‘‘(2) MANNER OF NOTIFICATION.—A consumer
shall notify a consumer reporting agency under
paragraph (1)—
‘‘(A) through the notification system main-
tained by the agency under paragraph (5), or
‘‘(B) by submitting to the agency a signed
notice of election form issued by the agency for
purposes of this subparagraph.
‘‘(3) RESPONSE OF AGENCY AFTER NOTIFICA-
TION THROUGH SYSTEM.—Upon receipt of notifica-
tion of the election of a consumer under paragraph
(1) through the notification system maintained by
the agency under paragraph (5), a consumer report-
ing agency shall—
‘‘(A) inform the consumer that the election
is effective only for a 2-year period if the
consumer does not submit to the agency a
signed notice of election form issued by the
agency for purposes of paragraph (2)(B); and
‘‘(B) provide to the consumer such a form
if requested by the consumer, by not later than
5 business days after receiving the notification
through the system in the case of a request
made at the time the consumer provides notifi-
cation through the system.
‘‘(4) EFFECTIVENESS OF ELECTION.—An elec-
tion of a consumer under paragraph (1)—
‘‘(A) shall be effective with respect to a
consumer reporting agency beginning on the
date the consumer notifies the agency in ac-
cordance with paragraph (2);
‘‘(B) shall be effective with respect to a
consumer reporting agency—
‘‘(i) subject to subparagraph (C), for
the 2-year period beginning on the date the
consumer notifies the agency of the elec-
tion, in the case of an election for which a
consumer notifies the agency only in ac-
cordance with paragraph (2)(A); or
‘‘(ii) until the consumer notifies the
agency under subparagraph (C), in the
case of an election for which a consumer
notifies the agency in accordance with
paragraph (2)(B);
‘‘(C) shall not be effective after the date on
which the consumer notifies the agency,
through the notification system established by
the agency under paragraph (5), that the elec-
tion is no longer effective; and
‘‘(D) shall be effective with respect to each
affiliate of the agency.
‘‘(5) NOTIFICATION
SYSTEM, GENERALLY.—
Each consumer reporting agency which furnishes a
consumer report in connection with any credit trans-
action which is not initiated by a consumer, shall—
‘‘(A) establish and maintain a notification
system, including a toll-free telephone number,
which permits any consumer whose consumer
report is maintained by the agency to notify the
agency, with appropriate identification, of the
consumer’s election to have the consumer’s
name and address excluded from any list of
names and addresses provided by the agency for
such a transaction; and
‘‘(B) publish by not later than 365 days
after the date of the enactment of the
Consumer Reporting Reform Act of 1995, and
at least annually thereafter, in a publication of
general circulation in the area served by the
agency—
‘‘(i) a notification that information in
consumer files maintained by the agency
may be used in connection with such trans-
actions; and
‘‘(ii) the address and toll-free tele-
phone number for consumers to use to no-
tify the agency of the consumer’s election
under subparagraph (A).
Establishment and maintenance of a notification
system (including a toll-free telephone number) and
publication by a consumer reporting agency on its
own behalf and on behalf of any of its affiliates in
accordance with this paragraph is deemed to be
compliance with this paragraph by each of those af-
filiates.
‘‘(6) NOTIFICATION
SYSTEM
BY
AGENCIES
WHICH OPERATE NATIONWIDE.—Each consumer re-
porting agency which compiles and maintains files
on consumers on a nationwide basis shall establish
and maintain a notification system for purposes of
paragraph (5) jointly with other such consumer re-
porting agencies.’’.
(b) FURNISHING CONSUMER REPORTS FOR CERTAIN
DIRECT MARKETING TRANSACTIONS PROHIBITED.—Sec-
tion 604 of the Fair Credit Reporting Act (15 U.S.C.
1681b) is further amended by adding after subsection (d)
(as added by subsection (a) of this section) the following
new subsection:
‘‘(e) FURNISHING CONSUMER REPORTS FOR CER-
TAIN
DIRECT
MARKETING
TRANSACTIONS
PROHIB-
ITED.—Except as provided in subsection (a)(2) and sub-
section (c), a consumer reporting agency may not furnish
a consumer report for use for a direct marketing trans-
action which is not initiated by the consumer to whom the
report relates.’’.
