FOR THE DEFENDANT:

RALPH M. LIST, Vice President
Rail Terminal Services, LLC

FFORD R. PERRY lll
Laner, Muchin, Dombrow, Becker, Levin & Tominberg, Ltd.
515 North State Street, Suite 2800
Chicago, Illinois 60610-4324
Tel.: (312) 467-9800
Fax: (312) 467-9479
Attorney for Defendant

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consumer report, (1) a copy of the consumer report, and (2) a description in
writing of the consumer’s rights under the FCRA, as required by Section
604(b)(3) of the FCRA, 15 U.S.C. § 1681b(b)(3);

After taking adverse action against a consumer based in whole or in part on
information contained in a consumer report, failing to provide to the consumer:
(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
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 (4) notice of the consumer’s right (A) to obtain,
under Section 612 of the FCRA, 15 U.S.C. § 1681}, 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, with a 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);
and

Failing otherwise to comply with Sections 604 and 615 of the FCRA, 15 U.S.C.

§§ 1681b and 1681m, as they may be amended from time to time.

Page 5 of 14


4. Copies of all subpoenas and other communications with law enforcement
entities or personnel, whether in written or electronic form, if such
documents bear in any respect on Defendant’s use of consumer reports for
employment purposes.

5. All records and documents necessary to demonstrate full compliance with
each provision of this Order, including but not limited to, copies of
acknowledgments of receipt of this Order, required by Paragraph VII, and
all reports submitted to the FTC pursuant to Paragraph IV.

VI. DISTRIBUTION OF ORDER

IT IS FURTHER ORDERED that, for a period of five (5) years from the date of service

of this Order, Defendant shall deliver copies of this Order as directed below:

A.

Defendant must deliver a copy of this Order to (1) all of its principals, officers,
directors, and managers; (2) all of its employees, agents, and representatives who
engage in conduct related to the subject matter of the Order; and (3) any business
entity resulting from any change in structure set forth in Subsection A of the
Section titled “Compliance Reporting.” For current personnel, delivery shall be
within five (5) days of service of this Order upon Defendant. For new personnel,
delivery shall occur prior to them assuming their responsibilities. For any
business entity resulting from any change in structure set forth in Subsection A of
the Section titled “Compliance Reporting,” delivery shall be at least ten (10) days

prior to the change in structure.

Page 10 of 14


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))

or to any violation of the FCRA.

IV. COMPLIANCE REPORTING

IT IS FURTHER ORDERED that, in order that compliance with the provisions of this

Order may be monitored:

A.

For a period of five (5) years from the date of entry of this Order, Defendant shall
notify the Commission of any changes in structure of Defendant or any business
entity that Defendant directly or indirectly controls, or has an ownership interest
in, that may affect compliance obligations arising under this Order, including but
not limited to: incorporation or other organization; a dissolution, assignment,
sale, merger, or other action; the creation or dissolution of a subsidiary, parent, or
affiliate that engages in any acts or practices subject to this Order; or a change in
the business name or address, at least thirty (30) days prior to such change,
provided that, with respect to any proposed change in the business entity about
which Defendant learns less than thirty (30) days prior to the daté such action is to
take place, Defendant shall notify the Commission as soon as is practicable after
obtaining such knowledge.

One hundred eighty (180) days after the date of entry of this Order and annually
thereafter for a period of five (5) years, Defendant shall provide a written report to

the FTC, which is true and accurate and sworn to under penalty of perjury, setting

Page 7 of 14


I. COMPLIANCE MONITORING

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

compliance with any provision of this Order,

A.

Within ten (10) days of receipt of written notice from a representative of the
Commission, Defendant shall submit additional written reports, which are true
and accurate and 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 Defendant’s possession or direct or
indirect control to inspect the business operation;
In addition, the Commission is authorized to use all other lawful means, including
but not limited to:
1. obtaining discovery from any person, without further leave of court, using
the procedures prescribed by Fed. R. Civ. P. 30, 31, 33, 34, 36, 45, and 69;
2. posing as consumer to Defendant, its employees, or any other entity
managed or controlled in whole or in part by Defendant, without the
necessity of identification or prior notice; and
Defendant shall permit representatives of the Commission to interview any
employer, consultant, independent contractor, representative, agent, or employee
who has agreed to such an interview, relating in any way to any conduct subject to

this Order. The person interviewed may have counsel present.

Provided, however, that nothing in this Order shall limit the Commission’s lawful use of

compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1, to

+

Page 6 of 14


as a consumer or supplier pursuant to Subsection B.2 of the Section titled

“Compliance Monitoring.”

V. RECORD KEEPING PROVISIONS

IT IS FURTHER ORDERED that:

A.

For a period of eight (8) years from the date of entry of this Order, Defendant and

its agents, employees, officers, corporations, and those persons in active concert

or participation with it who receive actual notice of this Order by personal service

or otherwise, are hereby restrained and enjoined from failing to create and/or

retain the following records:

1.

