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United States Code (Last Updated: May 24, 2014) |
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Title 15. COMMERCE AND TRADE |
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Chapter 41. CONSUMER CREDIT PROTECTION |
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SubChapter III. CREDIT REPORTING AGENCIES |
§ 1681b. Permissible purposes of consumer reports
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(a) In general Subject to subsection (c) of this section, any consumer reporting agency may furnish a consumer report under the following circumstances and no other: (1) In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a Federal grand jury. (2) In accordance with the written instructions of the consumer to whom it relates. (3) To a person which it has reason to believe— (A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or (B) intends to use the information for employment purposes; or (C) intends to use the information in connection with the underwriting of insurance involving the consumer; or (D) intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant’s financial responsibility or status; or (E) intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or (F) otherwise has a legitimate business need for the information— (i) in connection with a business transaction that is initiated by the consumer; or (ii) to review an account to determine whether the consumer continues to meet the terms of the account. (G) executive departments and agencies in connection with the issuance of government-sponsored individually-billed travel charge cards. (4) In response to a request by the head of a State or local child support enforcement agency (or a State or local government official authorized by the head of such an agency), if the person making the request certifies to the consumer reporting agency that— (A) the consumer report is needed for the purpose of establishing an individual’s capacity to make child support payments or determining the appropriate level of such payments; (B) the paternity of the consumer for the child to which the obligation relates has been established or acknowledged by the consumer in accordance with State laws under which the obligation arises (if required by those laws); (C) the person has provided at least 10 days’ prior notice to the consumer whose report is requested, by certified or registered mail to the last known address of the consumer, that the report will be requested; and (D) the consumer report will be kept confidential, will be used solely for a purpose described in subparagraph (A), and will not be used in connection with any other civil, administrative, or criminal proceeding, or for any other purpose. (5) To an agency administering a State plan under section 654 of title 42 for use to set an initial or modified child support award. (6) To the Federal Deposit Insurance Corporation or the National Credit Union Administration as part of its preparation for its appointment or as part of its exercise of powers, as conservator, receiver, or liquidating agent for an insured depository institution or insured credit union under the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.] or the Federal Credit Union Act [12 U.S.C. 1751 et seq.], or other applicable Federal or State law, or in connection with the resolution or liquidation of a failed or failing insured depository institution or insured credit union, as applicable. (b) Conditions for furnishing and using consumer reports for employment purposes (1) Certification from user A consumer reporting agency may furnish a consumer report for employment purposes only if— (A) the person who obtains such report from the agency certifies to the agency that— (i) the person has complied with paragraph (2) with respect to the consumer report, and the person will comply with paragraph (3) with respect to the consumer report if paragraph (3) becomes applicable; and (ii) information from the consumer report will not be used in violation of any applicable Federal or State equal employment opportunity law or regulation; and (B) the consumer reporting agency provides with the report, or has previously provided, a summary of the consumer’s rights under this subchapter, as prescribed by the Bureau under section 1681g(c)(3) Regulations required The Bureau may, after notice and opportunity for comment, prescribe regulations that permit transactions under paragraph (2) that are determined to be necessary and appropriate to protect legitimate operational, transactional, risk, consumer, and other needs (and which shall include permitting actions necessary for administrative verification purposes), consistent with the intent of paragraph (2) to restrict the use of medical information for inappropriate purposes.
(6) Coordination with other laws No provision of this subsection shall be construed as altering, affecting, or superseding the applicability of any other provision of Federal law relating to medical confidentiality.
References In Text
The Federal Deposit Insurance Act, referred to in subsec. (a)(6), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note set out under section 1811 of Title 12 and Tables.
The Federal Credit Union Act, referred to in subsec. (a)(6), is act June 26, 1934, ch. 750, 48 Stat. 1216, which is classified principally to chapter 14 (§ 1751 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1751 of Title 12 and Tables.
Section 1681g(c) of this title, referred to in subsec. (b)(1)(B), (3)(A)(ii), (B)(ii), was amended generally by Pub. L. 108–159, title II, § 211(c),
Section 1681m(a)(3) of this title, referred to in subsec. (b)(2)(B)(i), was redesignated section 1681m(a)(4) of this title by Pub. L. 111–203, title X, § 1100F(1)(A),
Executive Order No. 12958, referred to in subsec. (b)(4)(D)(i), which was formerly set out under section 435 of Title 50, War and National Defense, was revoked by Ex. Ord. No. 13526, § 6.2(g),
The Health Insurance Portability and Accountability Act of 1996, referred to in subsec. (g)(3)(B), is Pub. L. 104–191,
Section 1179 of such Act, referred to in subsec. (g)(3)(B), probably means section 1179 of the Social Security Act, as added by section 262(a) of Pub. L. 104–191, title II,
Amendments
2010—Subsec. (b)(1)(B), (3)(A)(ii), (B)(ii). Pub. L. 111–203, § 1088(a)(2)(A), substituted “Bureau” for “Federal Trade Commission”.
Subsec. (g)(3)(C). Pub. L. 111–203, § 1088(a)(4)(A), added subpar. (C) and struck out former subpar. (C) which read as follows: “as otherwise determined to be necessary and appropriate, by regulation or order and subject to paragraph (6), by the Commission, any Federal banking agency or the National Credit Union Administration (with respect to any financial institution subject to the jurisdiction of such agency or Administration under paragraph (1), (2), or (3) of section 1681s(b) of this title, or the applicable State insurance authority (with respect to any person engaged in providing insurance or annuities).”
Subsec. (g)(5). Pub. L. 111–203, § 1088(a)(4)(B), added par. (5) and struck out former par. (5) which related to prescription of par. (2) regulations by each Federal banking agency and the National Credit Union Administration and required issuance of final regulations before the end of the 6-month period beginning on
2009—Subsec. (c)(1)(B)(iv). Pub. L. 111–24 added cl. (iv).
