Full text of Bank Secrecy Act
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1114
PUBLIC LAW 91-507-OCT. 26, 1970
[84 STAT.
SEC. 7. The table of sections at the beginning of chapter 37 of title
38 is amended by inserting immediately after
"1818. Veterans who serve after January 31,1955."
the following:
"1819. Loans to purchase mobile homes and mobile home lots."
Effective d a t e .
SEC. 8. Section 5 of this Act shall become effective sixty days following the date of enactment.
Approved October 23, 1970.
Public Law 91-507
October 26,1970
JOINT RESOLUTION
[ s . j . Res. 223] To authorize and request the President to issue a proclamation designating
January 1971 as "National Blood Donor Month".
N a t i o n a l Blood
Donor Month.
Proclamation.
Resolved hy the Senate and House of Representatives of the United
States of America in Congress assemhled^ That, in recognition of the
vital contribution of the voluntary blood donor to medical care, the
President is authorized and requested to issue a proclamation designating the month of January 1971 as "National Blood Donor Month",
and calling upon the people of the United States and interested
groups and organizations to observe such month with appropriate
ceremonies and activities.
Approved October 26, 1970.
Public Law 91-508
October 2 6 , 1970
[H. R. 15073]
F e d e r a l Deposit
Insurance Act,
amendments.
AN ACT
To amend the Federal Deposit Insurance Act to require insured banks to maintain certain records, to require that certain transactions in United States
currency be reported to the Department of the Treasury, and for other purposes.
Be it enacted hy the Senate and House of Representatives
United States of America in Congress assembled^
of the
TITLE I—FINANCIAL EECORDKEEPING
Chapter
Sec.
1. INSURED B A N K S AND INSURED INSTITUTIONS
2. O T H E R F I N A N C I A L INSTITUTIONS
101
121
Chapter 1.—INSURED B A N K S A N D I N S U R E D
INSTITUTIONS
Sec.
101. Retention of records by insured banks.
102. Retention of records by insured institutions.
64 Stat. 8 9 3 ;
81 Stat. 6 1 0 .
12 u s e 1830,
1831.
§ 101. Retention of records by insured banks
The Federal Deposit Insurance Act is amended (1) by redesignating
sections 21 and 22 as 22 and 23, respectively, and (2) by inserting the
following new section immediately after section 20:
"SEC. 21. ( a ) ( 1 ) The Congress finds that adequate records maintained by insured banks have a high degree of usefulness in criminal,
tax, and regulatory investigations and proceedings. The Congress
further finds that microfilm or other reproductions and other records
made by banks of checks, as well as records kept by banks of the
identity of persons maintaining or authorized to act with respect to
accounts therein, have been of particular value in this respect.
84 STAT. ]
PUBLIC LAW 91-508-OCT. 26, 1970
1115
" (2) I t IS the purpose of this section to require the maintenance of
appropriate types of records by insured banks in the United States
where such records liave a high degree of usefulness in criminal, tax,
or regulatory investigations or proceedings.
"(b) Where the Secretary of the Treasury (referred to in this section as the 'Secretary') determines that the maintenance of appropriate
types of records and other evidence by insured banks has a high degree
of usefulness in criminal, tax, or regulatory investigations or proceedings, he shall prescribe regulations to carry out the purposes
of this section.
"(c) Each insured bank shall maintain such records and other evidence, in such form as the Secretary shall require, of the identity of
each person having an account in the United States with the bank
and of each individual authorized to sign checks, make withdrawals,
or otherwise act with respect to any such account. The Secretary may Exemptions.
make such exemptions from any requirement otherwise imposed under
this subsection as are consistent with the purposes of this section.
" ( d ) Each insured bank shall make, to the extent that the regulations of the Secretary so require—
"(1) a microfilm or other reproduction of each check, draft, or
similar instrument drawn on it and presented to it for payment;
and
"(2) a record of each check, draft, or similar instrument
received by it for deposit or collection, together with an identification of the party for whose account it is to be deposited or collected, unless the bank has already made a record of the party's
identity pursuant to subsection (c).
" (e) Whenever any individual engages (whether as principal, agent,
or bailee) in any transaction with an insured bank which is required
to be reported or recorded under the Currency and I'oreign Transactions Reporting Act, the bank shall require and retain such evidence ^"^t, p. i n s .
of the identity of that individual as the Secretary may prescribe as
appropriate under the circumstances.
"(f) In addition to or in lieu of the records and evidence otherwise
referred to in this section, each insured bank shall maintain such
records and evidence as the Secretary may prescribe to carry out the
purposes of this section.
