‘‘(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
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, except that such an opportunity to re-
spond and notice are not required if the person
takes the adverse action based on a reasonable
belief that the consumer has engaged in fraudu-
lent or criminal activity that is related to, or
that could affect, the consumer’s employment.
‘‘(4) LIMITATION
ON
PURPOSES.—Subject to
paragraph (1), a consumer reporting agency may
furnish information bearing on the creditworthiness
of a consumer, and a person may use such informa-
tion, for employment purposes that do not relate to
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.
‘‘(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 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 in
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) 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 (d) (as added by subsection (a) of this section) the
following new subsection:
‘‘(e) 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 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) 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).’’.
(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.’’.
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
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.
(f) 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.—Not later than
90 days after the date of enactment of this Act, each
consumer reporting agency shall develop a form on
which such consumer reporting agency shall make
the disclosures required under section 609(a) of the
Fair Credit Reporting Act, for the purpose of maxi-
mizing the comprehensibility and standardization of
such disclosures.
(3) GOALS.—The Federal Trade Commission
shall take appropriate action to assure that the goals
of 
comprehensibility 
and 
standardization 
are
achieved in accordance with paragraph (2).
(4) 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 a consumer’s file at a consumer reporting
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 for up to,
but for no more than, 15 additional days if the
consumer reporting agency receives information
from the consumer within that 30-day period
that is relevant to the reinvestigation.
‘‘(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 the consumer reporting agency de-
termines that the information cannot be veri-
fied.
‘‘(2) PROMPT
NOTICE
OF
DISPUTE
TO
FUR-
NISHER OF INFORMATION.—
‘‘(A) IN GENERAL.—Before the end of the
5-business-day period beginning on the date a
consumer reporting agency receives notice of a
dispute from any consumer in accordance with
paragraph (1), the agency shall provide notifi-
cation of the dispute to any person that pro-
vided any item of information in dispute, at the
address and in the manner established with the
person. The notice shall include all relevant in-
formation regarding the dispute 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 business days of
such determination, 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, which may consist of a standard-
ized form describing the general nature of
such information.
‘‘(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 notify the consumer
of the reinsertion in writing within 5 busi-
ness days after the reinsertion or, if au-
thorized by the consumer for that purpose,
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 5 business days after the date of
the reinsertion—
‘‘(I) a statement that the dis-
puted 
information 
has 
been
reinserted;
‘‘(II) 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; and
‘‘(III) 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.
‘‘(E) AUTOMATED REINVESTIGATION SYS-
TEM.—
‘‘(i) IN GENERAL.—Any consumer re-
porting agency that compiles and main-
tains files on consumers on a nationwide
basis shall implement an automated system
through which furnishers of information to
that consumer reporting agency may re-
port the results of a reinvestigation that
finds incomplete or inaccurate information
in a consumer’s file to other such
consumer reporting agencies.
‘‘(ii) NATIONWIDE
CONSUMER
RE-
PORTING AGENCIES.—A consumer report-
ing agency that compiles and maintains
files on consumers on a nationwide basis
shall report the results of a reinvestigation
initiated by a consumer under section 611
that finds in the consumer’s file informa-
tion that is incomplete or inaccurate or in-
formation that cannot be verified, to any
other consumer reporting agency that com-
piles and maintains files on consumers on
a nationwide basis and—
‘‘(I) to which a consumer report
on the consumer was provided within
the preceding 2-year period for pur-
poses of resale by that other agency;
or
‘‘(II) to which a consumer report
on the consumer was provided within
the preceding 7-year period for pur-
poses of merging that report to that
other agency’s proprietary files.
‘‘(iii) ACTION
REQUIRED
UPON
RE-
CEIPT OF REPORT.—If a consumer report-
ing agency receives a report under clause
(ii), the agency shall—
‘‘(I) change the data in its files
in accordance with the report;
‘‘(II) delete data from its propri-
etary files in accordance with the re-
port; or
‘‘(III) reinvestigate the disputed
data that is the subject of the report
in accordance with section 611, with
the source of that data.
‘‘(6) 
NOTICE
OF
RESULTS
OF
REINVESTIGATION.—
‘‘(A) IN GENERAL.—A consumer reporting
agency shall provide written notice to a
consumer of the results of a reinvestigation
under this subsection within 5 business days
after the completion of the reinvestigation, by
mail or, if authorized by the consumer for that
purpose, by other means available to the agen-
cy.
