[House Report 119-166]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-166
======================================================================
HOMEBUYERS PRIVACY PROTECTION ACT
_______
June 20, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hill of Arkansas, from the Committee on Financial Services,
submitted the following
R E P O R T
[To accompany H.R. 2808]
The Committee on Financial Services, to whom was referred
the bill (H.R. 2808) to amend the Fair Credit Reporting Act to
prevent consumer reporting agencies from furnishing consumer
reports under certain circumstances, and for other purposes,
having considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 3
Committee Consideration.......................................... 3
Related Hearings................................................. 5
Committee Votes.................................................. 5
Committee Oversight Findings..................................... 7
Performance Goals and Objectives................................. 7
Committee Cost Estimate.......................................... 7
New Budget Authority and CBO Cost Estimate....................... 7
Unfunded Mandates Statement...................................... 7
Earmark Statement................................................ 7
Federal Advisory Committee Act Statement......................... 7
Applicability to the Legislative Branch.......................... 8
Duplication of Federal Programs.................................. 8
Section-by-Section Analysis of the Legislation................... 8
Changes in Existing Law Made by the Bill, as Reported............ 8
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SEC. 1. SHORT TITLE.
This Act may be cited as the ``Homebuyers Privacy Protection Act''.
SEC. 2. TREATMENT OF PRESCREENING REPORT REQUESTS.
(a) In General.--Section 604(c) of the Fair Credit Reporting Act (15
U.S.C. 1681b(c)) is amended by adding at the end the following:
``(4) Treatment of prescreening report requests.--
``(A) Definitions.--In this paragraph:
``(i) Credit union.--The term `credit union'
means a Federal credit union or a State credit
union, as those terms are defined,
respectively, in section 101 of the Federal
Credit Union Act (12 U.S.C. 1752).
``(ii) Insured depository institution.--The
term `insured depository institution' has the
meaning given the term in section 3 of the
Federal Deposit Insurance Act (12 U.S.C.
1813(c)).
``(iii) Residential mortgage loan.--The term
`residential mortgage loan' has the meaning
given the term in section 1503 of the S.A.F.E.
Mortgage Licensing Act of 2008 (12 U.S.C.
5102).
``(iv) Servicer.--The term `servicer' has the
meaning given the term in section 6(i) of the
Real Estate Settlement Procedures Act of 1974
(12 U.S.C. 2605(i)).
``(B) Limitation.--If a person requests a consumer
report from a consumer reporting agency in connection
with a credit transaction involving a residential
mortgage loan, that agency may not, based in whole or
in part on that request, furnish a consumer report to
another person under this subsection unless--
``(i) the transaction consists of a firm
offer of credit or insurance; and
``(ii) that other person--
``(I) has submitted documentation to
that agency certifying that such other
person has, pursuant to paragraph
(1)(A), the authorization of the
consumer to whom the consumer report
relates; or
``(II)(aa) has originated a current
residential mortgage loan of the
consumer to whom the consumer report
relates;
``(bb) is the servicer of a current
residential mortgage loan of the
consumer to whom the consumer report
relates; or
``(cc)(AA) is an insured depository
institution or credit union; and
``(BB) holds a current account for
the consumer to whom the consumer
report relates.''.
SEC. 3. EFFECTIVE DATE.
This Act, and the amendments made by this Act, shall take effect on
the date that is 180 days after the date of enactment of this Act.
SEC. 4. GAO STUDY.
(a) In General.--The Comptroller General of the United States shall
carry out a study on the value of trigger leads received by text
message that includes input from State regulatory agencies, mortgage
lenders, depository institutions (as defined in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813)), consumer reporting
agencies (as defined in section 603 of the Fair Credit Reporting Act
(15 U.S.C. 1681a)), and consumers.
(b) Report.--Not later than the end of the 12-month period beginning
on the date of enactment of this Act, the Comptroller General shall
submit to Congress a report containing any findings and determinations
made in the study required by subsection (a).
Purpose and Summary
H.R. 2808, the Homebuyers Privacy Protection Act, was
introduced on April 10, 2025, by Representative John Rose (TN-
06). H.R. 2808 amends the Fair Credit Reporting Act (FCRA) to
prohibit credit reporting agencies from furnishing a consumer's
credit report in connection with a residential mortgage loan
unless (1) the requesting party either: (1) provides
documentation certifying that it has the consumer's
authorization; or (2) has an existing relationship with the
consumer, such as being the originator or servicer of the
consumer's current mortgage or an insured depository
institution or credit union holding the consumer's current
account.
