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FDIC Law, Regulations, Related Acts


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6500 - FDIC Consumer Protection



§ 611.  Procedure in case of disputed accuracy

  (a)  REINVESTIGATIONS OF DISPUTED INFORMATION.--
    (1)  REINVESTIGATION REQUIRED.--
      (A)  IN GENERAL.--Subject to subsection (f), 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, or indirectly through a reseller of such dispute, the agency shall, free of charge, conduct a reasonable reinvestigation to determine whether the disputed information is accurate and record the current status of the disputed 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 on which the agency receives the notice of the dispute from the consumer, or reseller.
      (B)  EXTENSION OF PERIOD TO REINVESTIGATE.--Except as provided in subparagraph (C), the 30-day period described in subparagraph (A) may be extended for not more than 15 additional days if the consumer reporting agency receives information from the consumer during that 30-day period that is relevant to the reinvestigation.
      (C)  Limitations on extension of period to reinvestigate.--Subparagraph (B) shall not apply to any reinvestigation in which, during the 30-day period described in subparagraph (A), the information that is the subject of the reinvestigation is found to be inaccurate or incomplete or the consumer reporting agency determines that the information cannot be verified.
    (2)  Prompt notice of dispute to furnisher of information.--
      (A)  IN GENERAL.--Before the expiration of the 5-business-day period beginning on the date on which a consumer reporting agency receives notice of a dispute from any consumer or a reseller in accordance with paragraph (1), the agency shall provide notification of the dispute to any person who provided any item of information in dispute, at the address and in the manner established with the person. The notice shall include all relevant information regarding the dispute that the agency has received from the consumer or reseller.
      (B)  PROVISION OF OTHER INFORMATION.--The consumer reporting agency shall promptly provide to the person who provided the information in dispute all relevant information regarding the dispute that is received by the agency from the consumer or the reseller after the period referred to in subparagraph (A) and before the end of the period referred to in paragraph (1)(A).
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    (3)  Determination that dispute is frivolous or irrelevant.--
      (A)  IN GENERAL.--Notwithstanding paragraph (1), a consumer reporting agency may terminate a reinvestigation of information disputed by a consumer under that paragraph if the agency reasonably determines that the dispute 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 of such determination not later than 5 business days after making 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 information, which may consist of a standardized form describing the general nature of such information.
    (4)  CONSIDERATION OF CONSUMER INFORMATION.--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 information submitted by the consumer in the period described in paragraph (1)(A) with respect to such disputed information.
    (5)  Treatment of inaccurate or unverifiable information.--
      (A)  IN GENERAL.--If, after any reinvestigation under paragraph (1) of any information disputed by a consumer, an item of the information is found to be inaccurate or incomplete or cannot be verified, the consumer reporting agency shall--
        (i)  promptly delete that item of information from the file of the consumer, or modify that item of information, as appropriate, based on the results of the reinvestigation; and
        (ii)  promptly notify the furnisher of that information that the information has been modified or deleted from the file of the consumer.
      (B)  Requirements relating to reinsertion of previously deleted material.--
        (i)  CERTIFICATION OF ACCURACY OF INFORMATION.--If any information is deleted 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 person who furnishes the information certifies that the information is complete and accurate.
        (ii)  NOTICE TO CONSUMER.--If any information that 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 not later than 5 business days after the reinsertion or, if authorized 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 not later than 5 business days after the date of the reinsertion--
          (I)  a statement that the disputed information has been reinserted;
          (II)  the business name and address of any furnisher of information contacted and the telephone number of such furnisher, if reasonably available, or of any furnisher of information that 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 accuracy or completeness of the disputed information.
      (C)  PROCEDURES TO PREVENT REAPPEARANCE.--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).
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      (D)  AUTOMATED REINVESTIGATION SYSTEM.--Any consumer reporting agency that compiles and maintains files on consumers on a nationwide basis shall implement an automated system through which furnishers of information to that consumer reporting agency may report the results of a reinvestigation that finds incomplete or inaccurate information in a consumer's file to other such consumer reporting agencies.
    (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 not later than 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 agency.
      (B)  CONTENTS.--As part of, or in addition to, the notice under subparagraph (A), a consumer reporting agency shall provide to a consumer in writing before the expiration of the 5-day period referred to in subparagraph (A)--
        (i)  a statement that the reinvestigation is completed;
        (ii)  a consumer report that is based upon the consumer's file as that file is revised as a result of the reinvestigation;
        (iii)  a notice that, if requested by the consumer, a description of the procedure used to determine the accuracy and completeness of the information shall be provided to the consumer by the agency, including the business name and address of any furnisher of information contacted in connection with such information and the telephone number of such furnisher, if reasonably available;
        (iv)  a notice that the consumer has the right to add a statement to the consumer's file disputing the accuracy or completeness of the information; and
        (v)  a notice that the consumer has the right to request under subsection (d) that the consumer reporting agency furnish notifications under that subsection.
    (7)  DESCRIPTION OF REINVESTIGATION PROCEDURE.--A consumer reporting agency shall provide to a consumer a description referred to in paragraph (6)(B)(iii) by not later than 15 days after receiving a request from the consumer for that description.
    (8)  EXPEDITED DISPUTE RESOLUTION.--If a dispute regarding an item of information in a consumer's file at a consumer reporting agency is resolved 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 dispute if the agency--
      (A)  provides prompt notice of the deletion to the consumer by telephone;
      (B)  includes in that notice, or in a written notice that accompanies a confirmation and consumer report provided in accordance with subparagraph (C), a statement of the consumer's right to request under subsection (d) that the agency furnish notifications under that subsection; and
      (C)  provides written confirmation of the deletion and a copy of a consumer report on the consumer that is based on the consumer's file after the deletion, not later than 5 business days after making the deletion.
  (b)  If the reinvestigation does not resolve the dispute, the consumer may file a brief statement setting forth the nature of the dispute. The consumer reporting agency may limit such statements to not more than one hundred words if it provides the consumer with assistance in writing a clear summary of the dispute.
  (c)  Whenever a statement of a dispute is filed, unless there is reasonable grounds to believe that it is frivolous or irrelevant, the consumer reporting agency shall, in any subsequent consumer report containing the information in question, clearly note that it is disputed by the consumer and provide either the consumer's statement or a clear and accurate codification or summary thereof.
  (d)  Following any deletion of information which is found to be inaccurate or whose accuracy can no longer be verified or any notation as to disputed information, the consumer reporting agency shall, at the request of the consumer, furnish notification that the item has been deleted or the statement, codification or summary pursuant to subsection (b) or (c) to any person specifically designated by the consumer who has within two years prior thereto received a consumer report for employment purposes, or within six months prior thereto
{{4-30-04 p.6610.22}}received a consumer report for any other purpose, which contained the deleted or disputed information.
  (e)  TREATMENT OF COMPLAINTS AND REPORT TO CONGRESS.--
    (1)  IN GENERAL.--The Commission shall--
      (A)  compile all complaints that it receives that a file of a consumer that is maintained by a consumer reporting agency described in section 603(p) contains incomplete or inaccurate information, with respect to which, the consumer appears to have disputed the completeness or accuracy with the consumer reporting agency or otherwise utilized the procedures provided by subsection (a); and
      (B)  transmit each such complaint to each consumer reporting agency involved.
    (2)  EXCLUSION.--Complaints received or obtained by the Commission pursuant to its investigative authority under the Federal Trade Commission Act shall not be subject to paragraph (1).
    (3)  AGENCY RESPONSIBILITIES.--Each consumer reporting agency described in section 603(p) that receives a complaint transmitted by the Commission pursuant to paragraph (1) shall--
      (A)  review each such complaint to determine whether all legal obligations imposed on the consumer reporting agency under this title (including any obligation imposed by an applicable court or administrative order) have been met with respect to the subject matter of the complaint;
      (B)  provide reports on a regular basis to the Commission regarding the determinations of and actions taken by the consumer reporting agency, if any, in connection with its review of such complaints; and
      (C)  maintain, for a reasonable time period, records regarding the disposition of each such complaint that is sufficient to demonstrate compliance with this subsection.
    (4)  RULEMAKING AUTHORITY.--The Commission may prescribe regulations, as appropriate to implement this subsection.
    (5)  ANNUAL REPORT.--The Commission shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives an annual report regarding information gathered by the Commission under this subsection.
  (f)  REINVESTIGATION REQUIREMENT APPLICABLE TO RESELLERS.--
    (1)  Exemption from general reinvestigation requirement.--Except as provided in paragraph (2), a reseller shall be exempt from the requirements of this section.
    (2)  Action required upon receiving notice of a dispute.--If a reseller receives a notice from a consumer of a dispute concerning the completeness or accuracy of any item of information contained in a consumer report on such consumer produced by the reseller, the reseller shall, within 5 business days of receiving the notice, and free of charge--
      (A)  determine whether the item of information is incomplete or inaccurate as a result of an act or omission of the reseller; and
      (B)  if--
        (i)  the reseller determines that the item of information is incomplete or inaccurate as a result of an act or omission of the reseller, not later than 20 days after receiving the notice, correct the information in the consumer report or delete it; or
        (ii)  if the reseller determines that the item of information is not incomplete or inaccurate as a result of an act or omission of the reseller, convey the notice of the dispute, together with all relevant information provided by the consumer, to each consumer reporting agency that provided the reseller with the information that is the subject of the dispute, using an address or a notification mechanism specified by the consumer reporting agency for such notices.
    (3)  Responsibility of consumer reporting agency to notify consumer through reseller.--Upon the completion of a reinvestigation under this section of a dispute concerning the completeness or accuracy of any information in the file of a consumer by a consumer reporting agency that received notice of the dispute from a reseller under paragraph (2)--
      (A)  the notice by the consumer reporting agency under paragraph (6), (7), or (8) of subsection (a) shall be provided to the reseller in lieu of the consumer; and
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      (B)  the reseller shall immediately reconvey such notice to the consumer, including any notice of a deletion by telephone in the manner required under paragraph (8)(A).
    (4)  RESELLER REINVESTIGATIONS.--No provision of this subsection shall be construed as prohibiting a reseller from conducting a reinvestigation of a consumer dispute directly.