‘‘(B) CONTENTS.—As part of or in addi-
tion to the notice under subparagraph (A), a
consumer reporting agency shall provide to a
consumer in writing within the 5-day period
referred to in subparagraph (A)—
‘‘(i) a statement that the reinves-
tigation is completed;
‘‘(ii) a consumer report that is based
upon the consumer’s file as that file is re-
vised as a result of the reinvestigation;
‘‘(iii) a description or indication of
any changes made in the consumer report
as a result of those revisions to the con-
sumer’s file;
‘‘(iv) a notice that, if requested by the
consumer, a description of the procedure
used to determine the accuracy and com-
pleteness of the information shall be pro-
vided to the consumer by the agency, in-
cluding the name, business address, and
telephone number of any furnisher of in-
formation contacted in connection with
such information;
‘‘(v) a notice that the consumer has
the right to add a statement to the con-
sumer’s file disputing the accuracy or com-
pleteness of the information; and
‘‘(vi) a notice that the consumer has
the right to request under subsection (d)
that the consumer reporting agency fur-
nish notifications under that subsection.
‘‘(7) DESCRIPTION OF REINVESTIGATION PRO-
CEDURE.—A consumer reporting agency shall pro-
vide to a consumer a description referred to in para-
graph (6)(B)(iv) by not later than 15 days after re-
ceiving a request from the consumer for that de-
scription.
‘‘(8) EXPEDITED DISPUTE RESOLUTION.—If a
dispute regarding an item of information in a con-
sumer’s file at a consumer reporting agency is re-
solved in accordance with paragraph (5)(A) by the
deletion of the disputed information by not later
than 3 business days after the date on which the
agency receives notice of the dispute from the
consumer in accordance with paragraph (1)(A), then
the agency shall not be required to comply with
paragraphs (2), (6), and (7) with respect to that dis-
pute if the agency—
‘‘(A) provides prompt notice of the deletion
to the consumer by telephone;
‘‘(B) includes in that notice, or in a writ-
ten notice that accompanies a confirmation and
consumer report provided in accordance with
subparagraph (C), a statement of the consum-
er’s right to request under subsection (d) that
the agency furnish notifications under that sub-
section; and
‘‘(C) provides written confirmation of the
deletion and a copy of a consumer report on the
consumer which is based on the consumer’s file
after the deletion, within 5 business days after
making the deletion.’’.
(b) CONFORMING AMENDMENT.—Subsection (d) of
section 611 of the Fair Credit Reporting Act (15 U.S.C.
1681i(d)) is amended by striking ‘‘The consumer report-
ing agency shall clearly’’ and all that follows through the
end of the subsection.
SEC. 110. AMENDMENT RELATING TO CHARGES FOR DIS-
CLOSURE.
Section 612 of the Fair Credit Reporting Act (15
U.S.C. 1681j) is amended to read as follows:
‘‘§ 612. Charges for certain disclosures
‘‘(a) REASONABLE CHARGES ALLOWED FOR CER-
TAIN DISCLOSURES.—Except as provided in subsections
(b), (c), (d), and (e), a consumer reporting agency may
impose a reasonable charge on a consumer—
‘‘(1) for making a disclosure to the consumer
pursuant to section 609, which—
‘‘(A) shall not exceed $8; and
‘‘(B) shall be indicated to the consumer
prior to making disclosure; and
‘‘(2) for furnishing pursuant to section 611(d),
following a reinvestigation under section 611(a), a
statement, codification, or summary to a person des-
ignated by the consumer under that section after the
30-day period beginning on the date of notification
of the consumer under section 611(a)(6) or (8) with
respect to the reinvestigation, which—
‘‘(A) shall not exceed the charge that the
agency would impose on each designated recipi-
ent for a consumer report; and
‘‘(B) shall be indicated to the consumer
prior to furnishing such information.
‘‘(b) FREE CONSUMER REPORT AFTER ADVERSE
NOTICE TO CONSUMER.—Each consumer reporting agen-
cy that maintains a file on a consumer shall make all dis-
closures pursuant to section 609 without charge to the
consumer if, within 60 days after receipt by such
consumer of a notification pursuant to section 615 or of
a notification from a debt collection agency affiliated with
that consumer reporting agency stating that the consum-
er’s credit rating may be or has been adversely affected,
the consumer makes a request under section 609.
‘‘(c) FREE CONSUMER REPORT UNDER CERTAIN
OTHER
CIRCUMSTANCES.—Upon the request of the
consumer, a consumer reporting agency shall make all dis-
closures pursuant to section 609 without charge to that
consumer if the consumer certifies in writing that the
consumer—
‘‘(1) is unemployed and intends to apply for
employment in the 60-day period beginning on the
date the certification is made;
‘‘(2) is a recipient of public welfare assistance;
or
‘‘(3) has reason to believe that the file on the
consumer at the agency contains inaccurate informa-
tion due to fraud.
