
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC1681m]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
                SUBCHAPTER III--CREDIT REPORTING AGENCIES
 
Sec. 1681m. Requirements on users of consumer reports


(a) Duties of users taking adverse actions on 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 1681j of this title, 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 1681i of this title, 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,\1\ 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.
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    \1\ So in original. Probably should be ``creditworthiness,''.
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        (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 1681a(k)(1)(A) of this title, taken 
        in connection with a transaction initiated by the consumer, or 
        any adverse action described in clause (i) or (ii) of section 
        1681a(k)(1)(B) of this title.

        (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,\1\ 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) Reasonable procedures to assure compliance

    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.

(d) Duties of users making written credit or insurance solicitations on 
        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 1681b(c)(1)(B) of this title, 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 \2\ or insurability under which the consumer was 
        selected for the offer;
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    \2\ So in original. Probably should be ``creditworthiness''.
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            (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 \2\ 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 1681b(e) of this title.

           (2) 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 1681b(e) of this title.

                  (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 \2\ 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.

(Pub. L. 90-321, title VI, Sec. 615, as added Pub. L. 91-508, title VI, 
Sec. 601, Oct. 26, 1970, 84 Stat. 1133; amended Pub. L. 104-208, div. A, 
title II, Sec. 2411, Sept. 30, 1996, 110 Stat. 3009-443.)


                               Amendments

    1996--Subsec. (a). Pub. L. 104-208, Sec. 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, Sec. 2411(e), inserted subsec. 
heading, designated existing provisions as par. (1) and inserted 
heading, and added par. (2).
    Subsec. (c). Pub. L. 104-208, Sec. 2411(d), substituted ``this 
section'' for ``subsections (a) and (b) of this section''.
    Subsec. (d). Pub. L. 104-208, Sec. 2411(b), added subsec. (d).
    Subsec. (e). Pub. L. 104-208, Sec. 2411(c), added subsec. (e) which 
contained subsec. designation, but no heading or text.


                    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 section 1681a of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1681a, 1681b, 1681h, 1681j, 
1681s, 1681t of this title.
