Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 1 of 37

IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF COLUMBIA 

UNITED STATES OF AMERICA, 

Plaintiff, 

v. 

CERTEGY CHECK SERVICES, INC., a 

Delaware corporation, 

Defendant. 

Civil Action No. 

STIPULATED FINAL JUDGMENT AND ORDER FOR CIVIL PENALTIES, 

PERMANENT INJUNCTION, AND OTHER EQUITABLE RELIEF 

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

Attorney General by the Federal Trade Commission ("FTC" or "Commission"), filed its 

complaint for a permanent injunction, civil penalties, and other equitable relief, pursuant to 

Sections 5(a), 5(m)(1)(A), 13(b), 16(a)(1), and 19 ofthe Federal Trade Commission Act ("FTC 

Act"), 15 U.S.C. §§ 45(a), 45(m)(l)(A), 53(b), 56(a)(1), and 57b; and section 621(a) ofthe Fair 

Credit Reporting Act ("FCRA"), 15 U.S.C. § 1681s(a). Defendant has been represented by the /~/ 

attorney whose name appears hereafter. Defendant has waived service of the Summons and 

Complaint. Plaintiff and Defendant stipulate to the entry of this Stipulated Final Judgment and 

Order for Civil Penalties, Pennanent Injunction, and Other Equitable Relief ("Order") to resolve 

all matters in dispute in this action between them. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 

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2. The Complaint states claims upon which relief may be granted against Certegy, a 

consumer reporting agency ("CRA"), under the FTC Act, 15 U.S.C. §§ 45(a) and 57b; sections 

607(b), 611 (et seq.), and 612(a)(2) of the FCRA, 15 U.S.C. §§ 1681e(b), 1681i (et seq.), and 

1681j (a)(2), as amended by sections 211 and 312 of the Fair and Accurate Credit Transactions 

Act of2003, Pub. L. No. 108-159, 117 Stat. 1952 (2003) and by sections 1061 and 1088 ofthe 

Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub.L. 111-203, 124 Stat. 1376 

(2010) (codified in scattered sections of 12 U.S.C.); and the streamlined process for requesting 

annual file disclosures from nationwide specialty consumer reporting agencies, 16 C.F .R. § 

610.3, recodified at 12 C.P.R.§ 1022.137; and the reasonable policies and procedures 

concerning the accuracy and integrity of furnished information, 16 C.P.R. § 660.3, recodified at 

12 C.P.R.§ 1022.42. 

3. Defendant neither admits nor denies any of the allegations in the Complaint, 

except as specifically stated in this Order. Only for purposes of this action, Defendant admits the 

facts necessary to establish jurisdiction. 

4. The parties waive all rights to appeal or otherwise challenge or contest the 

validity ofthis Order. 

5. Defendant waives any claim it may have against the Commission, its employees, 

representatives, or agents that relate to the matter stated herein. 

6. Plaintiff and Defendant, by and through their counsel, have agreed that the entry 

of this Order resolves all matters of dispute between them arising from the Complaint in this 

action, up to the date of entry of this Order. 

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7. Defendant waives any claim it may have under the Equal Access to Justice Act, 

28 U.S.C. § 2412, concerning the prosecution of this action through the date of this Order, and 

Defendant agrees to bear its own costs and attorneys' fees. 

8. Entry ofthis Order is in the public interest. 

DEFINITIONS 

For the purpose of this Order: 

1. "Defendant" shall mean Certegy Check Services, Inc. ("Certegy"), its operating 

companies, and its successors and assigns. 

2. The definitions set forth in the FCRA, 15 U.S.C. § 1681a, et seq., shall apply, 

including but not limited to: 

a. "Person" shall mean any individual, partnership, corporation, trust, estate, 

cooperative, association, government or governmental subdivision or agency, or 

other entity. 

b. "Consumer" shall mean an individual. 

c. "Consumer Report" shall mean any written, oral, or other communication of any 

information by a CRA 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 (1) 

credit or insurance to be used primarily for personal, family, or household 

purposes; (2) employment purposes; or (3) any other purpose authorized under 

section 604 ofthe FCRA, 15 U.S.C. § 1681b. For exclusions, see section 

603(d)(2) ofthe FCRA, 15 U.S.C. § 1681a(d)(2), a copy ofwhich is attached as 

Exhibit 1. 

