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Fair Credit Reporting Act
ß 609. Disclosures to consumers [15 U.S.C. ß 1681g]
(a) Information on file; sources; report recipients. Every consumer reporting agency
shall, upon request, and subject to 610(a)(1) [§ 1681h],
clearly and accurately disclose to the consumer:
(1) All information in the consumer's file at the time of the request except
that--
(A) if the consumer to whom the file relates requests that the first 5 digits
of the social security number (or similar identification number) of the consumer
not be included in the disclosure and the consumer reporting agency has received
appropriate proof of the identity of the requester, the consumer reporting agency
shall so truncate such number in such disclosure; and
(B) nothing in this paragraph shall be construed to require a consumer reporting
agency to disclose to a consumer any information concerning credit scores or
any other risk scores or predictors relating to the consumer.
(2) The sources of the information; except that the sources of information acquired
solely for use in preparing an investigative consumer report and actually use
for no other purpose need not be disclosed: Provided, That in the event an action
is brought under this title, such sources shall be available to the plaintiff
under appropriate discovery procedures in the court in which the action is brought.
(3)
(A) Identification of each person (including each end-user identified under
section 607(e)(1) [§ 1681e]) that procured a consumer
report
(i) for employment purposes, during the 2-year period preceding the date
on which the request is made; or
(ii) for any other purpose, during the 1-year period preceding the date on
which the request is made.
(B) An identification of a person under subparagraph (A) shall include
(i) the name of the person or, if applicable, the trade name (written in
full) under which such person conducts business; and
(ii) upon request of the consumer, the address and telephone number of the
person.
(C) Subparagraph (A) does not apply if--
(i) the end user is an agency or department of the United States Government
that procures the report from the person for purposes of determining
the eligibility of the consumer to whom the report relates to receive
access or continued access to classified information (as defined in
section 604(b)(4)(E)(i))
(ii) the head of the agency or department makes a written finding as prescribed
under section 604(b)(4)(A). (4) The dates, original
payees, and amounts of any checks upon which is based any adverse characterization
of the consumer, included in the file at the time of the disclosure.
(5) A record of all inquiries received by the agency during
the 1-year period preceding the request that identified the consumer in connection
with a credit or insurance transaction that was not initiated by the consumer.
(6) If the consumer requests the credit file and not the credit score, a statement
that the consumer may request and obtain a credit score.
(b) Exempt information. The requirements of subsection (a) of this section respecting
the disclosure of sources of information and the recipients of consumer reports
do not apply to information received or consumer reports furnished prior to the
effective date of this title except to the extent that the matter involved is contained
in the files of the consumer reporting agency on that date.
(c) Summary of Rights to Obtain and Dispute Information in Consumer
Reports and to Obtain Credit Scores
(1) Commission Summary of Rights Required
(A) In general. The Commission shall prepare a model summary of the rights
of consumers under this title.
(B) Content of summary. The summary of rights prepared under subparagraph (A)
shall include a description of–
(i) the right of a consumer to obtain a copy of a consumer report under subsection
(a) from each consumer reporting agency;
(ii) the frequency and circumstances under which a consumer is entitled to
receive a consumer report without charge under section 612;
(iii) the right of a consumer to dispute information in the file of the consumer
under section 611;
(iv) the right of a consumer to obtain a credit score from a consumer reporting
agency, and a description of how to obtain a credit score; (v) the method
by which a consumer can contact, and obtain a consumer report from, a consumer
reporting agency without charge, as provided in the regulations of the Commission
prescribed under section 211(c) of the Fair and Accurate Credit Transactions
Act of 2003; and
(vi) the method by which a consumer can contact, and obtain a consumer report
from, a consumer reporting agency described in section 603(w),
as provided in the regulations of the Commission prescribed under section
612(a)(1)(C).
(C) Availability of summary of rights. The Commission shall--
(i) actively publicize the availability of the summary of rights prepared
under this paragraph;
(ii) conspicuously post on its Internet website the availability of such
summary of rights; and
(iii) promptly make such summary of rights available to consumers, on request.
(2) Summary of rights required to be included with agency disclosures. A consumer
reporting agency shall provide to a consumer, with each written disclosure by
the agency to the consumer under this section--
(A) the summary of rights prepared by the Commission under paragraph (1);
(B) in the case of a consumer reporting agency described in section
603(p), a toll-free telephone number established by the agency, at which
personnel are accessible to consumers during normal business hours;
(C) a list of all Federal agencies responsible for enforcing any provision
of this title, and the address and any appropriate phone number of each such
agency, in a form that will assist the consumer in selecting the appropriate
agency;
(D) a statement that the consumer may have additional rights under State law,
and that the consumer may wish to contact a State or local consumer protection
agency or a State attorney general (or the equivalent thereof) to learn of those
rights; and
(E) a statement that a consumer reporting agency is not required to remove
accurate derogatory information from the file of a consumer, unless the information
is outdated under section 605 or cannot be verified.
