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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

Fair Credit Reporting: Section 623(a)(5)

Section 623(a)(5)(A) provides, “A person who furnishes information to a consumer reporting agency regarding a delinquent account being placed for collection, charged to profit or loss, or subjected to any similar action shall, not later than 90 days after furnishing the information, notify the agency of the date of delinquency on the account, which shall be the month and year of the commencement of the delinquency on the account that immediately preceded the action.”

1. RELATION TO OTHER SECTIONS

Fair Credit Reporting: Section 623(a)(6)

Section 623(a)(6) requires furnishers to have reasonable procedures to respond to any notification that they receive from a CRA about an identity theft “block,” and to prevent refurnishing such “blocked” information. It also states that after a consumer has submitted an identity theft report “at the address specified by (the furnisher) for receiving such reports,” the furnisher may not report such information to a CRA unless it “subsequently knows or is informed by the consumer that the information is correct.”

1. RELATION TO OTHER SECTIONS

Fair Credit Reporting: Section 623(a)(7)

Section 623(a)(7) requires a “financial institution” that regularly reports negative information to nationwide CRAs to provide one clear and conspicuous written notice of that practice to consumers, no later than 30 days after first reporting such information. After providing the notice, the furnisher may provide further negative information “with respect to the same transaction, extension of credit, account, or customer without providing additional notice to the customer.” The Federal Reserve Board was assigned to provide a brief model form for this purpose.

Fair Credit Reporting: Section 623(a)(8)

Section 623(a)(8) allows consumers to directly dispute with furnishers the accuracy of information supplied to CRAs, in accord with rules required to be promulgated by the Commission and Federal financial agencies. (Starting July 21, 2011, the Bureau will assume rulemaking authority under this section.) It requires the furnisher to investigate good faith disputes, considering “all relevant information” submitted by the consumer.

Fair Credit Reporting: Section 623(b)

Section 623(b) requires that a furnisher that receives a dispute notice from a CRA must investigate the disputed information, review all relevant information provided by the CRA, and report the results of the investigation to the CRA. If the furnisher finds that the information is incomplete or inaccurate, it must report those results to all nationwide CRAs to which it furnished the information.

Fair Credit Reporting: Section 626—Disclosures to FBI for Counterintelligence Purposes 15 USC 1681u

Section 626 requires CRAs to provide consumer reports or specific information in their files when a certain supervisory official of the Federal Bureau of Investigation certifies in writing that the report or information “is sought for the conduct of an authorized investigation to protect against international terrorism or clandestine intelligence activities. . . .” It states that the CRA (and its personnel) may not disclose “in any consumer report, that the FBI has sought or obtained” such information or report.

Fair Credit Reporting: Section 627—Disclosures to Governmental Agencies for Counterterrorism Purposes 15 USC 1681v

Section 627 provides for CRAs to provide all information in their files “to a government agency authorized to conduct investigations of, or intelligence or counterintelligence activities or analysis related to, international terrorism when presented with a written certification by [a certain supervisory level official of] such government agency that such information is necessary for the agency’s conduct or such investigation, activity or analysis.” It states that the CRA (and its personnel) may not “disclose to any person, or specify in any consumer report, that a government agency has sou