information to such agencies, and users of information that are
    subject to subsection (d) of section 1681m of this title shall be
    enforced under - 
        (1) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
      1818], in the case of - 
          (A) national banks, and Federal branches and Federal agencies
        of foreign banks, by the Office of the Comptroller of the
        Currency;
          (B) member banks of the Federal Reserve System (other than
        national banks), branches and agencies of foreign banks (other
        than Federal branches, Federal agencies, and insured State
        branches of foreign banks), commercial lending companies owned
        or controlled by foreign banks, and organizations operating
        under section 25 or 25A of the Federal Reserve Act [12 U.S.C.
        601 et seq., 611 et seq.], by the Board of Governors of the
        Federal Reserve System; and
          (C) banks insured by the Federal Deposit Insurance
        Corporation (other than members of the Federal Reserve System)
        and insured State branches of foreign banks, by the Board of
        Directors of the Federal Deposit Insurance Corporation;

        (2) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
      1818], by the Director of the Office of Thrift Supervision, in
      the case of a savings association the deposits of which are
      insured by the Federal Deposit Insurance Corporation;
        (3) the Federal Credit Union Act [12 U.S.C. 1751 et seq.], by
      the Administrator of the National Credit Union Administration
      with respect to any Federal credit union;
        (4) subtitle IV of title 49, by the Secretary of
      Transportation, with respect to all carriers subject to the
      jurisdiction of the Surface Transportation Board;
        (5) part A of subtitle VII of title 49, by the Secretary of
      Transportation with respect to any air carrier or foreign air
      carrier subject to that part; and
        (6) the Packers and Stockyards Act, 1921 [7 U.S.C. 181 et seq.]
      (except as provided in section 406 of that Act [7 U.S.C. 226,
      227]), by the Secretary of Agriculture with respect to any
      activities subject to that Act.

    The terms used in paragraph (1) that are not defined in this
    subchapter or otherwise defined in section 3(s) of the Federal
    Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning
    given to them in section 1(b) of the International Banking Act of
    1978 (12 U.S.C. 3101).
    (c) State action for violations
      (1) Authority of States
        In addition to such other remedies as are provided under State
      law, if the chief law enforcement officer of a State, or an
      official or agency designated by a State, has reason to believe
      that any person has violated or is violating this subchapter, the
      State - 
          (A) may bring an action to enjoin such violation in any
        appropriate United States district court or in any other court
        of competent jurisdiction;
          (B) subject to paragraph (5), may bring an action on behalf
        of the residents of the State to recover - 
            (i) damages for which the person is liable to such
          residents under sections 1681n and 1681o of this title as a
          result of the violation;
            (ii) in the case of a violation described in any of
          paragraphs (1) through (3) of section 1681s-2(c) of this
          title, damages for which the person would, but for section
          1681s-2(c) of this title, be liable to such residents as a
          result of the violation; or
            (iii) damages of not more than $1,000 for each willful or
          negligent violation; and

          (C) in the case of any successful action under subparagraph
        (A) or (B), shall be awarded the costs of the action and
        reasonable attorney fees as determined by the court.
      (2) Rights of Federal regulators
        The State shall serve prior written notice of any action under
      paragraph (1) upon the Federal Trade Commission or the
      appropriate Federal regulator determined under subsection (b) of
      this section and provide the Commission or appropriate Federal
      regulator with a copy of its complaint, except in any case in
      which such prior notice is not feasible, in which case the State
      shall serve such notice immediately upon instituting such action.
      The Federal Trade Commission or appropriate Federal regulator
      shall have the right - 
          (A) to intervene in the action;
          (B) upon so intervening, to be heard on all matters arising
        therein;
          (C) to remove the action to the appropriate United States
        district court; and
          (D) to file petitions for appeal.
      (3) Investigatory powers
        For purposes of bringing any action under this subsection,
      nothing in this subsection shall prevent the chief law
      enforcement officer, or an official or agency designated by a
      State, from exercising the powers conferred on the chief law
      enforcement officer or such official by the laws of such State to
      conduct investigations or to administer oaths or affirmations or
      to compel the attendance of witnesses or the production of
      documentary and other evidence.
      (4) Limitation on State action while Federal action pending
        If the Federal Trade Commission or the appropriate Federal
      regulator has instituted a civil action or an administrative
      action under section 8 of the Federal Deposit Insurance Act [12
      U.S.C. 1818] for a violation of this subchapter, no State may,
      during the pendency of such action, bring an action under this
      section against any defendant named in the complaint of the
      Commission or the appropriate Federal regulator for any violation
      of this subchapter that is alleged in that complaint.
      (5) Limitations on State actions for certain violations
        (A) Violation of injunction required
          A State may not bring an action against a person under
        paragraph (1)(B) for a violation described in any of paragraphs
        (1) through (3) of section 1681s-2(c) of this title, unless - 
            (i) the person has been enjoined from committing the
          violation, in an action brought by the State under paragraph
          (1)(A); and
            (ii) the person has violated the injunction.
        (B) Limitation on damages recoverable
          In an action against a person under paragraph (1)(B) for a
        violation described in any of paragraphs (1) through (3) of
        section 1681s-2(c) of this title, a State may not recover any
        damages incurred before the date of the violation of an
        injunction on which the action is based.
    (d) Enforcement under other authority
      For the purpose of the exercise by any agency referred to in
    subsection (b) of this section of its powers under any Act referred
    to in that subsection, a violation of any requirement imposed under
    this subchapter 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) of this
    section, each of the agencies referred to in that subsection may
    exercise, for the purpose of enforcing compliance with any
    requirement imposed under this subchapter any other authority
    conferred on it by law.
    (e) Regulatory authority
      (1) The Federal banking agencies referred to in paragraphs (1)
    and (2) of subsection (b) of this section shall jointly prescribe
    such regulations as necessary to carry out the purposes of this
    subchapter with respect to any persons identified under paragraphs
    (1) and (2) of subsection (b) of this section, and the Board of
    Governors of the Federal Reserve System shall have authority to
    prescribe regulations consistent with such joint regulations with
    respect to bank holding companies and affiliates (other than
    depository institutions and consumer reporting agencies) of such
    holding companies.
      (2) The Board of the National Credit Union Administration shall
    prescribe such regulations as necessary to carry out the purposes
    of this subchapter with respect to any persons identified under
    paragraph (3) of subsection (b) of this section.
    (f) Coordination of consumer complaint investigations
      (1) In general
        Each consumer reporting agency described in section 1681a(p) of
      this title shall develop and maintain procedures for the referral
      to each other such agency of any consumer complaint received by
      the agency alleging identity theft, or requesting a fraud alert
      under section 1681c-1 of this title or a block under section
      1681c-2 of this title.
      (2) Model form and procedure for reporting identity theft
        The Commission, in consultation with the Federal banking
      agencies and the National Credit Union Administration, shall
      develop a model form and model procedures to be used by consumers
      who are victims of identity theft for contacting and informing
      creditors and consumer reporting agencies of the fraud.
      (3) Annual summary reports
        Each consumer reporting agency described in section 1681a(p) of
      this title shall submit an annual summary report to the
      Commission on consumer complaints received by the agency on
      identity theft or fraud alerts.
    (g) FTC regulation of coding of trade names
      If the Commission determines that a person described in paragraph
    (9) of section 1681s-2(a) of this title has not met the
    requirements of such paragraph, the Commission shall take action to
    ensure the person's compliance with such paragraph, which may
    include issuing model guidance or prescribing reasonable policies
    and procedures, as necessary to ensure that such person complies
    with such paragraph.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 621, as added Pub. L. 91-508, title
    VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1134; amended Pub. L. 98-443,
    Sec. 9(n), Oct. 4, 1984, 98 Stat. 1708; Pub. L. 101-73, title VII,
    Sec. 744(l), Aug. 9, 1989, 103 Stat. 439; Pub. L. 102-242, title
    II, Sec. 212(c), Dec. 19, 1991, 105 Stat. 2300; Pub. L. 102-550,
    title XVI, Sec. 1604(a)(6), Oct. 28, 1992, 106 Stat. 4082; Pub. L.
    104-88, title III, Sec. 314, Dec. 29, 1995, 109 Stat. 948; Pub. L.
    104-208, div. A, title II, Secs. 2416-2418, Sept. 30, 1996, 110
    Stat. 3009-450 to 3009-452; Pub. L. 105-347, Sec. 6(6), Nov. 2,
    1998, 112 Stat. 3211; Pub. L. 106-102, title V, Sec. 506(a), (b),
    Nov. 12, 1999, 113 Stat. 1441, 1442; Pub. L. 108-159, title I, Sec.
    153, title III, Sec. 312(e)(2), title IV, Sec. 412(e), title VIII,
    Sec. 811(f), Dec. 4, 2003, 117 Stat. 1966, 1993, 2003, 2012.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Trade Commission Act, referred to in subsec. (a), is
    act Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended, which is
    classified generally to subchapter I (Sec. 41 et seq.) of chapter 2
    of this title. For complete classification of this Act to the Code,
    see section 58 of this title and Tables.
      Sections 25 and 25A of the Federal Reserve Act, referred to in
    subsec. (b)(1)(B), are classified to subchapters I (Sec. 601 et
    seq.) and II (Sec. 611 et seq.), respectively, of chapter 6 of
    Title 12, Banks and Banking.
      The Federal Credit Union Act, referred to in subsec. (b)(3), is
    act June 26, 1934, ch. 750, 48 Stat. 1216, as amended, which is
    classified generally to chapter 14 (Sec. 1751 et seq.) of Title 12.
    For complete classification of this Act to the Code, see section
    1751 of Title 12 and Tables.
      The Packers and Stockyards Act, 1921, referred to in subsec.
    (b)(6), is act Aug. 15, 1921, ch. 64, 42 Stat. 159, as amended,
    which is classified to chapter 9 (Sec. 181 et seq.) of Title 7,
    Agriculture. For complete classification of this Act to the Code,
    see section 181 of Title 7 and Tables.
      This subchapter, referred to in subsec. (e), was in the original,
    "this Act" and was translated as reading "this title", meaning
    title VI of Pub. L. 90-321, known as the Fair Credit Reporting Act,
    to reflect the probable intent of Congress.

-COD-
                               CODIFICATION                           
      In subsec. (b)(4), "subtitle IV of title 49" substituted for "the
    Acts to regulate commerce" on authority of Pub. L. 95-473, Sec.
    3(b), Oct. 17, 1978, 92 Stat. 1466, the first section of which
    enacted subtitle IV of Title 49, Transportation.
      In subsec. (b)(5), "part A of subtitle VII of title 49"
    substituted for "the Federal Aviation Act of 1958 [49 App. U.S.C.
    1301 et seq.]" and "that part" substituted for "that Act" on
    authority of Pub. L. 103-272, Sec. 6(b), July 5, 1994, 108 Stat.
    1378, the first section of which enacted subtitles II, III, and V
    to X of Title 49.


-MISC1-
                                AMENDMENTS                            
      2003 - Subsec. (b)(1)(B). Pub. L. 108-159, Sec. 811(f),
    substituted "25A" for "25(a)".
      Subsec. (c)(1)(B)(ii). Pub. L. 108-159, Sec. 312(e)(2)(A),
    substituted "described in any of paragraphs (1) through (3) of
    section 1681s-2(c)" for "of section 1681s-2(a)".
      Subsec. (c)(5). Pub. L. 108-159, Sec. 312(e)(2)(B)(ii),
    substituted "certain violations" for "violation of section 1681s-
    2(a)(1)" in heading.
      Subsec. (c)(5)(A), (B). Pub. L. 108-159, Sec. 312(e)(2)(B)(i),
    substituted "described in any of paragraphs (1) through (3) of
    section 1681s-2(c)" for "of section 1681s-2(a)(1)".
      Subsec. (f). Pub. L. 108-159, Sec. 153, added subsec. (f).
      Subsec. (g). Pub. L. 108-159, Sec. 412(e), added subsec. (g).
      1999 - Subsec. (a)(4). Pub. L. 106-102, Sec. 506(b), struck out
    par. (4) which read as follows: "Neither the Commission nor any
    other agency referred to in subsection (b) of this section may
    prescribe trade regulation rules or other regulations with respect
    to this subchapter."
      Subsec. (d). Pub. L. 106-102, Sec. 506(a)(1), struck out at the
    end "Notwithstanding the preceding, no agency referred to in
    subsection (b) of this section may conduct an examination of a
    bank, savings association, or credit union regarding compliance
    with the provisions of this subchapter, except in response to a
    complaint (or if the agency otherwise has knowledge) that the bank,
    savings association, or credit union has violated a provision of
    this subchapter, in which case, the agency may conduct an
    examination as necessary to investigate the complaint. If an agency
    determines during an investigation in response to a complaint that
    a violation of this subchapter has occurred, the agency may, during
    its next 2 regularly scheduled examinations of the bank, savings
    association, or credit union, examine for compliance with this
    subchapter."
      Subsec. (e). Pub. L. 106-102, Sec. 506(a)(2), added subsec. (e)
    and struck out heading and text of former subsec. (e). Text read as
    follows: "The Board of Governors of the Federal Reserve System may
    issue interpretations of any provision of this subchapter as such
    provision may apply to any persons identified under paragraph (1),
    (2), and (3) of subsection (b) of this section, or to the holding
    companies and affiliates of such persons, in consultation with
    Federal agencies identified in paragraphs (1), (2), and (3) of
    subsection (b) of this section."
      1998 - Subsec. (b). Pub. L. 105-347 struck out "or (e)" after
    "subject to subsection (d)" in introductory provisions.
      1996 - Subsec. (a). Pub. L. 104-208, Sec. 2416(b)(1), which
    directed the amendment of subsec. (a) by inserting heading
    "Enforcement by Federal Trade Commission" before "Compliance with
    the requirements", was executed by making the insertion after
    "(a)", to reflect the probable intent of Congress and the amendment
    by Pub. L. 104-208, Sec. 2416(a). See below.
      Pub. L. 104-208, Sec. 2416(a), inserted "(1)" after "(a)" and
    added pars. (2) to (4).
      Subsec. (b). Pub. L. 104-208, Sec. 2416(b)(2), inserted heading
    and in introductory provisions substituted "Compliance with the
    requirements imposed under this subchapter with respect to consumer
    reporting agencies, persons who use consumer reports from such
    agencies, persons who furnish information to such agencies, and
    users of information that are subject to subsection (d) or (e) of
    section 1681m of this title shall be enforced under - " for
    "Compliance with the requirements imposed under this subchapter
    with respect to consumer reporting agencies and persons who use
    consumer reports from such agencies shall be enforced under - ".
      Subsec. (c). Pub. L. 104-208, Sec. 2417(2), added subsec. (c).
    Former subsec. (c) redesignated (d).
      Pub. L. 104-208, Sec. 2416(c), inserted at end "Notwithstanding
    the preceding, no agency referred to in subsection (b) of this
    section may conduct an examination of a bank, savings association,
    or credit union regarding compliance with the provisions of this
    subchapter, except in response to a complaint (or if the agency
    otherwise has knowledge) that the bank, savings association, or
    credit union has violated a provision of this subchapter, in which
    case, the agency may conduct an examination as necessary to
    investigate the complaint. If an agency determines during an
    investigation in response to a complaint that a violation of this
    subchapter has occurred, the agency may, during its next 2
    regularly scheduled examinations of the bank, savings association,
    or credit union, examine for compliance with this subchapter."
      Subsec. (d). Pub. L. 104-208, Sec. 2417(1), redesignated subsec.
    (c) as (d).
      Subsec. (e). Pub. L. 104-208, Sec. 2418, added subsec. (e).
      1995 - Subsec. (b)(4). Pub. L. 104-88 substituted "Secretary of
    Transportation, with respect to all carriers subject to the
    jurisdiction of the Surface Transportation Board" for "Interstate
    Commerce Commission with respect to any common carrier subject to
    those Acts".
      1992 - Subsec. (b)(1)(C). Pub. L. 102-550 substituted semicolon
    for period at end.
      1991 - Subsec. (b). Pub. L. 102-242, Sec. 212(c)(2), inserted at
    end "The terms used in paragraph (1) that are not defined in this
    subchapter or otherwise defined in section 3(s) of the Federal
    Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning
    given to them in section 1(b) of the International Banking Act of
    1978 (12 U.S.C. 3101)."
      Pub. L. 102-242, Sec. 212(c)(1), added par. (1) and struck out
    former par. (1) which read as follows: "section 8 of the Federal
    Deposit Insurance Act, in the case of:
        "(A) national banks, by the Comptroller of the Currency;
        "(B) member banks of the Federal Reserve System (other than
      national banks), by the Federal Reserve Board; and
        "(C) banks insured by the Federal Deposit Insurance Corporation
      (other than members of the Federal Reserve System), by the Board
      of Directors of the Federal Deposit Insurance Corporation."
      1989 - Subsec. (b)(2). Pub. L. 101-73 amended par. (2) generally.
    Prior to amendment, par. (2) read as follows: "section 5(d) of the
    Home Owners Loan Act of 1933, section 407 of the National Housing
    Act, and sections 6(i) and 17 of the Federal Home Loan Bank Act, by
    the Federal Home Loan Bank Board (acting directly or through the
    Federal Savings and Loan Insurance Corporation), in the case of any
    institution subject to any of those provisions;".
      1984 - Subsec. (b)(5). Pub. L. 98-443 substituted "Secretary of
    Transportation" for "Civil Aeronautics Board".

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-159 subject to joint regulations
    establishing effective dates as prescribed by Federal Reserve Board
    and Federal Trade Commission, except as otherwise provided, see
    section 3 of Pub. L. 108-159, set out as a note under section 1681
    of this title.
      Amendment by section 412(e) of Pub. L. 108-159 effective at end
    of 15-month period beginning on Dec. 4, 2003, see section 412(g) of
    Pub. L. 108-159, set out as a note under section 1681b of this
    title.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-347 deemed to have same effective date
    as amendments made by section 2403 of Pub. L. 104-208, see section
    7 of Pub. L. 105-347, set out as a note under section 1681a of this
    title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

                     EFFECTIVE DATE OF 1995 AMENDMENT                 
      Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2
    of Pub. L. 104-88, set out as an Effective Date note under section
    701 of Title 49, Transportation.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-550 effective as if included in the
    Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.
    L. 102-242, as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102-
    550, set out as a note under section 191 of Title 12, Banks and
    Banking.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-443 effective Jan. 1, 1985, see section
    9(v) of Pub. L. 98-443, set out as a note under section 5314 of
    Title 5, Government Organization and Employees.


-TRANS-
                           TRANSFER OF FUNCTIONS                       
      Functions vested in Administrator of National Credit Union
    Administration transferred and vested in National Credit Union
    Administration Board pursuant to section 1752a of Title 12, Banks
    and Banking.

-End-



-CITE-
    15 USC Sec. 1681s-1                                         01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681s-1. Information on overdue child support obligations

-STATUTE-
      Notwithstanding any other provision of this subchapter, a
    consumer reporting agency shall include in any consumer report
    furnished by the agency in accordance with section 1681b of this
    title, any information on the failure of the consumer to pay
    overdue support which - 
        (1) is provided - 
          (A) to the consumer reporting agency by a State or local
        child support enforcement agency; or
          (B) to the consumer reporting agency and verified by any
        local, State, or Federal Government agency; and

        (2) antedates the report by 7 years or less.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 622, as added Pub. L. 102-537, Sec.
    2(a), Oct. 27, 1992, 106 Stat. 3531.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 622 of Pub. L. 90-321 was renumbered section 625
    and is classified to section 1681t of this title.

                              EFFECTIVE DATE                          
      Section effective Jan. 1, 1993, see section 2(d) of Pub. L. 102-
    537, set out as an Effective Date of 1992 Amendment note under
    section 1681a of this title.

-End-



-CITE-
    15 USC Sec. 1681s-2                                         01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681s-2. Responsibilities of furnishers of information to
      consumer reporting agencies

-STATUTE-
    (a) Duty of furnishers of information to provide accurate
      information
      (1) Prohibition
        (A) Reporting information with actual knowledge of errors
          A person shall not furnish any information relating to a
        consumer to any consumer reporting agency if the person knows
        or has reasonable cause to believe that the information is
        inaccurate.
        (B) Reporting information after notice and confirmation of
          errors
          A person shall not furnish information relating to a consumer
        to any consumer reporting agency if - 
            (i) the person has been notified by the consumer, at the
          address specified by the person for such notices, that
          specific information is inaccurate; and
            (ii) the information is, in fact, inaccurate.
        (C) No address requirement
          A person who clearly and conspicuously specifies to the
        consumer an address for notices referred to in subparagraph (B)
        shall not be subject to subparagraph (A); however, nothing in
        subparagraph (B) shall require a person to specify such an
        address.
        (D) Definition
          For purposes of subparagraph (A), the term "reasonable cause
        to believe that the information is inaccurate" means having
        specific knowledge, other than solely allegations by the
        consumer, that would cause a reasonable person to have
        substantial doubts about the accuracy of the information.
      (2) Duty to correct and update information
        A person who - 
          (A) regularly and in the ordinary course of business
        furnishes information to one or more consumer reporting
        agencies about the person's transactions or experiences with
        any consumer; and
          (B) has furnished to a consumer reporting agency information
        that the person determines is not complete or accurate,

