Fair Credit Reporting Act (FCRA)

§ 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.

(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. Except as provided in paragraph (3), the term "consumer report" does
not include

(A) subject to section 624, 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) or (x).

(3) Restriction on sharing of medical information. Except for information or any
communication of information disclosed as provided in section 604(g)(3), 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

(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” --

(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

(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) The “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) 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) 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) 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) 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

(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) 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.

(q) Definitions relating to fraud alerts.

(1) 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, United States
Code) 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,
United States Code; and

(B) is assigned to service away from the usual duty station of the consumer.

(2) 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) 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) 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) The term “new credit plan” means a new account under an open end credit plan
(as defined in section 103(i) of the Truth in Lending Act) or a new credit
transaction not under an open end credit plan.

(r) Credit and Debit Related Terms

(1) 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) The term “credit card” has the same meaning as in section 103 of the Truth in
Lending Act.

(3) 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) The terms “account” and “electronic fund transfer” have the same meanings as in
section 903 of the Electronic Fund Transfer Act.

(5) The terms “credit” and “creditor” have the same meanings as in section 702 of the
Equal Credit Opportunity Act.

(s) The term “Federal banking agency” has the same meaning as in section 3 of the
Federal Deposit Insurance Act.

(t) 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 19(b) of the Federal Reserve Act) belonging to a consumer.

(u) 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) The term “Commission” means the Federal Trade Commission.

(w) 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) A communication is described in this subsection if--

(A) but for subsection (d)(2)(D), 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, 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 608.

(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) an
investigative consumer report need not be disclosed.

(3) For purposes of this subsection, the term “self-regulatory organization” includes any
self-regulatory organization (as defined in section 3(a)(26) of the Securities
Exchange Act of 1934), any entity established under title I of the Sarbanes-Oxley Act
of 2002, any board of trade designated by the Commodity Futures Trading
Commission, and any futures association registered with such Commission.