"(g) Any type of record or evidence required under this section
shall be retained for such period as the Secretary may prescribe for
the type in question. Any period so prescribed shall not exceed six
3^ears unless the Secretary determines, having regard for the purposes
of this section, that a longer period is necessary in the case of a particular type of record or evidence.
" ( h ) The Secretary shall include in his annual report to the Con- Report to congress information on his implementation of the authority conferred ^'•®^^*
by this section and any similar authority with respect to recordkeeping
or reporting requirements conferred by other provisions of law."
1116
48 Stat. 1255;
81 Stat. 6 1 1 .
12 u s e 1724.
Ante, p. 1114.
PUBLIC LAW 91-508-OCT. 26, 1970
[84 STAT.
§ 102. Retention of records by insured institutions
Title I V of the National Housing Act is amended by adding at the
end thereof the following new section:
"SEC. 411. The Secretary of the Treasury shall prescribe such regulations as may be appropriate to carry out, with respect to insured
institutions, the purposes set forth in section 21 of the Federal Deposit
Insurance Act with respect to insured banks."
Chapter 2.—0THER FINANCIAL INSTITUTIONS
Sec.
121.
122.
133.
124.
125.
126.
127.
128.
129.
Congressional findings and purpose.
Authority of Secretary with respect to reports on ownership and control.
Authority of Secretary with respect to recordkeeping and procedures.
Injunctions.
Civil penalties.
Criminal penalty.
Additional criminal penalty in certain cases.
Compliance.
Administrative procedure.
§ 121. Congressional findings and purpose
(a) The Congress finds that certain records maintained by businesses engaged in the functions described in section 123(b) of this Act
have a high degree of usefulness in criminal, tax, and regulatory investigations and proceedings. The Congress further finds that the
power to require reports of changes in the ownership, control, and
managements of types of financial institutions referred to in section
122 of this Act may be necessary for the same purpose.
(b) I t is the purpose of this chapter to require the maintenance of
appropriate types of records and tne making of appropriate reports
by such businesses in the United States where such records or reports
have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings.
§ 122. Authority of Secretary with respect to reports on ownership
and control
Where the Secretary determines that the making of appropriate
reports by uninsured banks or uninsured institutions of any type with
respect to their ownership, control, and managements and any changes
therein has a high degree of usefulness in criminal, tax, or regulatory
investigations or proceedings, he may by regulation require such banks
or institutions to make such reports as he determines in respect of
such ownership, control, and managements and changes therein.
§ 123. Authority of Secretary with respect to recordkeeping and
procedures
(a) Where the Secretary determines that the maintenance of
appropriate records and procedures by an^ uninsured bank or uninsured institution, or any person engaging in the business of carrying
on in the United States any of the functions referred to in subsection
(b) of this section, has a high degree of usefulness in criminal, tax,
or regulatory^ investigations or proceedings, he may by regulation
require such bank, institution, or person—
84 STAT. ]
PUBLIC LAW 91-508-OCT. 26, 1970
(1) to require, retain, or maintain, with respect to its functions as an uninsured bank or uninsured institution or its functions referred to in subsection ( b ) , any records or evidence of any
type which the Secretary is authorized under section 21 of the
Federal Deposit Insurance Act to require insured banks to require,
retain, or maintain; and
(2) to maintain procedures to assure compliance with requirements imposed under this chapter. For the purposes of any civil
or criminal penalty, a separate violation of any requirement
under this paragraph occurs with respect to each day and each
separate office, branch, or place of business in which the violation
occurs or continues.
(b) The authority of the Secretary under this section extends to any
person engaging in the business of carrying on any of the following
functions:
(1) Issuing or redeeming checks, money orders, travelers'
checks, or similar instruments, except as an incident to the conduct of its own nonfinancial business.
(2) Transferring
funds
or
credits
domestically
or
internationally.
(3) Operating a currency exchange or otherwise dealing in
foreign currencies or credits.
(4) Operating a credit card system.
(5) Performing such similar, related, or substitute functions
for any of the foregoing or for banking as may be specified by the
Secretary in regulations.
§ 124. Injunctions
Whenever it appears to the Secretary that any person has engaged,
is engaged, or is about to engage in any acts or practices constituting a
violation of any regulation under this chapter, he may in his discretion
bring an action, in the proper district court of the United States or the
proper United States court of any territory or other place subject to
the jurisdiction of the United States, to enjoin such acts or practices,
and upon a proper showing a permanent or temporary injunction or
restraining order shall be granted without bond. Upon application of
the Secretary, any such court may also issue mandatory injunctions
commanding any person to comply with any regulation of the Secretary under this chapter.
