
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC1681a]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
                SUBCHAPTER III--CREDIT REPORTING AGENCIES
 
Sec. 1681a. Definitions; rules of construction

    (a) Definitions and rules of construction set forth in this section 
are applicable for the purposes of this subchapter.
    (b) The term ``person'' means any individual, partnership, 
corporation, trust, estate, cooperative, association, government or 
governmental subdivision or agency, or other entity.
    (c) The term ``consumer'' means an individual.
    (d) Consumer Report.--
        (1) In general.--The term ``consumer report'' means any written, 
    oral, or other communication of any information by a consumer 
    reporting agency bearing on a consumer's credit worthiness,\1\ 
    credit standing, credit capacity, character, general reputation, 
    personal characteristics, or mode of living which is used or 
    expected to be used or collected in whole or in part for the purpose 
    of serving as a factor in establishing the consumer's eligibility 
    for--
---------------------------------------------------------------------------
    \1\ So in original. Probably should be ``creditworthiness,''.
---------------------------------------------------------------------------
            (A) credit or insurance to be used primarily for personal, 
        family, or household purposes;
            (B) employment purposes; or
            (C) any other purpose authorized under section 1681b of this 
        title.

        (2) Exclusions.--The term ``consumer report'' does not include--
            (A) any--
                (i) report containing information solely as to 
            transactions or experiences between the consumer and the 
            person making the report;
                (ii) communication of that information among persons 
            related by common ownership or affiliated by corporate 
            control; or
                (iii) communication of other information among persons 
            related by common ownership or affiliated by corporate 
            control, if it is clearly and conspicuously disclosed to the 
            consumer that the information may be communicated among such 
            persons and the consumer is given the opportunity, before 
            the time that the information is initially communicated, to 
            direct that such information not be communicated among such 
            persons;

            (B) any authorization or approval of a specific extension of 
        credit directly or indirectly by the issuer of a credit card or 
        similar device;
            (C) any report in which a person who has been requested by a 
        third party to make a specific extension of credit directly or 
        indirectly to a consumer conveys his or her decision with 
        respect to such request, if the third party advises the consumer 
        of the name and address of the person to whom the request was 
        made, and such person makes the disclosures to the consumer 
        required under section 1681m of this title; or
            (D) a communication described in subsection (o) of this 
        section.

    (e) The term ``investigative consumer report'' means a consumer 
report or portion thereof in which information on a consumer's 
character, general reputation, personal characteristics, or mode of 
living is obtained through personal interviews with neighbors, friends, 
or associates of the consumer reported on or with others with whom he is 
acquainted or who may have knowledge concerning any such items of 
information. However, such information shall not include specific 
factual information on a consumer's credit record obtained directly from 
a creditor of the consumer or from a consumer reporting agency when such 
information was obtained directly from a creditor of the consumer or 
from the consumer.
    (f) The term ``consumer reporting agency'' means any person which, 
for monetary fees, dues, or on a cooperative nonprofit basis, regularly 
engages in whole or in part in the practice of assembling or evaluating 
consumer credit information or other information on consumers for the 
purpose of furnishing consumer reports to third parties, and which uses 
any means or facility of interstate commerce for the purpose of 
preparing or furnishing consumer reports.
    (g) The term ``file'', when used in connection with information on 
any consumer, means all of the information on that consumer recorded and 
retained by a consumer reporting agency regardless of how the 
information is stored.
    (h) The term ``employment purposes'' when used in connection with a 
consumer report means a report used for the purpose of evaluating a 
consumer for employment, promotion, reassignment or retention as an 
employee.
    (i) The term ``medical information'' means information or records 
obtained, with the consent of the individual to whom it relates, from 
licensed physicians or medical practitioners, hospitals, clinics, or 
other medical or medically related facilities.
    (j) Definitions Relating to Child Support Obligations.--
        (1) Overdue support.--The term ``overdue support'' has the 
    meaning given to such term in section 666(e) of title 42.
        (2) State or local child support enforcement agency.--The term 
    ``State or local child support enforcement agency'' means a State or 
    local agency which administers a State or local program for 
    establishing and enforcing child support obligations.

    (k) Adverse Action.--
        (1) Actions included.--The term ``adverse action''--
            (A) has the same meaning as in section 1691(d)(6) of this 
        title; and
            (B) means--
                (i) a denial or cancellation of, an increase in any 
            charge for, or a reduction or other adverse or unfavorable 
            change in the terms of coverage or amount of, any insurance, 
            existing or applied for, in connection with the underwriting 
            of insurance;
                (ii) a denial of employment or any other decision for 
            employment purposes that adversely affects any current or 
            prospective employee;
                (iii) a denial or cancellation of, an increase in any 
            charge for, or any other adverse or unfavorable change in 
            the terms of, any license or benefit described in section 
            1681b(a)(3)(D) of this title; and
                (iv) an action taken or determination that is--
                    (I) made in connection with an application that was 
                made by, or a transaction that was initiated by, any 
                consumer, or in connection with a review of an account 
                under section 1681b(a)(3)(F)(ii) of this title; and
                    (II) adverse to the interests of the consumer.

