Fair Credit Reporting Act

The Fair Credit Reporting Act is a federal statute that protects consumers by regulating the collection, dissemination and use of consumer credit information. The text of this statute is provided as general information to the public. It may be amended, revised, or rescinded at any time without notice. This information is not intended to be legal advice. For more information, please see our disclaimer.

15 U.S.C. § 1681s. Administrative enforcement

(a) Enforcement by Federal Trade Commission.
(1) Compliance with the requirements imposed under this title [15 USCS §§ 1681 et seq.] shall be enforced under the Federal Trade Commission Act [15 USCS §§ 41 et seq.] by the Federal Trade Commission with respect to consumer reporting agencies and all other persons subject thereto, except to the extent that enforcement of the requirements imposed under this title [15 USCS §§ 1681 et seq.] is specifically committed to some other government agency under subsection (b) hereof. For the purpose of the exercise by the Federal Trade Commission of its functions and powers under the Federal Trade Commission Act [15 USCS §§ 41 et seq.], a violation of any requirement or prohibition imposed under this title [15 USCS §§ 1681 et seq.] shall constitute an unfair or deceptive act or practice in commerce in violation of section 5(a) of the Federal Trade Commission Act [15 USCS § 45(a)] and shall be subject to enforcement by the Federal Trade Commission under section 5(b) thereof [15 USCS § 45(b)] with respect to any consumer reporting agency or person subject to enforcement by the Federal Trade Commission pursuant to this subsection, irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests in the Federal Trade Commission Act [15 USCS §§ 41 et seq.]. The Federal Trade Commission shall have such procedural, investigative, and enforcement powers, including the power to issue procedural rules in enforcing compliance with the requirements imposed under this title [15 USCS §§ 1681 et seq.] and to require the filing of reports, the production of documents, and the appearance of witnesses as though the applicable terms and conditions of the Federal Trade Commission Act [15 USCS §§ 41 et seq.] were part of this title [15 USCS §§ 1681 et seq.]. Any person violating any of the provisions of this title [15 USCS §§ 1681 et seq.] shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act [15 USCS §§ 41 et seq.] as though the applicable terms and provisions thereof were part of this title [15 USCS §§ 1681 et seq.].
(2) (A) In the event of a knowing violation, which constitutes a pattern or practice of violations of this title [15 USCS §§ 1681 et seq.], the Commission may commence a civil action to recover a civil penalty in a district court of the United States against any person that violates this title [15 USCS §§ 1681 et seq.]. In such action, such person shall be liable for a civil penalty of not more than $ 2,500 per violation.
(B) In determining the amount of a civil penalty under subparagraph (A), the court shall take into account the degree of culpability, any history of prior such conduct, ability to pay, effect on ability to continue to do business, and such other matters as justice may require.
(3) Notwithstanding paragraph (2), a court may not impose any civil penalty on a person for a violation of section 623(a)(1) [15 USCS § 1681s-2(a)(1)] unless the person has been enjoined from committing the violation, or ordered not to commit the violation, in an action or proceeding brought by or on behalf of the Federal Trade Commission, and has violated the injunction or order, and the court may not impose any civil penalty for any violation occurring before the date of the violation of the injunction or order.

(b) Enforcement by other agencies. Compliance with the requirements imposed under this title with respect to consumer reporting agencies, persons who use consumer reports from such agencies, persons who furnish information to such agencies, and users of information that are subject to subsection (d) of section 615 [15 USCS § 1681m(d)] shall be enforced under--
(1) section 8 of the Federal Deposit Insurance Act [12 USCS § 1818], in the case of--
(A) national banks, and Federal branches and Federal agencies of foreign banks, by the Office of the Comptroller of the Currency;
(B) member banks of the Federal Reserve System (other than national banks), branches and agencies of foreign banks (other than Federal branches, Federal agencies, and insured State branches of foreign banks), commercial lending companies owned or controlled by foreign banks, and organizations operating under section 25 or 25A of the Federal Reserve Act [12 USCS §§ 601 et seq. or §§ 611 et seq], by the Board of Governors of the Federal Reserve System; and
(C) banks insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System) and insured State branches of foreign banks, by the Board of Directors of the Federal Deposit Insurance Corporation;
(2) section 8 of the Federal Deposit Insurance Act [12 USCS § 1818], by the Director of the Office of Thrift Supervision, in the case of a savings association the deposits of which are insured by the Federal Deposit Insurance Corporation;
(3) the Federal Credit Union Act [12 USCS §§ 1751 et seq.], by the Administrator of the National Credit Union Administration [National Credit Union Administration Board] with respect to any Federal credit union;
(4) the Acts to regulate commerce [49 USCS §§ 10101 et seq.], by the Secretary of Transportation, with respect to all carriers subject to the jurisdiction of the Surface Transportation Board;
(5) the Federal Aviation Act of 1958 [49 USCS §§ 40101 et seq.], by the Secretary of Transportation with respect to any air carrier or foreign air carrier subject to that Act [49 USCS §§ 40101 et seq.]; and
(6) the Packers and Stockyards Act, 1921 [7 USCS §§ 181 et seq.] (except as provided in section 406 of that Act [7 USCS §§ 226 and 227]), by the Secretary of Agriculture with respect to any activities subject to that Act [7 USCS §§ 181 et seq.].

The terms used in paragraph (1) that are not defined in this title [15 USCS §§ 1681 et seq.] or otherwise defined in section 3(s) of the Federal Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning given to them in section 1(b) of the International Banking Act of 1978 (12 U.S.C. 3101).

