PRINTER'S NO. 453
No. 430 Session of 1997
INTRODUCED BY GREENLEAF, COSTA, SALVATORE, AFFLERBACH, SCHWARTZ,
BELL, GERLACH, KASUNIC, KUKOVICH, LEMMOND AND TOMLINSON,
FEBRUARY 11, 1997
REFERRED TO BANKING AND INSURANCE, FEBRUARY 11, 1997
AN ACT
1 Relating to credit information reporting; providing for report
2 preparation, dissemination and use, for disclosure
3 requirements, for dispute resolution and for public record
4 information; and imposing civil and criminal penalties.
5 TABLE OF CONTENTS
6 Section 1. Short title.
7 Section 2. Definitions.
8 Section 3. Permissible dissemination of reports.
9 Section 4. Preparation and procurement of investigative
10 consumer reports.
11 Section 5. Prescreening consumer reports.
12 Section 6. Disclosure to consumers.
13 Section 7. Methods and conditions of disclosure to consumers.
14 Section 8. Procedure for resolving disputes.
15 Section 9. Public record information.
16 Section 10. Restrictions on investigative consumer reports.
17 Section 11. Users of consumer reports.
18 Section 12. Prohibited information.
1 Section 13. Compliance procedures.
2 Section 14. Civil liability for willful noncompliance.
3 Section 15. Civil liability for negligent noncompliance.
4 Section 16. Limitation of actions and jurisdiction.
5 Section 17. Penalties.
6 Section 18. Unauthorized disclosures by officers or employees.
7 Section 19. Disclosure of medical information.
8 Section 20. Disclosures to governmental agencies.
9 Section 21. Effective date.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Short title.
13 This act shall be known and may be cited as the Fair Credit
14 Reporting Act.
15 Section 2. Definitions.
16 The following words and phrases when used in this act shall
17 have the meanings given to them in this section unless the
18 context clearly indicates otherwise:
19 "Adverse information." Information that is likely to have a
20 negative effect upon the ability or eligibility of a consumer to
21 obtain credit, insurance, employment or other benefits, goods or
22 services or information that is either wholly or partially
23 responsible for increases in charges for credit or insurance.
24 "Consumer." An individual.
25 "Consumer report."
26 (1) Any written, oral or other communication of any
27 information by a consumer reporting agency bearing on a
28 consumer's creditworthiness, credit standing, credit
29 capacity, character, general reputation, personal
30 characteristics or mode of living which is used or expected
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1 to be used or collected in whole or in part for the purpose
2 of serving as a factor in establishing the consumer's
3 eligibility for any of the following:
4 (i) Credit or insurance to be used primarily for
5 personal, family or household purposes.
6 (ii) Employment purposes.
7 (iii) Other purposes authorized under section 3.
8 (2) The term does not include any of the following:
9 (i) Any report containing information solely as to
10 transactions or experiences between the consumer and the
11 person making the report.
12 (ii) Any authorization or approval of a specific
13 extension of credit directly or indirectly by the issuer
14 of a credit card or similar device.
15 (iii) Any report in which a person who has been
16 requested by a third party to make a specific extension
17 of credit directly or indirectly to a consumer conveys a
18 decision with respect to the request, if the third party
19 advises the consumer of the name and address of the
20 person to whom the request was made and the person makes
21 the disclosures to the consumer required under section
22 11.
23 "Consumer reporting agency." Any person who, for monetary
24 fees, dues or on a cooperative nonprofit basis, regularly
25 engages in whole or in part in the practice of assembling or
26 evaluating consumer credit information or other information on
27 consumers for the purpose of furnishing consumer reports or
28 investigative consumer reports to third parties.
29 "Employment purposes." When used in connection with a
30 consumer report, a report used for the purpose of evaluating a
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1 consumer for employment, promotion, reassignment or retention as
2 an employee.
3 "File." When used in connection with information on any
4 consumer, all of the information about that consumer recorded
5 and retained by a consumer reporting agency regardless of how
6 the information is stored. The term includes any information
7 given to a user by the consumer reporting agency.