        (2) Applicable findings, decisions, commentary, and orders.--For 
    purposes of any determination of whether an action is an adverse 
    action under paragraph (1)(A), all appropriate final findings, 
    decisions, commentary, and orders issued under section 1691(d)(6) of 
    this title by the Board of Governors of the Federal Reserve System 
    or any court shall apply.

    (l) Firm Offer of Credit or Insurance.--The term ``firm offer of 
credit or insurance'' means any offer of credit or insurance to a 
consumer that will be honored if the consumer is determined, based on 
information in a consumer report on the consumer, to meet the specific 
criteria used to select the consumer for the offer, except that the 
offer may be further conditioned on one or more of the following:
        (1) The consumer being determined, based on information in the 
    consumer's application for the credit or insurance, to meet specific 
    criteria bearing on credit worthiness \2\ or insurability, as 
    applicable, that are established--
---------------------------------------------------------------------------
    \2\ So in original. Probably should be ``creditworthiness''.
---------------------------------------------------------------------------
            (A) before selection of the consumer for the offer; and
            (B) for the purpose of determining whether to extend credit 
        or insurance pursuant to the offer.

        (2) Verification--
            (A) that the consumer continues to meet the specific 
        criteria used to select the consumer for the offer, by using 
        information in a consumer report on the consumer, information in 
        the consumer's application for the credit or insurance, or other 
        information bearing on the credit worthiness \2\ or insurability 
        of the consumer; or
            (B) of the information in the consumer's application for the 
        credit or insurance, to determine that the consumer meets the 
        specific criteria bearing on credit worthiness \2\ or 
        insurability.

        (3) The consumer furnishing any collateral that is a requirement 
    for the extension of the credit or insurance that was--
            (A) established before selection of the consumer for the 
        offer of credit or insurance; and
            (B) disclosed to the consumer in the offer of credit or 
        insurance.

    (m) Credit or Insurance Transaction That Is Not Initiated by the 
Consumer.--The term ``credit or insurance transaction that is not 
initiated by the consumer'' does not include the use of a consumer 
report by a person with which the consumer has an account or insurance 
policy, for purposes of--
        (1) reviewing the account or insurance policy; or
        (2) collecting the account.

    (n) State.--The term ``State'' means any State, the Commonwealth of 
Puerto Rico, the District of Columbia, and any territory or possession 
of the United States.
    (o) Excluded Communications.--A communication is described in this 
subsection if it is a communication--
        (1) that, but for subsection (d)(2)(D) of this section, would be 
    an investigative consumer report;
        (2) that is made to a prospective employer for the purpose of--
            (A) procuring an employee for the employer; or
            (B) procuring an opportunity for a natural person to work 
        for the employer;

        (3) that is made by a person who regularly performs such 
    procurement;
        (4) that is not used by any person for any purpose other than a 
    purpose described in subparagraph (A) or (B) of paragraph (2); and
        (5) with respect to which--
            (A) the consumer who is the subject of the communication--
                (i) consents orally or in writing to the nature and 
            scope of the communication, before the collection of any 
            information for the purpose of making the communication;
                (ii) consents orally or in writing to the making of the 
            communication to a prospective employer, before the making 
            of the communication; and
                (iii) in the case of consent under clause (i) or (ii) 
            given orally, is provided written confirmation of that 
            consent by the person making the communication, not later 
            than 3 business days after the receipt of the consent by 
            that person;

            (B) the person who makes the communication does not, for the 
        purpose of making the communication, make any inquiry that if 
        made by a prospective employer of the consumer who is the 
        subject of the communication would violate any applicable 
        Federal or State equal employment opportunity law or regulation; 
        and
            (C) the person who makes the communication--
                (i) discloses in writing to the consumer who is the 
            subject of the communication, not later than 5 business days 
            after receiving any request from the consumer for such 
            disclosure, the nature and substance of all information in 
            the consumer's file at the time of the request, except that 
            the sources of any information that is acquired solely for 
            use in making the communication and is actually used for no 
            other purpose, need not be disclosed other than under 
            appropriate discovery procedures in any court of competent 
            jurisdiction in which an action is brought; and
                (ii) notifies the consumer who is the subject of the 
            communication, in writing, of the consumer's right to 
            request the information described in clause (i).

    (p) Consumer Reporting Agency That Compiles and Maintains Files on 
Consumers on a Nationwide Basis.--The term ``consumer reporting agency 
that compiles and maintains files on consumers on a nationwide basis'' 
means a consumer reporting agency that regularly engages in the practice 
of assembling or evaluating, and maintaining, for the purpose of 
furnishing consumer reports to third parties bearing on a consumer's 
credit worthiness,\3\ credit standing, or credit capacity, each of the 
following regarding consumers residing nationwide:
---------------------------------------------------------------------------
    \3\ So in original. Probably should be ``creditworthiness,''.
---------------------------------------------------------------------------
        (1) Public record information.
        (2) Credit account information from persons who furnish that 
    information regularly and in the ordinary course of business.

