‘‘(l) The term ‘firm offer of credit’ means any offer
of credit 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 cri-
teria used to select the consumer for the offer, except that
the offer may be further conditioned solely on any com-
bination of the following:
‘‘(1) The consumer being determined, based on
information in the consumer’s application for the
credit, to meet specific criteria bearing on credit-
worthiness that are established—
‘‘(A) before selection of the consumer for
the offer; and
‘‘(B) for the purpose of determining
whether to extend credit pursuant to the offer.
‘‘(2) Verification—
‘‘(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
other information bearing on the creditworthi-
ness of the consumer; or
‘‘(B) of the information in the consumer’s
application for the credit, to determine that the
consumer meets the specific criteria bearing on
creditworthiness.
‘‘(3) The consumer furnishing any collateral
that is a requirement for the extension of the credit
that was—
‘‘(A) established before selection of the
consumer for the offer of credit; and
‘‘(B) described to the consumer in the
offer of credit.’’.
(c) CREDIT TRANSACTION WHICH IS NOT INITIATED
BY THE CONSUMER.—Section 603 of the Fair Credit Re-
porting Act (15 U.S.C. 1681a) is further amended by add-
ing after subsection (l) (as added by subsection (b) of this
section) the following:
‘‘(m) The term ‘credit transaction which is not initi-
ated by the consumer’ does not include the use of a
consumer report by a person with which the consumer has
an account, for purposes of—
‘‘(1) reviewing the account; or
‘‘(2) collecting the account.’’.
(d) STATE.—Section 603 of the Fair Credit Report-
ing Act (15 U.S.C. 1681a) is further amended by adding
after subsection (m) (as added by subsection (c) of this
section) the following:
‘‘(n) The term ‘State’ means any State, the Common-
wealth of Puerto Rico, the District of Columbia, and any
territory or possession of the United States.’’.
(e) EXCLUSIONS FROM DEFINITION OF CONSUMER
REPORT.—Section 603(d) of the Fair Credit Reporting
Act (15 U.S.C. 1681a(d)) is amended in the second sen-
tence in clause (A)—
(1) by inserting ‘‘(i)’’ after ‘‘(A)’’;
(2) by inserting before the semicolon at the end
the following: ‘‘, (ii) any communication of that in-
formation among persons related by common owner-
ship or affiliated by corporate control, or (iii) any
communication of information from a credit applica-
tion by a consumer among persons related by com-
mon ownership or affiliated by corporate control if
it is clearly and conspicuously disclosed that the in-
formation may be communicated among such per-
sons and the consumer is given the opportunity,
prior to the time that the information is initially
communicated, to direct that such information not
be communicated among such persons’’;
(3) in clause (B) by striking ‘‘or’’ after the
semicolon at the end;
(4) in clause (C) by striking the period and in-
serting a semicolon; and
(5) by adding at the end the following: ‘‘or (D)
any communication of information about a consumer
between persons who are affiliated by common own-
ership or common corporate control and in connec-
tion with a credit transaction which is not initiated
by the consumer, or an insurance transaction which
is not initiated by the consumer, if either of those
persons has complied with section 615(d)(4)(B) with
respect to a consumer report from which the infor-
mation is taken and the consumer has consented to
use of the report for the transaction, or with respect
to existing customers, the consumer has not directed
in writing that the report may not be used for
the 
transaction, 
in 
accordance 
with 
section
615(d)(4)(C).’’.