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d. "Consumer Reporting Agency" or "CRA" shall mean 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. 

e. "File," when used in connection with information on any consumer, shall mean all 

of the information on that consumer recorded and retained by a CRA regardless of 

how the information is stored. 

f. "Nationwide specialty consumer reporting agency" shall mean a CRA 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. 

ORDER 

I. CIVIL PENALTY 

IT IS ORDERED that judgment in the amount of three million five hundred thousand 

dollars ($3,500,000) is entered in favor of Plaintiff against Defendant as a civil penalty, pursuant 

to section 621(a) ofthe FCRA, 15 U.S.C. § 1681s(a). 

Defendant is ordered to pay Plaintiff by making payment to the Treasurer ofthe United 

States of three million five hundred thousand dollars ($3,500,000) within seven (7) days of entry 

of this Order by electronic fund transfer in accordance with instructions previously provided by a 

representative of Plaintiff. 

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II. ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

A. If Defendant is in default of payment under Section I, which default continues for 

ten (1 0) days beyond the due date of payment, then the judgment amount, together with interest 

computed pursuant to 28 U.S.C. § 1961 from the date of default to the date of payment, minus 

any payments previously made, becomes immediately due. 

B. Defendant relinquishes dominion and all legal and equitable right, title, and 

interest in all funds transferred pursuant to this Order and may not seek the return of any funds. 

C. The facts as alleged in the Complaint filed in this action will be taken as true, 

without further proof, in any subsequent civil litigation filed by or on behalf of the Commission 

to enforce its rights to any payment or monetary judgment pursuant to this Order. 

III. PROHIBITED BUSINESS ACTIVITIES 

IT IS FURTHER ORDERED that Certegy, 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 Order, whether acting directly or indirectly, in connection with 

Certegy's activities as a CRA, are hereby permanently restrained and enjoined from: 

A. Failing to comply with section 607(b) ofthe FCRA, 15 U.S.C. § 1681e(b), a copy 

of which is attached as Exhibit 2, including by failing to adequately track the handling and 

resolution of consumer disputes; 

B. Failing to comply with section 611 ofthe FCRA, 15 U.S.C. § 1681i, a copy of 

which is attached as Exhibit 3, including by: 

1. Requiring the consumer to contact a third party in order to resolve a 

dispute if Certegy can obtain sufficient information itself; 

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2. Failing to complete reinvestigations within thirty days or, if Certegy 

receives information from the consumer during that thirty-day period that is relevant to 

the reinvestigation, within forty-five days; 

3. Failing to provide, before the expiration of the five-business-day period 

beginning on the date on which Certegy receives notice of a dispute from any consumer, 

notification ofthe 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 Certegy has received from the consumer; 

4. After conducting a reinvestigation of any information disputed by a 

consumer and finding that an item of information is inaccurate, incomplete, or cannot be 

verified, failing to: 

i. promptly delete or modify an item of information from the 

consumer's file, as appropriate, and 

n. promptly notify the furnisher of that information when the 

information has been modified or deleted from the consumer's file. 

5. Failing to provide written notice to a consumer, within five business days 

of making such a determination, when Certegy terminates a reinvestigation as frivolous 

or irrelevant based on the consumer's failure to provide sufficient information to 

investigate the disputed information; 

6. Failing to 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 a reinvestigation; and 

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7. Failing to provide written notice to a consumer of the results of a 

reinvestigation not later than five business days after the completion ofthe 

reinvestigation; 

C. Failing to comply with section 612(a)(2) of the FCRA, 15 U.S.C. § 1681j(a)(2) 

and 12 C.P.R.§ 1022.137, copies ofwhich are attached as Exhibits 4 and 5, including by: 

1. Failing to collect only as much personal information as is reasonably 

necessary to properly identify the consumer; and 

2. Failing to provide consumers with copies of their consumer reports within 

15 days after receipt of a request; and 

D. Failing to comply with 12 C.P.R. § 1022.42, a copy of which is attached as 

Exhibit 6, including by failing to establish and implement written policies and procedures 

regarding the accuracy and integrity of information relating to consumers that is furnished to 

CRAs. 

