United StatesFair Credit Reporting Act, consumer reporting agency, user and furnisher duties
In force.
A sensitive categories rule binding public and private bodies.
- Obligation class
- Prohibition, Disclosure, Consent, Data subject rights
As of .
What it requires
- Applies to a consumer reporting agency, to a person that uses a consumer report, and to a person that furnishes information to a consumer reporting agency; a consumer report is a communication of information bearing on a consumer's credit worthiness, character or mode of living that is used as a factor in eligibility for credit, insurance, employment or another purpose section 1681b authorizes.
- If you assemble or evaluate consumer information to furnish consumer reports to third parties, furnish a consumer report only under the circumstances section 1681b(a) lists, and follow reasonable procedures to assure maximum possible accuracy of the information in it.
- If you are a consumer reporting agency, disclose to a consumer on request the information in the consumer's file, and when the consumer disputes an item, conduct a reasonable reinvestigation free of charge before the end of the 30-day period that begins when you receive the notice, which extends by not more than 15 additional days if you receive relevant information from the consumer during that period.
- If you use or obtain a consumer report, do so only for a purpose section 1681b authorizes and certify that purpose; before procuring a report for employment purposes, make a clear and conspicuous written disclosure in a document that consists solely of the disclosure and get the consumer's written authorization, unless the transportation-applicant procedure in section 1681b(b)(2)(B) applies.
- If you use a consumer report for employment purposes and intend to take adverse action based on it, first give the consumer a copy of the report and a written description of the consumer's rights under the Act, unless the transportation-applicant procedure in section 1681b(b)(3)(B) applies.
- If you take adverse action based in whole or in part on a consumer report, give the consumer notice of the action, disclosure of any numerical credit score you used in taking it, the name, address and telephone number of the agency that furnished the report, a statement that the agency did not make the decision, and notice of the consumer's right to a free copy of the report and to dispute its accuracy.
- If you furnish information to a consumer reporting agency, do not furnish information you know or have reasonable cause to believe is inaccurate, and when the agency notifies you of a dispute, investigate, report the results, and modify, delete or permanently block an item found inaccurate, incomplete or unverifiable.
If you get it wrong
Criminal exposureYes
Private right of actionYes
Criminal exposure note
Section 1681q: knowingly and willfully obtaining information on a consumer from a consumer reporting agency under false pretenses is punishable by a fine under title 18, imprisonment for not more than 2 years, or both.
Statutory damages
15 U.S.C. 1681n(a)(1)(A): for a willful failure to comply, the consumer recovers actual damages or damages of not less than $100 and not more than $1,000, so $1,000 is the ceiling of the statutory alternative, together with punitive damages as the court may allow and the costs of the action and reasonable attorney's fees. A natural person who obtains a consumer report under false pretenses or knowingly without a permissible purpose is liable for actual damages or $1,000, whichever is greater.
- As of
- Currency
- USD
- Per person minimum
- 100
Who enforces it
Enforcement body
Federal Trade Commission, under section 1681s(a)(1), except to the extent that enforcement is specifically committed to some other Government agency.
What this law does
The Fair Credit Reporting Act was enacted on , and section 504(d) of the Consumer Credit Protection Act provides that it takes effect upon the expiration of 180 days following its enactment.
It governs a consumer report, which is any communication by a consumer reporting agency of information bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living that is used or expected to be used as a factor in establishing the consumer's eligibility for credit or insurance to be used primarily for personal, family, or household purposes, for employment purposes, or for another purpose section 1681b authorizes.
A consumer reporting agency is any person that, 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 that uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.
A consumer reporting agency may furnish a consumer report only under the circumstances section 1681b(a) lists, among them a court order, the consumer's written instructions, and a recipient it has reason to believe intends to use the report in connection with a credit transaction, for employment purposes, or in connection with the underwriting of insurance.
A person shall not use or obtain a consumer report for any purpose unless the report is obtained for a purpose for which it is authorized to be furnished and the purpose is certified by a prospective user of the report.
Except for a transportation applicant who applies by mail, telephone, computer, or other similar means and instead receives notice orally, in writing, or electronically, a person may not procure a consumer report for employment purposes unless a clear and conspicuous disclosure has been made in writing to the consumer, in a document that consists solely of the disclosure, and the consumer has authorized the procurement in writing.
Before taking adverse action based in whole or in part on a consumer report used for employment purposes, the person must give the consumer a copy of the report and a written description of the consumer's rights, except for a transportation applicant who applies by mail, telephone, computer, or other similar means and receives a notice within 3 business days of the action.
Whenever a consumer reporting agency prepares a consumer report it must follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates. A consumer reporting agency must, upon request and subject to section 1681h(a)(1), clearly and accurately disclose to the consumer all information in the consumer's file at the time of the request, other than credit scores and other risk scores.
If a consumer disputes the completeness or accuracy of an item in the consumer's file, the agency must, free of charge, conduct a reasonable reinvestigation before the end of the 30-day period beginning on the date it receives the notice of the dispute, a period that may be extended by not more than 15 additional days if the agency receives relevant information from the consumer during that period.
A person who takes adverse action against a consumer based in whole or in part on information in a consumer report must give the consumer notice of the action, disclosure of a numerical credit score the person used in taking the action, the name, address, and telephone number of the agency that furnished the report, a statement that the agency did not make the decision, and notice of the consumer's right to a free copy of the report and to dispute its accuracy.
A person shall not furnish information relating to a consumer to a consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate. After receiving notice of a dispute from a consumer reporting agency, a person who furnished the information must investigate, report the results to the agency, and modify, delete, or permanently block an item found inaccurate, incomplete, or unverifiable.
A person who willfully fails to comply with a requirement of the Act is liable to the consumer for actual damages or damages of not less than $100 and not more than $1,000, punitive damages the court allows, and the costs of the action and reasonable attorney's fees. A person who is negligent in failing to comply is liable to the consumer for actual damages and the costs of the action and reasonable attorney's fees.
Except as provided in section 1681s(c)(1)(B), sections 1681n and 1681o do not apply to a violation of section 1681s-2(a), which is enforced exclusively by the Federal agencies and officials and the State officials identified in section 1681s. The Federal Trade Commission is authorized to enforce compliance with the Act under the Federal Trade Commission Act, except to the extent that enforcement is specifically committed to some other Government agency.
If the chief law enforcement officer of a State, or an official or agency designated by a State, has reason to believe that a person has violated the Act, the State may bring an action to enjoin the violation and, subject to section 1681s(c)(5), an action on behalf of the residents of the State to recover damages, and it is awarded the costs of a successful action and reasonable attorney fees.
A person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses shall be fined under title 18, imprisoned for not more than 2 years, or both. An officer or employee of a consumer reporting agency who knowingly and willfully provides information concerning an individual from the agency's files to a person not authorized to receive that information shall be fined under title 18, imprisoned for not more than 2 years, or both.
When LexLint raises it
When your app profile says your app makes high-risk automated decisions or provides financial services.