§ 1681e. — Compliance procedures.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC1681e]
TITLE 15--COMMERCE AND TRADE
CHAPTER 41--CONSUMER CREDIT PROTECTION
SUBCHAPTER III--CREDIT REPORTING AGENCIES
Sec. 1681e. Compliance procedures
(a) Identity and purposes of credit users
Every consumer reporting agency shall maintain reasonable procedures
designed to avoid violations of section 1681c of this title and to limit
the furnishing of consumer reports to the purposes listed under section
1681b of this title. These procedures shall require that prospective
users of the information identify themselves, certify the purposes for
which the information is sought, and certify that the information will
be used for no other purpose. Every consumer reporting agency shall make
a reasonable effort to verify the identity of a new prospective user and
the uses certified by such prospective user prior to furnishing such
user a consumer report. No consumer reporting agency may furnish a
consumer report to any person if it has reasonable grounds for believing
that the consumer report will not be used for a purpose listed in
section 1681b of this title.
(b) Accuracy of report
Whenever a consumer reporting agency prepares a consumer report it
shall follow reasonable procedures to assure maximum possible accuracy
of the information concerning the individual about whom the report
relates.
(c) Disclosure of consumer reports by users allowed
A consumer reporting agency may not prohibit a user of a consumer
report furnished by the agency on a consumer from disclosing the
contents of the report to the consumer, if adverse action against the
consumer has been taken by the user based in whole or in part on the
report.
(d) Notice to users and furnishers of information
(1) Notice requirement
A consumer reporting agency shall provide to any person--
(A) who regularly and in the ordinary course of business
furnishes information to the agency with respect to any
consumer; or
(B) to whom a consumer report is provided by the agency;
a notice of such person's responsibilities under this subchapter.
(2) Content of notice
The Federal Trade Commission shall prescribe the content of
notices under paragraph (1), and a consumer reporting agency shall
be in compliance with this subsection if it provides a notice under
paragraph (1) that is substantially similar to the Federal Trade
Commission prescription under this paragraph.
(e) Procurement of consumer report for resale
(1) Disclosure
A person may not procure a consumer report for purposes of
reselling the report (or any information in the report) unless the
person discloses to the consumer reporting agency that originally
furnishes the report--
(A) the identity of the end-user of the report (or
information); and
(B) each permissible purpose under section 1681b of this
title for which the report is furnished to the end-user of the
report (or information).
(2) Responsibilities of procurers for resale
A person who procures a consumer report for purposes of
reselling the report (or any information in the report) shall--
(A) establish and comply with reasonable procedures designed
to ensure that the report (or information) is resold by the
person only for a purpose for which the report may be furnished
under section 1681b of this title, including by requiring that
each person to which the report (or information) is resold and
that resells or provides the report (or information) to any
other person--
(i) identifies each end user of the resold report (or
information);
(ii) certifies each purpose for which the report (or
information) will be used; and
(iii) certifies that the report (or information) will be
used for no other purpose; and
(B) before reselling the report, make reasonable efforts to
verify the identifications and certifications made under
subparagraph (A).
(3) Resale of consumer report to a Federal agency or
department
Notwithstanding paragraph (1) or (2), a person who procures a
consumer report for purposes of reselling the report (or any
information in the report) shall not disclose the identity of the
end-user of the report under paragraph (1) or (2) if--
(A) the end user is an agency or department of the United
States Government which procures the report from the person for
purposes of determining the eligibility of the consumer
concerned to receive access or continued access to classified
information (as defined in section 1681b(b)(4)(E)(i) of this
title); and
(B) the agency or department certifies in writing to the
person reselling the report that nondisclosure is necessary to
protect classified information or the safety of persons employed
by or contracting with, or undergoing investigation for work or
contracting with the agency or department.
(Pub. L. 90-321, title VI, Sec. 607, as added Pub. L. 91-508, title VI,
Sec. 601, Oct. 26, 1970, 84 Stat. 1130; amended Pub. L. 104-208, div. A,
title II, Sec. 2407, Sept. 30, 1996, 110 Stat. 3009-435; Pub. L. 105-
107, title III, Sec. 311(b), Nov. 20, 1997, 111 Stat. 2256.)
Amendments
1997--Subsec. (e)(3). Pub. L. 105-107 added par. (3).
1996--Subsecs. (c) to (e). Pub. L. 104-208 added subsecs. (c) to
(e).
Effective Date of 1997 Amendment
Amendment by Pub. L. 105-107 effective as if included in chapter 1
of subtitle D of the Economic Growth and Regulatory Paperwork Reduction
Act of 1996, Pub. L. 104-208, as of Sept. 30, 1996, see section 311(c)
of Pub. L. 105-107, set out as a note under section 1681b of this title.
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 1681b, 1681g of this title.
