103D CONGRESS
2D SESSION
H. R. 1015
AN ACT
To amend the Fair Credit Reporting Act to assure the com-
pleteness and accuracy of consumer information main-
tained by credit reporting agencies, to better inform con-
sumers of their rights under the Act, and to improve
enforcement, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—AMENDMENTS TO FAIR
CREDIT REPORTING ACT
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Consumer Reporting
Reform Act of 1994’’.
SEC. 102. DEFINITIONS.
(a) ADVERSE ACTION.—Section 603 of the Fair
Credit Reporting Act (15 U.S.C. 1681a) is amended by
adding at the end the following new subsection:
‘‘(k) The term ‘adverse action’—
‘‘(1) has the meaning given to such term in sec-
tion 701(d)(6) of the Equal Credit Opportunity Act;
and
‘‘(2) includes—
‘‘(A) any denial of, increase in any charge
for, or reduction in the amount of, insurance
for personal, family, or household purposes
made in connection with the underwriting of in-
surance;
‘‘(B) any denial of employment or any
other decision for employment purposes which
adversely affects any current or prospective em-
ployee; and
‘‘(C) any action taken or determination
made—
‘‘(i) in connection with an application
which was made by, or a transaction which
was initiated by, any consumer; and
‘‘(ii) which is adverse to the interest
of the consumer.’’.
(b) FIRM OFFER OF CREDIT.—Section 603 of the
Fair Credit Reporting Act (15 U.S.C. 1681a) is further
amended by adding after subsection (k) (as added by sub-
section (a) of this section) the following:
‘‘(l) The term ‘firm offer of credit’—
‘‘(1) means any offer of credit to a consumer
that, except as provided in paragraph (2), will be
honored if the consumer is determined, based on in-
formation in a consumer report on the consumer, to
meet the specific criteria used to select the consumer
for the offer; and
‘‘(2) includes an offer of credit described in
paragraph (1) for which extension of credit may be
conditioned solely on any combination of the follow-
ing:
‘‘(A) The consumer being determined,
based on information in the consumer’s applica-
tion for the credit, to meet specific criteria
bearing on creditworthiness that are estab-
lished—
‘‘(i) before selection of the consumer
for the offer; and
‘‘(ii) for the purpose of determining
whether to extend credit pursuant to the
offer.
‘‘(B) Verification—
‘‘(i) that the consumer continues to
meet the specific criteria used to select the
consumer for the offer, by using informa-
tion in a consumer report on the consumer,
information in the consumer’s application
for the credit, or other information bearing
on the creditworthiness of the consumer; or
‘‘(ii) of the information in the con-
sumer’s application for the credit, to deter-
mine that the consumer meets the specific
criteria bearing on creditworthiness.
‘‘(C) The consumer furnishing any collat-
eral that is a requirement for the extension of
the credit that was—
‘‘(i) established before selection of the
consumer for the offer of credit; and
‘‘(ii) 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 (I) with the
application that the information may be commu-
nicated among such persons and the consumer con-
sents, or (II) with respect to existing customers, at
any time prior to the time that the information is
initially communicated, that such information may
be communicated among such persons and the
consumer is given the opportunity, prior to the time
that the information is initially communicated, to di-
rect in writing that such information not be commu-
nicated 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, if either of those persons has com-
plied with section 615(d)(4)(B) with respect to a
consumer report from which the information 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) COMMUNICATIONS BY EMPLOYMENT AGENCIES
EXCLUDED FROM DEFINITION OF CONSUMER REPORT.—
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) 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 amending subpara-
graph (E) to read as follows:
‘‘(E) otherwise has a legitimate business need
for the information in connection with a business
transaction that is initiated by the consumer.’’.
(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
whole or in part on the report a person shall provide
to the consumer to whom the report relates—
‘‘(A) a copy of the report;
‘‘(B) a description in writing of the con-
sumer’s rights under this title, as prescribed by
the Federal Trade Commission under section
609(c)(3); and
‘‘(C) a reasonable period (not required to
exceed 5 business days following receipt of the
report by the consumer) to respond to any in-
formation in the report that is disputed by the
consumer, and notice in writing of the oppor-
tunity for the consumer to respond in that pe-
riod.
‘‘(4) LIMITATION
ON
PURPOSES.—Subject to
paragraph (1), a consumer reporting agency may
furnish a consumer report, and a person may use a
consumer report, for employment purposes only
under the following circumstances:
‘‘(A) The employment requires or is ex-
pected to require a security clearance issued by
an agency of the United States as a condition
for employment.
‘‘(B) The employment requires or is ex-
pected to require an employee to be covered by
a fidelity bond.
‘‘(C) The employment requires or is ex-
pected to require an employee, 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.’’.
