UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF OHIO

EASTERN DIVISION

UNITED STATES OF AMERICA,

Plaintiff, Case Number: 2:10-cv-169

v. Judge Marbley

CREDIT BUREAU COLLECTION SERVICES,

an Ohio corporation, also d/b/a

CBCS and CBCS NATIONAL,

LARRY EBERT, individually

and as an officer of the corporation, and

BRIAN STRIKER, individually

and as an officer of the corporation,

Magistrate Judge King

Defendants.

CONSENT DECREE

WHEREAS, Plaintiff, the United States of America, has commenced this action by filing the

Complaint herein; Defendant Credit Bureau Collection Services, Inc., also doing business as CBCS

and CBCS National (“CBCS”), Defendant Larry Ebert (“Ebert”), and Defendant Brian Striker

(“Striker”), have waived service of the Summons and Complaint; the parties have been represented

by the attorneys whose names appear hereafter; and the parties have agreed to settlement of this

action upon the following terms and conditions, without adjudication of any issue of fact or law, to

settle and resolve all matters in dispute arising from the Complaint to the date of entry of the Decree

and without Defendants admitting any of the matters alleged in the Complaint other than

jurisdictional facts; 

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THEREFORE, on the joint motion of the Plaintiff and Defendants, it is hereby ORDERED,

ADJUDGED and DECREED as follows:

FINDINGS

1. This Court has jurisdiction of the subject matter and of the parties.

2. The Complaint states a claim upon which relief may be granted against the Defendants

under Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act

(“FTC Act”), 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); the Fair Credit Reporting Act

(“FCRA”), 15 U.S.C. §§ 1681-1681x; and the Fair Debt Collection Practices Act (“FDCPA”),

15 U.S.C. §§ 1692-1692p.

3. Venue in this district is proper under 28 U.S.C. § 1391(b-c) and 1395(a) and 15 U.S.C.

§ 53(b).

4. The activities of the Defendants are in or affecting commerce, as “commerce” is

defined in Section 4 of the FTC Act, 15 U.S.C. § 44.

5. For purposes of this Consent Decree (“Decree”), the definitions set forth in the FCRA,

15 U.S.C. § 1681a, and the FDCPA, 15 U.S.C. § 1692a, shall apply. 

6. Defendants have entered into this Decree freely and without coercion. Defendants

further acknowledge that they have read the provisions of this Decree and are prepared to abide by

them. 

7. Plaintiff and Defendants, by and through their counsel, have agreed that the entry of

this Decree resolves all matters of dispute between them arising from the Complaint in this action,

up to the date of entry of this Decree.

8. By entering into this Decree, Defendants do not admit to the allegations set forth in

the Complaint.

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9. All parties waive all rights to seek appellate review or otherwise challenge or contest

the validity of this Decree. Defendants further waive and release any claim they may have against

the FTC, its employees, representatives, or agents.

10. Defendants agree that this Decree does not entitle them to seek or obtain attorneys’

fees as a prevailing party under the Equal Access to Justice Act, 28 U.S.C. § 2412, as amended by

Pub. L. 104-121, 100 Stat. 847, 863-64 (1996), and further waive any right to attorneys’ fees that

may arise under said provision of law. 

11. This action and the relief awarded herein are in addition to, and not in lieu of, other

remedies as may be provided by law, including both civil and criminal remedies.

12. Entry of this Decree is in the public interest.

DEFINITIONS

For purposes of this Decree, the following definitions shall apply:

1. “Commission”or “FTC” means the Federal Trade Commission.

2. “Corporate Defendant” means Credit Bureau Collection Services, Inc., also doing

business as CBCS and CBCS National (“CBCS”), and their successors and assigns.

3. “Defendants” means all of the Individual Defendants and the Corporate Defendant,

individually, collectively, or in any combination.

4. “Individual Defendants” means Larry Ebert (“Ebert”) and Brian Striker (“Striker”).

5. “Plaintiff” means the United States of America.

6. “Debt Collection” means any activity the principal purpose of which is to collect, or

attempt to collect, directly or indirectly, debts owed, or asserted to be owed, or due, regardless of

whether collection of the debt is governed by the FDCPA.

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ORDER

I. CIVIL PENALTY

A. Defendant CBCS shall pay to the Plaintiff, pursuant to Section 621(a) of the FCRA,

15 U.S.C. § 1681s(a), and Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. § 45(m)(1)(A), a civil

penalty in the amount of one million, ninety-five thousand dollars ($1,095,000).

B. Defendant CBCS shall make the payment required by this Paragraph on or before the

tenth day following entry of this Decree. Such payment shall be made by electronic fund transfer

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

United States Department of Justice, Washington, D.C. 20530. 

C. In the event of default in payment, which default continues for ten (10) days beyond

the due date of payment, the entire unpaid amount, 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.

D. This judgment represents a civil penalty owed to the United States Government and

is not compensation for actual pecuniary loss. Defendants agree that the facts as alleged in the

Complaint filed in this action shall be taken as true, without further proof, in any subsequent

litigation filed by or on behalf of the Commission to collect any unpaid amount or otherwise enforce

its rights pursuant to this Decree, including a nondischargeability complaint filed in any bankruptcy

case.

E. Proceedings initiated under this Paragraph are in addition to, and not in lieu of, any

other civil or criminal penalties that may be provided by law, including any other proceedings the

Plaintiff may initiate to enforce this Decree.

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II. INJUNCTION AGAINST VIOLATIONS OF THE FTC ACT

Defendants CBCS, Ebert, and Striker, and each of their officers, agents, servants, employees,

and all persons or entities in active concert or participation with any of them who receive actual

notice of this Decree by personal service or otherwise, whether acting directly or through any entity,

corporation, subsidiary, division, affiliate or other device, in connection with collecting or

attempting to collect debts, are hereby permanently restrained and enjoined from taking the

following actions:

A. Making any material misrepresentation, expressly or by implication, to collect or to

attempt to collect a debt or obtain information concerning a consumer; and

B. Making any material representation, expressly or by implication, that a consumer owes

a debt or as to the amount of a debt, unless, at the time of making the representation, Defendants

have a reasonable basis for making such representation. Provided that, in those instances in which

Defendants (a) are required by Section III. A. of this Decree to conduct an investigation, (b) have

done so, and (c) have reasonably concluded that the information on which Defendants rely to collect

or attempt to collect the debt is accurate and complete, the conclusions of the investigation shall

constitute a reasonable basis. 

Provided that in making representations concerning a debt, Defendants can reasonably rely on the

representations by their clients concerning the accuracy and completeness of the debts in the absence

of a reasonable indication that such representations are unreliable. A “reasonable indication” shall

take into account the reliability and source of the information, but shall not require any of the Part

III investigational procedures outlined below, other than taking into account the reliability and

source of the information.

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III. DUTY TO CONDUCT A REASONABLE INVESTIGATION

A. After the effective date of this Decree, in each and every instance in which:

1. a consumer, at any time, questions, disputes, or challenges the

accuracy or completeness of the information on which Defendants are

relying to make any representation that the consumer owes a debt or

as to the amount of a debt; or

2. a person acting reasonably would question, dispute, or challenge the

material accuracy or completeness of the information on which

Defendants are relying to make any representation that a consumer

owes a debt or as to the amount of a debt;

Defendants shall either close the account and permanently terminate collection efforts or conduct

a reasonable investigation into the accuracy or completeness of such information. If such disputes

are raised during a telephone call with the consumer, Defendants may reasonably provide responsive

information or pose reasonable questions to the consumer, in a manner that complies with applicable

law, in an effort to resolve any such disputes raised by the consumer. If the consumer continues to

question, dispute, or challenge the debt, Defendants shall make no further attempt to collect the debt

or report it to a consumer reporting agency (CRA) until they have completed an investigation and

have reasonably concluded that the information is accurate and complete. Provided that, if as a

result of their decision to permanently terminate collection efforts or if following a reasonable

investigation, Defendants cannot substantiate that the consumer owes the debt, Defendants cannot

sell the debt or provide it to any other corporate entity other than the client from which it obtained

the debt.

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Provided further that nothing in Sections II and III shall require Defendants to conduct an

investigation into the accuracy or completeness of the information on which Defendants are relying

if Defendants determine that the consumer’s question, dispute, or challenge is frivolous or irrelevant,

or to the extent no new material evidence or information has been provided, has already been the

subject of a reasonable investigation. Notwithstanding any other provision in this Decree, the

Decree shall not restrict or prohibit Defendants from complying with any federal or state law

requirements, so long as such state law requirements are not inconsistent with federal law.

Provided further that if a consumer initiates contact with Defendants by any means,

Defendants may respond to the consumer prior to the completion of the investigation.

B. For purposes of this Decree, a “reasonable investigation” shall mean an investigation

in which Defendants objectively evaluate and weigh the relevant information and circumstances,

including but not limited to: 

1. the reliability of the information on which Defendants rely in

collecting or attempting to collect the debt, including the credibility of

the source of that information; 

2. the accuracy and completeness of any information received directly

from their client, taking into account the reliability and source of the

information;

3. the accuracy and completeness of any information Defendants have

obtained or may obtain from third party sources, including data

aggregators, brokers or CRAs; 

4. the strength and credibility of any information provided by the

consumer questioning, disputing, or challenging the accuracy or

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completeness of such information or otherwise obtained by Defendants

and the responsiveness of the consumer to reasonable requests for

information; 

5. with respect to information obtained from the consumer, the methods

used by Defendants to collect the information. These methods used by

Defendants to obtain information shall be in compliance with

applicable laws; and 

6. any other reliable information that contradicts or calls into question the

accuracy or completeness of such information.

C. Subsections A and B of this Section do not affect the Defendants’ obligations to

comply with all applicable provisions of the FDCPA or FCRA. A “dispute” under this Section does

not necessarily constitute a “dispute” for FDCPA or FCRA purposes. 

D. Compliance with this Section III is effective November 13, 2009. Commission staff

has authority to make reasonable requests for updates on Defendants’ progress toward setting up

mechanisms to comply with provisions of this Section prior to November 13, 2009.

IV. INJUNCTION AGAINST FCRA VIOLATIONS

Defendant CBCS, and its officers, agents, servants, employees and all persons or entities in

active concert or participation with any of them, who receive actual notice of this Decree by personal

service or otherwise, whether acting directly or through any business entity, corporation, subsidiary,

division, affiliate, or other device, are hereby permanently restrained and enjoined from taking the

following actions:

A. Furnishing information to any consumer reporting agency (“CRA”) relating to any

consumer when the consumer has notified them at the address specified by them of the inaccurate

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information and the information is, in fact, inaccurate, as prohibited by Section 623(a)(1)(B) of the

FCRA, 15 U.S.C. § 1681s-2(a)(1)(B); 

B. Failing to investigate consumer disputes, as required by Section 623(b) of the FCRA,

15 U.S.C. § 1681s-2(b), when CRAs refer disputes to them pursuant to Section 611(a)(2), 15 U.S.C.

§ 1681i(a)(2);

C. Reporting information to any CRA without reporting the information as “disputed,”

as required by Section 623(a)(3) of the FCRA, 15 U.S.C. § 1681s-2(a)(3), when consumers dispute

to Defendants the completeness or accuracy of any information furnished to a CRA;

D. Re-reporting any information to a CRA that it reported prior to December 1, 2008; and

E. Failing to comply in any other respect with the FCRA, see Exhibit A attached, and as

hereafter amended.