      shall promptly notify the consumer reporting agency of that
      determination and provide to the agency any corrections to that
      information, or any additional information, that is necessary to
      make the information provided by the person to the agency
      complete and accurate, and shall not thereafter furnish to the
      agency any of the information that remains not complete or
      accurate.
      (3) Duty to provide notice of dispute
        If the completeness or accuracy of any information furnished by
      any person to any consumer reporting agency is disputed to such
      person by a consumer, the person may not furnish the information
      to any consumer reporting agency without notice that such
      information is disputed by the consumer.
      (4) Duty to provide notice of closed accounts
        A person who regularly and in the ordinary course of business
      furnishes information to a consumer reporting agency regarding a
      consumer who has a credit account with that person shall notify
      the agency of the voluntary closure of the account by the
      consumer, in information regularly furnished for the period in
      which the account is closed.
      (5) Duty to provide notice of delinquency of accounts
        (A) In general
          A person who furnishes information to a consumer reporting
        agency regarding a delinquent account being placed for
        collection, charged to profit or loss, or subjected to any
        similar action shall, not later than 90 days after furnishing
        the information, notify the agency of the date of delinquency
        on the account, which shall be the month and year of the
        commencement of the delinquency on the account that immediately
        preceded the action.
        (B) Rule of construction
          For purposes of this paragraph only, and provided that the
        consumer does not dispute the information, a person that
        furnishes information on a delinquent account that is placed
        for collection, charged for profit or loss, or subjected to any
        similar action, complies with this paragraph, if - 
            (i) the person reports the same date of delinquency as that
          provided by the creditor to which the account was owed at the
          time at which the commencement of the delinquency occurred,
          if the creditor previously reported that date of delinquency
          to a consumer reporting agency;
            (ii) the creditor did not previously report the date of
          delinquency to a consumer reporting agency, and the person
          establishes and follows reasonable procedures to obtain the
          date of delinquency from the creditor or another reliable
          source and reports that date to a consumer reporting agency
          as the date of delinquency; or
            (iii) the creditor did not previously report the date of
          delinquency to a consumer reporting agency and the date of
          delinquency cannot be reasonably obtained as provided in
          clause (ii), the person establishes and follows reasonable
          procedures to ensure the date reported as the date of
          delinquency precedes the date on which the account is placed
          for collection, charged to profit or loss, or subjected to
          any similar action, and reports such date to the credit
          reporting agency.
      (6) Duties of furnishers upon notice of identity theft-related
        information
        (A) Reasonable procedures
          A person that furnishes information to any consumer reporting
        agency shall have in place reasonable procedures to respond to
        any notification that it receives from a consumer reporting
        agency under section 1681c-2 of this title relating to
        information resulting from identity theft, to prevent that
        person from refurnishing such blocked information.
        (B) Information alleged to result from identity theft
          If a consumer submits an identity theft report to a person
        who furnishes information to a consumer reporting agency at the
        address specified by that person for receiving such reports
        stating that information maintained by such person that
        purports to relate to the consumer resulted from identity
        theft, the person may not furnish such information that
        purports to relate to the consumer to any consumer reporting
        agency, unless the person subsequently knows or is informed by
        the consumer that the information is correct.
      (7) Negative information
        (A) Notice to consumer required
          (i) In general
            If any financial institution that extends credit and
          regularly and in the ordinary course of business furnishes
          information to a consumer reporting agency described in
          section 1681a(p) of this title furnishes negative information
          to such an agency regarding credit extended to a customer,
          the financial institution shall provide a notice of such
          furnishing of negative information, in writing, to the
          customer.
          (ii) Notice effective for subsequent submissions
            After providing such notice, the financial institution may
          submit additional negative information to a consumer
          reporting agency described in section 1681a(p) of this title
          with respect to the same transaction, extension of credit,
          account, or customer without providing additional notice to
          the customer.
        (B) Time of notice
          (i) In general
            The notice required under subparagraph (A) shall be
          provided to the customer prior to, or no later than 30 days
          after, furnishing the negative information to a consumer
          reporting agency described in section 1681a(p) of this title.
          (ii) Coordination with new account disclosures
            If the notice is provided to the customer prior to
          furnishing the negative information to a consumer reporting
          agency, the notice may not be included in the initial
          disclosures provided under section 1637(a) of this title.
        (C) Coordination with other disclosures
          The notice required under subparagraph (A) - 
            (i) may be included on or with any notice of default, any
          billing statement, or any other materials provided to the
          customer; and
            (ii) must be clear and conspicuous.
        (D) Model disclosure
          (i) Duty of Board to prepare
            The Board shall prescribe a brief model disclosure a
          financial institution may use to comply with subparagraph
          (A), which shall not exceed 30 words.
          (ii) Use of model not required
            No provision of this paragraph shall be construed as
          requiring a financial institution to use any such model form
          prescribed by the Board.
          (iii) Compliance using model
            A financial institution shall be deemed to be in compliance
          with subparagraph (A) if the financial institution uses any
          such model form prescribed by the Board, or the financial
          institution uses any such model form and rearranges its
          format.
        (E) Use of notice without submitting negative information
          No provision of this paragraph shall be construed as
        requiring a financial institution that has provided a customer
        with a notice described in subparagraph (A) to furnish negative
        information about the customer to a consumer reporting agency.
        (F) Safe harbor
          A financial institution shall not be liable for failure to
        perform the duties required by this paragraph if, at the time
        of the failure, the financial institution maintained reasonable
        policies and procedures to comply with this paragraph or the
        financial institution reasonably believed that the institution
        is prohibited, by law, from contacting the consumer.
        (G) Definitions
          For purposes of this paragraph, the following definitions
        shall apply:
          (i) Negative information
            The term "negative information" means information
          concerning a customer's delinquencies, late payments,
          insolvency, or any form of default.
          (ii) Customer; financial institution
            The terms "customer" and "financial institution" have the
          same meanings as in section 6809 of this title.
      (8) Ability of consumer to dispute information directly with
        furnisher
        (A) In general
          The Federal banking agencies, the National Credit Union
        Administration, and the Commission shall jointly prescribe
        regulations that shall identify the circumstances under which a
        furnisher shall be required to reinvestigate a dispute
        concerning the accuracy of information contained in a consumer
        report on the consumer, based on a direct request of a
        consumer.
        (B) Considerations
          In prescribing regulations under subparagraph (A), the
        agencies shall weigh - 
            (i) the benefits to consumers with the costs on furnishers
          and the credit reporting system;
            (ii) the impact on the overall accuracy and integrity of
          consumer reports of any such requirements;
            (iii) whether direct contact by the consumer with the
          furnisher would likely result in the most expeditious
          resolution of any such dispute; and
            (iv) the potential impact on the credit reporting process
          if credit repair organizations, as defined in section
          1679a(3) of this title, including entities that would be a
          credit repair organization, but for section 1679a(3)(B)(i) of
          this title, are able to circumvent the prohibition in
          subparagraph (G).
        (C) Applicability
          Subparagraphs (D) through (G) shall apply in any circumstance
        identified under the regulations promulgated under subparagraph
        (A).
        (D) Submitting a notice of dispute
          A consumer who seeks to dispute the accuracy of information
        shall provide a dispute notice directly to such person at the
        address specified by the person for such notices that - 
            (i) identifies the specific information that is being
          disputed;
            (ii) explains the basis for the dispute; and
            (iii) includes all supporting documentation required by the
          furnisher to substantiate the basis of the dispute.
        (E) Duty of person after receiving notice of dispute
          After receiving a notice of dispute from a consumer pursuant
        to subparagraph (D), the person that provided the information
        in dispute to a consumer reporting agency shall - 
            (i) conduct an investigation with respect to the disputed
          information;
            (ii) review all relevant information provided by the
          consumer with the notice;
            (iii) complete such person's investigation of the dispute
          and report the results of the investigation to the consumer
          before the expiration of the period under section 1681i(a)(1)
          of this title within which a consumer reporting agency would
          be required to complete its action if the consumer had
          elected to dispute the information under that section; and
            (iv) if the investigation finds that the information
          reported was inaccurate, promptly notify each consumer
          reporting agency to which the person furnished the inaccurate
          information of that determination and provide to the agency
          any correction to that information that is necessary to make
          the information provided by the person accurate.
        (F) Frivolous or irrelevant dispute
          (i) In general
            This paragraph shall not apply if the person receiving a
          notice of a dispute from a consumer reasonably determines
          that the dispute is frivolous or irrelevant, including - 
              (I) by reason of the failure of a consumer to provide
            sufficient information to investigate the disputed
            information; or
              (II) the submission by a consumer of a dispute that is
            substantially the same as a dispute previously submitted by
            or for the consumer, either directly to the person or
            through a consumer reporting agency under subsection (b) of
            this section, with respect to which the person has already
            performed the person's duties under this paragraph or
            subsection (b) of this section, as applicable.
          (ii) Notice of determination
            Upon making any determination under clause (i) that a
          dispute is frivolous or irrelevant, the person shall notify
          the consumer of such determination not later than 5 business
          days after making such determination, by mail or, if
          authorized by the consumer for that purpose, by any other
          means available to the person.
          (iii) Contents of notice
            A notice under clause (ii) shall include - 
              (I) the reasons for the determination under clause (i);
            and
              (II) identification of any information required to
            investigate the disputed information, which may consist of
            a standardized form describing the general nature of such
            information.
        (G) Exclusion of credit repair organizations
          This paragraph shall not apply if the notice of the dispute
        is submitted by, is prepared on behalf of the consumer by, or
        is submitted on a form supplied to the consumer by, a credit
        repair organization, as defined in section 1679a(3) of this
        title, or an entity that would be a credit repair organization,
        but for section 1679a(3)(B)(i) of this title.
      (9) Duty to provide notice of status as medical information
        furnisher
        A person whose primary business is providing medical services,
      products, or devices, or the person's agent or assignee, who
      furnishes information to a consumer reporting agency on a
      consumer shall be considered a medical information furnisher for
      purposes of this subchapter, and shall notify the agency of such
      status.
    (b) Duties of furnishers of information upon notice of dispute
      (1) In general
        After receiving notice pursuant to section 1681i(a)(2) of this
      title of a dispute with regard to the completeness or accuracy of
      any information provided by a person to a consumer reporting
      agency, the person shall - 
          (A) conduct an investigation with respect to the disputed
        information;
          (B) review all relevant information provided by the consumer
        reporting agency pursuant to section 1681i(a)(2) of this title;
          (C) report the results of the investigation to the consumer
        reporting agency;
          (D) if the investigation finds that the information is
        incomplete or inaccurate, report those results to all other
        consumer reporting agencies to which the person furnished the
        information and that compile and maintain files on consumers on
        a nationwide basis; and
          (E) if an item of information disputed by a consumer is found
        to be inaccurate or incomplete or cannot be verified after any
        reinvestigation under paragraph (1), for purposes of reporting
        to a consumer reporting agency only, as appropriate, based on
        the results of the reinvestigation promptly - 
            (i) modify that item of information;
            (ii) delete that item of information; or
            (iii) permanently block the reporting of that item of
          information.
      (2) Deadline
        A person shall complete all investigations, reviews, and
      reports required under paragraph (1) regarding information
      provided by the person to a consumer reporting agency, before the
      expiration of the period under section 1681i(a)(1) of this title
      within which the consumer reporting agency is required to
      complete actions required by that section regarding that
      information.
    (c) Limitation on liability
      Except as provided in section 1681s(c)(1)(B) of this title,
    sections 1681n and 1681o of this title do not apply to any
    violation of - 
        (1) subsection (a) of this section, including any regulations
      issued thereunder;
        (2) subsection (e) of this section, except that nothing in this
      paragraph shall limit, expand, or otherwise affect liability
      under section 1681n or 1681o of this title, as applicable, for
      violations of subsection (b) of this section; or
        (3) subsection (e) of section 1681m of this title.
    (d) Limitation on enforcement
      The provisions of law described in paragraphs (1) through (3) of
    subsection (c) of this section (other than with respect to the
    exception described in paragraph (2) of subsection (c) of this
    section) shall be enforced exclusively as provided under section
    1681s of this title by the Federal agencies and officials and the
    State officials identified in section 1681s of this title.
    (e) Accuracy guidelines and regulations required
      (1) Guidelines
        The Federal banking agencies, the National Credit Union
      Administration, and the Commission shall, with respect to the
      entities that are subject to their respective enforcement
      authority under section 1681s of this title, and in coordination
      as described in paragraph (2) - 
          (A) establish and maintain guidelines for use by each person
        that furnishes information to a consumer reporting agency
        regarding the accuracy and integrity of the information
        relating to consumers that such entities furnish to consumer
        reporting agencies, and update such guidelines as often as
        necessary; and
          (B) prescribe regulations requiring each person that
        furnishes information to a consumer reporting agency to
        establish reasonable policies and procedures for implementing
        the guidelines established pursuant to subparagraph (A).
      (2) Coordination
        Each agency required to prescribe regulations under paragraph
      (1) shall consult and coordinate with each other such agency so
      that, to the extent possible, the regulations prescribed by each
      such entity are consistent and comparable with the regulations
      prescribed by each other such agency.
      (3) Criteria
        In developing the guidelines required by paragraph (1)(A), the
      agencies described in paragraph (1) shall - 
          (A) identify patterns, practices, and specific forms of
        activity that can compromise the accuracy and integrity of
        information furnished to consumer reporting agencies;
          (B) review the methods (including technological means) used
        to furnish information relating to consumers to consumer
        reporting agencies;
          (C) determine whether persons that furnish information to
        consumer reporting agencies maintain and enforce policies to
        assure the accuracy and integrity of information furnished to
        consumer reporting agencies; and
          (D) examine the policies and processes that persons that
        furnish information to consumer reporting agencies employ to
        conduct reinvestigations and correct inaccurate information
        relating to consumers that has been furnished to consumer
        reporting agencies.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 623, as added Pub. L. 104-208, div.
    A, title II, Sec. 2413(a)(2), Sept. 30, 1996, 110 Stat. 3009-447;
    Pub. L. 108-159, title I, Sec. 154(a), title II, Sec. 217(a), title
    III, Secs. 312(a)-(e)(1), 314(b), title IV, Sec. 412(a), Dec. 4,
    2003, 117 Stat. 1966, 1986, 1989-1993, 1995, 2002.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 623 of Pub. L. 90-321 was renumbered section 625
    and is classified to section 1681t of this title.

                                AMENDMENTS                            
      2003 - Subsec. (a)(1)(A). Pub. L. 108-159, Sec. 312(b)(1),
    substituted "knows or has reasonable cause to believe that the
    information is inaccurate" for "knows or consciously avoids knowing
    that the information is inaccurate".
      Subsec. (a)(1)(D). Pub. L. 108-159, Sec. 312(b)(2), added subpar.
    (D).
      Subsec. (a)(5). Pub. L. 108-159, Sec. 312(d), designated existing
    provisions as subpar. (A), inserted heading, inserted "date of
    delinquency on the account, which shall be the" before "month" and
    "on the account" before "that immediately preceded", and added
    subpar. (B).
      Subsec. (a)(6). Pub. L. 108-159, Sec. 154(a), added par. (6).
      Subsec. (a)(7). Pub. L. 108-159, Sec. 217(a), added par. (7).
      Subsec. (a)(8). Pub. L. 108-159, Sec. 312(c), added par. (8).
      Subsec. (a)(9). Pub. L. 108-159, Sec. 412(a), added par. (9).
      Subsec. (b)(1)(E). Pub. L. 108-159, Sec. 314(b), added subpar.
    (E).
      Subsec. (c). Pub. L. 108-159, Sec. 312(e)(1), added subsec. (c)
    and struck out heading and text of former subsec. (c). Text read as
    follows: "Sections 1681n and 1681o of this title do not apply to
    any failure to comply with subsection (a) of this section, except
    as provided in section 1681s(c)(1)(B) of this title."
      Subsec. (d). Pub. L. 108-159, Sec. 312(e)(1), added subsec. (d)
    and struck out heading and text of former subsec. (d). Text read as
    follows: "Subsection (a) of this section shall be enforced
    exclusively under section 1681s of this title by the Federal
    agencies and officials and the State officials identified in that
    section."
      Subsec. (e). Pub. L. 108-159, Sec. 312(a), added subsec. (e).

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-159 subject to joint regulations
    establishing effective dates as prescribed by Federal Reserve Board
    and Federal Trade Commission, except as otherwise provided, see
    section 3 of Pub. L. 108-159, set out as a note under section 1681
    of this title.
      Amendment by section 412(a) of Pub. L. 108-159 effective at end
    of 15-month period beginning on Dec. 4, 2003, see section 412(g) of
    Pub. L. 108-159, set out as a note under section 1681b of this
    title.

                              EFFECTIVE DATE                          
      Section effective 365 days after Sept. 30, 1996, with special
    rule for early compliance, see section 2420 of Pub. L. 104-208, set
    out as an Effective Date of 1996 Amendment note under section 1681a
    of this title.

                           MODEL DISCLOSURE FORM                       
      Pub. L. 108-159, title II, Sec. 217(b), Dec. 4, 2003, 117 Stat.
    1987, provided that: "Before the end of the 6-month period
    beginning on the date of enactment of this Act [Dec. 4, 2003], the
    Board shall adopt the model disclosure required under the amendment
    made by subsection (a) [amending this section] after notice duly
    given in the Federal Register and an opportunity for public comment
    in accordance with section 553 of title 5, United States Code."
      [For definitions of terms used in section 217(b) of Pub. L. 108-
    159, set out above, see section 2 of Pub. L. 108-159, set out as a
    Definitions note under section 1681 of this title.]

-End-



-CITE-
    15 USC Sec. 1681s-3                                         01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681s-3. Affiliate sharing

-STATUTE-
    (a) Special rule for solicitation for purposes of marketing
      (1) Notice
        Any person that receives from another person related to it by
      common ownership or affiliated by corporate control a
      communication of information that would be a consumer report, but
      for clauses (i), (ii), and (iii) of section 1681a(d)(2)(A) of
      this title, may not use the information to make a solicitation
      for marketing purposes to a consumer about its products or
      services, unless - 
          (A) it is clearly and conspicuously disclosed to the consumer
        that the information may be communicated among such persons for
        purposes of making such solicitations to the consumer; and
          (B) the consumer is provided an opportunity and a simple
        method to prohibit the making of such solicitations to the
        consumer by such person.
      (2) Consumer choice
        (A) In general
          The notice required under paragraph (1) shall allow the
        consumer the opportunity to prohibit all solicitations referred
        to in such paragraph, and may allow the consumer to choose from
        different options when electing to prohibit the sending of such
        solicitations, including options regarding the types of
        entities and information covered, and which methods of
        delivering solicitations the consumer elects to prohibit.
        (B) Format
          Notwithstanding subparagraph (A), the notice required under
        paragraph (1) shall be clear, conspicuous, and concise, and any
        method provided under paragraph (1)(B) shall be simple. The
        regulations prescribed to implement this section shall provide
        specific guidance regarding how to comply with such standards.
      (3) Duration
        (A) In general
          The election of a consumer pursuant to paragraph (1)(B) to
        prohibit the making of solicitations shall be effective for at
        least 5 years, beginning on the date on which the person
        receives the election of the consumer, unless the consumer
        requests that such election be revoked.
        (B) Notice upon expiration of effective period
          At such time as the election of a consumer pursuant to
        paragraph (1)(B) is no longer effective, a person may not use
        information that the person receives in the manner described in
        paragraph (1) to make any solicitation for marketing purposes
        to the consumer, unless the consumer receives a notice and an
        opportunity, using a simple method, to extend the opt-out for
        another period of at least 5 years, pursuant to the procedures
        described in paragraph (1).
      (4) Scope
        This section shall not apply to a person - 
          (A) using information to make a solicitation for marketing
        purposes to a consumer with whom the person has a pre-existing
        business relationship;
          (B) using information to facilitate communications to an
        individual for whose benefit the person provides employee
        benefit or other services pursuant to a contract with an
        employer related to and arising out of the current employment
        relationship or status of the individual as a participant or
        beneficiary of an employee benefit plan;
          (C) using information to perform services on behalf of
        another person related by common ownership or affiliated by
        corporate control, except that this subparagraph shall not be
        construed as permitting a person to send solicitations on
        behalf of another person, if such other person would not be
        permitted to send the solicitation on its own behalf as a
        result of the election of the consumer to prohibit
        solicitations under paragraph (1)(B);
          (D) using information in response to a communication
        initiated by the consumer;
          (E) using information in response to solicitations authorized
        or requested by the consumer; or
          (F) if compliance with this section by that person would
        prevent compliance by that person with any provision of State
        insurance laws pertaining to unfair discrimination in any State
        in which the person is lawfully doing business.
      (5) No retroactivity
        This subsection shall not prohibit the use of information to
      send a solicitation to a consumer if such information was
      received prior to the date on which persons are required to
      comply with regulations implementing this subsection.
    (b) Notice for other purposes permissible
      A notice or other disclosure under this section may be
    coordinated and consolidated with any other notice required to be
    issued under any other provision of law by a person that is subject
    to this section, and a notice or other disclosure that is
    equivalent to the notice required by subsection (a) of this
    section, and that is provided by a person described in subsection
    (a) of this section to a consumer together with disclosures
    required by any other provision of law, shall satisfy the
    requirements of subsection (a) of this section.
    (c) User requirements
      Requirements with respect to the use by a person of information
    received from another person related to it by common ownership or
    affiliated by corporate control, such as the requirements of this
    section, constitute requirements with respect to the exchange of
    information among persons affiliated by common ownership or common
    corporate control, within the meaning of section 1681t(b)(2) of
    this title.
    (d) Definitions
      For purposes of this section, the following definitions shall
    apply:
      (1) Pre-existing business relationship
        The term "pre-existing business relationship" means a
      relationship between a person, or a person's licensed agent, and
      a consumer, based on - 
          (A) a financial contract between a person and a consumer
        which is in force;
          (B) the purchase, rental, or lease by the consumer of that
        person's goods or services, or a financial transaction
        (including holding an active account or a policy in force or
        having another continuing relationship) between the consumer
        and that person during the 18-month period immediately
        preceding the date on which the consumer is sent a solicitation
        covered by this section;
          (C) an inquiry or application by the consumer regarding a
        product or service offered by that person, during the 3-month
        period immediately preceding the date on which the consumer is
        sent a solicitation covered by this section; or
          (D) any other pre-existing customer relationship defined in
        the regulations implementing this section.
      (2) Solicitation
        The term "solicitation" means the marketing of a product or
      service initiated by a person to a particular consumer that is
      based on an exchange of information described in subsection (a)
      of this section, and is intended to encourage the consumer to
      purchase such product or service, but does not include
      communications that are directed at the general public or
      determined not to be a solicitation by the regulations prescribed
      under this section.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 624, as added Pub. L. 108-159,
    title II, Sec. 214(a)(2), Dec. 4, 2003, 117 Stat. 1980.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 624 of Pub. L. 90-321 was renumbered section 625
    and is classified to section 1681t of this title.
      Another prior section 624 of Pub. L. 90-321 was renumbered
    section 626 and is classified to section 1681u of this title.

                              EFFECTIVE DATE                          
      Section subject to joint regulations establishing effective dates
    as prescribed by Federal Reserve Board and Federal Trade
    Commission, except as otherwise provided, see section 3 of Pub. L.
    108-159, set out as an Effective Date of 2003 Amendment note under
    section 1681 of this title.

                                REGULATIONS                            
      Pub. L. 108-159, title II, Sec. 214(b), Dec. 4, 2003, 117 Stat.
    1982, provided that:
      "(1) In general. - The Federal banking agencies, the National
    Credit Union Administration, and the Commission, with respect to
    the entities that are subject to their respective enforcement
    authority under section 621 of the Fair Credit Reporting Act [15
    U.S.C. 1681s] and the Securities and Exchange Commission, and in
    coordination as described in paragraph (2), shall prescribe
    regulations to implement section 624 of the Fair Credit Reporting
    Act [15 U.S.C. 1681s-3], as added by this section.
      "(2) Coordination. - Each agency required to prescribe
    regulations under paragraph (1) shall consult and coordinate with
    each other such agency so that, to the extent possible, the
    regulations prescribed by each such entity are consistent and
    comparable with the regulations prescribed by each other such
    agency.
      "(3) Considerations. - In promulgating regulations under this
    subsection, each agency referred to in paragraph (1) shall - 
        "(A) ensure that affiliate sharing notification methods provide
      a simple means for consumers to make determinations and choices
      under section 624 of the Fair Credit Reporting Act [15 U.S.C.
      1681s-3], as added by this section;
        "(B) consider the affiliate sharing notification practices
      employed on the date of enactment of this Act [Dec. 4, 2003] by
      persons that will be subject to that section 624; and
        "(C) ensure that notices and disclosures may be coordinated and
      consolidated, as provided in subsection (b) of that section 624.
      "(4) Timing. - Regulations required by this subsection shall - 
        "(A) be issued in final form not later than 9 months after the
      date of enactment of this Act [Dec. 4, 2003]; and
        "(B) become effective not later than 6 months after the date on
      which they are issued in final form."
      [For definitions of terms used in section 214(b) of Pub. L. 108-
    159, set out above, see section 2 of Pub. L. 108-159, set out as a
    Definitions note under section 1681 of this title.]

                 STUDIES OF INFORMATION SHARING PRACTICES             
      Pub. L. 108-159, title II, Sec. 214(e), Dec. 4, 2003, 117 Stat.
    1983, provided that:
      "(1) In general. - The Federal banking agencies, the National
    Credit Union Administration, and the Commission shall jointly
    conduct regular studies of the consumer information sharing
    practices by financial institutions and other persons that are
    creditors or users of consumer reports with their affiliates.
      "(2) Matters for study. - In conducting the studies required by
    paragraph (1), the agencies described in paragraph (1) shall - 
        "(A) identify - 
          "(i) the purposes for which financial institutions and other
        creditors and users of consumer reports share consumer
        information;
          "(ii) the types of information shared by such entities with
        their affiliates;
          "(iii) the number of choices provided to consumers with
        respect to the control of such sharing, and the degree to and
        manner in which consumers exercise such choices, if at all; and
          "(iv) whether such entities share or may share personally
        identifiable transaction or experience information with
        affiliates for purposes - 
            "(I) that are related to employment or hiring, including
          whether the person that is the subject of such information is
          given notice of such sharing, and the specific uses of such
          shared information; or
            "(II) of general publication of such information; and
        "(B) specifically examine the information sharing practices
      that financial institutions and other creditors and users of
      consumer reports and their affiliates employ for the purpose of
      making underwriting decisions or credit evaluations of consumers.
      "(3) Reports. - 
        "(A) Initial report. - Not later than 3 years after the date of
      enactment of this Act [Dec. 4, 2003], the Federal banking
      agencies, the National Credit Union Administration, and the
      Commission shall jointly submit a report to the Congress on the
      results of the initial study conducted in accordance with this
      subsection, together with any recommendations for legislative or
      regulatory action.
        "(B) Followup reports. - The Federal banking agencies, the
      National Credit Union Administration, and the Commission shall,
      not less frequently than once every 3 years following the date of
      submission of the initial report under subparagraph (A), jointly
      submit a report to the Congress that, together with any
      recommendations for legislative or regulatory action - 
          "(i) documents any changes in the areas of study referred to
        in paragraph (2)(A) occurring since the date of submission of
        the previous report;
          "(ii) identifies any changes in the practices of financial
        institutions and other creditors and users of consumer reports
        in sharing consumer information with their affiliates for the
        purpose of making underwriting decisions or credit evaluations
        of consumers occurring since the date of submission of the
        previous report; and
          "(iii) examines the effects that changes described in clause
        (ii) have had, if any, on the degree to which such affiliate
        sharing practices reduce the need for financial institutions,
        creditors, and other users of consumer reports to rely on
        consumer reports for such decisions."
      [For definitions of terms used in section 214(e) of Pub. L. 108-
    159, set out above, see section 2 of Pub. L. 108-159, set out as a
    Definitions note under section 1681 of this title.]

-End-



-CITE-
    15 USC Sec. 1681t                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681t. Relation to State laws

-STATUTE-
    (a) In general
      Except as provided in subsections (b) and (c) of this section,
    this subchapter does not annul, alter, affect, or exempt any person
    subject to the provisions of this subchapter from complying with
    the laws of any State with respect to the collection, distribution,
    or use of any information on consumers, or for the prevention or
    mitigation of identity theft, except to the extent that those laws
    are inconsistent with any provision of this subchapter, and then
    only to the extent of the inconsistency.
    (b) General exceptions
      No requirement or prohibition may be imposed under the laws of
    any State - 
        (1) with respect to any subject matter regulated under - 
          (A) subsection (c) or (e) of section 1681b of this title,
        relating to the prescreening of consumer reports;
          (B) section 1681i of this title, relating to the time by
        which a consumer reporting agency must take any action,
        including the provision of notification to a consumer or other
        person, in any procedure related to the disputed accuracy of
        information in a consumer's file, except that this subparagraph
        shall not apply to any State law in effect on September 30,
        1996;
          (C) subsections (a) and (b) of section 1681m of this title,
        relating to the duties of a person who takes any adverse action
        with respect to a consumer;
          (D) section 1681m(d) of this title, relating to the duties of
        persons who use a consumer report of a consumer in connection
        with any credit or insurance transaction that is not initiated
        by the consumer and that consists of a firm offer of credit or
        insurance;
          (E) section 1681c of this title, relating to information
        contained in consumer reports, except that this subparagraph
        shall not apply to any State law in effect on September 30,
        1996;
          (F) section 1681s-2 of this title, relating to the
        responsibilities of persons who furnish information to consumer
        reporting agencies, except that this paragraph shall not apply -
         
            (i) with respect to section 54A(a) of chapter 93 of the
          Massachusetts Annotated Laws (as in effect on September 30,
          1996); or
            (ii) with respect to section 1785.25(a) of the California
          Civil Code (as in effect on September 30, 1996);

          (G) section 1681g(e) of this title, relating to information
        available to victims under section 1681g(e) of this title;
          (H) section 1681s-3 of this title, relating to the exchange
        and use of information to make a solicitation for marketing
        purposes; or
          (I) section 1681m(h) of this title, relating to the duties of
        users of consumer reports to provide notice with respect to
        terms in certain credit transactions;

        (2) with respect to the exchange of information among persons
      affiliated by common ownership or common corporate control,
      except that this paragraph shall not apply with respect to
      subsection (a) or (c)(1) of section 2480e of title 9, Vermont
      Statutes Annotated (as in effect on September 30, 1996);
        (3) with respect to the disclosures required to be made under
      subsection (c), (d), (e), or (g) of section 1681g of this title,
      or subsection (f) of section 1681g of this title relating to the
      disclosure of credit scores for credit granting purposes, except
      that this paragraph - 
          (A) shall not apply with respect to sections 1785.10,
        1785.16, and 1785.20.2 of the California Civil Code (as in
        effect on December 4, 2003) and section 1785.15 through section
        1785.15.2 of such Code (as in effect on such date);
          (B) shall not apply with respect to sections 5-3-106(2) and
        212-14.3-104.3 of the Colorado Revised Statutes (as in effect
        on December 4, 2003); and
          (C) shall not be construed as limiting, annulling, affecting,
        or superseding any provision of the laws of any State
        regulating the use in an insurance activity, or regulating
        disclosures concerning such use, of a credit-based insurance
        score of a consumer by any person engaged in the business of
        insurance;

        (4) with respect to the frequency of any disclosure under
      section 1681j(a) of this title, except that this paragraph shall
      not apply - 
          (A) with respect to section 12-14.3-105(1)(d) of the Colorado
        Revised Statutes (as in effect on December 4, 2003);
          (B) with respect to section 10-1-393(29)(C) of the Georgia
        Code (as in effect on December 4, 2003);
          (C) with respect to section 1316.2 of title 10 of the Maine
        Revised Statutes (as in effect on December 4, 2003);
          (D) with respect to sections 14-1209(a)(1) and 14-
        1209(b)(1)(i) of the Commercial Law Article of the Code of
        Maryland (as in effect on December 4, 2003);
          (E) with respect to section 59(d) and section 59(e) of
        chapter 93 of the General Laws of Massachusetts (as in effect
        on December 4, 2003);
          (F) with respect to section 56:11-37.10(a)(1) of the New
        Jersey Revised Statutes (as in effect on December 4, 2003); or
          (G) with respect to section 2480c(a)(1) of title 9 of the
        Vermont Statutes Annotated (as in effect on December 4, 2003);
        or

        (5) with respect to the conduct required by the specific
      provisions of - 
          (A) section 1681c(g) of this title;
          (B) section 1681c-1 of this title;
          (C) section 1681c-2 of this title;
          (D) section 1681g(a)(1)(A) of this title;
          (E) section 1681j(a) of this title;
          (F) subsections (e), (f), and (g) of section 1681m of this
        title;
          (G) section 1681s(f) of this title;
          (H) section 1681s-2(a)(6) of this title; or
          (I) section 1681w of this title.
    (c) "Firm offer of credit or insurance" defined
      Notwithstanding any definition of the term "firm offer of credit
    or insurance" (or any equivalent term) under the laws of any State,
    the definition of that term contained in section 1681a(l) of this
    title shall be construed to apply in the enforcement and
    interpretation of the laws of any State governing consumer reports.
    (d) Limitations
      Subsections (b) and (c) of this section do not affect any
    settlement, agreement, or consent judgment between any State
    Attorney General and any consumer reporting agency in effect on
    September 30, 1996.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 625, formerly Sec. 622, as added
    Pub. L. 91-508, title VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1136;
    renumbered Sec. 623, Pub. L. 102-537, Sec. 2(a), Oct. 27, 1992, 106
    Stat. 3531; renumbered Sec. 624 and amended Pub. L. 104-208, div.
    A, title II, Secs. 2413(a)(1), 2419, Sept. 30, 1996, 110 Stat. 3009-
    447, 3009-452; renumbered Sec. 625 and amended Pub. L. 108-159,
    title I, Sec. 151(a)(2), title II, Secs. 212(e), 214(a)(1), (c)(2),
    title III, Sec. 311(b), title VII, Sec. 711, Dec. 4, 2003, 117
    Stat. 1964, 1977, 1980, 1983, 1989, 2011.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 625 of Pub. L. 90-321 was renumbered section 626
    and is classified to section 1681u of this title.