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) the consumer has not elected in ac-
cordance with subsection (d)(1) to have the con-
sumer’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 his or her name and address excluded from any
list provided by a consumer reporting agency in con-
nection with a credit transaction which is not initi-
ated by the consumer, by—
‘‘(A) notifying the agency, through the no-
tification system maintained by the agency
under paragraph (3), that the consumer does
not consent to any use of consumer reports re-
lating to the consumer in connection with any
credit transaction which is not initiated by the
consumer; and
‘‘(B) returning to the agency a signed
written notice of the election, if provided by the
agency in accordance with paragraph (2).
‘‘(2) PROVISION
OF
WRITTEN
NOTICE
TO
CONSUMER.—A consumer reporting agency shall
provide to a consumer a written notice for purposes
of paragraph (1)(B), by not later than 5 business
days after being notified of the election of the
consumer in accordance with paragraph (1)(A).
‘‘(3) NOTIFICATION SYSTEM.—Each consumer
reporting agency which furnishes a consumer report
in connection with any credit transaction 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 12 months
after the date of the enactment of the
Consumer Reporting Reform Act of 1994, 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.
‘‘(4) AGENCIES
WHICH
OPERATE
NATION-
WIDE.—Each consumer reporting agency which com-
piles and maintains files on consumers on a nation-
wide basis shall establish and maintain a notification
system for purposes of paragraph (3) jointly with
other such consumer reporting agencies.
‘‘(5) 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
later of—
‘‘(i) the date on which the consumer
notifies the agency in accordance with
paragraph (1)(A); or
‘‘(ii) the date on which the consumer
returns to the agency a signed written
notification of the election in accordance
with paragraph (1)(B), if provided by the
agency;
‘‘(B) shall not be effective after the date
on which the consumer notifies the agency
(through the system established by the agency
under paragraph (3)) that the election is no
longer effective; and
‘‘(C) shall be effective with respect to each
affiliate of the agency.’’.
(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 informa-
tion from 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.’’.
(d) FIRST
NOTIFICATIONS
BY
CONSUMERS.—A
consumer may notify a consumer reporting agency
through a notification system established and maintained
by the agency under section 604(d) of the Fair Credit Re-
porting Act, as amended by subsection (a), on or after
the date which is 455 days after the date of the enactment
of this Act.
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:
‘‘(g) 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 1994.’’.
(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) PROHIBITION ON MAINTAINING OR FURNISHING
CERTAIN ACCOUNT INFORMATION.—
(1) IN
GENERAL.—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.—
‘‘(1) EXCLUSION FROM CONSUMER REPORT.—A
consumer reporting agency shall not maintain in the
file of a consumer, or furnish a consumer report on
a consumer which contains, any information regard-
ing a failure of the consumer to make any payment
on an account of the consumer that became due in
a period during which the consumer was receiving
assistance pursuant to a declaration of an emer-
gency by the President under The Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act,
or unemployment compensation under the laws of
any State (or but for the exhaustion of benefits
would be entitled to receive such compensation), if—
‘‘(A) the consumer requests in writing that
the consumer reporting agency exclude the in-
formation from either the file or such reports;
‘‘(B) the consumer provides to the agency
appropriate documentation which demonstrates
that the consumer was receiving such assistance
or was receiving (or would so be entitled to re-
ceive) such compensation during that period;
and
‘‘(C) the account is maintained in a cur-
rent status during the 1-year period ending on
the date of the submittal of the request.
‘‘(2) 
APPROPRIATE
DOCUMENTATION.—The
Federal Trade Commission shall prescribe what con-
stitutes appropriate documentation for purposes of
paragraph (1).’’.
(g) 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 ultimate end-user
of the report (or information), and
‘‘(B) each permissible purpose under sec-
tion 604 for which the report is furnished to
the ultimate end-user of the report (or informa-
tion).
‘‘(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—
‘‘(i) identifies each prospective user of
the resold 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 ultimate 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 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) DISCLOSING THE FACTS REGARDING CHECKS
UPON WHICH ADVERSE CHARACTERIZATION IS BASED.—
Section 609(a) of the Fair Credit Reporting Act (15
U.S.C. 1681g(a)) is amended by adding after paragraph
(5) (as added by subsection (d) of this section) the follow-
ing:
‘‘(6) The dates, original payees, and amounts of
any checks upon which is based any adverse charac-
terization of the consumer included in the file at the
time of the disclosure.’’.
(f) 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, the toll-free
telephone number established by the agency
pursuant to section 607(f).
‘‘(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; and
‘‘(D) 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
the form and content of any disclosure of the rights
of consumers required under this title.’’.