[Codified to 15 U.S.C. 1681i]

[Source:  Section 611 of title VI of the Act of May 29, 1968 (Pub. L. No. 90--321), as added by section 601 of title VI of the Act of October 26, 1970 (Pub. L. No. 91-508; 84 Stat. 1132), effective April 25, 1971; as amended by section 2409 of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--432 and 439), effective September 30, 1997; section 6(5) of the Act of November 2, 1998 (Pub. L. No. 105--347; 112 Stat 3211), effective September 30, 1997; sections 313(a), 314(a), 316(a)(1)--(a)(3), 316(b) and 317 of title II of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 1994--1997), effective date: except as otherwise specifically provided in this Act and the amendments made by this Act--(1) before the end of the 2 month period (March 4, 2004) beginning on the date of the enactment of the Act, the Board and the Commission shall jointly prescribe regulations in final form establishing effective dates for each provision of this Act; and (2) the regulations prescribed under paragraph (a) shall establish effective dates that are as early as possible, while allowing reasonable time for the implementation of the provision of this Act, but in no case shall any such effective date be later than 10 months (October 4, 2004) after the date of issuance of such regulations in final form]


§ 612.  Charges for certain disclosures

  (a)  FREE ANNUAL DISCLOSURE.--
    (1)  NATIONWIDE CONSUMER REPORTING AGENCIES.--
      (A)  IN GENERAL.--All consumer reporting agencies described in subsections (p) and (w) of section 603 shall make all disclosures pursuant to section 609 once during any 12-month period upon request of the consumer and without charge to the consumer.
      (B)  CENTRALIZED SOURCE.--Subparagraph (A) shall apply with respect to a consumer reporting agency described in section 603(p) only if the request from the consumer is made using the centralized source established for such purpose in accordance with section 211(c) of the Fair and Accurate Credit Transactions Act of 2003.
      (C)  NATIONWIDE SPECIALTY CONSUMER REPORTING AGENCY.--
        (i)  IN GENERAL.--The Commission shall prescribe regulations applicable to each consumer reporting agency described in section 603(w) to require the establishment of a streamlined process for consumers to request consumer reports under subparagraph (A), which shall include, at a minimum, the establishment by each such agency of a toll-free telephone number for such requests.
        (ii)  CONSIDERATIONS.--In prescribing regulations under clause (i), the Commission shall consider--
          (I)  the significant demands that may be placed on consumer reporting agencies in providing such consumer reports;
          (II)  appropriate means to ensure that consumer reporting agencies can satisfactorily meet those demands, including the efficacy of a system of staggering the availability to consumers of such consumer reports; and
          (III)  the ease by which consumers should be able to contact consumer reporting agencies with respect to access to such consumer reports.
        (iii)  DATE OF ISSUANCE.--The Commission shall issue the regulations required by this subparagraph in final form not later than 6 months after the date of enactment of the Fair and Accurate Credit Transactions Act of 2003.
        (iv)  CONSIDERATION OF ABILITY TO COMPLY.--The regulations of the Commission under this subparagraph shall establish an effective date by which each nationwide specialty consumer reporting agency (as defined in section 603(w)) shall be required to comply with subsection (a), which effective date--
          (I)  shall be established after consideration of the ability of each nationwide specialty consumer reporting agency to comply with subsection (a); and
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          (II)  shall be not later than 6 months after the date on which such regulations are issued in final form (or such additional period not to exceed 3 months, as the Commission determines appropriate).
    (2)  TIMING.--A consumer reporting agency shall provide a consumer report under paragraph (1) not later than 15 days after the date on which the request is received under paragraph (1).
    (3)  REINVESTIGATIONS.--Notwithstanding the time periods specified in section 611(a)(1), a reinvestigation under that section by a consumer reporting agency upon a request of a consumer that is made after receiving a consumer report under this subsection shall be completed not later than 45 days after the date on which the request is received.
    (4)  EXCEPTION FOR FIRST 12 MONTHS OF OPERATION.--This subsection shall not apply to a consumer reporting agency that has not been furnishing consumer reports to third parties on a continuing basis during the 12-month period preceding a request under paragraph (1), with respect to consumers residing nationwide.
  (b)  Free Disclosure After Adverse Notice to Consumer.--Each consumer reporting agency that maintains a file on a consumer shall make all disclosures pursuant to section 609 without charge to the consumer if, not later than 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 consumer's credit rating may be or has been adversely affected, the consumer makes a request under section 609.
  (c)  Free Disclosure Under Certain Other Circumstances.--Upon the request of the consumer, a consumer reporting agency shall make all disclosures pursuant to section 609 once during any 12-month period without charge to the 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 on which 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 information due to fraud.
  (d)  Free Disclosures In Connection With Fraud Alerts.--Upon the request of a consumer, a consumer reporting agency described in section 603(p) shall make all disclosures pursuant to section 609 without charge to the consumer, as provided in subsections (a)(2) and (b)(2) of section 605A, as applicable.
  (e)  OTHER CHARGES PROHIBITED.--A consumer reporting agency shall not impose any charge on a consumer for providing any notification required by this title or making any disclosure required by this title, except as authorized by subsection (f),
  (f)  REASONABLE CHARGES ALLOWED FOR CERTAIN DISCLOSURES.--
    (1)  IN GENERAL.--In the case of a request from a consumer other than a request that is covered by any of subsections (a) through (d), a consumer reporting agency may impose a reasonable charge on a consumer--
      (A)  for making a disclosure to the consumer pursuant to section 609, which charge--
        (i)  shall not exceed $8; and
        (ii)  shall be indicated to the consumer before making the disclosure; and
      (B)  for furnishing, pursuant to section 611(d), following a reinvestigation under section 611(a), a statement codification, or summary to a person designated by the consumer under that section after the 30-day period beginning on the date of notification of the consumer under paragraph (6) or (8) of section 611(a) with respect to the reinvestigation, which charge--
        (i)  shall not exceed the charge that the agency would impose on each designated recipient for a consumer report; and
        (ii)  shall be indicated to the consumer before furnishing such information.
    (2)  MODIFICATION OF AMOUNT.--The Federal Trade Commission shall increase the amount referred to in paragraph (1)(A)(i) on January 1 of each year, based proportionally
{{4-30-04 p.6610.25}}on changes in the Consumer Price Index, with fractional changes rounded to the nearest fifty cents.

[Codified to 15 U.S.C. 1681j]

[Source:  Section 612 of title VI of the Act of May 29, 1968 (Pub. L. No. 90--321), as added by section 601 of title VI of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1132), effective April 25, 1971; as amended by section 2410 of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--442), effective September 30, 1997; section 211(a) of title II of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 1968 and 1970), effective date: except as otherwise specifically provided in this Act and the amendments made by this Act--(1) before the end of the 2 month period (March 4, 2004) beginning on the date of the enactment of the Act, the Board and the Commission shall jointly prescribe regulations in final form establishing effective dates for each provision of this Act; and (2) the regulations prescribed under paragraph (a) shall establish effective dates that are as early as possible, while allowing reasonable time for the implementation of the provision of this Act, but in no case shall any such effective date be later than 10 months (October 4, 2004) after the date of issuance of such regulations in final form]


§ 613.  Public record information for employment purposes

  (a)  IN GENERAL--
  A consumer reporting agency which furnishes a consumer report for employment purposes and which for that purpose compiles and reports items of information on consumers which are matters of public record and are likely to have an adverse effect upon a consumer's ability to obtain employment shall--
    (1)  at the time such public record information is reported to the user of such consumer report, notify the consumer of the fact that public record information is being reported by the consumer reporting agency, together with the name and address of the person to whom such information is being reported; or
    (2)  maintain strict procedures designed to insure that whenever public record information which is likely to have an adverse effect on a consumer's ability to obtain employment is reported it is complete and up to date. For purposes of this paragraph, items of public record relating to arrests, indictments, convictions, suits, tax liens, and outstanding judgments shall be considered up to date if the current public record status of the item at the time of the report is reported.
  (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 employment purposes, if the head of the agency or department makes a written finding as prescribed under section 604(b)(4)(A).