§ 125. Civil penalties
(a) For each willful violation of any regulation under this chapter,
the Secretary may assess upon any person to which the regulation
applies, and, if such person is a partnership, corporation, or other
entity, upon any partner, director, officer, or employee thereof who
willfully participates in the violation, a civil penalty not exceeding
$1,000.
(b) I n the event of the failure of any person to pay any penalty
assersed under this section, a civil action for the recovery thereof may,
in the discretion of the Secretary, be brought in the name of the
LTnited States.
iii.ffiD'3f^ H =
1117
Ante,
p . 1114.
1118
PUBLIC LAW 91-508-OCT. 26, 1970
[84 STAT.
§126. Criminal penalty
Whoever willfully violates any regulation under this chapter shall
be fined not more than $1,000 or imprisoned not more than one
year, or both.
§ 127. Additional criminal penalty in certain cases
Whoever willfully violates any regulation under this chapter, secAnte, p. 1114. tiou 21 of the Federal Deposit Insurance Act, or section 411 of the
Ante, p. 1116. National Housing Act, where the violation is committed in furtherance of the commission of any violation of Federal law punishable by
imprisonment for more than one year, shall be fined not more than
$10,000 or imprisoned not more than five years, or both.
§ 128. Compliance
The Secretary shall have the responsibility to assure compliance
with the requirements of this title and may delegate such responsibility
to the appropriate bank supervisory agency, or other supervisory
agency.
§ 129. Administrative procedure
The administrative procedure and judicial review provisions of
80 Stat. 381.
subchapter I I of chapter 5 and chapter 7 of title 5, United States Code,
5 use 551,701. gjjg^jj apply to all proceedings under this chapter, section 21 of the
Federal Deposit Insurance Act, and section 411 of the National
Housing Act.
TITLE II—EEPORTS OF CURRENCY AND
FOREIGN TRANSACTIONS
Chapter
1.
2.
3.
4.
Sec.
GENEKAL PROVISIONS
DOMESTIC CTJRBENCY TRANSACTIONS
REPORTS OF EXPORTS AND IMPORTS OP MONETARY INSTRUMENTS
FOREIGN TRANSACTIONS
201
221
231
241
Chapter 1.—GENERAL PROVISIONS
Sec.
201.
202.
203.
204.
205.
206.
207.
208.
209.
210.
211.
212.
213.
Citation of
Short title.
Purpose.
Definitions and rules of construction.
Regulations.
Compliance.
Exemptions.
Civil penalty.
Injunctions.
Criminal penalty.
Additional criminal penalty in certain cases.
I m m u n i t y of w^itnesses.
Availability of information to other Federal agencies.
Administrative procedure.
§201. Short title
This title may be cited as the Currency and Foreign Transactions
Reporting Act".
§202. Purpose
I t is tlie purpose of this title to require certain reports or records
where such reports or records have a high degree of usefulness in
criminal, tax, or regulatory investigations or proceedings.
§203. Definitions and rules of construction
(a) The definitions and rules of construction set forth in this section
apply for the purposes of this title.
(b) The term "Secretary" means the Secretary of the Treasury.
(c) The term "person" includes natural persons, partnerships,
trusts, estates, associations, corporations, and all entities cognizable
84 STAT. ]
PUBLIC LAW 91-508-OCT. 26, 1970
as legal personalities. The term also includes any governmental department or agency specified by the Secretary either for the purpose of
this title generally or any particular requirement thereunder.
(d) The term "United States", used in a geographical sense, includes the States and the District of Columbia, and to the extent the
Secretary shall by regulation specify, either for the purposes of this
title generally or any particular requirement thereunder, the Commonwealth of Puerto Rico, the possessions of the United States,
United States military establishments, and United States diplomatic
establishments.
(e) The term "financial institution" means any person which does
business in any one or more of the following capacities:
(1) an insured bank as defined in section 3 of the Federal
Deposit Insurance Act;
(2) a commercial bank or trust company;
(3) a private banker;
(4) an agency or a branch within the United States of any
foreign bank;
(5) an insured institution as defined in section 401 of the National Housing Act;
_
_
(6) a savings bank, building and loan association, credit union,
industrial bank, or other thrift institution;
(7) a broker or dealer registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934;
(8) a broker or dealer in securities or commodities;
(9) an investment banker or investment company;
(10) a currency exchange;
(11) an issuer, redeemer or cashier of travelers'checks, checks,
money orders, or similar instruments;
(12) an operator of a credit card system;
(13) an insurance company;
(14) a dealer in precious metals, stones, or j ewels;
(15) a pawnbroker;
(16) a loan or finance company;
(17) a travel agency;
(18) a licensed transmitter of funds;
(19) a telegraph company;
(20) a Federal, State, or local government institution which
performs any of the functions of any of the businesses listed
above;or
(21) any other ty^e of business or institution performing similar, related, or substitute functions specified by the Secretary by
regulation for the purposes of the provision of this title to which
the regulation relates.