Background and Need for Legislation
When a consumer (or lender on behalf of a consumer)
requests a consumer report from a credit reporting agency (CRA)
in connection with a mortgage application, the CRA may notify
other mortgage lenders by selling them a trigger lead regarding
this consumer. Currently, the Fair Credit Reporting Act
requires purchasers of trigger leads to provide a ``firm offer
of credit'' and may not be used simply as a marketing tool.
Consumers may opt out of receiving offers, though the opt-out
process is not widely known by consumers. Theoretically,
trigger leads may enhance competition by providing consumers
with more options that may provide lower rates. However, in
practice, the wide availability of trigger leads has led to
consumers being inundated with phone calls and text messages.
This often confuses consumers who may believe the lender they
were working with sold their information without their consent.
This confusion is likely exacerbated by the fact that some
purchasers of trigger leads may pose as the original mortgage
lender or misrepresent the terms of their offer. Furthermore,
the sheer volume of phone calls and text messages is disruptive
to consumers' daily lives and makes the mortgage process, which
is already difficult for many consumers to navigate, more
inconvenient for individuals trying to purchase a home.
Additionally, the broad sharing of consumer information
with unauthorized third parties--who have no existing
relationship with the consumer--poses consumer privacy risks.
By restricting the purchase of trigger leads to only those
entities that already have a relationship with the consumer,
the bill enhances the protection of Americans' privacy.
Committee Consideration
119TH CONGRESS
On April 10, 2025, Representative Rose introduced H.R.
2808, the Homebuyers Privacy Protection Act, with
Representatives Ritchie Torres (D-NY), Andrew Garbarino (R-NY),
Zach Nunn (R-IA), Mark Amodei (R-NV), Gabe Amo (D-RI), Joe
Neguse (D-CO), Eleanor Holmes Norton (D-DC), Andrew Ogles (R-
TN), Bryan Steil (R-WI), Robert Wittman (R-VA), Frank Lucas (R-
OK), Dusty Johnson (R-SD), William Timmons (R-SC), Jack Bergman
(R-MI), Julia Brownley (D-CA), Thomas Suozzi (D-NY), John
Moolenaar (R-MI), Emanuel Cleaver (D-MO), Stephanie Bice (R-
OK), Cleo Fields (D-LA), Adrian Smith (R-NE), Scott Franklin
(R-FL), David Kustoff (R-TN), Trent Kelly (R-MS), Brittany
Pettersen (D-CO), Michael Guest (R-MS), and Brian Fitzpatrick
(R-PA) as original cosponsors.
Representatives Lisa McClain (R-MI), Nikema Williams (D-
GA), Joyce Beatty (D-OH), Jason Crow (D-CO), Bennie Thompson
(D-MS), Mike Ezell (R-MS), Monica De La Cruz (R-TX), Mike Flood
(R-NE), Dan Meuser (R-PA), Kevin Hern (R-OK), Vern Buchanan (R-
FL), Sanford Bishop (D-GA), Bill Foster (D-IL), Brad Sherman
(D-CA), John Rutherford (R-FL), Mark Alford (R-MO), Frank Mrvan
(D-IN), Glenn Grothman (R-WI), Tim Moore (R-NC), Mike
Haridopolos (R-FL), Daniel Webster (R-FL), Ed Case (D-HI),
Kevin Kiley (R-CA), Don Bacon (R-NE), Warren Davidson (R-OH),
Brad Finstad (R-MN), Eugene Vindman (D-VA), Jared Golden (D-
ME), Bill Huizenga (R-MI), Byron Donalds (R-FL), Marlin
Stutzman (R-IN), Tracey Mann (R-KS), Michael Lawler (R-NY), Tim
Burchett (R-TN), Josh Gottheimer (D-NJ), Nydia Velazquez (D-
NY), Stephen Lynch (D-MA), Gregory Meeks (D-NY), Sarah McBride
(D-DE), Derek Schmidt (R-KS), Ben Cline (R-VA), Darin LaHood
(R-IL), Chuck Fleischmann (R-TN), Michelle Fischbach (R-MN),
Eric Sorensen (D-IL), Anna Paulina Luna (R-FL), Lloyd Smucker
(R-PA), Angie Craig (D-MN), Tom Barrett (R-MI), Troy Downing
(R-MT), David Scott (D-GA), Ralph Norman (R-SC), Janelle Bynum
(D-OR), Deborah Ross (D-NC), Pete Sessions (R-TX), Sam Liccardo
(D-CA), Thomas Tiffany (R-WI), Jennifer Kiggans (R-VA), Michael
Cloud (R-TX), and Robin Kelly (D-IL) were added subsequently as
cosponsors.
The bill was referred solely to the Committee on Financial
Services. The bill was attached to the April 29, 2025, hearing
titled ``Regulatory Overreach: The Price Tag on American
Prosperity.''