[Codified to 15 U.S.C. 1681k]

[Source:  Section 613 of title VI of the Act of May 29, 1968 (Pub. L. No. 90--321), as added by section 601 of title VI of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1133), effective April 25, 1971; section 4(b) of the Act of November 2, 1998 (Pub. L. No. 105--347; 112 Stat. 3210), effective September 30, 1997]


§ 614.  Restrictions on investigative consumer reports

  Whenever a consumer reporting agency prepares an investigative consumer report, no adverse information in the consumer report (other than information which is a matter of public record) may be included in a subsequent consumer report unless such adverse information has been verified in the process of making such subsequent consumer report, or the adverse information was received within the three-month period preceding the date the subsequent report is furnished.

[Codified to 15 U.S.C. 1681l]

[Source:  Section 614 of title VI of the Act of May 29, 1968 (Pub. L. No. 90--321), as added by section 601 of title VI of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1133), effective April 25, 1971]

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§ 615.  Requirements on users of consumer reports

  (a)  Duties of Users Taking Adverse Actions on the Basis of Information Contained in Consumer Reports.--If any person takes any adverse action with respect to any consumer that is based in whole or in part on any information contained in a consumer report, the person shall--
    (1)  provide oral, written, or electronic notice of the adverse action to the consumer;
    (2)  provide to the consumer orally, in writing, or electronically--
      (A)  the name, address, and telephone number of the consumer reporting agency (including a toll-free telephone number established by the agency if the agency compiles and maintains files on consumers on a nationwide basis) that furnished the report to the person; and
      (B)  a statement that the consumer reporting agency did not make the decision to take the adverse action and is unable to provide the consumer the specific reasons why the adverse action was taken; and
    (3)  provide to the consumer an oral, written, or electronic 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 section 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)  Adverse Action Based on Information Obtained From Third Parties Other Than Consumer Reporting Agencies.--
    (1)  IN GENERAL.--Whenever credit for personal, family, or household purposes involving a consumer is denied or the charge for such credit is increased either wholly or partly because of information obtained from a person other than a consumer reporting agency bearing upon the consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, the user of such information shall, within a reasonable period of time upon the consumer's written request adverse action, disclose the nature of the information to the consumer. The user of such information shall clearly and accurately disclose to the consumer his right to make such written request at the time such adverse action is communicated to the consumer.
    (2)  Duties of person taking certain actions based on information provided by affiliate.--
      (A)  DUTIES, GENERALLY.--If a person takes an action described in subparagraph (B) with respect to a consumer, based in whole or in part on information described in subparagraph (C), the person shall--
        (i)  notify the consumer of the action, including a statement that the consumer may obtain the information in accordance with clause (ii); and
        (ii)  upon a written request from the consumer received within 60 days after transmittal of the notice required by clause (i), disclose to the consumer the nature of the information upon which the action is based by not later than 30 days after receipt of the request.
      (B)  ACTION DESCRIBED.--An action referred to in subparagraph (A) is an adverse action described in section 603(k)(1)(A), taken in connection with a transaction initiated by the consumer, or any adverse action described in clause (i) or (ii) of section 603(k)(1)(B).
      (C)  INFORMATION DESCRIBED.--Information referred to in subparagraph (A)--
        (i)  except as provided in clause (ii), is information that--
          (I)  is furnished to the person taking the action by a person related by common ownership or affiliated by common corporate control to the person taking the action; and
          (II)  bears on the credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living of the consumer; and
        (ii)  does not include--
          (I)  information solely as to transactions or experiences between the consumer and the person furnishing the information; or
          (II)  information in a consumer report.
  (c)  [Repealed]
{{2-29-08 p.6610.27}}
  (d)  Duties of Users Making Written Credit or Insurance Solicitations on the Basis of Information Contained in Consumer Files.--
    (1)  IN GENERAL.--Any person who uses a consumer report on any consumer in connection with any credit or insurance transaction that is not initiated by the consumer, that is provided to that person under section 604(c)(1)(B), shall provide with each written solicitation made to the consumer regarding the transaction a clear and conspicuous statement that--
      (A)  information contained in the consumer's consumer report was used in connection with the transaction;
      (B)  the consumer received the offer of credit or insurance because the consumer satisfied the criteria for credit worthiness or insurability under which the consumer was selected for the offer;
      (C)  if applicable, the credit or insurance 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 credit worthiness or insurability 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 or insurance transaction that 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(e).
    (2)  Disclosure of address and telephone number format.--A statement under paragraph (1) shall--
      (A)  include the address and toll-free telephone number of the appropriate notification system established under section 604(e); and
      (B)  be presented in such format and in such type size and manner as to be simple and easy to understand, as established by the Commission, by rule, in consultation with the Federal banking agencies and the National Credit Union Administration.
    (3)  MAINTAINING CRITERIA ON FILE.--A person who makes an offer of credit or insurance to a consumer under a credit or insurance transaction described in paragraph (1) shall maintain on file the criteria used to select the consumer to receive the offer, all criteria bearing on credit worthiness or insurability, as applicable, that are the basis for determining whether or not to extend credit or insurance pursuant to the offer, and any requirement for the furnishing of collateral as a condition of the extension of credit or insurance, until the expiration of the 3-year period beginning on the date on which the offer is made to the consumer.
    (4)  Authority of federal agencies regarding unfair or deceptive acts or practices not affected.--This section is not intended to affect the authority of any Federal or State agency to enforce a prohibition against unfair or deceptive acts or practices, including the making of false or misleading statements in connection with a credit or insurance transaction that is not initiated by the consumer.
  (e)  RED FLAG GUIDELINES AND REGULATIONS REQUIRED.--
    (1)  GUIDELINES.--The Federal banking agencies, the National Credit Union Administration, and the Commission shall jointly, with respect to the entities that are subject to their respective enforcement authority under section 621--
      (A)  establish and maintain guidelines for use by each financial institution and each creditor regarding identity theft with respect to account holders at, or customers of, such entities, and update such guidelines as often as necessary;
      (B)  prescribe regulations requiring each financial institution and each creditor to establish reasonable policies and procedures for implementing the guidelines established pursuant to subparagraph (A), to identify possible risks to account holders or customers or to the safety and soundness of the institution or customers; and
      (C)  prescribe regulations applicable to card issuers to ensure that, if a card issuer receives notification of a change of address for an existing account, and within a short period of time (during at least the first 30 days after such notification is received) receives a request for an additional or replacement card for the same account, the card issuer may
{{2-29-08 p.6610.28}}not issue the additional or replacement card, unless the card issuer, in accordance with reasonable policies and procedures--
        (i)  notifies the cardholder of the request at the former address of the cardholder and provides to the cardholder a means of promptly reporting incorrect address changes;
        (ii)  notifies the cardholder of the request by such other means of communication as the cardholder and the card issuer previously agreed to; or
        (iii)  uses other means of assessing the validity of the change of address, in accordance with reasonable policies and procedures established by the card issuer in accordance with the regulations prescribed under subparagraph (B).
    (2)  CRITERIA.--
      (A)  IN GENERAL.--In developing the guidelines required by paragraph (1)(A), the agencies described in paragraph (1) shall identify patterns, practices, and specific forms of activity that indicate the possible existence of identity theft.
      (B)  INACTIVE ACCOUNTS.--In developing the guidelines required by paragraph (1)(A), the agencies described in paragraph (1) shall consider including reasonable guidelines providing that when a transaction occurs with respect to a credit or deposit account that has been inactive for more than 2 years, the creditor or financial institution shall follow reasonable policies and procedures that provide for notice to be given to a consumer in a manner reasonably designed to reduce the likelihood of identity theft with respect to such account.
    (3)  Consistency with verification requirements.--Guidelines established pursuant to paragraph (1) shall not be inconsistent with the policies and procedures required under section 5318(1) of title 31, United States Code.
  (f)  Prohibition on Sale or Transfer of Debt Caused by Identity Theft.--
    (1)  IN GENERAL.--No person shall sell, transfer for consideration, or place for collection a debt that such person has been notified under section 605B has resulted from identity theft.
    (2)  APPLICABILITY.--The prohibitions of this subsection shall apply to all persons collecting a debt described in paragraph (1) after the date of a notification under paragraph (1).
    (3)  RULE OF CONSTRUCTION.--Nothing in this subsection shall be construed to prohibit--
      (A)  the repurchase of a debt in any case in which the assignee of the debt requires such repurchase because the debt has resulted from identity theft;
      (B)  the securitization of a debt or the pledging of a portfolio of debt as collateral in connection with a borrowing; or
      (C)  the transfer of debt as a result of a merger, acquisition, purchase and assumption transaction, or transfer of substantially all of the assets of an entity.
  (g)  Debt Collector Communications Concerning Identity Theft.--If a person acting as a debt collector (as that term is defined in title VIII) on behalf of a third party that is a creditor or other user of a consumer report is notified that any information relating to a debt that the person is attempting to collect may be fraudulent or may be the result of identity theft, that person shall--
    (1)  notify the third party that the information may be fraudulent or may be the result of identity theft; and
    (2)  upon request of the consumer to whom the debt purportedly relates, provide to the consumer all information to which the consumer would otherwise be entitled if the consumer were not a victim of identity theft, but wished to dispute the debt under provisions of law applicable to that person.
  (h)  DUTIES OF USERS IN CERTAIN CREDIT TRANSACTIONS.--
    (1)  IN GENERAL.--Subject to rules prescribed as provided in paragraph (6), if any person uses a consumer report in connection with an application for, or a grant, extension, or other provision of, credit on material terms that are materially less favorable than the
{{4-30-04 p.6610.29}}most favorable terms available to a substantial proportion of consumers from or through that person, based in whole or in part on a consumer report, the person shall provide an oral, written, or electronic notice to the consumer in the form and manner required by regulations prescribed in accordance with this subsection.
    (2)  TIMING.--The notice required under paragraph (1) may be provided at the time of an application for, or a grant, extension, or other provision of, credit or the time of communication of an approval of an application for, or grant, extension, or other provision of, credit, except as provided in the regulations prescribed under paragraph (6).
    (3)  EXCEPTIONS.--No notice shall be required from a person under this subsection if--
      (A)  the consumer applied for specific material terms and was granted those terms, unless those terms were initially specified by the person after the transaction was initiated by the consumer and after the person obtained a consumer report; or
      (B)  the person has provided or will provide a notice to the consumer under subsection (a) in connection with the transaction.
    (4)  OTHER NOTICE NOT SUFFICIENT.--A person that is required to provide a notice under subsection (a) cannot meet that requirement by providing a notice under this subsection.
    (5)  CONTENT AND DELIVERY OF NOTICE.--A notice under this subsection shall, at a minimum--
      (A)  include a statement informing the consumer that the terms offered to the consumer are set based on information from a consumer report;
      (B)  identify the consumer reporting agency furnishing the report;
      (C)  include a statement informing the consumer that the consumer may obtain a copy of a consumer report from that consumer reporting agency without charge; and
      (D)  include the contact information specified by that consumer reporting agency for obtaining such consumer reports (including a toll-free telephone number established by the agency in the case of a consumer reporting agency described in section 603(p)).
    (6)  RULEMAKING.--
      (A)  RULES REQUIRED.--The Commission and the Board shall jointly prescribe rules.
      (B)  CONTENT.--Rules required by subparagraph (A) shall address, but are not limited to--
        (i)  the form, content, time, and manner of delivery of any notice under this subsection;
        (ii)  clarification of the meaning of terms used in this subsection, including what credit terms are material, and when credit terms are materially less favorable;
        (iii)  exception to the notice requirement under this subsection for classes of persons or transactions regarding which the agencies determine that notice would not significantly benefit consumers;
        (iv)  a model notice that may be used to comply with this subsection; and
        (v)  the timing of the notice required under paragraph (1), including the circumstances under which the notice must be provided after the terms offered to the consumer were set based on information from a consumer report.
    (7)  COMPLIANCE.--A person shall not be liable for failure to perform the duties required by this section if, at the time of the failure, the person maintained reasonable policies and procedures to comply with this section.
    (8)  ENFORCEMENT.--
      (A)  NO CIVIL ACTIONS.--Sections 616 and 617 shall not apply to any failure by any person to comply with this section.
      (B)  ADMINISTRATIVE ENFORCEMENT.--This section shall be enforced exclusively under section 621 by the Federal agencies and officials identified in that section.

