PUBLIC LAW 104-208—SEPT. 30, 1996 110 STAT. 3009-430 'consumer reporting agency that compiles and maintains files on consumers on a nationwide basis' means a consumer reporting agency that regularly engages in the practice of assembling or evaluating, and maintaining, for the purpose of furnishing consumer reports to third parties bearing on a consumer's credit worthiness, credit standing, or credit capacity, each of the following regarding consumers residing nationwide: "(1) Public record information. "(2) Credit account information from persons who furnish that information regularly and in the ordinary course of business.". SEC. 2403. FURNISHING CONSUMER REPORTS; USE FOR EMPLOYMENT PURPOSES. (a) FURNISHING CONSUMER REPORTS FOR BUSINESS TRANS- ACTIONS. —Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended— (1) by inserting "(a) IN GENERAL. — " before "A consumer reporting agency"; and (2) in subsection (a)(3) (as so designated by paragraph (1) of this subsection), by striking subparagraph (E) and inserting the following: "(E) intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or "(F) otherwise has a legitimate business need for the information— "(i) in connection with a business transaction that is initiated by the consumer; or "(ii) to review an account to determine whether the consumer continues to meet the terms of the account.". (b) FURNISHING AND USING CONSUMER REPORTS FOR EMPLOY- MENT PURPOSES.—Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended by adding at the end the following new subsection: "(b) CONDITIONS FOR FURNISHING AND USING CONSUMER REPORTS FOR EMPLOYMENT PURPOSES.— "(1) CERTIFICATION FROM USER.—^A consumer reporting agency may furnish a consumer report for employment purposes only if— "(A) the person who obtains such report from the agency certifies to the agency that— "(i) the person has complied with paragraph (2) with respect to the consumer report, and the person will comply with paragraph (3) with respect to the consumer report if paragraph (3) becomes applicable; and "(ii) information from the consumer report will not be used in violation of any applicable Federal or State equal employment opportunity law or regulation; and "(B) the consumer reporting agency provides with the report a summary of the consumer's rights under this title, as prescribed by the Federal Trade Commission under section 609(c)(3).
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