15 U.S.C. § 1681m — Requirements on users of consumer re-

Page 1596 TITLE 15—COMMERCE AND TRADE § 1681k distribution required by section 612(a)(1)(B) [15 U.S.C. 1681j(a)(1)(B)], as amended by this section, in a manner that— ‘‘(A) does not temporarily overwhelm such con- sumer reporting agencies with requests for disclo- sures of consumer reports beyond their capacity to deliver; and ‘‘(B) does not deny creditors, other users, and con- sumers access to consumer reports on a time-sen- sitive basis for specific purposes, such as home pur- chases or suspicions of identity theft, during the transition period. ‘‘(5) TIMING.—Regulations required by this subsection shall— ‘‘(A) be issued in final form not later than 6 months after the date of enactment of this Act [Dec. 4, 2003]; and ‘‘(B) become effective not later than 6 months after the date on which they are issued in final form. ‘‘(6) SCOPE OF REGULATIONS.— ‘‘(A) IN GENERAL.—The Bureau shall, by rule, deter- mine whether to require a consumer reporting agency that compiles and maintains files on consumers on substantially a nationwide basis, other than one de- scribed in section 603(p) of the Fair Credit Reporting Act [15 U.S.C. 1681a(p)], to make free consumer re- ports available upon consumer request, and if so, whether such consumer reporting agencies should make such free reports available through the central- ized source described in paragraph (1)(A). ‘‘(B) CONSIDERATIONS.—Before making any deter- mination under subparagraph (A), the Bureau shall consider— ‘‘(i) the number of requests for consumer reports to, and the number of consumer reports generated by, the consumer reporting agency, in comparison with consumer reporting agencies described in sub- sections (p) and (w) [now (x)] of section 603 of the Fair Credit Reporting Act [15 U.S.C. 1681a(p), (w) [x]]; ‘‘(ii) the overall scope of the operations of the consumer reporting agency; ‘‘(iii) the needs of consumers for access to con- sumer reports provided by consumer reporting agencies free of charge; ‘‘(iv) the costs of providing access to consumer re- ports by consumer reporting agencies free of charge; and ‘‘(v) the effects on the ongoing competitive viabil- ity of such consumer reporting agencies if such free access is required.’’ [For definitions of terms used in section 211(d) of Pub. L. 108–159, set out above, see section 2 of Pub. L. 108–159, set out as a Definitions note under section 1681 of this title.] § 1681k. Public record information for employ- ment purposes (a) In general A consumer reporting agency which furnishes a consumer report for employment purposes and which for that purpose compiles and reports items of information on consumers which are matters of public record and are likely to have an adverse effect upon a consumer’s ability to obtain employment shall— (1) at the time such public record informa- tion is reported to the user of such consumer report, notify the consumer of the fact that public record information is being reported by the consumer reporting agency, together with the name and address of the person to whom such information is being reported; or (2) maintain strict procedures designed to insure that whenever public record informa- tion which is likely to have an adverse effect on a consumer’s ability to obtain employment is reported it is complete and up to date. For purposes of this paragraph, items of public record relating to arrests, indictments, con- victions, suits, tax liens, and outstanding judgments shall be considered up to date if the current public record status of the item at the time of the report is reported. (b) Exemption for national security investiga- tions Subsection (a) does not apply in the case of an agency or department of the United States Gov- ernment that seeks to obtain and use a con- sumer report for employment purposes, if the head of the agency or department makes a writ- ten finding as prescribed under section 1681b(b)(4)(A) of this title. (Pub. L. 90–321, title VI, § 613, as added Pub. L. 91–508, title VI, § 601, Oct. 26, 1970, 84 Stat. 1133; amended Pub. L. 105–347, § 4(b), Nov. 2, 1998, 112 Stat. 3210.) Editorial Notes AMENDMENTS 1998—Pub. L. 105–347 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–347 deemed to have same effective date as amendments made by section 2403 of Pub. L. 104–208, see section 7 of Pub. L. 105–347, set out as a note under section 1681a of this title. EFFECTIVE DATE Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of Pub. L. 90–321, as added by Pub. L. 91–508, set out as a note under section 1681 of this title. § 1681l. Restrictions on investigative consumer reports Whenever a consumer reporting agency pre- pares an investigative consumer report, no ad- verse information in the consumer report (other than information which is a matter of public record) may be included in a subsequent con- sumer report unless such adverse information has been verified in the process of making such subsequent consumer report, or the adverse in- formation was received within the three-month period preceding the date the subsequent report is furnished. (Pub. L. 90–321, title VI, § 614, as added Pub. L. 91–508, title VI, § 601, Oct. 26, 1970, 84 Stat. 1133.