On June 10, 2025, the Committee on Financial Services met
in open session to consider, among others, H.R. 2808. The
Committee ordered H.R. 2808, as amended, to be reported
favorably to the House of Representatives.
118TH CONGRESS
On February 7, 2024, Representative Rose introduced H.R.
7297, the Homebuyers Privacy Protection Act, with
Representatives Torres, Blaine Luetkemeyer (R-MO), Wiley Nickel
(D-NC), Bill Posey (R-FL), Pettersen, De La Cruz, Ogles,
Johnson of South Dakota, Bergman, and French Hill (R-AR) as
original cosponsors.
Representatives Steil, Bice, Flood, Nathaniel Moran (R-TX),
Nunn, Meuser, Guy Reschenthaler (R-PA), Mann, Williams of
Georgia, Huizenga, Grothman, Tiffany, Mark Pocan (D-WI),
Cleaver, Earl Blumenauer (D-OR), Sherman, Brownley, Gottheimer,
Suozzi, Jake LaTurner (R-KS), Bacon, Donalds, Velazquez, Chris
Pappas (D-NH), Rutherford, Neguse, Ross, Burchett, Kelly
Armstrong (R-ND), Jared Moskowitz (D-FL), Smith of Nebraska,
Norton, Scott Peters (D-CA), Mark Green (R-TN), Lucas, Sylvia
Garcia (D-TX), Wittman, Meeks, Steven Horsford (D-NV), McClain,
Crow, Amo, Suzanne Bonamici (D-OR), Ashley Hinson (R-IA),
Mariannette Miller-Meeks (R-IA), David Scott of Georgia,
Alexander Mooney (R-WV), Dan Goldman (D-NY), Beatty, LaHood,
Greg Landsman (D-OH), Lawler, Timmons, Erin Houchin (R-IN), Tom
Emmer (R-MN), Kelly of Mississippi, Guest, Jake Auchincloss (D-
MA), Ami Bera (D-CA), Donald Davis (D-NC), Garbarino, Kiley,
Amodei, Franklin, Cloud, Darrell Issa (R-CA), Buchanan, Yadira
Caraveo (D-CO), Mark DeSaulnier (D-CA), Sharice Davids (D-KS),
Hern, Rick Larsen (D-WA), Norman, Becca Balint (D-VT),
Fitzpatrick, Foster, Sean Casten (D-IL), Kelly of Illinois,
Sorensen, Kustoff, and Mike Thompson (D-CA) were added
subsequently as cosponsors. The bill is an earlier iteration of
H.R. 2808. The bill was referred solely to the Committee on
Financial Services.
Related Hearings
Pursuant to clause 3(c)(6) of rule XIII of the Rules of the
House of Representatives, the following hearing was used to
develop H.R. 2808:
The Financial Institutions Subcommittee of the Committee on
Financial Services held a hearing titled, ``Regulatory
Overreach: The Price Tag on American Prosperity.'' H.R. 2808
was attached to the hearing. The following witnesses testified
at the hearing: Ms. Sarah Flowers, Senior Vice President,
Senior Associate General Counsel, Bank Policy Institute; Mr. J.
Michael Radcliffe, Chairman and Chief Executive Officer,
Community Financial Services Bank (Benton, KY); Ms. Margaret E.
Tahyar, Partner, Head of Financial Institutions Group, Davis
Polk & Wardwell LLP; and The Honorable Graham Steele, Academic
Fellow, Rock Center for Corporate Governance, Stanford Law
School.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee Report to include for
each record vote on a motion to report the measure or matter
and on any amendments offered to the measure or matter the
total number of votes for and against and the names of the
Members voting for and against.
On June 10, 2025, the Committee ordered H.R. 2808, as
amended, to be reported favorably to the House by a recorded
vote of 46 yeas and 0 nays, a quorum being present. (Record
Vote No. FC-133).
The Committee considered the following amendments to H.R.
2808:
Representative John Rose (R-TN) offered an
amendment in the nature of a substitute, which added a
requirement for the Comptroller General of the United
States to conduct a study on the value of trigger leads
received by text message. The study would include input
from state regulatory agencies, mortgage lenders,
depository institutions, consumer reporting agencies,
and consumers. It also requires the Comptroller to
submit a report to Congress within 12 months of
enactment. The amendment included minor edits and
technical changes. This amendment was adopted by a
voice vote.
Representative Young Kim (R-CA) offered an
amendment (No. 1), designated KIMCA_035. This amendment
would revise the underlying bill by prohibiting certain
forms of consumer contact related to credit offers,
allowing only mail, email, or text message
communications. It would also replace Section 4 of the
underlying bill with a requirement for a GAO study on
the impact of the bill's changes to the Fair Credit
Reporting Act, specifically on mortgage market
competition, consumer access to credit, and privacy.
