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90_SB0472
New Act
815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z
Creates the Credit Reporting Fairness Act. Establishes
permissible uses of credit reports and content of credit
reports. Establishes compliance procedures for credit
reporting agencies. Provides for disclosure of credit
information to the person who is the subject of the
information. Establishes procedures to dispute the accuracy
of the reports. Sets forth requirements for providers of
information to credit reporting agencies. Makes a violation
of the Act an unlawful business practice under the Consumer
Fraud and Deceptive Business Practices Act.
LRB9002546WHcc
LRB9002546WHcc
1 AN ACT concerning fair credit reporting.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Credit Reporting Fairness Act.
6 Section 5. Definitions. For purposes of this Act:
7 (a) The term "person" includes any individual,
8 partnership, corporation, limited liability company, trust,
9 estate, cooperative, association, government, governmental
10 subdivision or agency, or any other entity.
11 (b) The term "consumer" means any individual.
12 (c) The term "credit report" includes any written, oral,
13 or other communication of any information by a credit
14 reporting agency bearing on a consumer's credit worthiness,
15 credit standing, credit capacity, character, general
16 reputation, personal characteristics, or mode of living which
17 is used or expected to be used or collected in whole or in
18 part for the purpose of serving as a factor in establishing
19 the consumer's eligibility for credit or insurance to be used
20 primarily for personal, family, or household purposes, or
21 employment purposes, or other purposes authorized under
22 Section 10. However, the term "credit report" does not
23 include: any report containing information solely as to
24 transactions or experiences between the consumer and the
25 person making the report; any authorization or approval of a
26 specific extension of credit directly or indirectly by the
27 issuer of a credit card or similar device; or any report in
28 which a person who has been requested by a third party to
29 make a specific extension of credit directly or indirectly to
30 a consumer conveys his or her decision with respect to the
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1 request, if the third party advises the consumer of the name
2 and address of the person to whom the request was made and
3 the person makes the disclosures to the consumer required
4 under Section 55.
5 (d) The term "investigative consumer report" means a
6 credit report or portion thereof in which information on a
7 consumer's character, general reputation, personal
8 characteristics, or mode of living is obtained through
9 personal interviews with neighbors, friends, or associates of
10 the consumer reported on or with others with whom he or she
11 is acquainted or who may have knowledge concerning any such
12 items of information. However, such information shall not
13 include: specific factual information on a consumer's credit
14 record obtained directly from a creditor of the consumer; or
15 from a credit reporting agency when such information was
16 obtained directly from a creditor of the consumer or from the
17 consumer.
18 (e) The terms "credit reporting agency" and "agency"
19 mean any person which, for monetary fees, dues, or on a
20 cooperative nonprofit basis, regularly engages in whole or in
21 part in the practice of assembling or evaluating consumer
22 credit information or other information on consumers for the
23 purpose of furnishing credit reports to third parties.
24 (f) The term "file", when used in connection with
25 information on any consumer, means all of the information
26 (including medical information, credit scores, and
27 explanations thereof) on that consumer which is made
28 available by a credit reporting agency to users, as that term
29 is defined herein.
30 (g) The term "employment purposes", when used in
31 connection with a credit report, means the purpose of
32 evaluating a consumer for employment, promotion, reassignment
33 or retention as an employee.
34 (h) The term "medical information" means information or
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1 records obtained from licensed physicians or medical
2 practitioners, hospitals, clinics, or other medical or
3 medically related facilities.
4 (i) The term "user" means any person receiving or
5 requesting a credit report or an investigative consumer
6 report, other than the subject thereof.
7 (j) The term "provider" means any person who furnishes
8 any information about any consumer to any credit reporting
9 agency.
10 (k) The term "adverse action":
11 (1) includes the meaning given to such term in the
12 Federal Equal Credit Opportunity Act (15 U.S.C. 1691 (d)
13 (6) et seq.) and any amendments thereto; and
14 (2) includes:
15 (A) any denial of insurance for personal,
16 family or household purposes;
17 (B) the denial of employment or any other
18 decision for employment purposes which adversely
19 affects any current or prospective employee;
20 (C) any increase in any charge for, or any
21 reduction in the amount of, insurance for personal,
22 family, or household purposes; and
23 (D) any action or determination which:
24 (i) is taken or made in connection with
25 an application which was made by, or any
26 transaction which was initiated by, any
27 consumer; and
28 (ii) is adverse to the interest of the
29 consumer; and
30 (3) does not include a refusal to extend additional
31 credit under an existing credit arrangement if:
32 (A) the applicant is delinquent or otherwise
33 in default (with respect to such arrangement); or
34 (B) such additional credit would exceed a
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1 previously established credit limit.
2 (l) The term "credit score" means a numerical figure or
3 other representation that is based in whole or in part on
4 items of information contained in a consumer's file, which
5 represents a consumer's credit worthiness or credit standing.
6 Section 10. Permissible Uses of Credit Reports.
7 (a) In General. A credit reporting agency may furnish a
8 credit report or any information contained in a consumer's
9 file under the following circumstances and no other:
10 (1) In response to the order of a court having
11 jurisdiction to issue such an order.
12 (2) In compliance with a lawful subpoena issued by
13 a governmental body of competent jurisdiction.
14 (3) In compliance with a child support order
15 entered by a court or administrative body of this or any
16 other state.
17 (4) In accordance with the written instructions of
18 the consumer to whom it relates.
