59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 114–282 

CHILD SUPPORT ASSISTANCE ACT OF 2015 

OCTOBER 6, 2015.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. HENSARLING, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

[To accompany H.R. 2091] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 2091) to amend the Fair Credit Reporting Act to clarify 

the ability to request consumer reports in certain cases to establish 

and enforce child support payments and awards, having considered 

the same, report favorably thereon without amendment and recommend that the bill do pass. 

PURPOSE AND SUMMARY

Introduced by Representative Poliquin, H.R. 2091, the ‘‘Child 

Support Assistance Act of 2015,’’ amends the Fair Credit Reporting 

Act (FCRA) to eliminate the requirement that state and local child 

support agencies and courts notify an obligor ten days before retrieving a consumer report for purposes of determining the appropriate level of child support payments, or enforcing a child support 

order, award, agreement, or judgment. 

BACKGROUND AND NEED FOR LEGISLATION

Most child support payments are collected from noncustodial parents through income withholding. In order to verify income, assets, 

and debt for purposes of establishing or enforcing child support obligations, state and local child support agencies and courts often request consumer reports from consumer reporting agencies. Section 

604(a) of the FCRA requires that before retrieving current employment data from consumer reporting agencies, state and local child 

support agencies and courts are required to notify an obligor ten 

days prior to the request. State and local child support agencies 


smartinez on DSK4TPTVN1PROD with REPORTS-HSE
2 

argue that the 10-day notice provides some obligors with the opportunity to hide savings and other assets, run up credit card debt, 

and take other financial or employment actions to avoid or reduce 

child support payments. 

HEARINGS

The Committee on Financial Services Subcommittee on Financial 

Institutions held a hearing examining matters relating to H.R. 

2091 on June 11, 2015. 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

July 28, 2015 and July 29, 2015, and ordered H.R. 2091 to be reported favorably to the House without amendment by a recorded 

vote of 56 yeas to 2 nays (Record vote no. FC–49), a quorum being 

present. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. The sole vote in committee was a motion by Chairman Hensarling to report the bill favorably to the House without amendment. The motion was agreed 

to by a recorded vote of 56 yeas to 2 nays (Record vote no. FC–49), 

a quorum being present. 


smartinez on DSK4TPTVN1PROD with REPORTS-HSE
3 


smartinez on DSK4TPTVN1PROD with REPORTS-HSEInsert offset folio 3 here HR282.001
4 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the findings and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of rule X 

of the Rules of the House of Representatives, are incorporated in 

the descriptive portions of this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee states that H.R. 2091 will inhibit an obligors ability to take certain financial or employment actions for the purpose of improperly reducing the amount of child 

support payments owed by such individual. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, September 18, 2015. 

Hon. JEB HENSARLING, Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2091, the Child Support 

Assistance Act of 2015. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susan Willie. 

Sincerely, 

KEITH HALL. 

Enclosure. 

H.R. 2091—Child Support Assistance Act of 2015 

Under current law, consumer reporting agencies (CRAs) are authorized to release a credit report to a state agency responsible for 

enforcing child support orders to determine whether an individual 


smartinez on DSK4TPTVN1PROD with REPORTS-HSE
5 

has the capacity to make child support payments or to determine 

the appropriate level of such payments. The bill would authorize 

CRAs to also release credit reports to those state agencies for enforcing a child support agreement or order. Finally, the bill would 

eliminate a requirement that the state agencies notify an affected 

person that the agency has requested information about them from 

a CRA. 

Based on information from the Consumer Financial Protection 

Bureau (CFPB), CBO estimates that enacting H.R. 2091 would increase direct spending for that agency to amend relevant regulations; therefore, pay-as-you-go procedures apply. However, CBO estimates that such spending would be insignificant. Enacting H.R. 

2091 would not affect revenues. Implementing the bill would not 

affect discretionary costs because the CFPB is permanently authorized to spend amounts transferred from the Federal Reserve System. 

H.R. 2091 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. 

The CBO staff contact for this estimate is Susan Willie. The estimate was approved by H. Samuel Papenfuss, Deputy Assistant Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of the section 102(b)(3) of the 

Congressional Accountability Act. 

EARMARK IDENTIFICATION

H.R. 2091 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 

DUPLICATION OF FEDERAL PROGRAMS

Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), the 

Committee states that no provision of H.R. 2091 establishes or reauthorizes a program of the Federal Government known to be duplicative of another Federal program, a program that was included 

in any report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111–139, or a program 

related to a program identified in the most recent Catalog of Federal Domestic Assistance. 


smartinez on DSK4TPTVN1PROD with REPORTS-HSE
6 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), the 

Committee states that H.R. 2091 does not require any directed 

rulemakings. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section cites H.R. 2091 as the ‘‘Child Support Assistance Act 

of 2015.’’ 