(f) EXCLUSION OF CERTAIN COMMUNICATIONS BY
EMPLOYMENT
AGENCIES
FROM
DEFINITION
OF
CONSUMER REPORT.—Section 603 of the Fair Credit Re-
porting Act (15 U.S.C. 1681(a)) is further amended—
(1) in subsection (d), as amended by subsection
(e) of this section, by adding at the end the follow-
ing: ‘‘The term also does not include a communica-
tion described in subsection (o).’’; and
(2) by adding at the end the following:
‘‘(o) A communication is described in this subsection
if it is a communication—
‘‘(1) that, but for the 3rd sentence of sub-
section (d), would be an investigative consumer re-
port;
‘‘(2) that is made to a prospective employer for
the purpose of—
‘‘(A) procuring an employee for the em-
ployer, or
‘‘(B) procuring an opportunity for a natu-
ral person to work for the employer;
‘‘(3) that is made by a person that regularly
performs such procurement;
‘‘(4) that is not used by any person for any
purpose other than a purpose described in para-
graph (2) (A) or (B);
‘‘(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 communica-
tion, before the collection of any informa-
tion for the purpose of making the commu-
nication;
‘‘(ii) consents orally or in writing to
the making of the communication to a pro-
spective 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, within
3 business days after the receipt of the
consent by that person;
‘‘(B) the person that makes the commu-
nication does not, for the purpose of making
the communication, make any inquiry that if
made by a prospective employer of the
consumer who is the subject of the communica-
tion would violate any applicable Federal or
State equal employment opportunity law or reg-
ulation; and
‘‘(C) the person that makes the commu-
nication—
‘‘(i) discloses in writing to the
consumer who is the subject of the commu-
nication, within 5 business days after re-
ceiving 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 information that is acquired
solely for use in making the communica-
tion and actually used for no other purpose
need not be disclosed other than under ap-
propriate discovery procedures in the court
in which an action is brought; and
‘‘(ii) notifies the consumer that is the
subject of the communication, in writing,
of the consumer’s right to request the in-
formation described in clause (i).’’.
(g) CONSUMER REPORTING AGENCY THAT COM-
PILES
AND
MAINTAINS
FILES
ON
A
NATIONWIDE
BASIS.—Section 603 of the Fair Credit Reporting Act (15
U.S.C. 1681a) is further amended by adding after sub-
section (o) (as added by subsection (f) of this section) the
following:
‘‘(p) The term ‘consumer reporting agency that com-
piles 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 re-
ports to third parties bearing on a consumer’s credit-
worthiness, credit standing, or credit capacity, each of the
following regarding consumers residing nationwide:
‘‘(1) Public record information.
‘‘(2) Credit account information from persons
who furnish that information regularly and in the
ordinary course of business.’’.
(h) CLERICAL AMENDMENT.—Section 603(d) of the
Fair Credit Reporting Act (15 U.S.C. 1681a(d)) is
amended in the first sentence—
(1) by inserting ‘‘(1)’’ after ‘‘in whole or in part
for’’; and
(2) by striking ‘‘(1)’’ before ‘‘credit or insur-
ance’’.
SEC. 103. FURNISHING CONSUMER REPORTS; USE FOR EM-
PLOYMENT PURPOSES.
(a) FURNISHING CONSUMER REPORTS FOR BUSI-
NESS TRANSACTIONS.—Section 604 of the Fair Credit Re-
porting Act (15 U.S.C. 1681b) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before
‘‘A consumer reporting agency’’; and
(2) in subsection (a)(3) (as designated by para-
graph (1) of this subsection) by striking subpara-
graph (E) and inserting the following:
‘‘(E) otherwise has a legitimate business need
for the information—
‘‘(i) in connection with a business trans-
action that is initiated by the consumer; or
‘‘(ii) to review an account to determine
whether the consumer continues to meet the
terms of the account.’’.
(b) FURNISHING AND USING CONSUMER REPORTS
FOR EMPLOYMENT PURPOSES.—Section 604 of the Fair
Credit Reporting Act (15 U.S.C. 1681b) is further amend-
ed by adding at the end the following new subsection:
‘‘(b) CONDITIONS
FOR FURNISHING
AND USING
CONSUMER REPORTS FOR EMPLOYMENT PURPOSES.—
‘‘(1) CERTIFICATION FROM USER.—A consumer
reporting agency may furnish a consumer report for
employment purposes only if—
‘‘(A) the person who obtains such report
from the agency certifies to the agency that—
‘‘(i) the person has complied with
paragraph 
(2) 
with 
respect 
to 
the
consumer report, and the person will com-
ply with paragraph (3) with respect to the
consumer report if paragraph (3) becomes
applicable; and
‘‘(ii) information from the consumer
report will not be used in violation of any
applicable Federal or State equal employ-
ment opportunity law or regulation; and
‘‘(B) the consumer reporting agency pro-
vides with the report a summary of the consum-
er’s rights under this title, as prescribed by the
Federal 
Trade 
Commission 
under 
section
609(c)(3).
‘‘(2) DISCLOSURE
TO
CONSUMER.—A person
may not procure a consumer report, or cause a
consumer report to be procured, for employment
purposes with respect to any consumer unless—
‘‘(A) a clear and conspicuous disclosure
has been made in writing to the consumer at
any time before the report is procured or
caused to be procured, in a document that con-
sists solely of the disclosure, that a consumer
report may be obtained for employment pur-
poses; and
‘‘(B) the consumer has authorized in writ-
ing the procurement of the report by that per-
son.
