§ 1681a. — Definitions; rules of construction.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 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--
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\1\ So in original. Probably should be ``creditworthiness,''.
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(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--
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\2\ So in original. Probably should be ``creditworthiness''.
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(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:
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\3\ So in original. Probably should be ``creditworthiness,''.
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(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.