8 "Investigative consumer report." A consumer report or
9 portion of a consumer report in which information on a
10 consumer's character, general reputation, personal
11 characteristics or mode of living is obtained through personal
12 interviews with neighbors, friends or associates of the consumer
13 reported on or with others with whom the consumer is acquainted
14 or who may have knowledge concerning these items of information.
15 However, the information shall not include specific factual
16 information on a consumer's credit record obtained directly from
17 a creditor of the consumer or from a consumer reporting agency
18 when the information was obtained directly from a creditor of
19 the consumer or from the consumer.
20 "Medical information." Information or records obtained, with
21 the consent of the individual to whom it relates, from licensed
22 physicians or medical practitioners, hospitals, clinics or other
23 medical or medically related facilities.
24 "Person." Any individual, partnership, corporation, trust,
25 estate, cooperative, association, government or governmental
26 subdivision, agency or other entity.
27 "User." When used in connection with the use of a consumer
28 report, any person receiving or requesting a consumer report or
29 an investigative consumer report other than the subject of the
30 report.
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1 Section 3. Permissible dissemination of reports.
2 (a) General rule.--A consumer reporting agency may furnish a
3 consumer report under any one of the following circumstances and
4 no other:
5 (1) In response to the order of a court having
6 jurisdiction to issue an order.
7 (2) In accordance with the written instructions of the
8 consumer to whom it relates.
9 (3) To a person whom it has reason to believe intends to
10 use the information for any of the following purposes:
11 (i) In connection with a credit transaction
12 involving the consumer on whom the information is to be
13 furnished and involving the extension of credit to, or
14 review or collection of an account of, the consumer.
15 (ii) For employment purposes.
16 (iii) In connection with the underwriting of
17 insurance involving the consumer.
18 (iv) In connection with a determination of the
19 consumer's eligibility for a license or other benefit
20 granted by a governmental instrumentality required by law
21 to consider an applicant's financial responsibility or
22 status.
23 (v) To a person in connection with a business
24 transaction involving the consumer where the user has a
25 legitimate business need for the information.
26 (vi) In connection with the rental or lease of a
27 residence.
28 (b) Notice requirement.--A person may not request a consumer
29 report, other than an investigative consumer report, in
30 connection with an application made after the effective date of
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1 this act, for credit, employment, insurance or rental or lease
2 of residences, unless the applicant is first informed in writing
3 or in the same manner in which the application is made that:
4 (1) a consumer report may be requested in connection
5 with the application; and
6 (2) the applicant, upon request, will be informed
7 whether or not a consumer report was requested and, if the
8 report was requested, will be informed of the name and
9 address of the consumer reporting agency that furnished the
10 report.
11 (c) Subsequent reports.--Where the notice provided under
12 subsection (b) further indicates that subsequent consumer
13 reports, other than investigative consumer reports, may be
14 requested or utilized in connection with an update, renewal or
15 extension of the credit, employment, insurance or rental or
16 lease of residences for which application was made, no
17 additional notice to the consumer is required at the time the
18 subsequent report is requested.
19 (d) Copy of report.--A consumer reporting agency shall
20 furnish a copy of a consumer report, furnished to a user under
21 this section, to the consumer who is the subject of that report.
22 (e) Exception.--The notice requirements of this section
23 shall not apply to the update, renewal or extension of credit,
24 employment, insurance or rental or lease of residences for which
25 initial application was made prior to the effective date of this
26 act.
27 Section 4. Preparation and procurement of investigative
28 consumer reports.
29 (a) General rule.--No person may procure or cause to be
30 prepared an investigative consumer report on any consumer unless
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1 the person:
2 (1) Has first provided the consumer with notice of the
3 procurement or preparation as described in subsection (b).
4 (2) Has first received from the consumer an
5 authorization for preparation or procurement of the
6 investigative consumer report as described in subsection (c).