[Codified to 15 U.S.C. 1681m]

[Source:  Section 615 of title VI of the Act of May 29, 1968 (Pub. L. No. 90--321), as added by section 601 of title VI of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1133), effective April 25, 1971; as amended by section 2411 of title II of the Act of {{4-30-04 p.6610.30}}September 30, 1996 (Pub. L. No 104--208; 110 Stat. 3009--443--445), effective September 30, 1997; sections 114, 115, 154(b), and 155, of title I of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 1960 and 1967), section 213(a) of title II of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 1978), sections 311(a) of title III of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 1988), and section 811 (h) of title VIII of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 2012), effective date: except as otherwise specifically provided in this Act and the amendments made by this Act--(1) before the end of the 2 month period (March 4, 2004) beginning on the date of the enactment of the Act, the Board and the Commission shall jointly prescribe regulations in final form establishing effective dates for each provision of this Act; and (2) the regulations prescribed under paragraph (a) shall establish effective dates that are as early as possible, while allowing reasonable time for the implementation of the provision of this Act, but in no case shall any such effective date be later than 10 months (October 4, 2004) after the date of issuance of such regulations in final form]


§ 616.  Civil liability for willful noncompliance

  (a)  IN GENERAL.--Any person who willfully fails to comply with any requirement imposed under this title with respect to any consumer is liable to that consumer in an amount equal to the sum of--
    (1)(A)  any actual damages sustained by the consumer as a result of the failure or damages of not less than $100 and not more than $1,000; or
      (B)  in the case of liability of a natural person for obtaining a consumer report under false pretenses or knowingly without a permissible purpose, actual damages sustained by the consumer as a result of the failure or $1,000, whichever is greater;
    (2)  such amount of punitive damages as the court may allow; and
    (3)  in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
  (b)  CIVIL LIABILITY FOR KNOWING NONCOMPLIANCE.--Any person who obtains a consumer report from a consumer reporting agency under false pretenses or knowingly without a permissible purpose shall be liable to the consumer reporting agency for actual damages sustained by the consumer reporting agency or $1,000, whichever is greater.
  (c)  ATTORNEY'S FEES.--Upon a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for purposes of harassment, the court shall award to the prevailing party attorney's fees reasonable in relation to the work expended in responding to the pleading, motion, or other paper.

[Codified to 15 U.S.C. 1681n]

[Source:  Section 616 of title VI of the Act of May 29, 1968 (Pub. L. No. 90-321), as added by section 601 of title VI of the Act of October 26, 1970 (Pub. L. No. 91-508; 84 Stat. 1134), effective April 25, 1971; as amended by sections 2412(a), (b), (c), and (e)(1) of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--446), effective September 30, 1997]


§ 617.  Civil liability for negligent noncompliance

  (a)  IN GENERAL.--Any person who is negligent in failing to comply with any requirement imposed under this title with respect to any consumer is liable to that consumer in an amount equal to the sum of--
    (1)  any actual damages sustained by the consumer as a result of the failure; and
    (2)  in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
  (b)  ATTORNEY'S FEES.--On a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for purposes of harassment, the court shall award to the prevailing party attorney's fees reasonable in relation to the work expended in responding to the pleading, motion, or other paper.
{{4-30-04 p.6610.31}}

[Codified to 15 U.S.C. 1681o]

[Source:  Section 617 of title VI of the Act of May 29, 1968 (Pub. L. No. 90-321), as added by section 601 of title VI of the Act of October 26, 1970 (Pub. L. No. 91-508; 84 Stat. 1134), effective April 25, 1971; as amended by sections 2412(d) and (e)(2) of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--446 and 447), effective September 30, 1997; section 811(e) of title VIII of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 2012), effective December 4, 2003]


§ 618.  Jurisdiction of courts; limitation of actions

  An action to enforce any liability created under this title may be brought in any appropriate United States district court, without regard to the amount in controversy, or in any other court of competent jurisdiction, not later than the earlier of--
    (1)  2 years after the date of discovery by the plaintiff of the violation that is the basis for such liability; or
    (2)  5 years after the date on which the violation that is the basis for such liability occurs.

[Codified to 15 U.S.C. 1681p]

[Source:  Section 618 of title VI of the Act of May 29, 1968 (Pub. L. No. 90-321), as added by section 601 of title VI of the Act of October 26, 1970 (Pub. L. No. 91-508; 84 Stat. 1134), effective April 25, 1971; section 156 of title I of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 1968), effective date: except as otherwise specifically provided in this Act and the amendments made by this Act--(1) before the end of the 2 month period (March 4, 2004) beginning on the date of the enactment of the Act, the Board and the Commission shall jointly prescribe regulations in final form establishing effective dates for each provision of this Act; and (2) the regulations prescribed under paragraph (a) shall establish effective dates that are as early as possible, while allowing reasonable time for the implementation of the provision of this Act, but in no case shall any such effective date be later than 10 months (October 4, 2004) after the date of issuance of such regulations in final form]


§ 619.  Obtaining information under false pretenses

  Any person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses shall be fined under title 18, United States Code, imprisoned for not more than 2 years, or both.

