§ 1681m. — Requirements on users of consumer reports.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 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.
