Nulife 2 Corporate Office

    (a) Accuracy and fairness of credit reporting

      The Congress makes the following findings:

      (1) The banking system is dependent upon fair and accurate credit

    reporting.  Inaccurate credit reports directly impair the

    efficiency of the banking system, and unfair credit reporting

    methods undermine the public confidence which is essential to the

    continued functioning of the banking system.

      (2) An elaborate mechanism has been developed for investigating

    and evaluating the credit worthiness, (FOOTNOTE 1) credit standing,

    credit capacity, character, and general reputation of consumers.

       (FOOTNOTE 1) So in original.  Probably should be

    ''creditworthiness,''.

      (3) Consumer reporting agencies have assumed a vital role in

    assembling and evaluating consumer credit and other information on

    consumers.

      (4) There is a need to insure that consumer reporting agencies

    exercise their grave responsibilities with fairness, impartiality,

    and a respect for the consumer's right to privacy.

    (b) Reasonable procedures

      It is the purpose of this subchapter to require that consumer

    reporting agencies adopt reasonable procedures for meeting the

    needs of commerce for consumer credit, personnel, insurance, and

    other information in a manner which is fair and equitable to the

    consumer, with regard to the confidentiality, accuracy, relevancy,

    and proper utilization of such information in accordance with the

    requirements of this subchapter.

Section 1681a. Definitions; rules of construction

      (a) Definitions and rules of construction set forth in this

    section are applicable for the purposes of this subchapter.

      (b) The term ''person'' means any individual, partnership,

    corporation, trust, estate, cooperative, association, government or

    governmental subdivision or agency, or other entity.

      (c) The term ''consumer'' means an individual.

      (d) Consumer Report. -

        (1) In general. - The term ''consumer report'' means any

      written, oral, or other communication of any information by a

      consumer reporting agency bearing on a consumer's credit

      worthiness, (FOOTNOTE 1) credit standing, credit capacity,

      character, general reputation, personal characteristics, or mode

      of living which is used or expected to be used or collected in

      whole or in part for the purpose of serving as a factor in

      establishing the consumer's eligibility for -

       (FOOTNOTE 1) So in original.  Probably should be

    ''creditworthiness,''.

          (A) credit or insurance to be used primarily for personal,

        family, or household purposes;

          (B) employment purposes; or

          (C) any other purpose authorized under section 1681b of this

        title.

        (2) Exclusions. - The term ''consumer report'' does not include

      -

          (A) any -

            (i) report containing information solely as to transactions

          or experiences between the consumer and the person making the

          report;

            (ii) communication of that information among persons

          related by common ownership or affiliated by corporate

          control; or

            (iii) communication of other information among persons

          related by common ownership or affiliated by corporate

          control, if it is clearly and conspicuously disclosed to the

          consumer that the information may be communicated among such

          persons and the consumer is given the opportunity, before the

          time that the information is initially communicated, to

          direct that such information not be communicated among such

          persons;

          (B) any authorization or approval of a specific extension of

        credit directly or indirectly by the issuer of a credit card or

        similar device;

          (C) any report in which a person who has been requested by a

        third party to make a specific extension of credit directly or

        indirectly to a consumer conveys his or her decision with

        respect to such request, if the third party advises the

        consumer of the name and address of the person to whom the

        request was made, and such person makes the disclosures to the

        consumer required under section 1681m of this title; or

          (D) a communication described in subsection (o) of this

        section.

      (e) The term ''investigative consumer report'' means a consumer

    report or portion thereof in which information on a consumer's

    character, general reputation, personal characteristics, or mode of

    living is obtained through personal interviews with neighbors,

    friends, or associates of the consumer reported on or with others

    with whom he is acquainted or who may have knowledge concerning any

    such items of information.  However, such information shall not

    include specific factual information on a consumer's credit record

    obtained directly from a creditor of the consumer or from a

    consumer reporting agency when such information was obtained

    directly from a creditor of the consumer or from the consumer.

