FILE COpy FILED IN CLERK'S OFFICE 

IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF GEORGIA 

) 

UNITED STATES OF AMERICA, ) 

) 

Plaintiff, ) Civil Action No. 

U.S. D.C. - Atlanta 

JUN 24 2011 

) 1 11· C V - 2060 v. ) 

) 

TELETRACK, INC., ) 

a corporation, ) 

) 

Defendant. ) 

------------------------) 

STIPULATED FINAL JUDGMENT AND ORDER 

FOR CIVIL PENALTIES, PERMANENT INJUNCTION, 

AND OTHER EQUITABLE RELIEF 

Plaintiff, the United States of America, acting upon notification and 

authorization to the Attorney General by the Federal Trade Commission ("FTC" or 

"Commission"), is concurrently filing its Complaint herein, which alleges that 

Defendant Teletrack, Inc. ("Teletrack") has engaged in violations of the Fair 

Credit Reporting Act ("FCRA"), 15 U.S.C. §§ 1681-1681x, and in unfair or 

deceptive acts or practices in violation of Section 5 of the Federal Trade 

Commission Act ("FTC Act"), 15 U.S.C. § 45(a). Defendant has been represented 

by the attorney whose name appears hereafter. The parties have agreed to entry of 
this Stipulated Final Judgment and Order for Civil Penalties, Permanent 

Injunction, and Other Equitable Relief ("Order") to resolve all matters in dispute 

in this action without trial or adjudication of any issue of law or fact herein and 

without Defendant admitting the truth of, or liability for, any of the matters alleged 

in the Complaint. Defendant has waived service of the Summons and Complaint. 

THEREFORE, IT IS HEREBY ORDERED, ADJUDGED, AND 

DECREED as follows: 

FINDINGS 

1. This Court has jurisdiction over the subject matter of this case and 

over the Parties. 

2. Venue in this district is proper under 28 U.S.C. §§ 1391(b) - (c), and 

15 U.S.C. § 53(b). 

3. The Complaint states claims upon which relief may be granted 

against Defendant under sections 5(a),13(b), and 16(a) of the Federal Trade 

Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); and under sections 604 

and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b and 1681s. 

4. Defendant makes no admissions to, and denies, the allegations in the 

Complaint, other than the jurisdictional facts in paragraph 2 of the Complaint. 

5. Defendant waives: (a) all rights to seek appellate review or otherwise 

challenge or contest the validity of this Order; (b) any claim Defendant may have 

Page 2 of 30 
against the Commission, its employees, representatives, or agents that relate to the 

matter stated herein; (c) all claims under the Equal Access to Justice Act, 28 

U.S.C. § 2412, as amended by Pub. L. 104-121, 110 Stat. 847,863-64 (1996); and 

(d) any rights to attorneys' fees that may arise under said provision of law. 

6. Entry of this Order is in the public interest. 

7. For the purpose of this Order: 

a. "Defendant" shall mean Teletrack, its subsidiaries and 

operating companies, and their successors and assigns, officers, 

agents, representatives, and employees. 

b. "Permissible purpose" shall mean the circumstances under 

which a consumer report may be furnished as described in 

Section 604 of the Fair Credit Reporting Act, 15 U.S.C. § 

1681 b, which is attached as Appendix A to this Order. 

c. The definitions set forth in the FCRA, 15 U.S.C. §§ 1681a, et 

seq., shall apply. 

ORDER 

I. CIVIL PENALTY 

IT IS ORDERED that Defendant shall pay to Plaintiff, pursuant to section 

621(a) of the FCRA, 15 U.S.C. § 1681s(a), a civil penalty in the amount of $1.8 

million ($1,800,000). 

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A. Defendant shall make this payment within seven (7) business days of 

the date of service of this Order to the Treasurer of the United States by electronic 

fund transfer in accordance with instructions provided by the Office of Consumer 

Litigation, Civil Division, U.S. Department of Justice, Washington, D.C. 20530, 

for appropriate disposition. 

B. In the event of any default in payment, which default continues for 

ten (10) days beyond the due date of payment, the entire unpaid penalty, together 

with interest, as computed pursuant to 28 U.S.C. § 1961 from the date of default to 

the date of payment, shall immediately become due and payable. 

C. Defendant relinquishes all dominion, control, and title to the funds 

paid to the fullest extend permitted by law. Defendant shall make no claim to or 

demand for return of the funds, directly or indirectly, through counselor 

otherwise. 