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of Pub. L. 90–321, as added by Pub. L. 91–508, set out as a note under section 1681 of this title. § 1681m. Requirements on users of consumer re- ports (a) Duties of users taking adverse actions on basis of information contained in consumer reports If any person takes any adverse action with respect to any consumer that is based in whole Page 1597 TITLE 15—COMMERCE AND TRADE § 1681m or in part on any information contained in a consumer report, the person shall— (1) provide oral, written, or electronic notice of the adverse action to the consumer; (2) provide to the consumer written or elec- tronic disclosure— (A) of a numerical credit score as defined in section 1681g(f)(2)(A) of this title used by such person in taking any adverse action based in whole or in part on any information in a consumer report; and (B) of the information set forth in subpara- graphs (B) through (E) of section 1681g(f)(1) of this title; (3) provide to the consumer orally, in writ- ing, or electronically— (A) the name, address, and telephone num- ber of the consumer reporting agency (in- cluding a toll-free telephone number estab- lished by the agency if the agency compiles and maintains files on consumers on a na- tionwide basis) that furnished the report to the person; and (B) a statement that the consumer report- ing agency did not make the decision to take the adverse action and is unable to pro- vide the consumer the specific reasons why the adverse action was taken; and (4) provide to the consumer an oral, written, or electronic notice of the consumer’s right— (A) to obtain, under section 1681j of this title, a free copy of a consumer report on the consumer from the consumer reporting agency referred to in paragraph (3), which notice shall include an indication of the 60- day period under that section for obtaining such a copy; and (B) to dispute, under section 1681i of this title, with a consumer reporting agency the accuracy or completeness of any informa- tion in a consumer report furnished by the agency. (b) Adverse action based on information ob- tained from third parties other than con- sumer reporting agencies (1) In general Whenever credit for personal, family, or household purposes involving a consumer is denied or the charge for such credit is in- creased either wholly or partly because of in- formation obtained from a person other than a consumer reporting agency bearing upon the consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, the user of such information shall, within a rea- sonable period of time, upon the consumer’s written request for the reasons for such ad- verse action received within sixty days after learning of such adverse action, disclose the nature of the information to the consumer. The user of such information shall clearly and accurately disclose to the consumer his right to make such written request at the time such adverse action is communicated to the con- sumer. (2) Duties of person taking certain actions based on information provided by affiliate (A) Duties, generally If a person takes an action described in subparagraph (B) with respect to a con- sumer, based in whole or in part on informa- tion described in subparagraph (C), the per- son shall— (i) notify the consumer of the action, in- cluding a statement that the consumer may obtain the information in accordance with clause (ii); and (ii) upon a written request from the con- sumer received within 60 days after trans- mittal of the notice required by clause (i), disclose to the consumer the nature of the information upon which the action is based by not later than 30 days after re- ceipt of the request. (B) Action described An action referred to in subparagraph (A) is an adverse action described in section 1681a(k)(1)(A) of this title, taken in connec- tion with a transaction initiated by the con- sumer, or any adverse action described in clause (i) or (ii) of section 1681a(k)(1)(B) of this title. (C) Information described Information referred to in subparagraph (A)— (i) except as provided in clause (ii), is in- formation that— (I) is furnished to the person taking the action by a person related by com- mon ownership or affiliated by common corporate control to the person taking the action; and (II) bears on the credit worthiness, credit