V. INJUNCTION AGAINST FDCPA VIOLATIONS

Defendants CBCS, Ebert, and Striker, and each of their officers, agents, servants, employees

and all persons or entities in active concert or participation with any of them who receive actual

notice of this Decree by personal service or otherwise, whether acting directly or through any

business entity, corporation, subsidiary, division, affiliate, or other device, in connection with acting

as a “debt collector” in the collection of a “debt” from a “consumer” as those terms are defined in

Section 803(6), (5), and (3) of the FDCPA, 15 U.S.C. § 1692a(6), (5), and (3), are hereby

permanently restrained and enjoined from taking the following actions: 

A. Using false, deceptive, or misleading representations or means in connection with the

collection of any debt, in violation of Section 807 of the FDCPA, 15 U.S.C. § 1692e, including, but

not limited to, the following:

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1. Using false representations concerning the character, amount, or legal

status of any debt, in violation of Section 807(2)(A) of the FDCPA,

15 U.S.C. § 1692e(2)(A); or

2. In connection with a debt reported by them to any CRA, failing to

promptly communicate to such CRA that such debt has been disputed,

if and when such debt is disputed, either orally or in writing, by a

consumer to them, in violation of Section 807(8) of the FDCPA,

15 U.S.C. § 1692e(8); and

B. Failing to comply in any other respect with the FDCPA, see Exhibit B attached, and

as hereafter amended. 

VI. NOTICE REQUIREMENTS

A. For a period of five (5) years from the date of entry of this Decree, Defendants and

each of their officers, agents, servants, employees and all persons or entities in active concert or

participation with any of them who receive actual notice of this Decree by personal service or

otherwise, whether acting directly or through any business, entity, corporation, subsidiary, division,

affiliate, or other device, in connection with acting as a “debt collector” in the collection of a “debt”

from a “consumer,” as those terms are defined in Section 803(6), (5), and (3), respectively, of the

FDCPA, 15 U.S.C. § 1692a(6), (5), and (3), shall make the following disclosure clearly and

conspicuously on each written collection communication that is sent to a consumer for the purpose

of collecting a debt:

Federal law prohibits certain methods of debt collection, and requires

that we treat you fairly. You can stop us from contacting you by writing

a letter to us that tells us to stop the contact. Sending such a letter does

not make the debt go away if you owe it. Once we receive your letter,

we may not contact you again, except to let you know that there won’t

be any more contact or that we intend to take a specific action.

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If you have a complaint about the way we are collecting this debt,

please write to us at [current physical address], email us at [current

email address], or call us toll-free at [current phone number] between

9:00 A.M. and 5:00 P.M. Eastern Standard Time, Monday - Friday.

The Federal Trade Commission enforces the Fair Debt Collection

Practices Act (FDCPA). If you have a complaint about the way we are

collecting your debt, please contact the FTC online at www.ftc.gov; by

phone at 1-877-FTC-HELP; or by mail at 600 Pennsylvania Ave., N.W.,

Washington, D.C. 20580.

The above disclosure shall be given in the languages which appear in such communications sent to

consumers.

B. Defendants, and each of their officers, agents, servants and employees and all persons

or entities in active concert or participation with any of them who receive actual notice of this

Decree by personal service or otherwise, whether acting directly or through any business entity,

corporation, subsidiary, division, affiliate, or other device, in connection with acting as a “debt

collector” in the collection of a “debt” from a “consumer,” as those terms are defined in

Section 803(6), (5), and (3), respectively, of the FDCPA, 15 U.S.C. § 1692a(6), (5), and (3), shall

provide a copy of the following notice to all officers, servants, agents, and employees having

responsibility with respect to the collection of consumer debts, within thirty (30) days of the date

of entry of this Decree, and to each officer, servant, agent, and employee hired for a period of

five (5) years after that date, no later than the time the officer, servant, agent, and employee assumes

responsibility with respect to the collection of such debts, and shall secure from each such person,

within thirty (30) days of delivery, a signed and dated statement acknowledging receipt of a copy

of the notice:

Debt collectors must comply with the federal Fair Debt Collection

Practices Act, which limits our activities in trying to collect money from

consumers. 

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In particular, Section 805 of the Act says that you may not contact a

consumer at work if you know or should know it is inconvenient for the

consumer, and that you may not communicate with any person other

than the consumer in connection with the collection of a debt, for any

purpose other than to obtain location information about the consumer.

In addition, Section 806 of that Act states that you may not engage in

any conduct the natural consequences of which is to harass, oppress or

abuse any person in connection with the collection of a debt, including,

but not limited to, using language the natural consequence of which is

to abuse the hearer or reader. 

Furthermore, Section 807 of that Act prohibits the use of any false,

deceptive or misleading representation or means in connection with the

collection of any debt, including, but not limited to, communicating or

threatening to communicate to a consumer reporting agency information

which is known or which should be known to be false, including the

failure to communicate that a disputed debt is disputed.

Individual debt collectors may be financially liable for their

violations of the Act.

VII. DISTRIBUTION OF CONSENT DECREE, NOTICE TO FURNISHERS OF

INFORMATION: OBLIGATIONS OF FURNISHERS UNDER THE FCRA, AND THE

FDCPA BY DEFENDANTS

For a period of three (3) years from the date of entry of this Decree, 

A. CBCS: Corporate Defendant shall provide copies of this Decree, Notice to Furnishers

of Information: Obligations of Furnishers Under the FCRA, 16 C.F.R. Part 698, Appendix G, and

the FDCPA to all of its principals, officers, directors, and managers. Defendant CBCS must also

deliver copies of this Decree, Notice to Furnishers of Information: Obligations of Furnishers Under

the FCRA, 16 C.F.R. Part 698, Appendix G, and the FDCPA to all of its employees, agents and

representatives who engage in conduct related to the subject matter of this Decree. For current

personnel, delivery shall be within five (5) days of service of this Decree upon Defendant. For new

personnel, delivery shall occur prior to their assuming their responsibilities.

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B. Individual Defendant as control person: For any business which involves Debt

Collection that an Individual Defendant controls, directly or indirectly, or in which the Defendant

has a majority ownership interest, the Defendant must deliver a copy of this Decree to (1) all

principals, officers, directors, and managers of that business; and (2) all employees, agents, and

representatives of that business who engage in conduct related to the subject matter of the Decree.

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

Defendant. For new personnel, delivery shall occur prior to their assuming responsibilities.

C. Individual Defendant as employee or non-control person: For any business where

an Individual Defendant is not a controlling person of that business but otherwise engages in Debt

Collection, the Defendant must deliver a copy of this Decree to all principals and managers of such

business before engaging in such conduct.

D. Defendants must secure a signed and dated statement acknowledging receipt of this

Decree, Notice to Furnishers of Information: Obligations of Furnishers Under the FCRA, 16 C.F.R.

Part 698, Appendix G, and the FDCPA, within thirty (30) days of delivery, from all persons

receiving copies of such documents, pursuant to this Paragraph. 

VIII. RECORD KEEPING PROVISIONS

For a period of six (6) years from the date of entry of this Decree, Defendants, in connection

with any business where (1) such Defendant is the majority owner or otherwise controls, directly

or indirectly, the business and (2) the business is engaged in or assists others in the conduct related

to the subject matter of this Decree, and their agents, employees, officers, corporations, successors,

and assigns, and those persons in active concert or participation with them who receive actual notice

of this Decree by personal service or otherwise, are hereby restrained and enjoined from failing to

create and retain the following records:

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A. Accounting records that reflect the revenues generated in connection with the

collection of debts, and the disbursement of such revenues;

B. Personnel records accurately reflecting: the name, address, and telephone number of

each person employed in any capacity in connection with the collection of debts, including as an

independent contractor; that person’s job title or position; the date upon which the person

commenced work; and the date and reason for that person’s termination, if applicable;

C. Customer files containing the names, addresses, phone numbers, dollar amounts or

debt owed, records of collection activity, and amounts collected;

D. For every consumer complaint, whether received directly, indirectly, or through a third

party, records that include:

1. Any complaint and the date received, and the nature of the complaint

as reflected in any notes, logs, or memoranda, including a description

of the conduct alleged; and

2. The basis of the complaint, including the names of any debt collectors

or supervisors complained about; the nature of any investigation

conducted concerning the validity of any complaint; all documents

relating to the disposition of the complaint, including records of all

contacts with the consumer, the response to the complaint and the

response date, whether the complaint was actually resolved, and the

date of resolution; and any action taken to correct the alleged conduct

that violates the FCRA, the FDCPA, or the FTC Act;

E. Copies of all scripts, training materials, advertisements, or other promotional or

marketing materials; and

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F. All records and documents necessary to demonstrate full compliance with each

provision of this Decree, including, but not limited to, copies of acknowledgments of receipt of

notices given to employees, required by Paragraph VI.B, copies of acknowledgments of receipt of

this Decree, Notice to Furnishers of Information: Obligations of Furnishers Under the FCRA,

16 C.F.R. Part 698, Appendix G, and the FDCPA, required by Paragraph VII.D, and all reports

submitted to the FTC pursuant to Paragraph IX.

IX. COMPLIANCE REPORTING BY DEFENDANTS

In order that compliance with the provisions of this Decree be monitored:

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

1. The Individual Defendants shall notify the Commission of the

following:

a. Any changes in residence, mailing address, and telephone

numbers of such Defendant within ten (10) days of the date of

such change;

b. Any changes in employment status (including selfemployment), and any change in such Defendant’s ownership

of any business entity, within ten (10) days of the date of such

change. Such notice shall include the name and address of

each business that such Defendant is affiliated with, employed

by, creates or forms, or performs services for; a statement of

the nature of the business; and a statement of his duties and

responsibilities in connection with the business or

employment; and

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c. Any change in such Defendant’s name or use of any aliases or

fictitious names; and 

2. Defendants shall notify the Commission of any changes in the

corporate structure of Corporate Defendant CBCS, or any business

entity that any Individual Defendant directly or indirectly controls, or

has an ownership interest in, that may affect compliance obligations

arising under the Decree, including but not limited to a dissolution,

assignment, sale, merger or other action that would result in the

emergence of a successor entity; the creation or dissolution of a

subsidiary, parent or affiliate that engages in any acts or practices

subject to this Decree; the filing of any bankruptcy petition; or a

change in the corporate name or address, at least thirty (30) days prior

to such change; provided that, with respect to any proposed change in

the corporation about which a Defendant learns less than thirty (30)

days prior to the date such action is to take place, such Defendant shall

notify the Commission as soon as practicable after obtaining such

knowledge. 

B. Within one hundred eighty (180) days of the date of entry of this Decree, and once

each year thereafter for three (3) years, on the anniversary of that date, Defendants each shall

provide a written report to the FTC, sworn to under penalty of perjury, setting forth in detail the

manner and form in which they have complied and are complying with this Decree. This report shall

include, but not be limited to:

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1. For Individual Defendants:

a. The then-current residence address, mailing address, and

telephone number of such Defendant;

b. The then-current employment and business address and

telephone numbers of such Defendant, a description of the

business activities of each such employer or business, and the

title and responsibilities for each such Defendant for each such

employer or business; and

c. Any other changes required to be reported pursuant to

subsection A above.

2. For all Defendants:

a. A copy of each acknowledgment of receipt of employee notice

obtained pursuant to Paragraph VI.B of this Decree;

b. A copy of each acknowledgment of receipt of this Decree,

Notice to Furnishers of Information: Obligations of Furnishers

Under the FCRA, 16 C.F.R. Part 698, Appendix G, and

FDCPA obtained pursuant to Paragraph VII.D of this Decree;

and

c. Any other changes required to be reported pursuant to

subsection A above.

