PRINTER'S NO. 783
No. 719 Session of 1999
INTRODUCED BY GREENLEAF, SALVATORE, SCHWARTZ, KASUNIC AND TOMLINSON, APRIL 9, 1999
REFERRED TO BANKING AND INSURANCE, APRIL 9, 1999
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. Unlawful practices 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 19990S0719B0783 - 2 -
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 19990S0719B0783 - 3 -
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. 19990S0719B0783 - 4 -
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 19990S0719B0783 - 5 -
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 19990S0719B0783 - 6 -
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. 19990S0719B0783 - 7 -
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 19990S0719B0783 - 8 -
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 19990S0719B0783 - 9 -
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 19990S0719B0783 - 10 -
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, 19990S0719B0783 - 11 -
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 19990S0719B0783 - 12 -
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 19990S0719B0783 - 13 -
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 19990S0719B0783 - 14 -
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 19990S0719B0783 - 15 -
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 19990S0719B0783 - 16 -
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. 19990S0719B0783 - 17 -
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 19990S0719B0783 - 18 -
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: 19990S0719B0783 - 19 -
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 19990S0719B0783 - 20 -
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 19990S0719B0783 - 21 -
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. 19990S0719B0783 - 22 -
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. 19990S0719B0783 - 23 -
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. C4L12SFL/19990S0719B0783 - 24 -