§1681c Requirements relating to information contained in consumer reports

Summary

Consumer reporting agencies must stop putting old negative information in consumer reports. They cannot report bankruptcies that are more than 10 years old. They cannot report civil suits, civil judgments, or arrest records that are more than 7 years old or older than the governing statute of limitations, whichever is longer. They cannot report paid tax liens older than 7 years from the payment date. They cannot report accounts placed for collection, charged off, or similar adverse items that are more than 7 years old. Other negative items (except criminal convictions) cannot be reported after 7 years. Those 7- and 10-year limits do not apply if the report is for a credit deal of $150,000 or more, life insurance underwriting with a face amount of $150,000 or more, or for hiring someone with an expected annual salary of $75,000 or more. For collection accounts, the 7-year clock starts after a 180-day period beginning on the first delinquency before the account was placed for collection or charged off. That timing rule only applies to items added to a file on or after the date 455 days after September 30, 1996. Consumer reporting agencies also must follow other rules. They cannot show a medical provider’s name, address, or phone number unless the provider asks to be listed, the data is coded so the provider can’t be identified, or the report goes to an insurer for non–property/casualty insurance. Agencies covered by 1681a(p) must not report veteran medical debt that is less than 1 year old, or fully paid/settled veteran medical debt that was delinquent or in collection, if the agency knows it’s veteran debt and follows the Economic Growth, Regulatory Relief, and Consumer Protection Act requirement. If a bankruptcy case is reported, the agency must include the chapter if the source gives it and must note a withdrawal if shown by documentation. Reports that show a credit score must say when the number of credit inquiries was a key reason the score was lower. Agencies must mark accounts a consumer voluntarily closed and must note when information is disputed. Businesses that print electronic receipts may print no more than the last 5 digits of a card number and must not print the card expiration date; this rule took effect 3 years after December 4, 2003 for machines in use before January 1, 2005 and 1 year after December 4, 2003 for machines first used on or after January 1, 2005. If a requester asks for a report and gives an address that substantially differs from the consumer’s file, the agency must tell the requester about the discrepancy. The Bureau, working with banking regulators and the FTC, must write rules advising reasonable steps a report user should take to verify identity and to help fix address mismatches.