C. For purposes of this Decree, Defendants shall, unless otherwise directed by the

Commission’s authorized representatives, mail all written notifications to:

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ASSOCIATE DIRECTOR

DIVISION OF ENFORCEMENT

BUREAU OF CONSUMER PROTECTION

FEDERAL TRADE COMMISSION

600 PENNSYLVANIA AVENUE, N.W.

WASHINGTON, D.C. 20580

 Re: United States of America v. Credit Bureau Collection Services, Inc.,

Civil Action No. _______________

D. For purposes of the compliance reporting and monitoring required by this Decree,

Plaintiff is authorized to communicate directly with Defendants provided a copy of any written

communication shall be sent to then-current counsel of record.

X. COMPLIANCE MONITORING

For the purpose of monitoring and investigating compliance with any provision of this Decree:

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

Commission, Defendants shall each submit additional written reports, sworn to under penalty of

perjury; produce documents for inspection and copying; appear for deposition; and/or provide entry

during normal business hours to any business location in such Defendant’s possession or direct or

indirect control to inspect the business operation;

B. In addition, the Commission is authorized to monitor compliance with this Decree by

all other lawful means, including but not limited to the following:

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

using the procedures described by Fed. R. Civ. P. 30, 31, 33, 34, 36,

and 45; and

2. Posing as consumers and suppliers to: Defendants, Defendants’

employees, or any other entity managed or controlled in whole or in

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part by any Defendant, without the necessity of identification or prior

notice. 

C. Defendants 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 Decree. The person interviewed may

have counsel present.

Provided, however, that nothing in this Decree 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, 57b-1, to obtain

any documentary material, tangible things, 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)(1)). 

XI. ACKNOWLEDGMENT OF RECEIPT OF CONSENT DECREE

Within five (5) business days of receipt of this Decree as entered by the Court, each Defendant

shall submit to the Commission a truthful sworn statement acknowledging receipt of this Decree.

XII. RETENTION OF JURISDICTION

This Court shall retain jurisdiction of this matter for the purposes of construction,

modification, and enforcement of this Decree.

JUDGMENT IS THEREFORE ENTERED in favor of Plaintiff and against Defendants,

pursuant to all the terms and conditions recited above.

DATED: 

UNITED STATES DISTRICT JUDGE

Case 2:10-cv-00169-ALM -NMK Document 2 Filed 02/24/10 Page 19 of 21
Page 20 of 21

THE PARTIES, by their respective counsel, hereby consent to the terms and conditions of

the Consent Decree as set forth above and consent to the entry thereof. 

FOR PLAINTIFF

UNITED STATES OF AMERICA:

TONY WEST

Assistant Attorney General

Civil Division

United States Department of Justice

CARTER M. STEWART

United States Attorney

Southern District of Ohio

s/ Mark T. D’Alessandro 

MARK T. D’ALESSANDRO (0019877)

Assistant United States Attorney 

Southern District of Ohio

303 Marconi Boulevard, Suite 200

Columbus, OH 43215

614-469-5715

mark.dalessandro@usdoj.gov

EUGENE M. THIROLF

Director

Office of Consumer Litigation

KENNETH L. JOST

Deputy Director

Office of Consumer Litigation

s/ John W. Burke 

JOHN W. BURKE

Trial Attorney

Office of Consumer Litigation

U.S. Department of Justice

PO Box 386

Washington, D.C. 20044

202-353-2001

josh.burke@usdoj.gov

FOR THE UNITED STATES

FEDERAL TRADE COMMISSION:

Case 2:10-cv-00169-ALM -NMK Document 2 Filed 02/24/10 Page 20 of 21
Case 2:10-cv-00169-ALM -NMK Document 2 Filed 02/24/10 Page 21 of 21

FOR THE UNITED STATES 

FEDERAL RAD E COMM ISSION : 

Acting Director 

East Central Region 

LARISSA L. BUNGO (Ohio 0066148) 

Attorney 

East Central Region 

Federa l Trade Commission 

Eaton Center, Suite 200 

III I Superior Avenue 

Cleveland, Ohio 44114 

Phone 2 16-263-3403 / Fax 2 16-263-3426 

Email: lblln uo{t:l:ftc.uov 

Dated: I Ja t{/ar 7 / 

FOR DEFENDANTS ' 

CREDIT BUREAU COLLECTION SERV ICES, 

INC., an Ohio corporation, also d/b/a 

CBCS and CBCS NATIONA L 

By: 

Dated: 

LARRY EBERT, 

individually and as an officer 

of the defendant corporatiOJ . 

~ LARRY EB 

Dated: y/ WI' 

TRIKER 

Dated: l-i-O~ 

COUNSEL FOR DEFENDANTS 

AVID MED IN E 

Wilmer, Cutl er, Pickering, I-Iale and Dorr, 

LLP 

1875 Pen nsylvan ia Avenue, N,W, 

Washington, D,C. 20006 

Phone 202-663-6220 / Fax 202-663-6363 

day i d.m ed i n eiiu, w i I J I Ie rh a Ie . CO III 

Dated: OJ 

Page 2 1 of 21 
air

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As a public service, the staff of the Federal Trade Commission (FTC) has prepared the following complete text 

of the Fair Credit Reporting Act (FCRA), 15 U.S.C. 

§ 1681 et seq. Please note that the format of the text differs in 

minor ways from the U.S. Code (and West’s U.S. Code Annotated). For example, this version uses FCRA section numbers 

in the headings. In addition, the relevant U.S. Code citation 

is included with each section heading and each reference to the 

FCRA in the text. Although the staff has made every effort to 

transcribe the statutory material accurately, this compendium is 

intended as a convenience for the public and not a substitute for 

the text in the U.S. Code.

This version of the FCRA includes the amendments to the 

FCRA set forth in: 

•	 the Consumer Credit Reporting Reform Act of 1996; 

•	 section 311 of the Intelligence Authorization for Fiscal 

Year 1998; 

•	 the Consumer Reporting Employment Clarification Act of 

1998; 

•	 section 506 of the Gramm-Leach-Bliley Act; 

•	 sections 358(g) and 505(c) of the USA PATRIOT Act; 

•	 the Fair and Accurate Credit Transactions Act of 2003 

(FACT Act); 

•	 section 719 of the Financial Services Regulatory Relief Act 

of 2006; 

•	 the Credit and Debit Card Receipt Clarification Act of 

2007; and

•	 sections 205 and 302 of the Credit CARD Act of 2009.

The provisions added to the FCRA by the FACT Act became 

effective at different times. In some cases, the provision includes its own effective date. In other cases, the FACT Act 

provides that the effective dates be prescribed by the FTC and 

Federal Reserve Board. See 16 CFR Part 602.

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Table of Contents

§ 601. Short title .

§ 602. Congressional findings and statement of purpose .

§ 603. Definitions; rules of construction .

§ 604. Permissible purposes of consumer reports . 

§ 605. Requirements relating to information contained in consumer 

reports . 

§ 605A. Identity theft prevention; fraud alerts and active duty alerts . 

§ 605B. Block of information resulting from identity theft . 

§ 606. Disclosure of investigative consumer reports . 

§ 607. Compliance procedures . 

§ 608. Disclosures to governmental agencies . 

§ 609. Disclosures to consumers . 

§ 610. Conditions and form of disclosure to consumers . 

§ 611. Procedure in case of disputed accuracy . 

§ 612. Charges for certain disclosures . 

§ 613. Public record information for employment purposes . 

§ 614. Restrictions on investigative consumer reports . 

§ 615. Requirements on users of consumer reports . 

§ 616. Civil liability for willful noncompliance . 

§ 617. Civil liability for negligent noncompliance . 

§ 618. Jurisdiction of courts; limitation of actions . 

§ 619. Obtaining information under false pretenses . 

§ 620. Unauthorized disclosures by officers or employees . 

§ 621. Administrative enforcement . 

§ 622. Information on overdue child support obligations . 

§ 623. Responsibilities of furnishers of information to consumer 

reporting agencies . 

§ 624. Affiliate sharing  . 

§ 625. Relation to State laws . 

§ 626. Disclosures to FBI for counterintelligence purposes  . 

§ 627. Disclosures to governmental agencies for counterterrorism 

purposes  . 

§ 628. Disposal of records  . 

§ 629. Corporate and technological circumvention prohibited  . 

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1

§ 601. Short title

This title may be cited as the “Fair Credit Reporting Act”.

§ 602. Congressional findings and statement of purpose 

(a) Accuracy and fairness of credit reporting. The Congress 

makes the following findings:

(1) The banking system is dependent upon fair and 

accurate credit reporting. Inaccurate credit reports 

directly impair the efficiency of the banking system, 

and unfair credit reporting methods undermine the 

public confidence which is essential to the continued 

functioning of the banking system. 

(2) An elaborate mechanism has been developed for 

investigating and evaluating the credit worthiness, 

credit standing, credit capacity, character, and general reputation of consumers.

(3) Consumer reporting agencies have assumed a vital 

role in assembling and evaluating consumer credit 

and other information on consumers. 

(4) There is a need to insure that consumer reporting 

agencies exercise their grave responsibilities with 

fairness, impartiality, and a respect for the consumer’s right to privacy.

(b) Reasonable procedures. It is the purpose of this title to 

require that consumer reporting agencies adopt reasonable 

procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information 

in a manner which is fair and equitable to the consumer, 

with regard to the confidentiality, accuracy, relevancy, 

and proper utilization of such information in accordance 

with the requirements of this title. 

§ 603. Definitions; rules of construction

(a) Definitions and rules of construction set forth in this section are applicable for the purposes of this title. 

(b) The term “person” means any individual, partnership, 

corporation, trust, estate, cooperative, association, government or governmental subdivision or agency, or other 

entity.

§ 603 15 U.S.C. § 1681a

15 U.S.C. § 1681

15 U.S.C. § 1681a

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2

(c) The term “consumer” means an individual.

(d) Consumer Report

(1) In general. The term “consumer report” means any 

written, oral, or other communication of any information by a consumer reporting agency bearing on a 

consumer’s credit worthiness, credit standing, credit 

capacity, character, general reputation, personal 

characteristics, or mode of living which is used or 

expected to be used or collected in whole or in part 

for the purpose of serving as a factor in establishing 

the consumer’s eligibility for

(A) credit or insurance to be used primarily for 

personal, family, or household purposes;

(B) employment purposes; or 

(C) any other purpose authorized under section 604 

[§ 1681b]. 

(2) Exclusions. Except as provided in paragraph (3), the 

term “consumer report” does not include 

(A) subject to section 624, any 

(i) report containing information solely as 

to transactions or experiences between 

the consumer and the person making the 

report; 

(ii) communication of that information among 

persons related by common ownership or 

affiliated by corporate control; or

(iii) communication of other information 

among persons related by common ownership or affiliated by corporate control, if 

it is clearly and conspicuously disclosed 

to the consumer that the information may 

be communicated among such persons and 

the consumer is given the opportunity, 

before the time that the information is 

initially communicated, to direct that such 

information not be communicated among 

such persons;

§ 603 15 U.S.C. § 1681a

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3

(B) any authorization or approval of a specific 

extension of credit directly or indirectly by the 

issuer of a credit card or similar device; 

(C) any report in which a person who has been 

requested by a third party to make a specific 

extension of credit directly or indirectly to a 

consumer conveys his or her decision with respect to such request, if the third party advises 

the consumer of the name and address of the 

person to whom the request was made, and 

such person makes the disclosures to the consumer required under section 615 [§ 1681m]; 

or

(D) a communication described in subsection (o) or 

(x).

