by Unknown
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
(ii) the consumer has authorized in writing (which
authorization may be made on the document
referred to in clause (i)) the procurement of the
report by that person.
(B)
Application by mail, telephone, computer, or other simi-
lar means
If a consumer described in subparagraph (C) applies for
employment by mail, telephone, computer, or other simi-
lar means, at any time before a consumer report is pro-
cured or caused to be procured in connection with that
application—
(i) the person who procures the consumer report on the
consumer for employment purposes shall provide to
the consumer, by oral, written, or electronic means,
notice that a consumer report may be obtained for
employment purposes, and a summary of the consum-
er’s rights under section 1681m (a)(3) of this title; and
(ii) the consumer shall have consented, orally, in writ-
ing, or electronically to the procurement of the
report by that person.
(C)
Scope
Subparagraph (B) shall apply to a person procuring a con-
sumer report on a consumer in connection with the
consumer’s application for employment only if
(i) the consumer is applying for a position over which
the Secretary of Transportation has the power to
establish qualifications and maximum hours of ser-
vice pursuant to the provisions of section 31502 of
title 49, or a position subject to safety regulation by a
State transportation agency; and
(ii) as of the time at which the person procures the report
or causes the report to be procured the only interac-
tion between the consumer and the person in con-
nection with that employment application has been
by mail, telephone, computer, or other similar means.
Appendix D: Consumer and Credit Data Privacy Laws
443
(3)
Conditions on use for adverse actions
(A)
In general
Except as provided in subparagraph (B), 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—
(i) a copy of the report; and
(ii) a description in writing of the rights of the con-
sumer under this subchapter, as prescribed by the
Federal Trade Commission under section 1681g
(c)(3) of this title.
(B)
Application by mail, telephone, computer, or other simi-
lar means
(i) If a consumer described in subparagraph (C) applies
for employment by mail, telephone, computer, or other
similar means, and if a person who has procured a
consumer report on the consumer for employment
purposes takes adverse action on the employment
application based in whole or in part on the report, then
the person must provide to the consumer to whom the
report relates, in lieu of the notices required under sub-
paragraph (A) of this section and under section 1681m
(a) of this title, within 3 business days of taking such
action, an oral, written or electronic notification—
(I) that adverse action has been taken based
in whole or in part on a consumer report
received from a consumer reporting agency;
(II) of the name, address and telephone number
of the consumer reporting agency that fur-
nished the consumer report (including a
toll-free telephone number established by
the agency if the agency compiles and main-
tains files on consumers on a nationwide
basis);
(III) that the consumer reporting agency did not
make the decision to take the adverse action
and is unable to provide to the consumer the
specific reasons why the adverse action was
taken; and
(IV) that the consumer may, upon providing
proper identification, request a free copy of
a report and may dispute with the consumer
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Appendix D: Consumer and Credit Data Privacy Laws
reporting agency the accuracy or complete-
ness of any information in a report.
(ii) If, under clause (B)(i)(IV), the consumer requests
a copy of a consumer report from the person who
procured the report, then, within 3 business days
of receiving the consumer’s request, together with
proper identification, the person must send or provide
to the consumer a copy of a report and a copy of the
consumer’s rights as prescribed by the Federal Trade
Commission under section 1681g (c)(3) of this title.
(C)
Scope
Subparagraph (B) shall apply to a person procuring a con-
sumer report on a consumer in connection with the consum-
er’s application for employment only if
(i) the consumer is applying for a position over which
the Secretary of Transportation has the power to
establish qualifications and maximum hours of ser-
vice pursuant to the provisions of section 31502 of
title 49, or a position subject to safety regulation by a
State transportation agency; and
(ii) as of the time at which the person procures the report
or causes the report to be procured the only interac-
tion between the consumer and the person in con-
nection with that employment application has been
by mail, telephone, computer, or other similar means.
(4)
Exception for national security investigations
(A)
In general
In the case of an agency or department of the United States
Government which seeks to obtain and use a consumer
report for employment purposes, paragraph (3) shall not
apply to any adverse action by such agency or depart-
ment which is based in part on such consumer report, if
the head of such agency or department makes a written
finding that—
(i) the consumer report is relevant to a national security
investigation of such agency or department;
(ii) the investigation is within the jurisdiction of such
agency or department;
(iii) there is reason to believe that compliance with
paragraph (3) will—
(I)
endanger the life or physical safety of any
person;
(II) result in flight from prosecution;
Appendix D: Consumer and Credit Data Privacy Laws
445
(III) result in the destruction of, or tampering
with, evidence relevant to the investigation;
(IV) result in the intimidation of a potential wit-
ness relevant to the investigation;
(V) result in the compromise of classified
information; or
(VI) otherwise seriously jeopardize or unduly delay
the investigation or another official proceeding.
(B)
Notification of consumer upon conclusion of
investigation
Upon the conclusion of a national security investigation
described in subparagraph (A), or upon the determination
that the exception under subparagraph (A) is no longer
required for the reasons set forth in such subparagraph, the
official exercising the authority in such subparagraph shall
provide to the consumer who is the subject of the consumer
report with regard to which such finding was made—
(i) a copy of such consumer report with any classified
information redacted as necessary;
(ii) notice of any adverse action which is based, in part,
on the consumer report; and
(iii) the identification with reasonable specificity of the
nature of the investigation for which the consumer
report was sought.
(C)
Delegation by head of agency or department
For purposes of subparagraphs (A) and (B), the head of any
agency or department of the United States Government may
delegate his or her authorities under this paragraph to an offi-
cial of such agency or department who has personnel secu-
rity responsibilities and is a member of the Senior Executive
Service or equivalent civilian or military rank.
