15 U.S.C. 1681b FCRA · Chapter 41: CONSUMER CREDIT PROTECTION
15 U.S.C. 1681b FCRA: Permissible purposes of consumer reports
United States Code, current through Public Law 119-136 (October 22, 2026). Retrieved 30 October 2026.
Amended by Pub. L. 108-159 (FACTA), according to the source credit.
Official text
In general
Subject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other:
In response to the order of a court having jurisdiction to issue such an order, a subpoena issued in connection with proceedings before a Federal grand jury, or a subpoena issued in accordance with section 5318 of title 31 or section 3486 of title 18.
In accordance with the written instructions of the consumer to whom it relates.
To a person which it has reason to believe—
intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or
intends to use the information for employment purposes; or
intends to use the information in connection with the underwriting of insurance involving the consumer; or
intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant’s financial responsibility or status; or
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
otherwise has a legitimate business need for the information—
in connection with a business transaction that is initiated by the consumer; or
to review an account to determine whether the consumer continues to meet the terms of the account.
executive departments and agencies in connection with the issuance of government-sponsored individually-billed travel charge cards.
In response to a request by the head of a State or local child support enforcement agency (or a State or local government official authorized by the head of such an agency), if the person making the request certifies to the consumer reporting agency that—
the consumer report is needed for the purpose of establishing an individual’s capacity to make child support payments, determining the appropriate level of such payments, or enforcing a child support order, award, agreement, or judgment;
the parentage of the consumer for the child to which the obligation relates has been established or acknowledged by the consumer in accordance with State laws under which the obligation arises (if required by those laws); and
the consumer report will be kept confidential, will be used solely for a purpose described in subparagraph (A), and will not be used in connection with any other civil, administrative, or criminal proceeding, or for any other purpose.
To an agency administering a State plan under section 654 of title 42 for use to set an initial or modified child support award.
To the Federal Deposit Insurance Corporation or the National Credit Union Administration as part of its preparation for its appointment or as part of its exercise of powers, as conservator, receiver, or liquidating agent for an insured depository institution or insured credit union under the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.] or the Federal Credit Union Act [12 U.S.C. 1751 et seq.], or other applicable Federal or State law, or in connection with the resolution or liquidation of a failed or failing insured depository institution or insured credit union, as applicable.
Conditions for furnishing and using consumer reports for employment purposes
Certification from user
A consumer reporting agency may furnish a consumer report for employment purposes only if—
the person who obtains such report from the agency certifies to the agency that—
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
information from the consumer report will not be used in violation of any applicable Federal or State equal employment opportunity law or regulation; and
the consumer reporting agency provides with the report, or has previously provided, a summary of the consumer’s rights under this subchapter, as prescribed by the Bureau under section 1681g(c)(3) 1 of this title.
Disclosure to consumer
In general
Except as provided in subparagraph (B), a person may not procure a consumer report, or cause a consumer report to be procured, for employment purposes with respect to any consumer, unless—
a clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes; and
the consumer has authorized in writing (which authorization may be made on the document referred to in clause (i)) the procurement of the report by that person.
Application by mail, telephone, computer, or other similar means
If a consumer described in subparagraph (C) applies for employment by mail, telephone, computer, or other similar means, at any time before a consumer report is procured or caused to be procured in connection with that application—
the person who procures the consumer report on the consumer for employment purposes shall provide to the consumer, by oral, written, or electronic means, notice that a consumer report may be obtained for employment purposes, and a summary of the consumer’s rights under section 1681m(a)(3) 1 of this title; and
the consumer shall have consented, orally, in writing, or electronically to the procurement of the report by that person.
Scope
Subparagraph (B) shall apply to a person procuring a consumer report on a consumer in connection with the consumer’s application for employment only if—
the consumer is applying for a position over which the Secretary of Transportation has the power to establish qualifications and maximum hours of service pursuant to the provisions of section 31502 of title 49, or a position subject to safety regulation by a State transportation agency; and
as of the time at which the person procures the report or causes the report to be procured the only interaction between the consumer and the person in connection with that employment application has been by mail, telephone, computer, or other similar means.
Conditions on use for adverse actions
In general
Except as provided in subparagraph (B), in using a consumer report for employment purposes, before taking any adverse action based in whole or in part on the report, the person intending to take such adverse action shall provide to the consumer to whom the report relates—
a copy of the report; and
a description in writing of the rights of the consumer under this subchapter, as prescribed by the Bureau under section 1681g(c)(3) 1 of this title.