The study would assess whether exemptions to the new
rules are necessary and provide recommendations to
Congress. This amendment was withdrawn.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Oversight Findings
Pursuant to clause 3(c) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee, based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 2808 to limit the
ability of credit reporting agencies (CRAs) to sell trigger
leads to mortgage brokers and lenders when a consumer's credit
report is pulled in relation to a mortgage loan application.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 2808. The
Committee has requested but not received a cost estimate from
the Director of the Congressional Budget Office. However,
pursuant to clause 3(d)(1) of House rule XIII, the Committee
will adopt as its own the cost estimate by the Director of the
Congressional Budget Office once it has been prepared.
New Budget Authority and CBO Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, a cost estimate was not made
available to the Committee in time for the filing of this
report. The Chairman of the Committee shall cause such estimate
to be printed in the Congressional Record upon its receipt by
the Committee.
Unfunded Mandates Statement
The Committee has requested but not received from the
Director of the Congressional Budget Office an estimate of the
Federal mandates pursuant to section 423 of the Unfunded
Mandates Reform Act. The Committee will adopt the estimate once
it has been prepared by the Director.
Earmark Statement
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the resolution and states that the provisions
of the bill do not contain any congressional earmarks, limited
tax benefits, or limited tariff benefits within the meaning of
the rule.
Federal Advisory Committee Act Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
Federal program, including any program that was included in a
report to Congress pursuant to section 21 of the Public Law
111-139 or the most recent Catalog of Federal Domestic
Assistance.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This Act may be cited as the ``Homebuyers Privacy
Protection Act.''
Section 2. Treatment of prescreening report requests
This section amends Section 604(c) of the Fair Credit
Reporting Act to impose limits on how consumer reporting
agencies may furnish prescreened consumer reports in connection
with residential mortgage loan credit inquiries. It prohibits
consumer reporting agencies from providing these reports to
other parties unless the request involves a firm offer of
credit or insurance. Additionally, the recipient of the report
must either have the consumer's explicit authorization or an
existing relationship with the consumer. Acceptable
relationships include having originated the consumer's current
residential mortgage loan, serving as the servicer of that
loan, or being an insured depository institution or credit
union that maintains an active account for the consumer.
Section 3. Effective date
This section establishes that the Act and its amendments
will take effect 180 days after the date of enactment. This
delayed effective date is intended to give institutions time to
update practices and ensure compliance with the new
requirements.
Section 4. GAO study
This section requires the Comptroller General of the United
States to conduct a study evaluating the value and consumer
impact of trigger leads received via text message. The study
must incorporate feedback from state regulatory agencies,
mortgage lenders, depository institutions, consumer reporting
agencies, and consumers. A final report with findings and
conclusions must be submitted to Congress within 12 months of
the Act's enactment.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
FAIR CREDIT REPORTING ACT
TITLE VI--CONSUMER CREDIT REPORTING
* * * * * * *
Sec. 604. Permissible purposes of reports
(a) In General.--Subject to subsection (c), any consumer
reporting agency may furnish a consumer report under the
following circumstances and no other:
(1) In response to the order of a court having
jurisdiction to issue such an order, a subpoena issued
in connection with proceedings before a Federal grand
jury, or a subpoena issued in accordance with section
5318 of title 31, United States Code, or section 3486
of title 18, United States Code.
(2) In accordance with the written instructions of
the consumer to whom it relates.
(3) To a person which it has reason to believe--
(A) intends to use the information in
connection with a credit transaction involving
the consumer on whom the information is to be
furnished and involving the extension of credit
to, or review or collection of an account of,
the consumer; or
(B) intends to use the information for
employment purposes; or
(C) intends to use the information in
connection with the underwriting of insurance
involving the consumer; or
(D) intends to use the information in
connection with a determination of the
consumer's eligibility for a license or other
benefit granted by a governmental
instrumentality required by law to consider an
applicant's financial responsibility or status;
or
(E) intends to use the information, as a
potential investor or servicer, or current
insurer, in connection with a valuation of, or
an assessment of the credit or prepayment risks
associated with, an existing credit obligation;
or
(F) otherwise has a legitimate business need
for the information--
(i) in connection with a business
transaction that is initiated by the
consumer; or
(ii) to review an account to
determine whether the consumer
continues to meet the terms of the
account.
(G) executive departments and agencies in
connection with the issuance of government-
sponsored individually-billed travel charge
cards.
