(a) Scope. This section applies to any consumer reporting agency
as defined in section 603(f) of the FCRA, 15 U.S.C. 1681a(f).
(b) Definitions. For purposes
of this section:
(1) Appropriate proof of identity means proof of identity that meets the requirements in section 1022.123,
for purposes of section 605C of the FCRA.
(2) Consumer report has the meaning
provided in section 603(d) of the FCRA, 15 U.S.C. 1681a(d).
(3) Consumer reporting
agency has the meaning provided in section 603(f) of the FCRA,
15 U.S.C. 1681a(f).
(4) Severe forms of trafficking in persons has the meaning
provided in section 103 of the Trafficking Victims Protection Act
of 2000, 22 U.S.C. 7102(11).
(5) Sex trafficking has the meaning
provided in section 103 of the Trafficking Victims Protection Act
of 2000, as amended by section 108 of the Justice for Victims of Trafficking
Act of 2015, 22 U.S.C. 7102(12).
(6) Trafficking documentation means
one or more documents that satisfy paragraphs (b)(6)(i) and (ii) of
this section:
(i) Victim
determination. Documentation that:
(A) Is of a determination
that a consumer is a victim of trafficking made by a:
(1) Federal, State, or Tribal governmental
entity; or
(2)
Non-governmental organization or members of a human trafficking task
force, including victim service providers affiliated with the organization
or task force, authorized by a Federal, State, or Tribal governmental
entity to make such a determination;
(B) Is of a determination that a consumer
is a victim of trafficking made by a court of competent jurisdiction
or determination consisting of documents filed in a court of competent
jurisdiction where a central issue in the case is whether the consumer
is a victim of trafficking and the court has, at a minimum, affirmed
the consumer’s claim either by accepting certain pieces of evidence
which are assumed to be true or finding that the there is no genuine
dispute as to any material fact supporting a judgment in favor of
the victim as a matter of law; or
(C) Is of a signed statement by the consumer
attesting that the consumer is a victim of trafficking if such statement
or an accompanying document is signed or certified by a representative
of an entity described in paragraph (b)(6)(i)(A) or (B) of this section.
(ii) Identified adverse items of information. Documentation, which may consist of a statement prepared by the
consumer or by any designated representative on behalf of a consumer
(except for a credit repair organization as defined in section 403(3)
of the Credit Repair Organizations Act, 15 U.S.C. 1679a(3), or an
entity that would be a credit repair organization, but for section
403(3)(B)(i) of the Credit Repair Organizations Act, 15 U.S.C. 1679a(3)(B)(i)),
that:
(A) Identifies any items of adverse information
that should not be furnished by a consumer reporting agency because
the items resulted from a severe form of trafficking in persons or
sex trafficking of which the consumer is a victim; and
(B) Must contain a preferred
method for a consumer reporting agency to contact the consumer electronically
or in writing such as an email address or physical address where mail
can be received. A consumer reporting agency shall use only the consumer’s
preferred method of contact for communications under paragraphs (d),
(e), and (f) of this section about the consumer’s submission
and shall not use the consumer’s preferred contact information
for any other purpose.
(7) Victim of trafficking means a person who
is a victim of a severe form of trafficking in persons or sex trafficking.
(c) Prohibition
on inclusion of adverse information of trafficking victims. A
consumer reporting agency may not furnish a consumer report containing
any adverse item of information about a consumer that resulted from
a severe form of trafficking in persons or sex trafficking if the
consumer has provided trafficking documentation as defined under paragraph
(b)(6) of this section to the consumer reporting agency.
(d) Method of submission to
consumer reporting agencies.
(1) Mailing and
website address. A consumer reporting agency must provide two
mailing addresses for a consumer or consumer representative, as described
in paragraph (b)(6)(ii) of this section, to send a submission consisting
of an appropriate proof of identification under paragraph (b)(1) of
this section and trafficking documentation under paragraph (b)(6)
of this section. A consumer reporting agency may also establish a
secure online website portal for a consumer to upload a submission.
A consumer reporting agency must accept a submission sent to the mailing
and, if applicable, website address used for disputes under section
611 of the FCRA, and must accept a submission sent to a mailing and,
if applicable, website address dedicated to blocking adverse items
of information resulting from a severe form of trafficking in persons
or sex trafficking under this section.
(2) Disclosing
methods for submission. A consumer reporting agency must add
information on its publicly available website stating how submissions
for the blocking of adverse items of information resulting from a
severe form of trafficking in persons or sex trafficking should be
provided to a consumer reporting agency.
(3) Toll-free
telephone number. A consumer reporting agency that compiles and
maintains files on consumers on a nationwide basis, as defined in
section 603(p) of the FCRA, 15 U.S.C. 1681a(p), must:
(i) Allocate
a reasonable amount of personnel to respond to consumer inquiries
about the process for and status of a consumer’s submission
at the toll-free telephone number used for disputes under section
611 of the FCRA; and
(ii) Establish a toll-free telephone number dedicated to addressing
submissions from consumers seeking to block adverse items of information
resulting from a severe form of trafficking in persons or sex trafficking
under this section.
(e) Block of adverse information resulting from
trafficking.