standing, credit capacity, char- acter, general reputation, personal char- acteristics, or mode of living of the con- sumer; and (ii) does not include— (I) information solely as to trans- actions or experiences between the con- sumer and the person furnishing the in- formation; or (II) information in a consumer report. (c) Reasonable procedures to assure compliance No person shall be held liable for any violation of this section if he shows by a preponderance of the evidence that at the time of the alleged vio- lation he maintained reasonable procedures to assure compliance with the provisions of this section. (d) Duties of users making written credit or in- surance solicitations on basis of information contained in consumer files (1) In general Any person who uses a consumer report on any consumer in connection with any credit or insurance transaction that is not initiated by the consumer, that is provided to that person under section 1681b(c)(1)(B) of this title, shall provide with each written solicitation made to the consumer regarding the transaction a clear and conspicuous statement that— Page 1598 TITLE 15—COMMERCE AND TRADE § 1681m (A) information contained in the con- sumer’s consumer report was used in connec- tion with the transaction; (B) the consumer received the offer of credit or insurance because the consumer satisfied the criteria for credit worthiness or insurability under which the consumer was selected for the offer; (C) if applicable, the credit or insurance may not be extended if, after the consumer responds to the offer, the consumer does not meet the criteria used to select the con- sumer for the offer or any applicable criteria bearing on credit worthiness or insurability or does not furnish any required collateral; (D) the consumer has a right to prohibit information contained in the consumer’s file with any consumer reporting agency from being used in connection with any credit or insurance transaction that is not initiated by the consumer; and (E) the consumer may exercise the right referred to in subparagraph (D) by notifying a notification system established under sec- tion 1681b(e) of this title. (2) Disclosure of address and telephone num- ber; format A statement under paragraph (1) shall— (A) include the address and toll-free tele- phone number of the appropriate notifica- tion system established under section 1681b(e) of this title; and (B) be presented in such format and in such type size and manner as to be simple and easy to understand, as established by the Bureau, by rule, in consultation with the Federal Trade Commission, the Federal banking agencies, and the National Credit Union Administration. (3) Maintaining criteria on file A person who makes an offer of credit or in- surance to a consumer under a credit or insur- ance transaction described in paragraph (1) shall maintain on file the criteria used to se- lect the consumer to receive the offer, all cri- teria bearing on credit worthiness or insur- ability, as applicable, that are the basis for de- termining whether or not to extend credit or insurance pursuant to the offer, and any re- quirement for the furnishing of collateral as a condition of the extension of credit or insur- ance, until the expiration of the 3-year period beginning on the date on which the offer is made to the consumer. (4) Authority of Federal agencies regarding un- fair or deceptive acts or practices not af- fected This section is not intended to affect the au- thority of any Federal or State agency to en- force a prohibition against unfair or deceptive acts or practices, including the making of false or misleading statements in connection with a credit or insurance transaction that is not initiated by the consumer. (e) Red flag guidelines and regulations required (1) Guidelines The Federal banking agencies, the National Credit Union Administration, the Federal Trade Commission, the Commodity Futures Trading Commission, and the Securities and Exchange Commission shall jointly, with re- spect to the entities that are subject to their respective enforcement authority under sec- tion 1681s of this title— (A) establish and maintain guidelines for use by each financial institution and each creditor regarding identity theft with re- spect to account holders at, or customers of, such entities, and update such guidelines as often as necessary; (B) prescribe regulations requiring each fi- nancial institution and each creditor to es- tablish reasonable policies and procedures for implementing the guidelines established pursuant to subparagraph (A), to identify possible risks to account holders or cus- tomers or to the safety and soundness of the institution or customers; and (C) prescribe regulations applicable to card issuers to ensure that, if