19 (5) To a person which it reasonably believes:
20 (A) intends to use the information in
21 connection with a credit transaction involving the
22 consumer on whom the information is to be furnished
23 and involving the extension of credit to, or review
24 or collection of an account of, the consumer; or
25 (B) intends to use the information for
26 employment purposes, as provided for in subsection
27 (b) of this Section; or
28 (C) intends to use the information in
29 connection with the underwriting of insurance
30 involving the consumer; or
31 (D) intends to use the information in
32 connection with a determination of the consumer's
33 eligibility for a license or other benefit granted
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1 by a governmental instrumentality required by law to
2 consider an applicant's financial responsibility or
3 status; or
4 (E) otherwise has a legitimate business need
5 for the information in connection with a business
6 transaction initiated by the consumer.
7 (b) Permissible Employment Purposes.
8 (1) Subject to paragraph (2), a credit
9 reporting agency may furnish a credit report, and a
10 person may use a credit report, for employment
11 purposes only under the following circumstances:
12 (A) The employment requires or is expected to
13 require a security clearance issued by an agency of
14 the United States as a condition for employment.
15 (B) The employment requires or is expected to
16 require an employee to be covered by a fidelity
17 bond.
18 (C) The employment requires or is expected to
19 require an employee, on a regular basis and as part
20 of the normal duties of employment:
21 (i) to handle or otherwise have access to
22 substantial amounts of cash or other things of
23 substantial value to the employer, or
24 (ii) to engage in any conduct or activity
25 with respect to which the employee has a
26 fiduciary duty.
27 (2) A credit reporting agency may furnish a credit
28 report for employment purposes only if the person who
29 obtains such report directly or indirectly from the
30 agency certifies to the agency that:
31 (A) the disclosure required under paragraph
32 (3) or (4), as the case may be, with respect to the
33 credit report has been made; and
34 (B) information from the credit report will
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1 not be used in violation of any applicable Federal
2 or State equal employment opportunity law or
3 regulation.
4 (3) A person may not procure a credit report, or
5 cause a credit report to be procured, for employment
6 purposes with respect to any consumer who is not an
7 employee at the time the report is procured or caused to
8 be procured unless:
9 (A) a clear and prominent disclosure has been
10 made in writing to the consumer before the report is
11 procured or caused to be procured that a credit
12 report may be obtained for purposes of considering
13 the consumer for employment; and
14 (B) the consumer authorizes in writing the
15 procurement of the report.
16 (4) (A) A person may not procure a credit report,
17 or cause a credit report to be procured, for employment
18 purposes with respect to any employee unless the employee
19 has received, at any time after such person became an
20 employee, written notice that credit report may be used
21 for employment purposes.
22 (B) A written statement that credit reports may be
23 used for employment purposes which is contained in
24 employee guidelines or manuals available to employees or
25 included in written materials provided to employees shall
26 constitute written notice for purposes of subparagraph
27 (A).
28 (c) Limitations On Reports Relating To Credit
29 Transactions Not Initiated By The Consumer.
30 (1) A credit reporting agency may furnish only a
31 consumer's name and address and a determination of the
32 consumer's creditworthiness in connection with a credit
33 transaction not initiated by the consumer only if:
34 (A) the consumer authorizes the agency
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1 directly to provide such information to such person;
2 or
3 (B) the consumer:
4 (i) has received notice that information
5 from the consumer's file may be used in
6 connection with a transaction which:
7 (I) is not initiated by the
8 consumer; and
9 (II) involves a firm offer of credit
10 to the consumer by any person; and
11 (ii) has had an opportunity to notify
12 directly or indirectly, the credit reporting
13 agency that the consumer does not consent to
14 the use of information from the consumer's file
15 in connection with any credit transaction which
16 is not initiated by the consumer; and
17 (iii) has not notified the agency,
18 directly or indirectly, of such lack of
19 consent.
20 (2) If a consumer notifies a credit reporting
21 agency of his lack of consent to having his or her name
22 and address furnished pursuant to this subsection, the
23 credit reporting agency, within 10 days of the notice,
24 shall discontinue furnishing the consumer's name and
25 address in connection with a credit transaction not
26 initiated by the consumer.
27 (3) (A) Each credit reporting agency which
28 furnishes consumer information in connection with any
29 credit transaction which is not initiated by the consumer
30 shall:
31 (i) maintain a notification system which
32 permits any consumer whose credit report is
33 maintained by the agency to notify the agency,
34 with appropriate identification, of the
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1 consumer's election to have such consumer's
2 name and address removed from any list of names
3 and addresses provided by the agency pursuant
4 this subsection; and
5 (ii) to publish in a readily noticeable
6 manner at least annually in a publication of
7 general circulation in the area served by such
8 agency the address and toll-free telephone
9 number for consumers to use to notify the
10 agency of the consumer's election under this
11 subsection.
12 (B) Any reporting agency which compiles and
13 maintains consumer reports on a statewide basis
14 shall establish the notification system under this
15 paragraph (3) on a statewide basis.
16 (C) Any credit reporting agency referred to in
17 this paragraph (3) may operate a notification system
18 under this subsection jointly with any other credit
19 reporting agency described in this paragraph (3).
20 (4) Compliance with the requirements of this
21 subsection by any credit reporting agency shall
22 constitute compliance with such requirements by any
23 affiliate of such agency.
24 (d) Dissemination of Investigative Consumer Reports.
25 Notwithstanding the provisions of this Section, a credit
26 reporting agency may furnish an investigative consumer report
27 to the consumer as provided in Section 20.
28 Section 15. Content of Credit Reports.
29 (a) Prohibited Information.