(2) 
TECHNICAL
AMENDMENT.—Section
606(a)(1)(B) of the Fair Credit Reporting Act (15
U.S.C. 1681d(a)(1)(B)) is amended by inserting
‘‘and the written summary of the rights of the
consumer prepared pursuant to section 609(c)’’ be-
fore the semicolon.
(g) FORM OF DISCLOSURES.—
(1) IN GENERAL.—Subsections (a) and (b) of
section 610 of the Fair Credit Reporting Act (15
U.S.C. 1681h) are amended to read as follows:
‘‘(a) IN GENERAL.—
‘‘(1) PROPER
IDENTIFICATION.—A consumer
reporting agency shall require, as a condition of
making the disclosures required under section 609,
that the consumer furnish proper identification.
‘‘(2) DISCLOSURE IN WRITING.—Except as pro-
vided in subsection (b), the disclosures required to
be made under section 609 shall be provided under
that section in writing.
‘‘(b) OTHER FORMS OF DISCLOSURE.—
‘‘(1) 
IN
GENERAL.—If 
authorized 
by 
a
consumer, a consumer reporting agency may make
the disclosures required under 609—
‘‘(A) other than in writing; and
‘‘(B) in such form as may be—
‘‘(i) specified by the consumer in ac-
cordance with paragraph (2); and
‘‘(ii) available from the agency.
‘‘(2) FORM.—A consumer may specify pursuant
to paragraph (1) that disclosures under section 609
shall be made—
‘‘(A) in person, upon the appearance of the
consumer at the place of business of the
consumer reporting agency where disclosures
are regularly provided, during normal business
hours, and on reasonable notice;
‘‘(B) by telephone, if the consumer has
made a written request for disclosure by tele-
phone;
‘‘(C) by electronic means, if available from
the agency; or
‘‘(D) by any other reasonable means that
is available from the agency.’’.
(2) SIMPLIFIED DISCLOSURE.—Section 610 of
the Fair Credit Reporting Act (15 U.S.C. 1681h) is
amended by adding at the end the following:
‘‘(f) SIMPLIFIED DISCLOSURE.—The Federal Trade
Commission shall prescribe the form in which a consumer
reporting agency shall make the disclosures required
under section 609(a), for the purpose of maximizing the
comprehensibility and standardization of such disclo-
sures.’’.
(3) CONFORMING AMENDMENTS.—
(A) Section 609(a) of the Fair Credit Re-
porting Act (15 U.S.C. 1681h(a)) is amended
in the matter preceding paragraph (1) by strik-
ing ‘‘and proper identification of any consumer’’
and 
inserting 
‘‘and 
subject 
to 
section
610(a)(1)’’.
(B) Section 610 of the Fair Credit Report-
ing Act (15 U.S.C. 1681h) is amended in the
heading for the section by inserting ‘‘and
form’’ after ‘‘Conditions’’.
(C) The table of sections at the beginning
of the Fair Credit Reporting Act (15 U.S.C.
1681a et seq.) is amended in the item relating
to section 610 by inserting ‘‘and form’’ after
‘‘Conditions’’.
SEC. 109. AMENDMENTS RELATING TO PROCEDURES IN
CASE OF THE DISPUTED ACCURACY OF ANY
INFORMATION IN A CONSUMER’S FILE.
(a) IN GENERAL.—Section 611(a) of the Fair Credit
Reporting Act (15 U.S.C. 1681i(a)) is amended to read
as follows:
‘‘(a) REINVESTIGATIONS
OF DISPUTED INFORMA-
TION.—
‘‘(1) REINVESTIGATION REQUIRED.—
‘‘(A) IN GENERAL.—If the completeness or
accuracy of any item of information contained
in any consumer’s file at any consumer report-
ing agency is disputed by the consumer and the
consumer notifies the agency directly of such
dispute, the agency shall reinvestigate free of
charge and record the current status of the dis-
puted 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 the agency receives the notice of the dis-
pute from the consumer.
‘‘(B) 
EXTENSION
OF
PERIOD
TO
REINVESTIGATE.—Except as provided in sub-
paragraph (C), the 30-day period described in
subparagraph (A) may be extended if—
‘‘(i) the consumer reporting agency
receives information from the consumer
within that 30-day period that is relevant
to the reinvestigation; and
‘‘(ii) the consumer reporting agency
has provided clear and conspicuous notice
to the consumer, in a disclosure under sec-
tion 609(c), of the circumstances that may
cause such an extension.
The period, as extended, shall end not later
than 15 days after the last date the agency re-
ceives such information.
‘‘(C) LIMITATIONS ON EXTENSION OF PE-
RIOD TO REINVESTIGATE.—Subparagraph (B)
shall not apply to any reinvestigation in which,
in the 30-day period described in subparagraph
(A), the information that is the subject of the
reinvestigation is found to be inaccurate or in-
complete or cannot be verified.
