Consumer Reporting Employment Clarification Act of 1998
PL 105-347 (S.2561), enacted 11/02/1998

112 STAT. 3208 
PUBLIC LAW 105-347—NOV. 2, 1998 
Public Law 105-347 
105th Congress 
An Act 
Nov. 2, 1998 
To amend the Fair Credit Reporting Act with respect to furnishing and using 
[S 2561] 
consumer reports for employment purposes. 
Be it enacted by the Senate and House of Representatives 
of 
Consumer 
the United States of America in Congress assembled. 
Reporting 
Employment 
SECTION 1. SHORT TITLE. 
Clarification Act 
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of 1998 
This Act may be cited as the Consumer Reporting Employment 
15 use 1601 
Clarification Act of 1998". 
note. 
SEC. 
2. 
USE 
OF 
CONSUMER 
REPORTS 
FOR 
EMPLOYMENT 
PURPOSES. 
(a) DISCLOSURE TO CONSUMER.—Section 604(b)(2) of the Fair 
Credit Reporting Act (15 U.S.C. 1681b(b)(2)) is amended to read 
as follows: 
"(2) DISCLOSURE TO CONSUMER.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), 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— 
"(i) a clear and conspicuous disclosure has been 
made in writing to the consumer at £iny time before 
the report is procured or caused to be procured, in 
a document that consists solely of the disclosure, that 
a consumer report may be obtained for employment 
purposes; and 
"(ii) the consumer has authorized in writing (which 
authorization may be made on the document referred 
to in clause (i)) the procurement of the report by that 
person. 
"(B) APPLICATION BY MAIL, TELEPHONE, COMPUTER, OR 
OTHER SIMILAR MEANS.—If a consumer described 
in 
subparagraph (C) applies for employment by mail, tele-
phone, computer, or other simileir means, at any time before 
a consumer report is procured or caused to be procured 
in connection with that application— 
"(i) the person who procures the consumer report 
on the consumer for employment purposes shall pro-
vide to the consumer, by oral, written, or electronic 
means, notice that a consumer report may be obtained 
for employment purposes, and a summary of the 
consumer's rights under section 615(a)(3); and 
"(ii) the consumer shall have consented, orally, 
in writing, or electronically to the procurement of the 
report by that person. 
PUBLIC LAW 105-347—NOV. 2, 1998 
112 STAT. 3209 
"(C) SCOPE.—Subparagraph (B) shall apply to a person 
procuring a consumer report on a consumer in connection 
with the consumer's application for employment only if— 
"(i) the consumer is applying for a position over 
which the Secretary of Transportation has the power 
to establish qualifications and maximum hours of serv-
ice pursuant to the provisions of section 31502 of title 
49, or a position subject to safety regulation by a 
State transportation agency; and 
"(ii) as of the time at which the person procures 
the report or causes the report to be procured the 
only interaction between the consumer and the person 
in connection with that employment application has 
been by mail, telephone, computer, or other similar 
means.". 
(b) 
CONDITIONS ON USE FOR ADVERSE ACTIONS.—Section 
604(b)(3) of the Fair Credit Reporting Act (15 U.S.C. 1681b(b)(3)) 
is amended to read as follows: 
"(3) CONDITIONS ON USE FOR ADVERSE ACTIONS.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), in using a consumer report for employment purposes, 
before taking any adverse action based in whole or in 
part on the report, the person intending to take such 
adverse action shall provide to the consumer to whom 
the report relates— 
"(i) a copy of the report; and 
"(ii) a description in writing of the rights of the 
consumer under this title, as prescribed by the Federal 
Trade Commission under section 609(c)(3). 
"(B) APPLICATION BY MAIL, TELEPHONE, COMPUTER, OR 
OTHER SIMILAR MEANS.— 
"(i) If a consumer described in subparagraph (C) 
applies for employment by mail, telephone, computer, 
or other similar means, and if a person who has pro-
cured a consumer report on the consumer for employ-
ment purposes takes adverse action on the employment 
application based in whole or in part on the report, 
then the person must provide to the consumer to whom 
the report relates, in lieu of the notices required under 
subparagraph (A) of this section and under section 
615(a), within 3 business days of taking such action, 
an oral, written or electronic notification— 
"(I) that adverse action has been taken based 
in whole or in part on a consumer report received 
from a consumer reporting agency; 
"(II) of the name, address and telephone num-
ber of the consumer reporting agency that fur-
nished the consumer report (including a toll-free 
telephone number established by the agency if the 
agency compiles and maintains files on consumers 
on a nationwide basis); 
"(III) that the consumer reporting agency did 
not make the decision to take the adverse action 
and is unable to provide to the consumer the spe-
cific reasons why the adverse action was taken; 
and 
112 STAT. 3210 
PUBLIC LAW 105-347—NOV. 2, 1998 
"(IV) that the consumer may, upon providing 
proper identification, request a free copy of a report 
and may dispute with the consumer reporting 
agency the accuracy or completeness of any 
information in a report. 