D. Prior to or concurrently with Defendant's execution of this Order, 

Defendant shall turn over the full amount of the civil penalty, $1.8 million 

($1,800,000), to its attorneys, who shall hold the entire sum for no purpose other 

than payment to the Treasurer of the United States after entry of this Order by the 

Court. Within five (5) days of service of this Order, Defendant's attorneys shall 

transfer such civil penalty payment in the form of a wire transfer to the Treasurer 

of the United States .. Written confirmation of the wire transfer shall be delivered 

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in accordance with the procedures specified by the Office of Consumer Litigation, 

Civil Division, U.S. Department of Justice, Washington, D.C. 20530. 

II. PROHIBITED BUSINESS ACTIVITIES 

IT IS FURTHER ORDERED that Defendant, and all other persons or 

entities within the scope of Fed. R. Civ. P. 65, whether acting directly or through 

any sole proprietorship, partnership, limited liability company, corporation, 

subsidiary, branch, division, device, or other business entity who receive actual 

notice of this Order by personal service or otherwise, shall furnish a consumer 

report only to those persons which it has reason to believe have a permissible 

purpose, or as otherwise permitted by the Fair Credit Reporting Act, 15 U.S.C. §§ 

1681-1681x. 

III. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring and 

investigating compliance with any provision of this Order: 

A. Within ten (10) days of receipt of written notice from a representative 

of the Commission, Defendant shall submit written reports, which are true and 

accurate and sworn to under penalty of perjury; produce documents for inspection 

and copying; appear for deposition; and provide entry during normal business 

hours to any business location in Defendant's possession or direct or indirect 

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control to inspect the business operation; provided that, Defendant, after 

attempting to resolve a dispute without court action and for good cause shown 

may file a motion with this Court seeking an order including one or more of the 

protections set forth in Fed. R. Civ. P. 26(c). 

B. In addition, the Commission is authorized to use all other lawful 

means, including but not limited to: 

1. Obtaining discovery from any person, without further leave of 

court, using the procedures prescribed by Fed. R. Civ .. P. 30, 31, 

33, 34, 36, 45, and 69; 

2. Having its representative pose as consumers and suppliers to 

Defendant, its employees, or any other entity managed or 

controlled in whole or in part by Defendant, without the 

necessity of identification or prior notice; and 

C. Defendant shall permit representatives of the Commission to interview 

any employer, consultant, independent contractor, representative, agent, or 

employee who has agreed to such an interview, relating in any way to any conduct 

subject to this Order. The person interviewed may have counsel present. 

Provided however, that nothing in this Order shall limit the Commission's 

lawful use of compulsory process, pursuant to sections 9 and 20 of the FTC Act, 15 

U.S.C. §§ 49, and 57b-l, to obtain any documentary material, tangible things, 

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testimony, or information relevant to unfair or deceptive acts or practices in or 

affecting commerce (within the meaning of 15 U.S.C. § 45(a)(l)) or to any 

violation of the FCRA. 

IV. COMPLIANCE REPORTING BY DEFENDANT 

IT IS FURTHER ORDERED that, in order that compliance with the 

provisions of this Order may be monitored: 

A. For a period of three (3) years from the date of entry of this Order, 

Defendant shall notify the Commission of any changes in structure of Defendant or 

any other business entity that Defendant directly or indirectly controls, or has an 

ownership interest in, that may affect compliance obligations arising under this 

Order, including but not limited to: incorporation or other organization; a 

dissolution, assignment, sale, merger, or other action; the creation or dissolution of 

a subsidiary, parent, or affiliate that engages in any acts or practices subject to this 

Order; or a change in the business name or address, at least thirty (30) days prior to 

such change, provided that, with respect to any proposed change in the business 

entity about which Defendant learns less than thirty (30) days prior to the date such 

action is to take place, Defendant shall notify the Commission as soon as is 

practicable after obtaining such knowledge. 

B. One hundred eighty (180) days after the date of entry of this Order and 

annually thereafter for a period of three (3) years, Defendant shall provide a written 

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report to the Commission, which is true and accurate and sworn to under penalty of 

perjury, setting forth in detail the manner and form in which it has complied and is 

complying with this Order. This report shall include, but not be limited to: 

1. A copy of the acknowledgment of receipt of this Order, 

obtained pursuant to the Section titled "Distribution of Order;" 

and 

2. Any other changes required to be reported under Subsection A 

of this Section. 

C. Defendant shall notifY the Commission of the filing of a bankruptcy 

petition within fifteen (15) days of filing. 

D. For purposes of this Order, Defendant shall, unless otherwise directed 

by the Commission's authorized representatives, send by overnight courier (not the 

U.S. Postal Service) all reports and notifications to the Commission that are 

required by this Order to: 

Associate Director, Division for Enforcement 

Bureau of Consumer Protection 

Federal Trade Commission 

600 Pennsylvania Avenue, N.W. 

Washington, D.C. 20580 

RE: U.S. v. Teletrack, Inc. 

