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the adverse action and is unable to provide the consumer the specific reasons why the adverse
action was taken; and (4) notice of the consumer’ s right: :
(A) to obtain, under Section 612 of the FCRA, 15 U.S.C. § 1681j, within 60 days
after receiving notice of the adverse action, a free copy of the consumer report
from the consumer reporting agency from which the report was obtained; and
(B) to dispute, under Section 611 of the FCRA, 15 U-S.C, § 1681i, witha
consumer reporting agency the accuracy or completeness of any information in a
consumer report furnished by the agency,
as required by Section 615(a) of the FCRA, 15 U.S.C. § 1681m(a), as amended.
Notwithstanding the foregoing, if defendants’ obligations with respect to Section 615(2) of the
FCRA are modified as a result of a statutory or regulatory change effective after the date of this
Consent Decree, then compliance with such obligations as so modified shall constitute
compliance with Paragraph 7 of this Consent Decree.
b. Defendants shall not be held liable for a violation of Paragraph 7 of this
Consent Decree if they show by a preponderance of the evidence that at the time of the alleged
violation, defendants maintained reasonable procedures to assure compliance with the provisions
of Paragraph 7.

8. Defendants, their successors and assigna, and their officers, agents, servants,
employees and attomneys, and all persons in active concert or participation with any one or more
of them who receive actual notice of this Consent Decree by personal service or otherwise, are
hereby enjoined, directly or through any corporation, subsidiary, division or other device, from:

a. Failing to provide any applicant with respect to whom defendants have taken

Consent Decree Page 5 of 10


09/09/04 THU 14:55 FAX 202 326 3629. FEDERAL TRADE we . - a Bort

FOR THE DEFENDANTS:

SPRINT CORPORATION and
SPRINT COMMUNICATIONS COMPANY LP,

Senior Vice President

CAROLINA TELEPHONE AND TELEGRAPH COMPANY,
CENTRAL TELEPHONE COMPANY,

CENTRAL TELEPHONE COMPANY OF TEXAS,

CENTRAL TELEPHONE COMPANY OF VIRGINIA,

SPRINT MINNESOTA, INC.,

SPRINT MISSOURI, INC,,

SPRINT-FLORIDA, INCORPORATED,

THE UNITED TELEPHONE COMPANY OF PENNSYLVANIA,
UNITED TELEPHONE COMPANY OF EASTERN KANSAS,
UNITED TELEPHONE COMPANY OF INDIANA, INC.,
UNITED TELEPHONE COMPANY OF KANSAS,

UNITED TELEPHONE COMPANY OF NEW JERSEY, INC.,
UNITED TELEPHONE COMPANY OF OHIO,

UNITED TELEPHONE COMPANY OF SOUTHCENTRAL KANSAS,
UNITED TELEPHONE COMPANY OF TEXAS, INC.,

UNITED TELEPHONE COMPANY OF THE CAROLINAS,
UNITED TELEPHONE COMPANY OF THE NORTHWEST,
UNITED TELEPHONE COMPANY OF THE WEST, and
UNITED TELEPHONE-SOUTHEAST, INC.”

Richard B. Green :
Vice President :

DBT

Jodie Z. Bernstein

Dana B. Rosenfeld

Bryan Cave LLP

700 Thirteenth Street, N.W.
Washington, D.C, 20005-3900
Attorneys for Defendants

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sermus-cud Wee ua nt eure FEDERAL TRADE we ate Lae ,.., M018

10. Fora period of three (3) yeats fram the date of entry of this Consent Decree,
defendants, and their successors and assigns, shell maintain and‘make available to the Federal
Trade Commission, within thirty (30) days of the receipt of a written request, business records
demonstrating compliance with the terms and provisions of this Consent Decree.

11. Fora period of five (5) years from the date of entry of this Consent Decree, ;
defendants, and their successors and assigns, shall notify the Associate Director for Financial
Practices, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580,
at least thirty (30) days prior to any change in defendants’ corporate structure or ownership that
may affect their obligations under this Consent Decree, including, but not limited to, merger,
incorporation, dissolution, assignment, or sale that results in the emergence of a sliccessor
corporation, of the creation or dissolution of 8 subsidiary or parent; provided, however, that with
respect to any proposed change in their corporate structure or ownership about which defendants
Jearn less than thirty (30) calendar days prior to the date such action is to take place, defendants
shall notify the Associate Director for Financial Practices as soon as practicable after leamming of
the proposed change.

12. Defendants are hereby required, in accordance with 31 U.S.C. § 7701, to furnish
to the Federal Trade Commission their taxpayer identifying numbers, which shell be used for
purposes of collecting and reporting on any delinquent amount arising out of such persons”
relationship with the government.