‘‘(2) PROMPT
NOTICE
OF
DISPUTE
TO
FUR-
NISHER OF INFORMATION.—
‘‘(A) IN GENERAL.—Before the end of the
5-day period beginning on the date a consumer
reporting agency receives notice of a dispute
from any consumer in accordance with para-
graph (1), the agency shall provide notification
of the dispute to any person that provided any
item of information in dispute, at the address
and in the manner established with the person.
The notice shall include disclosure of the date
on which the consumer reporting agency re-
ceived notice of the dispute from the consumer
and all relevant information regarding the dis-
pute that the agency has received from the
consumer.
‘‘(B) PROVISION OF OTHER INFORMATION
FROM
CONSUMER.—The consumer reporting
agency shall promptly provide to the person
that provided the information in dispute all rel-
evant information regarding the dispute that is
received by the agency from the consumer after
the period referred to in subparagraph (A) and
before the end of the period referred to in para-
graph (1)(A).
‘‘(3) DETERMINATION THAT DISPUTE IS FRIVO-
LOUS OR IRRELEVANT.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), a consumer reporting agency may
terminate a reinvestigation of information dis-
puted by a consumer under that paragraph if
the agency reasonably determines that the dis-
pute by the consumer is frivolous or irrelevant,
including by reason of a failure by a consumer
to provide sufficient information to investigate
the disputed information.
‘‘(B) NOTICE OF DETERMINATION.—Upon
making any determination in accordance with
subparagraph (A) that a dispute is frivolous or
irrelevant, a consumer reporting agency shall
notify the consumer within 5 days of such de-
termination, 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) shall include—
‘‘(i) the reasons for the determination
under subparagraph (A); and
‘‘(ii) identification of any information
required to investigate the disputed infor-
mation.
‘‘(4) CONSIDERATION OF CONSUMER INFORMA-
TION.—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 infor-
mation submitted by the consumer in the period de-
scribed in paragraph (1)(A) with respect to such dis-
puted information.
‘‘(5) TREATMENT OF INACCURATE OR UNVERI-
FIABLE INFORMATION.—
‘‘(A) 
IN
GENERAL.—If, 
after 
any
reinvestigation under paragraph (1) of any in-
formation disputed by a consumer, an item of
the information is found to be inaccurate or in-
complete or cannot be verified, the consumer re-
porting agency shall promptly delete that item
of information from the consumer’s file. The in-
formation deleted shall consist solely of the in-
formation that was disputed by the consumer
and shall not include any portion of the same
item that was not disputed.
‘‘(B) 
REQUIREMENTS
RELATING
TO
REINSERTION OF PREVIOUSLY DELETED MATE-
RIAL.—
‘‘(i) CERTIFICATION OF ACCURACY OF
INFORMATION.—If any information is de-
leted from a consumer’s file pursuant to
subparagraph (A), the information may
not be reinserted in the file by the
consumer reporting agency unless the per-
son who furnishes the information certifies
that the information is complete and accu-
rate.
‘‘(ii) NOTICE TO CONSUMER.—If any
information which has been deleted from a
consumer’s file pursuant to subparagraph
(A) is reinserted in the file, the consumer
reporting agency shall promptly notify the
consumer of the reinsertion in writing or,
if authorized by the consumer for that pur-
pose, by any other means available to the
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 writing
within the 5-day period beginning on the
date of the reinsertion—
‘‘(I) a statement that the dis-
puted 
information 
has 
been
reinserted;
‘‘(II) a notice to the consumer
that if requested by the consumer the
agency shall provide to the consumer,
within 15 days after the date of the
request, the name, business address,
and telephone number of any fur-
nisher of information contacted, or of
any furnisher of information which
contacted the consumer reporting
agency, 
in 
connection 
with 
the
reinsertion of such information;
‘‘(III) 
the 
toll-free 
telephone
number of the consumer reporting
agency if the agency is required to
maintain such a number under section
607(f), or a telephone number that
the consumer can use to contact the
agency with respect to obtaining the
information described in subclause
(II); and
‘‘(IV) a notice that the consumer
has the right to add a statement to
the consumer’s file disputing the accu-
racy or completeness of the disputed
information.
‘‘(C) PROCEDURES
TO
PREVENT
RE-
APPEARANCE.—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) FREE
CONSUMER
REPORT
DURING
12-MONTH PERIOD AFTER DELETION OF INFOR-
MATION.—Upon the request of a consumer, a
consumer reporting agency shall make all dis-
closures pursuant to section 609 without charge
to that consumer at least once during the 12-
month period after the consumer receives a no-
tification under paragraph (6) or paragraph (8)
of the deletion of information that is found to
be inaccurate or cannot be verified.