IV. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendant obtain acknowledgments of receipt of this 

Order: 

A. Defendant, within seven (7) days of entry of this Order, must submit to the 

Commission an acknowledgment of receipt of this Order sworn under penalty of perjury. 

B. For three (3) years after entry of this Order, for any business that Defendant is the 

majority owner or controls directly or indirectly, must deliver a copy of this Order to: (I) all 

principals, officers, directors, and LLC managers and members; (2) all employees, agents, and 

representatives who have decision-making authority with respect to the conduct related to the 

subject matter of the Order; and (3) any business entity resulting from any change in structure as 

set forth in the Section titled Compliance Reporting. Delivery must occur within seven (7) days 

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of entry of this Order for current personnel. For all others, delivery must occur before they 

assume their responsibilities. 

C. From each individual or entity to which Defendant delivered a copy of this Order, 

Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment of receipt of 

this Order. 

V. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendant make timely submissions to the 

Commission: 

A. One hundred eighty (180) days after entry of this Order, Defendant must submit a 

compliance report, sworn under penalty of perjury. Defendant must: (1) identify the primary 

physical, postal, and email address and telephone number, as designated points of contact, which 

representatives of the Commission or Plaintiff may use to communicate with Defendant; (2) 

identify all of Defendant's businesses by all of their names, telephone numbers, and physical and 

postal addresses for each primary business location, as well as their email and Internet addresses; 

(3) describe the activities of each business, including the products and services offered and the 

means of consumer reporting; ( 4) describe in detail whether and how Defendant is in compliance 

with each Section of this Order; and (5) provide a copy of each Order Acknowledgment obtained 

pursuant to this Order, unless previously submitted to the Commission. 

B. For ten (1 0) years after entry of this Order, Defendant must submit a compliance 

notice, sworn under penalty of perjury, within fourteen (14) days of any change in the following: 

(1) any designated point of contact; or (2) the structure of Defendant or any entity that Defendant 

has any ownership interest in or directly or indirectly controls that may affect compliance 

obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity 

or any subsidiary or parent that engages in any acts or practices subject to this Order. 

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C. Defendant must submit to the Commission notice of the filing of any bankruptcy 

petition, insolvency proceeding, or any similar proceeding by or against Defendant within 

fourteen (14) days of its filing. 

D. Any submission to the Commission required by this Order to be sworn under 

penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by 

concluding: "I declare under penalty of perjury under the laws of the United States of America 

that the foregoing is true and correct. Executed on: __ " and supplying the date, signatory's 

full name, title (if applicable), and signature. 

E. Unless otherwise directed by a Commission representative in writing, all 

submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or 

sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, 

Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 

Washington, DC 20580. The subject line must begin: US. v. Certegy Check Svcs, Inc. 

VI. RECORDKEEPING PROVISIONS 

IT IS FURTHER ORDERED that Defendant must create certain records for ten (10) 

years after entry of the Order, and retain each such record for five (5) years. Specifically, 

Defendant, in connection with providing consumer reports, must create and retain the following 

records: 

A. Accounting records showing the revenues from all goods or services sold, all 

costs incurred in generating those revenues, and the resulting net profit or loss; 

B. Personnel records showing, for each person providing services, whether as an 

employee or otherwise, that person's: name, addresses, and telephone numbers; job title or 

position; dates of service; and (if applicable) the reason for termination; 

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C. Consumer complaints regarding Defendant's compliance with the FCRA, whether 

received directly or indirectly, such as through a third party, and any response; and other 

consumer complaints received through a third party, and any response; 

D. Copies of all training materials and written policies and procedures that relate to 

Defendant's activities in consumer reporting or Defendant's compliance with the provisions of 

this Order; 

E. Consumer dispute files that include correspondence between customers and 

Defendant, and correspondence between Defendant and furnishers of disputed information, 

sufficient to demonstrate compliance with section 611 ofthe FCRA, 15 U.S.C. § 1681i, a copy 

of which is attached as Exhibit 3; and 

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

provision of this Order, including all submissions to the Commission. 