Section 2. Requests for consumer reports by state or local child support enforcement agencies 

This section eliminates the requirement in the Fair Credit Reporting Act that a state official requesting a consumer report provide 10 days’ notice to the consumer before requesting the report, 

and makes certain other changes to the Act. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

FAIR CREDIT REPORTING ACT 

* * * * * * * 

TITLE VI—CONSUMER CREDIT REPORTING 

* * * * * * * 

§ 604. Permissible purposes of reports 

(a) IN GENERAL.—Subject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other: 

(1) In response to the order of a court having jurisdiction to 

issue such an order, or a subpoena issued in connection with 

proceedings before a Federal grand jury. 

(2) In accordance with the written instructions of the consumer to whom it relates. 

(3) To a person which it has reason to believe— 

(A) intends to use the information in connection with a 

credit transaction involving the consumer on whom the information is to be furnished and involving the extension of 

credit to, or review or collection of an account of, the consumer; or 

(B) intends to use the information for employment purposes; or 

(C) intends to use the information in connection with the 

underwriting of insurance involving the consumer; or 


smartinez on DSK4TPTVN1PROD with REPORTS-HSE
7 

(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. 

(G) executive departments and agencies in connection 

with the issuance of government-sponsored individuallybilled travel charge cards. 

(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 øor determining the appropriate level of such 

payments¿, determining the appropriate level of such payments, or enforcing a child support order, award, agreement, or judgment; 

(B) the øpaternity¿ parentage of the consumer for the 

child to which the obligation relates has been established 

or acknowledged by the consumer in accordance with State 

laws under which the obligation arises (if required by 

those laws); and 

ø(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¿ 

ø(D)¿ (C) the consumer report will be kept confidential, 

will be used solely for a purpose described in subparagraph (A), and will not be used in connection with any 

other civil, administrative, or criminal proceeding, or for 

any other purpose. 

(5) To an agency administering a State plan under section 

454 of the Social Security Act (42 U.S.C. 654) for use to set an 

initial or modified child support award. 

(6) To the Federal Deposit Insurance Corporation or the National Credit Union Administration as part of its preparation 

for its appointment or as part of its exercise of powers, as conservator, receiver, or liquidating agent for an insured depository institution or insured credit union under the Federal Deposit Insurance Act or the Federal Credit Union Act, or other 

applicable Federal or State law, or in connection with the resolution or liquidation of a failed or failing insured depository institution or insured credit union, as applicable. 


smartinez on DSK4TPTVN1PROD with REPORTS-HSE
8 

(b) CONDITIONS FOR FURNISHING AND USING CONSUMER REPORTS

FOR EMPLOYMENT PURPOSES.— (1) CERTIFICATION FROM USER.—A consumer reporting agency may furnish a consumer report for employment purposes 

only if— 

(A) the person who obtains such report from the agency 

certifies to the agency that— 

(i) the person has complied with paragraph (2) with 

respect to the consumer report, and the person will 

comply with paragraph (3) with respect to the consumer report if paragraph (3) becomes applicable; and 

(ii) information from the consumer report will not be 

used in violation of any applicable Federal or State 

equal employment opportunity law or regulation; and 

(B) the consumer reporting agency provides with the report, or has previously provided, a summary of the consumer’s rights under this title, as prescribed by the Bureau under section 609(c)(3). 

(2) DISCLOSURE TO CONSUMER.— 

(A) IN GENERAL.—Except as provided in subparagraph 

(B), a person may not procure a consumer report, or cause 

a consumer report to be procured, for employment purposes with respect to any consumer, unless— 

(i) a clear and conspicuous disclosure has been made 

in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes; and 

(ii) the consumer has authorized in writing (which 

authorization may be made on the document referred 

to in clause (i)) the procurement of the report by that 

person. 

(B) APPLICATION BY MAIL, TELEPHONE, COMPUTER, OR

OTHER SIMILAR MEANS.—If a consumer described in subparagraph (C) applies for employment by mail, telephone, 

computer, or other similar means, at any time before a 

consumer report is procured or caused to be procured in 

connection with that application— 

(i) the person who procures the consumer report on 

the consumer for employment purposes shall provide 

to the consumer, by oral, written, or electronic means, 

notice that a consumer report may be obtained for employment purposes, and a summary of the consumer’s 

rights under section 615(a)(3); and 

(ii) the consumer shall have consented, orally, in 

writing, or electronically to the procurement of the report by that person. 