Application by mail, telephone, computer, or other similar means
If a consumer described in subparagraph (C) applies for employment by mail, telephone, computer, or other similar means, and if a person who has procured a consumer report on the consumer for employment purposes takes adverse action on the employment application based in whole or in part on the report, then the person must provide to the consumer to whom the report relates, in lieu of the notices required under subparagraph (A) of this section and under section 1681m(a) of this title, within 3 business days of taking such action, an oral, written or electronic notification—
that adverse action has been taken based in whole or in part on a consumer report received from a consumer reporting agency;
of the name, address and telephone number of the consumer reporting agency that furnished the consumer report (including a toll-free telephone number established by the agency if the agency compiles and maintains files on consumers on a nationwide basis);
that the consumer reporting agency did not make the decision to take the adverse action and is unable to provide to the consumer the specific reasons why the adverse action was taken; and
that the consumer may, upon providing proper identification, request a free copy of a report and may dispute with the consumer reporting agency the accuracy or completeness of any information in a report.
If, under clause (B)(i)(IV), the consumer requests a copy of a consumer report from the person who procured the report, then, within 3 business days of receiving the consumer’s request, together with proper identification, the person must send or provide to the consumer a copy of a report and a copy of the consumer’s rights as prescribed by the Bureau under section 1681g(c)(3) 1 of this title.
Scope
Subparagraph (B) shall apply to a person procuring a consumer report on a consumer in connection with the consumer’s application for employment only if—
the consumer is applying for a position over which the Secretary of Transportation has the power to establish qualifications and maximum hours of service pursuant to the provisions of section 31502 of title 49, or a position subject to safety regulation by a State transportation agency; and
as of the time at which the person procures the report or causes the report to be procured the only interaction between the consumer and the person in connection with that employment application has been by mail, telephone, computer, or other similar means.
Exception for national security investigations
In general
In the case of an agency or department of the United States Government which seeks to obtain and use a consumer report for employment purposes, paragraph (3) shall not apply to any adverse action by such agency or department which is based in part on such consumer report, if the head of such agency or department makes a written finding that—
the consumer report is relevant to a national security investigation of such agency or department;
the investigation is within the jurisdiction of such agency or department;
there is reason to believe that compliance with paragraph (3) will—
endanger the life or physical safety of any person;
result in flight from prosecution;
result in the destruction of, or tampering with, evidence relevant to the investigation;
result in the intimidation of a potential witness relevant to the investigation;
result in the compromise of classified information; or
otherwise seriously jeopardize or unduly delay the investigation or another official proceeding.
Notification of consumer upon conclusion of investigation
Upon the conclusion of a national security investigation described in subparagraph (A), or upon the determination that the exception under subparagraph (A) is no longer required for the reasons set forth in such subparagraph, the official exercising the authority in such subparagraph shall provide to the consumer who is the subject of the consumer report with regard to which such finding was made—
a copy of such consumer report with any classified information redacted as necessary;
notice of any adverse action which is based, in part, on the consumer report; and
the identification with reasonable specificity of the nature of the investigation for which the consumer report was sought.
Delegation by head of agency or department
For purposes of subparagraphs (A) and (B), the head of any agency or department of the United States Government may delegate his or her authorities under this paragraph to an official of such agency or department who has personnel security responsibilities and is a member of the Senior Executive Service or equivalent civilian or military rank.
Definitions
For purposes of this paragraph, the following definitions shall apply:
Classified information
The term “classified information” means information that is protected from unauthorized disclosure under Executive Order No. 12958 or successor orders.
National security investigation
The term “national security investigation” means any official inquiry by an agency or department of the United States Government to determine the eligibility of a consumer to receive access or continued access to classified information or to determine whether classified information has been lost or compromised.
Furnishing reports in connection with credit or insurance transactions that are not initiated by consumer
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—
the consumer authorizes the agency to provide such report to such person; or
(i) the transaction consists of a firm offer of credit or insurance;
the consumer reporting agency has complied with subsection (e);
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; and
the consumer report does not contain a date of birth that shows that the consumer has not attained the age of 21, or, if the date of birth on the consumer report shows that the consumer has not attained the age of 21, such consumer consents to the consumer reporting agency to such furnishing.