(d) Summary of Rights of Identity Theft Victims. See also 16 CFR
Part 698, App E 69 Fed. Reg. 69776 (11/30/04)
(1) In general. The Commission, in consultation with the Federal banking agencies
and the National Credit Union Administration, shall prepare a model summary of
the rights of consumers under this title with respect to the procedures for remedying
the effects of fraud or identity theft involving credit, an electronic fund transfer,
or an account or transaction at or with a financial institution or other creditor.
(2) Summary of rights and contact information. Beginning 60 days after the date
on which the model summary of rights is prescribed in final form by the Commission
pursuant to paragraph (1), if any consumer contacts a consumer reporting agency
and expresses a belief that the consumer is a victim of fraud or identity theft
involving credit, an electronic fund transfer, or an account or transaction at
or with a financial institution or other creditor, the consumer reporting agency
shall, in addition to any other action that the agency may take, provide the consumer
with a summary of rights that contains all of the information required by the
Commission under paragraph (1), and information on how to contact the Commission
to obtain more detailed information.
(e) Information Available to Victims
(1) In general. For the purpose of documenting fraudulent transactions resulting
from identity theft, not later than 30 days after the date of receipt of a request
from a victim in accordance with paragraph (3), and subject to verification of
the identity of the victim and the claim of identity theft in accordance with
paragraph (2), a business entity that has provided credit to, provided for consideration
products, goods, or services to, accepted payment from, or otherwise entered into
a commercial transaction for consideration with, a person who has allegedly made
unauthorized use of the means of identification of the victim, shall provide a
copy of application and business transaction records in the control of the business
entity, whether maintained by the business entity or by another person on behalf
of the business entity, evidencing any transaction alleged to be a result of identity
theft to--
(A) the victim;
(B) any Federal, State, or local government law enforcement agency or officer
specified by the victim in such a request; or
(C) any law enforcement agency investigating the identity theft and authorized
by the victim to take receipt of records provided under this subsection.
(2) Verification of identity and claim. Before a business entity provides any
information under paragraph (1), unless the business entity, at its discretion,
otherwise has a high degree of confidence that it knows the identity of the victim
making a request under paragraph (1), the victim shall provide to the business
entity--
(A) as proof of positive identification of the victim, at the election of the
business entity–
(i) the presentation of a government-issued identification card;
(ii) personally identifying information of the same type as was provided
to the business entity by the unauthorized person; or
(iii) personally identifying information that the business entity typically
requests from new applicants or for new transactions, at the time of the victim's
request for information, including any documentation described in clauses
(i) and (ii); and
(B) as proof of a claim of identity theft, at the election of the business
entity--
(i) a copy of a police report evidencing the claim of the victim of identity
theft; and
(ii) a properly completed--
(I) copy of a standardized affidavit of identity theft developed and made
available by the Commission; or
(II) an affidavit of fact that is acceptable to the business entity for
that purpose.
(3) Procedures. The request of a victim under paragraph (1) shall--
(A) be in writing;
(B) be mailed to an address specified by the business entity, if any; and
(C) if asked by the business entity, include relevant information about any
transaction alleged to be a result of identity theft to facilitate compliance
with this section including–
(i) if known by the victim (or if readily obtainable by the victim), the
date of the application or transaction; and
(ii) if known by the victim (or if readily obtainable by the victim), any
other identifying information such as an account or transaction number.
(4) No charge to victim. Information required to be provided under paragraph
(1) shall be so provided without charge.
(5) Authority to decline to provide information. A business entity may decline
to provide information under paragraph (1) if, in the exercise of good faith,
the business entity determines that--
(A) this subsection does not require disclosure of the information;
(B) after reviewing the information provided pursuant to paragraph (2), the
business entity does not have a high degree of confidence in knowing the true
identity of the individual requesting the information;
(C) the request for the information is based on a misrepresentation of fact
by the individual requesting the information relevant to the request for information;
or
(D) the information requested is Internet navigational data or similar information
about a person's visit to a website or online service.
(6) Limitation on liability. Except as provided in section 621,
sections 616 and 617 do not apply to any
violation of this subsection.
(7) Limitation on civil liability. No business entity may be held civilly liable
under any provision of Federal, State, or other law for disclosure, made in good
faith pursuant to this subsection.
(8) No new recordkeeping obligation. Nothing in this subsection creates an obligation
on the part of a business entity to obtain, retain, or maintain information or
records that are not otherwise required to be obtained, retained, or maintained
in the ordinary course of its business or under other applicable law.