VII. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendant's 

compliance with this Order: 

A. Within fourteen (14) days of receipt of a written request from a representative of. 

Commission or Plaintiff, Defendant must: submit additional compliance reports or other 

requested information, which must be sworn under penalty of perjury; appear for depositions; 

and produce documents for inspection and copying. The Commission and Plaintiff are also 

authorized to obtain discovery, without further leave of court, using any of the procedures 

prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 

34, 36, 45, and 69, provided that Defendant, after attempting to resolve a dispute without court 

action and for good cause shown, may file a motion with this Court seeking an order including 

one or more of the protections set forth in Rule 26(c). 

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B. For matters concerning this Order, the Commission and Plaintiff are authorized to 

communicate directly with Defendant. Defendant must permit representatives of the 

Commission and Plaintiff to interview any employee or other person affiliated with Defendant 

who has agreed to such an interview. The person interviewed may have counsel present. 

C. The Commission and Plaintiff may use all other lawful means, including posing, 

through its representatives, as consumers, suppliers, or other individuals or entities, to Defendant 

or any individual or entity affiliated with Defendant, without the necessity of identification or 

prior notice. Nothing in this Order limits the Commission's lawful use of compulsory process, 

pursuant to sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-l. 

VIII. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 

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

IT IS SO ORDERED: 

Dated this ___ day of ________ , 2013 

UNITED STATES DISTRICT JUDGE 

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

Stipulated Order as set forth above and consent to the entry thereof. 

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FOR THE PLAINTIFF 

UNITED STATES OF AMERICA: 