(1) Block upon
receipt of the submission. Except as otherwise provided in this
section, within four business days of receipt of the consumer’s
submission under paragraph (d)(1) of this section, a consumer reporting
agency must block the reporting of any adverse item of information
identified by the consumer (or their representative) as resulting
from a severe form of trafficking in persons or sex trafficking.
(2) Requirement to notify the consumer and attempt
to resolve deficiencies.
(i) In general. Within five business days of receipt of the consumer’s
submission under paragraph (d) of this section, a consumer reporting
agency must notify a consumer if additional information is necessary
for the purpose of completing the submission and attempt to resolve
any deficiency in the consumer’s submission. A consumer reporting
agency may only request additional information where the consumer
reporting agency cannot reasonably confirm the appropriate proof of
identity under paragraph (b)(1) of this section for the consumer or,
if applicable, the consumer’s representative, the consumer did
not provide victim determination documentation under paragraph (b)(6)(i)
of this section, or the consumer reporting agency cannot properly
identify the adverse items of information under paragraph (b)(6)(ii)
of this section. A consumer reporting agency may not, however, ask
for information on the validity of the facts or circumstances detailed
in the contents of the submitted trafficking documentation establishing
the consumer is a victim of trafficking or whether the identified
adverse information resulted from a severe form of trafficking in
persons or sex trafficking under paragraph (b)(6) of this section.
(ii) Timing of final determination. A consumer
reporting agency must make a final determination on the consumer’s
submission no later than 25 business days after receiving the submission
provided in paragraph (d)(1) of this section.
(3) Final determination of the block. Upon confirming completion
of the submission from the consumer under paragraph (d)(1) of this
section and in accordance with the requirements under paragraph (e)(2)
of this section, the consumer reporting agency must initiate or maintain
the action described in paragraph (e)(1) of this section by blocking
the reporting of the items of adverse information on the consumer.
(4) Authority to decline or rescind a block. A consumer reporting agency may decline to block, or may rescind
any block of, adverse items of information resulting from a severe
form of trafficking in persons or sex trafficking, in accordance with
the timing requirements under paragraph (e)(2)(ii) of this section,
only where the consumer reporting agency cannot reasonably confirm
the appropriate proof of identity under paragraph (b)(1) of this section
for the consumer, and, if applicable, the consumer’s representative,
the consumer cannot provide documentation consisting of a victim determination
under paragraph (b)(6)(i) of this section, or the consumer reporting
agency cannot properly identify the adverse items of information under
paragraph (b)(6)(ii) of this section. A consumer reporting agency
may not, however, decline to block or rescind any block of adverse
information identified by the consumer or if applicable, the consumer’s
representative, based on the validity of the facts or circumstances
detailed in the contents of the submitted trafficking documentation
as defined in paragraph (b)(6) of this section. A consumer reporting
agency may decline or rescind a block only after notifying the consumer
using the method of contact specified by the consumer in paragraph
(b)(6)(ii)(B) of this section and attempting to resolve any deficiency
in the consumer’s submission as required in paragraph (e)(2)
of this section.
(f) Notification to consumer of actions taken in
response to the consumer’s submission.
(1) In general. A consumer reporting agency must provide written or electronic notice
to a consumer of actions performed in response to a consumer’s
submission no later than five business days after a final determination
on a consumer’s submission under paragraph (e)(3) of this section
(or, if rescinding a previously applied block, five business days
after rescinding under paragraph (e)(4) of this section). The consumer
reporting agency must use the method of contact specified by the consumer
in paragraph (b)(6)(ii)(B) of this section.
(2) Contents. The notice must include the following:
(i) A statement that
the review of the submission is completed;
(ii) A statement of the outcome of the
submission, including the reason(s) if the consumer reporting agency
declined to block the adverse information identified by the consumer,
or rescinded such a block, under paragraph (e)(4) of this section;
(iii) A consumer report,
provided at no cost to the consumer, that is based upon the consumer’s
revised file (if applicable) as a result of the consumer’s submission;
(iv) A description
of the procedure used to determine the outcome;
(v) A method for contacting the consumer
reporting agency to appeal the determination or revise the submission
to cure any of the noted reasons for declining to block the adverse
information identified by the consumer; and
(vi) The web page consumers can use
to submit complaints to the Consumer Financial Protection Bureau.
(g) Record retention. For a period of seven years after the consumer’s
submission is received at the mailing or website address made
available under paragraph (d)(1) of this section, a consumer reporting
agency must retain evidence of all such submissions and compliance
with this section, including the actions taken by the consumer reporting
agency under paragraphs (e)(1) through (e)(3), and (f) of this section
and the reasons provided under paragraph (e)(4) of this section for
declining to block or rescinding any block of items of adverse information
identified by the consumer.
(h) Policies and procedures to ensure and maintain
compliance. A consumer reporting agency must establish and maintain
written policies and procedures reasonably designed to ensure and
monitor the compliance of the consumer reporting agency and its employees
with the requirements of the paragraphs in this section. These written
policies and procedures must be appropriate to the nature, size, complexity,
and scope of the activities of the consumer reporting agency and its
employees.