7 (b) Notice requirement.--The notice required by this section
8 shall be in writing if a written application is made by the
9 consumer or may be in writing or given orally in all other
10 circumstances. The notice shall inform the consumer that:
11 (1) An investigative consumer report may be requested on
12 the consumer.
13 (2) The consumer, upon written request, will be informed
14 whether or not an investigative consumer report was requested
15 and, if the report was requested, will be informed of the
16 name and address of the consumer reporting agency to whom the
17 request was made. Upon furnishing to the consumer that name
18 and address of the consumer reporting agency to whom the
19 request was made, the consumer shall also be informed that
20 the consumer may inspect and receive a copy of the report by
21 contacting the agency.
22 (c) Authorization.--The authorization required by this
23 section shall be given in writing or in the same manner as the
24 notice under this section is required to be given.
25 (d) Refusal of authorization.--If a person applying for
26 credit, insurance or employment refuses to authorize the
27 procurement or preparation of an investigative consumer report,
28 the prospective creditor, insurer or employer may decline to
29 grant credit, insurance or employment on the grounds that the
30 applicant refused to execute the authorization.
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1 (e) Children and minors.--Where a parent applies for
2 insurance on behalf of or to cover a child, or an adult applies
3 for insurance on behalf of or to cover a minor, the execution of
4 an authorization and receipt of notice under this section by the
5 parent or adult shall also be deemed to be receipt of notice and
6 execution of an authorization by the child or minor.
7 (f) Exception.--The notice and authorization requirements of
8 this section shall not apply to investigative consumer reports
9 procured or prepared in connection with the renewal of a
10 casualty insurance policy where the initial application for the
11 policy preceded the effective date of this act.
12 Section 5. Prescreening consumer reports.
13 (a) Requirements.--Any consumer reporting agency which
14 agrees to prescreen credit reports shall do so only after
15 complying or insuring compliance with the following:
16 (1) Credit must be extended to each person who is
17 identified by the consumer reporting agency as meeting the
18 credit review standards as set forth by the user.
19 (2) A consumer must be given clear disclosure of the
20 right to opt out of prescreening services.
21 (b) Use of consumer credit data.--No consumer reporting
22 agency may use any consumer credit data to create mailing lists
23 to be used in any form of solicitation which is not
24 prescreening, such as direct marketing mail lists.
25 (c) Definition.--As used in this section, the term
26 "prescreen" means the reviewing of reports for certain
27 characteristics for marketing purposes and providing banks and
28 other credit grantors with a list of eligible clients.
29 Section 6. Disclosure to consumers.
30 (a) Disclosure requirements.--Every consumer reporting
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1 agency shall, upon request and proper identification of any
2 consumer, clearly and accurately disclose to the consumer all of
3 the following:
4 (1) All information in its files at the time of the
5 request concerning the consumer, including any information
6 which adversely characterizes the consumer's credit record.
7 (2) The sources of the information, except that the
8 sources of information acquired solely for use in preparing
9 an investigative consumer report and actually used for no
10 other purpose need not be disclosed, although in the event an
11 action is brought under section 16, the sources shall be
12 available to the plaintiff under appropriate discovery
13 procedures in the court in which the action is brought.
14 (3) The recipients of any consumer report on the
15 consumer which the agency has furnished for:
16 (i) Employment purposes within the two-year period
17 preceding the request.
18 (ii) Any other purpose within the six-month period
19 preceding the request.
20 (b) Exception.--The requirements of subsection (a) regarding
21 the disclosure of sources of information and the recipients of
22 consumer reports shall not apply to information received or
23 consumer reports furnished prior to the effective date of this
24 act except to the extent that the matter involved is contained
25 in the files of the consumer reporting agency on that date.