(3) Restriction on sharing of medical information. Except for information or any communication of information disclosed as provided in section 604(g)(3), 

the exclusions in paragraph (2) shall not apply with 

respect to information disclosed to any person related 

by common ownership or affiliated by corporate 

control, if the information is--

(A) medical information;

(B) an individualized list or description based on 

the payment transactions of the consumer for 

medical products or services; or

(C) an aggregate list of identified consumers based 

on payment transactions for medical products 

or services.

(e) The term “investigative consumer report” means a consumer report or portion thereof in which information 

on a 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 

§ 603 15 U.S.C. § 1681a

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4

the consumer or from a consumer reporting agency when 

such information was obtained directly from a creditor of 

the consumer or from the consumer.

(f) The term “consumer reporting agency” means any person which, for monetary fees, dues, or on a cooperative 

nonprofit basis, regularly engages in whole or in part in 

the practice of assembling or evaluating consumer credit 

information or other information on consumers for the 

purpose of furnishing consumer reports to third parties, 

and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.

(g) The term “file,” when used in connection with information on any consumer, means all of the information on that 

consumer recorded and retained by a consumer reporting 

agency regardless of how the information is stored. 

(h) The term “employment purposes” when used in connection with a consumer report means a report used for the 

purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee. 

(i) The term “medical information” --

(1) means information or data, whether oral or recorded, 

in any form or medium, created by or derived from a 

health care provider or the consumer, that relates to--

(A) the past, present, or future physical, mental, or 

behavioral health or condition of an individual;

(B) the provision of health care to an individual; or

(C) the payment for the provision of health care to 

an individual.

(2) does not include the age or gender of a consumer, demographic information about the consumer, including 

a 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.

§ 603 15 U.S.C. § 1681a

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5

(j) Definitions Relating to Child Support Obligations

(1) The “overdue support” has the meaning given to such 

term in section 666(e) of title 42 [Social Security Act, 

42 U.S.C. § 666(e)]. 

(2) The term “State or local child support enforcement 

agency” means a State or local agency which administers a State or local program for establishing and 

enforcing child support obligations. 

(k) Adverse Action

(1) Actions included. The term “adverse action”

(A) has the same meaning as in section 701(d)(6) of 

the Equal Credit Opportunity Act; and

(B) means

(i) a denial or cancellation of, an increase in 

any charge for, or a reduction or other adverse or unfavorable change in the terms 

of coverage or amount of, any insurance, 

existing or applied for, in connection with 

the underwriting of insurance;

(ii) a denial of employment or any other decision for employment purposes that adversely affects any current or prospective 

employee;

(iii) a denial or cancellation of, an increase in 

any charge for, or any other adverse or 

unfavorable change in the terms of, any 

license or benefit described in section 

604(a)(3)(D) [§ 1681b]; and

(iv) an action taken or determination that is 

(I) made in connection with an application that was made by, or a transaction that was initiated by, any consumer, or in connection with a review 

of an account under section 604(a)(3)

(F)(ii)[§ 1681b]; and

(II) adverse to the interests of the consumer.

§ 603 15 U.S.C. § 1681a

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6

(2) Applicable findings, decisions, commentary, and orders. For purposes of any determination of whether 

an action is an adverse action under paragraph (1)

(A), all appropriate final findings, decisions, commentary, and orders issued under section 701(d)(6) 

of the Equal Credit Opportunity Act by the Board 

of Governors of the Federal Reserve System or any 

court shall apply.

(l) The term “firm offer of credit or insurance” means any 

offer of credit or insurance to a consumer that will be 

honored if the consumer is determined, based on information in a consumer report on the consumer, to meet the 

specific criteria used to select the consumer for the offer, 

except that the offer may be further conditioned on one or 

more of the following:

(1) The consumer being determined, based on information in the consumer’s application for the credit or 

insurance, to meet specific criteria bearing on credit 

worthiness or insurability, as applicable, that are 

established 

(A) before selection of the consumer for the offer; 

and

(B) for the purpose of determining whether to extend credit or insurance pursuant to the offer.

(2) Verification 

(A) that the consumer continues to meet the specific 

criteria used to select the consumer for the offer, by using information in a consumer report 

on the consumer, information in the consumer’s 

application for the credit or insurance, or other 

information bearing on the credit worthiness or 

insurability of the consumer; or

(B) of the information in the consumer’s application 

for the credit or insurance, to determine that the 

consumer meets the specific criteria bearing on 

credit worthiness or insurability.

(3) The consumer furnishing any collateral that is a requirement for the extension of the credit or insurance 

that was 

§ 603 15 U.S.C. § 1681a

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7

(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) The term “credit or insurance transaction that is not 

initiated by the consumer” does not include the use of a 

consumer report by a person with which the consumer has 

an account or insurance policy, for purposes of 

(1) reviewing the account or insurance policy; or

(2) collecting the account.

(n) The term “State” means any State, the Commonwealth of 

Puerto Rico, the District of Columbia, and any territory or 

possession of the United States.

(o) Excluded communications. A communication is described 

in this subsection if it is a communication 

(1) that, but for subsection (d)(2)(D), would be an investigative consumer report;

(2) that is made to a prospective employer for the purpose of

(A) procuring an employee for the employer; or

(B) procuring an opportunity for a natural person to 

work for the employer;

(3) that is made by a person who regularly performs such 

procurement;

(4) that is not used by any person for any purpose other 

than a purpose described in subparagraph (A) or (B) 

of paragraph (2); and

(5) with respect to which

(A) the consumer who is the subject of the communication

(i) consents orally or in writing to the nature 

and scope of the communication, before 

the collection of any information for the 

purpose of making the communication;

(ii) consents orally or in writing to the making of the communication to a prospective 

§ 603 15 U.S.C. § 1681a

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8

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) 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 

§ 603 15 U.S.C. § 1681a

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9

third parties bearing on a consumer’s credit worthiness, 

credit standing, or credit capacity, each of the following 

regarding consumers residing nationwide:

(1) Public record information.

(2) Credit account information from persons who furnish 

that information regularly and in the ordinary course 

of business.

(q) Definitions relating to fraud alerts.

(1) The term “active duty military consumer” means a 

consumer in military service who--

(A) is on active duty (as defined in section 101(d)

(1) of title 10, United States Code) or is a reservist performing duty under a call or order to 

active duty under a provision of law referred to 

in section 101(a)(13) of title 10, United States 

Code; and

(B) is assigned to service away from the usual duty 

station of the consumer.

(2) The terms “fraud alert” and “active duty alert” mean 

a statement in the file of a consumer that--

(A) notifies all prospective users of a consumer report relating to the consumer that the consumer 

may be a victim of fraud, including identity 

theft, or is an active duty military consumer, as 

applicable; and

(B) is presented in a manner that facilitates a 

clear and conspicuous view of the statement 

described in subparagraph (A) by any person 

requesting such consumer report.

(3) The term “identity theft” means a fraud committed 

using the identifying information of another person, 

subject to such further definition as the Commission 

may prescribe, by regulation. 

(4) 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;

§ 603 15 U.S.C. § 1681a

 See also

16 CFR Part 603.2

69 Fed. Reg. 63922 

(11/03/04)

Case 2:10-cv-00169-ALM -NMK Document 2-1 Filed 02/24/10 Page 15 of 130
§ 603 10 15 U.S.C. § 1681a

(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) The term “new credit plan” means a new account 

under an open end credit plan (as defined in section 

103(i) of the Truth in Lending Act) or a new credit 

transaction not under an open end credit plan.

(r) Credit and Debit Related Terms

(1) The term “card issuer” means--

(A) a credit card issuer, in the case of a credit card; 

and

(B) a debit card issuer, in the case of a debit card.

(2) The term “credit card” has the same meaning as in 

section 103 of the Truth in Lending Act.

(3) The term “debit card” means any card issued by a 

financial institution to a consumer for use in initiating 

an electronic fund transfer from the account of the 

consumer at such financial institution, for the purpose 

of transferring money between accounts or obtaining 

money, property, labor, or services.

(4) The terms “account” and “electronic fund transfer” 

have the same meanings as in section 903 of the Electronic Fund Transfer Act.

(5) The terms “credit” and “creditor” have the same 

meanings as in section 702 of the Equal Credit Opportunity Act.

(s) The term “Federal banking agency” has the same meaning 

as in section 3 of the Federal Deposit Insurance Act.

(t) The term “financial institution” means a State or National 

bank, a State or Federal savings and loan association, a 

Case 2:10-cv-00169-ALM -NMK Document 2-1 Filed 02/24/10 Page 16 of 130
11

mutual savings bank, a State or Federal credit union, or 

any other person that, directly or indirectly, holds a transaction account (as defined in section 19(b) of the Federal 

Reserve Act) belonging to a consumer.

(u) The term “reseller” means a consumer reporting agency 

that--

(1) assembles and merges information contained in the 

database of another consumer reporting agency or 

multiple consumer reporting agencies concerning any 

consumer for purposes of furnishing such information 

to any third party, to the extent of such activities; and 

(2) does not maintain a database of the assembled or 

merged information from which new consumer reports are produced.

(v) The term “Commission” means the Federal Trade Commission.

(w) The term “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) A communication is described in this subsection if--

(A) but for subsection (d)(2)(D), the communication 

would be a consumer report;

(B) the communication is made to an employer in 

connection with an investigation of–

(i) suspected misconduct relating to employment; or

(ii) compliance with Federal, State, or local 

laws and regulations, the rules of a self-

§ 603 15 U.S.C. § 1681a

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12

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, 

credit standing, or credit capacity; and

(D) the communication is not provided to any person except--

(i) to the employer or an agent of the employer;

(ii) to any Federal or State officer, agency, 

or department, or any officer, agency, 

or department of a unit of general local 

government;

(iii) to any self-regulatory organization with 

regulatory authority over the activities of 

the employer or employee;

(iv) as otherwise required by law; or

(v) pursuant to section 608.

(2) Subsequent disclosure. After taking any adverse 

action based in whole or in part on a communication 

described in paragraph (1), the employer shall disclose to the consumer a summary containing the nature and substance of the communication upon which 

the adverse action is based, except that the sources of 

information acquired solely for use in preparing what 

would be but for subsection (d)(2)(D) an investigative 

consumer report need not be disclosed.

(3) For purposes of this subsection, the term “selfregulatory organization” includes any self-regulatory 

organization (as defined in section 3(a)(26) of the 

Securities Exchange Act of 1934), any entity established under title I of the Sarbanes-Oxley Act of 

2002, any board of trade designated by the Commodity Futures Trading Commission, and any futures 

association registered with such Commission.

§ 603 15 U.S.C. § 1681a

Case 2:10-cv-00169-ALM -NMK Document 2-1 Filed 02/24/10 Page 18 of 130
§ 604 13 15 U.S.C. § 1681b

§ 604. 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 

(i) in connection with a business transaction 

that is initiated by the consumer; or

15 U.S.C. § 1681b

Case 2:10-cv-00169-ALM -NMK Document 2-1 Filed 02/24/10 Page 19 of 130
14

(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.

(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 connec-

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15

tion 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 title, 

as prescribed by the Federal Trade Commission 

under section 609(c)(3) [§ 1681g].

(2) Disclosure to Consumer.