13. This Court shall retain jurisdiction of this matter for the purposes of enabling any
of the parties to this Consent Decree to apply to the Court at any time for such further order or

directives as may be necessary or appropriate for the interpretation or modification of this

Consent Decree Page 7 of 10


IDERAL TRADE
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TeqUested within 60 days of the creditor's notification; and

§ 1691(d), and Section 202.9 of ‘Regulation B,12CFR, § 202.9, as they may be

amended from time to time,

9 Defendants, and their successors and assigns, shall within thirty (30) days of the
entry of this Consent Decree, provide a copy of this Consent Decree to each of their officers,

agents, servants, employees, and attormeys having decision-making authority with Tespect to the

Consent Decree Page 6 of 10

@o17


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SEP-@9~2084 9:25 US ATTY NDFL O58 942 6448 P.19

scrzksern STEIN

Attomey

Office of Consumer Litigation
Civil Division

U.S. Department of Justice
‘Washington, D.C, 20530

FOR THE FEDERAL TRADE COMMISSION:

inte Director for Financial Practices
edu. of Consumer Protection
Federal Trade Commission

En SION
Bradley H. Blower -
Assistant Director for Financial Practices
Bureau of Consumer Protection
Federal Trade Commission

oe

Sandra Farrington, Attorn

Division of Financial Practices
Bureau of Consumer Protection
Federal Trade Commission.
‘Washington, D.C. 20580

(202) 326-3231

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. i¢
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UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF FLORIDA

TALLAHASSEE DIVISION
UNITED STATES OF AMERICA,
Plaintiff, Civil Case No, Ylodeu 3e/ RA/uxK
Vv
SPRINT CORPORATION,

SPRINT COMMUNICATIONS COMPANY L.P.,

CAROLINA TELEPHONE AND TELEGRAPH COMPANY,
CENTRAL TELEPHONE COMPANY,

CENTRAL TELEPHONE COMPANY OF TEXAS,

CENTRAL TELEPHONE COMPANY OF VIRGINIA,

SPRINT MINNESOTA, INC.,

SPRINT MISSOURI, INC.,

SPRINT-FLORIDA, INCORPORATED,

THE UNITED TELEPHONE COMPANY OF PENNSYLVANIA,
UNITED TELEPHONE COMPANY OF EASTERN KANSAS,
UNITED TELEPHONE COMPANY OF INDIANA, INC.,
UNITED TELEPHONE COMPANY OF KANSAS,

UNITED TELEPHONE COMPANY OF NEW JERSEY, INC.,
UNITED TELEPHONE COMPANY OF OHIO,

UNITED TELEPHONE COMPANY OF SOUTHCENTRAL KANSAS,
UNITED TELEPHONE COMPANY OF TEXAS, INC.,

UNITED TELEPHONE COMPANY OF THE CAROLINAS,
UNITED TELEPHONE COMPANY OF THE NORTHWEST,
UNITED TELEPHONE COMPANY OF THE WEST, and
UNITED TELEPHONE-SOUTHEBAST, INC.,

Defendants.

DECREE
WHEREAS: Plaintiff, the United States of America, has commenced this action


FEDERAL TRADE
09/09/04 THU 14:56 FAX 202 326 3629

REASONS FoR SETTLEMENT

Corporation, et al., to settle an action brought to Obtain civil Penalties and injunctive Telief for
defendants’ violations of the Fair Credit Reporting Act (FCRA”), 15 ULS.C. §§ 1681-16814,
and the Equal Credit Opportunity Act CECOA”), 15 US.C. §§ 1691-1691£, and its
implementing Regulation B,2CER. § 202.

Pursuant to Section 5(m)(3) of the Federal Trade Commission Act, as amended
(1S U.S.C. § 45(m)(3)), the Commission hereby sets forth its reasons for settlement by catry ofa
Consent Decree and injunction:

On the basis of the allegations Contained in the attached Complaint, the
Commission Jeves that the Payment of a $1,125,000 Civil penalty by Sprint
Corporation Constitutes an 3ppropriate amount on Which to base a settlement, The
amount should ensure compliance with the FCRA and the ECOA by the
defendants and otherg who might otherwise violare these laws, The injunction
that is included in the Consent Decree also constitutes an effective means to
assure the defendants’ future compliance With these laws, Additionally, with the
entry of such a Consent Decree, the time and expense Of litigation will be avoided.

For the foregoing Teasons, the Commission believes that the Settlement with Sprint
Corporation by entry of the attached Consent Decree is Justified and wel] within the public

ors

Mo22

TOTAL P.21


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Ser oreo ote CO we Row Ste oe rea

Consent Decree, for the enforcement of compliance therewith, or for the punishment of
violations thereof, or as justice may require.