      (f) The term ''consumer reporting agency'' means any person

    which, for monetary fees, dues, or on a cooperative nonprofit

    basis, regularly engages in whole or in part in the practice of

    assembling or evaluating consumer credit information or other

    information on consumers for the purpose of furnishing consumer

    reports to third parties, and which uses any means or facility of

    interstate commerce for the purpose of preparing or furnishing

    consumer reports.

      (g) The term ''file'', when used in connection with information

    on any consumer, means all of the information on that consumer

    recorded and retained by a consumer reporting agency regardless of

    how the information is stored.

      (h) The term ''employment purposes'' when used in connection with

    a consumer report means a report used for the purpose of evaluating

    a consumer for employment, promotion, reassignment or retention as

    an employee.

      (i) The term ''medical information'' means information or records

    obtained, with the consent of the individual to whom it relates,

    from licensed physicians or medical practitioners, hospitals,

    clinics, or other medical or medically related facilities.

      (j) Definitions Relating to Child Support Obligations. -

        (1) Overdue support. - The term ''overdue support'' has the

      meaning given to such term in section 666(e) of title 42.

        (2) State or local child support enforcement agency. - The term

      ''State or local child support enforcement agency'' means a State

      or local agency which administers a State or local program for

      establishing and enforcing child support obligations.

      (k) Adverse Action. -

        (1) Actions included. - The term ''adverse action'' -

          (A) has the same meaning as in section 1691(d)(6) of this

        title; and

          (B) means -

            (i) a denial or cancellation of, an increase in any charge

          for, or a reduction or other adverse or unfavorable change in

          the terms of coverage or amount of, any insurance, existing

          or applied for, in connection with the underwriting of

          insurance;

            (ii) a denial of employment or any other decision for

          employment purposes that adversely affects any current or

          prospective employee;

            (iii) a denial or cancellation of, an increase in any

          charge for, or any other adverse or unfavorable change in the

          terms of, any license or benefit described in section

          1681b(a)(3)(D) of this title; and

            (iv) an action taken or determination that is -

              (I) made in connection with an application that was made

            by, or a transaction that was initiated by, any consumer,

            or in connection with a review of an account under section

            1681b(a)(3)(F)(ii) of this title; and

              (II) adverse to the interests of the consumer.

        (2) Applicable findings, decisions, commentary, and orders. -

      For purposes of any determination of whether an action is an

      adverse action under paragraph (1)(A), all appropriate final

      findings, decisions, commentary, and orders issued under section

      1691(d)(6) of this title by the Board of Governors of the Federal

      Reserve System or any court shall apply.

      (l) Firm Offer of Credit or Insurance. - The term ''firm offer of

    credit or insurance'' means any offer of credit or insurance to a

    consumer that will be honored if the consumer is determined, based

    on information in a consumer report on the consumer, to meet the

    specific criteria used to select the consumer for the offer, except

    that the offer may be further conditioned on one or more of the

    following:

        (1) The consumer being determined, based on information in the

      consumer's application for the credit or insurance, to meet

      specific criteria bearing on credit worthiness (FOOTNOTE 2) or

      insurability, as applicable, that are established -

       (FOOTNOTE 2) So in original.  Probably should be

    ''creditworthiness''.

          (A) before selection of the consumer for the offer; and

          (B) for the purpose of determining whether to extend credit

        or insurance pursuant to the offer.

        (2) Verification -

          (A) that the consumer continues to meet the specific criteria

        used to select the consumer for the offer, by using information

        in a consumer report on the consumer, information in the

        consumer's application for the credit or insurance, or other

        information bearing on the credit worthiness (FOOTNOTE 2) or

        insurability of the consumer; or

          (B) of the information in the consumer's application for the

        credit or insurance, to determine that the consumer meets the

        specific criteria bearing on credit worthiness (FOOTNOTE 2) or

        insurability.

        (3) The consumer furnishing any collateral that is a

      requirement for the extension of the credit or insurance that was

      -

          (A) established before selection of the consumer for the

        offer of credit or insurance; and

          (B) disclosed to the consumer in the offer of credit or

        insurance.