Limits on information received under paragraph (1)(B)
A person may receive pursuant to paragraph (1)(B) only—
the name and address of a consumer;
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
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.
Information regarding inquiries
Except as provided in section 1681g(a)(5) of this title, 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.
Treatment of prescreening report requests
Definitions
In this paragraph:
Credit union
The term “credit union” means a Federal credit union or a State credit union, as those terms are defined, respectively, in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
Insured depository institution
The term “insured depository institution” has the meaning given the term in section 3 2 of the Federal Deposit Insurance Act (12 U.S.C. 1813(c) 2 ).
Residential mortgage loan
The term “residential mortgage loan” has the meaning given the term in section 5102 of title 12.
Servicer
The term “servicer” has the meaning given the term in section 2605(i) of title 12.
Limitation
If a person requests a consumer report from a consumer reporting agency in connection with a credit transaction involving a residential mortgage loan, that agency may not, based in whole or in part on that request, furnish a consumer report to another person under this subsection unless—
the transaction consists of a firm offer of credit or insurance; and
that other person—
has submitted documentation to that agency certifying that such other person has, pursuant to paragraph (1)(A), the authorization of the consumer to whom the consumer report relates; or
(aa) has originated a current residential mortgage loan of the consumer to whom the consumer report relates;
is the servicer of a current residential mortgage loan of the consumer to whom the consumer report relates; or
(AA) is an insured depository institution or credit union; and
holds a current account for the consumer to whom the consumer report relates.
Reserved
Election of consumer to be excluded from lists
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.
Manner of notification
A consumer shall notify a consumer reporting agency under paragraph (1)—
through the notification system maintained by the agency under paragraph (5); or
by submitting to the agency a signed notice of election form issued by the agency for purposes of this subparagraph.
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—
inform the consumer that the election is effective only for the 5-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
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.
Effectiveness of election
An election of a consumer under paragraph (1)—
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);
shall be effective with respect to a consumer reporting agency—
subject to subparagraph (C), during the 5-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
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);
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
shall be effective with respect to each affiliate of the agency.
Notification system
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—
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
publish by not later than 365 days after September 30, 1996, and not less than annually thereafter, in a publication of general circulation in the area served by the agency—
a notification that information in consumer files maintained by the agency may be used in connection with such transactions; and
the address and toll-free telephone number for consumers to use to notify the agency of the consumer’s election under clause (i).
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.
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.
Certain use or obtaining of information prohibited
A person shall not use or obtain a consumer report for any purpose unless—
the consumer report is obtained for a purpose for which the consumer report is authorized to be furnished under this section; and
the purpose is certified in accordance with section 1681e of this title by a prospective user of the report through a general or specific certification.
Protection of medical information
Limitation on consumer reporting agencies
A consumer reporting agency shall not furnish for employment purposes, or in connection with a credit or insurance transaction, a consumer report that contains medical information (other than medical contact information treated in the manner required under section 1681c(a)(6) of this title) about a consumer, unless—
if furnished in connection with an insurance transaction, the consumer affirmatively consents to the furnishing of the report;
if furnished for employment purposes or in connection with a credit transaction—
the information to be furnished is relevant to process or effect the employment or credit transaction; and
the consumer provides specific written consent for the furnishing of the report that describes in clear and conspicuous language the use for which the information will be furnished; or
the information to be furnished pertains solely to transactions, accounts, or balances relating to debts arising from the receipt of medical services, products, or devises, where such information, other than account status or amounts, is restricted or reported using codes that do not identify, or do not provide information sufficient to infer, the specific provider or the nature of such services, products, or devices, as provided in section 1681c(a)(6) of this title.
Limitation on creditors
Except as permitted pursuant to paragraph (3)(C) or regulations prescribed under paragraph (5)(A), a creditor shall not obtain or use medical information (other than medical information treated in the manner required under section 1681c(a)(6) of this title) pertaining to a consumer in connection with any determination of the consumer’s eligibility, or continued eligibility, for credit.