[Codified to 15 U.S.C. 1681q]

[Source:  Section 619 of title VI of the Act of May 29, 1968 (Pub. L. No. 90-321), as added by section 601 of title VI of the Act of October 26, 1970 (Pub. L. No. 91-508; 84 Stat. 1134), effective April 25, 1971; as amended by section 2415(a) of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--450), effective September 30, 1997]


§ 620.  Unauthorized disclosures by officers or employees

  Any officer or employee of a consumer reporting agency who knowingly and willfully provides information concerning an individual from the agency's files to a person not authorized to receive that information shall be fined under title 18, United States Code, imprisoned for not more than 2 years, or both.

[Codified to 15 U.S.C. 1681r]

[Source:  Section 620 of title VI of the Act of May 29, 1968 (Pub. L. No. 90-321), as added by section 601 of title VI of the Act of October 26, 1970 (Pub. L. No. 91-508; 84 Stat. 1134), effective April 25, 1971; as amended by section 2415(b) of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--450), effective September 30, 1997]


§ 621.  Administrative enforcement

  (a)(1)  Enforcement by Federal Trade Commission.--Compliance with the requirements imposed under this title shall be enforced under the Federal Trade Commission Act by the Federal Trade Commission with respect to consumer reporting agencies and all other persons subject thereto, except to the extent that enforcement of the requirements imposed
{{4-30-04 p.6610.32}}under this title is specifically committed to some other government agency under subsection (b) hereof. For the purpose of the exercise by the Federal Trade Commission of its functions and powers under the Federal Trade Commission Act, a violation of any requirement or prohibition imposed under this title shall constitute an unfair or deceptive act or practice in commerce in violation of section 5(a) of the Federal Trade Commission Act and shall be subject to enforcement by the Federal Trade Commission under section 5(b) thereof with respect to any consumer reporting agency or person subject to enforcement by the Federal Trade Commission pursuant to this subsection, irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests in the Federal Trade Commission Act. The Federal Trade Commission shall have such procedural, investigative, and enforcement powers, including the power to issue procedural rules in enforcing compliance with the requirements imposed under this title and to require the filing of reports, the production of documents, and the appearance of witnesses as though the applicable terms and conditions of the Federal Trade Commission Act were part of this title. Any person violating any of the provisions of this title shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act as though the applicable terms and provisions thereof were part of this title.
    (2)(A)  In the event of a knowing violation, which constitutes a pattern or practice of violations of this title, the Commission may commence a civil action to recover a civil penalty in a district court of the United States against any person that violates this title. In such action, such person shall be liable for a civil penalty of not more than $2,500 per violation.
      (B)  In determining the amount of a civil penalty under subparagraph (A), the court shall take into account the degree of culpability, any history of prior such conduct, ability to pay, effect on ability to continue to do business, and such other matters as justice may require.
    (3)  Notwithstanding paragraph (2), a court may not impose any civil penalty on a person for a violation of section 623(a)(1) unless the person has been enjoined from committing the violation, or ordered not to commit the violation, in an action or proceeding brought by or on behalf of the Federal Trade Commission, and has violated the injunction or order, and the court may not impose any civil penalty for any violation occurring before the date of the violation of the injunction or order.
  (b)  ENFORCEMENT BY OTHER AGENCIES.--Compliance with the requirements imposed under this title with respect to consumer reporting agencies, persons who use consumer reports from such agencies, persons who furnish information to such agencies, and users of information that are subject to subsection (d) of section 615 shall be enforced under--
    (1)  section 8 of the Federal Deposit Insurance Act, in the case of--
      (A)  national banks, and Federal branches and Federal agencies of foreign banks, by the Office of the Comptroller of the Currency;
      (B)  member banks of the Federal Reserve System (other than national banks), branches and agencies of foreign banks (other than Federal branches, Federal agencies, and insured State branches of foreign banks), commercial lending companies owned or controlled by foreign banks, and organizations operating under section 25 or 25A of the Federal Reserve Act, by the Board of Governors of the Federal Reserve System; and
      (C)  banks insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System) and insured State branches of foreign banks, by the Board of Directors of the Federal Deposit Insurance Corporation;
    (2)  section 8 of the Federal Deposit Insurance Act, by the Director of the Office of Thrift Supervision, in the case of a savings association the deposits of which are insured by the Federal Deposit Insurance Corporation;
    (3)  the Federal Credit Union Act, by the Administrator of the National Credit Union Administration with respect to any Federal credit union;
    (4)  the Acts to regulate commerce, by the Secretary of Transportation, with respect to all carriers subject to the jurisdiction of the Surface Transportation Board;
    (5)  the Federal Aviation Act of 1958, by the Secretary of Transportation with respect to any air carrier or foreign air carrier subject to that Act; and
    (6)  the Packers and Stockyards Act, 1921 (except as provided in section 406 of that Act), by the Secretary of Agriculture with respect to any activities subject to that Act.
{{4-30-04 p.6610.33}}
  (c)  STATE ACTION FOR VIOLATIONS.--
    (1)  AUTHORITY OF STATES.--In addition to such other remedies as are provided under State law, if the chief law enforcement officer of a State, or an official or agency designated by a State, has reason to believe that any person has violated or is violating this title, the State--
      (A)  may bring an action to enjoin such violation in any appropriate United States district court or in any other court of competent jurisdiction;
      (B)  subject to paragraph (5), may bring an action on behalf of the residents of the State 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 described in any of paragraphs (1) through (3) of section 623(c) 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 violation; and
      (C)  in the case of any successful action under subparagraph (A) or (B), shall be awarded the costs of the action and reasonable attorney fees as determined by the court.
    (2)  RIGHTS OF FEDERAL REGULATORS.--The State shall serve prior written notice of any action under paragraph (1) upon the Federal Trade Commission or the appropriate Federal regulator determined under subsection (b) and provide the Commission or appropriate Federal regulator with a copy of its complaint, except in any case in which 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 enforcement 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 attendance of witnesses or the production of documentary and other evidence.
    (4)  Limitation on state action while federal action pending.--If the Federal Trade Commission or the appropriate Federal regulator has instituted a civil action or an administrative action under section 8 of the Federal Deposit Insurance Act for a violation of this title, no State may, during the pendency of such action, bring an action under this section against any defendant named in the complaint of the Commission or the appropriate Federal regulator for any violation of this title that is alleged in that complaint.
    (5)  Limitations on state actions for certain violations.--
      (A)  VIOLATION OF INJUNCTION REQUIRED.--A State may not bring an action against a person under paragraph (1)(B) for a violation described in any of paragraphs (1) through (3) of section 623(c), unless--
        (i)  the person has been enjoined from committing the violation, in an action brought by the State under paragraph (1)(A); and
        (ii)  the person has violated the injunction.
      (B)  LIMITATION ON DAMAGES RECOVERABLE.--In an action against a person under paragraph (1)(B) for a violation described in any paragraphs (1) through (3) of section 623(c), a State may not recover any damages incurred before the date of the violation of an injunction on which the action is based.
  (d)  For the purpose of the exercise by any agency referred to in subsection (b) of its powers under any Act referred to in that subsection, a violation of any requirement imposed under this title shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any provision of law specifically referred to in subsection (b), each of the agencies referred to in that subsection may exercise, for the purpose of
{{4-30-04 p.6610.34}}enforcing compliance with any requirement imposed under this title any other authority conferred on it by law.
  (e)  REGULATORY AUTHORITY.--
    (1)  The Federal banking agencies referred to in paragraphs (1) and (2) of subsection (b) shall jointly prescribe such regulations as necessary to carry out the purposes of this Act with respect to any persons identified under paragraphs (1) and (2) of subsection (b), and the Board of Governors of the Federal Reserve System shall have authority to prescribe regulations consistent with such joint regulations with respect to bank holding companies and affiliates (other than depository institutions and consumer reporting agencies) of such holding companies.
    (2)  The Board of the National Credit Union Administration shall prescribe such regulations as necessary to carry out the purposes of this Act with respect to any persons identified under paragraph (3) of subsection (b).
  (f)  COORDINATION OF CONSUMER COMPLAINT INVESTIGATIONS.--
    (1)  IN GENERAL.--Each consumer reporting agency described in section 603(p) shall develop and maintain procedures for the referral to each other such agency of any consumer complaint received by the agency alleging identity theft, or requesting a fraud alert under section 605A or a block under section 605B.
    (2)  Model form and procedure for reporting identity theft.--The Commission, in consultation with the Federal banking agencies and the National Credit Union Administration, shall develop a model form and model procedures to be used by consumers who are victims of identity theft for contacting and informing creditors and consumer reporting agencies of the fraud.
    (3)  ANNUAL SUMMARY REPORTS.--Each consumer reporting agency described in section 603(p) shall submit an annual summary report to the Commission on consumer complaints received by the agency on identity theft or fraud alert.
  (g)  FTC REGULATION OF CODING OF TRADE NAMES.--If the Commission determines that a person described in paragraph (9) of section 623(a) has not met the requirements of such paragraph, the Commission shall take action to ensure the person's compliance with such paragraph, which may include issuing model guidance or prescribing reasonable policies and procedures, as necessary to ensure that such person complies with such paragraph.