                                AMENDMENTS                            
      2003 - Subsec. (a). Pub. L. 108-159, Sec. 711(1), inserted "or
    for the prevention or mitigation of identity theft," after
    "information on consumers,".
      Subsec. (b)(1)(E). Pub. L. 108-159, Sec. 214(c)(2)(A), struck out
    "or" after semicolon at end.
      Subsec. (b)(1)(G). Pub. L. 108-159, Sec. 151(a)(2), added subpar.
    (G).
      Subsec. (b)(1)(H). Pub. L. 108-159, Sec. 214(c)(2)(B), added
    subpar. (H).
      Subsec. (b)(1)(I). Pub. L. 108-159, Sec. 311(b), added subpar.
    (I).
      Subsec. (b)(3), (4). Pub. L. 108-159, Sec. 212(e), added pars.
    (3) and (4) and struck out former par. (3) which read as follows:
    "with respect to the form and content of any disclosure required to
    be made under section 1681g(c) of this title."
      Subsec. (b)(5). Pub. L. 108-159, Sec. 711(2), added par. (5).
      Subsec. (d). Pub. L. 108-159, Sec. 711(3), substituted "(c) of
    this section" for "(c) of this section - ", struck out par. (1)
    designation before "do not affect", substituted "1996." for "1996;
    and", and struck out par. (2) which read as follows:
      "(2) do not apply to any provision of State law (including any
    provision of a State constitution) that - 
        "(A) is enacted after January 1, 2004;
        "(B) states explicitly that the provision is intended to
      supplement this subchapter; and
        "(C) gives greater protection to consumers than is provided
      under this subchapter."
      1996 - Subsec. (a). Pub. L. 104-208, Sec. 2419(1), designated
    existing provisions as subsec. (a), inserted heading, and
    substituted "Except as provided in subsections (b) and (c) of this
    section, this subchapter" for "This subchapter".
      Subsecs. (b) to (d). Pub. L. 104-208, Sec. 2419(2), added
    subsecs. (b) to (d).

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-159 subject to joint regulations
    establishing effective dates as prescribed by Federal Reserve Board
    and Federal Trade Commission, except as otherwise provided, see
    section 3 of Pub. L. 108-159, set out as a note under section 1681
    of this title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
    1996, with special rule for early compliance, see section 2420 of
    Pub. L. 104-208, set out as a note under section 1681a of this
    title.

-End-



-CITE-
    15 USC Sec. 1681u                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681u. Disclosures to FBI for counterintelligence purposes

-STATUTE-
    (a) Identity of financial institutions
      Notwithstanding section 1681b of this title or any other
    provision of this subchapter, a consumer reporting agency shall
    furnish to the Federal Bureau of Investigation the names and
    addresses of all financial institutions (as that term is defined in
    section 3401 of title 12) at which a consumer maintains or has
    maintained an account, to the extent that information is in the
    files of the agency, when presented with a written request for that
    information, signed by the Director of the Federal Bureau of
    Investigation, or the Director's designee in a position not lower
    than Deputy Assistant Director at Bureau headquarters or a Special
    Agent in Charge of a Bureau field office designated by the
    Director, which certifies compliance with this section. The
    Director or the Director's designee may make such a certification
    only if the Director or the Director's designee has determined in
    writing, that such information is sought for the conduct of an
    authorized investigation to protect against international terrorism
    or clandestine intelligence activities, provided that such an
    investigation of a United States person is not conducted solely
    upon the basis of activities protected by the first amendment to
    the Constitution of the United States.
    (b) Identifying information
      Notwithstanding the provisions of section 1681b of this title or
    any other provision of this subchapter, a consumer reporting agency
    shall furnish identifying information respecting a consumer,
    limited to name, address, former addresses, places of employment,
    or former places of employment, to the Federal Bureau of
    Investigation when presented with a written request, signed by the
    Director or the Director's designee in a position not lower than
    Deputy Assistant Director at Bureau headquarters or a Special Agent
    in Charge of a Bureau field office designated by the Director,
    which certifies compliance with this subsection. The Director or
    the Director's designee may make such a certification only if the
    Director or the Director's designee has determined in writing that
    such information is sought for the conduct of an authorized
    investigation to protect against international terrorism or
    clandestine intelligence activities, provided that such an
    investigation of a United States person is not conducted solely
    upon the basis of activities protected by the first amendment to
    the Constitution of the United States.
    (c) Court order for disclosure of consumer reports
      Notwithstanding section 1681b of this title or any other
    provision of this subchapter, if requested in writing by the
    Director of the Federal Bureau of Investigation, or a designee of
    the Director in a position not lower than Deputy Assistant Director
    at Bureau headquarters or a Special Agent in Charge in a Bureau
    field office designated by the Director, a court may issue an order
    ex parte directing a consumer reporting agency to furnish a
    consumer report to the Federal Bureau of Investigation, upon a
    showing in camera that the consumer report is sought for the
    conduct of an authorized investigation to protect against
    international terrorism or clandestine intelligence activities,
    provided that such an investigation of a United States person is
    not conducted solely upon the basis of activities protected by the
    first amendment to the Constitution of the United States. The terms
    of an order issued under this subsection shall not disclose that
    the order is issued for purposes of a counterintelligence
    investigation.
    (d) Confidentiality
      (1) If the Director of the Federal Bureau of Investigation, or
    his designee in a position not lower than Deputy Assistant Director
    at Bureau headquarters or a Special Agent in Charge in a Bureau
    field office designated by the Director, certifies that otherwise
    there may result a danger to the national security of the United
    States, interference with a criminal, counterterrorism, or
    counterintelligence investigation, interference with diplomatic
    relations, or danger to the life or physical safety of any person,
    no consumer reporting agency or officer, employee, or agent of a
    consumer reporting agency shall disclose to any person (other than
    those to whom such disclosure is necessary to comply with the
    request or an attorney to obtain legal advice or legal assistance
    with respect to the request) that the Federal Bureau of
    Investigation has sought or obtained the identity of financial
    institutions or a consumer report respecting any consumer under
    subsection (a), (b), or (c), and no consumer reporting agency or
    officer, employee, or agent of a consumer reporting agency shall
    include in any consumer report any information that would indicate
    that the Federal Bureau of Investigation has sought or obtained
    such information on a consumer report.
      (2) The request shall notify the person or entity to whom the
    request is directed of the nondisclosure requirement under
    paragraph (1).
      (3) Any recipient disclosing to those persons necessary to comply
    with the request or to an attorney to obtain legal advice or legal
    assistance with respect to the request shall inform such persons of
    any applicable nondisclosure requirement. Any person who receives a
    disclosure under this subsection shall be subject to the same
    prohibitions on disclosure under paragraph (1).
      (4) At the request of the Director of the Federal Bureau of
    Investigation or the designee of the Director, any person making or
    intending to make a disclosure under this section shall identify to
    the Director or such designee the person to whom such disclosure
    will be made or to whom such disclosure was made prior to the
    request, except that nothing in this section shall require a person
    to inform the Director or such designee of the identity of an
    attorney to whom disclosure was made or will be made to obtain
    legal advice or legal assistance with respect to the request for
    the identity of financial institutions or a consumer report
    respecting any consumer under this section.
    (e) Payment of fees
      The Federal Bureau of Investigation shall, subject to the
    availability of appropriations, pay to the consumer reporting
    agency assembling or providing report or information in accordance
    with procedures established under this section a fee for
    reimbursement for such costs as are reasonably necessary and which
    have been directly incurred in searching, reproducing, or
    transporting books, papers, records, or other data required or
    requested to be produced under this section.
    (f) Limit on dissemination
      The Federal Bureau of Investigation may not disseminate
    information obtained pursuant to this section outside of the
    Federal Bureau of Investigation, except to other Federal agencies
    as may be necessary for the approval or conduct of a foreign
    counterintelligence investigation, or, where the information
    concerns a person subject to the Uniform Code of Military Justice,
    to appropriate investigative authorities within the military
    department concerned as may be necessary for the conduct of a joint
    foreign counterintelligence investigation.
    (g) Rules of construction
      Nothing in this section shall be construed to prohibit
    information from being furnished by the Federal Bureau of
    Investigation pursuant to a subpoena or court order, in connection
    with a judicial or administrative proceeding to enforce the
    provisions of this subchapter. Nothing in this section shall be
    construed to authorize or permit the withholding of information
    from the Congress.
    (h) Reports to Congress
      (1) On a semiannual basis, the Attorney General shall fully
    inform the Permanent Select Committee on Intelligence and the
    Committee on Banking, Finance and Urban Affairs of the House of
    Representatives, and the Select Committee on Intelligence and the
    Committee on Banking, Housing, and Urban Affairs of the Senate
    concerning all requests made pursuant to subsections (a), (b), and
    (c) of this section.
      (2) In the case of the semiannual reports required to be
    submitted under paragraph (1) to the Permanent Select Committee on
    Intelligence of the House of Representatives and the Select
    Committee on Intelligence of the Senate, the submittal dates for
    such reports shall be as provided in section 415b of title 50.
    (i) Damages
      Any agency or department of the United States obtaining or
    disclosing any consumer reports, records, or information contained
    therein in violation of this section is liable to the consumer to
    whom such consumer reports, records, or information relate in an
    amount equal to the sum of - 
        (1) $100, without regard to the volume of consumer reports,
      records, or information involved;
        (2) any actual damages sustained by the consumer as a result of
      the disclosure;
        (3) if the violation is found to have been willful or
      intentional, such punitive damages as a court may allow; and
        (4) in the case of any successful action to enforce liability
      under this subsection, the costs of the action, together with
      reasonable attorney fees, as determined by the court.
    (j) Disciplinary actions for violations
      If a court determines that any agency or department of the United
    States has violated any provision of this section and the court
    finds that the circumstances surrounding the violation raise
    questions of whether or not an officer or employee of the agency or
    department acted willfully or intentionally with respect to the
    violation, the agency or department shall promptly initiate a
    proceeding to determine whether or not disciplinary action is
    warranted against the officer or employee who was responsible for
    the violation.
    (k) Good-faith exception
      Notwithstanding any other provision of this subchapter, any
    consumer reporting agency or agent or employee thereof making
    disclosure of consumer reports or identifying information pursuant
    to this subsection in good-faith reliance upon a certification of
    the Federal Bureau of Investigation pursuant to provisions of this
    section shall not be liable to any person for such disclosure under
    this subchapter, the constitution of any State, or any law or
    regulation of any State or any political subdivision of any State.
    (l) Limitation of remedies
      Notwithstanding any other provision of this subchapter, the
    remedies and sanctions set forth in this section shall be the only
    judicial remedies and sanctions for violation of this section.
    (m) Injunctive relief
      In addition to any other remedy contained in this section,
    injunctive relief shall be available to require compliance with the
    procedures of this section. In the event of any successful action
    under this subsection, costs together with reasonable attorney
    fees, as determined by the court, may be recovered.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 626, formerly Sec. 624, as added
    Pub. L. 104-93, title VI, Sec. 601(a), Jan. 6, 1996, 109 Stat. 974;
    renumbered Sec. 625 and amended Pub. L. 107-56, title III, Sec.
    358(g)(1)(A), title V, Sec. 505(c), Oct. 26, 2001, 115 Stat. 327,
    366; Pub. L. 107-306, title VIII, Sec. 811(b)(8)(B), Nov. 27, 2002,
    116 Stat. 2426; renumbered Sec. 626, Pub. L. 108-159, title II,
    Sec. 214(a)(1), Dec. 4, 2003, 117 Stat. 1980; Pub. L. 109-177,
    title I, Sec. 116(b), Mar. 9, 2006, 120 Stat. 214; Pub. L. 109-178,
    Sec. 4(c)(1), Mar. 9, 2006, 120 Stat. 280.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This subchapter, referred to in subsec. (g), was in the original,
    "this Act" and was translated as reading "this title", meaning
    title VI of Pub. L. 90-321, known as the Fair Credit Reporting Act,
    to reflect the probable intent of Congress.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 626 of Pub. L. 90-321 was renumbered section 627
    and is classified to section 1681v of this title.

                                AMENDMENTS                            
      2006 - Subsec. (d). Pub. L. 109-177 reenacted heading without
    change and amended text generally. Prior to amendment, text read as
    follows: "No consumer reporting agency or officer, employee, or
    agent of a consumer reporting agency shall disclose to any person,
    other than those officers, employees, or agents of a consumer
    reporting agency necessary to fulfill the requirement to disclose
    information to the Federal Bureau of Investigation under this
    section, that the Federal Bureau of Investigation has sought or
    obtained the identity of financial institutions or a consumer
    report respecting any consumer under subsection (a), (b), or (c) of
    this section, and no consumer reporting agency or officer,
    employee, or agent of a consumer reporting agency shall include in
    any consumer report any information that would indicate that the
    Federal Bureau of Investigation has sought or obtained such
    information or a consumer report."
      Subsec. (d)(4). Pub. L. 109-178 amended par. (4) generally. Prior
    to amendment, par. (4) read as follows: "At the request of the
    Director of the Federal Bureau of Investigation or the designee of
    the Director, any person making or intending to make a disclosure
    under this section shall identify to the Director or such designee
    the person to whom such disclosure will be made or to whom such
    disclosure was made prior to the request, but in no circumstance
    shall a person be required to inform the Director or such designee
    that the person intends to consult an attorney to obtain legal
    advice or legal assistance."
      2002 - Subsec. (h). Pub. L. 107-306 designated existing
    provisions as par. (1) and added par. (2).
      2001 - Pub. L. 107-56, Sec. 505(c), which directed amendment of
    section 624 of the Fair Credit Reporting Act, was executed by
    making the amendment to this section to reflect the probable intent
    of Congress and the renumbering of section 624 as 625 by section
    358(g)(1)(A) of Pub. L. 107-56. See below.
      Subsec. (a). Pub. L. 107-56, Sec. 505(c)(1), inserted "in a
    position not lower than Deputy Assistant Director at Bureau
    headquarters or a Special Agent in Charge of a Bureau field office
    designated by the Director" after "Investigation, or the Director's
    designee" and substituted "in writing, that such information is
    sought for the conduct of an authorized investigation to protect
    against international terrorism or clandestine intelligence
    activities, provided that such an investigation of a United States
    person is not conducted solely upon the basis of activities
    protected by the first amendment to the Constitution of the United
    States." for pars. (1) and (2) requiring determination in writing
    that the information requested is necessary for the conduct of an
    authorized foreign counterintelligence investigation and that there
    are specific and articulable facts giving reason to believe that
    the consumer is a foreign power or a person who is not a United
    States person and is an official of a foreign power, or that the
    consumer is an agent of a foreign power and is engaging or has
    engaged in an act of international terrorism or clandestine
    intelligence activities that involve or may involve a violation of
    criminal statutes of the United States.
      Subsec. (b). Pub. L. 107-56, Sec. 505(c)(2), inserted "in a
    position not lower than Deputy Assistant Director at Bureau
    headquarters or a Special Agent in Charge of a Bureau field office
    designated by the Director" after "signed by the Director or the
    Director's designee" and substituted "in writing that such
    information is sought for the conduct of an authorized
    investigation to protect against international terrorism or
    clandestine intelligence activities, provided that such an
    investigation of a United States person is not conducted solely
    upon the basis of activities protected by the first amendment to
    the Constitution of the United States." for pars. (1) and (2)
    requiring determination in writing that the information requested
    is necessary to the conduct of an authorized counterintelligence
    investigation and that there is information giving reason to
    believe that the consumer has been, or is about to be, in contact
    with a foreign power or an agent of a foreign power.
      Subsec. (c). Pub. L. 107-56, Sec. 505(c)(3), inserted "in a
    position not lower than Deputy Assistant Director at Bureau
    headquarters or a Special Agent in Charge in a Bureau field office
    designated by the Director" after "designee of the Director" and
    substituted "in camera that the consumer report is sought for the
    conduct of an authorized investigation to protect against
    international terrorism or clandestine intelligence activities,
    provided that such an investigation of a United States person is
    not conducted solely upon the basis of activities protected by the
    first amendment to the Constitution of the United States." for
    pars. (1) and (2) requiring a showing in camera that the consumer
    report is necessary for the conduct of an authorized foreign
    counterintelligence investigation and there are specific and
    articulable facts giving reason to believe that the consumer whose
    consumer report is sought is an agent of a foreign power and is
    engaging or has engaged in an act of international terrorism or in
    clandestine intelligence activities that involve or may involve a
    violation of criminal statutes of the United States.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Banking, Finance and Urban Affairs of House of
    Representatives treated as referring to Committee on Banking and
    Financial Services of House of Representatives by section 1(a) of
    Pub. L. 104-14, set out as a note preceding section 21 of Title 2,
    The Congress. Committee on Banking and Financial Services of House
    of Representatives abolished and replaced by Committee on Financial
    Services of House of Representatives, and jurisdiction over matters
    relating to securities and exchanges and insurance generally
    transferred from Committee on Energy and Commerce of House of
    Representatives by House Resolution No. 5, One Hundred Seventh
    Congress, Jan. 3, 2001.


-MISC2-
                     EFFECTIVE DATE OF 2001 AMENDMENT                 
      Amendment by section 358(g)(1)(A) of Pub. L. 107-56 applicable
    with respect to reports filed or records maintained on, before, or
    after Oct. 26, 2001, see section 358(h) of Pub. L. 107-56, set out
    as a note under section 1829b of this Title 12, Banks and Banking.

-End-



-CITE-
    15 USC Sec. 1681v                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681v. Disclosures to governmental agencies for
      counterterrorism purposes

-STATUTE-
    (a) Disclosure
      Notwithstanding section 1681b of this title or any other
    provision of this subchapter, a consumer reporting agency shall
    furnish a consumer report of a consumer and all other information
    in a consumer's file to a government agency authorized to conduct
    investigations of, or intelligence or counterintelligence
    activities or analysis related to, international terrorism when
    presented with a written certification by such government agency
    that such information is necessary for the agency's conduct or such
    investigation, activity or analysis.
    (b) Form of certification
      The certification described in subsection (a) of this section
    shall be signed by a supervisory official designated by the head of
    a Federal agency or an officer of a Federal agency whose
    appointment to office is required to be made by the President, by
    and with the advice and consent of the Senate.
    (c) Confidentiality
      (1) If the head of a government agency authorized to conduct
    investigations of intelligence or counterintelligence activities or
    analysis related to international terrorism, or his designee,
    certifies that otherwise there may result a danger to the national
    security of the United States, interference with a criminal,
    counterterrorism, or counterintelligence investigation,
    interference with diplomatic relations, or danger to the life or
    physical safety of any person, no consumer reporting agency or
    officer, employee, or agent of such consumer reporting agency,
    shall disclose to any person (other than those to whom such
    disclosure is necessary to comply with the request or an attorney
    to obtain legal advice or legal assistance with respect to the
    request), or specify in any consumer report, that a government
    agency has sought or obtained access to information under
    subsection (a).
      (2) The request shall notify the person or entity to whom the
    request is directed of the nondisclosure requirement under
    paragraph (1).
      (3) Any recipient disclosing to those persons necessary to comply
    with the request or to any attorney to obtain legal advice or legal
    assistance with respect to the request shall inform such persons of
    any applicable nondisclosure requirement. Any person who receives a
    disclosure under this subsection shall be subject to the same
    prohibitions on disclosure under paragraph (1).
      (4) At the request of the authorized government agency, any
    person making or intending to make a disclosure under this section
    shall identify to the requesting official of the authorized
    government agency the person to whom such disclosure will be made
    or to whom such disclosure was made prior to the request, except
    that nothing in this section shall require a person to inform the
    requesting official of the identity of an attorney to whom
    disclosure was made or will be made to obtain legal advice or legal
    assistance with respect to the request for information under
    subsection (a).
    (d) Rule of construction
      Nothing in section 1681u of this title shall be construed to
    limit the authority of the Director of the Federal Bureau of
    Investigation under this section.
    (e) Safe harbor
      Notwithstanding any other provision of this subchapter, any
    consumer reporting agency or agent or employee thereof making
    disclosure of consumer reports or other information pursuant to
    this section in good-faith reliance upon a certification of a
    government agency pursuant to the provisions of this section shall
    not be liable to any person for such disclosure under this
    subchapter, the constitution of any State, or any law or regulation
    of any State or any political subdivision of any State.
    (f) Reports to Congress
      (1) On a semi-annual basis, the Attorney General shall fully
    inform the Committee on the Judiciary, the Committee on Financial
    Services, and the Permanent Select Committee on Intelligence of the
    House of Representatives and the Committee on the Judiciary, the
    Committee on Banking, Housing, and Urban Affairs, and the Select
    Committee on Intelligence of the Senate concerning all requests
    made pursuant to subsection (a).
      (2) In the case of the semiannual reports required to be
    submitted under paragraph (1) to the Permanent Select Committee on
    Intelligence of the House of Representatives and the Select
    Committee on Intelligence of the Senate, the submittal dates for
    such reports shall be as provided in section 415b of title 50.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 627, formerly Sec. 626, as added
    Pub. L. 107-56, title III, Sec. 358(g)(1)(B), Oct. 26, 2001, 115
    Stat. 327; renumbered Sec. 627 and amended Pub. L. 108-159, title
    II, Sec. 214(a)(1), (c)(3), Dec. 4, 2003, 117 Stat. 1980, 1983;
    Pub. L. 108-458, title VI, Sec. 6203(l), Dec. 17, 2004, 118 Stat.
    3747; Pub. L. 109-177, title I, Secs. 116(c), 118(b), Mar. 9, 2006,
    120 Stat. 214, 217; Pub. L. 109-178, Sec. 4(c)(2), Mar. 9, 2006,
    120 Stat. 280.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (c). Pub. L. 109-177, Sec. 116(c), amended subsec.
    (c) generally. Prior to amendment, text read as follows: "No
    consumer reporting agency, or officer, employee, or agent of such
    consumer reporting agency, shall disclose to any person, or specify
    in any consumer report, that a government agency has sought or
    obtained access to information under subsection (a) of this
    section."
      Subsec. (c)(4). Pub. L. 109-178 amended par. (4) generally. Prior
    to amendment, par. (4) read as follows: "At the request of the
    authorized Government agency, any person making or intending to
    make a disclosure under this section shall identify to the
    requesting official of the authorized Government agency the person
    to whom such disclosure will be made or to whom such disclosure was
    made prior to the request, but in no circumstance shall a person be
    required to inform such requesting official that the person intends
    to consult an attorney to obtain legal advice or legal assistance."
      Subsec. (f). Pub. L. 109-177, Sec. 118(b), added subsec. (f).
      2004 - Subsec. (e). Pub. L. 108-458 substituted "government
    agency" for "governmental agency".
      2003 - Subsec. (d). Pub. L. 108-159, Sec. 214(c)(3), made
    technical amendment to reference in original act which appears in
    text as reference to section 1681u of this title.

                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Amendment by Pub. L. 108-458 effective as if included in Pub. L.
    107-56, as of the date of enactment of such Act, see section 6205
    of Pub. L. 108-458, set out as a note under section 1828 of Title
    12, Banks and Banking.

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Amendment by Pub. L. 108-159 subject to joint regulations
    establishing effective dates as prescribed by Federal Reserve Board
    and Federal Trade Commission, except as otherwise provided, see
    section 3 of Pub. L. 108-159, set out as a note under section 1681
    of this title.

                              EFFECTIVE DATE                          
      Section applicable with respect to reports filed or records
    maintained on, before, or after Oct. 26, 2001, see section 358(h)
    of Pub. L. 107-56, set out as an Effective Date of 2001 Amendment
    note under section 1829b of this Title 12, Banks and Banking.

-End-



-CITE-
    15 USC Sec. 1681w                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681w. Disposal of records

-STATUTE-
    (a) Regulations
      (1) In general
        Not later than 1 year after December 4, 2003, the Federal
      banking agencies, the National Credit Union Administration, and
      the Commission with respect to the entities that are subject to
      their respective enforcement authority under section 1681s of
      this title, and the Securities and Exchange Commission, and in
      coordination as described in paragraph (2), shall issue final
      regulations requiring any person that maintains or otherwise
      possesses consumer information, or any compilation of consumer
      information, derived from consumer reports for a business purpose
      to properly dispose of any such information or compilation.
      (2) Coordination
        Each agency required to prescribe regulations under paragraph
      (1) shall - 
          (A) consult and coordinate with each other such agency so
        that, to the extent possible, the regulations prescribed by
        each such agency are consistent and comparable with the
        regulations by each such other agency; and
          (B) ensure that such regulations are consistent with the
        requirements and regulations issued pursuant to Public Law 106-
        102 and other provisions of Federal law.
      (3) Exemption authority
        In issuing regulations under this section, the Federal banking
      agencies, the National Credit Union Administration, the
      Commission, and the Securities and Exchange Commission may exempt
      any person or class of persons from application of those
      regulations, as such agency deems appropriate to carry out the
      purpose of this section.
    (b) Rule of construction
      Nothing in this section shall be construed - 
        (1) to require a person to maintain or destroy any record
      pertaining to a consumer that is not imposed under other law; or
        (2) to alter or affect any requirement imposed under any other
      provision of law to maintain or destroy such a record.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 628, as added Pub. L. 108-159,
    title II, Sec. 216(a), Dec. 4, 2003, 117 Stat. 1985.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Public Law 106-102, referred to in subsec. (a)(2)(B), is Pub. L.
    106-102, Nov. 12, 1999, 113 Stat. 1338, as amended, known as the
    Gramm-Leach-Bliley Act. For complete classification of this Act to
    the Code, see Short Title of 1999 Amendment note set out under
    section 1811 of Title 12, Banks and Banking, and Tables.


-MISC1-
                              EFFECTIVE DATE                          
      Section subject to joint regulations establishing effective dates
    as prescribed by Federal Reserve Board and Federal Trade
    Commission, except as otherwise provided, see section 3 of Pub. L.
    108-159, set out as an Effective Date of 2003 Amendment note under
    section 1681 of this title.

-End-



-CITE-
    15 USC Sec. 1681x                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER III - CREDIT REPORTING AGENCIES

-HEAD-
    Sec. 1681x. Corporate and technological circumvention prohibited

-STATUTE-
      The Commission shall prescribe regulations, to become effective
    not later than 90 days after December 4, 2003, to prevent a
    consumer reporting agency from circumventing or evading treatment
    as a consumer reporting agency described in section 1681a(p) of
    this title for purposes of this subchapter, including - 
        (1) by means of a corporate reorganization or restructuring,
      including a merger, acquisition, dissolution, divestiture, or
      asset sale of a consumer reporting agency; or
        (2) by maintaining or merging public record and credit account
      information in a manner that is substantially equivalent to that
      described in paragraphs (1) and (2) of section 1681a(p) of this
      title, in the manner described in section 1681a(p) of this title.