(4) In response to a request by the head of a State
or local child support enforcement agency (or a State
or local government official authorized by the head of
such an agency), if the person making the request
certifies to the consumer reporting agency that--
(A) the consumer report is needed for the
purpose of establishing an individual's
capacity to make child support payments,
determining the appropriate level of such
payments, or enforcing a child support order,
award, agreement, or judgment;
(B) the parentage of the consumer for the
child to which the obligation relates has been
established or acknowledged by the consumer in
accordance with State laws under which the
obligation arises (if required by those laws);
and
(C) the consumer report will be kept
confidential, will be used solely for a purpose
described in subparagraph (A), and will not be
used in connection with any other civil,
administrative, or criminal proceeding, or for
any other purpose.
(5) To an agency administering a State plan under
section 454 of the Social Security Act (42 U.S.C. 654)
for use to set an initial or modified child support
award.
(6) To the Federal Deposit Insurance Corporation or
the National Credit Union Administration as part of its
preparation for its appointment or as part of its
exercise of powers, as conservator, receiver, or
liquidating agent for an insured depository institution
or insured credit union under the Federal Deposit
Insurance Act or the Federal Credit Union Act, or other
applicable Federal or State law, or in connection with
the resolution or liquidation of a failed or failing
insured depository institution or insured credit union,
as applicable.
(b) Conditions for Furnishing and Using Consumer Reports for
Employment Purposes.--
(1) Certification from user.--A consumer reporting
agency may furnish a consumer report for employment
purposes only if--
(A) the person who obtains such report from
the agency certifies to the agency that--
(i) the person has complied with
paragraph (2) with respect to the
consumer report, and the person will
comply with paragraph (3) with respect
to the consumer report if paragraph (3)
becomes applicable; and
(ii) information from the consumer
report will not be used in violation of
any applicable Federal or State equal
employment opportunity law or
regulation; and
(B) the consumer reporting agency provides
with the report, or has previously provided, a
summary of the consumer's rights under this
title, as prescribed by the Bureau under
section 609(c)(3).
(2) Disclosure to consumer.--
(A) In general.--Except as provided in
subparagraph (B), a person may not procure a
consumer report, or cause a consumer report to
be procured, for employment purposes with
respect to any consumer, unless--
(i) a clear and conspicuous
disclosure has been made in writing to
the consumer at any time before the
report is procured or caused to be
procured, in a document that consists
solely of the disclosure, that a
consumer report may be obtained for
employment purposes; and
(ii) the consumer has authorized in
writing (which authorization may be
made on the document referred to in
clause (i)) the procurement of the
report by that person.
(B) Application by mail, telephone, computer,
or other similar means.--If a consumer
described in subparagraph (C) applies for
employment by mail, telephone, computer, or
other similar means, at any time before a
consumer report is procured or caused to be
procured in connection with that application--
(i) the person who procures the
consumer report on the consumer for
employment purposes shall provide to
the consumer, by oral, written, or
electronic means, notice that a
consumer report may be obtained for
employment purposes, and a summary of
the consumer's rights under section
615(a)(3); and
(ii) the consumer shall have
consented, orally, in writing, or
electronically to the procurement of
the report by that person.
(C) Scope.--Subparagraph (B) shall apply to a
person procuring a consumer report on a
consumer in connection with the consumer's
application for employment only if--
(i) the consumer is applying for a
position over which the Secretary of
Transportation has the power to
establish qualifications and maximum
hours of service pursuant to the
provisions of section 31502 of title
49, or a position subject to safety
regulation by a State transportation
agency; and
(ii) as of the time at which the
person procures the report or causes
the report to be procured the only
interaction between the consumer and
the person in connection with that
employment application has been by
mail, telephone, computer, or other
similar means.
(3) Conditions on use for adverse actions.--
(A) In general.--Except as provided in
subparagraph (B), in using a consumer report
for employment purposes, before taking any
adverse action based in whole or in part on the
report, the person intending to take such
adverse action shall provide to the consumer to
whom the report relates--
(i) a copy of the report; and
(ii) a description in writing of the
rights of the consumer under this
title, as prescribed by the Bureau
under section 609(c)(3).
(B) Application by mail, telephone, computer,
or other similar means.--
(i) If a consumer described in
subparagraph (C) applies for employment
by mail, telephone, computer, or other
similar means, and if a person who has
procured a consumer report on the
consumer for employment purposes takes
adverse action on the employment
application based in whole or in part
on the report, then the person must
provide to the consumer to whom the
report relates, in lieu of the notices
required under subparagraph (A) of this
section and under section 615(a),
within 3 business days of taking such
action, an oral, written or electronic
notification--
(I) that adverse action has
been taken based in whole or in
part on a consumer report
received from a consumer
reporting agency;
(II) of the name, address and
telephone number of the
consumer reporting agency that
furnished the consumer report
(including a toll-free
telephone number established by
the agency if the agency
compiles and maintains files on
consumers on a nationwide
basis);
(III) that the consumer
reporting agency did not make
the decision to take the
adverse action and is unable to
provide to the consumer the
specific reasons why the
adverse action was taken; and
(IV) that the consumer may,
upon providing proper
identification, request a free
copy of a report and may
dispute with the consumer
reporting agency the accuracy
or completeness of any
information in a report.
