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Appendix A

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

(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.

(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 
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(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;

(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
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 (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 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
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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.

(j) Definitions Relating to Child Support Obligations
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(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 
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(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.

(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

Bureau 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 
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 (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 

 (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 
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(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 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
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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 third parties bearing on a consumer’s

credit worthiness, credit standing, or credit capacity, each of the following

regarding consumers residing nationwide:
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(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
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Bureau may prescribe, by regulation.

(4) The term “identity theft report” has the meaning given that term by rule of 

the Bureau, and means, at a minimum, a report – 

(A) that alleges an identity theft;

(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 Bureau; 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
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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 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 “Bureau” means the Bureau of Consumer Financial Protection.
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 (x) 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.

(y) 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-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;
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(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 “self-regulatory 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.