(c) USE
OF INFORMATION OBTAINED FROM RE-
PORTS.—Section 604 of the Fair Credit Reporting Act (15
U.S.C. 1681b) is further amended by adding after sub-
section (e) (as added by subsection (b) of this section) the
following new subsection:
‘‘(f) CERTAIN USE OR OBTAINING OF INFORMATION
PROHIBITED.—A person shall not use or obtain a
consumer report for any purpose unless—
‘‘(1) it is obtained for a purpose for which the
consumer report is authorized to be furnished under
subsection (a); and
‘‘(2) the purpose is certified in accordance with
section 607 by a prospective user of the report
through a general or specific certification.’’.
SEC. 105. CONSUMER CONSENT REQUIRED TO FURNISH
CONSUMER REPORT CONTAINING MEDICAL
INFORMATION.
Section 604 of the Fair Credit Reporting Act (15
U.S.C. 1681b), as amended by sections 103 and 104, is
further amended by adding at the end the following:
‘‘(f) FURNISHING REPORTS CONTAINING MEDICAL
INFORMATION.—A consumer reporting agency shall not
furnish for employment purposes, or in connection with
a credit transaction, a consumer report which contains
medical information about a consumer, unless the
consumer consents to the furnishing of the report.’’.
SEC. 106. AMENDMENTS RELATING TO OBSOLETE INFOR-
MATION AND INFORMATION CONTAINED IN
CONSUMER REPORTS.
(a) REPEAL LARGE-DOLLAR EXCEPTIONS.—Section
605 of the Fair Credit Reporting Act (15 U.S.C. 1681c)
is amended—
(1) in subsection (a) by striking ‘‘(a) Except as
authorized under subsection (b), no’’ and inserting
‘‘(a) INFORMATION EXCLUDED FROM CONSUMER
REPORTS.—No’’; and
(2) by striking subsection (b).
(b) CLARIFICATION OF REPORTING PERIOD.—Sec-
tion 605 of the Fair Credit Reporting Act (15 U.S.C.
1681c), as amended by subsection (a), is further amended
by adding at the end the following new subsection:
‘‘(b) RUNNING OF REPORTING PERIOD.—(1) The 7-
year period referred to in paragraphs (4) and (6) of sub-
section (a) shall begin, with respect to any delinquent ac-
count which is placed for collection (internally or by refer-
ral to a 3d party, whichever is earlier), charged to profit
and loss, or subjected to any similar action, upon the expi-
ration of the 180-day period beginning on the date of the
commencement of the delinquency which immediately pre-
ceded the collection activity, charge to profit and loss, or
similar action.
‘‘(2) Paragraph (1) applies only to items of informa-
tion added to a consumer report on or after the date that
is 455 days after the date of the enactment of the
Consumer Reporting Reform Act of 1995.’’.
(c) ADDITIONAL INFORMATION
ON BANKRUPTCY
FILINGS REQUIRED.—Section 605 of the Fair Credit Re-
porting Act (15 U.S.C. 1681c) is further amended by add-
ing after subsection (b) (as added by subsection (b) of this
section) the following new subsection:
‘‘(c) INFORMATION REQUIRED TO BE DISCLOSED.—
Any consumer reporting agency which furnishes a
consumer report which contains information regarding
any case involving the consumer which arises under title
11, United States Code, shall include in the report an
identification of the chapter of such title 11 under which
such case arises if provided by the source of the informa-
tion. If any case arising or filed under title 11, United
States Code, is withdrawn by the consumer prior to a final
judgment, the consumer reporting agency shall include in
the report that such case or filing was withdrawn upon
receipt of documentation certifying such withdrawal.’’.
(d) INDICATION OF CLOSURE OF ACCOUNT; INDICA-
TION OF DISPUTE BY CONSUMER.—Section 605 of the
Fair Credit Reporting Act (15 U.S.C. 1681c) is further
amended by adding after subsection (c) (as added by sub-
section (c) of this section) the following new subsections:
‘‘(d) INDICATION
OF CLOSURE
OF ACCOUNT
BY
CONSUMER.—If a consumer reporting agency is notified
pursuant to section 623(a)(4) that a credit account of a
consumer was voluntarily closed by the consumer, the
agency shall indicate that fact in any consumer report that
includes information related to the account.
‘‘(e) INDICATION OF DISPUTE BY CONSUMER.—If a
consumer reporting agency is notified pursuant to section
623(a)(3) that information regarding a consumer that was
furnished to the agency is disputed by the consumer, the
agency shall indicate that fact in each consumer report
that includes the disputed information.’’.