Actions authorized by Federal law, insurance activities and regulatory determinations
Section 1681a(d)(3) of this title shall not be construed so as to treat information or any communication of information as a consumer report if the information or communication is disclosed—
in connection with the business of insurance or annuities, including the activities described in section 18B of the model Privacy of Consumer Financial and Health Information Regulation issued by the National Association of Insurance Commissioners (as in effect on January 1, 2003);
for any purpose permitted without authorization under the Standards for Individually Identifiable Health Information promulgated by the Department of Health and Human Services pursuant to the Health Insurance Portability and Accountability Act of 1996, or referred to under section 1179 of such Act,1 or described in section 6802(e) of this title; or
as otherwise determined to be necessary and appropriate, by regulation or order, by the Bureau or the applicable State insurance authority (with respect to any person engaged in providing insurance or annuities).
Limitation on redisclosure of medical information
Any person that receives medical information pursuant to paragraph (1) or (3) shall not disclose such information to any other person, except as necessary to carry out the purpose for which the information was initially disclosed, or as otherwise permitted by statute, regulation, or order.
Regulations and effective date for paragraph (2)
3 Regulations required
The Bureau may, after notice and opportunity for comment, prescribe regulations that permit transactions under paragraph (2) that are determined to be necessary and appropriate to protect legitimate operational, transactional, risk, consumer, and other needs (and which shall include permitting actions necessary for administrative verification purposes), consistent with the intent of paragraph (2) to restrict the use of medical information for inappropriate purposes.
Coordination with other laws
No provision of this subsection shall be construed as altering, affecting, or superseding the applicability of any other provision of Federal law relating to medical confidentiality.
Notes in the official text
- (1) See References in Text note below.
- (2) So in original. Section 1813(c) of title 12 is section 3(c) of the Federal Deposit Insurance Act.
- (2) So in original. Section 1813(c) of title 12 is section 3(c) of the Federal Deposit Insurance Act.
- (3) So in original. No subpar. (B) has been enacted.
Source: United States Code, title 15, published by the Office of the Law Revision Counsel of the U.S. House of Representatives (uscode.house.gov), release point 119-136. The editorial and statutory notes are not reproduced.
Source credit: ( Pub. L. 90-321, title VI, § 604 , as added Pub. L. 91-508, title VI, § 601 , Oct. 26, 1970 , 84 Stat. 1129 ; amended Pub. L. 101-73, title IX, § 964(c) , Aug. 9, 1989 , 103 Stat. 506 ; Pub. L. 104-193, title III, § 352 , Aug. 22, 1996 , 110 Stat. 2240 ; Pub. L. 104-208, div. A, title II , §§ 2403, 2404(a), (b), 2405, Sept. 30, 1996 , 110 Stat. 3009–430 , 3009–431, 3009–433, 3009–434; Pub. L. 105-107, title III, § 311(a) , Nov. 20, 1997 , 111 Stat. 2255 ; Pub. L. 105-347 , §§ 2, 3, 6(4), Nov. 2, 1998 , 112 Stat. 3208 , 3210, 3211; Pub. L. 107-306, title VIII, § 811(b)(8)(A) , Nov. 27, 2002 , 116 Stat. 2426 ; Pub. L. 108-159, title II, § 213(c) , title IV, §§ 411(a), 412(f), title VIII, § 811(b), Dec. 4, 2003 , 117 Stat. 1979 , 1999, 2003, 2011; Pub. L. 108-177, title III, § 361(j) , Dec. 13, 2003 , 117 Stat. 2625 ; Pub. L. 109-351, title VII, § 719 , Oct. 13, 2006 , 120 Stat. 1998 ; Pub. L. 110-161, div. D, title VII, § 743 , Dec. 26, 2007 , 121 Stat. 2033 ; Pub. L. 111-24, title III, § 302 , May 22, 2009 , 123 Stat. 1748 ; Pub. L. 111-203, title X, § 1088(a)(2)(A) , (4), July 21, 2010 , 124 Stat. 2087 ; Pub. L. 114-94, div. G, title LXXX, § 80001 , Dec. 4, 2015 , 129 Stat. 1792 ; Pub. L. 116-283, div. F, title LXIII, § 6308(b) , Jan. 1, 2021 , 134 Stat. 4594 ; Pub. L. 119-36, § 2(a) , Sept. 5, 2025 , 139 Stat. 493 .)
15 U.S.C. 1681b on the Office of the Law Revision Counsel
United States Code, current through Public Law 119-136 (October 22, 2026). Retrieved 30 October 2026.
This is reference material, not legal advice.