Provided that, in lieu of overnight courier, Defendant may send such reports or 

notifications by first-class mail, but only if the Defendant contemporaneously sends 

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an electronic version of such reports or notifications to the Commission at: 

DEBrief@ftc.gov. 

E. For purposes of the compliance reporting and monitoring required by 

this Order, the Commission is authorized to communicate directly with the 

Defendant. 

v. RECORDKEEPING PROVISIONS 

IT IS FURTHER ORDERED that, for a period of six (6) years from the 

date of entry of this Order, Defendant is hereby restrained and enjoined from 

failing to create and retain the following records: 

A. Files containing the names, addresses, telephone numbers, and 

permissible purpose of all entities to whom Teletrack supplies consumer reports 

and all materials considered by Defendant to ensure compliance with section 604 of 

the FCRA. 

B. Copies of all training materials that relate to the collection and sale of 

consumer report information. 

C. All records and documents necessary to demonstrate full compliance 

with each provision of this Order, including but not limited to, copies of 

acknowledgments of receipt of this Order, required by the Sections titled 

"Distribution of Order" and "Acknowledgment of Receipt of Order" and all reports 

submitted to the FTC pursuant to the Section titled "Compliance Reporting." 

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VI. DISTRIBUTION OF ORDER 

IT IS FURTHER ORDERED that, for a period of three (3) years from the 

date of entry of this Order, Defendant shall deliver copies of this Order as directed 

below: 

A. Defendant must deliver a copy of this Order to (1) all of its officers, 

vice presidents, and other more senior personnel; (2) all of its directors, managers, 

employees, agents, and representatives who engage in conduct related to the 

subject matter of this Order; and (3) any business entity resulting from any change 

in structure set forth in Subsection A of the Section titled "Compliance Reporting." 

For current personnel, delivery shall be within five (5) days of service of this order 

upon Defendant. For new personnel, delivery shall occur not later than ten (10) 

days after assuming their responsibilities. For any business entity resulting from 

any change in structure set forth in Subsection A of the Section titled "Compliance 

Reporting," delivery shall occur not later than ten (10) days following the change 

in structure. 

B. Defendant must secure a signed and dated statement acknowledging 

receipt of the Order, within thirty (30) days of delivery, from all persons receiving 

a copy of the Order pursuant to this Section. 

VII. ACKNOWLEDGMENT OF RECEIPT OF ORDER 

IT IS FURTHER ORDERED that Defendant, within five (5) business days 

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of receipt of this Order as entered by the Court, must submit to the Commission a 

truthful sworn statement acknowledging receipt of this Order. 

VIII. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this 

matter for purposes of construction, modification, and enforcement of this Order. 

IX. COSTS AND ATTORNEYS' FEES 

IT IS FURTHER ORDERED that each party shall bear its own costs and 

attorneys' fees incurred in connection with this action. 

The parties hereby stipulate to the entry of the foregoing Order, which shall 

constitute a fmal Order in this action. 

IT IS SO ORDERED: 

Dated this ___ day of ________ , 2011 

UNITED STATES DISTRICT JUDGE 

The parties, by their respective counsel, hereby consent to the terms and 

conditions of the Stipulated Order as set forth above and consent to the entry 

thereof. 

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FOR THE PLAINTIFF 

UNITED STATES OF AMERICA: 

TONY WEST 

Assistant Attorney General 

Civil Division 

United States Department of Justice 

SALLY QUILLIAN YATES 

United States Attorney 

Northern District of Georgia 

MINARHEE 

Assistant U.S. Attorney 

GA Bar. No. 602047 

Northern District of Georgia 

600 Richard B. Russell Federal Building 

75 Spring Street, S.W. 

Atlanta, GA 30303-3309 

Phone: 404-581-6000 

Mina.Rhee@usdoj.gov 

MAAME EWUSI-MENSAH FRIMPONG 

Acting Deputy Assistant Attorney General 

Civil Division 

KENNETH L. JOST 

Acting Director 

Office of Consumer Protection Litigation 

Trial ttorney 

Office of Consumer Protection Litigation 

U.S. Department of Justice 

PO Box 386 

Washington, D.C. 20044 

Phone: 202-307-6154 

alan.phelps@usdoj.gov 

Page 12 of 30 
FO? HE FEDERAL TRADE COMMISSION: 

~SItdmlfl Associate Director 

Division of Priv cy and Identity Protection 

Assistant Director 

Division of Privacy and Identity Protection 

KATHERINE WHITE 

Attorney 

Division of Privacy and Identity Protection 

Federal Trade Commission 

601 New Jersey Avenue, NW 

Suite NJ- 3158 

Washington D.C. 20001 

Phone: 202-326-2878 

Fax: 202-326-3768 

.. ~1Nr~ KATRINA BLOD TT 

Attorney . 