-SOURCE-
    (Pub. L. 90-321, title VI, Sec. 629, as added Pub. L. 108-159,
    title II, Sec. 211(b), Dec. 4, 2003, 117 Stat. 1970.)


-MISC1-
                              EFFECTIVE DATE                          
      Section subject to joint regulations establishing effective dates
    as prescribed by Federal Reserve Board and Federal Trade
    Commission, except as otherwise provided, see section 3 of Pub. L.
    108-159, set out as an Effective Date of 2003 Amendment note under
    section 1681 of this title.

-End-


-CITE-
    15 USC SUBCHAPTER IV - EQUAL CREDIT OPPORTUNITY             01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER IV - EQUAL CREDIT OPPORTUNITY

-HEAD-
                 SUBCHAPTER IV - EQUAL CREDIT OPPORTUNITY             

-End-



-CITE-
    15 USC Sec. 1691                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER IV - EQUAL CREDIT OPPORTUNITY

-HEAD-
    Sec. 1691. Scope of prohibition

-STATUTE-
    (a) Activities constituting discrimination
      It shall be unlawful for any creditor to discriminate against any
    applicant, with respect to any aspect of a credit transaction - 
        (1) on the basis of race, color, religion, national origin, sex
      or marital status, or age (provided the applicant has the
      capacity to contract);
        (2) because all or part of the applicant's income derives from
      any public assistance program; or
        (3) because the applicant has in good faith exercised any right
      under this chapter.
    (b) Activities not constituting discrimination
      It shall not constitute discrimination for purposes of this
    subchapter for a creditor - 
        (1) to make an inquiry of marital status if such inquiry is for
      the purpose of ascertaining the creditor's rights and remedies
      applicable to the particular extension of credit and not to
      discriminate in a determination of credit-worthiness; (!1)

        (2) to make an inquiry of the applicant's age or of whether the
      applicant's income derives from any public assistance program if
      such inquiry is for the purpose of determining the amount and
      probable continuance of income levels, credit history, or other
      pertinent element of credit-worthiness (!1) as provided in
      regulations of the Board;
        (3) to use any empirically derived credit system which
      considers age if such system is demonstrably and statistically
      sound in accordance with regulations of the Board, except that in
      the operation of such system the age of an elderly applicant may
      not be assigned a negative factor or value; or
        (4) to make an inquiry or to consider the age of an elderly
      applicant when the age of such applicant is to be used by the
      creditor in the extension of credit in favor of such applicant.
    (c) Additional activities not constituting discrimination
      It is not a violation of this section for a creditor to refuse to
    extend credit offered pursuant to - 
        (1) any credit assistance program expressly authorized by law
      for an economically disadvantaged class of persons;
        (2) any credit assistance program administered by a nonprofit
      organization for its members or an economically disadvantaged
      class of persons; or
        (3) any special purpose credit program offered by a profit-
      making organization to meet special social needs which meets
      standards prescribed in regulations by the Board;

    if such refusal is required by or made pursuant to such program.
    (d) Reason for adverse action; procedure applicable; "adverse
      action" defined
      (1) Within thirty days (or such longer reasonable time as
    specified in regulations of the Board for any class of credit
    transaction) after receipt of a completed application for credit, a
    creditor shall notify the applicant of its action on the
    application.
      (2) Each applicant against whom adverse action is taken shall be
    entitled to a statement of reasons for such action from the
    creditor. A creditor satisfies this obligation by - 
        (A) providing statements of reasons in writing as a matter of
      course to applicants against whom adverse action is taken; or
        (B) giving written notification of adverse action which
      discloses (i) the applicant's right to a statement of reasons
      within thirty days after receipt by the creditor of a request
      made within sixty days after such notification, and (ii) the
      identity of the person or office from which such statement may be
      obtained. Such statement may be given orally if the written
      notification advises the applicant of his right to have the
      statement of reasons confirmed in writing on written request.

      (3) A statement of reasons meets the requirements of this section
    only if it contains the specific reasons for the adverse action
    taken.
      (4) Where a creditor has been requested by a third party to make
    a specific extension of credit directly or indirectly to an
    applicant, the notification and statement of reasons required by
    this subsection may be made directly by such creditor, or
    indirectly through the third party, provided in either case that
    the identity of the creditor is disclosed.
      (5) The requirements of paragraph (2), (3), or (4) may be
    satisfied by verbal statements or notifications in the case of any
    creditor who did not act on more than one hundred and fifty
    applications during the calendar year preceding the calendar year
    in which the adverse action is taken, as determined under
    regulations of the Board.
      (6) For purposes of this subsection, the term "adverse action"
    means a denial or revocation of credit, a change in the terms of an
    existing credit arrangement, or a refusal to grant credit in
    substantially the amount or on substantially the terms requested.
    Such term does not include a refusal to extend additional credit
    under an existing credit arrangement where the applicant is
    delinquent or otherwise in default, or where such additional credit
    would exceed a previously established credit limit.
    (e) Appraisals; copies of reports to applicants; costs
      Each creditor shall promptly furnish an applicant, upon written
    request by the applicant made within a reasonable period of time of
    the application, a copy of the appraisal report used in connection
    with the applicant's application for a loan that is or would have
    been secured by a lien on residential real property. The creditor
    may require the applicant to reimburse the creditor for the cost of
    the appraisal.

-SOURCE-
    (Pub. L. 90-321, title VII, Sec. 701, as added Pub. L. 93-495,
    title V, Sec. 503, Oct. 28, 1974, 88 Stat. 1521; amended Pub. L. 94-
    239, Sec. 2, Mar. 23, 1976, 90 Stat. 251; Pub. L. 102-242, title
    II, Sec. 223(d), Dec. 19, 1991, 105 Stat. 2306.)


-MISC1-
                                AMENDMENTS                            
      1991 - Subsec. (e). Pub. L. 102-242 added subsec. (e).
      1976 - Subsec. (a). Pub. L. 94-239 designated existing provisions
    as cl. (1), expanded prohibition against discrimination to include
    race, color, religion, national origin and age, and added cls. (2)
    and (3).
      Subsec. (b). Pub. L. 94-239 designated existing provisions as cl.
    (1) and added cls. (2) to (4).
      Subsecs. (c), (d). Pub. L. 94-239 added subsecs. (c) and (d).

                              EFFECTIVE DATE                          
      Section 708, formerly Sec. 707, of title VII of Pub. L. 90-321,
    as added by Pub. L. 93-495, title V, Sec. 503, Oct. 28, 1974, 88
    Stat. 1525, renumbered and amended by Pub. L. 94-239, Secs. 7, 8,
    Mar. 23, 1976, 90 Stat. 255, provided that: "This title [enacting
    this subchapter and provisions set out as notes under section 1691
    of this title] takes effect upon the expiration of one year after
    the date of its enactment [Oct. 28, 1974]. The amendments made by
    the Equal Credit Opportunity Act Amendments of 1976 [enacting
    section 1691f of this title, amending this section and sections
    1691b, 1691c, 1691d, and 1691e of this title, repealing section
    1609 of this title, enacting provisions set out as notes under this
    section, and repealing provisions set out as a note under this
    section] shall take effect on the date of enactment thereof [Mar.
    23, 1976] and shall apply to any violation occurring on or after
    such date, except that the amendments made to section 701 of the
    Equal Credit Opportunity Act [this section] shall take effect 12
    months after the date of enactment [Mar. 23, 1976]."

                                SHORT TITLE                            
      This subchapter known as the "Equal Credit Opportunity Act", see
    Short Title note set out under section 1601 of this title.

              CONGRESSIONAL FINDINGS AND STATEMENT OF PURPOSE          
      Section 502 of Pub. L. 93-495 provided that: "The Congress finds
    that there is a need to insure that the various financial
    institutions and other firms engaged in the extensions of credit
    exercise their responsibility to make credit available with
    fairness, impartiality, and without discrimination on the basis of
    sex or marital status. Economic stabilization would be enhanced and
    competition among the various financial institutions and other
    firms engaged in the extension of credit would be strengthened by
    an absence of discrimination on the basis of sex or marital status,
    as well as by the informed use of credit which Congress has
    heretofore sought to promote. It is the purpose of this Act [see
    Short Title note set out under section 1601 of this title] to
    require that financial institutions and other firms engaged in the
    extension of credit make that credit equally available to all
    credit-worthy customers without regard to sex or marital status."

-FOOTNOTE-               

    (!1) So in original. Probably should not be hyphenated.


-End-



-CITE-
    15 USC Sec. 1691a                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER IV - EQUAL CREDIT OPPORTUNITY

-HEAD-
    Sec. 1691a. Definitions; rules of construction

-STATUTE-
      (a) The definitions and rules of construction set forth in this
    section are applicable for the purposes of this subchapter.
      (b) The term "applicant" means any person who applies to a
    creditor directly for an extension, renewal, or continuation of
    credit, or applies to a creditor indirectly by use of an existing
    credit plan for an amount exceeding a previously established credit
    limit.
      (c) The term "Board" refers to the Board of Governors of the
    Federal Reserve System.
      (d) The term "credit" means the right granted by a creditor to a
    debtor to defer payment of debt or to incur debts and defer its
    payment or to purchase property or services and defer payment
    therefor.
      (e) The term "creditor" means any person who regularly extends,
    renews, or continues credit; any person who regularly arranges for
    the extension, renewal, or continuation of credit; or any assignee
    of an original creditor who participates in the decision to extend,
    renew, or continue credit.
      (f) The term "person" means a natural person, a corporation,
    government or governmental subdivision or agency, trust, estate,
    partnership, cooperative, or association.
      (g) Any reference to any requirement imposed under this
    subchapter or any provision thereof includes reference to the
    regulations of the Board under this subchapter or the provision
    thereof in question.

-SOURCE-
    (Pub. L. 90-321, title VII, Sec. 702, as added Pub. L. 93-495,
    title V, Sec. 503, Oct. 28, 1974, 88 Stat. 1522.)

-End-



-CITE-
    15 USC Sec. 1691b                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER IV - EQUAL CREDIT OPPORTUNITY

-HEAD-
    Sec. 1691b. Promulgation of regulations by Board; establishment of
      Consumer Advisory Council by Board; duties, membership, etc., of
      Council

-STATUTE-
    (a) Regulations
      (1) The Board shall prescribe regulations to carry out the
    purposes of this subchapter. These regulations may contain but are
    not limited to such classifications, differentiation, or other
    provision, and may provide for such adjustments and exceptions for
    any class of transactions, as in the judgment of the Board are
    necessary or proper to effectuate the purposes of this subchapter,
    to prevent circumvention or evasion thereof, or to facilitate or
    substantiate compliance therewith.
      (2) Such regulations may exempt from the provisions of this
    subchapter any class of transactions that are not primarily for
    personal, family, or household purposes, or business or commercial
    loans made available by a financial institution, except that a
    particular type within a class of such transactions may be exempted
    if the Board determines, after making an express finding that the
    application of this subchapter or of any provision of this
    subchapter of such transaction would not contribute substantially
    to effecting the purposes of this subchapter.
      (3) An exemption granted pursuant to paragraph (2) shall be for
    no longer than five years and shall be extended only if the Board
    makes a subsequent determination, in the manner described by such
    paragraph, that such exemption remains appropriate.
      (4) Pursuant to Board regulations, entities making business or
    commercial loans shall maintain such records or other data relating
    to such loans as may be necessary to evidence compliance with this
    subsection or enforce any action pursuant to the authority of this
    chapter. In no event shall such records or data be maintained for a
    period of less than one year. The Board shall promulgate
    regulations to implement this paragraph in the manner prescribed by
    chapter 5 of title 5.
      (5) The Board shall provide in regulations that an applicant for
    a business or commercial loan shall be provided a written notice of
    such applicant's right to receive a written statement of the
    reasons for the denial of such loan.
    (b) Consumer Advisory Council
      The Board shall establish a Consumer Advisory Council to advise
    and consult with it in the exercise of its functions under this
    chapter and to advise and consult with it concerning other consumer
    related matters it may place before the Council. In appointing the
    members of the Council, the Board shall seek to achieve a fair
    representation of the interests of creditors and consumers. The
    Council shall meet from time to time at the call of the Board.
    Members of the Council who are not regular full-time employees of
    the United States shall, while attending meetings of such Council,
    be entitled to receive compensation at a rate fixed by the Board,
    but not exceeding $100 per day, including travel time. Such members
    may be allowed travel expenses, including transportation and
    subsistence, while away from their homes or regular place of
    business.

-SOURCE-
    (Pub. L. 90-321, title VII, Sec. 703, as added Pub. L. 93-495,
    title V, Sec. 503, Oct. 28, 1974, 88 Stat. 1522; amended Pub. L. 94-
    239, Sec. 3(a), Mar. 23, 1976, 90 Stat. 252; Pub. L. 100-533,
    title III, Sec. 301, Oct. 25, 1988, 102 Stat. 2692.)


-MISC1-
                                AMENDMENTS                            
      1988 - Subsec. (a). Pub. L. 100-533 amended subsec. (a)
    generally. Prior to amendment, subsec. (a) read as follows: "The
    Board shall prescribe regulations to carry out the purposes of this
    subchapter. These regulations may contain but are not limited to
    such classifications, differentiation, or other provision, and may
    provide for such adjustments and exceptions for any class of
    transactions, as in the judgment of the Board are necessary or
    proper to effectuate the purposes of this subchapter, to prevent
    circumvention or evasion thereof, or to facilitate or substantiate
    compliance therewith. In particular, such regulations may exempt
    from one or more of the provisions of this subchapter any class of
    transactions not primarily for personal, family, or household
    purposes, if the Board makes an express finding that the
    application of such provision or provisions would not contribute
    substantially to carrying out the purposes of this subchapter. Such
    regulations shall be prescribed as soon as possible after the date
    of enactment of this Act, but in no event later than the effective
    date of this Act."
      1976 - Pub. L. 94-239 designated existing provisions as subsec.
    (a), inserted provisions exempting from regulations of this
    subchapter any class of transactions not primarily for personal,
    family, or household purposes to be determined by the Board, and
    added subsec. (b).

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-239 effective Mar. 23, 1976, see section
    708 of Pub. L. 90-321, set out as an Effective Date note under
    section 1691 of this title.

-End-



-CITE-
    15 USC Sec. 1691c                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER IV - EQUAL CREDIT OPPORTUNITY

-HEAD-
    Sec. 1691c. Administrative enforcement

-STATUTE-
    (a) Enforcing agencies
      Compliance with the requirements imposed under this subchapter
    shall be enforced under:
        (1) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
      1818], in the case of - 
          (A) national banks, and Federal branches and Federal agencies
        of foreign banks, by the Office of the Comptroller of the
        Currency;
          (B) member banks of the Federal Reserve System (other than
        national banks), branches and agencies of foreign banks (other
        than Federal branches, Federal agencies, and insured State
        branches of foreign banks), commercial lending companies owned
        or controlled by foreign banks, and organizations operating
        under section 25 or 25(a) (!1) of the Federal Reserve Act [12
        U.S.C. 601 et seq., 611 et seq.], by the Board; and

          (C) banks insured by the Federal Deposit Insurance
        Corporation (other than members of the Federal Reserve System)
        and insured State branches of foreign banks, by the Board of
        Directors of the Federal Deposit Insurance Corporation;

        (2) Section 8 of the Federal Deposit Insurance Act [12 U.S.C.
      1818], by the Director of the Office of Thrift Supervision, in
      the case of a savings association the deposits of which are
      insured by the Federal Deposit Insurance Corporation.
        (3) The Federal Credit Union Act [12 U.S.C. 1751 et seq.], by
      the Administrator of the National Credit Union Administration
      with respect to any Federal Credit Union.
        (4) Subtitle IV of title 49, by the Secretary of
      Transportation, with respect to all carriers subject to the
      jurisdiction of the Surface Transportation Board.
        (5) Part A of subtitle VII of title 49, by the Secretary of
      Transportation with respect to any air carrier or foreign air
      carrier subject to that part.
        (6) The Packers and Stockyards Act, 1921 [7 U.S.C. 181 et seq.]
      (except as provided in section 406 of that Act [7 U.S.C. 226,
      227]), by the Secretary of Agriculture with respect to any
      activities subject to that Act.
        (7) The Farm Credit Act of 1971 [12 U.S.C. 2001 et seq.], by
      the Farm Credit Administration with respect to any Federal land
      bank, Federal land bank association, Federal intermediate credit
      bank, and production credit association;
        (8) The Securities Exchange Act of 1934 [15 U.S.C. 78a et
      seq.], by the Securities and Exchange Commission with respect to
      brokers and dealers; and
        (9) The Small Business Investment Act of 1958 [15 U.S.C. 661 et
      seq.], by the Small Business Administration, with respect to
      small business investment companies.

    The terms used in paragraph (1) that are not defined in this
    subchapter or otherwise defined in section 3(s) of the Federal
    Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning
    given to them in section 1(b) of the International Banking Act of
    1978 (12 U.S.C. 3101).
    (b) Violations of subchapter deemed violations of preexisting
      statutory requirements; additional agency powers
      For the purpose of the exercise by any agency referred to in
    subsection (a) of this section of its powers under any Act referred
    to in that subsection, a violation of any requirement imposed under
    this subchapter 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 (a) of this
    section, each of the agencies referred to in that subsection may
    exercise for the purpose of enforcing compliance with any
    requirement imposed under this subchapter, any other authority
    conferred on it by law. The exercise of the authorities of any of
    the agencies referred to in subsection (a) of this section for the
    purpose of enforcing compliance with any requirement imposed under
    this subchapter shall in no way preclude the exercise of such
    authorities for the purpose of enforcing compliance with any other
    provision of law not relating to the prohibition of discrimination
    on the basis of sex or marital status with respect to any aspect of
    a credit transaction.
    (c) Overall enforcement authority of Federal Trade Commission
      Except to the extent that enforcement of the requirements imposed
    under this subchapter is specifically committed to some other
    Government agency under subsection (a) of this section, the Federal
    Trade Commission shall enforce such requirements. For the purpose
    of the exercise by the Federal Trade Commission of its functions
    and powers under the Federal Trade Commission Act [15 U.S.C. 41 et
    seq.], a violation of any requirement imposed under this subchapter
    shall be deemed a violation of a requirement imposed under that
    Act. All of the functions and powers of the Federal Trade
    Commission under the Federal Trade Commission Act are available to
    the Commission to enforce compliance by any person with the
    requirements imposed under this subchapter, irrespective of whether
    that person is engaged in commerce or meets any other
    jurisdictional tests in the Federal Trade Commission Act, including
    the power to enforce any Federal Reserve Board regulation
    promulgated under this subchapter in the same manner as if the
    violation had been a violation of a Federal Trade Commission trade
    regulation rule.
    (d) Rules and regulations by enforcing agencies
      The authority of the Board to issue regulations under this
    subchapter does not impair the authority of any other agency
    designated in this section to make rules respecting its own
    procedures in enforcing compliance with requirements imposed under
    this subchapter.

-SOURCE-
    (Pub. L. 90-321, title VII, Sec. 704, as added Pub. L. 93-495,
    title V, Sec. 503, Oct. 28, 1974, 88 Stat. 1522; amended Pub. L. 94-
    239, Sec. 4, Mar. 23, 1976, 90 Stat. 253; Pub. L. 98-443, Sec.
    9(n), Oct. 4, 1984, 98 Stat. 1708; Pub. L. 101-73, title VII, Sec.
    744(m), Aug. 9, 1989, 103 Stat. 439; Pub. L. 102-242, title II,
    Sec. 212(d), Dec. 19, 1991, 105 Stat. 2300; Pub. L. 102-550, title
    XVI, Sec. 1604(a)(7), Oct. 28, 1992, 106 Stat. 4082; Pub. L. 104-
    88, title III, Sec. 315, Dec. 29, 1995, 109 Stat. 948.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 25(a) of the Federal Reserve Act, referred to in subsec.
    (a)(1)(B), which is classified to subchapter II (Sec. 611 et seq.)
    of chapter 6 of Title 12, Banks and Banking, was renumbered section
    25A of that act by Pub. L. 102-242, title I, Sec. 142(e)(2), Dec.
    19, 1991, 105 Stat. 2281. Section 25 of the Federal Reserve Act is
    classified to subchapter I (Sec. 601 et seq.) of chapter 6 of Title
    12.
      The Federal Credit Union Act, referred to in subsec. (a)(3), is
    act June 26, 1934, ch. 750, 48 Stat. 1216, as amended, which is
    classified generally to chapter 14 (Sec. 1751 et seq.) of Title 12.
    For complete classification of this Act to the Code, see section
    1751 of Title 12 and Tables.
      The Packers and Stockyards Act, 1921, referred to in subsec.
    (a)(6), is act Aug. 15, 1921, ch. 64, 42 Stat. 159, as amended,
    which is classified to chapter 9 (Sec. 181 et seq.) of Title 7,
    Agriculture. For complete classification of this Act to the Code,
    see section 181 of Title 7 and Tables.
      The Farm Credit Act of 1971, referred to in subsec. (a)(7), is
    Pub. L. 92-181, Dec. 10, 1971, 85 Stat. 583, as amended, which is
    classified generally to chapter 23 (Sec. 2001 et seq.) of Title 12,
    Banks and Banking. For complete classification of this Act to the
    Code, see Short Title note set out under section 2001 of Title 12
    and Tables.
      The Securities Exchange Act of 1934, referred to in subsec.
    (a)(8), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended,
    which is classified principally to chapter 2B (Sec. 78a et seq.) of
    this title. For complete classification of this Act to the Code,
    see Codification note set out under section 78a of this title and
    Tables.
      The Small Business Investment Act of 1958, referred to in subsec.
    (a)(9), is Pub. L. 85-699, Aug. 21, 1958, 72 Stat. 689, as amended,
    which is classified principally to chapter 14B (Sec. 661 et seq.)
    of this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 661 of this title and
    Tables.
      The Federal Trade Commission Act, referred to in subsec. (c), is
    act Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended, which is
    classified generally to subchapter I (Sec. 41 et seq.) of chapter 2
    of this title. For complete classification of this Act to the Code,
    see section 58 of this title and Tables.

-COD-
                               CODIFICATION                           
      In subsec. (a)(4), "Subtitle IV of title 49" substituted for "The
    Acts to regulate commerce" on authority of Pub. L. 95-473, Sec.
    3(b), Oct. 17, 1978, 92 Stat. 1466, the first section of which
    enacted subtitle IV of Title 49, Transportation.
      In subsec. (a)(5), "Part A of subtitle VII of title 49"
    substituted for "The Federal Aviation Act of 1958 [49 App. U.S.C.
    1301 et seq.]" and "that part" substituted for "that Act" on
    authority of Pub. L. 103-272, Sec. 6(b), July 5, 1994, 108 Stat.
    1378, the first section of which enacted subtitles II, III, and V
    to X of Title 49.


-MISC1-
                                AMENDMENTS                            
      1995 - Subsec. (a)(4). Pub. L. 104-88 substituted "Secretary of
    Transportation, with respect to all carriers subject to the
    jurisdiction of the Surface Transportation Board" for "Interstate
    Commerce Commission with respect to any common carrier subject to
    those Acts".
      1992 - Subsec. (a)(1)(C). Pub. L. 102-550 substituted semicolon
    for period at end.
      1991 - Subsec. (a). Pub. L. 102-242, Sec. 212(d)(2), inserted at
    end "The terms used in paragraph (1) that are not defined in this
    subchapter or otherwise defined in section 3(s) of the Federal
    Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning
    given to them in section 1(b) of the International Banking Act of
    1978 (12 U.S.C. 3101)."
      Pub. L. 102-242, Sec. 212(d)(1), added par. (1) and struck out
    former par. (1) which read as follows: "Section 8 of Federal
    Deposit Insurance Act, in the case of - 
        "(A) national banks, by the Comptroller of the Currency,
        "(B) member banks of the Federal Reserve System (other than
      national banks), by the Federal Reserve Board,
        "(C) banks the deposits or accounts of which are 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."
      1989 - Subsec. (a)(2). Pub. L. 101-73 amended par. (2) generally.
    Prior to amendment, par. (2) read as follows: "Section 5(d) of the
    Home Owners' Loan Act of 1933, section 407 of the National Housing
    Act, and sections 6(i) and 17 of the Federal Home Loan Bank Act, by
    the Federal Home Loan Bank Board (acting directly or through the
    Federal Savings and Loan Insurance Corporation), in the case of any
    institution subject to any of those provisions."
      1984 - Subsec. (a)(5). Pub. L. 98-443 substituted "Secretary of
    Transportation" for "Civil Aeronautics Board".
      1976 - Subsec. (c). Pub. L. 94-239 inserted provisions giving the
    Federal Trade Commission power to enforce any regulation of the
    Federal Reserve Board promulgated under this subchapter.

                     EFFECTIVE DATE OF 1995 AMENDMENT                 
      Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2
    of Pub. L. 104-88, set out as an Effective Date note under section
    701 of Title 49, Transportation.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-550 effective as if included in the
    Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.
    L. 102-242, as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102-
    550, set out as a note under section 191 of Title 12, Banks and
    Banking.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-443 effective Jan. 1, 1985, see section
    9(v) of Pub. L. 98-443, set out as a note under section 5314 of
    Title 5, Government Organization and Employees.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-239 effective Mar. 23, 1976, see section
    708 of Pub. L. 90-321, set out as an Effective Date note under
    section 1691 of this title.


-TRANS-
                           TRANSFER OF FUNCTIONS                       
      Functions vested in Administrator of National Credit Union
    Administration transferred and vested in National Credit Union
    Administration Board pursuant to section 1752a of Title 12, Banks
    and Banking.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    15 USC Sec. 1691c-1                                         01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER IV - EQUAL CREDIT OPPORTUNITY

-HEAD-
    Sec. 1691c-1. Incentives for self-testing and self-correction

-STATUTE-
    (a) Privileged information
      (1) Conditions for privilege
        A report or result of a self-test (as that term is defined by
      regulations of the Board) shall be considered to be privileged
      under paragraph (2) if a creditor - 
          (A) conducts, or authorizes an independent third party to
        conduct, a self-test of any aspect of a credit transaction by a
        creditor, in order to determine the level or effectiveness of
        compliance with this subchapter by the creditor; and
          (B) has identified any possible violation of this subchapter
        by the creditor and has taken, or is taking, appropriate
        corrective action to address any such possible violation.
      (2) Privileged self-test
        If a creditor meets the conditions specified in subparagraphs
      (A) and (B) of paragraph (1) with respect to a self-test
      described in that paragraph, any report or results of that self-
      test - 
          (A) shall be privileged; and
          (B) may not be obtained or used by any applicant, department,
        or agency in any - 
            (i) proceeding or civil action in which one or more
          violations of this subchapter are alleged; or
            (ii) examination or investigation relating to compliance
          with this subchapter.
    (b) Results of self-testing
      (1) In general
        No provision of this section may be construed to prevent an
      applicant, department, or agency from obtaining or using a report
      or results of any self-test in any proceeding or civil action in
      which a violation of this subchapter is alleged, or in any
      examination or investigation of compliance with this subchapter
      if - 
          (A) the creditor or any person with lawful access to the
        report or results - 
            (i) voluntarily releases or discloses all, or any part of,
          the report or results to the applicant, department, or
          agency, or to the general public; or
            (ii) refers to or describes the report or results as a
          defense to charges of violations of this subchapter against
          the creditor to whom the self-test relates; or

          (B) the report or results are sought in conjunction with an
        adjudication or admission of a violation of this subchapter for
        the sole purpose of determining an appropriate penalty or
        remedy.
      (2) Disclosure for determination of penalty or remedy
        Any report or results of a self-test that are disclosed for the
      purpose specified in paragraph (1)(B) - 
          (A) shall be used only for the particular proceeding in which
        the adjudication or admission referred to in paragraph (1)(B)
        is made; and
          (B) may not be used in any other action or proceeding.
    (c) Adjudication
      An applicant, department, or agency that challenges a privilege
    asserted under this section may seek a determination of the
    existence and application of that privilege in - 
        (1) a court of competent jurisdiction; or
        (2) an administrative law proceeding with appropriate
      jurisdiction.