‘‘(d) OTHER CHARGES PROHIBITED.—A consumer
reporting agency shall not impose any charge on a
consumer for providing any notification required by this
Act or making any disclosure required by this Act, except
as authorized by subsection (a).
‘‘(e) ANNUAL CONSUMER REPORT UPON REQUEST
AT SPECIFIED CHARGE.—
‘‘(1) IN GENERAL.—Upon the written request
of a consumer, a consumer reporting agency that
maintains a file on the consumer shall make all dis-
closures pursuant to section 609 once in any 12-
month period, at the charge specified in paragraph
(2).
‘‘(2) CHARGE SPECIFIED.—The charge for dis-
closures under paragraph (1) shall be an amount
that does not exceed the lesser of—
‘‘(A) the total cost incurred by the
consumer reporting agency in making the dis-
closures; or
‘‘(B) $3.’’.
‘‘(3) provide to the consumer a written notice of
the consumer’s right—
‘‘(A) to obtain, under section 612, a free
copy of a consumer report on the consumer
from the consumer reporting agency referred to
in paragraph (2), which notice shall include an
indication of the 60-day period under that sec-
tion for obtaining such a copy; and
‘‘(B) to dispute, under section 611, with a
consumer reporting agency the accuracy or
completeness of any information in a consumer
report furnished by the agency.’’.
(b) DUTIES OF USERS WHO MAKE CERTAIN CREDIT
SOLICITATIONS.—Section 615 of the Fair Credit Report-
ing Act (15 U.S.C. 1681m) is amended by adding at the
end the following new subsection:
‘‘(d) DUTIES OF USERS WHO MAKE WRITTEN CRED-
IT SOLICITATIONS ON THE BASIS OF INFORMATION CON-
TAINED IN CONSUMER FILES.—
‘‘(1) IN
GENERAL.—Any person who uses a
consumer report on any consumer in connection with
any credit transaction which is not initiated by the
consumer and which consists of a firm offer of credit
shall provide with any written solicitation made to
the consumer regarding the transaction a clear and
conspicuous statement that—
‘‘(A) information contained in the consum-
er’s consumer report was used in connection
with the transaction;
‘‘(B) the consumer received the offer of
credit because the consumer satisfied the cri-
teria for creditworthiness under which the
consumer was selected for the offer;
‘‘(C) if applicable, the credit may not be
extended if, after the consumer responds to the
offer, the consumer does not meet the criteria
used to select the consumer for the offer or any
applicable criteria bearing on creditworthiness
or does not furnish any required collateral;
‘‘(D) the consumer has a right to prohibit
information contained in the consumer’s file
with any consumer reporting agency from being
used in connection with any credit transaction
which is not initiated by the consumer; and
‘‘(E) the consumer may exercise the right
referred to in subparagraph (D) by notifying a
notification system established under section
604(d).
‘‘(2) DISCLOSURE
OF
ADDRESS
AND
TELE-
PHONE NUMBER.—A statement under paragraph (1)
shall include the address and toll-free telephone
number of the appropriate notification system estab-
lished under section 604(d).
‘‘(3) MAINTAINING CRITERIA ON FILE.—A per-
son who makes an offer of credit to a consumer
under a credit transaction described in paragraph
(1) shall maintain on file the criteria used to select
the consumer to receive the offer, all criteria bearing
on creditworthiness that are the basis for determin-
ing whether or not to extend credit pursuant to the
offer, and any requirement for the furnishing of col-
lateral as a condition of the extension of credit, until
the end of the 3-year period beginning on the date
on which the offer is made to the consumer.
‘‘(4) LIMITATION ON APPLICATION.—Paragraph
(1) does not apply to the use of a consumer report
by a person if—
‘‘(A) the person is affiliated by common
ownership or by common corporate control with
the person who procured the report;
‘‘(B) the person who procured the report
clearly and conspicuously disclosed to the
consumer to whom the report relates, before the
report is provided to the person using the re-
port, that the report might be provided to and
used by other persons who are affiliated in the
manner described in subparagraph (A) to the
person who procured the report; and
‘‘(C) the provision and use of the report
is—
‘‘(i) consented to by the consumer in
writing, or
‘‘(ii) with respect to existing cus-
tomers, the consumer has been afforded
the opportunity to direct in writing that
the report may not be provided to or used
by persons who are affiliated in the man-
ner described in subparagraph (A) and has
not done so.