Division of Privacy and Identity Protection 

Federal Trade Commission 

601 New Jersey Avenue, NW 

Suite NJ- 3158 

Washington D.C. 20001 

Phone: 202-326-3158 

Fax: 202-326-3768 

Page 13 of 30 
FOR THE DEFENDANT: 

DALE WILLIAMS 

President 

Teletrack, Inc. 

STEPHEN M. COLANGELO 

Attorney 

Morrison & Foerster, LLP 

2000 Pennsylvania Ave., NW, Suite 6000 

Washington, DC 20006 

Counsel for Defendant 

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Appendix A 

Page 15 of 30 
§ 604, 15 U.S.C. § 1681b. Permissible purposes of consumer 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 . 

(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 

Page 16 of 30 
(i) in connection with a business transaction that is initiated by 

the consumer; or 

(ii) to review an account to determine whether the consumer 

continues to meet the terms of the account. 

(4) In response to a request by the head of a State or local child support 

enforcement agency (or a State or local government official authorized by the 

head of such an agency), if the person making the request certifies to the 

consumer reporting agency that 

(A) the consumer report is needed for the purpose of establishing an 

individual's capacity to make child support payments or determining 

the appropriate level of such payments; 

(B) the paternity of the consumer for the child to which the obligation 

relates has been established or acknowledged by the consumer in 

accordance with State laws under which the obligation arises (if 

required by those laws); 

(C) the person has provided at least 10 days' prior notice to the 

consumer whose report is requested, by certified or registered mail to 

the last known address of the consumer, that the report will be 

requested; and 

(D) the consumer report will be kept confidential, will be used solely 

for a purpose described in subparagraph (A), and will not be used in 

connection with any other civil, administrative, or criminal proceeding, 

or for any other purpose. 

(5) To an agency administering a State plan under Section 454 of the Social 

Security Act (42 U.S.C. § 654) for use to set an initial or modified child 

support award. 

(b) Conditions for Furnishing and Using Consumer Reports for Employment 

Purposes. 

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(1) Certification/rom user. A consumer reporting agency may furnish a 

consumer report for employment purposes only if 

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

agency that 

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

consumer report, and the person will comply with paragraph (3) 

with respect to the consumer report if paragraph (3) becomes 

applicable; and 

(ii) information from the consumer report will not be used in 

violation of any applicable Federal or State equal employment 

opportunity law or regulation; and 

(B) the consumer reporting agency provides with the report, or has 

previously provided, a summary of the consumer's rights under this 

title, as prescribed by the Federal Trade Commission under section 

609(c)(3) [15 U.S.C. § I68Ig]. 

(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. 

Page 18 of 30 
(B) Application by mail, telephone, computer, or other similar means. 

If a consumer described in subparagraph (C) applies for employment 

by mail, telephone, computer, or other similar means, at any time 

before a consumer report is procured or caused to be procured in 

connection with 

that application--

(i) the person who procures the consumer report on the consumer 

for employment purposes shall provide to the consumer, by oral, 

written, or electronic means, notice that a consumer report may 

be obtained for employment purposes, and a summary of the 

consumer's rights under section 615(a)(3); and 

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

electronically to the procurement of the report by that person. 

(C) Scope. Subparagraph (B) shall apply to a person procuring a 

consumer report on a consumer in connection with the consumer's 

application for employment only if--

(i) the consumer is applying for a position over which the 

Secretary of Transportation has the power to establish 

qualifications and maximum hours of service pursuant to the 

provisions of section 31502 of title 49, or a position subj ect 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 

Page 19 of 30 
take such adverse action shall provide to the consumer to whom the 

report relates--

(i) a copy of the report; and 

(ii) a description in writing of the rights of the consumer under 

this title, as prescribed by the Federal Trade Commission under 

section 609( c )(3). 

(B) Application by mail, telephone, computer, or other similar means. 