26 (c) Agency obligations.--Notwithstanding any other provision
27 of this act, every consumer reporting agency, upon contact by a
28 consumer by phone, mail or in person regarding information which
29 may be contained in the agency's files which has been or may be
30 used for the purpose of providing a consumer report regarding
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1 that consumer, shall promptly advise the consumer of the
2 obligation of the agency to provide disclosure of the files in
3 person, by mail or by telephone under this section, including
4 the obligation of the agency to provide a decoded written
5 version of the file or a written copy of the file with an
6 explanation of any code used, if the consumer so requests. The
7 disclosure shall be provided in the manner selected by the
8 consumer. All consumers shall be specifically advised that if
9 they have been denied credit in the past 30 days they are
10 entitled to receive a written copy of their complete file, at no
11 charge whatsoever, should they choose to request a copy. In
12 addition, a consumer is entitled to receive a written copy of
13 the consumer's file on an annual basis and at no charge
14 whatsoever, should the consumer choose to request a copy.
15 Section 7. Methods and conditions of disclosure to consumers.
16 (a) Time and notice.--A consumer reporting agency shall make
17 the disclosures required under section 6 during normal business
18 hours and on reasonable notice.
19 (b) Disclosure methods.--The disclosure required under
20 section 6 shall be made to the consumer by one or more of the
21 following methods:
22 (1) If the consumer appears in person and furnishes
23 proper identification, the consumer shall be permitted a
24 personal visual inspection of the consumer's file within 30
25 minutes of arrival and, if the consumer so requests, shall be
26 furnished a copy of the entire file or any part of the file.
27 (2) By telephone, within two days of a consumer request
28 if the consumer has made a written request with proper
29 identification and sufficient safeguards for telephone
30 disclosure and the toll charge, if any, for the telephone
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1 call is prepaid by or charged directly to the consumer. At
2 the time of the disclosure by telephone, the consumer shall
3 be advised of the right to receive a complete written
4 disclosure of the information pertaining to the consumer.
5 (3) By mailing, within two days of a consumer request, a
6 copy or transcription of all information in the consumer's
7 file to the consumer, if the consumer has made a written
8 request with proper identification.
9 (c) Trained personnel.--Every consumer reporting agency
10 shall provide trained personnel to explain to a consumer any
11 information furnished to the consumer either by personal
12 interview or telephone communication, and information furnished
13 by mail must be accompanied by an explanation of the information
14 if provided in code or trade terminology.
15 (d) Personal interviews.--A consumer who seeks disclosure by
16 means of a personal interview under subsection (b)(1) shall be
17 permitted to be accompanied by one other person of the
18 consumer's choosing, who shall furnish reasonable
19 identification. A consumer reporting agency may require the
20 consumer to furnish a written statement granting permission to
21 the consumer reporting agency to discuss the consumer's file in
22 the other person's presence.
23 (e) Disclosure without charge.--
24 (1) A consumer reporting agency shall make all
25 disclosures authorized under section 6 without charge to any
26 person who receives a notification of adverse action under
27 section 11 or receives notification from a debt collection
28 agency affiliated with the consumer reporting agency stating
29 the consumer's credit rating may be or has been adversely
30 affected if, within 30 days of receipt of the notification,
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1 the consumer makes a request for the disclosure. A written
2 statement by a consumer indicating that the consumer has been
3 denied credit in the past 30 days, or has been contacted by a
4 debt collection agency as described in this paragraph, is
5 sufficient to require the disclosure without charge.
6 (2) In all other cases where the disclosure is
7 requested, the consumer reporting agency may impose a
8 reasonable charge for the disclosure, if the charges are
9 indicated to the consumer prior to making disclosure.
10 (3) Notwithstanding any provision of paragraph (2), the
11 charge imposed for the furnishing of information shall not
12 exceed the charge the consumer reporting agency would impose
13 for providing the information to its regular customers.
14 (4) No charge may be made for notifying any person of
15 the deletion of information which is found to be in error or
16 which can no longer be verified.
17 (f) Decoded version of file.--In addition to the disclosure
18 provided by this section and any disclosures received by the
19 consumer, the consumer shall be advised of the right to request
20 and receive a decoded written version of the file or a written
21 copy of the file, with an explanation of any code used, without
22 charge, except as otherwise provided in subsection (e).
