§ 1681a. Definitions; rules of construction
(a)
Definitions and rules of construction set forth in this section are applicable for the purposes of this subchapter.
(b)
The term “person” means any individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity.
(d)
Consumer Report.—
(1)
In general.—
The term “consumer report” means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s credit worthiness,[1] 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—
(2)
Exclusions.—
Except as provided in paragraph (3), the term “consumer report” does not include—
(A)
subject to section
1681s–3 of this title, any—
(i)
report containing information solely as to transactions or experiences between the consumer and the person making the report;
(ii)
communication of that information among persons related by common ownership or affiliated by corporate control; or
(iii)
communication of other information among persons related by common ownership or affiliated by corporate control, if it is clearly and conspicuously disclosed to the consumer that the information may be communicated among such persons and the consumer is given the opportunity, before the time that the information is initially communicated, to direct that such information not be communicated among such persons;
(B)
any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device;
(C)
any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys his or her decision with respect to such request, if the third party advises the consumer of the name and address of the person to whom the request was made, and such person makes the disclosures to the consumer required under section
1681m of this title; or
(3)
Restriction on sharing of medical information.—Except for information or any communication of information disclosed as provided in section
1681b
(g)(3) of this title, the exclusions in paragraph (2) shall not apply with respect to information disclosed to any person related by common ownership or affiliated by corporate control, if the information is—
(e)
The term “investigative consumer report” means 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 with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any such items of information. 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.
(f)
The term “consumer reporting agency” means 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.
(g)
The term “file”, when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.
(h)
The term “employment purposes” when used in connection with a consumer report means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee.
(i)
Medical Information.—
The term “medical information”—
(1)
means 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—
(2)
does not include the age or gender of a consumer, demographic information about the consumer, including a consumer’s residence address or e-mail address, or any other information about a consumer that does not relate to the physical, mental, or behavioral health or condition of a consumer, including the existence or value of any insurance policy.
(j)
Definitions Relating to Child Support Obligations.—
(k)
Adverse Action.—
(1)
Actions included.—
The term “adverse action”—
(B)
means—
(i)
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;
(ii)
a denial of employment or any other decision for employment purposes that adversely affects any current or prospective employee;
(iii)
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
1681b
(a)(3)(D) of this title; and
(iv)
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
1681b
(a)(3)(F)(ii) of this title; and
(2)
Applicable findings, decisions, commentary, and orders.—
For purposes of any determination of whether an action is an adverse action under paragraph (1)(A), all appropriate final findings, decisions, commentary, and orders issued under section
1691
(d)(6) of this title by the Board of Governors of the Federal Reserve System or any court shall apply.
(l)
Firm Offer of Credit or Insurance.—
The term “firm offer of credit or insurance” means 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, except that the offer may be further conditioned on one or more of the following:
(1)
The consumer being determined, based on information in the consumer’s application for the credit or insurance, to meet specific criteria bearing on credit worthiness [3] or insurability, as applicable, that are established—
(2)
Verification—
(A)
that the consumer continues to meet the specific criteria used to select the consumer for the offer, by using information in a consumer report on the consumer, information in the consumer’s application for the credit or insurance, or other information bearing on the credit worthiness [3] or insurability of the consumer; or
(B)
of the information in the consumer’s application for the credit or insurance, to determine that the consumer meets the specific criteria bearing on credit worthiness [3] or insurability.
(m)
Credit or Insurance Transaction That Is Not Initiated by the Consumer.—
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 which the consumer has an account or insurance policy, for purposes of—
(n)
State.—
The term “State” means any State, the Commonwealth of Puerto Rico, the District of Columbia, and any territory or possession of the United States.