(c) State action for violations.
(1) Authority of States. In addition to such other remedies as are provided under State law, if the chief law enforcement officer of a State, or an official or agency designated by a State, has reason to believe that any person has violated or is violating this title [15 USCS §§ 1681 et seq.], the State--
(A) may bring an action to enjoin such violation in any appropriate United States district court or in any other court of competent jurisdiction;
(B) subject to paragraph (5), may bring an action on behalf of the residents of the State to recover--
(i) damages for which the person is liable to such residents under sections 616 and 617 [15 USCS §§ 1681n, 1681o] as a result of the violation;
(ii) in the case of a violation described in any of paragraphs (1) through (3) of section 623(c) [15 USCS § 1681s-2(c)], damages for which the person would, but for section 623(c) [15 USCS § 1681s-2(c)], be liable to such residents as a result of the violation; or
(iii) damages of not more than $ 1,000 for each willful or negligent violation; and
(C) in the case of any successful action under subparagraph (A) or (B), shall be awarded the costs of the action and reasonable attorney fees as determined by the court.
(2) Rights of Federal regulators. The State shall serve prior written notice of any action under paragraph (1) upon the Federal Trade Commission or the appropriate Federal regulator determined under subsection (b) and provide the Commission or appropriate Federal regulator with a copy of its complaint, except in any case in which such prior notice is not feasible, in which case the State shall serve such notice immediately upon instituting such action. The Federal Trade Commission or appropriate Federal regulator shall have the right--
(A) to intervene in the action;
(B) upon so intervening, to be heard on all matters arising therein;
(C) to remove the action to the appropriate United States district court; and
(D) to file petitions for appeal.
(3) Investigatory powers. For purposes of bringing any action under this subsection, nothing in this subsection shall prevent the chief law enforcement officer, or an official or agency designated by a State, from exercising the powers conferred on the chief law enforcement officer or such official by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.
(4) Limitation on State action while Federal action pending. If the Federal Trade Commission or the appropriate Federal regulator has instituted a civil action or an administrative action under section 8 of the Federal Deposit Insurance Act [12 USCS § 1818] for a violation of this title [15 USCS §§ 1681 et seq.], no State may, during the pendency of such action, bring an action under this section against any defendant named in the complaint of the Commission or the appropriate Federal regulator for any violation of this title [15 USCS §§ 1681 et seq.] that is alleged in that complaint.
(5) Limitations on State actions for certain violations.
(A) Violation of injunction required. A State may not bring an action against a person under paragraph (1)(B) for a violation described in any of paragraphs (1) through (3) of section 623(c) [15 USCS § 1681s-2(c)], unless--
(i) the person has been enjoined from committing the violation, in an action brought by the State under paragraph (1)(A); and
(ii) the person has violated the injunction.
(B) Limitation on damages recoverable. In an action against a person under paragraph (1)(B) for a violation described in any of paragraphs (1) through (3) of section 623(c) [15 USCS § 1681s-2(c)], a State may not recover any damages incurred before the date of the violation of an injunction on which the action is based.

(d) Enforcement by other agencies. For the purpose of the exercise by any agency referred to in subsection (b) of its powers under any Act referred to in that subsection, a violation of any requirement imposed under this title [15 USCS §§ 1681 et seq.] shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any provision of law specifically referred to in subsection (b), each of the agencies referred to in that subsection may exercise, for the purpose of enforcing compliance with any requirement imposed under this title [15 USCS §§ 1681 et seq.] any other authority conferred on it by law.

(e) Regulatory authority.
(1) The Federal banking agencies referred to in paragraphs (1) and (2) of subsection (b) shall jointly prescribe such regulations as necessary to carry out the purposes of this Act [15 USCS §§ 1681 et seq.] with respect to any persons identified under paragraphs (1) and (2) of subsection (b), and the Board of Governors of the Federal Reserve System shall have authority to prescribe regulations consistent with such joint regulations with respect to bank holding companies and affiliates (other than depository institutions and consumer reporting agencies) of such holding companies.
(2) The Board of the National Credit Union Administration shall prescribe such regulations as necessary to carry out the purposes of this Act [15 USCS §§ 1681 et seq.] with respect to any persons identified under paragraph (3) of subsection (b).

(f) Coordination of consumer complaint investigations.
(1) In general. Each consumer reporting agency described in section 603(p) [15 USCS § 1681a(p)] shall develop and maintain procedures for the referral to each other such agency of any consumer complaint received by the agency alleging identity theft, or requesting a fraud alert under section 605A [15 USCS § 1681c-1] or a block under section 605B [15 USCS § 1681c-2].
(2) Model form and procedure for reporting identity theft. The Commission, in consultation with the Federal banking agencies and the National Credit Union Administration, shall develop a model form and model procedures to be used by consumers who are victims of identity theft for contacting and informing creditors and consumer reporting agencies of the fraud.
(3) Annual summary reports. Each consumer reporting agency described in section 603(p) [15 USCS § 1681a(p)] shall submit an annual summary report to the Commission on consumer complaints received by the agency on identity theft or fraud alerts.

(g) FTC regulation of coding of trade names. If the Commission determines that a person described in paragraph (9) of section 623(a) [15 USCS § 1681s-2(a)] has not met the requirements of such paragraph, the Commission shall take action to ensure the person's compliance with such paragraph, which may include issuing model guidance or prescribing reasonable policies and procedures, as necessary to ensure that such person complies with such paragraph.