(9) Rule of Construction
(A) In general. No provision of subtitle A of title V of Public Law 106-102,
prohibiting the disclosure of financial information by a business entity to
third parties shall be used to deny disclosure of information to the victim
under this subsection.
(B) Limitation. Except as provided in subparagraph (A), nothing in this subsection
permits a business entity to disclose information, including information to
law enforcement under subparagraphs (B) and (C) of paragraph (1), that the business
entity is otherwise prohibited from disclosing under any other applicable provision
of Federal or State law.
(10) Affirmative defense. In any civil action brought to enforce this subsection,
it is an affirmative defense (which the defendant must establish by a preponderance
of the evidence) for a business entity to file an affidavit or answer stating
that--
(A) the business entity has made a reasonably diligent search of its available
business records; and
(B) the records requested under this subsection do not exist or are not reasonably
available.
(11) Definition of victim. For purposes of this subsection, the term “victim”
means a consumer whose means of identification or financial information has been
used or transferred (or has been alleged to have been used or transferred) without
the authority of that consumer, with the intent to commit, or to aid or abet,
an identity theft or a similar crime.
(12) Effective date. This subsection shall become effective 180 days after the
date of enactment of this subsection.
(13) Effectiveness study. Not later than 18 months after the date of enactment
of this subsection, the Comptroller General of the United States shall submit
a report to Congress assessing the effectiveness of this provision.
(f) Disclosure of Credit Scores
(1) In general. Upon the request of a consumer for a credit score, a consumer
reporting agency shall supply to the consumer a statement indicating that the
information and credit scoring model may be different than the credit score that
may be used by the lender, and a notice which shall include--
(A) the current credit score of the consumer or the most recent credit score
of the consumer that was previously calculated by the credit reporting agency
for a purpose related to the extension of credit;
(B) the range of possible credit scores under the model used;
(C) all of the key factors that adversely affected the credit score of the
consumer in the model used, the total number of which shall not exceed 4, subject
to paragraph (9);
(D) the date on which the credit score was created; and
(E) the name of the person or entity that provided the credit score or credit
file upon which the credit score was created.
(2) Definitions. For purposes of this subsection, the following definitions shall
apply:
(A) The term “credit score” --
(i) means a numerical value or a categorization derived from a statistical
tool or modeling system used by a person who makes or arranges a loan to predict
the likelihood of certain credit behaviors, including default (and the numerical
value or the categorization derived from such analysis may also be referred
to as a “risk predictor” or “risk score”); and
(ii) does not include--
(I) any mortgage score or rating of an automated underwriting system that considers
one or more factors in addition to credit information, including the loan to
value ratio, the amount of down payment, or the financial assets of a consumer;
or
(II) any other elements of the underwriting process or underwriting decision.
(B) The term “key factors” means all relevant
elements or reasons adversely affecting the credit score for the particular
individual, listed in the order of their importance based on their effect on
the credit score.
(3) Timeframe and manner of disclosure. The information required by this subsection
shall be provided in the same timeframe and manner as the information described
in subsection (a).
(4) Applicability to certain uses. This subsection shall not be construed so
as to compel a consumer reporting agency to develop or disclose a score if the
agency does not--
(A) distribute scores that are used in connection with residential real property
loans; or
(B) develop scores that assist credit providers in understanding the general
credit behavior of a consumer and predicting the future credit behavior of the
consumer.
(5) Applicability to credit scores developed by another person.
(A) In general. This subsection shall not be construed to require a consumer
reporting agency that distributes credit scores developed by another person
or entity to provide a further explanation of them, or to process a dispute
arising pursuant to section 611, except that the consumer
reporting agency shall provide the consumer with the name and address and website
for contacting the person or entity who developed the score or developed the
methodology of the score.
(B) Exception. This paragraph shall not apply to a consumer reporting agency
that develops or modifies scores that are developed by another person or entity.
(6) Maintenance of credit scores not required. This subsection shall not be construed
to require a consumer reporting agency to maintain credit scores in its files.
(7) Compliance in certain cases. In complying with this subsection, a consumer
reporting agency shall--
(A) supply the consumer with a credit score that is derived from a credit scoring
model that is widely distributed to users by that consumer reporting agency
in connection with residential real property loans or with a credit score that
assists the consumer in understanding the credit scoring assessment of the credit
behavior of the consumer and predictions about the future credit behavior of
the consumer; and
(B) a statement indicating that the information and credit scoring model may
be different than that used by the lender.
(8) Fair and reasonable fee. A consumer reporting agency may charge a fair
and reasonable fee, as determined by the Commission, for providing the
information required under this subsection. See also 69 Fed.
