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Fair Credit Reporting: Section 611(d)

Section 611(d) requires that, upon a consumer’s request, the CRA shall notify certain prior consumer report recipients of the deletion of inaccurate or unverifiable information or of a consumer’s statement of dispute.

Fair Credit Reporting: Section 611(e)

Section 611(e) provides for the Commission to transmit consumer complaints relating to the dispute process to nationwide CRAs, who must report regularly on the disposition of such complaints to the Commission, which in turn must annually report to Congress on the process. Starting July 21, 2011, the Bureau assumes the duties provided in this section.

Fair Credit Reporting: Section 612—Charges for Certain Disclosures 15 USC 1681j

Section 612(a)(1) requires nationwide CRAs to make free annual file disclosures upon consumer request to a centralized source established for that purpose. It also requires nationwide “specialty” CRAs, as defined by section 603(x), to make free annual file disclosures upon consumer request through a “streamlined” process including a toll-free phone number to process such requests. Finally, it directed the Commission to issue regulations to implement this process as to both types of nationwide CRAs.

Fair Credit Reporting: Section 603(p)

Section 603(p) defines the term “consumer reporting agency that compiles and maintains files on consumers on a nationwide basis” to mean a consumer reporting agency that regularly assembles, evaluates, and maintains public record information and credit account information on a regular basis about consumers residing nationwide.

1. RELATION TO OTHER SECTIONS

Fair Credit Reporting: Section 603(q)

Section 603(q) defines the following terms relating to fraud alerts—active duty military consumer, fraud alert, active duty alert, identity theft, identity theft report, and new credit plan. Sections 603(q)(3) and (4) authorized the Commission to further define “identity theft” and “identity theft report.” Starting July 21, 2011, the Bureau assumes rulemaking authority under this provision.

1. RELATION TO OTHER SECTIONS

Fair Credit Reporting: Section 615(a)

Section 615(a) provides that any party who “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” shall provide to the consumer orally, in writing, or electronically: notice of the adverse action; the name, address, and telephone number of the CRA (toll-free telephone number, in the case of a nationwide CRA); a statement that the CRA “did not make the decision to take the adverse action” and is unable to provide specific reasons for the action; and notice of the consumer’s right to obtain

Fair Credit Reporting: Section 615(b)

Section 615(b)(1) provides different rights to consumers who suffer adverse action based on information obtained by “a person other than a consumer reporting agency” in the credit context. At the time the creditor informs the consumer of an adverse action, it must disclose the consumer’s right to make a written request within 60 days for the “nature of the information” that led to the adverse action. Upon receiving such a request, the creditor must comply.

Fair Credit Reporting: Section 615(c)

Section 615(c) provides that a party, when charged with failing to provide adverse action notices, may avoid liability by showing that at the time of the alleged violation, he maintained reasonable procedures to provide the required notice.

Fair Credit Reporting: Section 615(d)

Sections 615(d) requires creditors or insurers who make prescreened offers to consumers to provide a clear and conspicuous statement (in a type size and manner specified under Commission rules) 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 or insurability under which the consumer was selected for the offer; and (C). . . .

Fair Credit Reporting: Section 615(e)

Section 615(e) requires the Commission and the Federal financial agencies to issue guidelines and regulations for financial institutions and certain creditors, regarding identity theft with respect to customers of such entities.

1. IMPLEMENTING RULES

The Commission and the Federal financial agencies issued rules to implement this provision (16 CFR 681.2–.3). See 72 Fed. Reg. 63718, 63772-73 (Nov. 9, 2007)

Fair Credit Reporting: Section 615(f)

Section 615(f) generally prohibits the sale, transfer, or placement for collection of a debt that the creditor has been notified pursuant to section 605B may be the result of identity theft.

Fair Credit Reporting: Section 615(g)

Section 615(g) requires debt collectors handling accounts for a creditor, when notified that an obligation may be the result of fraud or identity theft, to (1) so notify the creditor and (2) upon request by the consumer, furnish application and transaction records information to which a consumer who was “not a victim of identity theft” would be entitled.