(e) NOTATION ON CONSUMER REPORT.—Section 605
of the Fair Credit Reporting Act (15 U.S.C. 1681c) is
further amended by adding at the end the following new
subsection:
‘‘(f) CERTAIN ACCOUNT INFORMATION.—A consumer
reporting agency, upon the written request of a consumer,
and subject to the submission of appropriate documenta-
tion by the consumer, shall include with any information
regarding a failure of the consumer to make any payment
on an account of the consumer, a statement (in such form
as the Federal Trade Commission shall prescribe) that
during the period when the account in question became
due, the consumer was receiving assistance pursuant to
a declaration of a disaster by the President under the Rob-
ert T. Stafford Disaster Relief and Emergency Assistance
Act, or unemployment compensation under the laws of any
State (or, but for the exhaustion of benefits, would be enti-
tled to receive such compensation).’’.
(f) CLERICAL AMENDMENTS.—
(1) The heading for section 605 of the Fair
Credit Reporting Act (15 U.S.C. 1681c) is amended
by striking ‘‘Obsolete information’’ and insert-
ing ‘‘Requirements relating to information
contained in consumer reports’’.
(2) The table of sections at the beginning of the
Fair Credit Reporting Act (15 U.S.C. 1681a et seq.)
is amended by striking the item relating to section
605 and inserting the following:
‘‘605. Requirements relating to information contained in consumer reports.’’.
SEC. 107. AMENDMENTS RELATING TO COMPLIANCE PRO-
CEDURES.
(a) DISCLOSURE
OF
CONSUMER
REPORTS
BY
USERS.—Section 607 of the Fair Credit Reporting Act
(15 U.S.C. 1681e) is amended by adding at the end the
following new subsection:
‘‘(c) DISCLOSURE
OF
CONSUMER
REPORTS
BY
USERS ALLOWED.—A consumer reporting agency may not
prohibit a user of a consumer report furnished by the
agency on a consumer from disclosing the contents of the
report to the consumer, if adverse action against the
consumer has been taken, or is contemplated, by the user
based in whole or in part on the report.’’.
(b) NOTICE TO USERS AND PROVIDERS OF INFORMA-
TION TO ENSURE COMPLIANCE.—Section 607 of the Fair
Credit Reporting Act (15 U.S.C. 1681e) is further amend-
ed by adding after subsection (c) (as added by subsection
(a) of this section) the following new subsection:
‘‘(d) NOTICE TO USERS AND FURNISHERS OF INFOR-
MATION.—
‘‘(1) NOTICE REQUIREMENT.—A consumer re-
porting agency shall provide to any person—
‘‘(A) who regularly and in the ordinary
course of business furnishes information to the
agency with respect to any consumer; or
‘‘(B) to whom a consumer report is pro-
vided by the agency;
a notice of such person’s responsibilities under this
title.
‘‘(2) CONTENT
OF
NOTICE.—The Federal
Trade Commission shall prescribe the content of no-
tices under paragraph (1).’’.
(c) RECORD OF IDENTITY OF USERS AND PURPOSES
CERTIFIED BY USERS OF REPORTS.—Section 607 of the
Fair Credit Reporting Act (15 U.S.C. 1681e) is further
amended by adding after subsection (d) (as added by sub-
section (b) of this section) the following new subsection:
‘‘(e) PROCUREMENT OF CONSUMER REPORT FOR RE-
SALE.—
‘‘(1) DISCLOSURE.—A person may not procure
a consumer report for purposes of reselling the re-
port (or any information in the report) unless the
person discloses to the consumer reporting agency
which originally furnishes the report—
‘‘(A) the identity of the end-user of the re-
port (or information), and
‘‘(B) each permissible purpose under sec-
tion 604 for which the report is furnished to
the end-user of the report (or information).
‘‘(2) RESPONSIBILITIES
OF
PROCURERS
FOR
RESALE.—A person which procures a consumer re-
port for purposes of reselling the report (or any in-
formation in the report) shall—
‘‘(A) establish and comply with reasonable
procedures designed to ensure that the report
(or information) is resold by the person only for
a purpose for which the report may be fur-
nished under section 604, including by requir-
ing that each person to which the report (or
information) is resold and which resells or pro-
vides the report (or information) to any other
person—
‘‘(i) identifies each end user of the re-
sold report (or information);
‘‘(ii) certifies each purpose for which
the report (or information) will be used;
and
‘‘(iii) certifies that the report (or in-
formation) will be used for no other pur-
pose; and
‘‘(B) before reselling the report, make
reasonable efforts to verify the identifications
and certifications made under subparagraph
(A).’’.
