§ 1681m. Requirements on Users of Consumer Reports
Adverse action based on reports of consumer reporting agencies
Whenever credit or insurance for personal, family, or household purposes, or employment
involving a consumer is denied or the charge for such credit or insurance is increased
either wholly or partly because of information contained in a consumer re port from a
consumer reporting agency, the user of the consumer report shall so advise the consumer
against whom such adverse action has been taken and supply the name and address of the
consumer reporting agency making the report.
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--
provide oral, written, or electronic notice of the adverse action
to the consumer;
provide to the consumer orally, in writing, or electronically--
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
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
provide to the consumer an oral, written, or electronic notice of
the consumer's right--
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
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.
Adverse Action Based on Information Obtained From Third Parties
Other Than Consumer Reporting Agencies:
Whenever credit
(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 for the reasons for such adverse action received within sixty days after learning
of such 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.
Duties of person taking certain actions based on information
provided by affiliate:
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-
notify the consumer of the action, including a statement
that the consumer may obtain the information in accordance with clause (ii); and
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.
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)
Information described: Information referred to in subparagraph
(A)-
except as provided in clause (ii), is information that-
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
bears on the credit worthiness, credit standing, credit
capacity, character, general reputation, personal characteristics, or mode of living of
the consumer; and
does not include-
information solely as to transactions or experiences
between the consumer and the person furnishing the information; or
information in a consumer report.
Reasonable procedures to assure compliance it:
No person shall be held liable for any violation of this section if he shows by a
preponderance of the evidence that at the time of the alleged violation he maintained
reasonable procedures to assure compliance with the provisions of subsections (a)
and (b) this section.
Duties of Users Making Written Credit or Insurance Solicitations on the
Basis of Information Contained in Consumer Files:
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--
information contained in the consumer's consumer report was
used in connection with the transaction;
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;
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;
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
the consumer may exercise the right referred to in subparagraph
(D) by notifying a notification system established under Section 604(e).
Disclosure of address and telephone number: A statement under
paragraph (1) shall include the address and toll-free telephone number of the appropriate
notification system established under Section 604(e).
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.
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.
§ 1681m. Requirements on Users of Consumer Reports
Adverse action based on reports of consumer reporting agencies
Whenever credit or insurance for personal, family, or household purposes, or employment
involving a consumer is denied or the charge for such credit or insurance is increased
either wholly or partly because of information contained in a consumer re port from a
consumer reporting agency, the user of the consumer report shall so advise the consumer
against whom such adverse action has been taken and supply the name and address of the
consumer reporting agency making the report.
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--
provide oral, written, or electronic notice of the adverse action
to the consumer;
provide to the consumer orally, in writing, or electronically--
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
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
provide to the consumer an oral, written, or electronic notice of
the consumer's right--
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
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.
Adverse Action Based on Information Obtained From Third Parties
Other Than Consumer Reporting Agencies:
Whenever credit
(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 for the reasons for such adverse action received within sixty days after learning
of such 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.
Duties of person taking certain actions based on information
provided by affiliate:
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-
notify the consumer of the action, including a statement
that the consumer may obtain the information in accordance with clause (ii); and
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.
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)
Information described: Information referred to in subparagraph
(A)-
except as provided in clause (ii), is information that-
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
bears on the credit worthiness, credit standing, credit
capacity, character, general reputation, personal characteristics, or mode of living of
the consumer; and
does not include-
information solely as to transactions or experiences
between the consumer and the person furnishing the information; or
information in a consumer report.
Reasonable procedures to assure compliance it:
No person shall be held liable for any violation of this section if he shows by a
preponderance of the evidence that at the time of the alleged violation he maintained
reasonable procedures to assure compliance with the provisions of subsections (a)
and (b) this section.
Duties of Users Making Written Credit or Insurance Solicitations on the
Basis of Information Contained in Consumer Files:
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--
information contained in the consumer's consumer report was
used in connection with the transaction;
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;
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;
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
the consumer may exercise the right referred to in subparagraph
(D) by notifying a notification system established under Section 604(e).
Disclosure of address and telephone number: A statement under
paragraph (1) shall include the address and toll-free telephone number of the appropriate
notification system established under Section 604(e).
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.
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.