-SOURCE-
    (Pub. L. 90-321, title VII, Sec. 704A, as added Pub. L. 104-208,
    div. A, title II, Sec. 2302(a)(1), Sept. 30, 1996, 110 Stat. 3009-
    420.)


-MISC1-
                              EFFECTIVE DATE                          
      Section 2302(c) of div. A of Pub. L. 104-208 provided that:
      "(1) In general. - Except as provided in paragraph (2), the
    privilege provided for in section 704A of the Equal Credit
    Opportunity Act [15 U.S.C. 1691c-1] or section 814A of the Fair
    Housing Act [42 U.S.C. 3614-1] (as those sections are added by this
    section) shall apply to a self-test (as that term is defined
    pursuant to the regulations prescribed under subsection (a)(2) [set
    out below] or (b)(2) of this section [42 U.S.C. 3614-1 note], as
    appropriate) conducted before, on, or after the effective date of
    the regulations prescribed under subsection (a)(2) or (b)(2), as
    appropriate.
      "(2) Exception. - The privilege referred to in paragraph (1) does
    not apply to such a self-test conducted before the effective date
    of the regulations prescribed under subsection (a) or (b), as
    appropriate, if - 
        "(A) before that effective date, a complaint against the
      creditor or person engaged in residential real estate related
      lending activities (as the case may be) was - 
          "(i) formally filed in any court of competent jurisdiction;
        or
          "(ii) the subject of an ongoing administrative law
        proceeding;
        "(B) in the case of section 704A of the Equal Credit
      Opportunity Act, the creditor has waived the privilege pursuant
      to subsection (b)(1)(A)(i) of that section; or
        "(C) in the case of section 814A of the Fair Housing Act, the
      person engaged in residential real estate related lending
      activities has waived the privilege pursuant to subsection
      (b)(1)(A)(i) of that section."

                                REGULATIONS                            
      Section 2302(a)(2) of div. A of Pub. L. 104-208 provided that:
      "(A) In general. - Not later than 6 months after the date of
    enactment of this Act [Sept. 30, 1996], in consultation with the
    Secretary of Housing and Urban Development and the agencies
    referred to in section 704 of the Equal Credit Opportunity Act [15
    U.S.C. 1691c], and after providing notice and an opportunity for
    public comment, the Board shall prescribe final regulations to
    implement section 704A of the Equal Credit Opportunity Act [15
    U.S.C. 1691c-1], as added by this section.
      "(B) Self-test. - 
        "(i) Definition. - The regulations prescribed under
      subparagraph (A) shall include a definition of the term 'self-
      test' for purposes of section 704A of the Equal Credit
      Opportunity Act, as added by this section.
        "(ii) Requirement for self-test. - The regulations prescribed
      under subparagraph (A) shall specify that a self-test shall be
      sufficiently extensive to constitute a determination of the level
      and effectiveness of compliance by a creditor with the Equal
      Credit Opportunity Act [15 U.S.C. 1691 et seq.].
        "(iii) Substantial similarity to certain fair housing act
      regulations. - The regulations prescribed under subparagraph (A)
      shall be substantially similar to the regulations prescribed by
      the Secretary of Housing and Urban Development to carry out
      section 814A(d) of the Fair Housing Act [42 U.S.C. 3614-1(d)], as
      added by this section."

-End-



-CITE-
    15 USC Sec. 1691d                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER IV - EQUAL CREDIT OPPORTUNITY

-HEAD-
    Sec. 1691d. Applicability of other laws

-STATUTE-
    (a) Requests for signature of husband and wife for creation of
      valid lien, etc.
      A request for the signature of both parties to a marriage for the
    purpose of creating a valid lien, passing clear title, waiving
    inchoate rights to property, or assigning earnings, shall not
    constitute discrimination under this subchapter: Provided, however,
    That this provision shall not be construed to permit a creditor to
    take sex or marital status into account in connection with the
    evaluation of creditworthiness of any applicant.
    (b) State property laws affecting creditworthiness
      Consideration or application of State property laws directly or
    indirectly affecting creditworthiness shall not constitute
    discrimination for purposes of this subchapter.
    (c) State laws prohibiting separate extension of consumer credit to
      husband and wife
      Any provision of State law which prohibits the separate extension
    of consumer credit to each party to a marriage shall not apply in
    any case where each party to a marriage voluntarily applies for
    separate credit from the same creditor: Provided, That in any case
    where such a State law is so preempted, each party to the marriage
    shall be solely responsible for the debt so contracted.
    (d) Combining credit accounts of husband and wife with same
      creditor to determine permissible finance charges or loan
      ceilings under Federal or State laws
      When each party to a marriage separately and voluntarily applies
    for and obtains separate credit accounts with the same creditor,
    those accounts shall not be aggregated or otherwise combined for
    purposes of determining permissible finance charges or permissible
    loan ceilings under the laws of any State or of the United States.
    (e) Election of remedies under subchapter or State law; nature of
      relief determining applicability
      Where the same act or omission constitutes a violation of this
    subchapter and of applicable State law, a person aggrieved by such
    conduct may bring a legal action to recover monetary damages either
    under this subchapter or under such State law, but not both. This
    election of remedies shall not apply to court actions in which the
    relief sought does not include monetary damages or to
    administrative actions.
    (f) Compliance with inconsistent State laws; determination of
      inconsistency
      This subchapter does not annul, alter, or affect, or exempt any
    person subject to the provisions of this subchapter from complying
    with, the laws of any State with respect to credit discrimination,
    except to the extent that those laws are inconsistent with any
    provision of this subchapter, and then only to the extent of the
    inconsistency. The Board is authorized to determine whether such
    inconsistencies exist. The Board may not determine that any State
    law is inconsistent with any provision of this subchapter if the
    Board determines that such law gives greater protection to the
    applicant.
    (g) Exemption by regulation of credit transactions covered by State
      law; failure to comply with State law
      The Board shall by regulation exempt from the requirements of
    sections 1691 and 1691a of this title any class of credit
    transactions within any State if it determines that under the law
    of that State that class of transactions is subject to requirements
    substantially similar to those imposed under this subchapter or
    that such law gives greater protection to the applicant, and that
    there is adequate provision for enforcement. Failure to comply with
    any requirement of such State law in any transaction so exempted
    shall constitute a violation of this subchapter for the purposes of
    section 1691e of this title.

-SOURCE-
    (Pub. L. 90-321, title VII, Sec. 705, as added Pub. L. 93-495,
    title V, Sec. 503, Oct. 28, 1974, 88 Stat. 1523; amended Pub. L. 94-
    239, Sec. 5, Mar. 23, 1976, 90 Stat. 253.)


-MISC1-
                                AMENDMENTS                            
      1976 - Subsec. (e). Pub. L. 94-239, Sec. 5(1), substituted
    provisions requiring an election of remedies in legal actions
    involving the recovery of monetary damages, for provisions
    specifying a general election of remedies.
      Subsecs. (f), (g). Pub. L. 94-239, Sec. 5(2), added subsecs. (f)
    and (g).

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-239 effective Mar. 23, 1976, see section
    708 of Pub. L. 90-321, set out as an Effective Date note under
    section 1691 of this title.

-End-



-CITE-
    15 USC Sec. 1691e                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER IV - EQUAL CREDIT OPPORTUNITY

-HEAD-
    Sec. 1691e. Civil liability

-STATUTE-
    (a) Individual or class action for actual damages
      Any creditor who fails to comply with any requirement imposed
    under this subchapter shall be liable to the aggrieved applicant
    for any actual damages sustained by such applicant acting either in
    an individual capacity or as a member of a class.
    (b) Recovery of punitive damages in individual and class action for
      actual damages; exemptions; maximum amount of punitive damages in
      individual actions; limitation on total recovery in class
      actions; factors determining amount of award
      Any creditor, other than a government or governmental subdivision
    or agency, who fails to comply with any requirement imposed under
    this subchapter shall be liable to the aggrieved applicant for
    punitive damages in an amount not greater than $10,000, in addition
    to any actual damages provided in subsection (a) of this section,
    except that in the case of a class action the total recovery under
    this subsection shall not exceed the lesser of $500,000 or 1 per
    centum of the net worth of the creditor. In determining the amount
    of such damages in any action, the court shall consider, among
    other relevant factors, the amount of any actual damages awarded,
    the frequency and persistence of failures of compliance by the
    creditor, the resources of the creditor, the number of persons
    adversely affected, and the extent to which the creditor's failure
    of compliance was intentional.
    (c) Action for equitable and declaratory relief
      Upon application by an aggrieved applicant, the appropriate
    United States district court or any other court of competent
    jurisdiction may grant such equitable and declaratory relief as is
    necessary to enforce the requirements imposed under this
    subchapter.
    (d) Recovery of costs and attorney fees
      In the case of any successful action under subsection (a), (b),
    or (c) of this section, the costs of the action, together with a
    reasonable attorney's fee as determined by the court, shall be
    added to any damages awarded by the court under such subsection.
    (e) Good faith compliance with rule, regulation, or interpretation
      of Board or interpretation or approval by an official or employee
      of Federal Reserve System duly authorized by Board
      No provision of this subchapter imposing liability shall apply to
    any act done or omitted in good faith in conformity with any
    official rule, regulation, or interpretation thereof by the Board
    or in conformity with any interpretation or approval by an official
    or employee of the Federal Reserve System duly authorized by the
    Board to issue such interpretations or approvals under such
    procedures as the Board may prescribe therefor, notwithstanding
    that after such act or omission has occurred, such rule,
    regulation, interpretation, or approval is amended, rescinded, or
    determined by judicial or other authority to be invalid for any
    reason.
    (f) Jurisdiction of courts; time for maintenance of action;
      exceptions
      Any action under this section may be brought in the appropriate
    United States district court without regard to the amount in
    controversy, or in any other court of competent jurisdiction. No
    such action shall be brought later than two years from the date of
    the occurrence of the violation, except that - 
        (1) whenever any agency having responsibility for
      administrative enforcement under section 1691c of this title
      commences an enforcement proceeding within two years from the
      date of the occurrence of the violation,
        (2) whenever the Attorney General commences a civil action
      under this section within two years from the date of the
      occurrence of the violation,

    then any applicant who has been a victim of the discrimination
    which is the subject of such proceeding or civil action may bring
    an action under this section not later than one year after the
    commencement of that proceeding or action.
    (g) Request by responsible enforcement agency to Attorney General
      for civil action
      The agencies having responsibility for administrative enforcement
    under section 1691c of this title, if unable to obtain compliance
    with section 1691 of this title, are authorized to refer the matter
    to the Attorney General with a recommendation that an appropriate
    civil action be instituted. Each agency referred to in paragraphs
    (1), (2), and (3) of section 1691c(a) of this title shall refer the
    matter to the Attorney General whenever the agency has reason to
    believe that 1 or more creditors has engaged in a pattern or
    practice of discouraging or denying applications for credit in
    violation of section 1691(a) of this title. Each such agency may
    refer the matter to the Attorney General whenever the agency has
    reason to believe that 1 or more creditors has violated section
    1691(a) of this title.
    (h) Authority for Attorney General to bring civil action;
      jurisdiction
      When a matter is referred to the Attorney General pursuant to
    subsection (g) of this section, or whenever he has reason to
    believe that one or more creditors are engaged in a pattern or
    practice in violation of this subchapter, the Attorney General may
    bring a civil action in any appropriate United States district
    court for such relief as may be appropriate, including actual and
    punitive damages and injunctive relief.
    (i) Recovery under both subchapter and fair housing enforcement
      provisions prohibited for violation based on same transaction
      No person aggrieved by a violation of this subchapter and by a
    violation of section 3605 of title 42 shall recover under this
    subchapter and section 3612 (!1) of title 42, if such violation is
    based on the same transaction.

    (j) Discovery of creditor's granting standards
      Nothing in this subchapter shall be construed to prohibit the
    discovery of a creditor's credit granting standards under
    appropriate discovery procedures in the court or agency in which an
    action or proceeding is brought.
    (k) Notice to HUD of violations
      Whenever an agency referred to in paragraph (1), (2), or (3) of
    section 1691c(a) of this title - 
        (1) has reason to believe, as a result of receiving a consumer
      complaint, conducting a consumer compliance examination, or
      otherwise, that a violation of this subchapter has occurred;
        (2) has reason to believe that the alleged violation would be a
      violation of the Fair Housing Act [42 U.S.C. 3601 et seq.]; and
        (3) does not refer the matter to the Attorney General pursuant
      to subsection (g) of this section,

    the agency shall notify the Secretary of Housing and Urban
    Development of the violation, and shall notify the applicant that
    the Secretary of Housing and Urban Development has been notified of
    the alleged violation and that remedies for the violation may be
    available under the Fair Housing Act.

-SOURCE-
    (Pub. L. 90-321, title VII, Sec. 706, as added Pub. L. 93-495,
    title V, Sec. 503, Oct. 28, 1974, 88 Stat. 1524; amended Pub. L. 94-
    239, Sec. 6, Mar. 23, 1976, 90 Stat. 253; Pub. L. 102-242, title
    II, Sec. 223(a)-(c), Dec. 19, 1991, 105 Stat. 2306.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 3612 of title 42, referred to in subsec. (i), which
    related to enforcement of the Fair Housing Act (42 U.S.C. 3601 et
    seq.) by private persons, was repealed by Pub. L. 100-430, Sec.
    8(2), Sept. 13, 1988, 102 Stat. 1625. See section 3613 of Title 42,
    The Public Health and Welfare.
      The Fair Housing Act, referred to in subsec. (k), is title VIII
    of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended, which is
    classified principally to subchapter I (Sec. 3601 et seq.) of
    chapter 45 of Title 42. For complete classification of this Act to
    the Code, see Short Title note set out under section 3601 of Title
    42 and Tables.


-MISC1-
                                AMENDMENTS                            
      1991 - Subsec. (g). Pub. L. 102-242, Sec. 223(a), inserted at end
    "Each agency referred to in paragraphs (1), (2), and (3) of section
    1691c(a) of this title shall refer the matter to the Attorney
    General whenever the agency has reason to believe that 1 or more
    creditors has engaged in a pattern or practice of discouraging or
    denying applications for credit in violation of section 1691(a) of
    this title. Each such agency may refer the matter to the Attorney
    General whenever the agency has reason to believe that 1 or more
    creditors has violated section 1691(a) of this title."
      Subsec. (h). Pub. L. 102-242, Sec. 223(b), inserted "actual and
    punitive damages and" after "be appropriate, including".
      Subsec. (k). Pub. L. 102-242, Sec. 223(c), added subsec. (k).
      1976 - Subsec. (a). Pub. L. 94-239 substituted reference to
    member for reference to representative.
      Subsec. (b). Pub. L. 94-239 inserted provisions exempting
    government or governmental subdivision or agency from requirements
    of this subchapter, incorporated provisions contained in former
    subsec. (c) relating to recovery in class actions and, as
    incorporated, raised the total amount of recovery under a class
    action from $100,000 to $500,000.
      Subsec. (c). Pub. L. 94-239 redesignated subsec. (d) as (c) and
    specified United States district court or other court of competent
    jurisdiction as court in which to bring action, and substituted
    provisions authorizing such court to grant equitable and
    declaratory relief, for provisions authorizing civil actions for
    preventive relief. Provisions of former subsec. (c) were
    incorporated into present subsec. (b) and amended.
      Subsec. (d). Pub. L. 94-239 redesignated subsec. (e) as (d) and
    made minor changes in phraseology. Former subsec. (d) redesignated
    (c) and amended.
      Subsec. (e). Pub. L. 94-239 redesignated subsec. (f) as (e) and
    inserted reference to officially promulgated rule, regulation, or
    interpretation and provisions relating to approval and
    interpretations by an official or employee of the Federal Reserve
    System duly authorized by the Board. Former subsec. (e)
    redesignated (d) and amended.
      Subsec. (f). Pub. L. 94-239 redesignated subsec. (g) as (f) and
    inserted provisions which substituted a two year limitation for one
    year limitation and provisions extending time in which to bring
    action under enumerated conditions. Former subsec. (f) redesignated
    (e) and amended.
      Subsecs. (g) to (j). Pub. L. 94-239 added subsecs. (g) to (j).
    Former subsec. (g) redesignated (f) and amended.

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Amendment by Pub. L. 94-239 effective Mar. 23, 1976, see section
    708 of Pub. L. 90-321, set out as an Effective Date note under
    section 1691 of this title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    15 USC Sec. 1691f                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER IV - EQUAL CREDIT OPPORTUNITY

-HEAD-
    Sec. 1691f. Annual reports to Congress; contents

-STATUTE-
      Each year, the Board and the Attorney General shall,
    respectively, make reports to the Congress concerning the
    administration of their functions under this subchapter, including
    such recommendations as the Board and the Attorney General,
    respectively, deem necessary or appropriate. In addition, each
    report of the Board shall include its assessment of the extent to
    which compliance with the requirements of this subchapter is being
    achieved, and a summary of the enforcement actions taken by each of
    the agencies assigned administrative enforcement responsibilities
    under section 1691c of this title.

-SOURCE-
    (Pub. L. 90-321, title VII, Sec. 707, as added Pub. L. 94-239, Sec.
    7, Mar. 23, 1976, 90 Stat. 255; amended Pub. L. 96-221, title VI,
    Sec. 610(c), Mar. 31, 1980, 94 Stat. 174.)


-MISC1-
                                AMENDMENTS                            
      1980 - Pub. L. 96-221 substituted "Each year" for "Not later than
    February 1 of each year after 1976".

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-221 effective on expiration of two years
    and six months after Mar. 31, 1980, with all regulations, forms,
    and clauses required to be prescribed to be promulgated at least
    one year prior to such effective date, and allowing any creditor to
    comply with any amendments, in accordance with the regulations,
    forms, and clauses prescribed by the Board prior to such effective
    date, see section 625 of Pub. L. 96-221, set out as a note under
    section 1602 of this title.

                              EFFECTIVE DATE                          
      Section effective Mar. 23, 1976, see section 708 of Pub. L. 90-
    321, set out as a note under section 1691 of this title.

-End-


-CITE-
    15 USC SUBCHAPTER V - DEBT COLLECTION PRACTICES             01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
                 SUBCHAPTER V - DEBT COLLECTION PRACTICES             

-End-



-CITE-
    15 USC Sec. 1692                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692. Congressional findings and declaration of purpose

-STATUTE-
    (a) Abusive practices
      There is abundant evidence of the use of abusive, deceptive, and
    unfair debt collection practices by many debt collectors. Abusive
    debt collection practices contribute to the number of personal
    bankruptcies, to marital instability, to the loss of jobs, and to
    invasions of individual privacy.
    (b) Inadequacy of laws
      Existing laws and procedures for redressing these injuries are
    inadequate to protect consumers.
    (c) Available non-abusive collection methods
      Means other than misrepresentation or other abusive debt
    collection practices are available for the effective collection of
    debts.
    (d) Interstate commerce
      Abusive debt collection practices are carried on to a substantial
    extent in interstate commerce and through means and
    instrumentalities of such commerce. Even where abusive debt
    collection practices are purely intrastate in character, they
    nevertheless directly affect interstate commerce.
    (e) Purposes
      It is the purpose of this subchapter to eliminate abusive debt
    collection practices by debt collectors, to insure that those debt
    collectors who refrain from using abusive debt collection practices
    are not competitively disadvantaged, and to promote consistent
    State action to protect consumers against debt collection abuses.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 802, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 874.)


-MISC1-
                              EFFECTIVE DATE                          
      Pub. L. 90-321, title VIII, Sec. 819, formerly Sec. 818, as added
    Pub. L. 95-109, Sept. 20, 1977, 91 Stat. 883, Sec. 818; renumbered
    Sec. 819, Pub. L. 109-351, title VIII, Sec. 801(a)(1), Oct. 13,
    2006, 120 Stat. 2004, provided that: "This title [enacting this
    subchapter] takes effect upon the expiration of six months after
    the date of its enactment [Sept. 20, 1977], but section 809
    [section 1692g of this title] shall apply only with respect to
    debts for which the initial attempt to collect occurs after such
    effective date."

                                SHORT TITLE                            
      This subchapter known as the "Fair Debt Collection Practices
    Act", see Short Title note set out under section 1601 of this
    title.

-End-



-CITE-
    15 USC Sec. 1692a                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692a. Definitions

-STATUTE-
      As used in this subchapter - 
        (1) The term "Commission" means the Federal Trade Commission.
        (2) The term "communication" means the conveying of information
      regarding a debt directly or indirectly to any person through any
      medium.
        (3) The term "consumer" means any natural person obligated or
      allegedly obligated to pay any debt.
        (4) The term "creditor" means any person who offers or extends
      credit creating a debt or to whom a debt is owed, but such term
      does not include any person to the extent that he receives an
      assignment or transfer of a debt in default solely for the
      purpose of facilitating collection of such debt for another.
        (5) The term "debt" means any obligation or alleged obligation
      of a consumer to pay money arising out of a transaction in which
      the money, property, insurance, or services which are the subject
      of the transaction are primarily for personal, family, or
      household purposes, whether or not such obligation has been
      reduced to judgment.
        (6) The term "debt collector" means any person who uses any
      instrumentality of interstate commerce or the mails in any
      business the principal purpose of which is the collection of any
      debts, or who regularly collects or attempts to collect, directly
      or indirectly, debts owed or due or asserted to be owed or due
      another. Notwithstanding the exclusion provided by clause (F) of
      the last sentence of this paragraph, the term includes any
      creditor who, in the process of collecting his own debts, uses
      any name other than his own which would indicate that a third
      person is collecting or attempting to collect such debts. For the
      purpose of section 1692f(6) of this title, such term also
      includes any person who uses any instrumentality of interstate
      commerce or the mails in any business the principal purpose of
      which is the enforcement of security interests. The term does not
      include - 
          (A) any officer or employee of a creditor while, in the name
        of the creditor, collecting debts for such creditor;
          (B) any person while acting as a debt collector for another
        person, both of whom are related by common ownership or
        affiliated by corporate control, if the person acting as a debt
        collector does so only for persons to whom it is so related or
        affiliated and if the principal business of such person is not
        the collection of debts;
          (C) any officer or employee of the United States or any State
        to the extent that collecting or attempting to collect any debt
        is in the performance of his official duties;
          (D) any person while serving or attempting to serve legal
        process on any other person in connection with the judicial
        enforcement of any debt;
          (E) any nonprofit organization which, at the request of
        consumers, performs bona fide consumer credit counseling and
        assists consumers in the liquidation of their debts by
        receiving payments from such consumers and distributing such
        amounts to creditors; and
          (F) any person collecting or attempting to collect any debt
        owed or due or asserted to be owed or due another to the extent
        such activity (i) is incidental to a bona fide fiduciary
        obligation or a bona fide escrow arrangement; (ii) concerns a
        debt which was originated by such person; (iii) concerns a debt
        which was not in default at the time it was obtained by such
        person; or (iv) concerns a debt obtained by such person as a
        secured party in a commercial credit transaction involving the
        creditor.

        (7) The term "location information" means a consumer's place of
      abode and his telephone number at such place, or his place of
      employment.
        (8) The term "State" means any State, territory, or possession
      of the United States, the District of Columbia, the Commonwealth
      of Puerto Rico, or any political subdivision of any of the
      foregoing.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 803, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 875; amended Pub. L. 99-361, July 9, 1986,
    100 Stat. 768.)


-MISC1-
                                AMENDMENTS                            
      1986 - Par. (6). Pub. L. 99-361 in provision preceding cl. (A)
    substituted "clause (F)" for "clause (G)", struck out cl. (F) which
    excluded any attorney-at-law collecting a debt as an attorney on
    behalf of and in the name of a client from term "debt collector",
    and redesignated cl. (G) as (F).

-End-



-CITE-
    15 USC Sec. 1692b                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692b. Acquisition of location information

-STATUTE-
      Any debt collector communicating with any person other than the
    consumer for the purpose of acquiring location information about
    the consumer shall - 
        (1) identify himself, state that he is confirming or correcting
      location information concerning the consumer, and, only if
      expressly requested, identify his employer;
        (2) not state that such consumer owes any debt;
        (3) not communicate with any such person more than once unless
      requested to do so by such person or unless the debt collector
      reasonably believes that the earlier response of such person is
      erroneous or incomplete and that such person now has correct or
      complete location information;
        (4) not communicate by post card;
        (5) not use any language or symbol on any envelope or in the
      contents of any communication effected by the mails or telegram
      that indicates that the debt collector is in the debt collection
      business or that the communication relates to the collection of a
      debt; and
        (6) after the debt collector knows the consumer is represented
      by an attorney with regard to the subject debt and has knowledge
      of, or can readily ascertain, such attorney's name and address,
      not communicate with any person other than that attorney, unless
      the attorney fails to respond within a reasonable period of time
      to communication from the debt collector.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 804, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 876.)

-End-



-CITE-
    15 USC Sec. 1692c                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692c. Communication in connection with debt collection

-STATUTE-
    (a) Communication with the consumer generally
      Without the prior consent of the consumer given directly to the
    debt collector or the express permission of a court of competent
    jurisdiction, a debt collector may not communicate with a consumer
    in connection with the collection of any debt - 
        (1) at any unusual time or place or a time or place known or
      which should be known to be inconvenient to the consumer. In the
      absence of knowledge of circumstances to the contrary, a debt
      collector shall assume that the convenient time for communicating
      with a consumer is after 8 o'clock antemeridian and before 9
      o'clock postmeridian, local time at the consumer's location;
        (2) if the debt collector knows the consumer is represented by
      an attorney with respect to such debt and has knowledge of, or
      can readily ascertain, such attorney's name and address, unless
      the attorney fails to respond within a reasonable period of time
      to a communication from the debt collector or unless the attorney
      consents to direct communication with the consumer; or
        (3) at the consumer's place of employment if the debt collector
      knows or has reason to know that the consumer's employer
      prohibits the consumer from receiving such communication.
    (b) Communication with third parties
      Except as provided in section 1692b of this title, without the
    prior consent of the consumer given directly to the debt collector,
    or the express permission of a court of competent jurisdiction, or
    as reasonably necessary to effectuate a postjudgment judicial
    remedy, a debt collector may not communicate, in connection with
    the collection of any debt, with any person other than the
    consumer, his attorney, a consumer reporting agency if otherwise
    permitted by law, the creditor, the attorney of the creditor, or
    the attorney of the debt collector.
    (c) Ceasing communication
      If a consumer notifies a debt collector in writing that the
    consumer refuses to pay a debt or that the consumer wishes the debt
    collector to cease further communication with the consumer, the
    debt collector shall not communicate further with the consumer with
    respect to such debt, except - 
        (1) to advise the consumer that the debt collector's further
      efforts are being terminated;
        (2) to notify the consumer that the debt collector or creditor
      may invoke specified remedies which are ordinarily invoked by
      such debt collector or creditor; or
        (3) where applicable, to notify the consumer that the debt
      collector or creditor intends to invoke a specified remedy.