(ii) If, under clause (B)(i)(IV), the
consumer requests a copy of a consumer
report from the person who procured the
report, then, within 3 business days of
receiving the consumer's request,
together with proper identification,
the person must send or provide to the
consumer a copy of a report and a copy
of the consumer's rights as prescribed
by the Bureau under section 609(c)(3).
(C) Scope.--Subparagraph (B) shall apply to a
person procuring a consumer report on a
consumer in connection with the consumer's
application for employment only if--
(i) the consumer is applying for a
position over which the Secretary of
Transportation has the power to
establish qualifications and maximum
hours of service pursuant to the
provisions of section 31502 of title
49, or a position subject to safety
regulation by a State transportation
agency; and
(ii) as of the time at which the
person procures the report or causes
the report to be procured the only
interaction between the consumer and
the person in connection with that
employment application has been by
mail, telephone, computer, or other
similar means.
(4) Exception for national security investigations.--
(A) In general.--In the case of an agency or
department of the United States Government
which seeks to obtain and use a consumer report
for employment purposes, paragraph (3) shall
not apply to any adverse action by such agency
or department which is based in part on such
consumer report, if the head of such agency or
department makes a written finding that--
(i) the consumer report is relevant
to a national security investigation of
such agency or department;
(ii) the investigation is within the
jurisdiction of such agency or
department;
(iii) there is reason to believe that
compliance with paragraph (3) will--
(I) endanger the life or
physical safety of any person;
(II) result in flight from
prosecution;
(III) result in the
destruction of, or tampering
with, evidence relevant to the
investigation;
(IV) result in the
intimidation of a potential
witness relevant to the
investigation;
(V) result in the compromise
of classified information; or
(VI) otherwise seriously
jeopardize or unduly delay the
investigation or another
official proceeding.
(B) Notification of consumer upon conclusion
of investigation.--Upon the conclusion of a
national security investigation described in
subparagraph (A), or upon the determination
that the exception under subparagraph (A) is no
longer required for the reasons set forth in
such subparagraph, the official exercising the
authority in such subparagraph shall provide to
the consumer who is the subject of the consumer
report with regard to which such finding was
made--
(i) a copy of such consumer report
with any classified information
redacted as necessary;
(ii) notice of any adverse action
which is based, in part, on the
consumer report; and
(iii) the identification with
reasonable specificity of the nature of
the investigation for which the
consumer report was sought.
(C) Delegation by head of agency or
department.--For purposes of subparagraphs (A)
and (B), the head of any agency or department
of the United States Government may delegate
his or her authorities under this paragraph to
an official of such agency or department who
has personnel security responsibilities and is
a member of the Senior Executive Service or
equivalent civilian or military rank.
(D) Definitions.--For purposes of this
paragraph, the following definitions shall
apply:
(i) Classified information.--The term
``classified information'' means
information that is protected from
unauthorized disclosure under Executive
Order No. 12958 or successor orders.
(ii) National security
investigation.--The term ``national
security investigation'' means any
official inquiry by an agency or
department of the United States
Government to determine the eligibility
of a consumer to receive access or
continued access to classified
information or to determine whether
classified information has been lost or
compromised.
(c) Furnishing Reports in Connection With Credit or Insurance
Transactions That Are Not Initiated by the Consumer.--
(1) In general.--A consumer reporting agency may
furnish a consumer report relating to any consumer
pursuant to subparagraph (A) or (C) of subsection
(a)(3) in connection with any credit or insurance
transaction that is not initiated by the consumer only
if--
(A) the consumer authorizes the agency to
provide such report to such person; or
(B)(i) the transaction consists of a firm
offer of credit or insurance;
(ii) the consumer reporting agency has
complied with subsection (e);
(iii) there is not in effect an election by
the consumer, made in accordance with
subsection (e), to have the consumer's name and
address excluded from lists of names provided
by the agency pursuant to this paragraph; and
(iv) the consumer report does not contain a
date of birth that shows that the consumer has
not attained the age of 21, or, if the date of
birth on the consumer report shows that the
consumer has not attained the age of 21, such
consumer consents to the consumer reporting
agency to such furnishing.
