§1681e Compliance Procedures

Summary

Require companies that make consumer reports to have clear, reasonable rules to stop illegal sharing and to only give reports for allowed reasons. They must make people who want a report say who they are and why they need it, and promise not to use it for other things. The companies must try to check new users before giving a report. They must take steps to keep the report information as accurate as they can. If a business uses a report to take a negative action against someone, the company that gave the report cannot block the business from showing the report to that person. The company must also give certain notices to businesses that supply data and to people who get reports, using the form the federal agency sets. If a person buys reports to resell them, they must tell the original report company who the final user is and the permitted reason the final user will use the report. Resellers must have rules to make sure reports are only sold for allowed reasons. They must make each buyer identify the end user, state the reason, promise not to use the report for other reasons, and verify those promises before reselling. One exception: resellers do not have to name the end user if the end user is a U.S. government agency checking eligibility for classified access and the agency puts the need for secrecy in writing.