STUART F. DELERY 

Assistant Attorney General 

Civil Division 

United States Department of Justice 

MAAME EWUSI-MENSAH FRIMPONG 

Deputy Assistant Attorney General 

Civil Division 

MICHAEL S. BLUME 

Director 

Consumer Protection Branch 

r:L~ ANN ENTWISTLE 

Trial Attorney 

Office of Consumer Protection Litigation 

U.S. Department of Justice 

P.O. Box 386 

Washington, D.C. 20044 

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FOR THE FEDERAL TRADE COMMISSION: 

~~~~f(tyt~) 

MANEESHA MITRAL 

Associate Director 

Division of Privacy and Identity Protection 

~( 

ROBERT SCHOSHINSKI 

Assistant Director 

Division of Privacy and Identity Protection 

Attorney 

Division of Privacy and Identity Protection 

Federal Trade Commission 

601 New Jersey Avenue, NW 

Mail Stop NJ-8100 

Washington D.C. 20001 

Tel: (202) 326-3250 

6/d;~ KEVIN H. M6R:I-AK:l<Y"'-. 

Attorney ~ 

Division of Privacy and Identity Protection 

Federal Trade Commission 

601 New Jersey Avenue, NW 

Mail Stop NJ-8100 

Washington D.C. 20001 

Tel: (202) 326-2949 

~·a~ KRISTEN ANDERSON 

Attorney 

Division of Privacy and Identity Protection 

Federal Trade Commission 

601 New Jersey Avenue, NW 

Mail Stop NJ-8100 

Washington D.C. 20001 

Tel: (202) 326-3209 

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FOR THE DEFENDANT: 

-~~ (C;&_ 

Srikanth Kothur 

President 

Certegy Check Services, Inc. 

D. 

die-~ Jeanpeta 

Attorney 

Covington & Burling LLP 

1201 Pennsylvania Avenue, NW 

Washington, DC 20004-2401 

Tel: (202) 662-5294 

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Exhibits: 

1. 

2. 

3. 

4. 

5. 

6. 

Section 603(d)(2) ofthe FCRA, 15 U.S.C. § 168-la(d)(2) 

Section 607(b) ofthe FCRA, 15 U.S.C. § 168le(b) 

Section 611 ofthe FCRA, 15 U.S.C. § 168li 

Section 612(a)(2) ofthe FCRA, 15 U.S.C. § 1681j(a)(2) 

Streamlined ·process for requesting annual file disclosures from nationwide specialty 

consumer reporting agencies, 12 C.P.R.§ 1022.137 

Reasonable policies and procedures concerning the accuracy and integrity of furnished 

information, 12 C.F.R. § 1022.42 

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Exhibit 1 

§ 603. Defmitions; rules of construction [15 U.S.C. § 1681a] 

(d) Consumer report. 

(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 h is clearly and 

conspicuously disclosed to the consumer that the information may be 

communicated among such persons and the consumer is given the 

opportunity, before the time that the information is initially 

communicated, to direct that such information not be communicated 

'~ 

among such persons; 

(B) any authorization or approval of a specific extension of credit directly or 

indirectly by the issuer of a credit card or similar device; 

(C) any report in which a person who has been requested by a third party to make a 

specit1c extensi?12._ of credit directly or indirectly to a consumer conveys his or her 

decision vvith respect to such request, if the third party advises the consumer of 

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•. 

the name and address of the person to whom the request was made, and such 

person makes the disclosures to the consumer required ooder section 615 [§ 

1681m]; or 

(D) a communication described in subsection ( o) or (x) among such persons; 

r 

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Exhibit2 

§ 607. Compliance procedures [15 U.S.C. § 168leJ 

(b) Accuracy of report. Whenever a consumer reporting agency prepares a consumer report it 

shall_ ronow reasonable procedures to assure m~'Ximum possible accuracy of the iriformation 

concerning the individual about whom the report relates. 

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Exhibit3 

§ 611. Procedure in case of disputed accuracy [15 U.S.C. § 168li] 

(a) Reinvestigations ofDisputed 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 

clirrent 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 reseJJer. 

(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 ifthe.consumer reporting agency 

receives information from th~ con~lll11er during that 30-day I_Jeriod that is 

relevant to the reinvestigation. 

(C) Limitations on extension of period to reinvestigate. Subparagraph (B) shall 

not apply to any reinvestigation in which, during the 30-day period 

described in subparagraph (A), the infom1ation that is the subject of the 

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·., . 

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 

(l)(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 reasonabl_y dete:pnines that the djspute 

by the consumer is frivolous or irrelevant, including by reason of a failure 

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by a consumer to provide sufficient information to investigate the disputed 

information. . 

(B) Notice ofdetermination. Upon making any determination in accordance· 

with subparagraph (A) that a dispute is frivolous or irrelevant, a consumer 

reporting agency shall notify the consumer of such detem1ination 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) shaH 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 

infom1ation 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-

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· ...... 

(i) promptly delete that item of information from the file ofthe 

consumer, or modify that item of information, as appropriate, 

based on the results of the reinvestigation; and 

(ii) promptly notify the furnisher of that information that the 

information has been modified or deleted from the file of the 

consumer. 