(o)
Excluded Communications.—
A communication is described in this subsection if it is a communication—
(4)
that is not used by any person for any purpose other than a purpose described in subparagraph (A) or (B) of paragraph (2); and
(5)
with respect to which—
(A)
the consumer who is the subject of the communication—
(i)
consents orally or in writing to the nature and scope of the communication, before the collection of any information for the purpose of making the communication;
(B)
the person who makes the communication does not, for the purpose of making the communication, make any inquiry that if made by a prospective employer of the consumer who is the subject of the communication would violate any applicable Federal or State equal employment opportunity law or regulation; and
(C)
the person who makes the communication—
(i)
discloses in writing to the consumer who is the subject of the communication, not later than 5 business days after receiving any request from the consumer for such disclosure, the nature and substance of all information in the consumer’s file at the time of the request, except that the sources of any information that is acquired solely for use in making the communication and is actually used for no other purpose, need not be disclosed other than under appropriate discovery procedures in any court of competent jurisdiction in which an action is brought; and
(p)
Consumer Reporting Agency That Compiles and Maintains Files on Consumers on a Nationwide Basis.—
The term “consumer reporting agency that compiles and maintains files on consumers on a nationwide basis” means a consumer reporting agency that regularly engages in the practice of assembling or evaluating, and maintaining, for the purpose of furnishing consumer reports to third parties bearing on a consumer’s credit worthiness,[4] credit standing, or credit capacity, each of the following regarding consumers residing nationwide:
(q)
Definitions Relating to Fraud Alerts.—
(1)
Active duty military consumer.—
The term “active duty military consumer” means a consumer in military service who—
(2)
Fraud alert; active duty alert.—
The terms “fraud alert” and “active duty alert” mean a statement in the file of a consumer that—
(3)
Identity theft.—
The term “identity theft” means a fraud committed using the identifying information of another person, subject to such further definition as the Commission may prescribe, by regulation.
(4)
Identity theft report.—
The term “identity theft report” has the meaning given that term by rule of the Commission, and means, at a minimum, a report—
(r)
Credit and Debit Related Terms—
(3)
Debit card.—
The term “debit card” means any card issued by a financial institution to a consumer for use in initiating an electronic fund transfer from the account of the consumer at such financial institution, for the purpose of transferring money between accounts or obtaining money, property, labor, or services.
(4)
Account and electronic fund transfer.—
The terms “account” and “electronic fund transfer” have the same meanings as in section
1693a of this title.
(5)
Credit and creditor.—
The terms “credit” and “creditor” have the same meanings as in section
1691a of this title.
(s)
Federal Banking Agency.—
The term “Federal banking agency” has the same meaning as in section
1813 of title
12.
(t)
Financial Institution.—
The term “financial institution” means a State or National bank, a State or Federal savings and loan association, a mutual savings bank, a State or Federal credit union, or any other person that, directly or indirectly, holds a transaction account (as defined in section
461
(b) of title
12) belonging to a consumer.
(u)
Reseller.—
The term “reseller” means a consumer reporting agency that—
(w)
Nationwide Specialty Consumer Reporting Agency.—
The term “nationwide specialty consumer reporting agency” means a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis relating to—
(x)
Exclusion of Certain Communications for Employee Investigations.—
(1)
Communications described in this subsection.—
A communication is described in this subsection if—
(C)
the communication is not made for the purpose of investigating a consumer’s credit worthiness,[5] credit standing, or credit capacity; and
(D)
the communication is not provided to any person except—
(ii)
to any Federal or State officer, agency, or department, or any officer, agency, or department of a unit of general local government;
(2)
Subsequent disclosure.—
After taking any adverse action based in whole or in part on a communication described in paragraph (1), the employer shall disclose to the consumer a summary containing the nature and substance of the communication upon which the adverse action is based, except that the sources of information acquired solely for use in preparing what would be but for subsection (d)(2)(D) of this section an investigative consumer report need not be disclosed.
(3)
Self-regulatory organization defined.—
For purposes of this subsection, the term “self-regulatory organization” includes any self-regulatory organization (as defined in section
78c
(a)(26) of this title), any entity established under title I of the Sarbanes-Oxley Act of 2002 [15 U.S.C. 7211 et seq.], any board of trade designated by the Commodity Futures Trading Commission, and any futures association registered with such Commission.
[1] So in original. Probably should be “creditworthiness,”.
[2] So in original. The period probably should be “; and”.
[3] So in original. Probably should be “creditworthiness”.
[4] So in original. Probably should be “creditworthiness,”.
[5] So in original. Probably should be “creditworthiness,”.