a card issuer re- ceives notification of a change of address for an existing account, and within a short pe- riod of time (during at least the first 30 days after such notification is received) receives a request for an additional or replacement card for the same account, the card issuer may not issue the additional or replacement card, unless the card issuer, in accordance with reasonable policies and procedures— (i) notifies the cardholder of the request at the former address of the cardholder and provides to the cardholder a means of promptly reporting incorrect address changes; (ii) notifies the cardholder of the request by such other means of communication as the cardholder and the card issuer pre- viously agreed to; or (iii) uses other means of assessing the validity of the change of address, in ac- cordance with reasonable policies and pro- cedures established by the card issuer in accordance with the regulations prescribed under subparagraph (B). (2) Criteria (A) In general In developing the guidelines required by paragraph (1)(A), the agencies described in paragraph (1) shall identify patterns, prac- tices, and specific forms of activity that in- dicate the possible existence of identity theft. (B) Inactive accounts In developing the guidelines required by paragraph (1)(A), the agencies described in paragraph (1) shall consider including rea- sonable guidelines providing that when a transaction occurs with respect to a credit or deposit account that has been inactive for more than 2 years, the creditor or financial institution shall follow reasonable policies and procedures that provide for notice to be given to a consumer in a manner reasonably designed to reduce the likelihood of identity theft with respect to such account. (3) Consistency with verification requirements Guidelines established pursuant to para- graph (1) shall not be inconsistent with the Page 1599 TITLE 15—COMMERCE AND TRADE § 1681m policies and procedures required under section 5318(l) of title 31. (4) Definitions As used in this subsection, the term ‘‘cred- itor’’— (A) means a creditor, as defined in section 1691a of this title, that regularly and in the ordinary course of business— (i) obtains or uses consumer reports, di- rectly or indirectly, in connection with a credit transaction; (ii) furnishes information to consumer reporting agencies, as described in section 1681s–2 of this title, in connection with a credit transaction; or (iii) advances funds to or on behalf of a person, based on an obligation of the per- son to repay the funds or repayable from specific property pledged by or on behalf of the person; (B) does not include a creditor described in subparagraph (A)(iii) that advances funds on behalf of a person for expenses incidental to a service provided by the creditor to that person; and (C) includes any other type of creditor, as defined in that section 1691a of this title, as the agency described in paragraph (1) having authority over that creditor may determine appropriate by rule promulgated by that agency, based on a determination that such creditor offers or maintains accounts that are subject to a reasonably foreseeable risk of identity theft. (f) Prohibition on sale or transfer of debt caused by identity theft (1) In general No person shall sell, transfer for consider- ation, or place for collection a debt that such person has been notified under section 1681c–2 of this title has resulted from identity theft. (2) Applicability The prohibitions of this subsection shall apply to all persons collecting a debt described in paragraph (1) after the date of a notifica- tion under paragraph (1). (3) Rule of construction Nothing in this subsection shall be con- strued to prohibit— (A) the repurchase of a debt in any case in which the assignee of the debt requires such repurchase because the debt has resulted from identity theft; (B) the securitization of a debt or the pledging of a portfolio of debt as collateral in connection with a borrowing; or (C) the transfer of debt as a result of a merger, acquisition, purchase and assump- tion transaction, or transfer of substantially all of the assets of an entity. (g) Debt collector communications concerning identity theft If a person acting as a debt collector (as that term is defined in subchapter V) on behalf of a third party that is a creditor or other user of a consumer report is notified that any informa- tion relating to a debt that the person is at- tempting to collect may be fraudulent or may be the result of identity theft, that person shall— (1) notify the third party that the informa- tion may be fraudulent or may be the result of identity theft; and (2) upon request of the consumer to whom the debt purportedly relates, provide to the consumer all information