(B) Requirements Relating to Reinsertion of Previously Deleted Material 

(i) Certification of accuracy of information. If any information is · 

(ii) 

deleted from a consumer's file pursuant to subparagraph (A), the 

information may not be reinserted in the file by the consU:mer 

reporting agency tmless the person who furnishes the information 

certifies that the information is complete and accurate. 

Notice to consumer. If any information that has been deleted from I 

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 writi~g not later than 5 business days after the 

reinsertion or, if authorized by the consumer for that purpose, by 

any other means availabl.eto t?.e 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 vvTiting not later than 5 business days after the date of 

the reinsertion 

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(I) a statement that the disputed info.rmation has been 

·reinserted; 

(II) the business name and address of any furnisher of 

information contacted and the telephone number of such 

furnisher, if reasonably available, or of any furnisher of 

information that contacted the consumer reporting agency, 

in connection with the reinsertion of such information; and 

(III) a notice that the consumer has the right to add a statement 

to the consumer's file disputing the accuracy or 

completeness of the disputed information. 

(C) Procedures to prevent reappearance. A consumer reporting agency shall 

maintain reasonable procedures designed to prevent the reappearance in a 

consumer's file, and in consumer reports on the consumer, of information 

that is deleted pursuant to this paragraph (other than information that is 

reinserted in accordance with subparagraph (B)(i)). 

(D) Automated reinvestigation system. Any consumer reporting agency that 

compiles and maintains files on consumers on a nationwide basis shall 

implement an automated syst_e~ t~~ugh which furnishers of information 

to that consumer reporting agency may report the results of a 

reinvestigation that fmds incomplete or inaccurate information in a 

consumer's tile to other such consumer reporting agencies. 

( 6) Notice of Results of Reinvestigation 

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.J 

(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 ofthe 

procedure used to determine the accuracy and completeness of the 

information shall be provided to the consumer by the agency, 

including the business name and address of any furnisher ofl 

information contacted in connection vvith 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 ill1der subsection 

(d) that the consumer reporting agency furnish notifications lU1der 

:-·-.. that subsection. · 

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Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 25 of 37

···~ .~ 

(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 (l)(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 fumish notifications under that subsection; 

and 

(C) provides written contirmation of the deletion and a copy of a consumer. 

report on the consumer that i~ based onthe consumer's file after the 

deletion, not later than 5 business days after making the deletion. 

(b) Statement ofdispute. 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 vvTiting a clear summary of the dispute. 

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Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 26 of 37

(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, th~ 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 

spe<;ifically designated by the consumer who has withlli 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 Bureau shall-

(A) compile all complaints that it receives that a file of a consumer that is 

maintained by a consumer repon,:ing ~~ency described in sectio~ 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 otherwise utilized the procedures provided 

by subsection (a); and 

(B) transmit each such complaint to each consumer reporting agency involved. 

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Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 27 of 37

(2) EYclusion. Complaints received or obtained by the Bureau pursuant to its 

investigative authority under the Consumer Financial Protection Act of201 0 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 Bureau 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 Bureau 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 Bureau may prescribe regulations, as appropriate to 

implement this subsection. 

(5) Annual report. The Bureau 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 

Bureau under this subsection. 

(f) Reinvestigation Requirement Applicable to Resel1ers 

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Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 28 of 37

···~ . 

(I) &emption .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 conswner of a dispute concerning the completeness or accuracy of any 

(3) 

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 

r~sult of an act or omission of the reseller; and 

(B) (i) if 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 

iJ:lformation 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 

agen<.:;y that provided the_resel!~r with the inf01mation that is the 

subject of the dispute, using an address or a notification 

mechanism specified by the consumer reporting agency for such 

notices. 

Responsibility of consumer reporting agency to notify consumer through reseller. 

Upon the completion of a reinvestigation under this section of a dispute 