(f) The term "domestic", used with reference to institutions or
agencies, limits the applicability of the provision wherein it appears
to the performance by such institutions or agencies of functions within
the United States.
(g) The term "financial agency" means any person which acts in the
capacity of a financial institution or in the capacity of a bailee,
depository trustee, agent, or in any other similar capacity with respect
to money, credit, securities, or gold or transactions therein, on behalf
of any person other than a government, a monetary or financial authority when acting as such, or an international financial institution of
which the United States is a member.
(h) The term "foreign", used with reference to institutions or
agencies, limits the applicabilitjr of the provision wherein it appears
to the performance by such institutions or agencies of functions outside the United States.
1119
J^ suu 873^.
48 Stat. 1255.
^^ "^*^ ^^2'**
js stat. m .
1120
81 Stat. 54.
62 Stat. 749.
.
? 1
PUBLIC LAW 91-508-OCT. 26, 1970
[84 STAT.
(i) References to this title or any provision thereof include regulations issued under this title or the provision thereof in question.
(j) All reports required under this title and all records of any such
reports are specifically exempted from disclosure under section 552 of
title 5, United States Code.
(k) For the purposes of section 1001 of title 18, United States Code,
the contents of reports rec^uired under any provision of this title are
statements and representations in matters within the jurisdiction of an
agency of the United States.
(1) The term "monetary instruments" means coin and currency of
the United States, and in addition, such foreign coin and currencies,
and such types of travelers' checks, bearer negotiable instruments,
bearer investment securities, bearer securities, and stock with title passing upon delivery, or the equivalent thereof, as the Secretary may by
regulation specify for the purposes of the provision of this title to
w^hich the regulation relates.
§204. Regulations
The Secretary shall prescribe such regulations as he may deem
appropriate to carry out the purposes of this title.
§205. Compliance
(a) The Secretary shall have the responsibility to assure compliance with the requirements of this title and may delegate such
responsibility to the appropriate bank supervisory agency, or other
supervisory agency.
(b) The Secretary may by regulation require any class of domestic
financial institutions to maintain such procedures as he may deem
appropriate to assure compliance with the provisions of this title. For
the purposes of both civil and criminal penalties for violations of this
section, a separate violation shall be deemed to occur with respect to
each day and each separate office, branch, or place of business in which
the violation occurs or continues.
§206. Exemptions
The Secretary may make such exemptions from any requirement
otherwise imposed under this title as he may deem appropriate. Any
such exemption may be conditional or unconditional, by regulation,
order, or licensing, or any combination thereof, and may relate to any
particular transaction, to the type or amount of the transaction, to
the party or parties or the classification of parties, or to any combination thereof. The Secretary may in his discretion, in any manner
giving actual or constructive notice to the parties affected, revoke any
exemption made under this section. Any such revocation shall remain
in effect pending any judicial review.
§207. Civil penalty
(a) For each willful violation of this title, the Secretary may
assess upon any domestic financial institution, and upon any partner,
director, officer, or employee thereof who willfully participates in
the violation, a civil penalty not exceeding $1,000.
(b) I n the event of the failure of any person to pay any penalty
assessed under this title, a civil action for the recovery thereof may,
in the discretion of the Secretary, be brought in the name of the
United States.
:
§208. Injunctions
Whenever it appears to the Secretary that any person has engaged,
is engaged, or is about to engage in any acts or practices constituting
a violation of the provisions of this title, or of any order thereunder,
he may in his discretion bring an action, in the proper district court
84 STAT. ]
PUBLIC LAW 91-508-OCT. 26. 1970
of the United States or the proper United States court of any territory
or other place subject to the jurisdiction of the United States, to enjoin
such acts or practices, and upon a proper showing a permanent or
temporary injunction or restraining order shall be granted without
bond. Upon application of the Secretary, any such court may also
issue mandatory injunctions commanding any person to comply with
the provisions of this title or any order of the Secretary made in
purj/.uance thereof.