to which the con- sumer would otherwise be entitled if the con- sumer were not a victim of identity theft, but wished to dispute the debt under provisions of law applicable to that person. (h) Duties of users in certain credit transactions (1) In general Subject to rules prescribed as provided in paragraph (6), if any person uses a consumer report in connection with an application for, or a grant, extension, or other provision of, credit on material terms that are materially less favorable than the most favorable terms available to a substantial proportion of con- sumers from or through that person, based in whole or in part on a consumer report, the per- son shall provide an oral, written, or elec- tronic notice to the consumer in the form and manner required by regulations prescribed in accordance with this subsection. (2) Timing The notice required under paragraph (1) may be provided at the time of an application for, or a grant, extension, or other provision of, credit or the time of communication of an ap- proval of an application for, or grant, exten- sion, or other provision of, credit, except as provided in the regulations prescribed under paragraph (6). (3) Exceptions No notice shall be required from a person under this subsection if— (A) the consumer applied for specific mate- rial terms and was granted those terms, un- less those terms were initially specified by the person after the transaction was initi- ated by the consumer and after the person obtained a consumer report; or (B) the person has provided or will provide a notice to the consumer under subsection (a) in connection with the transaction. (4) Other notice not sufficient A person that is required to provide a notice under subsection (a) cannot meet that require- ment by providing a notice under this sub- section. (5) Content and delivery of notice A notice under this subsection shall, at a minimum— (A) include a statement informing the con- sumer that the terms offered to the con- sumer are set based on information from a consumer report; (B) identify the consumer reporting agen- cy furnishing the report; (C) include a statement informing the con- sumer that the consumer may obtain a copy of a consumer report from that consumer re- porting agency without charge; (D) include the contact information speci- fied by that consumer reporting agency for Page 1600 TITLE 15—COMMERCE AND TRADE § 1681m obtaining such consumer reports (including a toll-free telephone number established by the agency in the case of a consumer report- ing agency described in section 1681a(p) of this title); and (E) include a statement informing the con- sumer of— (i) a numerical credit score as defined in section 1681g(f)(2)(A) of this title, used by such person in making the credit decision described in paragraph (1) based in whole or in part on any information in a con- sumer report; and (ii) the information set forth in subpara- graphs (B) through (E) of section 1681g(f)(1) of this title. (6) Rulemaking (A) Rules required The Bureau shall prescribe rules to carry out this subsection. (B) Content Rules required by subparagraph (A) shall address, but are not limited to— (i) the form, content, time, and manner of delivery of any notice under this sub- section; (ii) clarification of the meaning of terms used in this subsection, including what credit terms are material, and when credit terms are materially less favorable; (iii) exceptions to the notice require- ment under this subsection for classes of persons or transactions regarding which the agencies determine that notice would not significantly benefit consumers; (iv) a model notice that may be used to comply with this subsection; and (v) the timing of the notice required under paragraph (1), including the cir- cumstances under which the notice must be provided after the terms offered to the consumer were set based on information from a consumer report. (7) Compliance A person shall not be liable for failure to perform the duties required by this section if, at the time of the failure, the person main- tained reasonable policies and procedures to comply with this section. (8) Enforcement (A) No civil actions Sections 1681n and 1681o of this title shall not apply to any failure by any person to comply with this section. (B) Administrative enforcement This section shall be enforced exclusively under section 1681s of this title by the Fed- eral agencies and officials identified in that section. (Pub. L. 90–321, title VI, § 615, as added Pub. L. 91–508, title VI, § 601, Oct. 26, 1970, 84 Stat. 1133; amended Pub. L. 104–208, div. A, title II, § 2411, Sept. 30, 1996, 110 Stat. 3009–443; Pub. L. 108–159, title I, §§ 114, 154(b), 155, title II, § 213(a), title III, § 311(a), title VIII, § 811(h), Dec. 4, 2003, 