(A) In general. Except as provided in subparagraph (B), a person may not procure a consumer report, or cause a consumer report to 

be procured, for employment purposes with 

respect to any consumer, unless--

(i) a clear and conspicuous disclosure has 

been made in writing to the consumer at 

any time before the report is procured 

or caused to be procured, in a document 

that consists solely of the disclosure, that 

a consumer report may be obtained for 

employment purposes; and

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(ii) the consumer has authorized in writing 

(which authorization may be made on the 

document referred to in clause (i)) the 

procurement of the report by that person.

(B) Application by mail, telephone, computer, or 

other similar means. If a consumer described 

in subparagraph (C) applies for employment 

by mail, telephone, computer, or other similar 

means, at any time before a consumer report is 

procured or caused to be procured in connection with that application--

(i) the person who procures the consumer 

report on the consumer for employment 

purposes shall provide to the consumer, 

by oral, written, or electronic means, 

notice that a consumer report may be 

obtained for employment purposes, and a 

summary of the consumer’s rights under 

section 615(a)(3); and

(ii) the consumer shall have consented, orally, 

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

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

procuring a consumer report on a consumer in 

connection with the consumer’s application for 

employment only if--

(i) the consumer is applying for a position 

over which the Secretary of Transportation has the power to establish qualifications and maximum hours of service 

pursuant to the provisions of section 

31502 of title 49, or a position subject to 

safety regulation by a State transportation 

agency; and

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

procured the only interaction between the 

consumer and the person in connection 

with that employment application has been 

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17

by mail, telephone, computer, or other 

similar means.

(3) Conditions on use for adverse actions.

(A) In general. Except as provided in subparagraph (B), in using a consumer report for employment purposes, before taking any adverse 

action based in whole or in part on the report, 

the person intending to take such adverse action shall provide to the consumer to whom the 

report relates--

(i) a copy of the report; and

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

consumer under this title, as prescribed by 

the Federal Trade Commission under section 609(c)(3).1

(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;

1 The references in Sections 604(b)(3)(A) and 604(b)(3)(B) should be to Section 

609(c)(1), not (c)(3) that no longer exists as the result of Congress’ re-organization 

of Section 609(c) in 2003 (FACT Act).

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(II) of the name, address and telephone 

number of the consumer reporting 

agency that furnished the consumer 

report (including a toll-free telephone 

number established by the agency if 

the agency compiles and maintains 

files on consumers on a nationwide 

basis);

(III) that the consumer reporting agency 

did not make the decision to take 

the adverse action and is unable to 

provide to the consumer the specific 

reasons why the adverse action was 

taken; and

(IV) that the consumer may, upon providing proper identification, request a 

free copy of a report and may dispute 

with the consumer reporting agency 

the accuracy or completeness of any 

information in a report.

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

requests a copy of a consumer report from 

the person who procured the report, then, 

within 3 business days of receiving the 

consumer’s request, together with proper 

identification, the person must send or 

provide to the consumer a copy of a report 

and a copy of the consumer’s rights as 

prescribed by the Federal Trade Commission under section 609(c)(3).

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

procuring a consumer report on a consumer in 

connection with the consumer’s application for 

employment only if--

(i) the consumer is applying for a position 

over which the Secretary of Transportation has the power to establish qualifications and maximum hours of service 

pursuant to the provisions of section 

§ 604 15 U.S.C. § 1681b

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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

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20

(VI) otherwise seriously jeopardize or 

unduly delay the investigation or 

another official proceeding.

(B) Notification of consumer upon conclusion of 

investigation. Upon the conclusion of a national 

security investigation described in subparagraph (A), or upon the determination that the 

exception under subparagraph (A) is no longer 

required for the reasons set forth in such subparagraph, the official exercising the authority in such subparagraph shall provide to the 

consumer who is the subject of the consumer 

report with regard to which such finding was 

made--

(i) a copy of such consumer report with any 

classified information redacted as necessary;

(ii) notice of any adverse action which is 

based, in part, on the consumer report; 

and

(iii) the identification with reasonable specificity of the nature of the investigation for 

which the consumer report was sought.

(C) Delegation by head of agency or department. 

For purposes of subparagraphs (A) and (B), the 

head of any agency or department of the United 

States Government may delegate his or her 

authorities under this paragraph to an official of 

such agency or department who has personnel 

security responsibilities and is a member of the 

Senior Executive Service or equivalent civilian 

or military rank.

(D) Report to the Congress. Not later than January 

31 of each year, the head of each agency and 

department of the United States Government 

that exercised authority under this paragraph 

during the preceding year shall submit a report 

to the Congress on the number of times the 

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21

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 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 

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22

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

(C) other information pertaining to a consumer that 

does not identify the relationship or experience 

of the consumer with respect to a particular 

creditor or other entity.

(3) Information regarding inquiries. Except as provided 

in section 609(a)(5) [§1681g], a consumer reporting agency shall not furnish to any person a record 

of inquiries in connection with a credit or insurance 

transaction that is not initiated by a consumer.

(d) Reserved.

(e) Election of consumer to be excluded from lists. 

(1) In general. A consumer may elect to have the 

consumer’s name and address excluded from any list 

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

by notifying the agency in accordance with paragraph 

(2) that the consumer does not consent to any use of a 

consumer report relating to the consumer in connection with any credit or insurance transaction that is 

not initiated by the consumer.

(2) Manner of notification. A consumer shall notify a 

consumer reporting agency under paragraph (1) 

(A) through the notification system maintained by 

the agency under paragraph (5); or

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23

(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 

§ 604 15 U.S.C. § 1681b

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24

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 

§ 604 15 U.S.C. § 1681b

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25

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 

607 [§ 1681e] 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--

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(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 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);

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27

(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, 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.

§ 604 15 U.S.C. § 1681b

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§ 605 28 15 U.S.C. § 1681c

(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.

§ 605. Requirements relating to information contained in 

consumer reports

(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 [United States Code] 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.2

(5) Any other adverse item of information, other than 

records of convictions of crimes which antedates the 

report by more than seven years.2

2 The reporting periods have been lengthened for certain adverse information pertaining to U.S. Government insured or guaranteed student loans, or pertaining to national direct student loans. See sections 430A(f) and 463(c)(3) of the Higher Education 

Act of 1965, 20 U.S.C. 1080a(f) and 20 U.S.C. 1087cc(c)(3), respectively.

See also

12 CFR Parts 41/222/

232/334/571/717 

70 Fed. Reg. 70664

(11/22/05)

15 U.S.C. §1681c

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29

(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)3

 of subsection (a) 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 

3 This provision, added in September 1996, should read “paragraphs (4) and (5)....” 

Prior Section 605(a)(6) was amended and re-designated as Section 605(a)(5) in 

November 1998. The current Section 605(a)(6), added in December 2003 and now 

containing no reference to any 7-year period, is obviously inapplicable.

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30

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 the date of 

enactment of the Consumer Credit Reporting Reform 

Act of 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, United States Code, 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, United States Code, 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 609(f)(2)(B)) 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 

623(a)(4) [§ 1681s-2] that a credit account of a consumer 

was voluntarily closed by the consumer, the agency shall 

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31

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 623(a)(3) [§ 

1681s-2] that information regarding a consumer who 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 the date of enactment of this 

subsection, 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 the date of enactment of this 

subsection, 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 603(p), the request 

§ 605 15 U.S.C. § 1681c

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32

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 

621, 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.

§ 605 15 U.S.C. § 1681c

See also

16 CFR Part 641

72 Fed. Reg. 63771-72 

(11/09/07)

74 Fed. Reg. 22640-41 

(05/14/09)

Case 2:10-cv-00169-ALM -NMK Document 2-1 Filed 02/24/10 Page 38 of 130
§ 605A 33 15 U.S.C. § 1681c-1

§ 605A. Identity theft prevention; fraud alerts and active duty 

alerts

(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 603(p) 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 

603(p), in accordance with procedures developed under section 621(f).

(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 612(d); and

(B) provide to the consumer all disclosures required 

to be made under section 609, without charge 

to the consumer, not later than 3 business days 

after any request described in subparagraph (A).

15 U.S.C. §1681c-1

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34

(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 603(p) 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 603(p), in accordance with procedures 

developed under section 621(f).

(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 612(d) during the 12-month 

§ 605A 15 U.S.C. § 1681c-1

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35

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 609, 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 603(p) 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 603(p), in accordance with procedures developed under section 621(f).

§ 605A 15 U.S.C. § 1681c-1

See also

16 CFR Part 613.1

69 Fed. Reg. 63922 

(11/03/04)

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36

(d) Procedures. Each consumer reporting agency described 

in section 603(p) 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 603(p) 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), in the 

case of a referral under subsection (a)(1)(B);

(2) paragraphs (1)(A), (1)(B), and (2) of subsection (b), 

in the case of a referral under subsection (b)(1)(C); 

and

(3) paragraphs (1) and (2) of subsection (c), in the case 

of a referral under subsection (c)(3).

(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 603(p) 

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 

603(p) 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- 

§ 605A 15 U.S.C. § 1681c-1

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37

(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 openend credit plan (as defined in section 103(i)), 

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 103(i)), 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 

§ 605A 15 U.S.C. § 1681c-1

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38

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 103(i)), 

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 103(i)), 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 

§ 605A 15 U.S.C. § 1681c-1

Case 2:10-cv-00169-ALM -NMK Document 2-1 Filed 02/24/10 Page 44 of 130
§ 605B 39 15 U.S.C. § 1681c-2

an additional card is not the result of identity 

theft.

§ 605B. Block of information resulting from identity theft 

(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)--

(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 con15 U.S.C. §1681c-2

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40

sumer 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 611(a)(5)(B).

(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), 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), identifies, to a consumer reporting agency, information in the file of 

§ 605B 15 U.S.C. § 1681c-2

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41

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), a check services company shall not report to a 

national consumer reporting agency described in section 

603(p), 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 title.

§ 606. Disclosure of investigative consumer reports

(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

§ 606 15 U.S.C. § 1681d

15 U.S.C. § 1681d

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42

(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 609(c) 

[§ 1681g]; 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).

(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 investigative consumer report 

§ 606 15 U.S.C. § 1681d

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43

unless the agency has received a certification under 

subsection (a)(2) 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 613 [§ 1681k], 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.

§ 607. Compliance procedures

(a) Identity and purposes of credit users. Every consumer 

reporting agency shall maintain reasonable procedures 

§ 607 15 U.S.C. § 1681e

15 U.S.C. § 1681e

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44

designed to avoid violations of section 605 [§ 1681c] and 

to limit the furnishing of consumer reports to the purposes 

listed under section 604 [§ 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 604 [§ 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 

title.

(2) Content of notice. The Federal Trade Commission 

shall prescribe the content of notices under paragraph 

§ 607 15 U.S.C. § 1681e

See also

16 CFR 698, App G-H

69 Fed. Reg. 69776 

(11/30/04)

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45

(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 604 [§ 

1681b] 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 604 [§ 1681b], 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).

§ 607 15 U.S.C. § 1681e

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(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 

604(b)(4)(E)(i)); 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.

§ 608. Disclosures to governmental agencies

Notwithstanding the provisions of section 604 [§ 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. 

§ 609. Disclosures to consumers 

(a) Information on file; sources; report recipients. Every 

consumer reporting agency shall, upon request, and subject to 610(a)(1) [§ 1681h], 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 disclo-

§ 609 15 U.S.C. § 1681g

15 U.S.C. § 1681f

15 U.S.C. § 1681g

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sure 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 use for 

no other purpose need not be disclosed: Provided, 

That in the event an action is brought under this title, 

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 607(e)(1) [§ 

1681e]) 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 

§ 609 15 U.S.C. § 1681g

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the consumer to whom the report relates 

to receive access or continued access to 

classified information (as defined in section 604(b)(4)(E)(i)); and

(ii) the head of the agency or department 

makes a written finding as prescribed 

under section 604(b)(4)(A).