(Pub. L. 90-321, title VI, Sec. 603, as added Pub. L. 91-508, title VI, 
Sec. 601, Oct. 26, 1970, 84 Stat. 1128; amended Pub. L. 102-537, 
Sec. 2(b), Oct. 27, 1992, 106 Stat. 3531; Pub. L. 104-208, div. A, title 
II, Sec. 2402, Sept. 30, 1996, 110 Stat. 3009-426; Pub. L. 105-347, 
Sec. 6(1)-(3), Nov. 2, 1998, 112 Stat. 3211.)


                               Amendments

    1998--Subsec. (d)(2)(A)(iii). Pub. L. 105-347, Sec. 6(1), struck out 
``any'' before ``communication of other''.
    Subsec. (o)(1). Pub. L. 105-347, Sec. 6(2), substituted 
``(d)(2)(D)'' for ``(d)(2)(E)''.
    Subsec. (o)(4). Pub. L. 105-347, Sec. 6(3), substituted ``and'' for 
``or'' at end.
    1996--Subsec. (d). Pub. L. 104-208, Sec. 2402(e), inserted subsec. 
heading, designated existing provisions as par. (1) and inserted 
heading, redesignated cls. (1) to (3) as subpars. (A) to (C), 
respectively, added par. (2), and struck out at end ``The term does not 
include (A) any report containing information solely as to transactions 
or experiences between the consumer and the person making the report; 
(B) any authorization or approval of a specific extension of credit 
directly or indirectly by the issuer of a credit card or similar device; 
or (C) any report in which a person who has been requested by a third 
party to make a specific extension of credit directly or indirectly to a 
consumer conveys his decision with respect to such request, if the third 
party advises the consumer of the name and address of the person to whom 
the request was made and such person makes the disclosures to the 
consumer required under section 1681m of this title.''
    Subsec. (k). Pub. L. 104-208, Sec. 2402(a), added subsec. (k).
    Subsec. (l). Pub. L. 104-208, Sec. 2402(b), added subsec. (l).
    Subsec. (m). Pub. L. 104-208, Sec. 2402(c), added subsec. (m).
    Subsec. (n). Pub. L. 104-208, Sec. 2402(d), added subsec. (n).
    Subsec. (o). Pub. L. 104-208, Sec. 2402(f), added subsec. (o).
    Subsec. (p). Pub. L. 104-208, Sec. 2402(g), added subsec. (p).
    1992--Subsec. (j). Pub. L. 102-537 added subsec. (j).


                    Effective Date of 1998 Amendment

    Pub. L. 105-347, Sec. 7, Nov. 2, 1998, 112 Stat. 3211, provided 
that: ``The amendments made by this Act [amending this section and 
sections 1681b, 1681c, 1681g, 1681i, 1681k, and 1681s of this title] 
shall be deemed to have the same effective date [see section 2420 of 
Pub. L. 104-208, set out as a note below] as the amendments made by 
section 2403 of the Consumer Credit Reporting Reform Act of 1996 (Public 
Law 104-208; 110 Stat. 3009-1257 [3009-430]) [amending section 1681b of 
this title].''


                    Effective Date of 1996 Amendment

    Section 2420 of div. A of Pub. L. 104-208 provided that:
    ``(a) In General.--Except as otherwise specifically provided in this 
chapter [chapter 1 (Secs. 2401-2422) of subtitle D of title II of div. A 
of Pub. L. 104-208, see Short Title of 1996 Amendment note set out under 
section 1601 of this title], the amendments made by this chapter shall 
become effective 365 days after the date of enactment of this Act [Sept. 
30, 1996].
    ``(b) Early Compliance.--Any person or other entity that is subject 
to the requirements of this chapter may, at its option, comply with any 
provision of this chapter before the date on which that provision 
becomes effective under this chapter, in which case, each of the 
corresponding provisions of this chapter shall be fully applicable to 
such person or entity.''


                    Effective Date of 1992 Amendment

    Section 2(d) of Pub. L. 102-537 provided that: ``The amendments made 
by this section [enacting section 1681s-1 of this title and amending 
this section] shall take effect on January 1, 1993.''


                     Construction of 1996 Amendment

    Section 2421 of div. A of Pub. L. 104-208 provided that: ``Nothing 
in this chapter [chapter 1 (Secs. 2401-2422) of subtitle D of title II 
of div. A of Pub. L. 104-208, see Short Title of 1996 Amendment note set 
out under section 1601 of this title] or the amendments made by this 
chapter shall be considered to supersede or otherwise affect section 
2721 of title 18, United States Code, with respect to motor vehicle 
records for surveys, marketing, or solicitations.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1679b, 1681m, 1681t, 1692d, 
1692e, 6803, 6806, 6827 of this title; title 12 section 2605; title 18 
section 1030; title 26 sections 6103, 7603; title 31 sections 3701, 
3711; title 38 section 5701; title 42 section 666; title 50 section 438.