    If such notice from the consumer is made by mail, notification
    shall be complete upon receipt.
    (d) "Consumer" defined
      For the purpose of this section, the term "consumer" includes the
    consumer's spouse, parent (if the consumer is a minor), guardian,
    executor, or administrator.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 805, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 876.)

-End-



-CITE-
    15 USC Sec. 1692d                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692d. Harassment or abuse

-STATUTE-
      A debt collector may not engage in any conduct the natural
    consequence of which is to harass, oppress, or abuse any person in
    connection with the collection of a debt. Without limiting the
    general application of the foregoing, the following conduct is a
    violation of this section:
        (1) The use or threat of use of violence or other criminal
      means to harm the physical person, reputation, or property of any
      person.
        (2) The use of obscene or profane language or language the
      natural consequence of which is to abuse the hearer or reader.
        (3) The publication of a list of consumers who allegedly refuse
      to pay debts, except to a consumer reporting agency or to persons
      meeting the requirements of section 1681a(f) or 1681b(3) (!1) of
      this title.

        (4) The advertisement for sale of any debt to coerce payment of
      the debt.
        (5) Causing a telephone to ring or engaging any person in
      telephone conversation repeatedly or continuously with intent to
      annoy, abuse, or harass any person at the called number.
        (6) Except as provided in section 1692b of this title, the
      placement of telephone calls without meaningful disclosure of the
      caller's identity.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 806, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 877.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1681b(3) of this title, referred to in par. (3), was
    redesignated section 1681b(a)(3) of this title by Pub. L. 104-208,
    div. A, title II, Sec. 2403(a)(1), Sept. 30, 1996, 110 Stat. 3009-
    430.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    15 USC Sec. 1692e                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692e. False or misleading representations

-STATUTE-
      A debt collector may not use any false, deceptive, or misleading
    representation or means in connection with the collection of any
    debt. Without limiting the general application of the foregoing,
    the following conduct is a violation of this section:
        (1) The false representation or implication that the debt
      collector is vouched for, bonded by, or affiliated with the
      United States or any State, including the use of any badge,
      uniform, or facsimile thereof.
        (2) The false representation of - 
          (A) the character, amount, or legal status of any debt; or
          (B) any services rendered or compensation which may be
        lawfully received by any debt collector for the collection of a
        debt.

        (3) The false representation or implication that any individual
      is an attorney or that any communication is from an attorney.
        (4) The representation or implication that nonpayment of any
      debt will result in the arrest or imprisonment of any person or
      the seizure, garnishment, attachment, or sale of any property or
      wages of any person unless such action is lawful and the debt
      collector or creditor intends to take such action.
        (5) The threat to take any action that cannot legally be taken
      or that is not intended to be taken.
        (6) The false representation or implication that a sale,
      referral, or other transfer of any interest in a debt shall cause
      the consumer to - 
          (A) lose any claim or defense to payment of the debt; or
          (B) become subject to any practice prohibited by this
        subchapter.

        (7) The false representation or implication that the consumer
      committed any crime or other conduct in order to disgrace the
      consumer.
        (8) Communicating or threatening to communicate to any person
      credit information which is known or which should be known to be
      false, including the failure to communicate that a disputed debt
      is disputed.
        (9) The use or distribution of any written communication which
      simulates or is falsely represented to be a document authorized,
      issued, or approved by any court, official, or agency of the
      United States or any State, or which creates a false impression
      as to its source, authorization, or approval.
        (10) The use of any false representation or deceptive means to
      collect or attempt to collect any debt or to obtain information
      concerning a consumer.
        (11) The failure to disclose in the initial written
      communication with the consumer and, in addition, if the initial
      communication with the consumer is oral, in that initial oral
      communication, that the debt collector is attempting to collect a
      debt and that any information obtained will be used for that
      purpose, and the failure to disclose in subsequent communications
      that the communication is from a debt collector, except that this
      paragraph shall not apply to a formal pleading made in connection
      with a legal action.
        (12) The false representation or implication that accounts have
      been turned over to innocent purchasers for value.
        (13) The false representation or implication that documents are
      legal process.
        (14) The use of any business, company, or organization name
      other than the true name of the debt collector's business,
      company, or organization.
        (15) The false representation or implication that documents are
      not legal process forms or do not require action by the consumer.
        (16) The false representation or implication that a debt
      collector operates or is employed by a consumer reporting agency
      as defined by section 1681a(f) of this title.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 807, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 877; amended Pub. L. 104-208, div. A,
    title II, Sec. 2305(a), Sept. 30, 1996, 110 Stat. 3009-425.)


-MISC1-
                                AMENDMENTS                            
      1996 - Par. (11). Pub. L. 104-208 amended par. (11) generally.
    Prior to amendment, par. (11) read as follows: "Except as otherwise
    provided for communications to acquire location information under
    section 1692b of this title, the failure to disclose clearly in all
    communications made to collect a debt or to obtain information
    about a consumer, that the debt collector is attempting to collect
    a debt and that any information obtained will be used for that
    purpose."

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 2305(b) of div. A of Pub. L. 104-208 provided that: "The
    amendment made by subsection (a) [amending this section] shall take
    effect 90 days after the date of enactment of this Act [Sept. 30,
    1996] and shall apply to all communications made after that date of
    enactment."

-End-



-CITE-
    15 USC Sec. 1692f                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692f. Unfair practices

-STATUTE-
      A debt collector may not use unfair or unconscionable means to
    collect or attempt to collect any debt. Without limiting the
    general application of the foregoing, the following conduct is a
    violation of this section:
        (1) The collection of any amount (including any interest, fee,
      charge, or expense incidental to the principal obligation) unless
      such amount is expressly authorized by the agreement creating the
      debt or permitted by law.
        (2) The acceptance by a debt collector from any person of a
      check or other payment instrument postdated by more than five
      days unless such person is notified in writing of the debt
      collector's intent to deposit such check or instrument not more
      than ten nor less than three business days prior to such deposit.
        (3) The solicitation by a debt collector of any postdated check
      or other postdated payment instrument for the purpose of
      threatening or instituting criminal prosecution.
        (4) Depositing or threatening to deposit any postdated check or
      other postdated payment instrument prior to the date on such
      check or instrument.
        (5) Causing charges to be made to any person for communications
      by concealment of the true purpose of the communication. Such
      charges include, but are not limited to, collect telephone calls
      and telegram fees.
        (6) Taking or threatening to take any nonjudicial action to
      effect dispossession or disablement of property if - 
          (A) there is no present right to possession of the property
        claimed as collateral through an enforceable security interest;
          (B) there is no present intention to take possession of the
        property; or
          (C) the property is exempt by law from such dispossession or
        disablement.

        (7) Communicating with a consumer regarding a debt by post
      card.
        (8) Using any language or symbol, other than the debt
      collector's address, on any envelope when communicating with a
      consumer by use of the mails or by telegram, except that a debt
      collector may use his business name if such name does not
      indicate that he is in the debt collection business.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 808, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 879.)

-End-



-CITE-
    15 USC Sec. 1692g                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692g. Validation of debts

-STATUTE-
    (a) Notice of debt; contents
      Within five days after the initial communication with a consumer
    in connection with the collection of any debt, a debt collector
    shall, unless the following information is contained in the initial
    communication or the consumer has paid the debt, send the consumer
    a written notice containing - 
        (1) the amount of the debt;
        (2) the name of the creditor to whom the debt is owed;
        (3) a statement that unless the consumer, within thirty days
      after receipt of the notice, disputes the validity of the debt,
      or any portion thereof, the debt will be assumed to be valid by
      the debt collector;
        (4) a statement that if the consumer notifies the debt
      collector in writing within the thirty-day period that the debt,
      or any portion thereof, is disputed, the debt collector will
      obtain verification of the debt or a copy of a judgment against
      the consumer and a copy of such verification or judgment will be
      mailed to the consumer by the debt collector; and
        (5) a statement that, upon the consumer's written request
      within the thirty-day period, the debt collector will provide the
      consumer with the name and address of the original creditor, if
      different from the current creditor.
    (b) Disputed debts
      If the consumer notifies the debt collector in writing within the
    thirty-day period described in subsection (a) of this section that
    the debt, or any portion thereof, is disputed, or that the consumer
    requests the name and address of the original creditor, the debt
    collector shall cease collection of the debt, or any disputed
    portion thereof, until the debt collector obtains verification of
    the debt or a copy of a judgment, or the name and address of the
    original creditor, and a copy of such verification or judgment, or
    name and address of the original creditor, is mailed to the
    consumer by the debt collector. Collection activities and
    communications that do not otherwise violate this subchapter may
    continue during the 30-day period referred to in subsection (a)
    unless the consumer has notified the debt collector in writing that
    the debt, or any portion of the debt, is disputed or that the
    consumer requests the name and address of the original creditor.
    Any collection activities and communication during the 30-day
    period may not overshadow or be inconsistent with the disclosure of
    the consumer's right to dispute the debt or request the name and
    address of the original creditor.
    (c) Admission of liability
      The failure of a consumer to dispute the validity of a debt under
    this section may not be construed by any court as an admission of
    liability by the consumer.
    (d) Legal pleadings
      A communication in the form of a formal pleading in a civil
    action shall not be treated as an initial communication for
    purposes of subsection (a).
    (e) Notice provisions
      The sending or delivery of any form or notice which does not
    relate to the collection of a debt and is expressly required by
    title 26, title V of Gramm-Leach-Bliley Act [15 U.S.C. 6801 et
    seq.], or any provision of Federal or State law relating to notice
    of data security breach or privacy, or any regulation prescribed
    under any such provision of law, shall not be treated as an initial
    communication in connection with debt collection for purposes of
    this section.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 809, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 879; amended Pub. L. 109-351, title VIII,
    Sec. 802, Oct. 13, 2006, 120 Stat. 2006.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Gramm-Leach-Bliley Act, referred to in subsec. (e), is Pub.
    L. 106-102, Nov. 12, 1999, 113 Stat. 1338. Title V of the Act is
    classified principally to chapter 94 (Sec. 6801 et seq.) of this
    title. For complete classification of this Act to the Code, see
    Short Title of 1999 Amendment note set out under section 1811 of
    Title 12, Banks and Banking, and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b). Pub. L. 109-351, Sec. 802(c), inserted at end
    "Collection activities and communications that do not otherwise
    violate this subchapter may continue during the 30-day period
    referred to in subsection (a) unless the consumer has notified the
    debt collector in writing that the debt, or any portion of the
    debt, is disputed or that the consumer requests the name and
    address of the original creditor. Any collection activities and
    communication during the 30-day period may not overshadow or be
    inconsistent with the disclosure of the consumer's right to dispute
    the debt or request the name and address of the original creditor."
      Subsec. (d). Pub. L. 109-351, Sec. 802(a), added subsec. (d).
      Subsec. (e). Pub. L. 109-351, Sec. 802(b), added subsec. (e).

                              EFFECTIVE DATE                          
      Section applicable only with respect to debts for which the
    initial attempt to collect occurs after the effective date of this
    subchapter, which takes effect upon the expiration of six months
    after Sept. 20, 1977, see section 819 of Pub. L. 90-321, set out as
    a note under section 1692 of this title.

-End-



-CITE-
    15 USC Sec. 1692h                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692h. Multiple debts

-STATUTE-
      If any consumer owes multiple debts and makes any single payment
    to any debt collector with respect to such debts, such debt
    collector may not apply such payment to any debt which is disputed
    by the consumer and, where applicable, shall apply such payment in
    accordance with the consumer's directions.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 810, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 880.)

-End-



-CITE-
    15 USC Sec. 1692i                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692i. Legal actions by debt collectors

-STATUTE-
    (a) Venue
      Any debt collector who brings any legal action on a debt against
    any consumer shall - 
        (1) in the case of an action to enforce an interest in real
      property securing the consumer's obligation, bring such action
      only in a judicial district or similar legal entity in which such
      real property is located; or
        (2) in the case of an action not described in paragraph (1),
      bring such action only in the judicial district or similar legal
      entity - 
          (A) in which such consumer signed the contract sued upon; or
          (B) in which such consumer resides at the commencement of the
        action.
    (b) Authorization of actions
      Nothing in this subchapter shall be construed to authorize the
    bringing of legal actions by debt collectors.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 811, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 880.)

-End-



-CITE-
    15 USC Sec. 1692j                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692j. Furnishing certain deceptive forms

-STATUTE-
      (a) It is unlawful to design, compile, and furnish any form
    knowing that such form would be used to create the false belief in
    a consumer that a person other than the creditor of such consumer
    is participating in the collection of or in an attempt to collect a
    debt such consumer allegedly owes such creditor, when in fact such
    person is not so participating.
      (b) Any person who violates this section shall be liable to the
    same extent and in the same manner as a debt collector is liable
    under section 1692k of this title for failure to comply with a
    provision of this subchapter.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 812, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 880.)

-End-



-CITE-
    15 USC Sec. 1692k                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692k. Civil liability

-STATUTE-
    (a) Amount of damages
      Except as otherwise provided by this section, any debt collector
    who fails to comply with any provision of this subchapter with
    respect to any person is liable to such person in an amount equal
    to the sum of - 
        (1) any actual damage sustained by such person as a result of
      such failure;
        (2)(A) in the case of any action by an individual, such
      additional damages as the court may allow, but not exceeding
      $1,000; or
        (B) in the case of a class action, (i) such amount for each
      named plaintiff as could be recovered under subparagraph (A), and
      (ii) such amount as the court may allow for all other class
      members, without regard to a minimum individual recovery, not to
      exceed the lesser of $500,000 or 1 per centum of the net worth of
      the debt collector; and
        (3) in the case of any successful action to enforce the
      foregoing liability, the costs of the action, together with a
      reasonable attorney's fee as determined by the court. On a
      finding by the court that an action under this section was
      brought in bad faith and for the purpose of harassment, the court
      may award to the defendant attorney's fees reasonable in relation
      to the work expended and costs.
    (b) Factors considered by court
      In determining the amount of liability in any action under
    subsection (a) of this section, the court shall consider, among
    other relevant factors - 
        (1) in any individual action under subsection (a)(2)(A) of this
      section, the frequency and persistence of noncompliance by the
      debt collector, the nature of such noncompliance, and the extent
      to which such noncompliance was intentional; or
        (2) in any class action under subsection (a)(2)(B) of this
      section, the frequency and persistence of noncompliance by the
      debt collector, the nature of such noncompliance, the resources
      of the debt collector, the number of persons adversely affected,
      and the extent to which the debt collector's noncompliance was
      intentional.
    (c) Intent
      A debt collector may not be held liable in any action brought
    under this subchapter if the debt collector shows by a
    preponderance of evidence that the violation was not intentional
    and resulted from a bona fide error notwithstanding the maintenance
    of procedures reasonably adapted to avoid any such error.
    (d) Jurisdiction
      An action to enforce any liability created by this subchapter 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 one year from the date on which the
    violation occurs.
    (e) Advisory opinions of Commission
      No provision of this section imposing any liability shall apply
    to any act done or omitted in good faith in conformity with any
    advisory opinion of the Commission, notwithstanding that after such
    act or omission has occurred, such opinion is amended, rescinded,
    or determined by judicial or other authority to be invalid for any
    reason.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 813, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 881.)

-End-



-CITE-
    15 USC Sec. 1692l                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692l. Administrative enforcement

-STATUTE-
    (a) Federal Trade Commission
      Compliance with this subchapter shall be enforced by the
    Commission, except to the extent that enforcement of the
    requirements imposed under this subchapter is specifically
    committed to another agency under subsection (b) of this section.
    For purpose of the exercise by the Commission of its functions and
    powers under the Federal Trade Commission Act [15 U.S.C. 41 et
    seq.], a violation of this subchapter shall be deemed an unfair or
    deceptive act or practice in violation of that Act. All of the
    functions and powers of the Commission under the Federal Trade
    Commission Act are available to the Commission to enforce
    compliance by any person with this subchapter, irrespective of
    whether that person is engaged in commerce or meets any other
    jurisdictional tests in the Federal Trade Commission Act, including
    the power to enforce the provisions of this subchapter in the same
    manner as if the violation had been a violation of a Federal Trade
    Commission trade regulation rule.
    (b) Applicable provisions of law
      Compliance with any requirements imposed under this subchapter
    shall be enforced under - 
        (1) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
      1818], in the case of - 
          (A) national banks, and Federal branches and Federal agencies
        of foreign banks, by the Office of the Comptroller of the
        Currency;
          (B) member banks of the Federal Reserve System (other than
        national banks), branches and agencies of foreign banks (other
        than Federal branches, Federal agencies, and insured State
        branches of foreign banks), commercial lending companies owned
        or controlled by foreign banks, and organizations operating
        under section 25 or 25(a) (!1) of the Federal Reserve Act [12
        U.S.C. 601 et seq., 611 et seq.], by the Board of Governors of
        the Federal Reserve System; and

          (C) banks insured by the Federal Deposit Insurance
        Corporation (other than members of the Federal Reserve System)
        and insured State branches of foreign banks, by the Board of
        Directors of the Federal Deposit Insurance Corporation;

        (2) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
      1818], by the Director of the Office of Thrift Supervision, in
      the case of a savings association the deposits of which are
      insured by the Federal Deposit Insurance Corporation;
        (3) the Federal Credit Union Act [12 U.S.C. 1751 et seq.], by
      the Administrator of the National Credit Union Administration
      with respect to any Federal credit union;
        (4) subtitle IV of title 49, by the Secretary of
      Transportation, with respect to all carriers subject to the
      jurisdiction of the Surface Transportation Board;
        (5) part A of subtitle VII of title 49, by the Secretary of
      Transportation with respect to any air carrier or any foreign air
      carrier subject to that part; and
        (6) the Packers and Stockyards Act, 1921 [7 U.S.C. 181 et seq.]
      (except as provided in section 406 of that Act [7 U.S.C. 226,
      227]), by the Secretary of Agriculture with respect to any
      activities subject to that Act.

    The terms used in paragraph (1) that are not defined in this
    subchapter or otherwise defined in section 3(s) of the Federal
    Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning
    given to them in section 1(b) of the International Banking Act of
    1978 (12 U.S.C. 3101).
    (c) Agency powers
      For the purpose of the exercise by any agency referred to in
    subsection (b) of this section of its powers under any Act referred
    to in that subsection, a violation of any requirement imposed under
    this subchapter 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) of this
    section, each of the agencies referred to in that subsection may
    exercise, for the purpose of enforcing compliance with any
    requirement imposed under this subchapter any other authority
    conferred on it by law, except as provided in subsection (d) of
    this section.
    (d) Rules and regulations
      Neither the Commission nor any other agency referred to in
    subsection (b) of this section may promulgate trade regulation
    rules or other regulations with respect to the collection of debts
    by debt collectors as defined in this subchapter.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 814, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 881; amended Pub. L. 98-443, Sec. 9(n),
    Oct. 4, 1984, 98 Stat. 1708; Pub. L. 101-73, title VII, Sec.
    744(n), Aug. 9, 1989, 103 Stat. 440; Pub. L. 102-242, title II,
    Sec. 212(e), Dec. 19, 1991, 105 Stat. 2301; Pub. L. 102-550, title
    XVI, Sec. 1604(a)(8), Oct. 28, 1992, 106 Stat. 4082; Pub. L. 104-
    88, title III, Sec. 316, Dec. 29, 1995, 109 Stat. 949.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Federal Trade Commission Act, referred to in subsec. (a), is
    act Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended, which is
    classified generally to subchapter I (Sec. 41 et seq.) of chapter 2
    of this title. For complete classification of this Act to the Code,
    see section 58 of this title and Tables.
      Section 25(a) of the Federal Reserve Act, referred to in subsec.
    (b)(1)(B), which is classified to subchapter II (Sec. 611 et seq.)
    of chapter 6 of Title 12, Banks and Banking, was renumbered section
    25A of that act by Pub. L. 102-242, title I, Sec. 142(e)(2), Dec.
    19, 1991, 105 Stat. 2281. Section 25 of the Federal Reserve Act is
    classified to subchapter I (Sec. 601 et seq.) of chapter 6 of Title
    12.
      The Federal Credit Union Act, referred to in subsec. (b)(3), is
    act June 26, 1934, ch. 750, 48 Stat. 1216, as amended, which is
    classified generally to chapter 14 (Sec. 1751 et seq.) of Title 12.
    For complete classification of this Act to the Code, see section
    1751 of Title 12 and Tables.
      The Packers and Stockyards Act, 1921, referred to in subsec.
    (b)(6), is act Aug. 15, 1921, ch. 64, 42 Stat. 159, as amended,
    which is classified generally to chapter 9 (Sec. 181 et seq.) of
    Title 7, Agriculture. For complete classification of this Act to
    the Code, see section 181 of Title 7 and Tables.

-COD-
                               CODIFICATION                           
      In subsec. (b)(4), "subtitle IV of title 49" substituted for "the
    Acts to regulate commerce" on authority of Pub. L. 95-473, Sec.
    3(b), Oct. 17, 1978, 92 Stat. 1466, the first section of which
    enacted subtitle IV of Title 49, Transportation.
      In subsec. (b)(5), "part A of subtitle VII of title 49"
    substituted for "the Federal Aviation Act of 1958 [49 App. U.S.C.
    1301 et seq.]" and "that part" substituted for "that Act" on
    authority of Pub. L. 103-272, Sec. 6(b), July 5, 1994, 108 Stat.
    1378, the first section of which enacted subtitles II, III, and V
    to X of Title 49.


-MISC1-
                                AMENDMENTS                            
      1995 - Subsec. (b)(4). Pub. L. 104-88 substituted "Secretary of
    Transportation, with respect to all carriers subject to the
    jurisdiction of the Surface Transportation Board" for "Interstate
    Commerce Commission with respect to any common carrier subject to
    those Acts".
      1992 - Subsec. (b)(1)(C). Pub. L. 102-550 substituted semicolon
    for period at end.
      1991 - Subsec. (b). Pub. L. 102-242, Sec. 212(e)(2), inserted at
    end "The terms used in paragraph (1) that are not defined in this
    subchapter or otherwise defined in section 3(s) of the Federal
    Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning
    given to them in section 1(b) of the International Banking Act of
    1978 (12 U.S.C. 3101)."
      Pub. L. 102-242, Sec. 212(e)(1), added par. (1) and struck out
    former par. (1) which read as follows: "section 8 of Federal
    Deposit Insurance Act, in the case of - 
        "(A) national banks, by the Comptroller of the Currency;
        "(B) member banks of the Federal Reserve System (other than
      national banks), by the Federal Reserve Board; and
        "(C) banks the deposits or accounts of which are 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;".
      1989 - Subsec. (b)(2). Pub. L. 101-73 amended par. (2) generally.
    Prior to amendment, par. (2) read as follows: "section 5(d) of the
    Home Owners Loan Act of 1933, section 407 of the National Housing
    Act, and sections 6(i) and 17 of the Federal Home Loan Bank Act, by
    the Federal Home Loan Bank Board (acting directly or through the
    Federal Savings and Loan Insurance Corporation), in the case of any
    institution subject to any of those provisions;".
      1984 - Subsec. (b)(5). Pub. L. 98-443 substituted "Secretary of
    Transportation" for "Civil Aeronautics Board".

                     EFFECTIVE DATE OF 1995 AMENDMENT                 
      Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2
    of Pub. L. 104-88, set out as an Effective Date note under section
    701 of Title 49, Transportation.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-550 effective as if included in the
    Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.
    L. 102-242, as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102-
    550, set out as a note under section 191 of Title 12, Banks and
    Banking.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-443 effective Jan. 1, 1985, see section
    9(v) of Pub. L. 98-443, set out as a note under section 5314 of
    Title 5, Government Organization and Employees.


-TRANS-
                           TRANSFER OF FUNCTIONS                       
      Functions vested in Administrator of National Credit Union
    Administration transferred and vested in National Credit Union
    Administration Board pursuant to section 1752a of Title 12, Banks
    and Banking.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    15 USC Sec. 1692m                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692m. Reports to Congress by the Commission; views of other
      Federal agencies

-STATUTE-
      (a) Not later than one year after the effective date of this
    subchapter and at one-year intervals thereafter, the Commission
    shall make reports to the Congress concerning the administration of
    its functions under this subchapter, including such recommendations
    as the Commission deems necessary or appropriate. In addition, each
    report of the Commission shall include its assessment of the extent
    to which compliance with this subchapter is being achieved and a
    summary of the enforcement actions taken by the Commission under
    section 1692l of this title.
      (b) In the exercise of its functions under this subchapter, the
    Commission may obtain upon request the views of any other Federal
    agency which exercises enforcement functions under section 1692l of
    this title.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 815, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 882.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The effective date of this subchapter, referred to in subsec.
    (a), is the date occurring on expiration of six months after Sept.
    20, 1977. See section 819 of Pub. L. 90-321, set out as an
    Effective Date note under section 1692 of this title.

-End-



-CITE-
    15 USC Sec. 1692n                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692n. Relation to State laws

-STATUTE-
      This subchapter does not annul, alter, or affect, or exempt any
    person subject to the provisions of this subchapter from complying
    with the laws of any State with respect to debt collection
    practices, except to the extent that those laws are inconsistent
    with any provision of this subchapter, and then only to the extent
    of the inconsistency. For purposes of this section, a State law is
    not inconsistent with this subchapter if the protection such law
    affords any consumer is greater than the protection provided by
    this subchapter.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 816, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 883.)

-End-



-CITE-
    15 USC Sec. 1692o                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692o. Exemption for State regulation

-STATUTE-
      The Commission shall by regulation exempt from the requirements
    of this subchapter any class of debt collection practices within
    any State if the Commission determines that under the law of that
    State that class of debt collection practices is subject to
    requirements substantially similar to those imposed by this
    subchapter, and that there is adequate provision for enforcement.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 817, as added Pub. L. 95-109,
    Sept. 20, 1977, 91 Stat. 883.)