(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 title 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 title.

(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) 

from each consumer reporting agency;

§ 609 15 U.S.C. § 1681g

See also

16 CFR Part 698, 

App F

69 Fed. Reg. 69776 

(11/30/04)

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49

(ii) the frequency and circumstances under 

which a consumer is entitled to receive 

a consumer report without charge under 

section 612;

(iii) the right of a consumer to dispute information in the file of the consumer under 

section 611;

(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) 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 603(w), as provided in the regulations of the Commission prescribed under 

section 612(a)(1)(C).

(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--

§ 609 15 U.S.C. § 1681g

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50

(A) the summary of rights prepared by the Commission under paragraph (1);

(B) in the case of a consumer reporting agency described in section 603(p), 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 title, 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 605 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 title 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 

§ 609 15 U.S.C. § 1681g

See also 

16 CFR Part 698, 

App E 

69 Fed. Reg. 69776 

(11/30/04)

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51

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 

§ 609 15 U.S.C. § 1681g

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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 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–

§ 609 15 U.S.C. § 1681g

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53

(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 

621, sections 616 and 617 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 

§ 609 15 U.S.C. § 1681g

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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, 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 the date of enactment of this subsection.

§ 609 15 U.S.C. § 1681g

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(13) Effectiveness study. Not later than 18 months after 

the date of enactment of this subsection, 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) 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 

§ 609 15 U.S.C. § 1681g

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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) 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).

(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 

§ 609 15 U.S.C. § 1681g

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arising pursuant to section 611, 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.

§ 609 15 U.S.C. § 1681g

See also

 69 Fed. Reg. 64698 

(11/08/04)

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(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), 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) 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).

§ 609 15 U.S.C. § 1681g

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(iii) Enterprise defined. For purposes of this 

subparagraph, the term “enterprise” has 

the same meaning as in paragraph (6) of 

section 1303 of the Federal Housing Enterprises Financial Safety and Soundness 

Act of 1992.

(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 

§ 609 15 U.S.C. § 1681g

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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);

(ii) disclose any information other than a 

credit score or key factors, as defined in 

subsection (f);

(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.

§ 609 15 U.S.C. § 1681g

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(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 1303 of the Federal Housing Enterprises Financial Safety and Soundness 

Act of 1992).

(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.

§ 610. Conditions and form of disclosure to consumers

(a) In General

(1) Proper identification. A consumer reporting agency 

shall require, as a condition of making the disclosures required under section 609 [§ 1681g], that the 

consumer furnish proper identification.

(2) Disclosure in writing. Except as provided in subsection (b), the disclosures required to be made under 

section 609 [§ 1681g] shall be provided under that 

section in writing.

§ 610 15 U.S.C. § 1681h

15 U.S.C. § 1681h

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(b) Other Forms of Disclosure 

(1) In general. If authorized by a consumer, a consumer 

reporting agency may make the disclosures required 

under 609 [§ 1681g] 

(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 609 [§ 

1681g] 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 609 [§ 

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 616 

and 617 [§§1681n and 1681o] of this title, no consumer 

may bring any action or proceeding in the nature of defa-

§ 610 15 U.S.C. § 1681h

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§ 611 63 15 U.S.C. § 1681i

mation, 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 609, 

610, or 615 [§§ 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, except as to false information furnished with malice 

or willful intent to injure such consumer. 

§ 611. Procedure in case of disputed accuracy

(a) Reinvestigations of Disputed Information

(1) Reinvestigation Required

(A) In general. Subject to subsection (f), 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 

15 U.S.C. § 1681i

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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 

§ 611 15 U.S.C. § 1681i

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(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.

§ 611 15 U.S.C. § 1681i

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(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.

§ 611 15 U.S.C. § 1681i

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(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 

§ 611 15 U.S.C. § 1681i

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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) 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) 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 con-

§ 611 15 U.S.C. § 1681i

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69

sumer 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 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 603(p) 

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 

§ 611 15 U.S.C. § 1681i

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otherwise utilized the procedures provided by 

subsection (a); 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 shall not be 

subject to paragraph (1).

(3) Agency responsibilities. Each consumer reporting 

agency described in section 603(p) 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 title (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.

§ 611 15 U.S.C. § 1681i

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(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)--

§ 611 15 U.S.C. § 1681i

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(A) the notice by the consumer reporting agency 

under paragraph (6), (7), or (8) of subsection 

(a) 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.

§ 612. Charges for certain disclosures

(a) Free Annual Disclosure 

(1) Nationwide Consumer Reporting Agencies

(A) In general. All consumer reporting agencies 

described in subsections (p) and (w) of section 

603 shall make all disclosures pursuant to section 609 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 603(p) only if the request 

from the consumer is made using the centralized source established for such purpose in 

accordance with section 211(c) 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 603(w) to require the establishment 

of a streamlined process for consumers 

to request consumer reports under subparagraph (A), which shall include, at a 

§ 612 15 U.S.C. § 1681j

15 U.S.C. § 1681j

See also

16 CFR Part 610

69 Fed. Reg. 35467

(06/24/04)

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73

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 the date of enactment of the 

Fair and Accurate Credit Transactions Act 

of 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 603(w)) shall be required to comply with subsection (a), which effective 

date--

(I) shall be established after consideration of the ability of each nationwide 

specialty consumer reporting agency 

to comply with subsection (a); and

§ 612 15 U.S.C. § 1681j

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(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 611(a)(1), 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 609 

[§ 1681g] without charge to the consumer if, not later than 

60 days after receipt by such consumer of a notification 

pursuant to section 615 [§ 1681m], 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 609 [§ 1681g].

(c) Free disclosure under certain other circumstances. Upon 

the request of the consumer, a consumer reporting agency 

shall make all disclosures pursuant to section 609 [§ 

1681g] once during any 12-month period without charge 

to that consumer if the consumer certifies in writing that 

the consumer 

§ 612 15 U.S.C. § 1681j

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(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 603(p) shall make all disclosures 

pursuant to section 609 without charge to the consumer, as 

provided in subsections (a)(2) and (b)(2) of section 605A, 

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 title or making any 

disclosure required by this title, except as authorized by 

subsection (f).

(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), a consumer reporting agency 

may impose a reasonable charge on a consumer 

(A) for making a disclosure to the consumer pursuant to section 609 [§ 1681g], which charge 

(i) shall not exceed $8;4 and

(ii) shall be indicated to the consumer before 

making the disclosure; and

(B) for furnishing, pursuant to 611(d) [§ 1681i], 

following a reinvestigation under section 611(a) 

[§ 1681i], 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 611(a) 

4 Pursuant to Section 612(f)(2), the Federal Trade Commission increased the maximum charge to $11.00, effective January 1, 2009. See 73 Fed. Reg. 79845 (Dec. 

29, 2008).

§ 612 15 U.S.C. § 1681j

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[§ 1681i] 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.

(g) Prevention of Deceptive Marketing of Credit Reports

(1) In general. Subject to rulemaking pursuant to section 

205(b) of the Credit CARD Act of 2009, any advertisement for a free credit report in any medium shall 

prominently disclose in such advertisement that free 

credit reports are available under Federal law at “AnnualCreditReport.com” (or such other source as may 

be authorized under Federal law).

(2) Television and radio advertisement. In the case of 

an advertisement broadcast by television, the disclosures required under paragraph (1) shall be included 

in the audio and visual part of such advertisement. In 

the case of an advertisement broadcast by televison 

or radio, the disclosure required under paragraph (1) 

shall consist only of the following: “This is not the 

free credit report provided for by Federal law.’’

§ 613. Public record information for employment purposes 

(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 

§ 613 15 U.S.C. § 1681k

15 U.S.C. § 1681k

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(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) 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 604(b)(4)(A).

§ 614. Restrictions on investigative consumer reports

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. 

§ 615. Requirements on users of consumer reports

(a) Duties of users taking adverse actions on the 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 

§ 615 15 U.S.C. § 1681m

15 U.S.C. § 1681l

15 U.S.C. § 1681m

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(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 612 [§ 1681j], 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 611 [§ 1681i], 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, credit 

standing, credit capacity, character, general reputation, personal characteristics, or mode of living, the 

user of such information shall, within a reasonable 

§ 615 15 U.S.C. § 1681m

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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 603(k)(1)(A) [§ 1681a], taken in 

connection with a transaction initiated by the 

consumer, or any adverse action described 

in clause (i) or (ii) of section 603(k)(1)(B) [§ 

1681a].

(C) Information described. Information referred to in 

subparagraph (A) 

(i) except as provided in clause (ii), is information that 

§ 615 15 U.S.C. § 1681m

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(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, 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 the 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 

604(c)(1)(B) [§ 1681b], 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 or insurability 

§ 615 15 U.S.C. § 1681m

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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 

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 604(e) 

[§ 1681b].

(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 604(e); 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 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 

§ 615 15 U.S.C. § 1681m

See also

16 CFR Part 642

16 CFR Part 698 

App A

70 Fed. Reg. 5022 

(01/31/05)

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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 621–

(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–

§ 615 15 U.S.C. § 1681m

See also

16 CFR Part 681

72 Fed. Reg. 63772-

74 (11/09/07)

74 Fed. Reg. 22640-

41 (05/14/09)

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(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, United States 

Code.

§ 615 15 U.S.C. § 1681m

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(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 605B 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 title VIII) 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.

§ 615 15 U.S.C. § 1681m

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(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) in connection with the transaction.

(4) Other notice not sufficient. A person that is required 

to provide a notice under subsection (a) 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;

§ 615 15 U.S.C. § 1681m

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(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 603(p)).

(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.

§ 615 15 U.S.C. § 1681m

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§ 616 87 15 U.S.C. § 1681n

(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 616 and 617 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 621 by 

the Federal agencies and officials identified in 

that section.

§ 616. Civil liability for willful noncompliance

(a) In general. Any person who willfully fails to comply 

with any requirement imposed under this title 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 report15 U.S.C. § 1681n

Case 2:10-cv-00169-ALM -NMK Document 2-1 Filed 02/24/10 Page 93 of 130
§ 617 88 15 U.S.C. § 1681o

ing 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.

(d) Clarification of willful noncompliance. For the purposes 

of this section, any person who printed an expiration date 

on any receipt provided to a consumer cardholder at a 

point of sale or transaction between December 4, 2004, 

and the date of the enactment of this subsection but otherwise complied with the requirements of section 605(g) 

for such receipt shall not be in willful noncompliance with 

section 605(g) by reason of printing such expiration date 

on the receipt.

§ 617. Civil liability for negligent noncompliance

(a) In general. Any person who is negligent in failing to 

comply with any requirement imposed under this title 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.

15 U.S.C. § 1681o

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§ 621 89 15 U.S.C. § 1681s

§ 618. Jurisdiction of courts; limitation of actions

An action to enforce any liability created under this title 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.

§ 619. Obtaining information under false pretenses

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, United States Code, 

imprisoned for not more than 2 years, or both. 

§ 620. Unauthorized disclosures by officers or employees 

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, United 

States Code, imprisoned for not more than 2 years, or both. 

§ 621. Administrative enforcement

(a) (1) Enforcement by Federal Trade Commission. Compliance with the requirements imposed under this title 

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 title 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 title 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) 

 15 U.S.C. § 1681p

15 U.S.C. § 1681q

15 U.S.C. § 1681r

15 U.S.C. § 1681s

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90

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 

title 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 title. 