(C) SCOPE.—Subparagraph (B) shall apply to a person 

procuring a consumer report on a consumer in connection 

with the consumer’s application for employment only if— 

(i) the consumer is applying for a position over 

which the Secretary of Transportation has the power 

to establish qualifications and maximum hours of 

service pursuant to the provisions of section 31502 of 


smartinez on DSK4TPTVN1PROD with REPORTS-HSE
9 

title 49, or a position subject to safety regulation by a 

State transportation agency; and 

(ii) as of the time at which the person procures the 

report or causes the report to be procured the only 

interaction between the consumer and the person in 

connection with that employment application has been 

by mail, telephone, computer, or other similar means. 

(3) CONDITIONS ON USE FOR ADVERSE ACTIONS.— (A) IN GENERAL.—Except as provided in subparagraph 

(B), in using a consumer report for employment purposes, 

before taking any adverse action based in whole or in part 

on the report, the person intending to take such adverse 

action shall provide to the consumer to whom the report 

relates— 

(i) a copy of the report; and 

(ii) a description in writing of the rights of the consumer under this title, as prescribed by the Bureau 

under section 609(c)(3). 

(B) APPLICATION BY MAIL, TELEPHONE, COMPUTER, OR

OTHER SIMILAR MEANS.— 

(i) If a consumer described in subparagraph (C) applies for employment by mail, telephone, computer, or 

other similar means, and if a person who has procured 

a consumer report on the consumer for employment 

purposes takes adverse action on the employment application based in whole or in part on the report, then 

the person must provide to the consumer to whom the 

report relates, in lieu of the notices required under 

subparagraph (A) of this section and under section 

615(a), within 3 business days of taking such action, 

an oral, written or electronic notification— 

(I) that adverse action has been taken based in 

whole or in part on a consumer report received 

from a consumer reporting agency; 

(II) of the name, address and telephone number 

of the consumer reporting agency that furnished 

the consumer report (including a toll-free telephone number established by the agency if the 

agency compiles and maintains files on consumers 

on a nationwide basis); 

(III) that the consumer reporting agency did not 

make the decision to take the adverse action and 

is unable to provide to the consumer the specific 

reasons why the adverse action was taken; and 

(IV) that the consumer may, upon providing 

proper identification, request a free copy of a report and may dispute with the consumer reporting 

agency the accuracy or completeness of any information in a report. 

(ii) If, under clause (B)(i)(IV), the consumer requests 

a copy of a consumer report from the person who procured the report, then, within 3 business days of receiving the consumer’s request, together with proper 

identification, the person must send or provide to the 

consumer a copy of a report and a copy of the conVerDate Sep 11 2014 07:18 Oct 07, 2015 Jkt 059006 PO 00000 Frm 00009 Fmt 6659 Sfmt 6601 E:\HR\OC\HR282.XXX HR282

smartinez on DSK4TPTVN1PROD with REPORTS-HSE
10 

sumer’s rights as prescribed by the Bureau under section 609(c)(3). 

(C) SCOPE.—Subparagraph (B) shall apply to a person 

procuring a consumer report on a consumer in connection 

with the consumer’s application for employment only if— 

(i) the consumer is applying for a position over 

which the Secretary of Transportation has the power 

to establish qualifications and maximum hours of 

service pursuant to the provisions of section 31502 of 

title 49, or a position subject to safety regulation by a 

State transportation agency; and 

(ii) as of the time at which the person procures the 

report or causes the report to be procured the only 

interaction between the consumer and the person in 

connection with that employment application has been 

by mail, telephone, computer, or other similar means. 

(4) EXCEPTION FOR NATIONAL SECURITY INVESTIGATIONS.— 

(A) IN GENERAL.—In the case of an agency or department of the United States Government which seeks to obtain and use a consumer report for employment purposes, 

paragraph (3) shall not apply to any adverse action by 

such agency or department which is based in part on such 

consumer report, if the head of such agency or department 

makes a written finding that— 

(i) the consumer report is relevant to a national security investigation of such agency or department; 

(ii) the investigation is within the jurisdiction of 

such agency or department; 

(iii) there is reason to believe that compliance with 

paragraph (3) will— 

(I) endanger the life or physical safety of any 

person; 

(II) result in flight from prosecution; 

(III) result in the destruction of, or tampering 

with, evidence relevant to the investigation; 

(IV) result in the intimidation of a potential witness relevant to the investigation; 

(V) result in the compromise of classified information; or 

(VI) otherwise seriously jeopardize or unduly 

delay the investigation or another official proceeding. 