23 (g) Consumer-provided information.--The consumer reporting
24 agency shall include in its file credit information from
25 creditors provided by the consumer. The consumer reporting
26 agency may impose a reasonable charge for the disclosure of this
27 information if the charges are indicated prior to including the
28 information in the report.
29 Section 8. Procedure for resolving disputes.
30 (a) Reinvestigation required.--If a consumer disputes any
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1 item of information contained in the consumer's file, and the
2 dispute is directly conveyed to the consumer reporting agency by
3 the consumer, the consumer reporting agency shall promptly
4 reinvestigate and record the current status of the information,
5 unless it has reasonable grounds to believe that the dispute by
6 the consumer is frivolous, and it shall promptly notify the
7 consumer of the result of its investigation, its decision on the
8 status of the information and the consumer's rights under this
9 section. The presence of contradictory information in a
10 consumer's file shall not, in and of itself, constitute
11 reasonable grounds for believing the dispute is frivolous.
12 (b) Error in file.--If, after conducting the reinvestigation
13 required by subsection (a), the consumer reporting agency finds
14 that an item is in error or that it can no longer be verified,
15 it shall:
16 (1) Promptly expunge the item and otherwise correct the
17 file and promptly notify any person who has received
18 information during the previous six months that an error
19 existed, and furnish that person with the corrected
20 information.
21 (2) Refrain from reporting the item in subsequent
22 consumer reports.
23 (3) Clearly and conspicuously disclose to the consumer
24 the consumer's rights to make a request for notification and,
25 upon request of the consumer, promptly notify any person
26 designated by the consumer who has received information
27 regarding the item during the previous year and who has not
28 been notified under paragraph (1) that an error existed, and
29 shall furnish that person with the corrected information.
30 (4) Where applicable, forward a copy of the consumer's
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1 statement in accordance with subsection (c).
2 (c) Unresolved differences.--If, after conducting a
3 reinvestigation under this section, the consumer reporting
4 agency is unable to resolve any remaining differences between
5 the statements made by its sources and the consumer, it shall:
6 (1) Promptly indicate in the file that the item is
7 disputed.
8 (2) Permit the consumer to file a statement concerning
9 the nature of the dispute, which statement may be limited by
10 the agency to not more than 100 words if the agency provides
11 the consumer with assistance in writing a clear summary of
12 the dispute.
13 (3) Include the consumer's full statement of the dispute
14 in all subsequent credit reports containing the information
15 in question.
16 (4) Clearly note in all subsequent consumer reports that
17 the item is disputed by the consumer.
18 (d) Dispute resolution.--The consumer reporting agency may
19 establish an independent dispute resolution process. This
20 process would be for purposes of inclusion in the file only and
21 would not have any impact on actual liability for the debt.
22 (e) Consumer copy of file.--Notwithstanding any other
23 provision of this section, if any item disputed and
24 reinvestigated is found to be in error or can no longer be
25 verified, upon completion of the reinvestigation of all items
26 disputed, the agency shall promptly mail the consumer a
27 corrected written copy of the file, reflecting any changes, with
28 an explanation of any code used, at no charge to the consumer.
29 Section 9. Public record information.
30 (a) Agency responsibilities.--A consumer reporting agency
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1 which compiles and reports items of information on consumers
2 which are matters of public record shall do one of the
3 following:
4 (1) At the time public record information is reported to
5 the user of the consumer report, notify the consumer of the
6 fact that public record information is being reported by the
7 consumer reporting agency, together with the name and address
8 of the person to whom information is being reported.
9 (2) Maintain reasonable procedures designed to insure
10 that whenever public record information is reported it is
11 complete and up-to-date to the extent practicable. It shall
12 be deemed a reasonable procedure for a consumer reporting
13 agency to accurately report the status of public record
14 information as of the date recorded in its files provided the
15 information is updated on a regular basis.
16 (b) Reinvestigations.--When conducting a reinvestigation as
17 required by section 8(a), a consumer reporting agency shall
18 promptly record and report the current status of the public
19 record.