‘‘(3) CONDITIONS ON USE FOR ADVERSE AC-
TIONS.—In using a consumer report for employment
purposes, before taking any adverse action based in
employment of an individual in an executive or ad-
ministrative position, only if—
‘‘(A) the employment requires or is ex-
pected to require a security clearance issued by
an agency of the United States or any State as
a condition for employment;
‘‘(B) the employment requires or is ex-
pected to require the individual to be covered by
a fidelity bond; or
‘‘(C) the employment requires or is ex-
pected to require the individual, on a regular
basis and as part of the normal duties of em-
ployment—
‘‘(i) to handle or otherwise have ac-
cess to substantial amounts of cash or
other things of value of the employer: or
‘‘(ii) to engage in any conduct or ac-
tivity with respect to which the employee
has a fiduciary duty.
‘‘(5) EXECUTIVE OR ADMINISTRATIVE POSITION
DEFINED.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (4), the term ‘executive or administrative
position’ means any position—
‘‘(i) for which compensation is on a
salary basis and not an hourly basis; and
‘‘(ii) having policy making, manage-
rial, professional, or supervisory respon-
sibilities.
‘‘(B) APPLICATION
OF
EXISTING
FIND-
INGS, ETC.—For purposes of determining under
subparagraph (A)(ii) whether a position has
policy making, managerial, professional, or su-
pervisory responsibilities, all appropriate final
administrative and judicial findings, decisions,
commentary, and orders issued under the Fed-
eral Election Campaign Act of 1971, or the reg-
ulations issued under that Act, shall apply.’’.
SEC. 104. AMENDMENTS RELATING TO USE OF CONSUMER
REPORTS FOR PRESCREENING; PROHIBITION
ON UNAUTHORIZED OR UNCERTIFIED USE OF
INFORMATION.
(a) IN GENERAL.—Section 604 of the Fair Credit
Reporting Act (15 U.S.C. 1681b), as amended by section
103, is further amended—
(1) in subsection (a) by striking ‘‘A consumer
reporting agency’’ and inserting ‘‘Subject to sub-
section (c), any consumer reporting agency’’; and
(2) by adding after subsection (b) (as added by
section 103(b)) the following new subsections:
‘‘(c) FURNISHING REPORTS IN CONNECTION WITH
CREDIT
TRANSACTIONS
NOT
INITIATED
BY
THE
CONSUMER.—
‘‘(1) IN
GENERAL.—A consumer reporting
agency may furnish a consumer report relating to
any consumer pursuant to subsection (a)(3)(A) in
connection with any credit transaction which is not
initiated by the consumer only if—
‘‘(A) the consumer authorizes the agency
to provide such report to such person; or
‘‘(B)(i) the transaction consists of a firm
offer of credit;
‘‘(ii) the consumer reporting agency has
complied with subsection (d); and
‘‘(iii) there is not in effect an election by
the consumer, made in accordance with sub-
section (d), to have the consumer’s name and
address excluded from lists of names provided
by the agency pursuant to this paragraph.
‘‘(2) 
LIMITS
ON
INFORMATION
RECEIVED
UNDER PARAGRAPH (1)(B).—A person may receive
pursuant to paragraph (1)(B) only—
‘‘(A) the name and address of a consumer;
‘‘(B) an identifier that is not unique to the
consumer and is used by the person solely for
the purpose of verifying the identity of the
consumer; and
‘‘(C) information pertaining to a consumer
that is not identified or identifiable with the
consumer.
‘‘(3) INFORMATION
REGARDING
INQUIRIES.—
Except as provided in section 609(a)(5), a consumer
reporting agency shall not furnish to any person a
record of inquiries in connection with credit trans-
actions which are not initiated by a consumer.
‘‘(d) ELECTION OF CONSUMER TO BE EXCLUDED
FROM LISTS.—
‘‘(1) IN GENERAL.—A consumer may elect to
have the consumer’s name and address excluded
from any list provided by a consumer reporting
agency in connection with a credit transaction which
is not initiated by the consumer, by notifying the
agency in accordance with paragraph (2) that the
consumer does not consent to any use of consumer
reports relating to the consumer in connection with
any credit transaction which is not initiated by the
consumer.