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—
provide oral, written, or electronic notice of the adverse action to the consumer;
provide to the consumer written or electronic disclosure—
of a numerical credit score as defined in section 1681g(f)(2)(A) of this title
used by such person in taking any adverse action based in whole or in part on any information in a consumer report; and
provide to the consumer orally, in writing, or electronically—
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
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
provide to the consumer an oral, written, or electronic notice of the consumer’s right—
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 (3), which notice shall include an indication of the 60-day period under that section for obtaining such a copy; and
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.
Duties of users making written credit or insurance solicitations on basis of information contained in consumer files
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—
information contained in the consumer’s consumer report was used in connection with the transaction;
the consumer received the offer of credit or insurance because the consumer satisfied the criteria for credit worthiness or insurability under which the consumer was selected for the offer;
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 or insurability or does not furnish any required collateral;
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
the consumer may exercise the right referred to in subparagraph (D) by notifying a notification system established under section 1681b(e) of this title
Disclosure of address and telephone number; format
A statement under paragraph (1) shall—
be presented in such format and in such type size and manner as to be simple and easy to understand, as established by the Bureau, by rule, in consultation with the Federal Trade Commission, the Federal banking agencies, and the National Credit Union Administration.
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 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.
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.
Debt collector communications concerning identity theft
If a person acting as a debt collector (as that term is defined in subchapter V) on behalf of a third party that is a creditor or other user of a consumer report is notified that any information relating to a debt that the person is attempting to collect may be fraudulent or may be the result of identity theft, that person shall—
notify the third party that the information may be fraudulent or may be the result of identity theft; and
upon request of the consumer to whom the debt purportedly relates, provide to the consumer all information to which the consumer would otherwise be entitled if the consumer were not a victim of identity theft, but wished to dispute the debt under provisions of law applicable to that person.
Duties of users in certain credit transactions
Subject to rules prescribed as provided in paragraph (6), if any person uses a consumer report in connection with an application for, or a grant, extension, or other provision of, credit on material terms that are materially less favorable than the most favorable terms available to a substantial proportion of consumers from or through that person, based in whole or in part on a consumer report, the person shall provide an oral, written, or electronic notice to the consumer in the form and manner required by regulations prescribed in accordance with this subsection.
The notice required under paragraph (1) may be provided at the time of an application for, or a grant, extension, or other provision of, credit or the time of communication of an approval of an application for, or grant, extension, or other provision of, credit, except as provided in the regulations prescribed under paragraph (6).
No notice shall be required from a person under this subsection if—
the consumer applied for specific material terms and was granted those terms, unless those terms were initially specified by the person after the transaction was initiated by the consumer and after the person obtained a consumer report; or
the person has provided or will provide a notice to the consumer under subsection (a) in connection with the transaction.
Other notice not sufficient
A person that is required to provide a notice under subsection (a) cannot meet that requirement by providing a notice under this subsection.
Content and delivery of notice
A notice under this subsection shall, at a minimum—
include a statement informing the consumer that the terms offered to the consumer are set based on information from a consumer report;
identify the consumer reporting agency furnishing the report;
include a statement informing the consumer that the consumer may obtain a copy of a consumer report from that consumer reporting agency without charge;
include the contact information specified by that consumer reporting agency for obtaining such consumer reports (including a toll-free telephone number established by the agency in the case of a consumer reporting agency described in section 1681a(p) of this title
include a statement informing the consumer of—
a numerical credit score as defined in section 1681g(f)(2)(A) of this title
, used by such person in making the credit decision described in paragraph (1) based in whole or in part on any information in a consumer report; and
The Bureau shall prescribe rules to carry out this subsection.
Rules required by subparagraph (A) shall address, but are not limited to—
the form, content, time, and manner of delivery of any notice under this subsection;
clarification of the meaning of terms used in this subsection, including what credit terms are material, and when credit terms are materially less favorable;
exceptions to the notice requirement under this subsection for classes of persons or transactions regarding which the agencies determine that notice would not significantly benefit consumers;
a model notice that may be used to comply with this subsection; and
the timing of the notice required under paragraph (1), including the circumstances under which the notice must be provided after the terms offered to the consumer were set based on information from a consumer report.
A person shall not be liable for failure to perform the duties required by this section if, at the time of the failure, the person maintained reasonable policies and procedures to comply with this section.
No civil actions
Sections 1681n and 1681o of this title shall not apply to any failure by any person to comply with this section.
This section shall be enforced exclusively under section 1681s of this title by the Federal agencies and officials identified in that section.
[Pub. L. 90–321, title VI, § 615], as added [Pub. L. 91–508, title VI, § 601], Oct. 26, 1970, [84 Stat. 1133]; amended [Pub. L. 104–208, div. A, title II, § 2411], Sept. 30, 1996, [110 Stat. 3009–443]; [Pub. L. 108–159, title I], §§ 114, 154(b), 155, title II, § 213(a), title III, § 311(a), title VIII, § 811(h), Dec. 4, 2003, [117 Stat. 1960], 1967, 1978, 1988, 2012; [Pub. L. 111–203, title X], §§ 1088(a)(2)(C), (7)–(9), 1100F, July 21, 2010, [124 Stat. 2087], 2088, 2112; [Pub. L. 111–319, § 2(a)], Dec. 18, 2010, [124 Stat. 3457].)