117 Stat. 1960, 1967, 1978, 1988, 2012; Pub. L. 111–203, title X, §§ 1088(a)(2)(C), (7)–(9), 1100F, July 21, 2010, 124 Stat. 2087, 2088, 2112; Pub. L. 111–319, § 2(a), Dec. 18, 2010, 124 Stat. 3457.) Editorial Notes AMENDMENTS 2010—Subsec. (a)(2) to (4). Pub. L. 111–203, § 1100F(1), added par. (2), redesignated former pars. (2) and (3) as (3) and (4), respectively, and substituted ‘‘paragraph (3)’’ for ‘‘paragraph (2)’’ in par. (4). Subsec. (d)(2)(B). Pub. L. 111–203, § 1088(a)(7), sub- stituted ‘‘the Federal Trade Commission, the Federal banking agencies,’’ for ‘‘the Federal banking agencies’’. Pub. L. 111–203, § 1088(a)(2)(C), substituted ‘‘the Bu- reau’’ for ‘‘the Commission’’. Subsec. (e)(1). Pub. L. 111–203, § 1088(a)(8), substituted ‘‘the Federal Trade Commission, the Commodity Fu- tures Trading Commission, and the Securities and Ex- change Commission’’ for ‘‘and the Commission’’ in in- troductory provisions. Subsec. (e)(4). Pub. L. 111–319 added par. (4). Subsec. (h)(5)(E). Pub. L. 111–203, § 1100F(2), added sub- par. (E). Subsec. (h)(6)(A). Pub. L. 111–203, § 1088(a)(9), added subpar. (A) and struck out former subpar. (A). Prior to amendment, text read as follows: ‘‘The Commission and the Board shall jointly prescribe rules.’’ 2003—Subsec. (d)(2). Pub. L. 108–159, § 213(a), amended heading and text of par. (2) generally. Prior to amend- ment, text read as follows: ‘‘A statement under para- graph (1) shall include the address and toll-free tele- phone number of the appropriate notification system established under section 1681b(e) of this title.’’ Subsec. (e). Pub. L. 108–159, § 811(h), repealed Pub. L. 104–208, § 2411(c). See 1996 Amendment note below. Pub. L. 108–159, § 114, added subsec. (e) and struck out former subsec. (e) designation that had been added with no heading or text by Pub. L. 104–208, § 2411(c). See note above and 1996 Amendment note below. Subsec. (f). Pub. L. 108–159, § 154(b), added subsec. (f). Subsec. (g). Pub. L. 108–159, § 155, added subsec. (g). Subsec. (h). Pub. L. 108–159, § 311(a), added subsec. (h). 1996—Subsec. (a). Pub. L. 104–208, § 2411(a), inserted heading and amended text of subsec. (a) generally. Prior to amendment, text read as follows: ‘‘Whenever credit or insurance for personal, family, or household purposes, or employment involving a consumer is de- nied or the charge for such credit or insurance is in- creased either wholly or partly because of information contained in a consumer report from a consumer re- porting agency, the user of the consumer report shall so advise the consumer against whom such adverse ac- tion has been taken and supply the name and address of the consumer reporting agency making the report.’’ Subsec. (b). Pub. L. 104–208, § 2411(e), inserted subsec. heading, designated existing provisions as par. (1) and inserted heading, and added par. (2). Subsec. (c). Pub. L. 104–208, § 2411(d), substituted ‘‘this section’’ for ‘‘subsections (a) and (b) of this section’’. Subsec. (d). Pub. L. 104–208, § 2411(b), added subsec. (d). Subsec. (e). Pub. L. 104–208, § 2411(c), which added sub- sec. (e) containing subsec. designation, but no heading or text, was repealed by Pub. L. 108–159, § 811(h). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–319, § 2(b), Dec. 18, 2010, 124 Stat. 3458, pro- vided that: ‘‘The amendment made by this section [amending this section] shall become effective on the date of enactment of this Act [Dec. 18, 2010].’’ Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE OF 2003 AMENDMENT Amendment by Pub. L. 108–159 subject to joint regu- lations establishing effective dates as prescribed by Page 1601 TITLE 15—COMMERCE AND TRADE § 1681n Federal Reserve Board and Federal Trade Commission, except as otherwise provided, see section 3 of Pub. L. 108–159, set out as a note under section 1681 of this title. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–208 effective 365 days after Sept. 30, 1996, with special rule for early compliance, see section 2420 of Pub. L. 104–208, set out as a note under section 1681a of this title. EFFECTIVE DATE Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of Pub. L. 90–321, as added by Pub. L. 91–508, set out as a note under section 1681 of this title. REGULATIONS Pub. L. 108–159, title II, § 213(b), Dec. 4, 2003, 117 Stat. 1979, provided that: ‘‘Regulations required by section 615(d)(2) of the Fair Credit Reporting Act [15 U.S.C. 1681m(d)(2)], as amended by this section, shall be issued in final form not later than 1 year after the date of en- actment of this Act [Dec. 4, 2003].’’ § 1681n. Civil liability for willful noncompliance (a) In general Any person who willfully fails to comply with any requirement imposed under this subchapter with respect to any consumer is liable to that consumer in an amount equal to the sum of— (1)(A) any actual damages sustained by the consumer as a result of the failure or damages of not less than $100 and not more than $1,000; or (B) in the case of liability of a natural per- son for obtaining a consumer report under false pretenses or knowingly without a per- missible purpose, actual damages sustained by the consumer as a result of the failure or $1,000, whichever is greater; (2) such amount of punitive damages as the court may allow; and (3) in the case of any successful action to en- force any liability under this section, the costs of the action together with reasonable attorney’s fees as determined by the court. (b) Civil liability for knowing noncompliance Any person who obtains a consumer report from a consumer reporting agency under false pretenses or knowingly without a permissible purpose shall be liable to the consumer report- ing agency for actual damages sustained by the consumer reporting agency or $1,000, whichever is greater. (c) Attorney’s fees Upon a finding by the court that an unsuccess- ful pleading, motion, or other paper filed in con- nection with an action under this section was filed in bad faith or for purposes of harassment, the court shall award to the prevailing party at- torney’s fees reasonable in relation to the work expended in responding to the pleading, motion, or other paper. (d) Clarification of willful noncompliance For the purposes of this section, any person who printed an expiration date on any receipt provided to a consumer cardholder at a point of sale or transaction between December 4, 2004, and June 3, 2008, but otherwise complied with the requirements of section 1681c(g) of this title for such receipt shall not be in willful non- compliance with section 1681c(g) of this title by reason of printing such expiration date on the receipt. (Pub. L. 90–321, title VI, § 616, as added Pub. L. 91–508, title VI, § 601, Oct. 26, 1970, 84 Stat. 1134; amended Pub. L. 104–208, div. A, title II, § 2412(a)–(c), (e)(1), Sept. 30, 1996, 110 Stat. 3009–446; Pub. L. 110–241, § 3(a), June 3, 2008, 122 Stat. 1566.) Editorial Notes AMENDMENTS 2008—Subsec. (d). Pub. L. 110–241 added subsec. (d). 1996—Subsec. (a). Pub. L. 104–208, § 2412(a), designated existing provisions as subsec. (a), inserted heading, and in introductory provisions substituted ‘‘Any person who’’ for ‘‘Any consumer reporting agency or user of information which’’. Subsec. (a)(1). Pub. L. 104–208, § 2412(b), amended par. (1) generally. Prior to amendment, par. (1) read as fol- lows: ‘‘any actual damages sustained by the consumer as a result of the failure;’’. Subsec. (b). Pub. L. 104–208, § 2412(c), added subsec. (b). Subsec. (c). Pub. L. 104–208, § 2412(e)(1), added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–208 effective 365 days after Sept. 30, 1996, with special rule for early compliance, see section 2420 of Pub. L. 104–208, set out as a note under section 1681a of this title. EFFECTIVE DATE Section effective upon the expiration of one hundred and eighty days following Oct. 26, 1970, see section 504(d) of Pub. L. 90–321, as added by Pub. L. 91–508, set out as a note under section 1681 of this title. CONSTRUCTION Pub. L. 108–159, title III, § 312(f), Dec. 4, 2003, 117 Stat. 1993, provided that: ‘‘Nothing in this section, the amendments made by this section, or any other provi- sion of this Act [see Short Title of 2003 Amendment note set out under section 1601 of this title] shall be construed to affect any liability under section 616 or 617 of the Fair Credit Reporting Act (15 U.S.C. 1681n, 1681o) that existed on the day before the date of enactment of this Act [Dec. 4, 2003].’’ STATEMENT OF FINDINGS AND PURPOSE FOR 2008 AMENDMENT Pub. L. 110–241, § 2, June 3, 2008, 122 Stat. 1565, pro- vided that: ‘‘(a) FINDINGS.—The Congress finds as follows: ‘‘(1) The Fair and Accurate Credit Transactions Act [of 2003] (commonly referred to as ‘FACTA’) [Pub. L. 108–159, see Short Title of 2003 Amendment note set out under section 1601 of this title] was enacted into law in 2003 and 1 of the purposes of such Act is to pre- vent criminals from obtaining access to consumers’ private financial and credit information in order to reduce identity theft and credit card fraud. ‘‘(2) As part of that law, the Congress enacted a re- quirement, through an amendment to the Fair Credit Reporting Act [15 U.S.C. 1681 et seq.], that no person that accepts credit cards or debit cards for the trans- action of business shall print more than the last 5 digits of the card number or the expiration date upon any receipt provided to the card holder at the point of the sale or transaction. ‘‘(3) Many merchants understood that this require- ment would be satisfied by truncating the account