Reg. 64698 (11/08/04)
(9) Use of enquiries as a key factor. If a key factor that adversely affects
the credit score of a consumer consists of the number of enquiries made with respect
to a consumer report, that factor shall be included in the disclosure pursuant
to paragraph (1)(C) without regard to the numerical limitation in such paragraph.
(g) Disclosure of Credit Scores by Certain Mortgage Lenders
(1) In general. Any person who makes or arranges loans and who uses a consumer
credit score, as defined in subsection (f), in connection with an application
initiated or sought by a consumer for a closed end loan or the establishment of
an open end loan for a consumer purpose that is secured by 1 to 4 units of residential
real property (hereafter in this subsection referred to as the “lender”)
shall provide the following to the consumer as soon as reasonably practicable:
(A) Information Required under Subsection (f)
(i) In general. A copy of the information identified in subsection (f) that
was obtained from a consumer reporting agency or was developed and used by
the user of the information.
(ii) Notice under subparagraph (D). In addition to the information provided
to it by a third party that provided the credit score or scores, a lender
is only required to provide the notice contained in subparagraph (D).
(B) Disclosures in Case of Automated Underwriting System
(i) In general. If a person that is subject to this subsection uses an automated
underwriting system to underwrite a loan, that person may satisfy the obligation
to provide a credit score by disclosing a credit score and associated key
factors supplied by a consumer reporting agency.
(ii) Numerical credit score. However, if a numerical credit score is generated
by an automated underwriting system used by an enterprise, and that score
is disclosed to the person, the score shall be disclosed to the consumer consistent
with subparagraph (C).
(iii) Enterprise defined. For purposes of this subparagraph, the term “enterprise”
has the same meaning as in paragraph (6) of section 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992.
(C) Disclosures of credit scores not obtained from a consumer reporting agency.
A person that is subject to the provisions of this subsection and that uses
a credit score, other than a credit score provided by a consumer reporting agency,
may satisfy the obligation to provide a credit score by disclosing a credit
score and associated key factors supplied by a consumer reporting agency.
(D) Notice to home loan applicants. A copy of the following notice, which shall
include the name, address, and telephone number of each consumer reporting agency
providing a credit score that was used: “Notice To The Home Loan Applicant
“In connection with your application for a home loan, the lender must
disclose to you the score that a consumer reporting agency distributed to
users and the lender used in connection with your home loan, and the key factors
affecting your credit scores. “The credit score is a computer generated
summary calculated at the time of the request and based on information that
a consumer reporting agency or lender has on file. The scores are based on
data about your credit history and payment patterns. Credit scores are important
because they are used to assist the lender in determining whether you will
obtain a loan. They may also be used to determine what interest rate you may
be offered on the mortgage. Credit scores can change over time, depending
on your conduct, how your credit history and payment patterns change, and
how credit scoring technologies change. “Because the score is based
on information in your credit history, it is very important that you review
the credit-related information that is being furnished to make sure it is
accurate. Credit records may vary from one company to another. “If you
have questions about your credit score or the credit information that is furnished
to you, contact the consumer reporting agency at the address and telephone
number provided with this notice, or contact the lender, if the lender developed
or generated the credit score. The consumer reporting agency plays no part
in the decision to take any action on the loan application and is unable to
provide you with specific reasons for the decision on a loan application.
“If you have questions concerning the terms of the loan, contact the
lender.”
(E) Actions not required under this subsection. This subsection shall not require
any person to–
(i) explain the information provided pursuant to subsection (f);
(ii) disclose any information other than a credit score or key factors, as
defined in subsection (f);
(iii) disclose any credit score or related information obtained by the user
after a loan has closed;
(iv) provide more than 1 disclosure per loan transaction; or
(v) provide the disclosure required by this subsection when another person
has made the disclosure to the consumer for that loan transaction.
(F) No Obligation for Content
(i) In general. The obligation of any person pursuant to this subsection
shall be limited solely to providing a copy of the information that was received
from the consumer reporting agency.
(ii) Limit on liability. No person has liability under this subsection for
the content of that information or for the omission of any information within
the report provided by the consumer reporting agency.
(G) Person defined as excluding enterprise. As used in this subsection, the
term “person” does not include an enterprise (as defined in paragraph
(6) of section 1303 of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992).
(2) Prohibition on Disclosure Clauses Null and Void
(A) In general. Any provision in a contract that prohibits the disclosure of
a credit score by a person who makes or arranges loans or a consumer reporting
agency is void.
(B) No liability for disclosure under this subsection- A lender shall not have
liability under any contractual provision for disclosure of a credit score pursuant
to this subsection.
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Fair Credit Reporting Act - FCRA - Disclosures to consumers
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