USE OF CONSUMER REPORTS FOR PRESCREENING; PROHIBITION ON UNAUTHORIZED OR UNCERTIFIED USE OF INFORMATION.

SEC. 2404. USE OF CONSUMER REPORTS FOR PRESCREENING; PROHIBITION ON UNAUTHORIZED OR UNCERTIFIED USE OF INFORMATION. (a) In General.— Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) (as amended by section 2403 of this chapter) is amended— (1) in subsection (a), by striking “A consumer reporting agency” and inserting “Subject to subsection (c), any consumer reporting agency”; and (2) by adding at the end the following new subsections: “(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); and “(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. “(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 110 STAT. 3009–432 “(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. “(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 2-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 2-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 110 STAT. 3009–433 “(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.”. (b) Use of Information Obtained From Reports.— Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) (as amended by subsection (a) of this section) is amended by adding at the end the following new subsection: “(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 110 STAT. 3009–434 “(2) the purpose is certified in accordance with section 607 by a prospective user of the report through a general or specific certification.”. (c) FTC Guidelines Regarding Prescreening for Insurance Transactions.— The Federal Trade Commission may issue such guidelines as it deems necessary with respect to the use of consumer reports in connection with insurance transactions that are not initiated by the consumer pursuant to section 604(c) of the Fair Credit Reporting Act, as added by subsection (a) of this section.