30 (1) No credit reporting agency shall report or
31 maintain in the file on a consumer, information:
32 (A) relative to an arrest, indictment or
33 criminal charge unless there has been a criminal
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1 conviction for the offense; or
2 (B) relative to a criminal conviction if the
3 conviction has been overturned on appeal, or if the
4 person convicted has been granted a full pardon; or
5 (C) relative to a bankruptcy proceeding unless
6 the Chapter under which it was filed is noted; or
7 (D) which it has reason to know is inaccurate.
8 (2) No credit reporting agency shall report or
9 maintain in the file on a consumer, any of the following
10 items of information:
11 (A) Bankruptcies (except Chapter 13 cases)
12 which antedate the report by 10 years.
13 (B) Chapter 13 bankruptcies which antedate the
14 report by 7 years.
15 (C) Unsatisfied judgments against the consumer
16 which from the dates of entry antedate the report by
17 more than 7 years or until the governing statute of
18 limitation has expired, whichever is the longer
19 period.
20 (D) Satisfied judgments against the consumer
21 which from the dates of entry antedate the report by
22 more than 5 years.
23 (E) Paid tax liens which, from date of
24 payment, antedate the report by more than 7 years.
25 (F) Accounts which are not more than 30 days
26 overdue.
27 (G) Accounts which are more than 30 but not
28 more than 60 days overdue which antedate the report
29 by 4 years.
30 (H) Accounts which are more than 60 but not
31 more than 90 days overdue which antedate the report
32 by 5 years.
33 (I) Accounts which are more than 90 days
34 overdue or charged to profit and loss which antedate
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1 the report by 7 years.
2 (J) Records of conviction of crime which, from
3 date of disposition, release, or parole, antedate
4 the report by more than 7 years.
5 (K) Unlawful detainer actions or any civil
6 action where the consumer was adjudged the
7 prevailing party.
8 (L) Any civil action involving the consumer
9 which was dismissed or where no disposition has been
10 reached, which from the date of entry antedates the
11 report by more than 3 years.
12 (M) Results, opinions, analyses, transcripts
13 or information of any nature concerning, related to,
14 or derived from a polygraph examination, an
15 examination by any device or instrument of any type
16 used to test or question individuals for the purpose
17 of detecting deception, verifying truthfulness, or
18 measuring deceptive tendencies, or the questioning
19 or interviewing of an individual by the examiner
20 prior to or after such an examination.
21 (N) Medical information, unless the consumer
22 shall have granted prior written consent.
23 (O) Other adverse information which antedates
24 the report by 7 years.
25 (b) Running of Reporting Periods.
26 (1) The reporting periods referred to in
27 subparagraphs (A) and (B) of paragraph (a)(2) shall
28 commence from the date of entry of the order for relief
29 under the Bankruptcy Code.
30 (2) The reporting periods referred to in
31 subparagraphs (F), (G), (H), and (I) of paragraph (a)(2)
32 shall commence not later than the end of the 180 day
33 period beginning on the date the account becomes past
34 due.
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1 (3) The reporting period referred to in
2 subparagraph (J) of paragraph (a)(2) for parole shall
3 commence from the beginning of parole.
4 Section 20. Investigative Consumer Reports.
5 (a) Disclosure and Authorization. A person may not
6 procure or cause to be prepared an investigative consumer
7 report on any consumer unless:
8 (1) it is clearly and accurately disclosed to the
9 consumer that an investigative consumer report including
10 information as to his or her character, general
11 reputation, personal characteristics and mode of living,
12 whichever are applicable, may be made, and the disclosure
13 is made in writing, and mailed or otherwise delivered, to
14 the consumer, not later than 3 days after the date on
15 which the report was first requested, and includes a
16 written notice provided under subsection (b) of this
17 Section; and the written summary of the rights and
18 remedies of the consumer prepared pursuant to Section 35;
19 and
20 (2) the person has first received from the consumer
21 a written authorization for preparation or procurement of
22 such investigative consumer report.
23 (b) Notice Requirements. The notice required by this
24 Section shall be in writing and shall inform the consumer:
25 (1) that an investigative consumer report has been
26 requested on the consumer; and
27 (2) of the names and addresses of the persons or
28 persons who requested the investigative consumer report;
29 and
30 (3) of the name and address of the person to whom
31 the request was made; and
32 (4) that a copy of the investigative consumer
33 report and the sources of all of the information
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1 contained therein, is available to the consumer upon his
2 or her request.
3 (c) Refusal to Authorize As Grounds For Denial. A
4 consumer's refusal or failure to authorize the procurement or
5 preparation of an investigative consumer report is grounds
6 for denial of credit, insurance, employment, or any other
7 business transaction as provided for by this Act.
8 (d) Notice To Parent Of Minor Child. Where a parent
9 applies for insurance on behalf of or to cover his or her
10 child, or an adult applies for insurance on behalf of or to
11 cover a minor, the execution of an authorization and receipt
12 of notice pursuant to this Section by the parent or adult
13 shall also be deemed to be receipt of notice and execution of
14 an authorization by the child or minor.
15 (e) Consumer Request for Copy. Within 20 days of a
16 consumer's request, the person who prepared the report shall
17 provide to the consumer a copy of the investigative consumer
18 report, and the sources of all of the information contained
19 therein and the names and business addresses of all persons
20 to whom the investigative consumer report was sent.
21 (f) Restrictions On Investigative Consumer Reports.