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Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 29 of 37

· ..... 

concerning the completeness or accuracy of any information in the file of a 

consmner by a consumer reporting agency that received notice of the dispute from 

a reseller under paragraph (2) -

(A) the notice by the consumer reporting agency under paragraph ( 6), (7), or 

(8) of subsection (a} 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. 

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Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 30 of 37

Exhibit 4 

§ 612. Charges for certain disclosures [15 U.S.C. § 168Ij] 

(a) Free Annual Disclosure 

(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 ). 

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Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 31 of 37

Exhibit 5 

12 C.F.R. § 1022.137. Streamlined process for requesting annual file disclosures from 

nationwide specialty consumer reporting agencies. 

(a) Streamlined process requirements. Any nationwide specialty consumer repoiiing agency 

shall have a streamlined. process for accepting and processing consumer requests for 

annual file disclosures. The streamlined process required by this part shall: 

(1) Enable consumers to request annual file disclosures by a toll-free telephone 

number that: 

(i) Provides clear and prominent instructions for requesting disclosures by 

any additional available request methods, that do not interfere with, detract 

from, contradict, or otherwise undermine the ability of consumers to 

obtain annual file disclosures through the streamlined process required by 

this part; 

(ii} Is published, in conjunction with all other published numbers for the 

nationwide specialty consumer reporting agency, in any telephone 

directory in which any telephone number for the nationwide specialty 

conswner reporting agency is published; and 

(iii) Is clearly and prominently p~sted on any Web site owned or maintained 

· by the nationwide specialty consumer reporting agency that is related to 

consumer reporting, along with instmctions for requesting disclosures by 

any additional available request methods; and 

(2) Be designed, funded, implemented, maintained, and operated in a manner that: 

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Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 32 of 37

(i) Has adequate capacity to accept requests from the reasonably anticipated 

volume of consumers contacting the nationwide specialty consumer 

reporting agency through the streamlined process, as deten:ilined in 

compliance with paragraph (b) of this section; 

(ii) Collects only as much personal information as is reasonably necessary to 

properly identify the. consumer as required under the FCRA, section 

610(a)(l), 15 U.S.C. 1681h(a)(l), and other applicable laws and 

regulations; and 

(iii) Provides clear and easily understandable information and instructions to 

consumers, including but not necessarily limited to: 

(A) Providing information on the status of the consumers request while 

the consumer is in the process of making a request; 

(B) For a Web site request method, providing access to a "help" or 

"frequently asked questions" screen, which includes more specific 

' 

information that consumers might reasonably need to order their 

file disclosure, the answers to questions that consumers might 

reasonably ask, and instructions whereby a consumer may file a 

complaint with the natio~wid~_ ~pecialty consumer reporting 

agency and with the Bureau; and 

(C) In the event that a consumer requesting a file disclosure cannot be 

properly identified in accordance with the FCRA, section 

~lO(a)(l), 15 U.S.C. 1681h(a)(l), and other applicable laws and 

, 

regulations, providing a statement that the consumers identity 

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Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 33 of 37

cannot be verified; and directions on how to complete the request, 

including what additional information or documentation will be 

required to complete the request, and how to submit such 

infonnation. 

(b) Requirement to anticipate. A nationwide specialty consumer reporting agency shall 

implement reasonable procedures to anticipate, and respond to, the volume of consumers 

who will coritact the nationwide specialty consumer reporting agency through the 

streamlined process to request, or attempt to request, file disclosures, including 

developing and implementing contingency plans to address circumstances that are 

reasonably likely to occur and that may materially and adversely impact the operation of 

the nationwide specialty consumer reporting agency, a request method, or the streamlined 

process. 

(1) The contingency plans required by this section shall include reasonable measures 

to minimize the impact of such circumstances on the operation of the streamlined 

process and on consumers contacting, or attempting to contact, the nationwide 

specialty consumer reporting agency through the streamlined process. 

(i) Such reasonable measures to minimize 1mpaqt shalT include, but are not 

necessarily limited to: 

(A) To the extent reasonably practicable under the circumstances, 

providing information to consumers on how to use another 

available request method; 

(B) To the extent reasonably practicable under the circumstances, 

:---.. 

communicating, to a consumer who attempts but is unable to make 

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Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 34 of 37