-End-



-CITE-
    15 USC Sec. 1692p                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER V - DEBT COLLECTION PRACTICES

-HEAD-
    Sec. 1692p. Exception for certain bad check enforcement programs
      operated by private entities

-STATUTE-
    (a) In general
      (1) Treatment of certain private entities
        Subject to paragraph (2), a private entity shall be excluded
      from the definition of a debt collector, pursuant to the
      exception provided in section 1692a(6) of this title, with
      respect to the operation by the entity of a program described in
      paragraph (2)(A) under a contract described in paragraph (2)(B).
      (2) Conditions of applicability
        Paragraph (1) shall apply if - 
          (A) a State or district attorney establishes, within the
        jurisdiction of such State or district attorney and with
        respect to alleged bad check violations that do not involve a
        check described in subsection (b), a pretrial diversion program
        for alleged bad check offenders who agree to participate
        voluntarily in such program to avoid criminal prosecution;
          (B) a private entity, that is subject to an administrative
        support services contract with a State or district attorney and
        operates under the direction, supervision, and control of such
        State or district attorney, operates the pretrial diversion
        program described in subparagraph (A); and
          (C) in the course of performing duties delegated to it by a
        State or district attorney under the contract, the private
        entity referred to in subparagraph (B) - 
            (i) complies with the penal laws of the State;
            (ii) conforms with the terms of the contract and directives
          of the State or district attorney;
            (iii) does not exercise independent prosecutorial
          discretion;
            (iv) contacts any alleged offender referred to in
          subparagraph (A) for purposes of participating in a program
          referred to in such paragraph - 
              (I) only as a result of any determination by the State or
            district attorney that probable cause of a bad check
            violation under State penal law exists, and that contact
            with the alleged offender for purposes of participation in
            the program is appropriate; and
              (II) the alleged offender has failed to pay the bad check
            after demand for payment, pursuant to State law, is made
            for payment of the check amount;

            (v) includes as part of an initial written communication
          with an alleged offender a clear and conspicuous statement
          that - 
              (I) the alleged offender may dispute the validity of any
            alleged bad check violation;
              (II) where the alleged offender knows, or has reasonable
            cause to believe, that the alleged bad check violation is
            the result of theft or forgery of the check, identity
            theft, or other fraud that is not the result of the conduct
            of the alleged offender, the alleged offender may file a
            crime report with the appropriate law enforcement agency;
            and
              (III) if the alleged offender notifies the private entity
            or the district attorney in writing, not later than 30 days
            after being contacted for the first time pursuant to clause
            (iv), that there is a dispute pursuant to this subsection,
            before further restitution efforts are pursued, the
            district attorney or an employee of the district attorney
            authorized to make such a determination makes a
            determination that there is probable cause to believe that
            a crime has been committed; and

            (vi) charges only fees in connection with services under
          the contract that have been authorized by the contract with
          the State or district attorney.
    (b) Certain checks excluded
      A check is described in this subsection if the check involves, or
    is subsequently found to involve - 
        (1) a postdated check presented in connection with a payday
      loan, or other similar transaction, where the payee of the check
      knew that the issuer had insufficient funds at the time the check
      was made, drawn, or delivered;
        (2) a stop payment order where the issuer acted in good faith
      and with reasonable cause in stopping payment on the check;
        (3) a check dishonored because of an adjustment to the issuer's
      account by the financial institution holding such account without
      providing notice to the person at the time the check was made,
      drawn, or delivered;
        (4) a check for partial payment of a debt where the payee had
      previously accepted partial payment for such debt;
        (5) a check issued by a person who was not competent, or was
      not of legal age, to enter into a legal contractual obligation at
      the time the check was made, drawn, or delivered; or
        (6) a check issued to pay an obligation arising from a
      transaction that was illegal in the jurisdiction of the State or
      district attorney at the time the check was made, drawn, or
      delivered.
    (c) Definitions
      For purposes of this section, the following definitions shall
    apply:
      (1) State or district attorney
        The term "State or district attorney" means the chief elected
      or appointed prosecuting attorney in a district, county (as
      defined in section 2 of title 1), municipality, or comparable
      jurisdiction, including State attorneys general who act as chief
      elected or appointed prosecuting attorneys in a district, county
      (as so defined), municipality or comparable jurisdiction, who may
      be referred to by a variety of titles such as district attorneys,
      prosecuting attorneys, commonwealth's attorneys, solicitors,
      county attorneys, and state's attorneys, and who are responsible
      for the prosecution of State crimes and violations of
      jurisdiction-specific local ordinances.
      (2) Check
        The term "check" has the same meaning as in section 5002(6) of
      title 12.
      (3) Bad check violation
        The term "bad check violation" means a violation of the
      applicable State criminal law relating to the writing of
      dishonored checks.

-SOURCE-
    (Pub. L. 90-321, title VIII, Sec. 818, as added Pub. L. 109-351,
    title VIII, Sec. 801(a)(2), Oct. 13, 2006, 120 Stat. 2004.)

-End-


-CITE-
    15 USC SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
                 SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS             

-End-



-CITE-
    15 USC Sec. 1693                                            01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693. Congressional findings and declaration of purpose

-STATUTE-
    (a) Rights and liabilities undefined
      The Congress finds that the use of electronic systems to transfer
    funds provides the potential for substantial benefits to consumers.
    However, due to the unique characteristics of such systems, the
    application of existing consumer protection legislation is unclear,
    leaving the rights and liabilities of consumers, financial
    institutions, and intermediaries in electronic fund transfers
    undefined.
    (b) Purposes
      It is the purpose of this subchapter to provide a basic framework
    establishing the rights, liabilities, and responsibilities of
    participants in electronic fund transfer systems. The primary
    objective of this subchapter, however, is the provision of
    individual consumer rights.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 902, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3728.)


-MISC1-
                              EFFECTIVE DATE                          
      Section 921 of title IX of Pub. L. 90-321, as added Pub. L. 95-
    630, title XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3741, provided
    that: "This title [enacting this subchapter] takes effect upon the
    expiration of eighteen months from the date of its enactment [Nov.
    10, 1978], except that sections 909 and 911 [sections 1693g, 1693i
    of this title] take effect upon the expiration of ninety days after
    the date of enactment."

                                SHORT TITLE                            
      This subchapter known as the "Electronic Fund Transfer Act", see
    Short Title note set out under section 1601 of this title.

-End-



-CITE-
    15 USC Sec. 1693a                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693a. Definitions

-STATUTE-
      As used in this subchapter - 
        (1) the term "accepted card or other means of access" means a
      card, code, or other means of access to a consumer's account for
      the purpose of initiating electronic fund transfers when the
      person to whom such card or other means of access was issued has
      requested and received or has signed or has used, or authorized
      another to use, such card or other means of access for the
      purpose of transferring money between accounts or obtaining
      money, property, labor, or services;
        (2) the term "account" means a demand deposit, savings deposit,
      or other asset account (other than an occasional or incidental
      credit balance in an open end credit plan as defined in section
      1602(i) of this title), as described in regulations of the Board,
      established primarily for personal, family, or household
      purposes, but such term does not include an account held by a
      financial institution pursuant to a bona fide trust agreement;
        (3) the term "Board" means the Board of Governors of the
      Federal Reserve System;
        (4) the term "business day" means any day on which the offices
      of the consumer's financial institution involved in an electronic
      fund transfer are open to the public for carrying on
      substantially all of its business functions;
        (5) the term "consumer" means a natural person;
        (6) the term "electronic fund transfer" means any transfer of
      funds, other than a transaction originated by check, draft, or
      similar paper instrument, which is initiated through an
      electronic terminal, telephonic instrument, or computer or
      magnetic tape so as to order, instruct, or authorize a financial
      institution to debit or credit an account. Such term includes,
      but is not limited to, point-of-sale transfers, automated teller
      machine transactions, direct deposits or withdrawals of funds,
      and transfers initiated by telephone. Such term does not include -
       
          (A) any check guarantee or authorization service which does
        not directly result in a debit or credit to a consumer's
        account: (!1)

          (B) any transfer of funds, other than those processed by
        automated clearinghouse, made by a financial institution on
        behalf of a consumer by means of a service that transfers funds
        held at either Federal Reserve banks or other depository
        institutions and which is not designed primarily to transfer
        funds on behalf of a consumer;
          (C) any transaction the primary purpose of which is the
        purchase or sale of securities or commodities through a broker-
        dealer registered with or regulated by the Securities and
        Exchange Commission;
          (D) any automatic transfer from a savings account to a demand
        deposit account pursuant to an agreement between a consumer and
        a financial institution for the purpose of covering an
        overdraft or maintaining an agreed upon minimum balance in the
        consumer's demand deposit account; or
          (E) any transfer of funds which is initiated by a telephone
        conversation between a consumer and an officer or employee of a
        financial institution which is not pursuant to a prearranged
        plan and under which periodic or recurring transfers are not
        contemplated;

      as determined under regulations of the Board;
        (7) the term "electronic terminal" means an electronic device,
      other than a telephone operated by a consumer, through which a
      consumer may initiate an electronic fund transfer. Such term
      includes, but is not limited to, point-of-sale terminals,
      automated teller machines, and cash dispensing machines;
        (8) 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 who, directly or indirectly, holds an account belonging to
      a consumer;
        (9) the term "preauthorized electronic fund transfer" means an
      electronic fund transfer authorized in advance to recur at
      substantially regular intervals;
        (10) the term "State" means any State, territory, or possession
      of the United States, the District of Columbia, the Commonwealth
      of Puerto Rico, or any political subdivision of any of the
      foregoing; and
        (11) the term "unauthorized electronic fund transfer" means an
      electronic fund transfer from a consumer's account initiated by a
      person other than the consumer without actual authority to
      initiate such transfer and from which the consumer receives no
      benefit, but the term does not include any electronic fund
      transfer (A) initiated by a person other than the consumer who
      was furnished with the card, code, or other means of access to
      such consumer's account by such consumer, unless the consumer has
      notified the financial institution involved that transfers by
      such other person are no longer authorized, (B) initiated with
      fraudulent intent by the consumer or any person acting in concert
      with the consumer, or (C) which constitutes an error committed by
      a financial institution.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 903, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3728.)

-FOOTNOTE-               

    (!1) So in original. The colon probably should be a semicolon.


-End-



-CITE-
    15 USC Sec. 1693b                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693b. Regulations

-STATUTE-
    (a) Prescription by Board
      The Board shall prescribe regulations to carry out the purposes
    of this subchapter. In prescribing such regulations, the Board
    shall:
        (1) consult with the other agencies referred to in section
      1693o of this title and take into account, and allow for, the
      continuing evolution of electronic banking services and the
      technology utilized in such services,
        (2) prepare an analysis of economic impact which considers the
      costs and benefits to financial institutions, consumers, and
      other users of electronic fund transfers, including the extent to
      which additional documentation, reports, records, or other paper
      work would be required, and the effects upon competition in the
      provision of electronic banking services among large and small
      financial institutions and the availability of such services to
      different classes of consumers, particularly low income
      consumers,
        (3) to the extent practicable, the Board shall demonstrate that
      the consumer protections of the proposed regulations outweigh the
      compliance costs imposed upon consumers and financial
      institutions, and
        (4) any proposed regulations and accompanying analyses shall be
      sent promptly to Congress by the Board.
    (b) Issuance of model clauses
      The Board shall issue model clauses for optional use by financial
    institutions to facilitate compliance with the disclosure
    requirements of section 1693c of this title and to aid consumers in
    understanding the rights and responsibilities of participants in
    electronic fund transfers by utilizing readily understandable
    language. Such model clauses shall be adopted after notice duly
    given in the Federal Register and opportunity for public comment in
    accordance with section 553 of title 5. With respect to the
    disclosures required by section 1693c(a)(3) and (4) of this title,
    the Board shall take account of variations in the services and
    charges under different electronic fund transfer systems and, as
    appropriate, shall issue alternative model clauses for disclosure
    of these differing account terms.
    (c) Criteria; modification of requirements
      Regulations prescribed hereunder may contain such
    classifications, differentiations, or other provisions, and may
    provide for such adjustments and exceptions for any class of
    electronic fund transfers, as in the judgment of the Board are
    necessary or proper to effectuate the purposes of this subchapter,
    to prevent circumvention or evasion thereof, or to facilitate
    compliance therewith. The Board shall by regulation modify the
    requirements imposed by this subchapter on small financial
    institutions if the Board determines that such modifications are
    necessary to alleviate any undue compliance burden on small
    financial institutions and such modifications are consistent with
    the purpose and objective of this subchapter.
    (d) Applicability to service providers other than certain financial
      institutions
      (1) In general
        If electronic fund transfer services are made available to
      consumers by a person other than a financial institution holding
      a consumer's account, the Board shall by regulation assure that
      the disclosures, protections, responsibilities, and remedies
      created by this subchapter are made applicable to such persons
      and services.
      (2) State and local government electronic benefit transfer
        systems
        (A) "Electronic benefit transfer system" defined
          In this paragraph, the term "electronic benefit transfer
        system" - 
            (i) means a system under which a government agency
          distributes needs-tested benefits by establishing accounts
          that may be accessed by recipients electronically, such as
          through automated teller machines or point-of-sale terminals;
          and
            (ii) does not include employment-related payments,
          including salaries and pension, retirement, or unemployment
          benefits established by a Federal, State, or local government
          agency.
        (B) Exemption generally
          The disclosures, protections, responsibilities, and remedies
        established under this subchapter, and any regulation
        prescribed or order issued by the Board in accordance with this
        subchapter, shall not apply to any electronic benefit transfer
        system established under State or local law or administered by
        a State or local government.
        (C) Exception for direct deposit into recipient's account
          Subparagraph (B) shall not apply with respect to any
        electronic funds transfer under an electronic benefit transfer
        system for a deposit directly into a consumer account held by
        the recipient of the benefit.
        (D) Rule of construction
          No provision of this paragraph - 
            (i) affects or alters the protections otherwise applicable
          with respect to benefits established by any other provision
          (!1) Federal, State, or local law; or

            (ii) otherwise supersedes the application of any State or
          local law.
      (3) Fee disclosures at automated teller machines
        (A) In general
          The regulations prescribed under paragraph (1) shall require
        any automated teller machine operator who imposes a fee on any
        consumer for providing host transfer services to such consumer
        to provide notice in accordance with subparagraph (B) to the
        consumer (at the time the service is provided) of - 
            (i) the fact that a fee is imposed by such operator for
          providing the service; and
            (ii) the amount of any such fee.
        (B) Notice requirements
          (i) On the machine
            The notice required under clause (i) of subparagraph (A)
          with respect to any fee described in such subparagraph shall
          be posted in a prominent and conspicuous location on or at
          the automated teller machine at which the electronic fund
          transfer is initiated by the consumer.
          (ii) On the screen
            The notice required under clauses (i) and (ii) of
          subparagraph (A) with respect to any fee described in such
          subparagraph shall appear on the screen of the automated
          teller machine, or on a paper notice issued from such
          machine, after the transaction is initiated and before the
          consumer is irrevocably committed to completing the
          transaction, except that during the period beginning on
          November 12, 1999, and ending on December 31, 2004, this
          clause shall not apply to any automated teller machine that
          lacks the technical capability to disclose the notice on the
          screen or to issue a paper notice after the transaction is
          initiated and before the consumer is irrevocably committed to
          completing the transaction.
        (C) Prohibition on fees not properly disclosed and explicitly
          assumed by consumer
          No fee may be imposed by any automated teller machine
        operator in connection with any electronic fund transfer
        initiated by a consumer for which a notice is required under
        subparagraph (A), unless - 
            (i) the consumer receives such notice in accordance with
          subparagraph (B); and
            (ii) the consumer elects to continue in the manner
          necessary to effect the transaction after receiving such
          notice.
        (D) Definitions
          For purposes of this paragraph, the following definitions
        shall apply:
          (i) Automated teller machine operator
            The term "automated teller machine operator" means any
          person who - 
              (I) operates an automated teller machine at which
            consumers initiate electronic fund transfers; and
              (II) is not the financial institution that holds the
            account of such consumer from which the transfer is made.
          (ii) Electronic fund transfer
            The term "electronic fund transfer" includes a transaction
          that involves a balance inquiry initiated by a consumer in
          the same manner as an electronic fund transfer, whether or
          not the consumer initiates a transfer of funds in the course
          of the transaction.
          (iii) Host transfer services
            The term "host transfer services" means any electronic fund
          transfer made by an automated teller machine operator in
          connection with a transaction initiated by a consumer at an
          automated teller machine operated by such operator.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 904, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3730; amended Pub. L. 104-
    193, title VIII, Sec. 891, title IX, Sec. 907, Aug. 22, 1996, 110
    Stat. 2346, 2350; Pub. L. 106-102, title VII, Sec. 702, Nov. 12,
    1999, 113 Stat. 1463.)


-MISC1-
                                AMENDMENTS                            
      1999 - Subsec. (d)(3). Pub. L. 106-102 added par. (3).
      1996 - Subsec. (d). Pub. L. 104-193, Sec. 907, which directed the
    amendment of subsec. (d), was not executed because similar
    amendment by Pub. L. 104-193, Sec. 891. See below. Section 907 of
    Pub. L. 104-193 provided that subsec. (d) was to be amended by
    inserting subsec. (d) heading, by designating existing provisions
    as par. (1) and inserting heading, and by adding a new par. (2)
    reading as follows:
      "(2) State and local government electronic benefit transfer
    programs. - 
        "(A) Exemption generally. - The disclosures, protections,
      responsibilities, and remedies established under this subchapter,
      and any regulation prescribed or order issued by the Board in
      accordance with this subchapter, shall not apply to any
      electronic benefit transfer program established under State or
      local law or administered by a State or local government.
        "(B) Exception for direct deposit into recipient's account. -
      Subparagraph (A) shall not apply with respect to any electronic
      funds transfer under an electronic benefit transfer program for
      deposits directly into a consumer account held by the recipient
      of the benefit.
        "(C) Rule of construction. - No provision of this paragraph may
      be construed as - 
          "(i) affecting or altering the protections otherwise
        applicable with respect to benefits established by Federal,
        State, or local law; or
          "(ii) otherwise superseding the application of any State or
        local law.
        "(D) Electronic benefit transfer program defined. - For
      purposes of this paragraph, the term 'electronic benefit transfer
      program' - 
          "(i) means a program under which a government agency
        distributes needs-tested benefits by establishing accounts to
        be accessed by recipients electronically, such as through
        automated teller machines, or point-of-sale terminals; and
          "(ii) does not include employment-related payments, including
        salaries and pension, retirement, or unemployment benefits
        established by Federal, State, or local governments."
      Pub. L. 104-193, Sec. 891, designated existing provisions as par.
    (1), inserted subsec. heading and par. (2), and substituted "If"
    for "In the event that".

-FOOTNOTE-
    (!1) So in original. Probably should be followed by "of".


-End-



-CITE-
    15 USC Sec. 1693c                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693c. Terms and conditions of transfers

-STATUTE-
    (a) Disclosures; time; form; contents
      The terms and conditions of electronic fund transfers involving a
    consumer's account shall be disclosed at the time the consumer
    contracts for an electronic fund transfer service, in accordance
    with regulations of the Board. Such disclosures shall be in readily
    understandable language and shall include, to the extent applicable
    - 
        (1) the consumer's liability for unauthorized electronic fund
      transfers and, at the financial institution's option, notice of
      the advisability of prompt reporting of any loss, theft, or
      unauthorized use of a card, code, or other means of access;
        (2) the telephone number and address of the person or office to
      be notified in the event the consumer believes than (!1) an
      unauthorized electronic fund transfer has been or may be
      effected;

        (3) the type and nature of electronic fund transfers which the
      consumer may initiate, including any limitations on the frequency
      or dollar amount of such transfers, except that the details of
      such limitations need not be disclosed if their confidentiality
      is necessary to maintain the security of an electronic fund
      transfer system, as determined by the Board;
        (4) any charges for electronic fund transfers or for the right
      to make such transfers;
        (5) the consumer's right to stop payment of a preauthorized
      electronic fund transfer and the procedure to initiate such a
      stop payment order;
        (6) the consumer's right to receive documentation of electronic
      fund transfers under section 1693d of this title;
        (7) a summary, in a form prescribed by regulations of the
      Board, of the error resolution provisions of section 1693f of
      this title and the consumer's rights thereunder. The financial
      institution shall thereafter transmit such summary at least once
      per calendar year;
        (8) the financial institution's liability to the consumer under
      section 1693h of this title;
        (9) under what circumstances the financial institution will in
      the ordinary course of business disclose information concerning
      the consumer's account to third persons; and
        (10) a notice to the consumer that a fee may be imposed by - 
          (A) an automated teller machine operator (as defined in
        section 1693b(d)(3)(D)(i) of this title) if the consumer
        initiates a transfer from an automated teller machine that is
        not operated by the person issuing the card or other means of
        access; and
          (B) any national, regional, or local network utilized to
        effect the transaction.
    (b) Notification of changes to consumer
      A financial institution shall notify a consumer in writing at
    least twenty-one days prior to the effective date of any change in
    any term or condition of the consumer's account required to be
    disclosed under subsection (a) of this section if such change would
    result in greater cost or liability for such consumer or decreased
    access to the consumer's account. A financial institution may,
    however, implement a change in the terms or conditions of an
    account without prior notice when such change is immediately
    necessary to maintain or restore the security of an electronic fund
    transfer system or a consumer's account. Subject to subsection
    (a)(3) of this section, the Board shall require subsequent
    notification if such a change is made permanent.
    (c) Time for disclosures respecting accounts accessible prior to
      effective date of this subchapter
      For any account of a consumer made accessible to electronic fund
    transfers prior to the effective date of this subchapter, the
    information required to be disclosed to the consumer under
    subsection (a) of this section shall be disclosed not later than
    the earlier of - 
        (1) the first periodic statement required by section 1693d(c)
      of this title after the effective date of this subchapter; or
        (2) thirty days after the effective date of this subchapter.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 905, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3730; amended Pub. L. 106-
    102, title VII, Sec. 703, Nov. 12, 1999, 113 Stat. 1464.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For effective date of this subchapter, referred to in subsec.
    (c), see section 921 of Pub. L. 90-321, set out as an Effective
    Date note under section 1693 of this title.


-MISC1-
                                AMENDMENTS                            
      1999 - Subsec. (a)(10). Pub. L. 106-102 added par. (10).

-FOOTNOTE-
    (!1) So in original. Probably should be "that".


-End-



-CITE-
    15 USC Sec. 1693d                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693d. Documentation of transfers

-STATUTE-
    (a) Availability of written documentation to consumer; contents
      For each electronic fund transfer initiated by a consumer from an
    electronic terminal, the financial institution holding such
    consumer's account shall, directly or indirectly, at the time the
    transfer is initiated, make available to the consumer written
    documentation of such transfer. The documentation shall clearly set
    forth to the extent applicable - 
        (1) the amount involved and date the transfer is initiated;
        (2) the type of transfer;
        (3) the identity of the consumer's account with the financial
      institution from which or to which funds are transferred;
        (4) the identity of any third party to whom or from whom funds
      are transferred; and
        (5) the location or identification of the electronic terminal
      involved.
    (b) Notice of credit to consumer
      For a consumer's account which is scheduled to be credited by a
    preauthorized electronic fund transfer from the same payor at least
    once in each successive sixty-day period, except where the payor
    provides positive notice of the transfer to the consumer, the
    financial institution shall elect to provide promptly either
    positive notice to the consumer when the credit is made as
    scheduled, or negative notice to the consumer when the credit is
    not made as scheduled, in accordance with regulations of the Board.
    The means of notice elected shall be disclosed to the consumer in
    accordance with section 1693c of this title.
    (c) Periodic statement; contents
      A financial institution shall provide each consumer with a
    periodic statement for each account of such consumer that may be
    accessed by means of an electronic fund transfer. Except as
    provided in subsections (d) and (e) of this section, such statement
    shall be provided at least monthly for each monthly or shorter
    cycle in which an electronic fund transfer affecting the account
    has occurred, or every three months, whichever is more frequent.
    The statement, which may include information regarding transactions
    other than electronic fund transfers, shall clearly set forth - 
        (1) with regard to each electronic fund transfer during the
      period, the information described in subsection (a) of this
      section, which may be provided on an accompanying document;
        (2) the amount of any fee or charge assessed by the financial
      institution during the period for electronic fund transfers or
      for account maintenance;
        (3) the balances in the consumer's account at the beginning of
      the period and at the close of the period; and
        (4) the address and telephone number to be used by the
      financial institution for the purpose of receiving any statement
      inquiry or notice of account error from the consumer. Such
      address and telephone number shall be preceded by the caption
      "Direct Inquiries To:" or other similar language indicating that
      the address and number are to be used for such inquiries or
      notices.
    (d) Consumer passbook accounts
      In the case of a consumer's passbook account which may not be
    accessed by electronic fund transfers other than preauthorized
    electronic fund transfers crediting the account, a financial
    institution may, in lieu of complying with the requirements of
    subsection (c) of this section, upon presentation of the passbook
    provide the consumer in writing with the amount and date of each
    such transfer involving the account since the passbook was last
    presented.
    (e) Accounts other than passbook accounts
      In the case of a consumer's account, other than a passbook
    account, which may not be accessed by electronic fund transfers
    other than preauthorized electronic fund transfers crediting the
    account, the financial institution may provide a periodic statement
    on a quarterly basis which otherwise complies with the requirements
    of subsection (c) of this section.
    (f) Documentation as evidence
      In any action involving a consumer, any documentation required by
    this section to be given to the consumer which indicates that an
    electronic fund transfer was made to another person shall be
    admissible as evidence of such transfer and shall constitute prima
    facie proof that such transfer was made.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 906, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3731.)

-End-



-CITE-
    15 USC Sec. 1693e                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693e. Preauthorized transfers

-STATUTE-
      (a) A preauthorized electronic fund transfer from a consumer's
    account may be authorized by the consumer only in writing, and a
    copy of such authorization shall be provided to the consumer when
    made. A consumer may stop payment of a preauthorized electronic
    fund transfer by notifying the financial institution orally or in
    writing at any time up to three business days preceding the
    scheduled date of such transfer. The financial institution may
    require written confirmation to be provided to it within fourteen
    days of an oral notification if, when the oral notification is
    made, the consumer is advised of such requirement and the address
    to which such confirmation should be sent.
      (b) In the case of preauthorized transfers from a consumer's
    account to the same person which may vary in amount, the financial
    institution or designated payee shall, prior to each transfer,
    provide reasonable advance notice to the consumer, in accordance
    with regulations of the Board, of the amount to be transferred and
    the scheduled date of the transfer.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 907, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3733.)

-End-



-CITE-
    15 USC Sec. 1693f                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693f. Error resolution

-STATUTE-
    (a) Notification to financial institution of error
      If a financial institution, within sixty days after having
    transmitted to a consumer documentation pursuant to section
    1693d(a), (c), or (d) of this title or notification pursuant to
    section 1693d(b) of this title, receives oral or written notice in
    which the consumer - 
        (1) sets forth or otherwise enables the financial institution
      to identify the name and account number of the consumer;
        (2) indicates the consumer's belief that the documentation, or,
      in the case of notification pursuant to section 1693d(b) of this
      title, the consumer's account, contains an error and the amount
      of such error; and
        (3) sets forth the reasons for the consumer's belief (where
      applicable) that an error has occurred,

    the financial institution shall investigate the alleged error,
    determine whether an error has occurred, and report or mail the
    results of such investigation and determination to the consumer
    within ten business days. The financial institution may require
    written confirmation to be provided to it within ten business days
    of an oral notification of error if, when the oral notification is
    made, the consumer is advised of such requirement and the address
    to which such confirmation should be sent. A financial institution
    which requires written confirmation in accordance with the previous
    sentence need not provisionally recredit a consumer's account in
    accordance with subsection (c) of this section, nor shall the
    financial institution be liable under subsection (e) of this
    section if the written confirmation is not received within the ten-
    day period referred to in the previous sentence.
    (b) Correction of error; interest
      If the financial institution determines that an error did occur,
    it shall promptly, but in no event more than one business day after
    such determination, correct the error, subject to section 1693g of
    this title, including the crediting of interest where applicable.
    (c) Provisional recredit of consumer's account
      If a financial institution receives notice of an error in the
    manner and within the time period specified in subsection (a) of
    this section, it may, in lieu of the requirements of subsections
    (a) and (b) of this section, within ten business days after
    receiving such notice provisionally recredit the consumer's account
    for the amount alleged to be in error, subject to section 1693g of
    this title, including interest where applicable, pending the
    conclusion of its investigation and its determination of whether an
    error has occurred. Such investigation shall be concluded not later
    than forty-five days after receipt of notice of the error. During
    the pendency of the investigation, the consumer shall have full use
    of the funds provisionally recredited.
    (d) Absence of error; finding; explanation
      If the financial institution determines after its investigation
    pursuant to subsection (a) or (c) of this section that an error did
    not occur, it shall deliver or mail to the consumer an explanation
    of its findings within 3 business days after the conclusion of its
    investigation, and upon request of the consumer promptly deliver or
    mail to the consumer reproductions of all documents which the
    financial institution relied on to conclude that such error did not
    occur. The financial institution shall include notice of the right
    to request reproductions with the explanation of its findings.
    (e) Treble damages
       If in any action under section 1693m of this title, the court
    finds that - 
        (1) the financial institution did not provisionally recredit a
      consumer's account within the ten-day period specified in
      subsection (c) of this section, and the financial institution (A)
      did not make a good faith investigation of the alleged error, or
      (B) did not have a reasonable basis for believing that the
      consumer's account was not in error; or
        (2) the financial institution knowingly and willfully concluded
      that the consumer's account was not in error when such conclusion
      could not reasonably have been drawn from the evidence available
      to the financial institution at the time of its investigation,

    then the consumer shall be entitled to treble damages determined
    under section 1693m(a)(1) of this title.
    (f) Acts constituting error
      For the purpose of this section, an error consists of - 
        (1) an unauthorized electronic fund transfer;
        (2) an incorrect electronic fund transfer from or to the
      consumer's account;
        (3) the omission from a periodic statement of an electronic
      fund transfer affecting the consumer's account which should have
      been included;
        (4) a computational error by the financial institution;
        (5) the consumer's receipt of an incorrect amount of money from
      an electronic terminal;
        (6) a consumer's request for additional information or
      clarification concerning an electronic fund transfer or any
      documentation required by this subchapter; or
        (7) any other error described in regulations of the Board.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 908, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3733.)