22 (1) Whenever a credit reporting agency prepares an
23 investigative consumer report, no adverse information in
24 the report may be included in a subsequent credit report
25 unless the adverse information has been verified in the
26 process of making the subsequent credit report, unless
27 the adverse information was received within the 3 month
28 period preceding the date upon which the subsequent
29 report is furnished.
30 (2) Each investigative consumer report shall be in
31 writing, and a copy thereof shall be retained by the
32 credit reporting agency for at least one year after it is
33 issued.
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1 Section 25. Compliance procedures.
2 (a) In General. Every credit reporting agency shall
3 maintain reasonable procedures designed to avoid violations
4 of Section 15 and to limit the furnishing of credit reports
5 to the purposes listed under Section 10. These procedures
6 shall require that prospective users of the information
7 identify themselves, certify the purposes for which the
8 information is sought, and certify that the information will
9 be used for no other purpose. Every credit reporting agency
10 shall make a reasonable effort to verify the identity of a
11 new prospective user and the uses certified by such
12 prospective user prior to furnishing such user a credit
13 report. No credit reporting agency may furnish a credit
14 report to any person if it has reasonable grounds for
15 believing that the credit report will not be used for a
16 purpose listed in Section 10.
17 (b) Accuracy of Reports. Whenever a credit reporting
18 agency prepares a credit report it shall follow reasonable
19 procedures to assure maximum possible accuracy of the
20 information concerning the individual about whom the report
21 relates. The agency shall have the burden of proving that it
22 maintained reasonable procedures to assure maximum possible
23 accuracy of the information concerning the consumer about
24 whom the credit report relates. A credit reporting agency may
25 not furnish a credit report unless the person requesting the
26 report provides the consumer's full last name and first name,
27 middle initial, full street address, zip code, year of birth,
28 any generational designation, and social security number. The
29 consumer's social security number is not required if the
30 consumer has failed to disclose it.
31 (c) Disclosure By Users Allowed. No credit reporting
32 agency may prohibit any user of any credit report furnished
33 by the agency on any consumer from disclosing the contents of
34 the report to the consumer.
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1 (d) Notice To Users And Providers Of Information. A
2 credit reporting agency shall provide notice to users of
3 credit reports and providers of information in credit reports
4 of their respective responsibilities under this Act.
5 (e) Identity Of Users. Each credit reporting agency
6 shall maintain a detailed record of:
7 (1) the identity of any person to whom a credit
8 report or information from a credit report is provided,
9 including the name, business address, and telephone
10 number of any individual who receives the credit report
11 or uses any information contained in the report from the
12 person to whom the report is provided by the agency; and
13 (2) the certified purpose for which any credit
14 report on any consumer, or any other information relating
15 to any consumer, is requested by any person.
16 (f) Toll Free Number.
17 (1) Every credit reporting agency shall establish
18 and maintain one or more toll-free numbers and shall
19 freely make known and readily disclose to consumers those
20 numbers. The credit reporting agency shall employ an
21 adequate number of trained personnel to promptly assist
22 consumers who utilize the toll-free numbers.
23 (2) The agency shall allow consumers to utilize the
24 toll-free numbers:
25 (A) to contact the agency for general
26 information and in accordance with any provision of
27 this Act;
28 (B) to dispute the accuracy of any information
29 in the consumer's credit report, as described in
30 Section 45; and
31 (C) if the agency does not operate a joint
32 notification system as described in Section 10
33 (c)(3)(B), to notify such agency of the consumer's
34 lack of consent to having his or her name furnished
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1 for transactions not initiated by the consumer, as
2 described in subsection (c)(2) of Section 10. If the
3 agency does operate such a joint notification
4 system, the agency may refer consumers to the joint
5 notification system to register their lack of
6 consent if they provide the toll-free number of the
7 joint notification system.
8 Section 30. Disclosures To Governmental Agencies.
9 Notwithstanding the requirements of Section 10, a credit
10 reporting agency may furnish identifying information
11 respecting any consumer, limited to his or her name, address,
12 former addresses, places of employment, or former places of
13 employment to a governmental agency.
14 Section 35. Disclosures To Consumers.
15 (a) Content Of Disclosure. Every credit reporting
16 agency shall, upon request by and proper identification of
17 any consumer, clearly and accurately disclose to the
18 consumer:
19 (1) All information in its files (including medical
20 information and credit scores) at the time of the request
21 concerning the consumer;
22 (2) The sources of all of the information;
23 (3) The recipients of any credit report on the
24 consumer which it has furnished within the 3 year period
25 preceding the request; and
26 (4) Detailed identification of any person who had
27 access, directly or indirectly, to any information
28 pertaining to the consumer, including any recipient
29 referred to in paragraph (3) in connection with the
30 consumer, including:
31 (A) the name of the person and, if applicable,
32 any trade name, written in full, under which the
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1 person conducts any business;
2 (B) the address of the person; and
3 (C) the certified purpose for which the
4 information was obtained and used by the person.
5 (b) Decoded Report. When making a disclosure under this
6 Section, a credit reporting agency shall provided a decoded,
7 readily understandable, written version of the file, or a
8 written copy of the file with a readily understandable
9 explanation of any code used, in whichever form the consumer
10 chooses.
11 (c) Form Of Disclosure. Information in a consumer's
12 file which is required to be provided in writing under this
13 Section may also be disclosed in another form at the request
14 of the consumer.
