Sec. 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.
(c) The term "consumer" means an individual.
(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 -
(A) credit or insurance to be used primarily for personal,
family, or household purposes;
(B) employment purposes; or
(C) any other purpose authorized under section 1681b of this
title.
(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
(D) a communication described in subsection (o) or (x) of
this section.
(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 -
(A) medical information;
(B) an individualized list or description based on the
payment transactions of the consumer for medical products or
services; or
(C) an aggregate list of identified consumers based on
payment transactions for medical products or services.
(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 -
(A) the past, present, or future physical, mental, or
behavioral health or condition of an individual;
(B) the provision of health care to an individual; or
(C) the payment for the provision of health care to an
individual.(!2)
(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. -
(1) Overdue support. - The term "overdue support" has the
meaning given to such term in section 666(e) of title 42.
(2) State or local child support enforcement agency. - The term
"State or local child support enforcement agency" means a State
or local agency which administers a State or local program for
establishing and enforcing child support obligations.
(k) Adverse Action. -
(1) Actions included. - The term "adverse action" -
(A) has the same meaning as in section 1691(d)(6) of this
title; and
(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
(II) adverse to the interests of the consumer.
(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 -
(A) before selection of the consumer for the offer; and
(B) for the purpose of determining whether to extend credit
or insurance pursuant to the offer.
(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.
(3) The consumer furnishing any collateral that is a
requirement for the extension of the credit or insurance that was
-
(A) established before selection of the consumer for the
offer of credit or insurance; and
(B) disclosed to the consumer in the offer of credit or
insurance.
(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 -
(1) reviewing the account or insurance policy; or
(2) collecting the account.
(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 -
(1) that, but for subsection (d)(2)(D) of this section, would
be an investigative consumer report;
(2) that is made to a prospective employer for the purpose of -

(A) procuring an employee for the employer; or
(B) procuring an opportunity for a natural person to work for
the employer;
(3) that is made by a person who regularly performs such
procurement;
(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;
(ii) consents orally or in writing to the making of the
communication to a prospective employer, before the making of
the communication; and
(iii) in the case of consent under clause (i) or (ii) given
orally, is provided written confirmation of that consent by
the person making the communication, not later than 3
business days after the receipt of the consent by that
person;
(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
(ii) notifies the consumer who is the subject of the
communication, in writing, of the consumer's right to request
the information described in clause (i).
(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:
(1) Public record information.
(2) Credit account information from persons who furnish that
information regularly and in the ordinary course of business.
(q) Definitions Relating to Fraud Alerts. -
(1) Active duty military consumer. - The term "active duty
military consumer" means a consumer in military service who -
(A) is on active duty (as defined in section 101(d)(1) of
title 10) or is a reservist performing duty under a call or
order to active duty under a provision of law referred to in
section 101(a)(13) of title 10; and
(B) is assigned to service away from the usual duty station
of the consumer.
(2) Fraud alert; active duty alert. - The terms "fraud alert"
and "active duty alert" mean a statement in the file of a
consumer that -
(A) notifies all prospective users of a consumer report
relating to the consumer that the consumer may be a victim of
fraud, including identity theft, or is an active duty military
consumer, as applicable; and
(B) is presented in a manner that facilitates a clear and
conspicuous view of the statement described in subparagraph (A)
by any person requesting such consumer report.
(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 -
(A) that alleges an identity theft;
(B) that is a copy of an official, valid report filed by a
consumer with an appropriate Federal, State, or local law
enforcement agency, including the United States Postal
Inspection Service, or such other government agency deemed
appropriate by the Commission; and
(C) the filing of which subjects the person filing the report
to criminal penalties relating to the filing of false
information if, in fact, the information in the report is
false.
(5) New credit plan. - The term "new credit plan" means a new
account under an open end credit plan (as defined in section
1602(i) of this title) or a new credit transaction not under an
open end credit plan.
(r) Credit and Debit Related Terms -
(1) Card issuer. - The term "card issuer" means -
(A) a credit card issuer, in the case of a credit card; and
(B) a debit card issuer, in the case of a debit card.
(2) Credit card. - The term "credit card" has the same meaning
as in section 1602 of this title.
(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 -
(1) assembles and merges information contained in the database
of another consumer reporting agency or multiple consumer
reporting agencies concerning any consumer for purposes of
furnishing such information to any third party, to the extent of
such activities; and
(2) does not maintain a database of the assembled or merged
information from which new consumer reports are produced.
(v) Commission. - The term "Commission" means the Federal Trade
Commission.
(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 -
(1) medical records or payments;
(2) residential or tenant history;
(3) check writing history;
(4) employment history; or
(5) insurance claims.
(x) Exclusion of Certain Communications for Employee
Investigations. -
(1) Communications described in this subsection. - A
communication is described in this subsection if -
(A) but for subsection (d)(2)(D) of this section, the
communication would be a consumer report;
(B) the communication is made to an employer in connection
with an investigation of -
(i) suspected misconduct relating to employment; or
(ii) compliance with Federal, State, or local laws and
regulations, the rules of a self-regulatory organization, or
any preexisting written policies of the employer;
(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 -
(i) to the employer or an agent of the employer;
(ii) to any Federal or State officer, agency, or
department, or any officer, agency, or department of a unit
of general local government;
(iii) to any self-regulatory organization with regulatory
authority over the activities of the employer or employee;
(iv) as otherwise required by law; or
(v) pursuant to section 1681f of this title.
(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.