§ 209. Criminal penalty
Whoever willfully violates any provision of this title or any regulation under this title shall be fined not more than $1,000, or
imprisoned not more than one year, or both.
§210. Additional criminal penalty in certain cases
Whoever willfully violates any provision of this title where the
violation is—
(1) committed in furtherance of the commission of any other
violation of Federal law, or
(2) committed as part of a pattern of illegal activity involving
transactions exceeding $100,000 in any twelve-month period,
shall be fined not more than $500,000 or imprisoned not more than five
years, or both.
§211. Immunity of witnesses
Whenever a witness refuses on the basis of his privilege against
self-incrimination, to testify or provide other information in a proceeding involving any violation of this title before or ancillary to—
(1) acourtorgrand jury of the United States,
(2) an agency of the United States, or
(3) either House of Congress, a joint committee of the two
Houses, or a committee or a subcommittee of either House,
and the person presiding over the proceeding communicates to the
witness an order requiring him to give testimony or provide other
information, the witness may not refuse to comply with the order
on the basis of his privilege against self-incrimination. No such testimony or other information so compelled under the order or evidence
or other information which is obteined by the exploitation of such
testimony may be used against the witness in any criminal case, except
a prosecution for perjury, giving a false statement, or otherwise failing to comply with the order.
§212, Availability of information to other Federal agencies
The Secretary shall, upon such conditions and pursuant to such
procedures as he mav by regulation prescribe, make any information
set forth in reports filed pursuant to this title available for a purpose
consistent with the provisions of this title to any other department or
agency of the Federal Government on the request of the head of such
department or agency.
§213. Administrative procedure
Subject to section 203 (j), the administrative procedure and judicial
review provisions of subchapter I I of chapter 5 and chapter 7 of title
5, United States Code, shall apply to all proceedings under this title.
Chapter 2.~D0MESTIC CURRENCY TRANSACTIONS
Sec.
221. Reports of currency transactions required.
222. Persons required to file reports.
223. Reporting procedure.
1121
^.-^ ,-iin/.
>in'e, p. 1120.
80 Stat. 381.
5 u s e 551, 701.
1122
PUBLIC LAW 91-508-OCT. 26, 1970
[84 STAT.
§221. Reports of currency transactions required
Transactions involving any domestic financial institution shall be
reported to the Secretary at such time, in such manner, and in such
detail as the Secretary may require if they involve the payment,
receipt, or transfer of United States currency, or such other monetary
instruments as the Secretary may specify, in such amounts, denominations, or both, or under such circumstances, as the Secretary shall by
regulation prescribe.
i§222. Persons required to file reports
The report of any transaction required to be reported under this
chapter shall be signed or otherwise made both by the domestic financial institution involved and by one or more of the other parties
thereto or participants therein, as the Secretary may require. If any
party to or participant in the transaction is not an individual actingonly for himself, the report shall identify the person or persons on
whose behalf the transaction is entered into, and shall be made by the
individuals acting as agents or bailees with respect thereto.
§223. Reporting procedure
(a) The Secretary may in his discretion designate domestic financial institutions, individually or by class, as agents of the United
States to receive reports required under this chapter, except that an
institution which is not insured, chartered, examined, or registered
as such by any agency of the LTnited States may not be so designated
without its consent. The Secretary may suspend or revoke any such
designation for any violation of this Act, or section 21 of the Federal
Ante, pp.1114, j)eposit lusurauce Act, or section 411 of the National Housing Act.
1116.
(b) Any person (other than an institution designated under subsection (a)) required to file a report under this chapter with respect
to a transaction with a domestic financial institution shall file the
report with that institution, except that (1) if the institution is not
designated under subsection ( a ) , the report shall be filed as the Secretary shall prescribe, and (2) any such person may, at his election and
in lieu of filing the report in the manner hereinabove prescribed, file
the report with the Secretary. Domestic financial institutions designated under subsection (a) shall transmit reports filed with them, and
shall file their own reports, as the Secretary shall prescribe.
Chapter 3.—REPORTS OF EXPORTS AND IMPORTS
OF MONETARY INSTRUMENTS
Sec.
231.
232.
233.
234.
235.
Reports required.
Forfeiture.
Civil liability.
Remission by the Secretary.
Enforcement authority.
§231. Reports required
(a) Except as provided in subsection (c) of this section, whoever,
whether as principal, agent, or bailee, or by an agent or bailee,
knowingly—
(1) transports or causes to be transported monetary instruments—
(A) from any place within the United States to or through
any place outside the United States, or
(B) to any place within the United States from or through
any place outside the United States, or
(2) receives monetary instruments at the termination of their
transportation to the United States from or through any place
outside the United States
in an amount exceeding $5,000 on any one occasion shall file a report or
reports in accordance with subsection (b) of this section.