[Codified to 15 U.S.C. 1681s]

[Source:  Section 621 of title VI of the Act of May 29, 1968 (Pub. L. No. 90--321), as added by section 601 of title VI of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1134), effective April 25, 1971; as amended by section 9(n) of the Act of October 4, 1984 (Pub. L. No. 98--443; 98 Stat 1708); section 744(l) of title VII of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 439), effective August 9, 1989; section 212(c) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2300), effective December 19, 1991; section 1604(a)(6) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4082), effective December 19, 1991; section 314 of title III of the Act of December 29, 1995 (Pub. L. No. 104--88; 109 Stat. 948), effective December 29, 1995; sections 2413(a)(2), 2416, 2417 and 2418 of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--447, 450, and 451, respectively), effective September 30, 1997; section 6(6) of the Act of November 2, 1998 (Pub. L. No. 105--347; 112 Stat. 3211), effective September 30, 1997; sections 506(a) and (b) of title V of the Act of November 12, 1999 (Pub. L. No. 106--102; Stat. 113 1441 and 1442), effective November 12, 1999; section 153 of title I of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 1966), sections 312(e)(2)(A) and (B) of title III of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 1993), effective date: except as otherwise specifically provided in this Act and the amendments made by this Act--(1) before the end of the 2 month period (March 4, 2004) beginning on the date of the enactment of the Act, the Board and the Commission shall jointly prescribe regulations in final form establishing effective dates for each provision of this Act; and (2) the regulations prescribed under paragraph (a) shall establish effective dates that are as early as possible, while allowing reasonable time for the implementation of the provision of this Act, but in no case shall any such effective date {{4-30-04 p.6610.35}}be later than 10 months (October 4, 2004) after the date of issuance of such regulations in final form]



* * * * *


§ 623.  Responsibilities of furnishers of information to consumer reporting agencies