(B) NOTIFICATION OF CONSUMER UPON CONCLUSION OF

INVESTIGATION.—Upon the conclusion of a national security investigation described in subparagraph (A), or upon 

the determination that the exception under subparagraph 

(A) is no longer required for the reasons set forth in such 

subparagraph, the official exercising the authority in such 

subparagraph shall provide to the consumer who is the 

subject of the consumer report with regard to which such 

finding was made— 

(i) a copy of such consumer report with any classified information redacted as necessary; 

(ii) notice of any adverse action which is based, in 

part, on the consumer report; and 


smartinez on DSK4TPTVN1PROD with REPORTS-HSE
11 

(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 INSUR- ANCE TRANSACTIONS THAT ARE NOT INITIATED BY THE CON- SUMER.— 

(1) IN GENERAL.—A consumer reporting agency may furnish 

a consumer report relating to any consumer pursuant to subparagraph (A) or (C) of subsection (a)(3) in connection with any 

credit or insurance transaction that is not initiated by the consumer only if— 

(A) the consumer authorizes the agency to provide such 

report to such person; or 

(B)(i) the transaction consists of a firm offer of credit or 

insurance; 

(ii) the consumer reporting agency has complied with 

subsection (e); 

(iii) there is not in effect an election by the consumer, 

made in accordance with subsection (e), to have the consumer’s name and address excluded from lists of names 

provided by the agency pursuant to this paragraph; and 

(iv) the consumer report does not contain a date of birth 

that shows that the consumer has not attained the age of 

21, or, if the date of birth on the consumer report shows 

that the consumer has not attained the age of 21, such 

consumer consents to the consumer reporting agency to 

such furnishing. 

(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 


smartinez on DSK4TPTVN1PROD with REPORTS-HSE
12 

(C) other information pertaining to a consumer that does 

not identify the relationship or experience of the consumer 

with respect to a particular creditor or other entity. 

(3) INFORMATION REGARDING INQUIRIES.—Except as provided 

in section 609(a)(5), a consumer reporting agency shall not furnish to any person a record of inquiries in connection with a 

credit or insurance transaction that is not initiated by a consumer. 

(d) RESERVED.— 

(e) ELECTION OF CONSUMER TO BE EXCLUDED FROM LISTS.— 

(1) IN GENERAL.—A consumer may elect to have the consumer’s name and address excluded from any list provided by 

a consumer reporting agency under subsection (c)(1)(B) in connection with a credit or insurance transaction that is not initiated by the consumer by notifying the agency in accordance 

with paragraph (2) that the consumer does not consent to any 

use of a consumer report relating to the consumer in connection with any credit or insurance transaction that is not initiated by the consumer. 

(2) MANNER OF NOTIFICATION.—A consumer shall notify a 

consumer reporting agency under paragraph (1)— 

(A) through the notification system maintained by the 

agency under paragraph (5); or 

(B) by submitting to the agency a signed notice of election form issued by the agency for purposes of this subparagraph. 

(3) RESPONSE OF AGENCY AFTER NOTIFICATION THROUGH SYSTEM.—Upon receipt of notification of the election of a consumer 

under paragraph (1) through the notification system maintained by the agency under paragraph (5), a consumer reporting agency shall— 

(A) inform the consumer that the election is effective 

only for the 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 


smartinez on DSK4TPTVN1PROD with REPORTS-HSE
13 

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), 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 the date 

of enactment of the Consumer Credit Reporting Reform Act of 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 COMPLI- ANCE.—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 


smartinez on DSK4TPTVN1PROD with REPORTS-HSE
14 

(2) the purpose is certified in accordance with section 607 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 605(a)(6)) 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 605(a)(6). 

(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 605(a)(6)) 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 603(d)(3) 

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, or described in section 502(e) of 

Public Law 106–102; or 


smartinez on DSK4TPTVN1PROD with REPORTS-HSE
15 

(C) as otherwise determined to be necessary and appropriate, by regulation or order, by the Bureau or the applicable State insurance authority (with respect to any person engaged in providing insurance or annuities). 

(4) LIMITATION ON REDISCLOSURE OF MEDICAL INFORMA- TION.—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.—The Bureau may, 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. 

(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. 

* * * * * * * 

Æ 


smartinez on DSK4TPTVN1PROD with REPORTS-HSE