84 STAT. ]
PUBLIC LAW 91-508-OCT. 26, 1970
1123
(b) Reports required under this section shall be filed at such times
and places, and may contain such of the following information and any
additional information, in such form and in such detail, as the Secretary may require:
(1) The legal capacity in which the person filing the report is
acting with respect to the monetary instruments transported.
(2) The origin, destination, and route of the transportation.
(3) Where the monetary instruments are not legally and beneficially owned by the person transporting the same, or are transported for any purpose other than the use in his own behalf of
the person transporting the same, the identities of the person from
whom the monetary instruments are received, or to whom they
are to be delivered, or both.
(4) The amounts and types of monetary instruments transported.
(c) Subsection (a) does not apply to any common carrier of passengers in respect or monetary instruments in the possession of its
passengers, nor to any common carrier of goods in respect of shipments
of monetary instruments not declared to be such by the shipper.
§232. Forfeiture
(a) Any monetary instruments which are in the process of any transportation with respect to which any report required to be filed under
section 231(1) either has not been filed or contains material omissions
or misstatements are subject to seizure and forfeiture to the United
States.
(b) For the purpose of this section, monetary instruments transported by mail, by any common carrier, or by any messenger or bailee,
are in process of transportation from the time tney are delivered into
the possession of the postal service, common carrier, messenger, or
bailee until the time they are delivered into or retained in the possession
of the addressee or intended recipient or any agent of the addressee or
intended recipient for purposes other than further transportation
within, or across any border of, the United States.
§233. Civil liability
The Secretary may assess a civil penalty upon any person who fails
to file any report required under section 231, or who files such a report
containing any material omission or misstatement. The amount or the
penalty shall not exceed the amount of the monetary instruments with
respect to whose transportation the report was required to be filed. The
liabilities imposed by this chapter are in addition to any other liabilities, civil or criminal, except that the liability under this section shall
be reduced by any amount actually forfeited under section 232.
§234. Remission by the Secretary
The Secretary may in his discretion remit any forfeiture or penalty
under this chapter in whole or in part upon such terms and conditions
as he deems reasonable and just.
§235. Enforcement authority
(a) If the Secretary has reason to believe that monetary instru- j^ff.^Jl,'''^'^^'''"^"^'
ments are in the process of transportation and with respect to which Issuance.
a report required under section 231 has not been filed or contains
material omissions or misstatements, he may apply to any court of
competent jurisdiction for a search warrant. Upon a showing of probable cause, the court may issue a warrant authorizing the search of
any or all of the following:
(1) One or more designated persons.
(2) One or more designated or described places or premises.
(3) One or more designated or described letters, parcels,
packages, or other physical objects.
1124
PUBLIC LAW 91-508-OCT. 26, 1970
[84 STAT.
(4) One or more designated or described vehicles.
Any application for a search warrant pursuant to this section shall be
accompanied by allegations of fact supporting the application.
(b) This section is not in derogation of the authority of the
Secretary under any other law.
Chapter 4.—FOREIGN TRANSACTIONS
Sec.
241. Records and reports required.
242. Classifications and requirements.
1
,?
§241. Records and reports required
t>isciosure.
,. v,„.
(a) The Secretary of the Treasury, having due regard for the need
to avoid impeding or controlling the export or import of currency or
other monetary instruments and having due regard also for the need
to avoid burdening unreasonably persons who legitimately engage
in transactions with foreign financial agencies, shall by regulation
require any resident or citizen of the United States, or person in the
United States and doing business therein, who engages in any transaction or maintains any relationship, directly or indirectly, on behalf of
himself or another, with a foreign financial agency to maintain records
or to file reports, or both, setting forth such of the following information, in such form and in such detail, as the Secretary may
require:
(1) The identities and addresses of the parties to the transaction or relationship.
(2) The legal capacities in which the parties to the transaction
or relationship are acting, and the identities of the real parties
in interest if one or more of the parties are not acting solely as
principals.
(3) A description of the transaction or relationship including
the amounts of money, credit, or other property involved.
^j^^ ]^Q persou required to maintain records under this section shall
be required to produce or otherwise disclose the contents of the records
except in compliance with a subpena or summons duly authorized and
issued or as may otherwise be required by law.
§242. Classifications and requirements
The Secretary may prescribe:
(1) Any reasonable classification of persons subject to or
exempt from any requirement imposed under section 241.