AMENDMENTS
2003 - Subsec. (d)(2). Pub. L. 108-159, Sec. 411(b)(1),
substituted "Except as provided in paragraph (3), the term" for
"The term" in introductory provisions.
Subsec. (d)(2)(A). Pub. L. 108-159, Sec. 214(c)(1), inserted
"subject to section 1681s-3 of this title," after "(A)" in
introductory provisions.
Subsec. (d)(2)(D). Pub. L. 108-159, Sec. 611(b), inserted "or
(x)" after "subsection (o)".
Subsec. (d)(3). Pub. L. 108-159, Sec. 411(b)(2), added par. (3).
Subsec. (i). Pub. L. 108-159, Sec. 411(c), inserted heading and
amended text of subsec. (i) generally. Prior to amendment, text
read as follows: "The term 'medical information' means information
or records obtained, with the consent of the individual to whom it
relates, from licensed physicians or medical practitioners,
hospitals, clinics, or other medical or medically related
facilities."
Subsecs. (q) to (w). Pub. L. 108-159, Sec. 111, added subsecs.
(q) to (w).
Subsec. (x). Pub. L. 108-159, Sec. 611(a), added subsec. (x).
1998 - Subsec. (d)(2)(A)(iii). Pub. L. 105-347, Sec. 6(1), struck
out "any" before "communication of other".
Subsec. (o)(1). Pub. L. 105-347, Sec. 6(2), substituted
"(d)(2)(D)" for "(d)(2)(E)".
Subsec. (o)(4). Pub. L. 105-347, Sec. 6(3), substituted "and" for
"or" at end.
1996 - Subsec. (d). Pub. L. 104-208, Sec. 2402(e), inserted
subsec. heading, designated existing provisions as par. (1) and
inserted heading, redesignated cls. (1) to (3) as subpars. (A) to
(C), respectively, added par. (2), and struck out at end "The term
does not include (A) any report containing information solely as to
transactions or experiences between the consumer and the person
making the report; (B) any authorization or approval of a specific
extension of credit directly or indirectly by the issuer of a
credit card or similar device; or (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 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."
Subsec. (k). Pub. L. 104-208, Sec. 2402(a), added subsec. (k).
Subsec. (l). Pub. L. 104-208, Sec. 2402(b), added subsec. (l).
Subsec. (m). Pub. L. 104-208, Sec. 2402(c), added subsec. (m).
Subsec. (n). Pub. L. 104-208, Sec. 2402(d), added subsec. (n).
Subsec. (o). Pub. L. 104-208, Sec. 2402(f), added subsec. (o).
Subsec. (p). Pub. L. 104-208, Sec. 2402(g), added subsec. (p).
1992 - Subsec. (j). Pub. L. 102-537 added subsec. (j).
EFFECTIVE DATE OF 2003 AMENDMENT
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.
Pub. L. 108-159, title IV, Sec. 411(d), Dec. 4, 2003, 117 Stat.
2002, provided that: "This section [amending this section and
section 1681b of this title] shall take effect at the end of the
180-day period beginning on the date of enactment of this Act [Dec.
4, 2003], except that paragraph (2) of section 604(g) of the Fair
Credit Reporting Act [15 U.S.C. 1681b(g)(2)] (as amended by
subsection (a) of this section) shall take effect on the later of -

"(1) the end of the 90-day period beginning on the date on
which the regulations required under paragraph (5)(B) of such
section 604(g) are issued in final form; or
"(2) the date specified in the regulations referred to in
paragraph (1)."
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105-347, Sec. 7, Nov. 2, 1998, 112 Stat. 3211, provided
that: "The amendments made by this Act [amending this section and
sections 1681b, 1681c, 1681g, 1681i, 1681k, and 1681s of this
title] shall be deemed to have the same effective date [see section
2420 of Pub. L. 104-208, set out as a note below] as the amendments
made by section 2403 of the Consumer Credit Reporting Reform Act of
1996 (Public Law 104-208; 110 Stat. 3009-1257 [3009-430]) [amending
section 1681b of this title]."
EFFECTIVE DATE OF 1996 AMENDMENT
Section 2420 of div. A of Pub. L. 104-208 provided that:
"(a) In General. - Except as otherwise specifically provided in
this chapter [chapter 1 (Secs. 2401-2422) of subtitle D of title II
of div. A of Pub. L. 104-208, see Short Title of 1996 Amendment
note set out under section 1601 of this title], the amendments made
by this chapter shall become effective 365 days after the date of
enactment of this Act [Sept. 30, 1996].
"(b) Early Compliance. - Any person or other entity that is
subject to the requirements of this chapter may, at its option,
comply with any provision of this chapter before the date on which
that provision becomes effective under this chapter, in which case,
each of the corresponding provisions of this chapter shall be fully
applicable to such person or entity."
EFFECTIVE DATE OF 1992 AMENDMENT
Section 2(d) of Pub. L. 102-537 provided that: "The amendments
made by this section [enacting section 1681s-1 of this title and
amending this section] shall take effect on January 1, 1993."
CONSTRUCTION OF 1996 AMENDMENT
Section 2421 of div. A of Pub. L. 104-208 provided that: "Nothing
in this chapter [chapter 1 (Secs. 2401-2422) of subtitle D of title
II of div. A of Pub. L. 104-208, see Short Title of 1996 Amendment
note set out under section 1601 of this title] or the amendments
made by this chapter shall be considered to supersede or otherwise
affect section 2721 of title 18, United States Code, with respect
to motor vehicle records for surveys, marketing, or solicitations."