Files containing the names, addresses, telephone numbers, all disclosures
and authorizations made pursuant to Section 604(b)(2) of the FCRA, and
all materials provided to consumers by Defendant in connection with their
compliance with Sections 604(b)(3) and 615(a) of the FCRA.

Consumer complaints (whether received in written or electronic form,
directly, indirectly, or through any third party), and any responses to those
complaints, whether in written or electronic. form, that relate to
Defendant’s activities as alleged in the Complaint and Defendant’s
compliance with the provisions of this Order.

Copies of all training materials that relate to Defendant’s activities as
alleged in the Complaint and Defendant’s compliance with the provisions

of this Order.

Page 9 of 14


UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WASHINGTON

wtmasson TILED swnuam ENTERED
enorme LODGED revere RECEIVED

)
Yi * sys 05 209
UNITED STATES OF AMERICA, } a
Plaintiff, AY SEATTLE
} i EGE Bag,
v. )
)
RAIL TERMINAL SERVICES, LLC, ) Civil Action No.
a limited liability company, ) 1 1
Defendant. C 1 1
} 0 9 MSP
)
)

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
Attomey General by the Federal Trade Commission (“FTC” or “Commission”), is concurrently
filing its Complaint, which alleges that Defendant Rail Terminal Services, LLC (“RTS”) has
engaged in violations of the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. §§ 1681-1681x, and
in unfair or deceptive acts or practices in violation of Section 5 of the Federal Trade Commission
Act (“FTC Act”), 15 U.S.C. § 45(a). The parties have agreed to the entry of this Stipulated Final
Judgment and Order for Civil Penalties, Permanent Injunction, and Other Equitable Relief
(“Order”) to resolve all matters in dispute in this action without trial or adjudication of any issue
of law or fact herein and without Defendant admitting the truth of, or liability for, any of the

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

Page 1 of 14


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. Defendant waives any rights
that may arise under the Equal Access to Justice Act, 28 U.S.C. § 2412, as amended by Pub. L.
104-121, 110 Stat. 847, 863-64 (1996).

FOR THE UNITED STATES OF AMERICA:

TONY WEST
Assistant Attorney General
Civil Division

JEFFREY C. SULLIVAN
United States Attorney
Western District of Washington

ALS

BRIAN C.
Assistant United states Attorney
Western District of Washington
700 Stewart Street, Suite 5220
Seattle, Washington 98101
206-553-0882

EUGENE M. THIROLF
Director

KENNETH L. JOST
Deputy Director
Office of Consumer Litigation

ALAN PHELPS
Trial\Attorney

Office of Consumer Litigation
U.S. Department of Justice
PO Box 386

Washington, D.C. 20044
202-307-6154
Alan.Phelps@usdoj.gov

Page 12 of 14


B. Defendant must secure a signed and dated statement acknowledging receipt of the
Order, within thirty (30) days of delivery, from all persons receiving a copy of the
Order pursuant to this Section.
VIL. ACKNOWLEDGMENT OF RECEIPT OF ORDER
IT IS FURTHER ORDERED that Defendant, within five (5) business days of receipt of
this Order as entered by the Court, must submit to the Commission a truthful sworn statement
acknowledging receipt of this Order.
VIII. RETENTION OF JURISDICTION
IT 1S FURTHER ORDERED that this Court shall retain jurisdiction of this matter for
purposes of construction, modification, and enforcement of this Order.
IX. COSTS AND ATTORNEYS’ FEES
IT IS FURTHER ORDERED that each party shall bear its own costs and attorneys’ fees
incurred in connection with this action.
The parties hereby stipulate to the entry of the foregoing Order, which shall constitute a

final Order in this action.

IT IS SO ORDERED:

Dated this day of » 2009

UNITED STATES DISTRICT JUDGE

Page 11 of 14


forth in detail the manner and form in which it has complied and is complying
with this Order. This report shall include, but not be limited to:
1. A copy of each acknowledgment of receipt of this Order, obtained
pursuant to the Section titled “Distribution of Order;” and
2. Any other changes required to be reported under Subsection A of this
Section.
Defendant shall notify the Commission of the filing of a bankruptcy petition by
Defendant within fifteen (15) days of filing.
For the purposes of this Order, Defendant shall, unless otherwise directed by the
Commission’s authorized representatives, send by overnight courier all reports
and notifications required by this Order to the Commission, to the following
address:
Associate Director for Enforcement
Federal Trade Commission
600 Pennsylvania Avenue, N,W., Room NJ-2122
Washington, DC 20580
RE: FTC v. Rail Terminal Services LLC
Provided, that, in lieu of overnight courier, Defendant may send such reports or
notifications by first-class mail, but only if Defendant contemporaneously sends
an electronic version of such report or notification to the Commission at:
DEBrief@ftc.gov.
For purposes of the compliance reporting and monitoring required by this Order,

the Commission is authorized to communicate directly with Defendant. Provided,

however, nothing in this provision shall limit the Commission’s authority to pose

Page 8 of 14


This judgment represents a civil penalty owed to the United States Government
and is not compensation for actual pecuniary loss, and, therefore, it is not subject
to discharge under the Bankruptcy Code pursuant to 11 U.S.C. § 523(a)(7).
Defendant agrees 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 Order.