Any person violating any of the provisions of this 

title 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 title. 

(2) (A) In the event of a knowing violation, which 

constitutes a pattern or practice of violations 

of this title, 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 title. In such action, 

such person shall be liable for a civil penalty of 

not more than $2,500 per violation.5

(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 623(a)(1) [§ 1681s-2] unless the person has 

been enjoined from committing the violation, or

5 Pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, the Federal Trade Commission increased the maximum civil penalty to $3,500 per violation, 

effective February 9, 2009. See 74 Fed. Reg. 857 (Jan. 9, 2009).

§ 621 15 U.S.C. § 1681s

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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 title 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 615 [§ 1681m] 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;

§ 621 15 U.S.C. § 1681s

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92

(3) the Federal Credit Union Act [12 U.S.C. §§ 1751 

et seq.], by the Administrator of the National Credit 

Union Administration [National Credit Union Administration Board] with respect to any Federal credit 

union; 

(4) subtitle IV of title 49 [49 U.S.C. §§ 10101 et seq.], 

by the Secretary of Transportation, with respect to 

all carriers subject to the jurisdiction of the Surface 

Transportation Board;

(5) the Federal Aviation Act of 1958 [49 U.S.C. Appx 

§§ 1301 et seq.], by the Secretary of Transportation 

with respect to any air carrier or foreign air carrier 

subject to that Act [49 U.S.C. Appx §§ 1301 et seq.]; 

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 and 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 title 

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 title, 

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 616 and 617 

§ 621 15 U.S.C. § 1681s

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[§§ 1681n and 1681o] as a result of the 

violation;

(ii) in the case of a violation described in any 

of paragraphs (1) through (3) of section 

623(c) [§ 1681s-2], damages for which the 

person would, but for section 623(c), 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) 

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 

§ 621 15 U.S.C. § 1681s

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94

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 for a violation of 

this title, 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 title 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 623(c), 

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 623(c), 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 title 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 

§ 621 15 U.S.C. § 1681s

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compliance with any requirement imposed under this title 

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) shall jointly prescribe such regulations as necessary to carry out the 

purposes of this Act with respect to any persons identified under paragraphs (1) and (2) of subsection (b), 

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 Act with respect to any 

persons identified under paragraph (3) of subsection 

(b).

(f) Coordination of Consumer Complaint Investigations

(1) In general. Each consumer reporting agency described in section 603(p) 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 605A or a block under section 605B.

(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 603(p) shall submit an 

annual summary report to the Commission on consumer complaints received by the agency on identity 

theft or fraud alerts.

§ 621 15 U.S.C. § 1681s

See also

70 Fed.Reg. 21792 

(04/27/05)

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§ 623 96 15 U.S.C. § 1681s-2

(g) FTC regulation of coding of trade names. If the Commission determines that a person described in paragraph 

(9) of section 623(a) 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.

§ 622. Information on overdue child support obligations 

Notwithstanding any other provision of this title, a consumer 

reporting agency shall include in any consumer report furnished 

by the agency in accordance with section 604 [§ 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. 

§ 623. Responsibilities of furnishers of information to 

consumer reporting agencies

(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 

15 U.S.C. § 1681s-1

15 U.S.C. § 1681s-2

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(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 

§ 623 15 U.S.C. § 1681s-2

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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 

§ 623 15 U.S.C. § 1681s-2

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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 TheftRelated 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 605B 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.

§ 623 15 U.S.C. § 1681s-2

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(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 603(p) 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 603(p) 

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 603(p).

(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 127(a) of the Truth in Lending Act. 

§ 623 15 U.S.C. § 1681s-2

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(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.

§ 623 15 U.S.C. § 1681s-2

See also

12 CFR Part 222, 

App B

70 Fed. Reg. 33281 

(06/15/04)

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(G) Definitions. For purposes of this paragraph, 

the following definitions shall apply:

(i) The term “negative information” means 

information concerning a customer’s delinquencies, late payments, insolvency, or 

any form of default.

(ii) The terms “customer” and “financial 

institution” have the same meanings as in 

section 509 Public Law 106-102.

(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 403(3) [15 U.S.C. 

§1679a(3)], including entities that would 

be a credit repair organization, but for 

§ 623 15 U.S.C. § 1681s-2

See also

16 CFR Part 660.4

74 Fed. Reg. 31484

(7/1/09)

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section 403(3)(B)(i), 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 

611(a)(1) 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

§ 623 15 U.S.C. § 1681s-2

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(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), with respect to which the person 

has already performed the person’s 

duties under this paragraph or subsection (b), 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.

§ 623 15 U.S.C. § 1681s-2

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(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 403(3), or 

an entity that would be a credit repair organization, but for section 403(3)(B)(i).

(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 title, 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 

611(a)(2) [§ 1681i] 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 

611(a)(2) [§ 1681i];

§ 623 15 U.S.C. § 1681s-2

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(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 611(a)(1) [§ 1681i] 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 

621(c)(1)(B), sections 616 and 617 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 616 or 617, as applicable, for 

violations of subsection (b) of this section; or

(3) subsection (e) of section 615.

§ 623 15 U.S.C. § 1681s-2

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(d) Limitation on enforcement. The provisions of law described in paragraphs (1) through (3) of subsection (c) 

(other than with respect to the exception described in paragraph (2) of subsection (c)) shall be enforced exclusively 

as provided under section 621 by the Federal agencies and 

officials and the State officials identified in section 621.

(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 621, 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;

§ 623 15 U.S.C. § 1681s-2

See also

16 CFR Part 660

74 Fed. Reg. 31484 

(7/1/09)

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§ 624 108 15 U.S.C. § 1681s-3

(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.

§ 624. Affiliate sharing

(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 603(d)(2)(A), 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 

See also

16 CFR Parts 680, 

698 Appx C

72 Fed. Reg. 61455-

64 (10/30/07)

 74 Fed. Reg. 22639-

40 (05/14/09)

15 U.S.C. § 1681s-3

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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;

§ 624 15 U.S.C. § 1681s-3

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(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), and 

that is provided by a person described in subsection (a) 

to a consumer together with disclosures required by any 

§ 624 15 U.S.C. § 1681s-3

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other provision of law, shall satisfy the requirements of 

subsection (a).

(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 625(b)(2).

(d) Definitions. For purposes of this section, the following 

definitions shall apply:

(1) 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) 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), and is intended to 

§ 624 15 U.S.C. § 1681s-3

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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.

§ 625. Relation to State laws

(a) In general. Except as provided in subsections (b) and (c), 

this title does not annul, alter, affect, or exempt any person subject to the provisions of this title 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 title, 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 604 [§ 1681b], 

relating to the prescreening of consumer reports;

(B) section 611 [§ 1681i], 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 the date of enactment of the 

Consumer Credit Reporting Reform Act of 

1996;

(C) subsections (a) and (b) of section 615 [§ 

1681m], relating to the duties of a person who 

takes any adverse action with respect to a consumer;

(D) section 615(d) [§ 1681m], relating to the duties of persons who use a consumer report of 

a consumer in connection with any credit or 

§ 625 15 U.S.C. § 1681t

15 U.S.C. § 1681t

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insurance transaction that is not initiated by the 

consumer and that consists of a firm offer of 

credit or insurance;

(E) section 605 [§ 1681c], relating to information 

contained in consumer reports, except that this 

subparagraph shall not apply to any State law in 

effect on the date of enactment of the Consumer 

Credit Reporting Reform Act of 1996; 

(F) section 623 [§ 1681s-2], 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 the date of enactment of 

the Consumer Credit Reporting Reform 

Act of 1996); or

(ii) with respect to section 1785.25(a) of the 

California Civil Code (as in effect on the 

date of enactment of the Consumer Credit 

Reporting Reform Act of 1996);

(G) section 609(e), relating to information available 

to victims under section 609(e);

(H) section 624, relating to the exchange and use of 

information to make a solicitation for marketing 

purposes; or 

(I) section 615(h), 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 the date of enactment of the Consumer 

Credit Reporting Reform Act of 1996); 

(3) with respect to the disclosures required to be made 

under subsection (c), (d), (e), or (g) of section 609, 

§ 625 15 U.S.C. § 1681t

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or subsection (f) of section 609 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 the date 

of enactment of the Fair and Accurate Credit 

Transactions Act of 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 the date of 

enactment of the Fair and Accurate Credit 

Transactions Act of 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 612(a), 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 

the date of enactment of the Fair and Accurate 

Credit Transactions Act of 2003);

(B) with respect to section 10-1-393(29)(C) of the 

Georgia Code (as in effect on the date of enactment of the Fair and Accurate Credit Transactions Act of 2003);

(C) with respect to section 1316.2 of title 10 of the 

Maine Revised Statutes (as in effect on the date 

of enactment of the Fair and Accurate Credit 

Transactions Act of 2003);

§ 625 15 U.S.C. § 1681t

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(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 the date 

of enactment of the Fair and Accurate Credit 

Transactions Act of 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 the date of enactment 

of the Fair and Accurate Credit Transactions 

Act of 2003);

(F) with respect to section 56:11-37.10(a)(1) of the 

New Jersey Revised Statutes (as in effect on 

the date of enactment of the Fair and Accurate 

Credit Transactions Act of 2003); or 

(G) with respect to section 2480c(a)(1) of title 9 of 

the Vermont Statutes Annotated (as in effect on 

the date of enactment of the Fair and Accurate 

Credit Transactions Act of 2003); or

(5) with respect to the conduct required by the specific 

provisions of--

(A) section 605(g);

(B) section 605A;

(C) section 605B;

(D) section 609(a)(1)(A);

(E) section 612(a);

(F) subsections (e), (f), and (g) of section 615;

(G) section 621(f);

(H) section 623(a)(6); or

(I) section 628.

(c) Definition of firm offer of credit or insurance. 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 603(l) [§ 1681a] shall be construed to apply in the 

enforcement and interpretation of the laws of any State 

governing consumer reports.

§ 625 15 U.S.C. § 1681t

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§ 626 116 15 U.S.C. § 1681u

(d) Limitations. Subsections (b) and (c) do not affect any 

settlement, agreement, or consent judgment between 

any State Attorney General and any consumer reporting 

agency in effect on the date of enactment of the Consumer 

Credit Reporting Reform Act of 1996.

§ 626. Disclosures to FBI for counterintelligence purposes 

(a) Identity of financial institutions. Notwithstanding section 604 [§ 1681b] or any other provision of this title, 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 

1101 of the Right to Financial Privacy Act of 1978 [12 

U.S.C. § 3401]) 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 604 [§ 1681b] or any other provision of this title, 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, which certifies compliance with this subsection. The Director or the Director’s 

15 U.S.C. § 1681u

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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 

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 604 [§ 1681b] or any other provision of 

this title, 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 

of 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. 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), 

and no consumer reporting agency or officer, employee, 

§ 626 15 U.S.C. § 1681u

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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.

(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 Act. 

Nothing in this section shall be construed to authorize or 

permit the withholding of information from the Congress.

(h) Reports to Congress. 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).

§ 626 15 U.S.C. § 1681u

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(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 title, 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 title, 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 title, the remedies and sanctions set forth in 

§ 626 15 U.S.C. § 1681u

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§ 627 120 15 U.S.C. § 1681v

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. 

§ 627. Disclosures to governmental agencies for 

counterterrorism purposes 

(a) Disclosure. Notwithstanding section 604 or any other 

provision of this title, 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) 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. 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).