      (m) Credit or Insurance Transaction That Is Not Initiated by the

    Consumer. - The term ''credit or insurance transaction that is not

    initiated by the consumer'' does not include the use of a consumer

    report by a person with which the consumer has an account or

    insurance policy, for purposes of -

        (1) reviewing the account or insurance policy; or

        (2) collecting the account.

      (n) State. - The term ''State'' means any State, the Commonwealth

    of Puerto Rico, the District of Columbia, and any territory or

    possession of the United States.

      (o) Excluded Communications. - A communication is described in

    this subsection if it is a communication -

        (1) that, but for subsection (d)(2)(D) of this section, would

      be an investigative consumer report;

        (2) that is made to a prospective employer for the purpose of -

          (A) procuring an employee for the employer; or

          (B) procuring an opportunity for a natural person to work for

        the employer;

        (3) that is made by a person who regularly performs such

      procurement;

        (4) that is not used by any person for any purpose other than a

      purpose described in subparagraph (A) or (B) of paragraph (2);

      and

        (5) with respect to which -

          (A) the consumer who is the subject of the communication -

            (i) consents orally or in writing to the nature and scope

          of the communication, before the collection of any

          information for the purpose of making the communication;

            (ii) consents orally or in writing to the making of the

          communication to a prospective employer, before the making of

          the communication; and

            (iii) in the case of consent under clause (i) or (ii) given

          orally, is provided written confirmation of that consent by

          the person making the communication, not later than 3

          business days after the receipt of the consent by that

          person;

          (B) the person who makes the communication does not, for the

        purpose of making the communication, make any inquiry that if

        made by a prospective employer of the consumer who is the

        subject of the communication would violate any applicable

        Federal or State equal employment opportunity law or

        regulation; and

          (C) the person who makes the communication -

            (i) discloses in writing to the consumer who is the subject

          of the communication, not later than 5 business days after

          receiving any request from the consumer for such disclosure,

          the nature and substance of all information in the consumer's

          file at the time of the request, except that the sources of

          any information that is acquired solely for use in making the

          communication and is actually used for no other purpose, need

          not be disclosed other than under appropriate discovery

          procedures in any court of competent jurisdiction in which an

          action is brought; and

            (ii) notifies the consumer who is the subject of the

          communication, in writing, of the consumer's right to request

          the information described in clause (i).

      (p) Consumer Reporting Agency That Compiles and Maintains Files

    on Consumers on a Nationwide Basis. - The term ''consumer reporting

    agency that compiles and maintains files on consumers on a

    nationwide basis'' means a consumer reporting agency that regularly

    engages in the practice of assembling or evaluating, and

    maintaining, for the purpose of furnishing consumer reports to

    third parties bearing on a consumer's credit worthiness, (FOOTNOTE

    3) credit standing, or credit capacity, each of the following

    regarding consumers residing nationwide:

       (FOOTNOTE 3) So in original.  Probably should be

    ''creditworthiness,''.

        (1) Public record information.

        (2) Credit account information from persons who furnish that

      information regularly and in the ordinary course of business.

Section 1681b. Permissible purposes of consumer reports

    (a) In general

      Subject to subsection (c) of this section, any consumer reporting

    agency may furnish a consumer report under the following

    circumstances and no other:

      (1) In response to the order of a court having jurisdiction to

    issue such an order, or a subpoena issued in connection with

    proceedings before a Federal grand jury.

      (2) In accordance with the written instructions of the consumer

    to whom it relates.

      (3) To a person which it has reason to believe -

        (A) 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

        (B) intends to use the information for employment purposes; or

        (C) intends to use the information in connection with the

      underwriting of insurance involving the consumer; or

        (D) 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

        (E) intends to use the information, as a potential investor or

      servicer, or current insurer, in connection with a valuation of,

      or an assessment of the credit or prepayment risks associated

      with, an existing credit obligation; or

        (F) otherwise has a legitimate business need for the

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