"(ii) If, under clause (B)(i)(IV), the consumer 
requests a copy of a consumer report from the person 
who procured the report, then, within 3 business days 
of receiving the consumer's request, together with 
proper identification, the person must send or provide 
to the consumer a copy of a report and a copy of 
the consumer's rights as prescribed by the Federal 
Trade Commission under section 609(c)(3). 
"(C) SCOPE.—Subparagraph (B) shall apply to a person 
procuring a consumer report on a consumer in connection 
with the consumer's application for employment only if— 
"(i) the consumer is appl3ring for a position over 
which the Secretary of Transportation has the power 
to establish qualifications and maximum hours of serv-
ice pursuant to the provisions of section 31502 of title 
49, or a position subject to safety regulation by a 
State transportation agency; and 
"(ii) as of the time at which the person procures 
the report or causes the report to be procured the 
only interaction between the consumer and the person 
in connection with that employment application has 
been by mail, telephone, computer, or other similar 
means. . 
SEC. 3. PROVISION OF SUMMARY OF RIGHTS. 
Section 604(b)(1)(B) of the Fair Credit Reporting Act (15 U.S.C. 
1681b(b)(l)(B)) is amended by inserting ", or has previously pro-
vided," before "a summary". 
SEC. 4. NATIONAL SECURITY INVESTIGATION CONFORMING AMEND-
MENTS. 
(a) GOVERNMENT AS END USER.—Section 609(a)(3) of the Fair 
Credit Reporting Act (15 U.S.C. 1681g(a)(3)) is amended by adding 
at the end the following: 
"(C) Subparagraph (A) does not apply if— 
"(i) the end user is an agency or department of 
the United States Government that procures the report 
from the person for purposes of determining the eligi-
bility of the consumer to whom the report relates to 
receive access or continued access to classified informa-
tion (as defined in section 604(b)(4)(E)(i)); and 
"(ii) the head of the agency or department makes 
a 
written 
finding 
as 
prescribed 
under 
section 
604(b)(4)(A).". 
(b) NATIONAL SECURITY INVESTIGATIONS.—Section 613 of the 
Fair Credit Reporting Act (15 U.S.C. 1681k) is amended— 
(1) by inserting "(a) IN GENERAL.—" before "A consumer"; 
and 
(2) by adding at the end the following: 
"(b) EXEMPTION FOR NATIONAL SECURITY INVESTIGATIONS.— 
Subsection (a) does not apply in the case of an agency or department 
of the United States Government that seeks to obtain and use 
a consumer report for emplojonent purposes, if the head of the 
PUBLIC LAW 105-347—NOV. 2, 1998 
112 STAT. 3211 
agency or department msikes a written finding as prescribed under 
section 604(bX4)(A).". 
SEC. 5. CIVIL SUITS AND JUDGMENTS. 
Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681c(a)) is amended— 
(1) in paragraph (2), by striking "Suits and Judgments 
which" and inserting "Civil suits, civil judgments, and records 
of arrest that"; 
(2) by striking paragraph (5); 
(3) in paragraph (6), by inserting ", other than records 
of convictions of crimes" after "of information"; and 
(4) by redesignating paragraph (6) as paragraph (5). 
SEC. 6. TECHNICAL AMENDMENTS. 
The Fair Credit Reporting Act (15 U.S.C. 1601 et seq.) is 
eimended— 
(1) in section 603(d)(2)(A)(iii), by striking "any communica- 
15 USC 1681a. 
tion" and inserting "communication"; 
(2) in section 603(o)(l), by striking "(d)(2)(E)" and inserting 
"(d)(2)(D)"; 
(3) in section 603(o)(4), by striking "or" at the end and 
inserting "and"; 
(4) in section 604(g), by striking "or a direct marketing 
15 USC I68lb. 
transaction"; 
(5) in section 611(a)(7), by striking "(6)(B)(iv)" and inserting 
15 USC I68ii. 
"(6)(B)(iii)"; and 
(6) in section 621(b), by striking "or (e)". 
15 USC I68ls. 
SEC. 7. EFFECTIVE DATE. 
15 USC 1681a 
The amendments made by this Act shall be deemed to have 
the same effective date as the amendments made by section 2403 
of the Consumer Credit Reporting Reform Act of 1996 (Public Law 
104-208; 110 Stat. 3009-1257). 
Approved November 2, 1998. 
LEGISLATIVE HISTORY—S. 2561: 
CONGRESSIONAL RECORD, Vol. 144 (1998): 
Oct. 6, considered and passed Senate. 
Oct. 8, considered and passed House.