‘‘(5) AUTHORITY OF FEDERAL AGENCIES RE-
GARDING
UNFAIR
OR
DECEPTIVE
ACTS
OR
PRAC-
TICES NOT AFFECTED.—This title is not intended to
affect the authority of any Federal agency to enforce
a prohibition against unfair or deceptive acts or
practices, including the making of false or mislead-
ing statements in connection with credit transactions
not initiated by the consumer.’’.
(c) DUTIES OF PERSON TAKING CERTAIN ACTIONS
BASED ON INFORMATION PROVIDED BY AFFILIATE.—
Section 615 of the Fair Credit Reporting Act (15 U.S.C.
1681m) is further amended by adding after subsection (d),
as added by subsection (b) of this section, the following
new subsection:
‘‘(e) DUTIES OF PERSON TAKING CERTAIN ACTIONS
BASED ON INFORMATION PROVIDED BY AFFILIATE.—
‘‘(1) DUTIES, GENERALLY.—If a person takes
an action described in paragraph (2) with respect to
a consumer based in whole or in part on information
described in paragraph (3), the person shall—
‘‘(A) notify the consumer in writing of the
action, including a statement that the consumer
may obtain the information in accordance with
subparagraph (B) and may contact the toll-free
telephone number required by subparagraph
(C);
‘‘(B) upon a written request from the
consumer received within 60 days after trans-
mittal of the notice required by subparagraph
(A), disclose to the consumer in writing the na-
ture of the information upon which the action
is based by not later than 30 days after receipt
of the request; and
‘‘(C) make available a toll-free telephone
number at which personnel are available to
communicate with the consumer regarding the
action during normal business hours.
‘‘(2) ACTION DESCRIBED.—An action referred
to in paragraph (1) is—
‘‘(A) an adverse action described in section
603(k)(1)(A) taken in connection with a trans-
action initiated by the consumer, or any adverse
action described in section 603(k)(1) (B) or
(C);
‘‘(B) a denial of any other transaction ini-
tiated by the consumer for personal, family, or
household purposes; or
‘‘(C) an increase in any charge for a trans-
action described in subparagraph (B).
‘‘(3) INFORMATION
DESCRIBED.—Information
referred to in paragraph (1)—
‘‘(A) except as provided in subparagraph
(B), is information that—
‘‘(i) is furnished to the person taking
the action by a person related by common
ownership or affiliated by common cor-
porate control to the person taking the ac-
tion; and
‘‘(A) may bring an action to enjoin such
violation in any appropriate United States dis-
trict court or in any other court of competent
jurisdiction;
‘‘(B) subject to paragraph (5), may bring
an action on behalf of its residents to recover—
‘‘(i) damages for which the person is
liable to such residents under sections 616
and 617 as a result of the violation;
‘‘(ii) in the case of a violation of sec-
tion 623(a), damages for which the person
would, but for section 623(c), be liable to
such residents as a result of the violation;
or
‘‘(iii) damages of not more than
$1,000 for each willful or negligent viola-
tion; and
‘‘(C) in the case of any successful action
under subparagraph (A) or (B), shall be award-
ed the costs of the action and reasonable attor-
ney fees as determined by the court.
‘‘(2) RIGHTS OF FEDERAL REGULATORS.—The
State shall serve prior written notice of any such ac-
tion upon the Federal Trade Commission or the ap-
propriate Federal regulator determined under sub-
section (b) and provide the Commission or appro-
priate Federal regulator with a copy of its com-
plaint, except in any case where such prior notice is
not feasible, in which case the State shall serve such
notice immediately upon instituting such action. The
Federal Trade Commission or appropriate Federal
regulator shall have the right (A) to intervene in the
action, (B) upon so intervening, to be heard on all
matters arising therein, (C) to remove the action to
the appropriate United States district court, and (D)
to file petitions for appeal.
‘‘(3) INVESTIGATORY
POWERS.—For purposes
of bringing any action under this subsection, nothing
in this subsection shall prevent the chief law enforce-
ment officer, or an official or agency designated by
a State, from exercising the powers conferred on the
chief law enforcement officer or such official by the
laws of such State to conduct investigations or to
administer oaths or affirmations or to compel the at-
tendance of witnesses or the production of documen-
tary and other evidence.
‘‘(4) LIMITATION
ON
STATE
ACTION
WHILE
FEDERAL ACTION PENDING.—Whenever the Federal
Trade Commission or the appropriate Federal regu-
lator has instituted a civil action or an administra-