(2) The foreign country or countries as to which any requirement imposed under section 241 applies or does not apply if, in
the judgment of the Secretary, uniform applicability of any such
requirement to all foreign countries is unnecessary or undesirable.
(3) The magnitude of transactions subject to any requirement
imposed under section 241.
(4) Types of transactions subject to or exempt from^ any
requirement imposed under section 241.
(5) Such other matters as he may deem necessary to the application of this chapter.
TITLE III—MARGIN REQUIREMENTS
oo"*!*^!^';/-,^^'
8 A S t 3 t » 4-9 2 •
§ 301. Amendment of section 7 of the Securities Exchange Act of
1934
(a) Section 7 of the Securities Exchange Act of 1934 (15 U.S.C.
"^^S) is amended by adding at the end thereof the following new
1
J•
subsection:
84 STAT. ]
PUBLIC LAW 91-508-OCT. 26, 1970
1125
" ( f ) (1) I t is unlawful for any United States person, or any foreign person controlled by a United States person or acting on behalf
of or in conjunction with such person, to obtain, receive, or enjoy
the beneficial use of a loan or other extension of credit from any lender
(without regard to whether the lender's office or place of business is
in a State or the transaction occurred in whole or in part within a
State) for the purpose of (A) purchasing or carrying United States
securities, or (B) purchasing or carrying within the United States of
any other securities, if, under this section or rules and regulations prescribed thereunder, the loan or other credit transaction is prohibited
or would be prohibited if it had been made or the transaction had
otherwise occured in a lender's office or other place of business in a
State.
" (2) For the purposes of this subsection—
" ( A ) The term 'United States person' includes a person which "united states
is organized or exists under the laws of any State or, in the case
of a natural person, a citizen or resident of the United States;
a domestic estate; or a trust in which one or more of the foregoing persons has a cumulative direct or indirect beneficial interest in excess of 50 per centum of the value of the trust.
" ( B ) The term 'United States security' means a security (other se"{i!'if *?, ^*^*^^
than an exempted security) issued by a person incorporated
under the laws of any State, or whose principal place of business is within a State.
"(C) The term 'foreign person controlled by a United States "Foreign person
person' includes any noncorporate entity in which United States unued"stlte^s ^
persons directly or indirectly have more than a 50 per centum person."
beneficial interest, and any corporation in which one or more
United States persons, directly or indirectly, own stock possessing
more than 50 per centum of the total combined voting power of
all classes of stock entitled to vote, or more than 50 per centum
^^ ^ ^
of the total value of shares of all classes of stock.
"(3) The Board of Governors of the Federal Reserve System may. Exemption.
in its discretion and with due regard for the purposes of this section,
by rule or regulation exempt any class of United States persons or
.:•». i, foreign persons controlled by a United States person from the application of this subsection."
(b) The amendment made by subsection (a) of this section does not
affect the continuing validity of any rule or regulation under section
7 of the Securities Exchange Act of 1934 in effect prior to the effective Ante, p. 1124.
date of the amendment.
TITLE I V — E F F E C T I V E D A T E S
§401. Effective dates
(a) Except as otherwise provided in this section, titles I, II, and
I I I of this Act and the amendments made thereby take effect on the u^^g'^i'ij^* ^^^'*'
first day of the seventh calendar month which begins after the date of
'
enactment.
(b) The Secretary of the Treasury may by regulation provide that ^^^"'^"*^^"°7„J2
Register.
any provision of title I or II or any amendment made thereby shall Federal
^'' """ ''""
""^
be effective on any date not earlier than the publication of the regulation in the Federal Register and not later than the first day of the
thirteenth calendar month which begins after the date of enactment.
Publication in
(c) The Board of Governors of the Federal Reserve System may by Federal
Register
regulation provide that the amendment made by title I I I shall be
effective on any date not earlier than the publication of the regulation
in the Federal Register and not later than the first day of the thirteenth
calendar month which begins after the date of enactment.
1126
PUBLIC LAW 91-508-OCT. 26, 1970
[84 STAT.
T I T L E V — P E O V I S I O N S R E L A T I N G TO C R E D I T CARDS
15 u s e 1602.
•'Adequate
notice."
Infra,
"Credit card."
''Accepted
credit card."
"Cardholder."
"Card issuer.*'
"Unauthorized
use.»»
15 u s e 1601
note,
15 u s e 1641.
Prohibition.