SEC. 108. AMENDMENTS RELATING TO CONSUMER DISCLO-
SURES.
(a) ALL INFORMATION IN CONSUMER’S FILE RE-
QUIRED TO BE DISCLOSED.—Section 609(a)(1) of the
Fair Credit Reporting Act (15 U.S.C. 1681g(a)(1)) is
amended to read as follows:
‘‘(1) All information in the consumer’s file at
the time of the request.’’.
(b) MORE INFORMATION CONCERNING RECIPIENTS
OF REPORTS REQUIRED.—Section 609(a)(3) of the Fair
Credit Reporting Act (15 U.S.C. 1681g(a)) is amended
to read as follows:
‘‘(3)(A) Identification of each person (including
each end-user identified under section 607(e)(1))
who procured a consumer report—
‘‘(i) for employment purposes within the 2-
year period preceding the request; or
‘‘(ii) for any other purpose within the 1-
year period preceding the request.
‘‘(B) An identification of a person under sub-
paragraph (A) shall include—
‘‘(i) the name of the person or, if applica-
ble, the trade name (written in full) under
which such person conducts business; and
‘‘(ii) upon request of the consumer, the ad-
dress and telephone number of the person.’’.
(c) DISCLOSURE OF PERMISSIBLE PURPOSES.—Sec-
tion 609(a) of the Fair Credit Reporting Act (15 U.S.C.
1681g(a)) is further amended by adding at the end the
following:
‘‘(4) The permissible purpose under section
604, by category, for which each person identified
under paragraph (3) procured a consumer report.’’.
(d) INFORMATION REGARDING INQUIRIES.—Section
609(a) of the Fair Credit Reporting Act (15 U.S.C.
1681g(a)) is amended by adding after paragraph (4) (as
added by subsection (c) of this section) the following:
‘‘(5) A record of all inquiries received by the
agency in the 1-year period preceding the request
that identified the consumer in connection with a
credit transaction which was not initiated by the
consumer.’’.
(e) SUMMARY OF RIGHTS REQUIRED TO BE IN-
CLUDED WITH DISCLOSURE.—
(1) IN
GENERAL.—Section 609 of the Fair
Credit Reporting Act (15 U.S.C. 1681g) is amended
by adding at the end the following new subsection:
‘‘(c) SUMMARY OF RIGHTS REQUIRED TO BE IN-
CLUDED WITH DISCLOSURE.—
‘‘(1) SUMMARY OF RIGHTS.—A consumer re-
porting agency shall provide to a consumer, with
each written disclosure by the agency to the
consumer under this section—
‘‘(A) a written summary of all rights the
consumer has under this title; and
‘‘(B) in the case of a consumer reporting
agency that compiles and maintains files on
consumers on a nationwide basis, a toll-free
telephone number established by the agency at
which personnel are accessible to consumers
during normal business hours.
‘‘(2) SPECIFIC
ITEMS
REQUIRED
TO
BE
IN-
CLUDED.—The summary of rights required under
paragraph (1) shall include—
‘‘(A) a brief description of this title and all
rights of consumers under this title;
‘‘(B) an explanation of how the consumer
may exercise the rights of the consumer under
this title;
‘‘(C) a list of all Federal agencies respon-
sible for enforcing any provision of this title
and the address and any appropriate phone
number of each such agency, in a form that will
assist the consumer in selecting the appropriate
agency;
‘‘(D) a statement that the consumer may
have additional rights under State law and that
the consumer may wish to contact a State or
local consumer protection agency or a State at-
torney general to learn of those rights; and
‘‘(E) a statement that a consumer report-
ing agency is not required to remove accurate
derogatory information from a consumer’s file,
unless the information is outdated under sec-
tion 605 or cannot be verified.
‘‘(3) FORM OF SUMMARY OF RIGHTS.—For pur-
poses of this subsection and any disclosure by a
consumer reporting agency required under this title
with respect to consumers’ rights, the Federal Trade
Commission (after consultation with each Federal
agency referred to in section 621(b)) shall prescribe