(2) Limits on information received under paragraph
(1)(b).--A person may receive pursuant to paragraph
(1)(B) only--
(A) the name and address of a consumer;
(B) an identifier that is not unique to the
consumer and that is used by the person solely
for the purpose of verifying the identity of
the consumer; and
(C) other information pertaining to a
consumer that does not identify the
relationship or experience of the consumer with
respect to a particular creditor or other
entity.
(3) Information regarding inquiries.--Except as
provided in section 609(a)(5), a consumer reporting
agency shall not furnish to any person a record of
inquiries in connection with a credit or insurance
transaction that is not initiated by a consumer.
(4) Treatment of prescreening report requests.--
(A) Definitions.--In this paragraph:
(i) Credit union.--The term ``credit
union'' means a Federal credit union or
a State credit union, as those terms
are defined, respectively, in section
101 of the Federal Credit Union Act (12
U.S.C. 1752).
(ii) Insured depository
institution.--The term ``insured
depository institution'' has the
meaning given the term in section 3 of
the Federal Deposit Insurance Act (12
U.S.C. 1813(c)).
(iii) Residential mortgage loan.--The
term ``residential mortgage loan'' has
the meaning given the term in section
1503 of the S.A.F.E. Mortgage Licensing
Act of 2008 (12 U.S.C. 5102).
(iv) Servicer.--The term ``servicer''
has the meaning given the term in
section 6(i) of the Real Estate
Settlement Procedures Act of 1974 (12
U.S.C. 2605(i)).
(B) Limitation.--If a person requests a
consumer report from a consumer reporting
agency in connection with a credit transaction
involving a residential mortgage loan, that
agency may not, based in whole or in part on
that request, furnish a consumer report to
another person under this subsection unless--
(i) the transaction consists of a
firm offer of credit or insurance; and
(ii) that other person--
(I) has submitted
documentation to that agency
certifying that such other
person has, pursuant to
paragraph (1)(A), the
authorization of the consumer
to whom the consumer report
relates; or
(II)(aa) has originated a
current residential mortgage
loan of the consumer to whom
the consumer report relates;
(bb) is the servicer of a
current residential mortgage
loan of the consumer to whom
the consumer report relates; or
(cc)(AA) is an insured
depository institution or
credit union; and
(BB) holds a current account
for the consumer to whom the
consumer report relates.
(d) Reserved.
(e) Election of Consumer To Be Excluded From Lists.--
(1) In general.--A consumer may elect to have the
consumer's name and address excluded from any list
provided by a consumer reporting agency under
subsection (c)(1)(B) in connection with a credit or
insurance transaction that is not initiated by the
consumer by notifying the agency in accordance with
paragraph (2) that the consumer does not consent to any
use of a consumer report relating to the consumer in
connection with any credit or insurance transaction
that is not initiated by the consumer.
(2) Manner of notification.--A consumer shall notify
a consumer reporting agency under paragraph (1)--
(A) through the notification system
maintained by the agency under paragraph (5);
or
(B) by submitting to the agency a signed
notice of election form issued by the agency
for purposes of this subparagraph.
(3) Response of agency after notification through
system.--Upon receipt of notification of the election
of a consumer under paragraph (1) through the
notification system maintained by the agency under
paragraph (5), a consumer reporting agency shall--
(A) inform the consumer that the election is
effective only for the 5-year period following
the election if the consumer does not submit to
the agency a signed notice of election form
issued by the agency for purposes of paragraph
(2)(B); and
(B) provide to the consumer a notice of
election form, if requested by the consumer,
not later than 5 business days after receipt of
the notification of the election through the
system established under paragraph (5), in the
case of a request made at the time the consumer
provides notification through the system.
(4) Effectiveness of election.--An election of a
consumer under paragraph (1)--
(A) shall be effective with respect to a
consumer reporting agency beginning 5 business
days after the date on which the consumer
notifies the agency in accordance with
paragraph (2);
(B) shall be effective with respect to a
consumer reporting agency--
(i) subject to subparagraph (C),
during the 5-year period beginning 5
business days after the date on which
the consumer notifies the agency of the
election, in the case of an election
for which a consumer notifies the
agency only in accordance with
paragraph (2)(A); or
(ii) until the consumer notifies the
agency under subparagraph (C), in the
case of an election for which a
consumer notifies the agency in
accordance with paragraph (2)(B);
(C) shall not be effective after the date on
which the consumer notifies the agency, through
the notification system established by the
agency under paragraph (5), that the election
is no longer effective; and
(D) shall be effective with respect to each
affiliate of the agency.