(d) Rule of construction. Nothing in section 626 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 

title, 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 

15 U.S.C. § 1681v

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§ 628 121 15 U.S.C. § 1681w

upon a certification of a governmental 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.

§ 628. Disposal of records 

(a) Regulations

(1) In general. Not later than 1 year after the date of 

enactment of this section, 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, 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.

15 U.S.C. § 1681w

See also

16 CFR Part 682

69 Fed. Reg. 68690

(11/24/04)

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§ 629 122 15 U.S.C. § 1681x

(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.

§ 629. Corporate and technological circumvention 

prohibited 

The Commission shall prescribe regulations, to become effective not later than 90 days after the date of enactment of this 

section, to prevent a consumer reporting agency from circumventing or evading treatment as a consumer reporting agency 

described in section 603(p) for purposes of this title, 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 603(p), in the manner described in section 

603(p).

15 U.S.C. § 1681x

See also

16 CFR Part 611

69 Fed. Reg. 8531 

(02/24/04)

69 Fed. Reg. 29061 

(05/20/04)

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Legislative History

House Report: No. 91-975 (Comm. on Banking and Currency)

Senate Report: No. 91-1139 (Comm. on Banking and Currency)

Conference Report: No. 91-1587

Enactment: Public Law No. 91-508 (October 26, 1970)

Amendments: Public Law Nos. 95-473 (October 17, 1978)

 95-598 (November 6, 1978)

 98-443 (October 4, 1984)

 101-73 (August 9, 1989)

 102-242 (December 19, 1991)

 102-537 (October 27, 1992)

 102-550 (October 28, 1992)

 103-325 (September 23, 1994)

 104-88 (December 29, 1995)

 104-93 (January 6, 1996)

 104-193 (August 22, 1996)

 104-208 (September 30, 1996)

 105-107 (November 20, 1997)

 105-347 (November 2, 1998)

 106-102 (November 12, 1999)

 107-56 (October 26, 2001)

 108-159 (December 4, 2003)

 109-351 (October 13, 2006)

 110-241 (June 3, 2008)

 111-24 (May 22, 2009)

 

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1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

Case 2:10-cv-00169-ALM -NMK Document 2-1 Filed 02/24/10 Page 130 of 130
F air 

D ebt 

C ollection

P ractices

A ct

Case 2:10-cv-00169-ALM -NMK Document 2-2 Filed 02/24/10 Page 1 of 28
Case 2:10-cv-00169-ALM -NMK Document 2-2 Filed 02/24/10 Page 2 of 28
1

THE FAIR DEBT COLLECTION PRACTICES ACT

As amended by Pub. L. 109-351, §§ 801-02, 120 Stat. 1966 (2006)

As a public service, the staff of the Federal Trade Commission (FTC) has 

prepared the following complete text of the Fair Debt Collection Practices Act 

(FDCPA), 15 U.S.C. §§ 1692-1692p.

Please note that the format of the text differs in minor ways from the U.S. 

Code and West’s U.S. Code Annotated. For example, this version uses FDCPA 

section numbers in the headings. In addition, the relevant U.S. Code citation is 

included with each section heading. Although the staff has made every effort 

to transcribe the statutory material accurately, this compendium is intended as 

a convenience for the public and not a substitute for the text in the U.S. Code.

Table of Conten

§ 801 Short title 

§ 802 Congressional findings and declaration of purpose

§ 803 Definitions

§ 804 Acquisition of location information

§ 805 Communication in connection with debt collection

§ 806 Harassment or abuse

§ 807 False or misleading representations

§ 808 Unfair practices 

§ 809 Validation of debts

§ 810 Multiple debts

§ 811 Legal actions by debt collectors

§ 812 Furnishing certain deceptive forms

§ 813 Civil liability 

§ 814 Administrative enforcement 

§ 815 Reports to Congress by the Commission

§ 816 Relation to State laws

§ 817 Exemption for State regulation

§ 818 Exception for certain bad check enforcement programs operated by 

private entities

§ 819 Effective date

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§ 801 15 USC 1601 note

§ 801. Short Title 

This title may be cited as the “Fair Debt Collection Practices Act.”

§ 802. Congressional findings and declaration of purpose

(a) 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) Existing laws and procedures for redressing these injuries 

are inadequate to protect consumers. 

(c) Means other than misrepresentation or other abusive debt 

collection practices are available for the effective collection of debts. 

(d) 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) It is the purpose of this title 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.

§ 803. Definitions 

As used in this title—

(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. 

15 USC 1601 note

15 USC 1692

15 USC 1692a

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§ 803 15 USC 1692a

(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 

808(6), 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 

Case 2:10-cv-00169-ALM -NMK Document 2-2 Filed 02/24/10 Page 5 of 28
4

§ 803 15 USC 1692a

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.

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5

§ 804 15 USC 1692b

§ 804. Acquisition of location information 

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 

the communication from the debt collector.

§ 805. Communication in connection with debt collection

(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 

15 USC 1692b

15 USC 1692c

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6

§ 805 15 USC 1692c

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 antimeridian 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 804, 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 a 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 

Case 2:10-cv-00169-ALM -NMK Document 2-2 Filed 02/24/10 Page 8 of 28
7

§ 805 15 USC 1692c

(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) 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.

§ 806. Harassment or abuse 

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 603(f) or 604(3)1

 of this Act. 

(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 804, the placement of 

telephone calls without meaningful disclosure of the 

caller’s identity.

1. Section 604(3) has been renumbered as Section 604(a)(3).

15 USC 1692d

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8

§ 807 15 USC 1692e

§ 807. False or misleading representations 

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 

title. 

(7) The false representation or implication that the consumer committed any crime or other conduct in order 

to disgrace the consumer. 

15 USC 1692e

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§ 807 15 USC 1692e

(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 603(f) of this Act.

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§ 808 15 USC 1692f

§ 808. Unfair practices 

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 propose 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. 

15 USC 1692f

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§ 808 15 USC 1692f

(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.

§ 809. Validation of debts 

(a) 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) If the consumer notifies the debt collector in writing within 

the thirty-day period described in subsection (a) that the 

debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original credi15 USC 1692g

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12

§ 809 15 USC 1692g

tor, the debt collector shall cease collection of the debt, 

or any disputed portion thereof, until the debt collector 

obtains verification of the debt or any 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 title 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) 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) 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) The sending or delivery of any form or notice which 

does not relate to the collection of a debt and is expressly 

required by the Internal Revenue Code of 1986, title V of 

Gramm-Leach-Bliley Act, 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.

§ 810. Multiple debts 

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.

15 USC 1692h

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§ 811 15 USC 1692i

§ 811. Legal actions by debt collectors 

(a) 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) Nothing in this title shall be construed to authorize the 

bringing of legal actions by debt collectors.

§ 812. Furnishing certain deceptive forms

(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 813 for failure to comply with a provision of this title.

§ 813. Civil liability 

(a) Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this title 

with respect to any person is liable to such person in an 

amount equal to the sum of— 

15 USC 1692i

15 USC 1692k

15 USC 1692j

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§ 813 15 USC 1692k

(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) In determining the amount of liability in any action under subsection (a), the court shall consider, among other 

relevant factors—

(1) in any individual action under subsection (a)(2)(A), 

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), 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. 

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§ 813 15 USC 1692k

(c) A debt collector may not be held liable in any action 

brought under this title 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) An action to enforce any liability created by this title 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) 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.

§ 814. Administrative enforcement 

(a) Compliance with this title shall be enforced by the Commission, except to the extent that enforcement of the 

requirements imposed under this title is specifically committed to another agency under subsection (b). For purpose 

of the exercise by the Commission of its functions and 

powers under the Federal Trade Commission Act, a violation of this title 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 title, 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 

title in the same manner as if the violation had been a violation of a Federal Trade Commission trade regulation rule. 

(b) Compliance with any requirements imposed under this title 

shall be enforced under—

15 USC 1692l

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 (1)section 8 of the Federal Deposit Insurance Act, 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) of the 

Federal Reserve Act, 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, 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, by the Administrator of 

the National Credit Union Administration with respect 

to any Federal credit union;

 (4) the Acts to regulate commerce, by the Secretary of 

Transportation, with respect to all carriers subject to 

the jurisdiction of the Surface Transportation Board;

 (5) the Federal Aviation Act of 1958, by the Secretary of 

Transportation with respect to any air carrier or any 

foreign air carrier subject to that Act; and

 (6) the Packers and Stockyards Act, 1921 (except as provided in section 406 of that Act), by the Secretary of 

Agriculture with respect to any activities subject to that 

Act.

§ 814 15 USC 1692l

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The terms used in paragraph (1) that are not defined in 

this title 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) For the purpose of the exercise by any agency referred 

to in subsection (b) of its powers under any Act referred 

to in that subsection, a violation of any requirement imposed under this title 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), each of the agencies referred to in that 

subsection may exercise, for the purpose of enforcing compliance with any requirement imposed under this title any 

other authority conferred on it by law, except as provided 

in subsection (d).

 (d)Neither the Commission nor any other agency referred to 

in subsection (b) may promulgate trade regulation rules or 

other regulations with respect to the collection of debts by 

debt collectors as defined in this title.

§ 815. Reports to Congress by the Commission 

(a) Not later than one year after the effective date of this title 

and at one-year intervals thereafter, the Commission shall 

make reports to the Congress concerning the administration of its functions under this title, 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 title is being achieved and a summary of the enforcement actions taken by the Commission under section 

814 of this title. 

(b) In the exercise of its functions under this title, the Commission may obtain upon request the views of any other 

Federal agency which exercises enforcement functions 

under section 814 of this title.

15 USC 1692m

§ 814 15 USC 1692l

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§ 816 15 USC 1692n

§ 816. Relation to State laws 

This title does not annul, alter, or affect, or exempt any 

person subject to the provisions of this title 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 title, and then only to the extent of 

the inconsistency. For purposes of this section, a State law is 

not inconsistent with this title if the protection such law affords any consumer is greater than the protection provided by 

this title.

§ 817. Exemption for State regulation 

The Commission shall by regulation exempt from the 

requirements of this title 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 title, and that there is adequate provision for enforcement.

§ 818. Exception for certain bad check enforcement programs 

operated by private entities

(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 803(6), 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;

15 USC 1692p

15 USC 1692o

15 USC 1692n

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§ 818 15 USC 1692p

(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, 

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§ 818 15 USC 1692p

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;

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§ 818 15 USC 1692p

(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, United States Code), 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 3(6) of the Check Clearing for the 21st 

Century Act.

(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.

§ 819. Effective date 

This title takes effect upon the expiration of six months 

after the date of its enactment, but section 809 shall apply only 

with respect to debts for which the initial attempt to collect occurs after such effective date.

15 USC 1692 note

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Legislative Hist

House Report: No. 95-131 (Comm. on Banking, Finance, and Urban Affairs)

Senate Report: No. 95-382 (Comm. on Banking, Housing and Urban Affairs)

Congressional Record, Vol. 123 (1977)

April 4, House considered and passed H.R. 5294.

Aug. 5, Senate considered and passed amended version of 

H.R. 5294.

Sept. 8, House considered and passed Senate version.

Enactment: Public Law 95-109 (Sept. 20, 1977)

Amendments: Public Law Nos.

99-361 (July 9, 1986)

101-73 (Aug. 9, 1989)

102-242 (Dec. 19, 1991)

102-550 (Oct. 28, 1992)

104-88 (Dec. 29, 1995)

104-208 (Sept. 30, 1996)

109-351 (Oct. 13, 2006)

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Revised January 2009

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1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

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