  (a)  Duty of Furnishers of Information To Provide Accurate Information.--
    (1)  PROHIBITION.--
      (A)  Reporting information with actual knowledge of errors.--A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate.
      (B)  Reporting information after notice and confirmation of errors.--A person shall not furnish information relating to a consumer to any consumer reporting agency if--
        (i)  the person has been notified by the consumer, at the address specified by the person for such notices, that specific information is inaccurate; and
        (ii)  the information is, in fact, inaccurate.
      (C)  NO ADDRESS REQUIREMENT.--A person who clearly and conspicuously specifies to the consumer an address for notices referred to in subparagraph (B) shall not be subject to subparagraph (A); however, nothing in subparagraph (B) shall require a person to specify such an address.
      (D)  DEFINITION.--For purposes of subparagraph (A), the term "reasonable cause to believe that the information is inaccurate" means having specific knowledge, other than solely allegations by the consumers, that would cause a reasonable person to have substantial doubts about the accuracy of the information.
    (2)  DUTY TO CORRECT AND UPDATE INFORMATION.--A person who--
      (A)  regularly and in the ordinary course of business furnishes information to one or more consumer reporting agencies about the person's transactions or experiences with any consumer; and
      (B)  has furnished to a consumer reporting agency information that the person determines is not complete or accurate;
shall promptly notify the consumer reporting agency of that determination and provide to the agency any corrections to that information, or any additional information, that is necessary to make the information provided by the person to the agency complete and accurate, and shall not thereafter furnish to the agency any of the information that remains not complete or accurate.
    (3)  DUTY TO PROVIDE NOTICE OF DISPUTE.--If the completeness or accuracy of any information furnished by any person to any consumer reporting agency is disputed to such person by a consumer, the person may not furnish the information to any consumer reporting agency without notice that such information is disputed by the consumer.
    (4)  DUTY TO PROVIDE NOTICE OF CLOSED ACCOUNTS.--A person who regularly and in the ordinary course of business furnishes information to a consumer reporting agency regarding a consumer who has a credit account with that person shall notify the agency of the voluntary closure of the account by the consumer, in information regularly furnished for the period in which the account is closed.
    (5)  DUTY TO PROVIDE NOTICE OF DELINQUENCY OF ACCOUNTS. (A)  IN GENERAL.--A person who furnishes information to a consumer reporting agency regarding a delinquent account being placed for collection, charged to profit or loss, or subjected to any similar action shall, not later than 90 days after furnishing the information, notify the agency of the date of delinquency on the account, which shall be the month and year of the commencement of the delinquency on the account that immediately preceded the action.
      (B)  RULE OF CONSTRUCTION.--For purposes of this paragraph only and provided that the consumer does not dispute the information, a person that furnishes information on a delinquent account that is placed for collection, charged for profit or loss, or subjected to any similar action, complies with this paragraph, if--
        (i)  the person reports the same date of delinquency as that provided by the creditor to which the account was owed at the time at which the commencement of the
{{4-30-04 p.6610.36}}delinquency occurred, if the creditor previously reported that date of delinquency to a consumer reporting agency;
        (ii)  the creditor did not previously report the date of delinquency to a consumer reporting agency, and the person establishes and follows reasonable procedures to obtain the date of delinquency from the creditor or another reliable source and reports that date to a consumer reporting agency as the date of delinquency; or
        (iii)  the creditor did not previously report the date of delinquency to a consumer reporting agency and the date of delinquency cannot be reasonably obtained as provided in clause (ii), the person establishes and follows reasonable procedures to ensure the date reported as the date of delinquency precedes the date on which the account is placed for collection, charged to profit or loss, or subjected to any similar action, and reports such date to the credit reporting agency.
    (6)  Duties of furnishers upon notice of identity theft—related information.--
        (A)  REASONABLE PROCEDURES.--A person that furnishes information to any consumer reporting agency shall have in place reasonable procedures to respond to any notification that it receives from a consumer reporting agency under section 605B relating to information resulting from identity theft, to prevent that person from refurnishing such blocked information.
      (B)  Information alleged to result from identity theft.--If a consumer submits an identity theft report to a person who furnishes information to a consumer reporting agency at the address specified by that person for receiving such reports stating that information maintained by such person that purports to relate to the consumer resulted from identity theft, the person may not furnish such information that purports to relate to the consumer to any consumer reporting agency, unless the person subsequently knows or is informed by the consumer that the information is correct.
    (7)  NEGATIVE INFORMATION.--
      (A)  NOTICE TO CONSUMER REQUIRED.--
        (i)  IN GENERAL.--If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 603(p) furnishes negative information to such an agency regarding credit extended to a customer, the financial institution shall provide a notice of such furnishing of negative information, in writing, to the customer.
        (ii)  NOTICE EFFECTIVE FOR SUBSEQUENT SUBMISSIONS.--After providing such notice, the financial institution may submit additional negative information to a consumer reporting agency described in section 603(p) with respect to the same transaction, extension of credit, account, or customer without providing additional notice to the customer.
      (B)  TIME OF NOTICE.--
        (i)  IN GENERAL.--The notice required under subparagraph (A) shall be provided to the customer prior to, or no later than 30 days after, furnishing the negative information to a consumer reporting agency described in section 603(p).
        (ii)  COORDINATION WITH NEW ACCOUNT DISCLOSURES.--If the notice is provided to the customer prior to furnishing the negative information to a consumer reporting agency, the notice may not be included in the initial disclosures provided under section 127(a) of the Truth in Lending Act.
      (C)  COORDINATION WITH OTHER DISCLOSURES.--The notice required under subparagraph (A)--
        (i)  may be included on or with any notice of default, any billing statement, or any other materials provided to the customer; and
        (ii)  must be clear and conspicuous.
      (D)  MODEL DISCLOSURES.--
        (i)  DUTY OF BOARD TO PREPARE.--The Board shall prescribe a brief model disclosure a financial institution may use to comply with subparagraph (A), which shall not exceed 30 words.
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        (ii)  USE OF MODEL NOT REQUIRED.--No provision of this paragraph shall be construed as requiring a financial institution to use any such model form prescribed by the Board.
        (iii)  COMPLIANCE USING MODEL.--A financial institution shall be deemed to be in compliance with subparagraph (A) if the financial institution uses any such model form prescribed by the Board, or the financial institution uses any such model form and rearranges its format.
      (E)  Use of notice without submitting negative information.--No provision of this paragraph shall be construed as requiring a financial institution that has provided a customer with a notice described in subparagraph (A) to furnish negative information about the customer to a consumer reporting agency.
      (F)  SAFE HARBOR.--A financial institution shall not be liable for failure to perform the duties required by this paragraph if, at the time of the failure, the financial institution maintained reasonable policies and procedures to comply with this paragraph or the financial institution reasonably believed that the institution is prohibited, by law, from contacting the consumer.
      (G)  DEFINITIONS.--For purposes of this paragraph, the following definitions shall apply:
        (i)  NEGATIVE INFORMATION.--The term "negative information" means information concerning a customer's delinquencies, late payments, insolvency, or any form of default.
        (ii)  CUSTOMER FINANCIAL INSTITUTION.--The term "customer" and "financial institution" have the same meanings as in section 509 Public Law 106--102.
    (8)  Ability of consumer to dispute information directly with furnisher.--
      (A)  IN GENERAL.--The Federal banking agencies, the National Credit Union Administration, and the Commission shall jointly prescribe regulations that shall identify the circumstances under which a furnisher shall be required to reinvestigate a dispute concerning the accuracy of information contained in a consumer report on the consumer, based on a direct request of a consumer.
      (B)  CONSIDERATIONS.--In prescribing regulations under subparagraph (A), the agencies shall weigh--
        (i)  the benefits to consumers with the costs on furnishers and the credit reporting system;
        (ii)  the impact on the overall accuracy and integrity of consumer reports of any such requirements;
        (iii)  whether direct contact by the consumer with the furnisher would likely result in the most expeditious resolution of any such dispute; and
        (iv)  the potential impact on the credit reporting process if credit repair organizations, as defined in section 403(3), including entities that would be a credit repair organization, but for section 403(3)(B)(i), are able to circumvent the prohibition in subparagraph (G).
      (C)  APPLICABILITY.--Subparagraphs (D) and (G) shall apply in any circumstance identified under the regulations promulgated under subparagraph (A).
      (D)  SUBMITTING A NOTICE OF DISPUTE.--A consumer who seeks to dispute the accuracy of information shall provide a dispute notice directly to such person at the address specified by the person for such notices that--
        (i)  identifies the specific information that is being disputed;
        (ii)  explains the basis for the disputes; and
        (iii)  includes all supporting documentation required by the furnisher to substantiate the basis of the dispute.
      (E)  Duty of person after receiving notice of dispute.--After receiving a notice of dispute from a consumer pursuant to subparagraph (D), the person that provided the information in dispute to a consumer reporting agency shall--
        (i)  conduct an investigation with respect to the disputed information;
        (ii)  review all relevant information provided by the consumer with the notice;
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        (iii)  complete such person's investigation of the dispute and report the results of the investigation to the consumer before the expiration of the period under section 611(a)(1) within which a consumer reporting agency would be required to complete its action if the consumer had elected to dispute the information under that section; and
        (iv)  if the investigation finds that the information reported was inaccurate, promptly notify each consumer reporting agency to which the person furnished the inaccurate information of that determination and provide to the agency any correction to that information that is necessary to make the information provided by the person accurate.
      (F)  FRIVOLOUS OR IRRELEVANT DISPUTE.--
        (i)  IN GENERAL.--This paragraph shall not apply if the person receiving a notice of a dispute from a consumer reasonably determines that the dispute is frivolous or irrelevant, including--
          (I)  by reason of the failure of a consumer to provide sufficient information to investigate the disputed information; or
          (II)  the submission by a consumer of a dispute that is substantially the same as a dispute previously submitted by or for the consumer, either directly to the person or through a consumer reporting agency under subsection (b), with respect to which the person has already performed the person's duties under this paragraph or subsection (b), as applicable.
        (ii)  NOTICE OF DETERMINATION.--Upon making any determination under clause (i) that a dispute is frivolous or irrelevant, the person shall notify the consumer of such determination not later than 5 business days after making such determination, by mail or, if authorized by the consumer for that purpose, by any other means available to the person.
        (iii)  CONTENTS OF NOTICE.--A notice under clause (ii) shall include--
          (I)  the reasons for the determination under clause (i); and
          (II)  identification of any information required to investigate the disputed information, which may consist of a standardized form describing the general nature of such information.
      (G)  EXCLUSION OF CREDIT REPAIR ORGANIZATIONS.--This paragraph shall not apply if the notice of the dispute is submitted by, is prepared on behalf of the consumer by, or is submitted on a form supplied to the consumer by, a credit repair organization, as defined in section 403(3), or an entity that would be a credit repair organization, but for section 403(3)(B)(i).
    (9)  Duty to provide notice of status as medical information furnisher.--A person whose primary business is providing medical services, products, or devices, or the person's agent or assignee, who furnishes information to a consumer reporting agency on a consumer shall be considered a medical information furnisher for purposes of this title, and shall notify the agency of such status.
  (b)  Duties of furnishers of Information Upon Notice of Dispute.--
    (1)  IN GENERAL.--After receiving notice pursuant to section 611(a)(2) of a dispute with regard to the completeness or accuracy of any information provided by a person to a consumer reporting agency, the person shall--
      (A)  conduct an investigation with respect to the disputed information;
      (B)  review all relevant information provided by the consumer reporting agency pursuant to section 611(a)(2);
      (C)  report the results of the investigation to the consumer reporting agency;
      (D)  if the investigation finds that the information is incomplete or inaccurate, report those results to all other consumer reporting agencies to which the person furnished the information and that compile and maintain files on consumers on a nationwide basis; and
      (E)  if an item of information disputed by a consumer is found to be inaccurate or incomplete or cannot be verified after any reinvestigation under paragraph (1), for purposes of reporting to a consumer reporting agency only, as appropriate, based on the results of the reinvestigation promptly--
        (i)  modify that item of information;
        (ii)  delete that item of information; or
        (iii)  permanently block the reporting of that item of information.
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    (2)  DEADLINE.--A person shall complete all investigations, reviews, and reports required under paragraph (1) regarding information provided by the person to a consumer reporting agency, before the expiration of the period under section 611(a)(1) within which the consumer reporting agency is required to complete actions required by that section regarding that information.
  (c)  LIMITATION ON LIABILITY.--Except as provided in section 621(c)(1)(B), sections 616 and 617 do not apply to any violation of--
    (1)  subsection (a) of this section, including any regulations issued thereunder;
    (2)  subsection (e) of this section, except that nothing in this paragraph shall limit, expand, or otherwise affect liability under section 616 and 617, as applicable, for violations of subsection (b) of this section; or
    (3)  subsection (e) of section 615.
  (d)  LIMITATION ON ENFORCEMENT.--The provisions of law described in paragraphs (1) through (3) of subsection (c) (other than with respect to the exception described in paragraph (2) of subsection (c)) shall be enforced exclusively as provided under section 621 by the Federal agencies and officials and the State officials identified in section 621.
  (e)  ACCURACY GUIDELINES AND REGULATIONS REQUIRED.--
    (1)  GUIDELINES.--The Federal banking agencies, the National Credit Union Administration, and the Commission shall, with respect to the entities that are subject to their respective enforcement authority under section 621, and in coordination as described in paragraph (2)--
      (A)  establish and maintain guidelines for use by each person that furnishes information to a consumer reporting agency regarding the accuracy and integrity of the information relating to consumers that such entities furnish to consumer reporting agencies, and update such guidelines as often as necessary; and
      (B)  prescribe regulations requiring each person that furnishes information to a consumer reporting agency to establish reasonable policies and procedures for implementing the guidelines established pursuant to subparagraph (A).
    (2)  COORDINATION.--Each agency required to prescribe regulations under paragraph (1) shall consult and coordinate with each other such agency so that, to the extent possible, the regulations prescribed by each such entity are consistent and comparable with the regulations prescribed by each other such agency.
    (3)  CRITERIA.--In developing the guidelines required by paragraph (1)(A), the agencies described in paragraph (1) shall--
      (A)  identify patterns, practices, and specific forms of activity that can compromise the accuracy and integrity of information furnished to consumer reporting agencies;
      (B)  review the methods (including technological means) used to furnish information relating to consumers to consumer reporting agencies;
      (C)  determine whether persons that furnish information to consumer reporting agencies maintain and enforce policies to assure the accuracy and integrity of information furnished to consumer reporting agencies; and
      (D)  examine the policies and processes that persons that furnish information to consumer reporting agencies employ to conduct reinvestigations and correct inaccurate information relating to consumers that has been furnished to consumer reporting agencies.

[Codified to 15 U.S.C. 1681s--2]

[Source:  Section 623 of title VI of the Act of May 29, 1968 (Pub. L. No. 90--321), as added by section 2413(a)(2) of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 447), effective September 30, 1997; section 154(a) of title I of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 1966, sections 312(a)--(e) of title III of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 1989, 1990, 1992, and 1993, respectively), section 314(b) of title III of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 1995 and 1196, and section 412(a) of title IV of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 2002), effective date: except as otherwise specifically provided in this Act and the amendments made by this Act--(1) before the end of the 2 {{2-29-08 p.6610.40}}month period (March 4, 2004) beginning on the date of the enactment of the Act, the Board and the Commission shall jointly prescribe regulations in final form establishing effective dates for each provision of this Act; and (2) the regulations prescribed under paragraph (a) shall establish effective dates that are as early as possible, while allowing reasonable time for the implementation of the provision of this Act, but in no case shall any such effective date be later than 10 months (October 4, 2004) after the date of issuance of such regulations in final form]


§ 624.  Affiliate sharing.

