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-
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.
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-
An action referred to in subparagraph (A) is an adverse action described in sectionof this title, taken in connection with a transaction initiated by the consumer, or any adverse action described in clause (i) or (ii) of section of this title.
Information referred to in subparagraph (A)-
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 this section.
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 sectionof this title, shall provide with each written solicitation made to the consumer regarding the transaction a clear and conspicuous statement that-
A statement under paragraph (1) shall-
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.
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.
The Federal banking agencies, the National Credit Union Administration, the Federal Trade Commission, the Commodity Futures Trading Commission, and the Securities and Exchange Commission shall jointly, with respect to the entities that are subject to their respective enforcement authority under sectionof this title-
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.
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.
Guidelines established pursuant to paragraph (1) shall not be inconsistent with the policies and procedures required under sectionof title 31.
As used in this subsection, the term "creditor"-
No person shall sell, transfer for consideration, or place for collection a debt that such person has been notified under sectionof this title has resulted from identity theft.
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).
Nothing in this subsection shall be construed to prohibit-
If a person acting as a debt collector (as that term is defined in subchapter V) 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-
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 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.
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).
No notice shall be required from a person under this subsection if-
A person that is required to provide a notice under subsection (a) cannot meet that requirement by providing a notice under this subsection.
A notice under this subsection shall, at a minimum-
The Bureau shall prescribe rules to carry out this subsection.
Rules required by subparagraph (A) shall address, but are not limited to-
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.
Sectionsand of this title shall not apply to any failure by any person to comply with this section.
This section shall be enforced exclusively under sectionof this title by the Federal agencies and officials identified in that section.
15 U.S.C. § 1681m
Pub. L. 90-321, title VI, §615, as added Pub. L. 91-508, title VI, §601, Oct. 26, 1970, 84 Stat. 1133; amended Pub. L. 104-208, div. A, title II, §24112411,, 110 Stat. 3009-443; Pub. L. 108-159, title I, §§114, 154, title II, §213(a), title III, §311(a), title VIII, §811(h), Dec. 4, 2003, 117 Stat. 1960, 1967, 1978, 1988, 2012; Pub. L. 111-203, title X, §§1088(a)(2)(C), (7)-(9), July 21, 2010, 1100F, July 21, 2010, 124 Stat. 2087, 2088, 2112; Pub. L. 111-319, §2(a), Dec. 18, 2010, 124 Stat. 3457.
AMENDMENTS 2010-Subsec. (a)(2) to (4). Pub. L. 111-203, §1100F(1), added par. (2), redesignated former pars. (2) and (3) as (3) and (4), respectively, and substituted "paragraph (3)" for "paragraph (2)" in par. (4).Subsec. (d)(2)(B). Pub. L. 111-203, §1088(a)(7), substituted "the Federal Trade Commission, the Federal banking agencies," for "the Federal banking agencies". Pub. L. 111-203, §1088(a)(2)(C), substituted "the Bureau" for "the Commission".Subsec. (e)(1). Pub. L. 111-203, §1088(a)(8), substituted "the Federal Trade Commission, the Commodity Futures Trading Commission, and the Securities and Exchange Commission" for "and the Commission" in introductory provisions. Subsec. (e)(4). Pub. L. 111-319 added par. (4). Subsec. (h)(5)(E). Pub. L. 111-203, §1100F(2), added subpar. (E).Subsec. (h)(6)(A). Pub. L. 111-203, §1088(a)(9), added subpar. (A) and struck out former subpar. (A). Prior to amendment, text read as follows: "The Commission and the Board shall jointly prescribe rules."2003-Subsec. (d)(2). Pub. L. 108-159, §213(a), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: "A statement under paragraph (1) shall include the address and toll-free telephone number of the appropriate notification system established under sectionof this title." Subsec. (e). Pub. L. 108-159, §811(h), repealed Pub. L. 104-208, §2411(c). See 1996 Amendment note below. Pub. L. 108-159, §114, added subsec. (e) and struck out former subsec. (e) designation that had been added with no heading or text by Pub. L. 104-208, §2411(c). See note above and 1996 Amendment note below. Subsec. (f). Pub. L. 108-159, §154(b), added subsec. (f).Subsec. (g). Pub. L. 108-159, §155, added subsec. (g).Subsec. (h). Pub. L. 108-159, §311(a), added subsec. (h).1996-Subsec. (a). Pub. L. 104-208, §2411(a), inserted heading and amended text of subsec. (a) generally. Prior to amendment, text read as follows: "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 report 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."Subsec. (b). Pub. L. 104-208, §2411(e), inserted subsec. heading, designated existing provisions as par. (1) and inserted heading, and added par. (2).Subsec. (c). Pub. L. 104-208, §2411(d), substituted "this section" for "subsections (a) and (b) of this section". Subsec. (d). Pub. L. 104-208, §2411(b), added subsec. (d).Subsec. (e). Pub. L. 104-208, §2411(c), which added subsec. (e) containing subsec. designation, but no heading or text, was repealed by Pub. L. 108-159, §811(h).
EFFECTIVE DATE OF 2010 AMENDMENTPub. L. 111-319, §2(b), Dec. 18, 2010, 124 Stat. 3458, provided that: "The amendment made by this section [amending this section] shall become effective on the date of enactment of this Act [Dec. 18, 2010]." Amendment by Pub. L. 111-203 effective on the designated transfer date, see section 1100H of Pub. L. 111-203 set out as a note under sectionof Title 5, Government Organization and Employees.
EFFECTIVE DATE OF 2003 AMENDMENT Amendment by Pub. L. 108-159 subject to joint regulations establishing effective dates as prescribed by Federal Reserve Board and Federal Trade Commission, except as otherwise provided, see section 3 of Pub. L. 108-159 set out as a note under sectionof this title.
EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104-208 effective 365 days after Sept. 30, 1996, with special rule for early compliance, see section 2420 of Pub. L. 104-208 set out as a note under sectionof this title.
EFFECTIVE DATESection effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of Pub. L. 90-321 as added by Pub. L. 91-508 set out as a note under sectionof this title.
REGULATIONS Pub. L. 108-159, title II, §213(b), Dec. 4, 2003, 117 Stat. 1979, provided that: "Regulations required by section 615(d)(2) of the Fair Credit Reporting Act , as amended by this section, shall be issued in final form not later than 1 year after the date of enactment of this Act [Dec. 4, 2003]."