JUDGMENT IS THEREFORE ENTERED in favor of plaintiff and against defendants,
pursuant to all the terms and conditions recited above,

Dated this day of , 2004,

UNITED STATES DISTRICT JUDGE
The parties, by their respective counsel, hereby consent to the terms and conditions of the
Consent Decree as set forth above and consent fo the entry thereof. Defendants waive any rights
that may arise under the Equal Access to Justice Act, 28 U.S.C. § 2412, amended by Pub, L. 104-
121, 110 Stat., 847, 863-64 (1996),
FOR THE UNITED STATES OF AMERICA

JEFFREY S. BUCHOLTZ

Acting Assistant Attorney General
Civil Division

United States Department of Justice

GREGORY ROBERT MILLER
United States Attorney
Northern District of Florida ‘

=a
Ew

Assistant United States Attorney
111 N. Adams Street, 4th Floor
Tallahassee, FL 32301-7736
(850) 942-8430

Bar No.: (go 4 SBA

EUGENE M. THIROLF
Director :
Office of Consumer Litigation

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of the FTC Act, 15 U.S.C. § 45(m)(1)(A), a civil penalty in the amount of one million one
hundred twenty-five thousand dollars ($1,125,000),

5. Defendants shall make the payment required by Paragraph 4 within seven (7)
business days of the date of entry of this Consent Decree by electronic fund transfer in
accordance with instructions provided by the Office of Consumer Litigation, Civil Division, U.S.
Department of Justice, Washington, DC 20530, for appropriate disposition.

6. In the event of any default in payment, which default continues for ten days
beyond the due date of payment, the entire unpaid penalty, together with interest, as computed
pursuant to 28 U.S.C. § 1961 from the date of default to the date of payment, shall immediately
become due and payable,

INJUNCTION

7 a. Defendants, their successors and assigns, and their officers, agents, servants,
employees and attomeys, and all persons in active concert or participation with any one or more
of them who receive actual notice of this Consent Decree by personal service or otherwise, are
hereby enjoined, directly or through any corporation, subsidiary, division or other device, from
failing to provide to a consumer who has requested, or has received, telephone service from
defendants, whenever defendants have taken adverse action with respect to that consumer that is
based in whole or in part on any information contained in a consumer report: (1) notice of the
adverse action taken; (2) 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) from which the consumer report was

obtained; (3) a staternent that the consumer reporting agency did not make the decision to take

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the terms as defined in Section 603 of the FCRA, 15 U.S.C. § 1681a, as
amended;
c “Equal Credit Opportunity Act” or “ECOA” refers to 15 U.S.C. § 1691-
1691f, as amended;
d. “Regulation B” refers to Federal Reserve Board Regulation B, 12 C.F.R.
§ 202, as amended:
e “Credit,” “applicant,” and “spplication,” mean the terms as defined in
Section 202.2 of Regulation B, 12 C.F.R. § 202.2;
f£ “Adverse action” means the term as defined in Section 603 of the FCRA,
15 U.S.C, § 1681a, and Section 202.2 of Regulation B, 12 C.F.R. § 202.2.
CIVIL. PENALTY
4. Defendants Sprint Corporation, Sprint Communications Company L,P., Carolina
Telephone and Telegraph Company, Central Telephone Company, Central Telephone Company of
Texas, Central Telephone Company of Virginia, Sprint Minnesota, Inc., Sprint Missouri, Inc.,
Sprint-Florida, Incorporated, The United Telephone Company of Pennsylvania, United Telephone
Campany of Eastern Kansas, United Telephone Company of Indiana, Inc., United Telephone
Company of Kansas, United Telephone Company of New Jersey, Inc., United Telephone Company
of Ohio, United Telephone Company of Southcentral Kansas, United Telephone Company of
Texas, Inc., United Telephone Company of the Carolinas, United Telephone Company of the
Northwest, United Telephone Company of the West, and United Telephone-Southeast, Inc., and
their successors and assigns, shall pay to plaintiff, pursuant to Section 621(a) of the FCRA, 15
U.S.C. § 1681s(a), Section 704(c) of the ECOA, 15 U.S.C, § 1691¢(0), and Section 5(m)(1)(A)

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by filing the Complaint herein; defendants have waived service of the Summons and Complaint;
defendants have waived, solely for purposes of this action, any challenges to jurisdiction over the
parties; the parties have been represented by the attomeys 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 and without defendants admitting liability or fauit for any
of the matters alleged in the Complaint;

THEREFORE, on the joint motion of 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)(1), 13(b), and 16(a) of the Federal Trade Commission Act ("FTC
Act"), 15 U.S.C. §§ 45(a}(1), 53(b) and 56(a), under the Fair Credit Reporting Act (“FCRA”),

15 U.S.C. §§ 1681-1681u, under the Equal Credit Opportunity Act (“ECOA”), 15 U.S.C,
§§ 1691-1691f, and under Federal Reserve Board Regulation B (“Regulation B”),
12 CFR. § 202.

TIO)

3, As used in this Consent Decree:

a “Fair Credit Reporting Act” or “FCRA” refers to 15 U.S.C. §§ 1681-
1681u, as amended;

b. “Consumer,” “consumer report,” and “consumer reporting agency” mean

Consent Decree Page 2 of 10