Section 606 of the Fair Credit Reporting Act (FCRA).
The Fair Credit Reporting Act - Section 606
606. Disclosure of investigative consumer reports [15 U.S.C. 1681d]
(a) Disclosure of fact of preparation. A person may not procure or cause to be
prepared an investigative consumer report on any consumer unless
(1) it is clearly and accurately disclosed to the consumer that an investigative
consumer report including information as to his character, general reputation,
personal characteristics and mode of living, whichever are applicable, may be
made, and such disclosure
(A) is made in a writing mailed, or otherwise delivered, to the consumer, not
later than three days after the date on which the report was first requested,
and
(B) includes a statement informing the consumer of his right to request the
additional disclosures provided for under subsection (b) of this section and the
written summary of the rights of the consumer prepared pursuant to section
609(c) [1681g]; and
(2) the person certifies or has certified to the consumer reporting agency that
(A) the person has made the disclosures to the consumer required by paragraph
(1); and
(B) the person will comply with subsection (b). (
b) Disclosure on request of nature and scope of investigation. Any person who
procures or causes to be prepared an investigative consumer report on any
consumer shall, upon written request made by the consumer within a reasonable
period of time after the receipt by him of the disclosure required by subsection
(a)(1) of this section, make a complete and accurate disclosure of the nature
and scope of the investigation requested. This disclosure shall be made in a
writing mailed, or otherwise delivered, to the consumer not later than five days
after the date on which the request for such disclosure was received from the
consumer or such report was first requested, whichever is the later.
(c) Limitation on liability upon showing of reasonable procedures for compliance
with provisions. No person may be held liable for any violation of subsection
(a) or (b) of this section if he shows by a preponderance of the evidence that
at the time of the violation he maintained reasonable procedures to assure
compliance with subsection (a) or (b) of this section.
(d) Prohibitions.
(1) Certification. A consumer reporting agency shall not prepare or furnish
investigative consumer report unless the agency has received a certification
under subsection (a)(2) from the person who requested the report.
(2) Inquiries. A consumer reporting agency shall not make an inquiry for the
purpose of preparing an investigative consumer report on a consumer for
employment purposes if the making of the inquiry by an employer or prospective
employer of the consumer would violate any applicable Federal or State equal
employment opportunity law or regulation.
(3) Certain public record information. Except as otherwise provided in section
613 [1681k], a consumer reporting agency shall not furnish an investigative
consumer report that includes information that is a matter of public record and
that relates to an arrest, indictment, conviction, civil judicial action, tax
lien, or outstanding judgment, unless the agency has verified the accuracy of
the information during the 30-day period ending on the date on which the report
is furnished.
(4) Certain adverse information. A consumer reporting agency shall not prepare
or furnish an investigative consumer report on a consumer that contains
information that is adverse to the interest of the consumer and that is obtained
through a personal interview with a neighbor, friend, or associate of the
consumer or with another person with whom the consumer is acquainted or who has
knowledge of such item of information, unless
(A) the agency has followed reasonable procedures to obtain confirmation of the
information, from an additional source that has independent and direct knowledge
of the information; or
(B) the person interviewed is the best possible source of the information.