a request, the tact that a condition exists that has precluded the 

nationwide specialty consumer reporting agency from accepting all 

requests, and the period of time after which the agency is 

reasonably anticipated to be able to accept the consumers request 

for an annual file disclosure; and 

(C) Taking all reasonable steps to restore the streamlined process to 

_normal operating status as quickly as reasonably practicable 

under the circumstances. 

(ii) Measures to minimize impact may also include, as appropriate, collecting 

request information but declining to accept the request for processing until 

a reasonable later time, provided that the consumer is clearly and 

prominently informed, to· the extent reasonably practicable under the 

circumstances, of when the request will be accepted for processing. 

(2) A nationwide specialty consumer reporting agency shall not be deemed in 

violation of paragraph (a)(2)(i) of this section if the toll-free telephone number 

required by this part is unavailable to accept requests for a reasonable period of 

time for purposes of conducting maintenance on the request method, provided that 

the nationwide specialty consumer reporting agency makes other request methods 

available to consumers during such time. 

(c) High request volume and extraordinary request volume-

(1) High request volume. Provided that the nation-vvide specialty consumer reporting 

agency has implemented reac:;onable procedures developed in accordance with 

paragraph (b) ofthls section, entitled "requirement to anticipate," a nationwide 

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Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 35 of 37

'."". 

specialty consumer reporting agency shall not be deemed in violation of 

l1t 

paragraph (a)(2)(i) of this section for any period of time during which a 

strearrilined process request method· or the nationwide specialty consumer 

reporting agency experiences high request volume, ifthe nationwide specialty 

consumer reporting agency: 

. (i) Collects all consumer request information and delays accepting the request 

for processing until a reasonable later time; and 

(ii) Clearly and prominently informs the consumer of when the request will be 

accepted for processing. 

(2) Extraordinary request volume. Provided that the nationwide specialty consumer 

reporting agency has implemented reasonable procedures developed in 

accordance with paragraph (b) ofthis section, entitled ''requirement to 

anticipate,'' a nationwide specialty consumer reporting agency shall not be 

deemed in violation of Paragraph (a)(2)(i) of this section for any period of time 

during which a streamlined process request method or the nationwide specialty 

consur:oer reporting agency experiences extraordinary request volume. 

(d) Information use and disclosure. Any personally identifiable information collected from 

consumers as a result of a request forannua! file ~gsclosure, or other disclosure required 

by the FCRA, made through the streamlined process, may be used or disclosed by the 

nationwide specialty consumer reporting agency only: 

(1) To provide the annual file disclosure or other disclosure required tmder the FCRA 

requested by the consumer; 

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Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 36 of 37

. .) 

(2) To process a transaction requested by the consumer at the same time as a request 

for annual file disclosure or other disclosure; 

(3) To comply with applicable legal requirements, including those imposed by the 

FCRA and this part; and 

( 4) · To update personally identifiable information already maintained by the ····~ . 

nationwide specialty consumer reporting agency for the purpose of providing 

consumer reports, provided that the nationwide specialty consumer reporting 

agency uses and discloses the updated personally identifiable information subject 

to the same restrictions that would apply, under any applicable provision oflaw or 

regulation, to the information updated or replaced. 

(e) Requirement to· accept or redirect req?,Jests. If a consumer requests an ann~al file 

disclosure through a method other than the streamlined process established by the 

nationwide specialty consumer reporting agency in. compliance Vvith this part, a 

nationwide specialty consumer reporting agency shall: 

( 1) Accept the consumers request; or 

(2) Instruct the consumer how to make the request using the streamlined process 

required by this part. 

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Case 1:13-cv-01247 Document 2-1 Filed 08/15/13 Page 37 of 37

.. , 

Exhibit 6 

12 C.F .R. § 1 022.42. Reasonable policies and procedures concerning the accuracy and integrity 

of furnished information. 

I 

(a) Policies and procedures. Each furnisher must establish and implement reasonable written 

policies and procedures regarding the accuracy and integrity of the information relating to 

consumers that it furnishes to a consumer reporting agency. The policies and procedures 

must be appropriate to the nature, size, complexity, and scope of each furnisher's 

activities. 

' ' 

(b) Guidelines. Each furnisher must consider the guidelines in appendix E ofthis part in 

developing its policies and procedures required by this section, and incorporate those 

guidelines that are appropriate. 

(c) Reviewing and updating policies and procedures. Each furnisher must review its policies 

and procedures required by this section periodically and update them as necessary to 

ensure their continued effectiveness. 

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