Section 615 of the Fair Credit Reporting Act (FCRA).
The Fair Credit Reporting Act - Section 615
615. Requirements on users of consumer reports [15 U.S.C. 1681m]
(a) Duties of users taking adverse actions on the basis of information contained
in consumer reports. If any person takes any adverse action with respect to any
consumer that is based in whole or in part on any information contained in a
consumer report, the person shall
(1) provide oral, written, or electronic notice of the adverse action to the
consumer;
(2) provide to the consumer orally, in writing, or electronically
(A) the name, address, and telephone number of the consumer reporting agency
(including a toll-free telephone number established by the agency if the agency
compiles and maintains files on consumers on a nationwide basis) that furnished
the report to the person; and
(B) a statement that the consumer reporting agency did not make the decision to
take the adverse action and is unable to provide the consumer the specific
reasons why the adverse action was taken; and
(3) provide to the consumer an oral, written, or electronic notice of the
consumer's right
(A) to obtain, under section 612 [1681j], a free copy of a consumer report on
the consumer from the consumer reporting agency referred to in paragraph (2),
which notice shall include an indication of the 60-day period under that section
for obtaining such a copy; and
(B) to dispute, under section 611 [1681i], with a consumer reporting agency
the accuracy or completeness of any information in a consumer report furnished
by the agency.
(b) Adverse action based on information obtained from third parties other than
consumer reporting agencies.
(1) In general. Whenever credit for personal, family, or household purposes
involving a consumer is denied or the charge for such credit is increased either
wholly or partly because of information obtained from a person other than a
consumer reporting agency bearing upon the consumer's credit worthiness, credit
standing, credit capacity, character, general reputation, personal
characteristics, or mode of living, the user of such information shall, within a
reasonable period of time, upon the consumer's written request for the reasons
for such adverse action received within sixty days after learning of such
adverse action, disclose the nature of the information to the consumer. The user
of such information shall clearly and accurately disclose to the consumer his
right to make such written request at the time such adverse action is
communicated to the consumer.
(2) Duties of person taking certain actions based on information provided by
affiliate.
(A) Duties, generally. If a person takes an action described in subparagraph (B)
with respect to a consumer, based in whole or in part on information described
in subparagraph (C), the person shall
(i) notify the consumer of the action, including a statement that the consumer
may obtain the information in accordance with clause (ii); and
(ii) upon a written request from the consumer received within 60 days after
transmittal of the notice required by clause (I), disclose to the consumer the
nature of the information upon which the action is based by not later than 30
days after receipt of the request.
(B) Action described. An action referred to in subparagraph (A) is an adverse
action described in section 603(k)(1)(A) [1681a], taken in connection with a
transaction initiated by the consumer, or any adverse action described in clause
(i) or (ii) of section 603(k)(1)(B) [1681a].
(C) Information described. Information referred to in subparagraph (A)
(i) except as provided in clause (ii), is information that
(I) is furnished to the person taking the action by a person related by common
ownership or affiliated by common corporate control to the person taking the
action; and
(II) bears on the credit worthiness, credit standing, credit capacity,
character, general reputation, personal characteristics, or mode of living of
the consumer; and
(ii) does not include
(I) information solely as to transactions or experiences between the consumer
and the person furnishing the information; or
(II) information in a consumer report.
(c) Reasonable procedures to assure compliance. No person shall be held liable
for any violation of this section if he shows by a preponderance of the evidence
that at the time of the alleged violation he maintained reasonable procedures to
assure compliance with the provisions of this section.
(d) Duties of users making written credit or insurance solicitations on the
basis of information contained in consumer files.
(1) In general. Any person who uses a consumer report on any consumer in
connection with any credit or insurance transaction that is not initiated by the
consumer, that is provided to that person under section 604(c)(1)(B) [1681b],
shall provide with each written solicitation made to the consumer regarding the
transaction a clear and conspicuous statement that
(A) information contained in the consumer's consumer report was used in
connection with the transaction;
(B) the consumer received the offer of credit or insurance because the consumer
satisfied the criteria for credit worthiness or insurability under which the
consumer was selected for the offer;
(C) if applicable, the credit or insurance may not be extended if, after the
consumer responds to the offer, the consumer does not meet the criteria used to
select the consumer for the offer or any applicable criteria bearing on credit
worthiness or insurability or does not furnish any required collateral;
(D) the consumer has a right to prohibit information contained in the consumer's
file with any consumer reporting agency from being used in connection with any
credit or insurance transaction that is not initiated by the consumer; and
(E) the consumer may exercise the right referred to in subparagraph (D) by
notifying a notification system established under section 604(e) [1681b].
(2) Disclosure of address and telephone number. A statement under paragraph (1)
shall include the address and toll-free telephone number of the appropriate
notification system established under section 604(e) [1681b].
(3) Maintaining criteria on file. A person who makes an offer of credit or
insurance to a consumer under a credit or insurance transaction described in
paragraph (1) shall maintain on file the criteria used to select the consumer to
receive the offer, all criteria bearing on credit worthiness or insurability, as
applicable, that are the basis for determining whether or not to extend credit
or insurance pursuant to the offer, and any requirement for the furnishing of
collateral as a condition of the extension of credit or insurance, until the
expiration of the 3-year period beginning on the date on which the offer is made
to the consumer.
(4) Authority of federal agencies regarding unfair or deceptive acts or
practices not affected. This section is not intended to affect the authority of
any Federal or State agency to enforce a prohibition against unfair or deceptive
acts or practices, including the making of false or misleading statements in
connection with a credit or insurance transaction that is not initiated by the
consumer.