15 (d) Credit Score. Where a credit score is provided by a
16 credit reporting agency to a user, the credit score shall be
17 maintained in the consumer's file for a period of one year
18 and shall be disclosed to the consumer pursuant to subsection
19 (a)(1), and the agency shall provide a clear, concise and
20 conspicuous explanation of the credit score and the credit
21 scoring process, including, but not limited to, any
22 explanation which is available to users.
23 (e) Disclosure of Consumer Rights.
24 (1) Any disclosure by a credit reporting agency to
25 any consumer pursuant to subsection (a) of this Section
26 shall include a written and readily understandable
27 summary of all rights and remedies the consumer has under
28 this Act and a toll-free telephone number established
29 pursuant to subsection (f)(1) of Section 25.
30 (2) Any summary of the rights and remedies of
31 consumers under this subsection shall include:
32 (A) a brief description of this Act and all
33 rights and remedies of consumers under this Act; and
34 (B) an explanation of how the consumer may
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1 best exercise the rights and remedies guaranteed
2 under this Act; and
3 (C) a list containing all federal and State
4 agencies responsible for enforcing any provision of
5 this Act and the federal Fair Credit Reporting Act
6 (15 U.S.C. 1681 et seq.) and any amendments thereto,
7 the address and any appropriate phone number of each
8 such agency, and a brief description of the
9 responsibilities of each such agency in a form that
10 will assist the consumer in selecting the
11 appropriate agency under any given circumstance.
12 Section 40. Conditions Of Disclosures To Consumers.
13 (a) Times and notice. A credit reporting agency shall
14 make the disclosures required under Section 35 during normal
15 business hours on reasonable notice.
16 (b) Methods Of Disclosure. The disclosure required
17 under Section 35 shall be made to the consumer by one or more
18 of the following methods:
19 (1) in person if he or she appears in person and
20 furnishes proper identification, in which case the
21 consumer shall be permitted a personal visual inspection
22 of his or her file and, if he or she so requests, shall
23 be furnished a copy of his or her entire file or any part
24 thereof,
25 (2) by telephone if he or she has made a written
26 request, with proper identification, for telephone
27 disclosure and the toll charge, if any, for the telephone
28 call is prepaid by or charged directly to the consumer,
29 and at the time of the disclosure by telephone the
30 consumer shall be advised of the right to receive a
31 complete written disclosure of the information pertaining
32 to him or her, or
33 (3) by mailing a copy or transcription of all
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1 information in the consumer's file to him or her if he or
2 she has made a written request with proper
3 identification.
4 (c) Trained Personnel. Every credit reporting agency
5 shall provide trained personnel to explain to the consumer
6 any information furnished to him or her either by personal
7 interview or telephone communication, and information
8 furnished by mail must be accompanied by an explanation of
9 the information if provided in code or trade terminology.
10 (d) Personal Interview. The consumer who seeks
11 disclosure by means of a personal interview pursuant to
12 paragraph (1) of subdivision (b) of this Section shall be
13 permitted to be accompanied by one other person of his or her
14 choosing, who shall furnish reasonable identification. A
15 credit reporting agency may require the consumer to furnish a
16 written statement granting permission to the credit reporting
17 agency to discuss the consumer's file in such other person's
18 presence.
19 (e) Decoded Report. In addition to the disclosure
20 provided by this Section and any disclosures received by the
21 consumer, the consumer shall be advised of the right to
22 request and receive a decoded written version of the file or
23 a written copy of the file, with an explanation of any code
24 used, without charge as subject to subsection (b) of Section
25 35.
26 Section 45. Procedure In Case Of Disputed Accuracy.
27 (a) In General. If the completeness or accuracy of any
28 item of information contained in any consumer's file at any
29 credit reporting agency is disputed by the consumer and the
30 consumer notifies the agency directly of such dispute, the
31 agency shall re-investigate and record the current status of
32 the disputed information before the end of the 30-day period
33 beginning on the date the agency receives the notice from the
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1 consumer. Every credit reporting agency shall allow a
2 consumer to directly dispute the accuracy of information
3 contained in the consumer's file through use of the agency's
4 toll-free number unless the agency mails forms for filing
5 such disputes to the consumer within 5 days of the consumer's
6 request.
7 (b) Notice To Provider. Before the end of the 5 day
8 period beginning on the date a credit reporting agency
9 receives notice of a dispute from any consumer in accordance
10 with subsection (a), the agency shall notify any person who
11 provided any item of information in dispute.
12 (c) Re-investigation Procedure.
13 (1) Notwithstanding subsection (a) of this Section,
14 a credit reporting agency may terminate a
15 re-investigation of information disputed by a consumer
16 under subsection (a) if the agency determines that the
17 dispute by the consumer is frivolous or irrelevant.
18 (2) Upon making any determination in accordance
19 with subsection (c)(1) that a dispute is frivolous or
20 irrelevant, a credit reporting agency shall promptly
21 notify the consumer in writing of such determination and
22 the specific reasons therefor.
23 (d) Consumer Submissions. In conducting any
24 re-investigation under this Section with respect to disputed
25 information in the file of any consumer, the credit reporting
26 agency shall review and properly consider all relevant
27 information submitted by the consumer with respect to such
28 disputed information.
29 (e) Deletion of Information.
30 (1) If, after any re-investigation under this
31 Section of any information disputed by a consumer, the
32 information is found to be inaccurate or cannot be
33 verified, the credit reporting agency shall promptly
34 delete the information from the consumer's file. The
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1 information to be deleted shall consist solely of the
2 information that was disputed by the consumer and shall
3 not include any portion of the same item that was not
4 disputed.