20 (c) Security of records.--The consumer reporting agency
21 shall create a security procedure for the accessing of all
22 information and shall maintain a permanent record of all
23 requests for information on each consumer's file.
24 Section 10. Restrictions on investigative consumer reports.
25 (a) Adverse information.--Whenever a consumer reporting
26 agency prepares an investigative consumer report, no adverse
27 information in the report, other than information which is a
28 matter of public record, may be included in a subsequent
29 consumer report unless the adverse information has been verified
30 in the process of making the subsequent consumer report, except
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1 for adverse information received within the three-month period
2 preceding the date upon which the subsequent report is
3 furnished.
4 (b) Written report required.--Each investigative consumer
5 report shall be in writing, and a copy of the report shall be
6 retained by the consumer reporting agency for at least one year
7 after it is issued.
8 Section 11. Users of consumer reports.
9 (a) User responsibilities.--Whenever credit or insurance for
10 personal, family or household purposes is denied, or whenever a
11 residential rental or lease is denied, or the charge for credit
12 or insurance, or rental or lease is increased, either wholly or
13 partly because of information contained in a consumer report,
14 the user of the report shall:
15 (1) Advise the consumer against whom the adverse action
16 has been taken of the action.
17 (2) Supply the name and address of the consumer
18 reporting agency making the report.
19 (3) Inform the consumer of the consumer's right to
20 inspect and receive a copy of the report by contacting the
21 consumer reporting agency.
22 (b) Additional requirements.--In addition to the
23 requirements of subsection (a), the user of any report for the
24 purpose of evaluating an application for credit shall furnish to
25 the consumer the reasons for any adverse action in relation to
26 the application in conformance with the requirements of the
27 Equal Credit Opportunity Act (Public Law 93-495, 15 U.S.C. §
28 1691 et seq.).
29 (c) Dissemination of reports.--Every user of a consumer
30 report or an investigative consumer report shall be prohibited
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1 from disseminating the report to any other person unless the
2 other person has a legitimate business need for the information
3 in connection with a business transaction involving the
4 consumer.
5 Section 12. Prohibited information.
6 (a) General rule.--No consumer reporting agency may report
7 or maintain in the file of a consumer any information:
8 (1) Relative to an arrest or a criminal charge unless
9 there has been a criminal conviction for the offense, or
10 unless the charges are still pending.
11 (2) Relative to a consumer's race, religion, color,
12 ancestry or ethnic origin.
13 (3) Which the consumer reporting agency has reason to
14 know is inaccurate.
15 (b) Exception.--Notwithstanding the provisions of subsection
16 (a)(1), a consumer reporting agency may collect, evaluate,
17 prepare, use or report information relative to a detention of an
18 individual by a retail mercantile establishment, if all of the
19 following apply:
20 (1) The individual has executed an uncoerced admission
21 of wrongdoing.
22 (2) With respect to a detention made on or after the
23 effective date of this act, the retail mercantile
24 establishment has, prior to transmitting to a consumer
25 reporting agency information concerning the detention,
26 delivered to the individual a written notice containing:
27 (i) A statement that the information may be
28 furnished to a consumer reporting agency and that the
29 information may be reported to a retail mercantile
30 establishment for employment purposes.
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1 (ii) A statement that the individual may request
2 disclosure by the consumer reporting agency of
3 information in the agency's file on the individual and
4 that the completeness or accuracy of the information may
5 be disputed by the individual.
6 (iii) The name and address of the consumer reporting
7 agency.
8 (3) The user of the information certifies to the
9 consumer reporting agency that the information will be used
10 only in connection with employment purposes.
11 (c) Record of disposition.--In the event that a criminal
12 charge is filed subsequent to the detention described in
13 subsection (b), the disposition of the charge shall be recorded
14 by the consumer reporting agency in the file of the individual
15 upon the request of the individual and upon receipt of proof of
16 the disposition.