2007—Subsec. (a)(3)(G). Pub. L. 110–161 added subpar. (G).
2006—Subsec. (a)(6). Pub. L. 109–351 added par. (6).
2003—Subsec. (a). Pub. L. 108–159, § 811(b), realigned margins.
Subsec. (b)(4)(D) to (F). Pub. L. 108–177 struck out subpars. (D) and (E) and redesignated subpar. (F) as (D). Prior to amendment, subpars. (D) and (E) read as follows:
“(D) Report to the congress.—Except as provided in subparagraph (E), not later than January 31 of each year, the head of each agency and department of the United States Government that exercised authority under this paragraph during the preceding year shall submit a report to the Congress on the number of times the department or agency exercised such authority during the year.
“(E) Reports to congressional intelligence committees.—In the case of a report to be submitted under subparagraph (D) to the congressional intelligence committees (as defined in section 401a of title 50), the submittal date for such report shall be as provided in section 415b of title 50.”
Subsec. (e)(3)(A), (4)(B)(i). Pub. L. 108–159, § 213(c), substituted “5-year period” for “2-year period”.
Subsec. (g). Pub. L. 108–159, § 411(a), amended heading and text of subsec. (g) generally. Prior to amendment, text read as follows: “A consumer reporting agency shall not furnish for employment purposes, or in connection with a credit or insurance transaction, a consumer report that contains medical information about a consumer, unless the consumer consents to the furnishing of the report.”
Subsec. (g)(1). Pub. L. 108–159, § 412(f)(1), inserted “(other than medical contact information treated in the manner required under section 1681c(a)(6) of this title)” after “a consumer report that contains medical information” in introductory provisions.
Subsec. (g)(2). Pub. L. 108–159, § 412(f)(2), inserted “(other than medical information treated in the manner required under section 1681c(a)(6) of this title)” after “a creditor shall not obtain or use medical information”.
2002—Subsec. (b)(4)(D). Pub. L. 107–306, § 811(b)(8)(A)(i), substituted “Except as provided in subparagraph (E), not later than” for “Not later than”.
Subsec. (b)(4)(E), (F). Pub. L. 107–306, § 811(b)(8)(A)(ii), (iii), added subpar. (E) and redesignated former subpar. (E) as (F).
1998—Subsec. (b)(1)(B). Pub. L. 105–347, § 3, inserted “, or has previously provided,” before “a summary”.
Subsec. (b)(2). Pub. L. 105–347, § 2(a), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “A person may not procure a consumer report, or cause a consumer report to be procured, for employment purposes with respect to any consumer, unless—
“(A) a clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes; and
“(B) the consumer has authorized in writing the procurement of the report by that person.”
Subsec. (b)(3). Pub. L. 105–347, § 2(b), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “In using a consumer report for employment purposes, before taking any adverse action based in whole or in part on the report, the person intending to take such adverse action shall provide to the consumer to whom the report relates—
“(A) a copy of the report; and
“(B) a description in writing of the rights of the consumer under this subchapter, as prescribed by the Federal Trade Commission under section 1681g(c)(3) of this title.”
Subsec. (g). Pub. L. 105–347, § 6(4), struck out “or a direct marketing transaction” after “or insurance transaction”.
1997—Subsec. (b)(4). Pub. L. 105–107 added par. (4).
1996—Pub. L. 104–208, §§ 2403(a), 2404(a)(1), designated existing provisions as subsec. (a) and inserted heading, substituted “Subject to subsection (c) of this section, any consumer reporting agency” for “A consumer reporting agency” in introductory provisions, added subpars. (E) and (F) of par. (3), and struck out former subpar. (E) of par. (3) which read as follows: “otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer.”
Subsec. (b). Pub. L. 104–208, § 2403(b), added subsec. (b).
Subsecs. (c) to (e). Pub. L. 104–208, § 2404(a)(2), added subsecs. (c) to (e).
Subsec. (f). Pub. L. 104–208, § 2404(b), added subsec. (f).
Subsec. (g). Pub. L. 104–208, § 2405, added subsec. (g).
Pars. (4), (5). Pub. L. 104–193 added pars. (4) and (5).
1989—Par. (1). Pub. L. 101–73 inserted “, or a subpoena issued in connection with proceedings before a Federal grand jury” before period at end.
Effective Date Of Amendment
Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.
Amendment by Pub. L. 111–24 effective 9 months after
Amendment by Pub. L. 108–177 effective
Amendment by Pub. L. 108–159 subject to joint regulations establishing effective dates as prescribed by Federal Reserve Board and Federal Trade Commission, except as otherwise provided, see section 3 of Pub. L. 108–159, set out as a note under section 1681 of this title.
Amendment by section 411 of Pub. L. 108–159 effective at end of 180-day period beginning on
Pub. L. 108–159, title IV, § 412(g),
Amendment by Pub. L. 105–347 deemed to have same effective date as amendments made by section 2403 of Pub. L. 104–208, see section 7 of Pub. L. 105–347, set out as a note under section 1681a of this title.
Pub. L. 105–107, title III, § 311(c),
Amendment by Pub. L. 104–208 effective 365 days after
For effective date of amendment by Pub. L. 104–193, see section 395(a)–(c) of Pub. L. 104–193, set out as a note under section 654 of Title 42, The Public Health and Welfare.
Miscellaneous
Pub. L. 108–159, title II, § 213(d),
[For definitions of terms used in section 213(d) of Pub. L. 108–159, set out above, see section 2 of Pub. L. 108–159, set out as a Definitions note under section 1681 of this title.]
Pub. L. 108–159, title IV, § 412(d),
Pub. L. 104–208, div. A, title II, § 2404(c),