5 (2) (A) If any information is deleted from any
6 consumer's file pursuant to subsection (e)(1), the
7 information may not be reinserted in such file after such
8 deletion unless the person who furnishes such information
9 certifies, in writing, that such information is complete
10 and accurate.
11 (B) If any information which has been deleted from
12 a consumer's file pursuant to subsection (e)(1) is
13 reinserted in the file in accordance with subsection
14 (e)(2)(A), the credit reporting agency shall notify the
15 consumer of the reinsertion within 5 days.
16 (f) Notice Of Completion of Re-investigation.
17 (1) A credit reporting agency shall provide written
18 notice of the results of any re-investigation under this
19 subsection within 5 business days of the completion of
20 the re-investigation.
21 (2) The notice required under this subsection shall
22 include:
23 (A) a statement that the re-investigation is
24 completed;
25 (B) a statement of the determination of the
26 agency on the completeness or accuracy of the
27 disputed information;
28 (C) a description of the manner in which the
29 information will appear, if at all, in any
30 subsequent credit report;
31 (D) a description of the procedure used to
32 determine the accuracy and completeness of the
33 information, including the name, business address,
34 and telephone number of any person contacted in
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1 connection with the information;
2 (E) if the agency has determined that the
3 disputed information is accurate, a statement of the
4 specific reasons for the determination;
5 (F) a summary of the consumer's rights under
6 this Act; and
7 (G) a copy of the consumer's file.
8 (g) Statement of Consumer Dispute.
9 (1) If the consumer credit reporting agency
10 determines that the dispute is frivolous or irrelevant,
11 or if the re-investigation does not resolve the dispute,
12 the consumer may file a brief statement setting forth the
13 nature of the dispute. The credit reporting agency may
14 limit the statement to not more than 100 words if it
15 provides the consumer with assistance in writing a clear
16 summary of the dispute.
17 (2) Whenever a statement of dispute is filed, the
18 credit reporting agency shall, in any subsequent credit
19 report containing the information in question, clearly
20 note that the information is disputed by the consumer and
21 shall include in the report either the consumer's
22 statement or a clear and accurate summary thereof, and
23 shall notify the provider of the continuing dispute.
24 (h) Notice to Users. Following any deletion of
25 information which is found to be inaccurate or whose accuracy
26 can no longer be verified or any notation as to disputed
27 information, the credit reporting agency shall, at the
28 request of the consumer, furnish notification that the item
29 has been deleted or the statement pursuant to subsection
30 (g)(1), to any person specifically designated by the consumer
31 who has within 2 years prior thereto received a credit report
32 for employment purposes, or within 6 months prior thereto
33 received a credit report for any other purposes, which
34 contained the deleted or disputed information.
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1 (i) Every credit reporting agency shall maintain
2 reasonable procedures designed to prevent the reappearance of
3 information that has been deleted as a result of a consumer
4 dispute.
5 Section 50. Charges For Disclosures.
6 (a) Free Report.
7 (1) A credit reporting agency shall make all
8 disclosures pursuant to Section 35 without charge to the
9 consumer if, within 60 days after receipt by the consumer
10 of a notification pursuant to Section 55 or notification
11 from a debt collection agency stating that the consumer's
12 credit rating may be or has been adversely affected, the
13 consumer makes a request under Section 35 or 45.
14 (2) A credit reporting agency shall furnish all
15 credit reports pursuant to Section 45 without charge.
16 (3) Upon the request of any consumer, any credit
17 reporting agency shall make all disclosures pursuant to
18 Section 35 without charge to the consumer at least once
19 each calendar year.
20 (4) Notwithstanding any other provision of this
21 Section, no charge may be imposed by any credit reporting
22 agency for making any disclosure to any consumer which is
23 required under this Act.
24 (b) Reasonable Charge. Subject to subsection (a), a
25 credit reporting agency may impose a reasonable charge, not
26 to exceed $8 on the consumer for making disclosure to such
27 consumer pursuant to Section 35, the charge for which shall
28 be indicated to the consumer prior to making disclosure.
29 Section 55. Requirements Of Users.
30 (a) Notice of Adverse Action.
31 (1) If any person takes any adverse action with
32 respect to any consumer which is based, in whole or in
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1 part, on any information contained in a credit report,
2 the person shall:
3 (A) provide written notice of the adverse
4 action to the consumer;
5 (B) provide the consumer with the name and
6 address of the credit reporting agency which
7 furnished the report to such person and a toll-free
8 telephone number which the consumer can use to
9 communicate with the agency; and
10 (C) provide the consumer with a written
11 summary of the rights and remedies of the consumer
12 under this Act, including:
13 (i) the right of the consumer to obtain a
14 free copy of the consumer's credit report from
15 the credit reporting agency referred to in
16 Section 50 and any other credit reporting
17 agency which maintains a file on the consumer;
18 and
19 (ii) the right of the consumer to
20 challenge the accuracy or completeness of any
21 information in the consumer's credit report and
22 the procedure for filing a dispute with respect
23 to the information.
24 (2) Whenever credit for personal, family, or
25 household purposes involving a consumer is denied or the
26 charge for such credit is increased either wholly or
27 partly because of information obtained from a person
28 other than a credit reporting agency bearing upon the
29 consumer's credit worthiness, credit standing, credit
30 capacity, character, general reputation, personal
31 characteristics, or mode of living, the user of the
32 information shall, within a reasonable period of time,
33 upon the consumer's written request for the reasons for
34 the adverse action received within 60 days after learning
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1 of the adverse action, disclose the nature of the
2 information to the consumer. The user of the information
3 shall clearly and accurately disclose to the consumer his
4 or her right to make the written request at the time the
5 adverse action is communicated to the consumer.