17 (d) Lack of information.--A consumer reporting agency shall
18 not issue a consumer report which lists a person as having been
19 denied credit if the sole reason for the denial is lack of
20 sufficient information to grant credit, unless the report states
21 that the denial was for that reason.
22 (e) Procedure required.--Consumer reporting agencies shall
23 maintain reasonable procedures designed to assure maximum
24 possible accuracy of the information concerning the individual
25 about whom the report relates.
26 (f) Other prohibitions.--
27 (1) Except as authorized under paragraph (2), no
28 consumer reporting agency may make any consumer report
29 containing any of the following items of information:
30 (i) Bankruptcies which, from date of adjudication of
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1 the most recent bankruptcy, predate the report by more
2 than ten years.
3 (ii) Judgments which, from date of entry, predate
4 the report by more than seven years or until the
5 governing statute of limitations has expired, whichever
6 is the longer period; or judgments which, from date of
7 entry, have been satisfied within a five-year period from
8 the entry date, which shall be removed from the report
9 five years after the entry date.
10 (iii) Paid tax liens which, from date of payment,
11 predate the report by more than seven years.
12 (iv) Accounts placed for collection or charged to
13 profit and loss which predate the report by more than
14 seven years; or accounts placed for collection or charged
15 to profit and loss, which have been paid and which
16 predate the report by more than five years.
17 (v) Records of conviction of crime which, from date
18 of disposition, release or parole, predate the report by
19 more than seven years.
20 (vi) Information regarding drug or alcoholic
21 addiction where the last reported incident relating to
22 the addiction predates the consumer report or
23 investigative consumer report by more than seven years.
24 (vii) Information relating to past confinement in a
25 mental institution where the date of last confinement
26 predates the report by more than seven years.
27 (viii) Any other adverse information which predates
28 the report by more than seven years.
29 (2) The provisions of this subsection shall not apply to
30 any of the following:
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1 (i) A credit transaction involving, or which may
2 reasonably be expected to involve, a principal amount of
3 $100,000 or more.
4 (ii) The underwriting of life insurance involving,
5 or which may reasonably be expected to involve, a face
6 amount of $100,000.
7 (iii) The employment of any individual at an annual
8 salary which equals, or which may reasonably be expected
9 to equal, $50,000 or more.
10 (g) Polygraph information.--No consumer reporting agency
11 shall collect, evaluate, report or maintain in the file on a
12 consumer any results, opinions, analyses, transcripts or
13 information of any nature concerning, related to or derived from
14 a polygraph examination, an examination by any device or
15 instrument of any type used to test or question individuals for
16 the purpose of detecting deception, verifying truthfulness or
17 measuring deceptive tendencies, or the questioning or
18 interviewing of an individual by the examiner prior to or after
19 such an examination.
20 Section 13. Compliance procedures.
21 Every consumer or reporting agency shall maintain reasonable
22 procedures designed to avoid violations of sections 3 and 12 and
23 to limit the furnishing of consumer reports to the purposes
24 listed under section 3. These procedures shall require all
25 prospective users of the information to identify themselves,
26 certify the purposes for which the information is sought and
27 certify that the information will be used for no other purpose.
28 Every consumer reporting agency shall make a reasonable effort
29 to verify the identity of a new prospective user and the uses
30 certified by the prospective user prior to furnishing the user
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1 with a consumer report. No consumer reporting agency may furnish
2 a consumer report to any person if it has reasonable grounds for
3 believing that the consumer report will not be used for a
4 purpose listed in section 3.
5 Section 14. Civil liability for willful noncompliance.
6 Any consumer reporting agency or user of information who or
7 which willfully and knowingly fails to comply with any
8 requirement imposed under this act with respect to a consumer is
9 liable to that consumer in an amount equal to the sum of:
10 (1) any actual damages sustained by the consumer as a
11 result of failure;
12 (2) the amount of punitive damages as the court may
13 allow; and
14 (3) in the case of any successful action to enforce any
15 liability under this section, the costs of the action
16 together with reasonable attorney fees as determined by the
17 appropriate court.
