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Fair Credit Reporting: Section 603(b)

Section 603(b) defines “person” to mean “any individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency or other entity.”

1. EXAMPLES

The term “person” is broadly defined to include not only individuals, but also universities, creditors, collection agencies, insurance companies, private investigators, and employers.66

Fair Credit Reporting: Section 607(a)

Section 607(a) states: “Every consumer reporting agency shall maintain reasonable procedures designed to avoid violations of section 605 and to limit the furnishing of consumer reports to the permissible purposes listed under section 604. 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.

Fair Credit Reporting: Section 607(b)

Section 607(b) states: “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.”

1. RELATION TO OTHER SECTIONS

Section 623 imposes accuracy duties on creditors, debt collectors, and other furnishers of information to CRAs. It does not expand or reduce CRAs’ duties under this section.284

Fair Credit Reporting: Section 603(d)(1)

Section 603(d)(1) defines “consumer report” to mean “any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s credit worthiness, 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 (A) credit or insurance to be used primarily for personal, family, or household purposes; (B) employment purposes; or (C) any

Fair Credit Reporting: Section 609(d)

Section 609(d) directed the Commission to prepare a model summary of identity theft victim rights under the FCRA. Starting July 21, 2011, the Bureau assumes responsibility for the summary. When consumers contact CRAs stating that they are victims of fraud or identity theft, the section requires CRAs to provide consumers with information in that summary.

1. PRESCRIBED SUMMARY

Fair Credit Reporting: Section 609(e)

Section 609(e) provides a mechanism through which identity theft victims and law enforcers can obtain applications and other records from businesses for transactions made by the alleged identity thief.

1. RELATION TO OTHER SECTIONS

Section 615(g)(2) provides that debt collectors must furnish certain information to identity theft victims.

2. SCOPE

Fair Credit Reporting: Section 603(h)

Section 603(h) defines “employment purposes” to mean “a report used for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee.”

1. RELATION TO OTHER SECTIONS

Fair Credit Reporting: Sections 603(i)(1), 603(i)(2)

Section 603(i)(1) defines the term “medical information” to mean “information or data, whether oral or recorded, in any form or medium, created by or derived from a health care provider or the consumer, that relates to (A) the past, present, or future physical, mental, or behavioral health or condition of an individual; (B) the provision of health care to an individual; or (C) the payment for the provision of health care to an individual.” Section 603(i)(2) excludes ident

Fair Credit Reporting: Section 603(k)(1)(A)

Section 603(k)(1)(A) states that the term adverse action “has the same meaning as in section 701(d)(6) of the Equal Credit Opportunity Act.”

1. RELATION TO OTHER LAWS

Fair Credit Reporting: Section 603(k)(1)(B)(i)

Section 603(k)(1)(B)(i) defines the term adverse action as including “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.”

1. INITIAL PREMIUM

Fair Credit Reporting: Section 603(k)(1)(B)(ii)

Section 603(k)(1)(B)(ii) defines the term adverse action as including “a denial of employment or any other decision for employment purposes that adversely affects any current or prospective employee.”

1. RELATION TO OTHER SECTIONS

The term “employment purposes” is defined in section 603(h).

2. DISCIPLINARY ACTION TAKEN BY AN EMPLOYER

Fair Credit Reporting: Section 603(k)(1)(B)(iii)

Section 603(k)(1)(B)(iii) defines the term adverse action as including “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 604(a)(3)(D).”

1. GENERAL

Subsection 603(k)(1)(B)(iii) provides a specific “adverse action” definition in the context of a consumer’s application for a license or other governmental benefit where the applicant’s financial responsibility or status is a factor that must be considered.

Fair Credit Reporting: Section 603(k)(1)(B)(iv)

Section 603(k)(1)(B)(iv) defines the term adverse action as including “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 604(a)(3)(F)(ii); and (II) adverse to the interests of the consumer.”

1. GENERAL

Fair Credit Reporting: Section 603(l)

Section 603(l) defines the term “firm offer of credit or insurance” to mean “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.” In general, once a consumer accepts such an offer, the entity making the offer cannot condition it on further consumer report information, except that it can verify that the consumer continues to meet the criteria established b

Fair Credit Reporting: Section 603(m)

Section 603(m) states that 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 whom the consumer has an account or insurance policy, for purposes of (1) reviewing the account or insurance policy; or (2) collecting the account.

1. GENERAL

Fair Credit Reporting: Section 603(n)

Section 603(n) defines the term “State” to mean any State, the Commonwealth of Puerto Rico, the District of Columbia, and any territory or possession of the United States.

Fair Credit Reporting: Section 603(o)

Section 603(o) states that certain employment agency communications are exempt from the definition of “consumer report,” where the agency follows prescribed procedures to provide prior notice to, and obtain prior consent from, consumers.

1. EMPLOYMENT AGENCIES

This section exempts from the FCRA communications by employment agencies engaged in procuring (a) jobs for applicants or (b) employees for employers.152

2. EMPLOYMENT SCREENING SERVICES

Fair Credit Reporting: Section 614—Restrictions on Investigative Consumer Reports 15 USC 1681l

Section 614 provides, “Whenever a consumer reporting agency prepares an investigative consumer report, no adverse information in the consumer report (other than information which is a matter of public record) may be included in a subsequent consumer report unless such adverse information has been verified in the process of making such subsequent consumer report, or the adverse information was received within the three-month period preceding the date the subsequent report is furnished.”

Fair Credit Reporting: Section 603(r)

Section 603(r) defines the following credit and debit related terms—card issuer, credit card, debit card, account, electronic fund transfer, credit, and creditor.

Fair Credit Reporting: Section 603(s)

Section 603(s) states, “The term ‘Federal banking agency’ has the same meaning as in section 3 of the Federal Deposit Insurance Act” which in turn defines the term to mean the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the Board of Governors of the Federal Reserve System, or the Federal Deposit Insurance Corporation.

Fair Credit Reporting: Section 603(t)

Section 603(t) defines “financial institution” as “a State or National bank, a State or Federal savings and loan association, a mutual savings bank, a State or Federal credit union” or anyone else that holds a transaction account (such as a checking account) belonging to a consumer.

Fair Credit Reporting: Section 603(u)

Section 603(u) defines “reseller” as a CRA that (1) assembles and merges information from other consumer reporting agencies for purposes of furnishing such information to third parties; and (2) does not maintain a database of the assembled or merged information.

1. RELATION TO OTHER SECTIONS