6 (b) Burden of Proof. No person shall be held liable for
7 any violation of this Section if he or she shows by a
8 preponderance of the evidence that at the time of the alleged
9 violation he or she maintained reasonable procedures to
10 assure compliance with the provisions of subsection (a).
11 (c) Transaction Not Initiated By Consumer.
12 (1) Any person who uses a credit report of any
13 consumer, or any information contained in any credit
14 report, in connection with any credit transaction which
15 is not initiated by the consumer shall:
16 (A) conspicuously notify the consumer in
17 writing that information contained in the consumer's
18 credit report was used in connection with such
19 transaction; and
20 (B) make a firm offer of credit to the
21 consumer; and
22 (C) provide a clear and prominent statement
23 with any solicitation made to the consumer that:
24 (i) the solicitation has resulted from
25 the use of information from a credit reporting
26 agency pertaining to the consumer in connection
27 with transactions not initiated by the
28 consumer;
29 (ii) the consumer has a right to prohibit
30 information contained in the consumer's file
31 with any credit reporting agency to be used in
32 connection with transactions not initiated by
33 the consumer; and
34 (iii) explains how the consumer may, in
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1 the exercise of the right referred to in this
2 subsection, have the consumer's files removed
3 from consideration in connection with any
4 credit transaction which the consumer has not
5 initiated.
6 (2) Any statement provided under this subsection
7 may contain an explanation of the consequences to the
8 consumer for having denied consent to receive unsolicited
9 solicitations for credit transactions not initiated by
10 the consumer.
11 (d) Charge For Report. If a user charges a consumer a
12 fee for procuring that consumer's credit report or
13 investigative consumer report, that charge shall not exceed
14 the charge that the credit reporting agency imposes on the
15 user.
16 (e) Full Identifying Information. Before procuring,
17 attempting to procure or causing to be procured, a credit
18 report on a consumer, the user of the credit report shall
19 obtain, from the consumer, the consumer's full last name and
20 first name, middle initial, full street address, zip code,
21 year of birth, any generational designation, and social
22 security number, and shall provide this information to the
23 credit reporting agency when procuring the consumer's credit
24 report. The consumer's social security number may be omitted
25 if the consumer fails to disclose it.
26 Section 60. Requirements On Providers Of Information To
27 Credit Reporting Agencies.
28 (a) In General.
29 (1) (A) Whenever any person, in the course of
30 conducting any business, furnishes any information
31 about any consumer to any credit reporting agency,
32 the person shall follow reasonable procedures which:
33 (i) assure the maximum possible accuracy
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1 of the information; and
2 (ii) provide for a prompt re-investigation
3 and correction of the information upon
4 receiving notice from the consumer or any
5 credit reporting agency that the completeness
6 or accuracy of such information is disputed by
7 the consumer.
8 (B) Any person providing information to a
9 credit reporting agency shall include the consumer's
10 full last name and first name, middle initial, full
11 street address, zip code, year of birth, any
12 generational designation, and social security
13 number. The consumer's social security number need
14 not be provided if the consumer has failed to
15 disclose it.
16 (C) A person subject to the provisions of this
17 subsection shall have the burden of proving
18 compliance with the provisions of this subsection.
19 (2) (A) No person may provide any information
20 to any credit reporting agency which the person
21 has reasonable cause to believe is incomplete
22 or inaccurate.
23 (B) If any provider has furnished,
24 directly or indirectly, information which the
25 person determines or has reason to believe may
26 not be complete or accurate, or information
27 which is no longer complete and accurate by
28 reason of intervening circumstances or events,
29 such provider shall promptly notify any credit
30 reporting agency to which the information has
31 been furnished of the determination, belief, or
32 incomplete or inaccurate state, together with
33 any corrections of the information.
34 (C) If the completeness or accuracy of
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1 any information furnished by any provider
2 continues to be disputed, the person may not
3 furnish the information to any credit reporting
4 agency without notice that the information is
5 disputed by the consumer.
6 (b) Notice to Consumer.
7 (1) In the case of any person who, in the usual
8 course of conducting any business, regularly furnishes
9 information about any consumer to any credit reporting
10 agency, the person shall give notice of that fact in
11 writing to the consumer before providing any information
12 about the consumer to any credit reporting agency.
13 (2) Any written notice provided to any consumer by
14 any person pursuant to this subsection shall contain the
15 following information:
16 (A) A description of the type of information
17 which may be furnished to any credit reporting
18 agency.
19 (B) A description of the times at which or the
20 circumstances under which any information is
21 furnished to any credit reporting agency.
22 (C) A statement of the consumer's rights under
23 this Act.
24 (c) Re-investigation Procedure. Upon receiving notice
25 of a dispute with regard to the completeness or accuracy of
26 any information provided by any person to a credit reporting
27 agency, the person shall:
28 (1) complete an investigation with respect to any
29 disputed information and report the results of the
30 investigation before the end of the 25-day period
31 beginning on the date the person receives the notice;
32 (2) review and properly consider all relevant
33 information provided by the consumer in connection with
34 the dispute; and
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1 (3) provide the consumer with a copy of any notice
2 provided under subsection (a)(2)(B) and a list of all
3 credit reporting agencies and other persons to whom the
4 notice was transmitted pursuant to that subsection.