-End-



-CITE-
    15 USC Sec. 1693g                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693g. Consumer liability

-STATUTE-
    (a) Unauthorized electronic fund transfers; limit
      A consumer shall be liable for any unauthorized electronic fund
    transfer involving the account of such consumer only if the card or
    other means of access utilized for such transfer was an accepted
    card or other meanas (!1) of access and if the issuer of such card,
    code, or other means of access has provided a means whereby the
    user of such card, code, or other means of access can be identified
    as the person authorized to use it, such as by signature,
    photograph, or fingerprint or by electronic or mechanical
    confirmation. In no event, however, shall a consumer's liability
    for an unauthorized transfer exceed the lesser of - 

        (1) $50; or
        (2) the amount of money or value of property or services
      obtained in such unauthorized electronic fund transfer prior to
      the time the financial institution is notified of, or otherwise
      becomes aware of, circumstances which lead to the reasonable
      belief that an unauthorized electronic fund transfer involving
      the consumer's account has been or may be effected. Notice under
      this paragraph is sufficient when such steps have been taken as
      may be reasonably required in the ordinary course of business to
      provide the financial institution with the pertinent information,
      whether or not any particular officer, employee, or agent of the
      financial institution does in fact receive such information.

    Notwithstanding the foregoing, reimbursement need not be made to
    the consumer for losses the financial institution establishes would
    not have occurred but for the failure of the consumer to report
    within sixty days of transmittal of the statement (or in
    extenuating circumstances such as extended travel or
    hospitalization, within a reasonable time under the circumstances)
    any unauthorized electronic fund transfer or account error which
    appears on the periodic statement provided to the consumer under
    section 1693d of this title. In addition, reimbursement need not be
    made to the consumer for losses which the financial institution
    establishes would not have occurred but for the failure of the
    consumer to report any loss or theft of a card or other means of
    access within two business days after the consumer learns of the
    loss or theft (or in extenuating circumstances such as extended
    travel or hospitalization, within a longer period which is
    reasonable under the circumstances), but the consumer's liability
    under this subsection in any such case may not exceed a total of
    $500, or the amount of unauthorized electronic fund transfers which
    occur following the close of two business days (or such longer
    period) after the consumer learns of the loss or theft but prior to
    notice to the financial institution under this subsection,
    whichever is less.
    (b) Burden of proof
      In any action which involves a consumer's liability for an
    unauthorized electronic fund transfer, the burden of proof is upon
    the financial institution to show that the electronic fund transfer
    was authorized or, if the electronic fund transfer was
    unauthorized, then the burden of proof is upon the financial
    institution to establish that the conditions of liability set forth
    in subsection (a) of this section have been met, and, if the
    transfer was initiated after the effective date of section 1693c of
    this title, that the disclosures required to be made to the
    consumer under section 1693c(a)(1) and (2) of this title were in
    fact made in accordance with such section.
    (c) Determination of limitation on liability
      In the event of a transaction which involves both an unauthorized
    electronic fund transfer and an extension of credit as defined in
    section 1602(e) of this title pursuant to an agreement between the
    consumer and the financial institution to extend such credit to the
    consumer in the event the consumer's account is overdrawn, the
    limitation on the consumer's liability for such transaction shall
    be determined solely in accordance with this section.
    (d) Restriction on liability
      Nothing in this section imposes liability upon a consumer for an
    unauthorized electronic fund transfer in excess of his liability
    for such a transfer under other applicable law or under any
    agreement with the consumer's financial institution.
    (e) Scope of liability
      Except as provided in this section, a consumer incurs no
    liability from an unauthorized electronic fund transfer.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 909, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3734.)

-FOOTNOTE-
    (!1) So in original. Probably should be "means".


-End-



-CITE-
    15 USC Sec. 1693h                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693h. Liability of financial institutions

-STATUTE-
    (a) Action or failure to act proximately causing damages
      Subject to subsections (b) and (c) of this section, a financial
    institution shall be liable to a consumer for all damages
    proximately caused by - 
        (1) the financial institution's failure to make an electronic
      fund transfer, in accordance with the terms and conditions of an
      account, in the correct amount or in a timely manner when
      properly instructed to do so by the consumer, except where - 
          (A) the consumer's account has insufficient funds;
          (B) the funds are subject to legal process or other
        encumbrance restricting such transfer;
          (C) such transfer would exceed an established credit limit;
          (D) an electronic terminal has insufficient cash to complete
        the transaction; or
          (E) as otherwise provided in regulations of the Board;

        (2) the financial institution's failure to make an electronic
      fund transfer due to insufficient funds when the financal (!1)
      institution failed to credit, in accordance with the terms and
      conditions of an account, a deposit of funds to the consumer's
      account which would have provided sufficient funds to make the
      transfer, and

        (3) the financial institution's failure to stop payment of a
      preauthorized transfer from a consumer's account when instructed
      to do so in accordance with the terms and conditions of the
      account.
    (b) Acts of God and technical malfunctions
      A financial institution shall not be liable under subsection
    (a)(1) or (2) of this section if the financial institution shows by
    a preponderance of the evidence that its action or failure to act
    resulted from - 
        (1) an act of God or other circumstance beyond its control,
      that it exercised reasonable care to prevent such an occurrence,
      and that it exercised such diligence as the circumstances
      required; or
        (2) a technical malfunction which was known to the consumer at
      the time he attempted to initiate an electronic fund transfer or,
      in the case of a preauthorized transfer, at the time such
      transfer should have occurred.
    (c) Intent
      In the case of a failure described in subsection (a) of this
    section which was not intentional and which resulted from a bona
    fide error, notwithstanding the maintenance of procedures
    reasonably adapted to avoid any such error, the financial
    institution shall be liable for actual damages proved.
    (d) Exception for damaged notices
      If the notice required to be posted pursuant to section
    1693b(d)(3)(B)(i) of this title by an automated teller machine
    operator has been posted by such operator in compliance with such
    section and the notice is subsequently removed, damaged, or altered
    by any person other than the operator of the automated teller
    machine, the operator shall have no liability under this section
    for failure to comply with section 1693b(d)(3)(B)(i) of this title.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 910, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3735; amended Pub. L. 106-
    102, title VII, Sec. 705, Nov. 12, 1999, 113 Stat. 1465.)


-MISC1-
                                AMENDMENTS                            
      1999 - Subsec. (d). Pub. L. 106-102 added subsec. (d).

-FOOTNOTE-
    (!1) So in original. Probably should be "financial".


-End-



-CITE-
    15 USC Sec. 1693i                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693i. Issuance of cards or other means of access

-STATUTE-
    (a) Prohibition; proper issuance
      No person may issue to a consumer any card, code, or other means
    of access to such consumer's account for the purpose of initiating
    an electronic fund transfer other than - 
        (1) in response to a request or application therefor; or
        (2) as a renewal of, or in substitution for, an accepted card,
      code, or other means of access, whether issued by the initial
      issuer or a successor.
    (b) Exceptions
      Notwithstanding the provisions of subsection (a) of this section,
    a person may distribute to a consumer on an unsolicited basis a
    card, code, or other means of access for use in initiating an
    electronic fund transfer from such consumer's account, if - 
        (1) such card, code, or other means of access is not validated;
        (2) such distribution is accompanied by a complete disclosure,
      in accordance with section 1693c of this title, of the consumer's
      rights and liabilities which will apply if such card, code, or
      other means of access is validated;
        (3) such distribution is accompanied by a clear explanation, in
      accordance with regulations of the Board, that such card, code,
      or other means of access is not validated and how the consumer
      may dispose of such code, card, or other means of access if
      validation is not desired; and
        (4) such card, code, or other means of access is validated only
      in response to a request or application from the consumer, upon
      verification of the consumer's identity.
    (c) Validation
      For the purpose of subsection (b) of this section, a card, code,
    or other means of access is validated when it may be used to
    initiate an electronic fund transfer.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 911, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3736.)

-End-



-CITE-
    15 USC Sec. 1693j                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693j. Suspension of obligations

-STATUTE-
      If a system malfunction prevents the effectuation of an
    electronic fund transfer initiated by a consumer to another person,
    and such other person has agreed to accept payment by such means,
    the consumer's obligation to the other person shall be suspended
    until the malfunction is corrected and the electronic fund transfer
    may be completed, unless such other person has subsequently, by
    written request, demanded payment by means other than an electronic
    fund transfer.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 912, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3737.)

-End-



-CITE-
    15 USC Sec. 1693k                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693k. Compulsory use of electronic fund transfers

-STATUTE-
      No person may - 
        (1) condition the extension of credit to a consumer on such
      consumer's repayment by means of preauthorized electronic fund
      transfers; or
        (2) require a consumer to establish an account for receipt of
      electronic fund transfers with a particular financial institution
      as a condition of employment or receipt of a government benefit.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 913, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3737.)

-End-



-CITE-
    15 USC Sec. 1693l                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693l. Waiver of rights

-STATUTE-
      No writing or other agreement between a consumer and any other
    person may contain any provision which constitutes a waiver of any
    right conferred or cause of action created by this subchapter.
    Nothing in this section prohibits, however, any writing or other
    agreement which grants to a consumer a more extensive right or
    remedy or greater protection than contained in this subchapter or a
    waiver given in settlement of a dispute or action.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 914, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3737.)

-End-



-CITE-
    15 USC Sec. 1693m                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693m. Civil liability

-STATUTE-
    (a) Individual or class action for damages; amount of award
      Except as otherwise provided by this section and section 1693h of
    this title, any person who fails to comply with any provision of
    this subchapter with respect to any consumer, except for an error
    resolved in accordance with section 1693f of this title, is liable
    to such consumer in an amount equal to the sum of - 
        (1) any actual damage sustained by such consumer as a result of
      such failure;
        (2)(A) in the case of an individual action, an amount not less
      than $100 nor greater than $1,000; or
        (B) in the case of a class action, such amount as the court may
      allow, except that (i) as to each member of the class no minimum
      recovery shall be applicable, and (ii) the total recovery under
      this subparagraph in any class action or series of class actions
      arising out of the same failure to comply by the same person
      shall not be more than the lesser of $500,000 or 1 per centum of
      the net worth of the defendant; and
        (3) in the case of any successful action to enforce the
      foregoing liability, the costs of the action, together with a
      reasonable attorney's fee as determined by the court.
    (b) Factors determining amount of award
      In determining the amount of liability in any action under
    subsection (a) of this section, the court shall consider, among
    other relevant factors - 
        (1) in any individual action under subsection (a)(2)(A) of this
      section, the frequency and persistence of noncompliance, the
      nature of such noncompliance, and the extent to which the
      noncompliance was intentional; or
        (2) in any class action under subsection (a)(2)(B) of this
      section, the frequency and persistence of noncompliance, the
      nature of such noncompliance, the resources of the defendant, the
      number of persons adversely affected, and the extent to which the
      noncompliance was intentional.
    (c) Unintentional violations; bona fide error
      Except as provided in section 1693h of this title, a person may
    not be held liable in any action brought under this section for a
    violation of this subchapter if the person shows by a preponderance
    of evidence that the violation was not intentional and resulted
    from a bona fide error notwithstanding the maintenance of
    procedures reasonably adapted to avoid any such error.
    (d) Good faith compliance with rule, regulation, or interpretation
      of Board or approval of duly authorized official or employee of
      Federal Reserve System
      No provision of this section or section 1693n of this title
    imposing any liability shall apply to - 
        (1) any act done or omitted in good faith in conformity with
      any rule, regulation, or interpretation thereof by the Board or
      in conformity with any interpretation or approval by an official
      or employee of the Federal Reserve System duly authorized by the
      Board to issue such interpretations or approvals under such
      procedures as the Board may prescribe therefor; or
        (2) any failure to make disclosure in proper form if a
      financial institution utilized an appropriate model clause issued
      by the Board,

    notwithstanding that after such act, omission, or failure has
    occurred, such rule, regulation, approval, or model clause is
    amended, rescinded, or determined by judicial or other authority to
    be invalid for any reason.
    (e) Notification to consumer prior to action; adjustment of
      consumer's account
      A person has no liability under this section for any failure to
    comply with any requirement under this subchapter if, prior to the
    institution of an action under this section, the person notifies
    the consumer concerned of the failure, complies with the
    requirements of this subchapter, and makes an appropriate
    adjustment to the consumer's account and pays actual damages or,
    where applicable, damages in accordance with section 1693h of this
    title.
    (f) Action in bad faith or for harassment; attorney's fees
      On a finding by the court that an unsuccessful action under this
    section was brought in bad faith or for purposes of harassment, the
    court shall award to the defendant attorney's fees reasonable in
    relation to the work expended and costs.
    (g) Jurisdiction of courts; time for maintenance of action
      Without regard to the amount in controversy, any action under
    this section may be brought in any United States district court, or
    in any other court of competent jurisdiction, within one year from
    the date of the occurrence of the violation.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 915, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3737.)

-End-



-CITE-
    15 USC Sec. 1693n                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693n. Criminal liability

-STATUTE-
    (a) Violations respecting giving of false or inaccurate
      information, failure to provide information, and failure to
      comply with provisions of this subchapter
      Whoever knowingly and willfully - 
        (1) gives false or inaccurate information or fails to provide
      information which he is required to disclose by this subchapter
      or any regulation issued thereunder; or
        (2) otherwise fails to comply with any provision of this
      subchapter;

    shall be fined not more than $5,000 or imprisoned not more than one
    year, or both.
    (b) Violations affecting interstate or foreign commerce
      Whoever - 
        (1) knowingly, in a transaction affecting interstate or foreign
      commerce, uses or attempts or conspires to use any counterfeit,
      fictitious, altered, forged, lost, stolen, or fraudulently
      obtained debit instrument to obtain money, goods, services, or
      anything else of value which within any one-year period has a
      value aggregating $1,000 or more; or
        (2) with unlawful or fraudulent intent, transports or attempts
      or conspires to transport in interstate or foreign commerce a
      counterfeit, fictitious, altered, forged, lost, stolen, or
      fraudulently obtained debit instrument knowing the same to be
      counterfeit, fictitious, altered, forged, lost, stolen, or
      fraudulently obtained; or
        (3) with unlawful or fraudulent intent, uses any
      instrumentality of interstate or foreign commerce to sell or
      transport a counterfeit, fictitious, altered, forged, lost,
      stolen, or fraudulently obtained debit instrument knowing the
      same to be counterfeit, fictitious, altered, forged, lost,
      stolen, or fraudulently obtained; or
        (4) knowingly receives, conceals, uses, or transports money,
      goods, services, or anything else of value (except tickets for
      interstate or foreign transportation) which (A) within any one-
      year period has a value aggregating $1,000 or more, (B) has
      moved in or is part of, or which constitutes interstate or
      foreign commerce, and (C) has been obtained with a counterfeit,
      fictitious, altered, forged, lost, stolen, or fraudulently
      obtained debit instrument; or
        (5) knowingly receives, conceals, uses, sells, or transports in
      interstate or foreign commerce one or more tickets for interstate
      or foreign transportation, which (A) within any one-year period
      have a value aggregating $500 or more, and (B) have been
      purchased or obtained with one or more counterfeit, fictitious,
      altered, forged, lost, stolen, or fraudulently obtained debit
      instrument; or
        (6) in a transaction affecting interstate or foreign commerce,
      furnishes money, property, services, or anything else of value,
      which within any one-year period has a value aggregating $1,000
      or more, through the use of any counterfeit, fictitious, altered,
      forged, lost, stolen, or fraudulently obtained debit instrument
      knowing the same to be counterfeit, fictitious, altered, forged,
      lost, stolen, or fraudulently obtained - 

    shall be fined not more than $10,000 or imprisoned not more than
    ten years, or both.
    (c) "Debit instrument" defined
      As used in this section, the term "debit instrument" means a
    card, code, or other device, other than a check, draft, or similar
    paper instrument, by the use of which a person may initiate an
    electronic fund transfer.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 916, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3738.)

-End-



-CITE-
    15 USC Sec. 1693o                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693o. Administrative enforcement

-STATUTE-
    (a) Enforcing agencies
      Compliance with the requirements imposed under this subchapter
    shall be enforced under - 
        (1) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
      1818], in the case of - 
          (A) national banks, and Federal branches and Federal agencies
        of foreign banks, by the Office of the Comptroller of the
        Currency;
          (B) member banks of the Federal Reserve System (other than
        national banks), branches and agencies of foreign banks (other
        than Federal branches, Federal agencies, and insured State
        branches of foreign banks), commercial lending companies owned
        or controlled by foreign banks, and organizations operating
        under section 25 or 25(a) (!1) of the Federal Reserve Act [12
        U.S.C. 601 et seq., 611 et seq.], by the Board; and

          (C) banks insured by the Federal Deposit Insurance
        Corporation (other than members of the Federal Reserve System)
        and insured State branches of foreign banks, by the Board of
        Directors of the Federal Deposit Insurance Corporation;

        (2) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
      1818], by the Director of the Office of Thrift Supervision, in
      the case of a savings association the deposits of which are
      insured by the Federal Deposit Insurance Corporation;
        (3) the Federal Credit Union Act [12 U.S.C. 1751 et seq.], by
      the Administrator of the National Credit Union Administration
      with respect to any Federal credit union.(!2)

        (4) part A of subtitle VII of title 49, by the Secretary of
      Transportation, with respect to any air carrier or foreign air
      carrier subject to that part; and
        (5) the Securities Exchange Act of 1934 [15 U.S.C. 78a et
      seq.], by the Securities and Exchange Commission, with respect to
      any broker or dealer subject to that Act.

    The terms used in paragraph (1) that are not defined in this
    subchapter or otherwise defined in section 3(s) of the Federal
    Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning
    given to them in section 1(b) of the International Banking Act of
    1978 (12 U.S.C. 3101).
    (b) Violations of subchapter deemed violations of pre-existing
      statutory requirements; additional powers
      For the purpose of the exercise by any agency referred to in
    subsection (a) of this section of its powers under any Act referred
    to in that subsection, a violation of any requirement imposed under
    this subchapter 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 (a) of this
    section, each of the agencies referred to in that subsection may
    exercise, for the purpose of enforcing compliance with any
    requirement imposed under this subchapter, any other authority
    conferred on it by law.
    (c) Overall enforcement authority of Federal Trade Commission
      Except to the extent that enforcement of the requirements imposed
    under this subchapter is specifically committed to some other
    Government agency under subsection (a) of this section, the Federal
    Trade Commission shall enforce such requirements. For the purpose
    of the exercise by the Federal Trade Commission of its functions
    and powers under the Federal Trade Commission Act [15 U.S.C. 41 et
    seq.], a violation of any requirement imposed under this subchapter
    shall be deemed a violation of a requirement imposed under that
    Act. All of the functions and powers of the Federal Trade
    Commission under the Federal Trade Commission Act are available to
    the Commission to enforce compliance by any person subject to the
    jurisdiction of the Commission with the requirements imposed under
    this subchapter, irrespective of whether that person is engaged in
    commerce or meets any other jurisdictional tests in the Federal
    Trade Commission Act.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 917, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3739; amended Pub. L. 101-
    73, title VII, Sec. 744(o), Aug. 9, 1989, 103 Stat. 440; Pub. L.
    102-242, title II, Sec. 212(f), Dec. 19, 1991, 105 Stat. 2301; Pub.
    L. 104-287, Sec. 6(h), Oct. 11, 1996, 110 Stat. 3399.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 25(a) of the Federal Reserve Act, referred to in subsec.
    (a)(1)(B), which is classified to subchapter II (Sec. 611 et seq.)
    of chapter 6 of Title 12, Banks and Banking, was renumbered section
    25A of that act by Pub. L. 102-242, title I, Sec. 142(e)(2), Dec.
    19, 1991, 105 Stat. 2281. Section 25 of the Federal Reserve Act is
    classified to subchapter I (Sec. 601 et seq.) of chapter 6 of Title
    12.
      The Federal Credit Union Act, referred to in subsec. (a)(3), is
    act June 26, 1934, ch. 750, 48 Stat. 1216, as amended, which is
    classified generally to chapter 14 (Sec. 1751 et seq.) of Title 12.
    For complete classification of this Act to the Code, see section
    1751 of Title 12 and Tables.
      The Securities Exchange Act of 1934, referred to in subsec.
    (a)(5), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended,
    which is classified principally to chapter 2B (Sec. 78a et seq.) of
    this title. For complete classification of this Act to the Code,
    see section 78a of this title and Tables.
      The Federal Trade Commission Act, referred to in subsec. (c), is
    act Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended, which is
    classified generally to subchapter I (Sec. 41 et seq.) of chapter 2
    of this title. For complete classification of this Act to the Code,
    see section 58 of this title and Tables.

-COD-
                               CODIFICATION                           
      In subsec. (a)(4), "part A of subtitle VII of title 49"
    substituted for "the Federal Aviation Act of 1958 [49 App. U.S.C.
    1301 et seq.]" and "that part" substituted for "that Act" on
    authority of Pub. L. 103-272, Sec. 6(b), July 5, 1994, 108 Stat.
    1378, the first section of which enacted subtitles II, III, and V
    to X of Title 49, Transportation.


-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (a)(4). Pub. L. 104-287 substituted "Secretary of
    Transportation" for "Civil Aeronautics Board".
      1991 - Subsec. (a). Pub. L. 102-242, Sec. 212(f)(2), inserted at
    end "The terms used in paragraph (1) that are not defined in this
    subchapter or otherwise defined in section 3(s) of the Federal
    Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning
    given to them in section 1(b) of the International Banking Act of
    1978 (12 U.S.C. 3101)."
      Pub. L. 102-242, Sec. 212(f)(1), added par. (1) and struck out
    former par. (1) which read as follows: "section 8 of the Federal
    Deposit Insurance Act, in the case of - 
        "(A) national banks, by the Comptroller of the Currency;
        "(B) member banks of the Federal Reserve System (other than
      national banks), by the Board;
        "(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;".
      1989 - Subsec. (a)(2). Pub. L. 101-73 amended par. (2) generally.
    Prior to amendment, par. (2) read as follows: "section 5(d) of the
    Home Owners' Loan Act of 1933, section 407 of the National Housing
    Act, and sections 6(i) and 17 of the Federal Home Loan Bank Act, by
    the Federal Home Loan Bank Board (acting directly or through the
    Federal Savings and Loan Insurance Corporation), in the case of any
    institution subject to any of those provisions;".


-TRANS-
                           TRANSFER OF FUNCTIONS                       
      Functions vested in Administrator of National Credit Union
    Administration transferred and vested in National Credit Union
    Administration Board pursuant to section 1752a of Title 12, Banks
    and Banking.

-FOOTNOTE-
    (!1) See References in Text note below.

               

    (!2) So in original. The period probably should be a semicolon.


-End-



-CITE-
    15 USC Sec. 1693p                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693p. Reports to Congress

-STATUTE-
      (a) Not later than twelve months after the effective date of this
    subchapter and at one-year intervals thereafter, the Board shall
    make reports to the Congress concerning the administration of its
    functions under this subchapter, including such recommendations as
    the Board deems necessary and appropriate. In addition, each report
    of the Board shall include its assessment of the extent to which
    compliance with this subchapter is being achieved, and a summary of
    the enforcement actions taken under section 1693o of this title. In
    such report, the Board shall particularly address the effects of
    this subchapter on the costs and benefits to financial institutions
    and consumers, on competition, on the introduction of new
    technology, on the operations of financial institutions, and on the
    adequacy of consumer protection.
      (b) In the exercise of its functions under this subchapter, the
    Board may obtain upon request the views of any other Federal agency
    which, in the judgment of the Board, exercises regulatory or
    supervisory functions with respect to any class of persons subject
    to this subchapter.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 918, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3740; amended Pub. L. 97-
    375, title II, Sec. 209(a), Dec. 21, 1982, 96 Stat. 1825.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For effective date of this subchapter, referred to in subsec.
    (a), see section 921 of Pub. L. 90-321, set out as an Effective
    Date note under section 1693 of this title.


-MISC1-
                                AMENDMENTS                            
      1982 - Subsec. (a). Pub. L. 97-375 struck out requirement that
    the Attorney General make a report on the same terms as the Board,
    and that such report also contain an analysis of the impact of this
    subchapter on the operation, workload, and efficiency of the
    Federal courts, and substituted "necessary and appropriate" for
    "necessary or appropriate".

-End-



-CITE-
    15 USC Sec. 1693q                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693q. Relation to State laws

-STATUTE-
      This subchapter does not annul, alter, or affect the laws of any
    State relating to electronic fund transfers, except to the extent
    that those laws are inconsistent with the provisions of this
    subchapter, and then only to the extent of the inconsistency. A
    State law is not inconsistent with this subchapter if the
    protection such law affords any consumer is greater than the
    protection afforded by this subchapter. The Board shall, upon its
    own motion or upon the request of any financial institution, State,
    or other interested party, submitted in accordance with procedures
    prescribed in regulations of the Board, determine whether a State
    requirement is inconsistent or affords greater protection. If the
    Board determines that a State requirement is inconsistent,
    financial institutions shall incur no liability under the law of
    that State for a good faith failure to comply with that law,
    notwithstanding that such determination is subsequently amended,
    rescinded, or determined by judicial or other authority to be
    invalid for any reason. This subchapter does not extend the
    applicability of any such law to any class of persons or
    transactions to which it would not otherwise apply.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 919, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3741.)

-End-



-CITE-
    15 USC Sec. 1693r                                           01/03/2007

-EXPCITE-
    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 41 - CONSUMER CREDIT PROTECTION
    SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

-HEAD-
    Sec. 1693r. Exemption for State regulation

-STATUTE-
      The Board shall by regulation exempt from the requirements of
    this subchapter any class of electronic fund transfers within any
    State if the Board determines that under the law of that State that
    class of electronic fund transfers is subject to requirements
    substantially similar to those imposed by this subchapter, and that
    there is adequate provision for enforcement.

-SOURCE-
    (Pub. L. 90-321, title IX, Sec. 920, as added Pub. L. 95-630, title
    XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3741.)

-End-