(D)
Definitions
For purposes of this paragraph, the following definitions
shall apply:
(i) Classified information The term “classified informa-
tion” means information that is protected from unau-
thorized disclosure under Executive Order No. 12958
or successor orders.
(ii) National security investigation The term “national
security investigation” means any official inquiry
by an agency or department of the United States
Government to determine the eligibility of a con-
sumer to receive access or continued access to
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Appendix D: Consumer and Credit Data Privacy Laws
classified information or to determine whether clas-
sified information has been lost or compromised.
(c) Furnishing reports in connection with credit or insurance trans-
actions that are not initiated by consumer
(1)
In general
A consumer reporting agency may furnish a consumer report
relating to any consumer pursuant to subparagraph (A) or (C)
of subsection (a)(3) of this section in connection with any credit
or insurance transaction that is not initiated by the consumer
only if—
(A) the consumer authorizes the agency to provide such report
to such person; or
(B)
(i) the transaction consists of a firm offer of credit or
insurance;
(ii) the consumer reporting agency has complied with
subsection (e) of this section;
(iii) there is not in effect an election by the consumer,
made in accordance with subsection (e) of this
section, to have the consumer’s name and address
excluded from lists of names provided by the agency
pursuant to this paragraph; and
(iv) the consumer report does not contain a date
of birth that shows that the consumer has not
attained the age of 21, or, if the date of birth on
the consumer report shows that the consumer has
not attained the age of 21, such consumer con-
sents to the consumer reporting agency to such
furnishing.
(2)
Limits on information received under paragraph (1)(B)
A person may receive pursuant to paragraph (1)(B) only—
(A) the name and address of a consumer;
(B) an identifier that is not unique to the consumer and that is
used by the person solely for the purpose of verifying the
identity of the consumer; and
(C) other information pertaining to a consumer that does not
identify the relationship or experience of the consumer
with respect to a particular creditor or other entity.
(3)
Information regarding inquiries
Except as provided in section 1681g (a)(5) of this title, a consumer
reporting agency shall not furnish to any person a record of
Appendix D: Consumer and Credit Data Privacy Laws
447
inquiries in connection with a credit or insurance transaction that
is not initiated by a consumer.
(d) Reserved
(e) Election of consumer to be excluded from lists
(1)
In general
A consumer may elect to have the consumer’s name and address
excluded from any list provided by a consumer reporting
agency under subsection (c)(1)(B) of this section in connec-
tion with a credit or insurance transaction that is not initiated
by the consumer, by notifying the agency in accordance with
paragraph (2) that the consumer does not consent to any use of
a consumer report relating to the consumer in connection with
any credit or insurance transaction that is not initiated by the
consumer.
(2)
Manner of notification
A consumer shall notify a consumer reporting agency under
paragraph (1)—
(A) through the notification system maintained by the agency
under paragraph (5); or
(B) by submitting to the agency a signed notice of election form
issued by the agency for purposes of this subparagraph.
(3)
Response of agency after notification through system
Upon receipt of notification of the election of a consumer
under paragraph (1) through the notification system main-
tained by the agency under paragraph (5), a consumer reporting
agency shall—
(A) inform the consumer that the election is effective only for
the 5-year period following the election if the consumer
does not submit to the agency a signed notice of elec-
tion form issued by the agency for purposes of paragraph
(2)(B); and
(B) provide to the consumer a notice of election form, if
requested by the consumer, not later than 5 business days
after receipt of the notification of the election through the
system established under paragraph (5), in the case of a
request made at the time the consumer provides notifica-
tion through the system.
(4)
Effectiveness of election
An election of a consumer under paragraph (1)
(A) shall be effective with respect to a consumer reporting
agency beginning 5 business days after the date on which
448
Appendix D: Consumer and Credit Data Privacy Laws
the consumer notifies the agency in accordance with
paragraph (2);
(B) shall be effective with respect to a consumer reporting
agency—
(i) subject to subparagraph (C), during the 5-year period
beginning 5 business days after the date on which
the consumer notifies the agency of the election, in
the case of an election for which a consumer noti-
fies the agency only in accordance with parag
raph
(2)(A); or
(ii) until the consumer notifies the agency under sub-
paragraph (C), in the case of an election for which a
consumer notifies the agency in accordance with para-
graph (2)(B);
(C) shall not be effective after the date on which the con-
sumer notifies the agency, through the notification system
established by the agency under paragraph (5), that the
election is no longer effective; and
(D) shall be effective with respect to each affiliate of the agency.
(5)
Notification system
(A)
In general
Each consumer reporting agency that, under subsection (c)(1)(B)
of this section, furnishes a consumer report in connection with a
credit or insurance transaction that is not initiated by a consumer,
shall—
(i)
establish and maintain a notification system,
including a toll-free telephone number, which
permits any consumer whose consumer report is
maintained by the agency to notify the agency,
with appropriate identification, of the consumer’s
election to have the consumer’s name and address
excluded from any such list of names and addresses
provided by the agency for such a transaction; and
(ii) publish by not later than 365 days after September 30,
1996, and not less than annual y thereafter, in a publi-
cation of general circulation in the area served by the
agency—
(I) a notification that information in consumer
files maintained by the agency may be used in
connection with such transactions; and
(II) the
address and toll-free telephone number for
consumers to use to notify the agency of the
consumer’s election under clause (i).
Appendix D: Consumer and Credit Data Privacy Laws
449
(B)
Establishment and maintenance as compliance
Establishment and maintenance of a notification system
(including a toll-free telephone number) and publication by
a consumer reporting agency on the agency’s own behalf