Proceedings initiated under this Part 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 Plaintiff may initiate to enforce this Order.

Defendant relinquishes all dominion, control, and title to the funds paid to the
fullest extent permitted by law. Defendant shall make no claim to or demand
return of the funds, directly or indirectly, through counsel or otherwise.

IL PROHIBITED BUSINESS ACTIVITIES

IT IS FURTHER ORDERED that Defendant and all other persons or entities within the

scope of Fed. R. Civ. P. 65, whether acting directly or through any sole proprietorship,

partnership, limited liability company, corporation, subsidiary, branch, division, or other entity,

who receive actual notice of this Order by personal service or otherwise, are hereby permanently

restrained and enjoined from the following:

When using a consumer report for employment purposes, failing to provide a
consumer to whom the consumer report relates, before taking adverse action

against the consumer based in whole or in part on information contained in the

Page 4 of 14


REASONS FOR SETTLEMENT

This statement accompanies the final order executed by defendant Rail Terminal
Services, LLC. The final order enjoins Rail Terminal Services, LLC from violating Sections 604
and 615 of the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. §§ 1681b and 1681m. The final
order requires that entry of a judgment in the amount of twenty-four thousand dollars ($24,000)
as a civil penalty be entered against defendant.

Pursuant to Section 5(m)(3) of the Federal Trade Commission Act (“FTC Act”), as
amended, 15 U.S.C. § 45(m)(3), the Commission hereby sets forth its reasons for settlement by
entry of a Stipulated Final Judgment and Order for Civil Penalties, Permanent Injunction, and
Other Equitable Relief (“final order”):

On the basis of the allegations contained in the complaint, and the statutory factors in the
FCRA and the FTC Act, the Commission believes that the civil penalty judgment of $24,000
constitutes an appropriate amount on which to base the settlement, and that the provision
enjoining defendants from violating Sections 604 and 615 of the FCRA should assure
defendant’s future compliance with the law. With the entry of the final order, the time and
expense of litigation will be avoided.

For the foregoing reasons, the Commission believes that the settlement by entry of the
attached final order is justified and well within the public interest.


2. “Adverse action,” “consumer,” “consumer report,” “consumer reporting agency,” and
“employment purposes” mean the terms as defined in Section 603 of the FCRA, 15
U.S.C.§§ 1681a, as amended.

3. Unless otherwise specified, “Defendant” means Rail Terminal Services, LLC, and its
successors and assigns.

4, “Commerce” means as defined in Section 4 of the Federal Trade Commission Act, 15
U.S.C. § 44.

ORDER
IL CIVIL PENALTY

IT IS ORDERED that Defendant shall pay to Plaintiff a civil penalty, pursuant to

Section 621(a) of the FCRA, 15 U.S.C. § 1681s(a), in the amount of Twenty-Four Thousand

Dollars ($24,000.00) as follows:

A. Defendant shall make the payment required by Paragraph I within ten (10)
business days of the date of entry of this Order by electronic fund transfer or
cashier’s check in accordance with the instructions provided by the Office of
Consumer Litigation, Civil Division, U.S. Department of Justice, Washington,
D.C. 20530, for appropriate disposition;

B. In the event of any default in payment, which default continues for ten (10)
business 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;

Page 3 of 14


THEREFORE, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED as

follows:

FINDINGS
This Court has jurisdiction over the subject matter of this case and over Defendant RTS.
Venue in this district is proper under 15US.C. § 53(b), and under 28 U.S.C. § 1391(b)-
(c), and 1395(a).
The Complaint states claims upon which relief may be granted against Defendant under
Sections 5(a)(1), 13(b), and 16(a) of the FTC Act, 15 U.S.C. §§ 45(a)(1), 53(b), and
56(a); and under Section 621(a) of the FCRA, 15 U.S.C. § 1681s(a).
Defendant makes no admission to the allegations in the Complaint, other than the
jurisdictional facts.
Defendant waives: (a) all rights to seek appellate review or otherwise challenge or contest
the validity of this Order; (b) any claim Defendant may have against the Cominission, its
employees, representatives, or agents that relate to the matter stated herein; (c) all claims
under the Equal Access to Justice Act, 28 U.S.C. § 2412, as amended by Pub. L. 104-121,
110 Stat. 847, 863-64 (1996); and (d) any rights to attorneys’ fees that may arise under
said provision of law.
Entry of this Order is in the public interest.

DEFINITIONS

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

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

Page 2 of 14


FOR THE FEDERAL TRADE COMMISSION:

ting Associate Director
ivision of Privacy and Identity Protection

M.

REBECCA E. KUEHN
Assistant Director
Division of Privacy and Identity Protection

SANDRA MCCARTHY
Attorney

MOLLY CRAWFORD

Attorney

Division of Privacy and Identity Protection
Federal Trade Conunission

Washington, D.C. 20580

Tel: (202) 326-2252

Fax (202) 326-3768

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