Section 603 of the Fair Credit Reporting Act (FCRA).
The Fair Credit Reporting Act - Section 603
603. Definitions; rules of construction [15 U.S.C. 1681a]
(a) Definitions and rules of construction set forth in this section are
applicable for the purposes of this title.
(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, 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 604 [1681b].
(2) Exclusions. The term "consumer report" does not include
(A) 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 615 [
1681m]; or
(D) a communication described in subsection (o).
(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) 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.
(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 [Social Security Act, 42 U.S.C. 666(e)].
(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 701(d)(6) of the Equal Credit Opportunity
Act; 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 604(a)(3)(D) [1681b]; 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 604(a)(3)(F)(ii)[1681b]; 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 701(d)(6) of the Equal Credit Opportunity Act 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 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 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 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), 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, 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.
