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Fair Credit Reporting: Section 603(d)(3)

Section 603(d)(3) provides that the exemptions from the definition of “consumer report” do not apply if the communication includes medical information other than that specified in section 604(g)(3).

1. RELATION TO OTHER SECTIONS

This section cross references section 604(g)(3) and works as follows.

Fair Credit Reporting: Section 603(e)

Section 603(e) defines “investigative consumer report” as “a consumer report or portion thereof in which information on a consumer’s character, general reputation, personal characteristics, or mode of living is obtained through personal interviews. . . . . however, such information shall not include specific factual information on a consumer’s credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when such information was obtained directly from a creditor of the consumer or from the consumer.”

Fair Credit Reporting: Section 603(f)

Section 603(f) defines “consumer reporting agency” as “any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.”

1. RELATION TO OTHER SECTIONS

Fair Credit Reporting: Section 603(g)

Section 603(g) defines “file,” when used in connection with information on any consumer, to mean “all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.”

1. RELATION TO OTHER SECTIONS

Fair Credit Reporting: Section 609(g)

Section 609(g) generally requires any person who “makes or arranges loans and who uses a consumer credit score. . . . in connection with an application initiated or sought by a consumer for a. . . . loan for a consumer purpose that is secured by 1 to 4 units of residential property” to provide consumers with their credit score, along with a required disclosure.

1. APPLIES TO SECOND MORTGAGES

Fair Credit Reporting: Section 611(a)

Section 611(a) provides that “if the completeness or accuracy of any item of information contained in a consumer’s file at a consumer reporting agency is disputed by the consumer and the consumer notifies the agency directly, or indirectly through a reseller, of such dispute, the agency shall, free of charge, conduct a reasonable reinvestigation to determine whether the disputed information is inaccurate and record the current status of the disputed information, or delete the item from the file. . . . .

Fair Credit Reporting: Section 611(b)

Section 611(b) provides, “If the reinvestigation does not resolve the dispute, the consumer may file a brief statement setting forth the nature of the dispute. The consumer reporting agency may limit such statements to not more than one hundred words if it provides the consumer with assistance in writing a clear summary of the dispute.”

Fair Credit Reporting: Section 611(c)

Section 611(c) provides, “Whenever a statement of a dispute is filed, unless there is reasonable grounds to believe that it is frivolous or irrelevant, the consumer reporting agency shall, in any subsequent consumer report containing the information in question, clearly note that it is disputed by the consumer and provide either the consumer’s statement or a clear and accurate codification or summary thereof.”

1. CONSUMER STATEMENT OF DISPUTE

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