  (a)  Special Rule For Solicitation For Purposes Of Marketing.--
    (1)  NOTICE.--Any person that receives from another person related to it by common ownership or affiliated by corporate control a communication of information that would be a consumer report, but for clauses (i), (ii), and (iii) of section 603(d)(2)(A), may not use the information to make a solicitation for marketing purposes to a consumer about its products or services, unless--
      (A)  it is clearly and conspicuously disclosed to the consumer that the information may be communicated among such persons for purposes of making such solicitations to the consumer; and
      (B)  the consumer is provided an opportunity and a simple method to prohibit the making of such solicitations to the consumer by such person.
    (2) CONSUMER CHOICE.--
      (A)  IN GENERAL.--The notice required under paragraph (1) shall allow the consumer the opportunity to prohibit all solicitations referred to in such paragraph, and may allow the consumer to choose from different options when electing to prohibit the sending of such solicitations, including options regarding the types of entities and information covered, and which methods of delivering solicitations the consumer elects to prohibit.
      (B)  FORMAT.--Notwithstanding subparagraph (A), the notice required under paragraph (1) shall be clear, conspicuous, and concise, and any method provided under paragraph (1)(B) shall be simple. The regulations prescribed to implement this section shall provide specific guidance regarding how to comply with such standards.
    (3)  Duration.—
      (A)  IN GENERAL.--The election of a consumer pursuant to paragraph (1)(B) to prohibit the making of solicitations shall be effective for at least 5 years, beginning on the date on which the person receives the election of the consumer, unless the consumer requests that such election be revoked.
      (B)  NOTICE UPON EXPIRATION OF EFFECTIVE PERIOD.--At such time as the election of a consumer pursuant to paragraph (1)(B) is no longer effective, a person may not use information that the person receives in the manner described in paragraph (1) to make any solicitation for marketing purposes to the consumer, unless the consumer receives a notice and an opportunity, using a simple method, to extend the opt-out for another period of at least 5 years, pursuant to the procedures described in paragraph (1).
    (4)  SCOPE.--This section shall not apply to a person--
      (A)  using information to make a solicitation for marketing purposes to a consumer with whom the person has a pre-existing business relationship;
      (B)  using information to facilitate communications to an individual for whose benefit the person provides employee benefit or other services pursuant to a contract with an employer related to and arising out of the current employment relationship or status of the individual as a participant or beneficiary of an employee benefit plan;
      (C)  using information to perform services on behalf of another person related by common ownership or affiliated by corporate control, except that this subparagraph shall not be construed as permitting a person to send solicitations on behalf of another person, if such other person would not be permitted to send the solicitation on its own behalf as a result of the election of the consumer to prohibit solicitations under paragraph (1)(B);
      (D)  using information in response to a communication initiated by the consumer;
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      (E)  using information in response to solicitations authorized or requested by the consumer; or
      (F)  if compliance with this section by that person would prevent compliance by that person with any provision of State insurance laws pertaining to unfair discrimination in any State in which the person is lawfully doing business.
    (5)  NO RETROACTIVITY.--This subsection shall not prohibit the use of information to send a solicitation to a consumer if such information was received prior to the date on which persons are required to comply with regulations implementing this subsection.
  (b)  NOTICE FOR OTHER PURPOSES PERMISSIBLE.--A notice or other disclosure under this section may be coordinated and consolidated with any other notice required to be issued under any other provision of law by a person that is subject to this section, and a notice or other disclosure that is equivalent to the notice required by subsection (a), and that is provided by a person described in subsection (a) to a consumer together with disclosures required by any other provision of law, shall satisfy the requirements of subsection (a).
  (c)  USER REQUIREMENTS.--Requirements with respect to the use by a person of information received from another person related to it by common ownership or affiliated by corporate control, such as the requirements of this section, constitute requirements with respect to the exchange of information among persons affiliated by common ownership or common corporate control, within the meaning of section 625(b)(2).
  (d)  DEFINITIONS.--For purposes of this section, the following definitions shall apply:
    (1)  PRE-EXISTING BUSINESS RELATIONSHIP.--The term "pre-existing business relationship" means a relationship between a person, or a person's licensed agent, and a consumer, based on--
      (A)  a financial contract between a person and a consumer which is in force;
      (B)  the purchase, rental, or lease by the consumer of that person's goods or services, or a financial transaction (including holding an active account or a policy in force or having another continuing relationship) between the consumer and that person during the 18-month period immediately preceding the date on which the consumer is sent a solicitation covered by this section;
      (C)  an inquiry or application by the consumer regarding a product or service offered by that person, during the 3-month period immediately preceding the date on which the consumer is sent a solicitation covered by this section; or
      (D)  any other pre-existing customer relationship defined in the regulations implementing this section.
    (2)  SOLICITATION.--The term "solicitation" means the marketing of a product or service initiated by a person to a particular consumer that is based on an exchange of information described in subsection (a), and is intended to encourage the consumer to purchase such product or service, but does not include communications that are directed at the general public or determined not to be a solicitation by the regulations prescribed under this section.

[Codified to 15 U.S.C. 1681 s-3]

[Source: Section 624 added by section 214(a)(2) of title II of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 1980), effective date: except as otherwise specifically provided in this Act and the amendments made by this Act--(1) before the end of the 2 month period (March 4, 2004) beginning on the date of the enactment of the Act, the Board and the Commission shall jointly prescribe regulations in final form establishing effective dates for each provision of this Act; and (2) the regulations prescribed under paragraph (a) shall establish effective dates that are as early as possible, while allowing reasonable time for the implementation of the provision of this Act, but in no case shall any such effective date be later than 10 months (October 4, 2004) after the date of issuance of such regulations in final form]

{{4-30-04 p.6610.42}}

§ 625.  Relation to State laws

  (a)  IN GENERAL.--Except as provided in subsections (a) and (b) of this title does not annul, alter, affect, or exempt any person subject to the provisions of this title from complying with the laws of any State with respect to the collection, distribution, or use of any information on consumers, or for the prevention or mitigation of identity theft, except to the extent that those laws are inconsistent with any provision of this title, and then only to the extent of the inconsistency.
  (b)  GENERAL EXCEPTIONS.--No requirement or prohibition may be imposed under the laws of any State--
    (1)  with respect to any subject matter regulated under--
      (A)  subsection (c) or (e) of section 604, relating to the prescreening of consumer reports;
      (B)  section 611, relating to the time by which a consumer reporting agency must take any action, including the provision of notification to a consumer or other person, in any procedure related to the disputed accuracy of information in a consumer's file, except that this subparagraph shall not apply to any State law in effect on the date of enactment of the Consumer Credit Reporting Reform Act of 1996;
      (C)  subsections (a) and (b) of section 615, relating to the duties of a person who takes any adverse action with respect to a consumer;
      (D)  section 615(d), relating to the duties of persons who use a consumer report of a consumer in connection with any credit or insurance transaction that is not initiated by the consumer and that consists of a firm offer of credit or insurance;
      (E)  section 605, relating to information contained in consumer reports, except that this subparagraph shall not apply to any State law in effect on the date of enactment of the Consumer Credit Reporting Reform Act of 1996;
      (F)  section 623, relating to the responsibilities of persons who furnish information to consumer reporting agencies, except that this paragraph shall not apply--
        (i)  with respect to section 54A(a) of chapter 93 of the Massachusetts Annotated Laws (as in effect on the date of enactment of the Consumer Credit Reporting Reform Act of 1996); or
        (ii)  with respect to section 1785.25(a) of the California Civil Code (as in effect on the date of enactment of the Consumer Credit Reporting Reform Act of 1996);
      (G)  section 609(e), relating to information available to victims under section 609(e);
      (H)  section 624, relating to the exchange and use of information to make a solicitation for marketing purposes; or
      (I)  section 615(h), relating to the duties of users of consumer reports to provide notice with respect to terms in certain credit transactions;
    (2)  with respect to the exchange of information among persons affiliated by common ownership or common corporate control, except that this paragraph shall not apply with respect to subsection (a) or (c)(1) of section 2480e of title 9, Vermont Statutes Annotated (as in effect on the date of enactment of the Consumer Credit Reporting Reform Act of 1996);
    (3)  with respect to the disclosures required to be made under subsection (c), (d), (e), or (g) of section 609, or subsection (f) of section 609 relating to the disclosure of credit scores for credit granting purposes, except that this paragraph--
      (A)  shall not apply with respect to sections 1785.10, 1785.16, and 1785.20.2 of the California Civil Code (as in effect on the date of enactment of the Fair and Accurate Credit Transactions Act of 2003) and section 1785.15 through section 1785.15.2 of such Code (as in effect on such date);
      (B)  shall not apply with respect to sections 5--3--106(2) and 212--14.3--104.3 of the Colorado Revised Statutes (as in effect on the date of enactment of the Fair and Accurate Credit Transactions Act of 2003); and
      (C)  shall not be construed as limiting, annulling, affecting, or superseding any provision of the laws of any State regulating the use in an insurance activity, or regulating
{{2-29-08 p.6610.43}}disclosures concerning such use, of a credit-based insurance score of a consumer by any person engaged in the business of insurance;
    (4)&