§1681e Compliance Procedures

Summary

Consumer reporting agencies must have reasonable procedures to keep reports from being used the wrong way and to limit reports to the purposes listed in section 1681b. They must ask new users to identify themselves, say why they need the report, and promise not to use it for anything else. Agencies must try to check new users’ identities and stated uses before giving a report. They must also use reasonable methods to make the reports as accurate as possible. If a user takes a negative action against a consumer because of a report, the agency cannot stop that user from sharing the report with the consumer. Agencies must give a notice about responsibilities to people who regularly give them information and to people who get reports. The Bureau will set what that notice should say. If someone buys reports to resell them, they must tell the original agency who the final user is and the allowed purposes. Resellers must set up and follow checks so reports are only resold for permitted purposes, get identifying and purpose statements from downstream buyers, and try to verify them. The reseller does not have to name a final user if the user is a U.S. agency checking eligibility for classified access and it gives a written certification that keeping the name secret is needed to protect classified information or safety.