(i) If a consumer described in subparagraph (C) applies for 

employment by mail, telephone, computer, or other similar 

means, and if a person who has procured a consumer report on 

the consumer for employment purposes takes adverse action on 

the employment application based in whole or in part on the 

report, then the person must provide to the consumer to whom 

the report relates, in lieu of the notices required under 

subparagraph (A) of this section and under section 615(a), within 

3 business days of taking such action, an oral, written or 

electronic notification--

(I) that adverse action has been taken based in whole or in 

part on a consumer report received from a consumer 

reporting agency; 

(II) of the name, address and telephone number of the 

consumer reporting agency that furnished the consumer 

report (including a toll-free telephone number established 

by the agency if the 

agency compiles and maintains files on consumers on a 

nationwide basis); 

(III) that the consumer reporting agency did not make the 

decision to take the adverse action and is unable to 

provide to the consumer the specific reasons why the 

adverse action was taken; and 

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(IV) that the consumer may, upon providing proper 

identification, request a free copy of a report and may 

dispute with the consumer reporting agency the accuracy 

or completeness of any information in a report. 

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

consumer report from the person who procured the report, then, 

within 3 business days of receiving the consumer's request, 

together with proper identification, the person must send or 

provide to the consumer a copy of a report and a copy of the 

consumer's rights as prescribed by the Federal Trade 

Commission under section 609(c)(3). 

(C) Scope. Subparagraph (B) shall apply to a person procuring a 

consumer report on a consumer in connection with the consumer's 

application for employment only if--

(i) the consumer is applying for a position over which the 

Secretary of Transportation has the power to establish 

qualifications and maximum hours of service pursuant to the 

provisions of section 31502 of title 49, or a position subject to 

safety regulation by a State transportation agency; and 

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

causes the report to be procured the only interaction between the 

consumer and the person in connection with that employment 

application has been by mail, telephone, computer, or other 

similar means. 

(4) Exception for national security investigations. 

(A) In general. In the case of an agency or department of the United 

States Government which seeks to obtain and use a consumer report for 

employment purposes, paragraph (3) shall not apply to any adverse 

action by such agency or department which is based in part on such 

consumer report, if the head of such agency or department makes a 

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written fmding 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 0/ consumer upon conclusion o/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; 

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(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 ~uthorities under 

this paragraph to an official of such agency or department who has 

personnel security responsibilities and is a member of the Senior 

Executive Service or equivalent civilian or military rank. 

(D) Report to the Congress. Not later than January 31 of each year, the 

. head of each agency and department of the United States Government 

that exercised authority under this paragraph during the preceding year 

shall submit a report to the Congress on the number of times the 

department or agency exercised such authority during the year. 

(E) Definitions. For purposes of this paragraph, the following 

definitions shall apply: 

(i) The term "classified information" means information that is 

protected from unauthorized disclosure under Executive Order 

No. 12958 or successor orders. 

(ii) The term "national security investigation" means any official 

inquiry by an agency or department of the United States 

Government to determine the eligibility of a consumer to receive 

access or continued access to classified information or to 

determine whether classified information has been lost or 

compromised. 

(c) Furnishing reports in connection with credit or insurance transactions that are 

not initiated by the consumer. 

(1) In general. A consumer reporting agency may furnish a consumer report 

Page 23 of 30 
relating to any consumer pursuant to subparagraph (A) or (C) of subsection 

(a)(3) in connection with any credit or insurance transaction that is not 

initiated by the consumer only if 

(A) the consumer authorizes the agency to provide such report to such 

person; or 

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

(ii) the consumer reporting agency has complied with subsection 

(e); and 

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

accordance with subsection (e), to have the consumer's name and 

address excluded from lists of names provided by the agency 

pursuant to this paragraph. 

(2) Limits on information received under paragraph (l)(B). A person may 

receive pursuant to paragraph (l)(B) only 

(A) the name and address of a consumer; 

(B) an identifier that is not unique to the consumer and that is used by 

the person solely for the purpose of verifying the identity of the 

consumer; and 

(C) other information pertaining to a consumer that does not identify 

the relationship or experience of the consumer with respect to a 

particular creditor or other entity. 

(3) Information regarding inquiries. Except as provided in section 609( a)(5) 

[15 U.S.C. §1681g], a consumer reporting agency shall not furnish to any 

person a record of inquiries in connection with a credit or insurance 

transaction that is not initiated by a consumer. 

( d) Reserved. 

Page 24 of 30 
(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)(l)(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) 

Page 25 of 30 
(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)(l)(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 to11-

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 

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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 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. 

(1) Certain use or obtaining olin/ormation 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 607 [15 U.S.C. § 

1681e] by a prospective user of the report through a general or specific 

certification. 

(g) Protection of Medical Information 

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(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 contact 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 infoIDlation as a consumer report if the 

Page 28 of 30 
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 

(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 621 (b), 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, 

Page 29 of 30 
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 the date of enactment of the Fair and 

Accurate Credit Transactions Act of 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. 

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