5 Section 65. Public Record Information.
6 (a) In General. Any credit reporting agency which
7 compiles and reports items of information concerning
8 consumers which are matters of public record shall specify in
9 any credit report containing public record information, the
10 source from which the information was obtained, including the
11 particular court, if there be one, and the date that the
12 information was initially entered in the public record.
13 (b) Employment Purposes. A credit reporting agency
14 which furnishes a credit report for employment purposes and
15 which for that purpose compiles and reports items of
16 information on consumers which are matters of public record
17 and are likely to have an adverse effect upon a consumer's
18 ability to obtain employment shall:
19 (1) at the time the public record information is
20 reported to the user of the credit report, notify the
21 consumer of the fact that public record information is
22 being reported by the credit reporting agency, together
23 with the name and address of the person to whom the
24 information is being reported and the written summary of
25 the rights and remedies of the consumer prepared pursuant
26 to Section 35 of this Act; and
27 (2) maintain strict procedures designed to insure
28 that whenever public record information which is likely
29 to have an adverse effect on a consumer's ability to
30 obtain employment is reported, it is complete and up to
31 date. For purposes of this paragraph, items of public
32 record relating to arrests, indictments, convictions,
33 suits, tax liens, and outstanding judgments shall be
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1 considered up to date if the current public record status
2 of the item at the time of the report is reported.
3 Section 70. Civil Liability For Noncompliance.
4 (a) In General. Remedies provided by this Section are
5 in addition to any other remedy provided by law.
6 (b) Negligent Violation. A person aggrieved by a
7 negligent violation of this Act by a credit reporting agency,
8 by a provider or by a user may bring an action for the
9 person's actual damages or $1,000, whichever is greater;
10 injunctive relief; and reasonable costs and attorney's fees.
11 (c) Willful Violation.
12 (1) In the case of a willful violation, punitive
13 damages, as well as those remedies provided in subsection
14 (b), shall be available to the person.
15 (2) In determining the amount of punitive damages,
16 the court may consider among other relevant factors:
17 (A) The extent to which a credit reporting
18 agency or provider failed to consider relevant
19 information submitted by the consumer during any
20 re-investigation of information in the consumer's
21 file.
22 (B) the extent to which a credit reporting
23 agency or provider, or user of information
24 maintained and complied with procedures designed to
25 ensure compliance with the requirements of this Act.
26 Section 75. Limitations Of Action. An action by a
27 consumer, credit reporting agency, provider, or user to
28 enforce any liability created under this Act may be brought
29 in any appropriate court of competent jurisdiction within 2
30 years from the date on which the liability arises, except
31 that where a defendant has materially and willfully
32 misrepresented any information under this Act and the
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1 information so misrepresented is material to the
2 establishment of the defendant's liability to the person
3 under this Act, the action may be brought at any time within
4 2 years after the discovery by the person of the
5 misrepresentation.
6 Section 80. Unlawfully Receiving, Providing or
7 Disclosing Information.
8 (a) Unlawful Receipt of Credit Information. Any person
9 who knowingly obtains information concerning a consumer from
10 a credit reporting agency under false pretenses commits the
11 offense of unlawful receipt of credit information. Unlawful
12 receipt of credit information is a Class 4 felony.
13 (b) Unlawful Provision of Credit Information. Any
14 person who knowingly provides, attempts to provide, or causes
15 to be provided information that the person knows to be false
16 into a credit reporting agency's files commits the offense of
17 unlawful provision of credit information. Unlawful provision
18 of credit information is a Class 4 felony. This subsection
19 shall not apply to statements of dispute filed by consumers
20 under subsection (g)(1) of Section 45.
21 (c) Unlawful Disclosure of Credit Information. Any
22 officer or employee of a credit reporting agency who
23 knowingly provides information concerning an individual from
24 the agency's files to a person not authorized to receive that
25 information commits unlawful disclosure of credit
26 information. Unlawful disclosure of credit information is a
27 Class 4 felony.
28 (d) Enforcement. Any action brought under this Section
29 shall be brought by the State's Attorney of the county in
30 which the violation occurred, or by the Attorney General, and
31 shall be conducted in accordance with the applicable
32 provisions of the Code of Criminal Procedure of 1963.
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1 Section 85. Remedies.
2 (a) Remedies. The remedies provided by this Act are in
3 addition to other remedies provided by law.
4 (b) Application of Consumer Fraud Act. A violation of
5 this Act shall also constitute a violation of the Consumer
6 Fraud and Deceptive Business Practices Act and all remedies
7 under that Act shall be available hereunder.
8 Section 150. The Consumer Fraud and Deceptive Business
9 Practices Act is amended by changing Section 2Z as follows:
10 (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
11 Sec. 2Z. Violations of other Acts. Any person who
12 knowingly violates the Dance Studio Act, the Physical Fitness
13 Services Act, the Hearing Instrument Consumer Protection Act,
14 the Illinois Union Label Act, the Job Referral and Job
15 Listing Services Consumer Protection Act, the Travel
16 Promotion Consumer Protection Act, the Credit Services
17 Organizations Act, the Credit Reporting Fairness Act, the
18 Automatic Telephone Dialers Act, the Pay-Per-Call Services
19 Consumer Protection Act, the Telephone Solicitations Act, the
20 Illinois Funeral or Burial Funds Act, the Cemetery Care Act,
21 or the Pre-Need Cemetery Sales Act commits an unlawful
22 practice within the meaning of this Act.
23 (Source: P.A. 88-288; 89-72, eff. 12-31-95; 89-615, eff.
24 8-9-96.)