1. RELATION TO OTHER SECTIONS

Fair Credit Reporting: Section 621—Administrative Enforcement 15 USC 1681s

Section 621(a)(1) gives the Commission authority to enforce the FCRA with respect to CRAs, users of reports, furnishers of information to CRAs, and all others, except to the extent that section 621(b) provides otherwise, and subject to coordination with the Bureau pursuant to subtitle B of the Consumer Financial Protection Act of 2010.

1. THE COMMISSION’S JURISDICTION

Fair Credit Reporting: Section 623(a)(1)

Section 623(a)(1)(A) prohibits furnishing information to any CRA if the furnisher “knows or has reasonable cause to believe that the information is inaccurate.” However, section 623(a)(1)(C) provides a safe harbor if the furnisher clearly and conspicuously specifies an address where consumers can send disputes concerning the accuracy of information about them.

1. GENERAL

Fair Credit Reporting: Section 623(a)(2)

Section 623(a)(2) provides, “A person who (A) regularly and in the ordinary course of business furnishes information to one or more consumer reporting agencies about the person’s transactions or experiences with any consumer; and (B) has furnished to a consumer reporting agency information that the person determines is not complete or accurate, shall promptly notify the consumer reporting agency of that determination and provide to the agency any corrections to that information, or any additional information, that is necessary to make the information provided by the person

Fair Credit Reporting: Section 623(a)(3)

Section 623(a)(3) provides, “If the completeness or accuracy of any information furnished by any person to any consumer reporting agency is disputed to such person by a consumer, the person may not furnish the information to any consumer reporting agency without notice that such information is disputed by the consumer.”

1. RELATION TO OTHER SECTIONS

Fair Credit Reporting: Section 623(a)(4)

Section 623(a)(4) provides, “A person who regularly and in the ordinary course of business furnishes information to a consumer reporting agency regarding a consumer who has a credit account with that person shall notify the agency of the voluntary closure of the account by the consumer, in information regularly furnished for the period in which the account is closed.”

Fair Credit Reporting: Section 623(a)(9)

Section 623(a)(9) requires an entity whose principal business is “providing medical services, products, or devices,” that furnishes consumer information to a CRA, to notify the CRA that it is a “medical information furnisher” for FCRA purposes.

Fair Credit Reporting: Sections 623(c), 623(d)

Section 623(c) provides that sections 616-617 (which allow individual actions for violations of most provisions of the FCRA) do not apply to violations of section 623(a)&(e) (furnishers providing accurate information to CRAs) or 615(e) (“red flags” rules). Section 623(d) provides that those sections “shall be enforced exclusively by the federal agencies and officials and the State officials identified in section 621.”

Fair Credit Reporting: Section 623(e)

Section 623(e) assigned the Commission and Federal financial agencies responsibility for promulgation of guidelines and regulations regarding the accuracy and integrity of information provided to CRAs. Starting July 21, 2011, the Bureau will assume rulemaking authority under this section.

1. IMPLEMENTING REGULATIONS

Fair Credit Reporting: Section 624—Affiliate Marketing 15 USC 1681s-3

Section 624 provides consumers the right to “opt out” of affiliates’ marketing solicitations. There are exceptions for situations where there is a pre-existing business relationship or a consumer-initiated communication, among others. Section 214(b) of the FACT Act, which is not part of the FCRA, required the Commission and Federal financial agencies to prescribe rules to implement this provision. Starting July 21, 2011, the Bureau, the Commodities Futures Trading Commission, and the Securities and Exchange Commission will assume rulemaking authority under this section.

Fair Credit Reporting: Section 625—Relation to State Laws 15 USC 1681t

Section 625(a) sets forth a general rule that the FCRA preempts state law only to the extent that those laws are inconsistent with the FCRA. Sections 625(b) and (c) then prohibit or limit state law in specified areas, in some cases specifically “grandfathering” specified state laws that were in effect before the relevant FCRA provisions were enacted.