18 The court may, in its discretion, award up to three times the
19 actual damages sustained, but not less than $100, and may
20 provide any additional relief as it deems necessary or proper.
21 Section 15. Civil liability for negligent noncompliance.
22 Any consumer reporting agency or user of information who or
23 which is negligent in failing to comply with any requirement
24 imposed under this act with respect to a consumer is liable to
25 that consumer in an amount equal to the sum of:
26 (1) any actual damages sustained by the consumer as a
27 result of the failure; and
28 (2) in the case of any successful action to enforce any
29 liability under this section, the costs of the action
30 together with reasonable attorney fees as determined by the
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1 appropriate court.
2 The court may, in its discretion, award up to three times the
3 actual damages sustained, but not less than $100, and may
4 provide any additional relief as it deems necessary or proper.
5 Section 16. Limitation of actions and jurisdiction.
6 An action to enforce any liability created under this act may
7 be brought in any court of competent jurisdiction, within two
8 years from the date on which the liability arises, except that,
9 where a defendant has materially and willfully misrepresented
10 any information required to be disclosed under this act to an
11 individual and the information so misrepresented is material to
12 the establishment of the defendant's liability to that
13 individual under this act, the action may be brought at any time
14 within two years after the discovery by the individual of the
15 misrepresentation.
16 Section 17. Penalties.
17 (a) Obtaining information.--Any person who obtains
18 information concerning a consumer from a consumer reporting
19 agency under false pretenses commits a misdemeanor of the third
20 degree and shall, upon conviction, be sentenced to pay a fine of
21 not more than $5,000 or to imprisonment for not more than one
22 year, or both.
23 (b) Introducing information.--Any person who introduces,
24 attempts to introduce or causes to be introduced false
25 information into a consumer reporting agency's files for the
26 purpose of wrongfully damaging or wrongfully enhancing the
27 credit information of any individual commits a misdemeanor of
28 the third degree and shall, upon conviction, be sentenced to pay
29 a fine of not more than $5,000 or to imprisonment for not more
30 than one year, or both.
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1 (c) Additional penalty.--Any violation of this act shall
2 constitute a violation of the act of December 17, 1968
3 (P.L.1224, No.387), known as the Unfair Trade Practices and
4 Consumer Protection Law.
5 (d) Exception.--This section shall not apply to statements
6 filed under section 8(c)(2).
7 Section 18. Unlawful practices by officers or employees.
8 (a) Unauthorized disclosures.--Any officer or employee of a
9 consumer reporting agency who provides information concerning an
10 individual from the agency's files to a person not authorized to
11 receive that information commits a misdemeanor of the third
12 degree and shall, upon conviction, be sentenced to pay a fine of
13 not more than $5,000 or to imprisonment for not more than one
14 year, or both.
15 (b) Erroneous information.--Any officer or employee of a
16 consumer reporting agency who introduces, attempts to introduce
17 or causes to be introduced into a consumer's file information
18 which the officer or employee knows to be erroneous for the
19 purpose of wrongfully damaging or wrongfully enhancing the
20 credit information of any individual commits a misdemeanor of
21 the third degree and shall, upon conviction, be sentenced to pay
22 a fine of not more than $5,000 or to imprisonment for not more
23 than one year, or both.
24 Section 19. Disclosure of medical information.
25 Whenever any provision of this act requires disclosure of
26 medical information or the disclosure of a reason for adverse
27 action which involves medical information, the information or
28 reason shall be disclosed only to a physician designated by the
29 consumer for that purpose.
30 Section 20. Disclosures to governmental agencies.
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1 Notwithstanding the provisions of section 3, a consumer
2 reporting agency may furnish identifying information respecting
3 any consumer, limited to the consumer's name, address, former
4 addresses, places of employment or former places of employment
5 to a governmental agency. A consumer agency may also furnish
6 information contained in a consumer's file to a government
7 agency for law enforcement purposes.
8 Section 21. Effective date.
9 This act shall take effect in 60 days.
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