(5) Notification system.--
(A) In general.--Each consumer reporting
agency that, under subsection (c)(1)(B),
furnishes a consumer report in connection with
a credit or insurance transaction that is not
initiated by a consumer shall--
(i) establish and maintain a
notification system, including a toll-
free telephone number, which permits
any consumer whose consumer report is
maintained by the agency to notify the
agency, with appropriate
identification, of the consumer's
election to have the consumer's name
and address excluded from any such list
of names and addresses provided by the
agency for such a transaction; and
(ii) publish by not later than 365
days after the date of enactment of the
Consumer Credit Reporting Reform Act of
1996, and not less than annually
thereafter, in a publication of general
circulation in the area served by the
agency--
(I) a notification that
information in consumer files
maintained by the agency may be
used in connection with such
transactions; and
(II) the address and toll-
free telephone number for
consumers to use to notify the
agency of the consumer's
election under clause (i).
(B) Establishment and maintenance as
compliance.--Establishment and maintenance of a
notification system (including a toll-free
telephone number) and publication by a consumer
reporting agency on the agency's own behalf and
on behalf of any of its affiliates in
accordance with this paragraph is deemed to be
compliance with this paragraph by each of those
affiliates.
(6) Notification system by agencies that operate
nationwide.--Each consumer reporting agency that
compiles and maintains files on consumers on a
nationwide basis shall establish and maintain a
notification system for purposes of paragraph (5)
jointly with other such consumer reporting agencies.
(f) Certain Use or Obtaining of Information Prohibited.--A
person shall not use or obtain a consumer report for any
purpose unless--
(1) the consumer report is obtained for a purpose for
which the consumer report is authorized to be furnished
under this section; and
(2) the purpose is certified in accordance with
section 607 by a prospective user of the report through
a general or specific certification.
(g) Protection of Medical Information.--
(1) Limitation on consumer reporting agencies.--A
consumer reporting agency shall not furnish for
employment purposes, or in connection with a credit or
insurance transaction, a consumer report that contains
medical information (other than medical contact
information treated in the manner required under
section 605(a)(6)) about a consumer, unless--
(A) if furnished in connection with an
insurance transaction, the consumer
affirmatively consents to the furnishing of the
report;
(B) if furnished for employment purposes or
in connection with a credit transaction--
(i) the information to be furnished
is relevant to process or effect the
employment or credit transaction; and
(ii) the consumer provides specific
written consent for the furnishing of
the report that describes in clear and
conspicuous language the use for which
the information will be furnished; or
(C) the information to be furnished pertains
solely to transactions, accounts, or balances
relating to debts arising from the receipt of
medical services, products, or devises, where
such information, other than account status or
amounts, is restricted or reported using codes
that do not identify, or do not provide
information sufficient to infer, the specific
provider or the nature of such services,
products, or devices, as provided in section
605(a)(6).
(2) Limitation on creditors.--Except as permitted
pursuant to paragraph (3)(C) or regulations prescribed
under paragraph (5)(A), a creditor shall not obtain or
use medical information (other than medical information
treated in the manner required under section 605(a)(6))
pertaining to a consumer in connection with any
determination of the consumer's eligibility, or
continued eligibility, for credit.
(3) Actions authorized by federal law, insurance
activities and regulatory determinations.--Section
603(d)(3) shall not be construed so as to treat
information or any communication of information as a
consumer report if the information or communication is
disclosed--
(A) in connection with the business of
insurance or annuities, including the
activities described in section 18B of the
model Privacy of Consumer Financial and Health
Information Regulation issued by the National
Association of Insurance Commissioners (as in
effect on January 1, 2003);
(B) for any purpose permitted without
authorization under the Standards for
Individually Identifiable Health Information
promulgated by the Department of Health and
Human Services pursuant to the Health Insurance
Portability and Accountability Act of 1996, or
referred to under section 1179 of such Act, or
described in section 502(e) of Public Law 106-
102; or
(C) as otherwise determined to be necessary
and appropriate, by regulation or order, by the
Bureau or the applicable State insurance
authority (with respect to any person engaged
in providing insurance or annuities).
(4) Limitation on redisclosure of medical
information.--Any person that receives medical
information pursuant to paragraph (1) or (3) shall not
disclose such information to any other person, except
as necessary to carry out the purpose for which the
information was initially disclosed, or as otherwise
permitted by statute, regulation, or order.
(5) Regulations and effective date for paragraph
(2).--
(A) Regulations required.--The Bureau may,
after notice and opportunity for comment,
prescribe regulations that permit transactions
under paragraph (2) that are determined to be
necessary and appropriate to protect legitimate
operational, transactional, risk, consumer, and
other needs (and which shall include permitting
actions necessary for administrative
verification purposes), consistent with the
intent of paragraph (2) to restrict the use of
medical information for inappropriate purposes.
(6) Coordination with other laws.--No provision of
this subsection shall be construed as altering,
affecting, or superseding the applicability of any
other provision of Federal law relating to medical
confidentiality.
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