SEC. 501. Section 103 of the Truth in Lending Act (82 Stat. 146) is
amended by redesignating subsections (j), ( k ) , a n d (1) as subsections
(P)^ (q)i ^^^ ( r ) , respectively, and by adding after subsection (i) the
following:
"(j) The term 'adequate notice', as used in section 133, means a
printed notice to a cardholder which sets forth the pertinent facts
clearly and conspicuously so that a person against whom it is to
operate could reasonably be expected to have noticed it and understood
its meaning. Such notice may be given to a cardholder by printing
the notice on any credit card, or on each periodic statement of account,
issued to the cardholder, or by any other means reasonably assuring
the receipt thereof by the cardholder.
" ( k ) The term 'credit card' means any card, plate, coupon book or
other credit device existing for the purpose of obtaining money,
property, labor, or services on credit.
"(1) The term 'accepted credit card' means any credit card which
the cardholder has requested and received or has signed or has used,
or authorized another to use, for the purpose of obtaining money,
property, labor, or services on credit.
" (m) The term 'cardholder' means any person to whom a credit card
is issued or any person who has agreed with the card issuer to pay
obligations arising from the issuance of a credit card to another
person.
" ( n ) The term 'card issuer' means any person who issues a credit
card, or the agent of such person with respect to such card.
"(o) The term 'unauthorized use', as used in section 133, means a
use of a credit card by a person other than the cardholder who does
not have actual, implied, or apparent authority for such use and from
which the cardholder receives no benefit."
SEC. 502. (a) The Truth in Lending Act (82 Stat. 146) is amended
by adding after section 131 the following sections:
"§ 132. Issuance of credit cards
"No credit card shall be issued except in response to a request or
application therefor. This prohibition does not apply to the issuance
of a credit card in renewal of, or in substitution for, an accepted
credit card.
"§133. Liability of holder of credit card
" ( a ) A cardholder shall be liable for the unauthorized use of a
credit card only if the card is an accepted credit card, the liability is
not in excess of $50, the card issuer gives adequate notice to the cardholder of the potential liability, the card issuer has provided the
cardholder with a self-addressed, prestamped notification to be mailed
by the cardholder in the event of the loss or theft of the credit card,
and the unauthorized use occurs before the cardholder has notified
the card issuer that an unauthorized use of the credit card has occurred
or may occur as the result of loss, theft, or otherwise. Notwithstanding
the foregoing, no cardholder shall be liable for the unauthorized use
of any credit card which was issued on or after the effective date of
this section, and, after the expiration of twelve months following such
effective date, no cardholder shall be liable for the unauthorized use
of any credit card regardless of the date of its issuance, unless (1) the
conditions of liability specified in the preceding sentence are met, and
(2) the card issuer has provided a method whereby the user of such
card can be identified as the person authorized to use it. For the
purposes of this section, a cardholder notifies a card issuer by taking
such steps as may be reasonably required in the ordinary course of
business to provide the card issuer with the pertinent information
whether or not any particular officer, employee, or agent of the card
issuer does in fact receive such information.
84 STAT. ]
1127
PUBLIC LAW 91-508-OCT. 26, 1970
"(b) I n any action by a card issuer to enforce liability for the use of
a credit card, the burden of proof is upon the card issuer to show that
the use was authorized or, if the use was unauthorized, then the burden
of proof is upon the card issuer to show that the conditions of liability
for the unauthorized use of a credit card, as set forth in subsection ( a ) ,
have been met.
"(c) Nothing in this section imposes liability upon a cardholder for
the unauthorized use of a credit card in excess of his liability for
such use under other applicable law or under any agreement with
the card issuer.
" ( d ) Except as provided in this section, a cardholder incurs no
liability from the unauthorized use of a credit card.
"§134. Fraudulent use of credit card
"Whoever, in a transaction affecting interstate or foreign commerce,
uses any counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card to obtain goods or services, or both, having
a retail value aggregating $5,000 or more, shall be fined not more than
$10,000 or imprisoned not more than five years, or both."
(b) The table of contents of chapter 2 of the Truth in Lending
Act is amended by adding at the end thereof the following:
Penalty.
82 Stat. 152.
15 u s e 1631.
"132. Issuance of credit cards.
"133. Liability of holder of credit card,
"134. F r a u d u l e n t use of credit card."
SEC. 503. The amendments to the Truth in Lending Act made by
this title become effective as follows:
(1) Section 132 of such Act takes effect upon the date of enactment of this title.
(2) Section 133 of such Act takes effect upon the expiration
of 90 days after such date of enactment.
(3) Section 134 of such Act applies to offenses committed on or
after such date of enactment.
Effective dates.
T I T L E V I — P R O V I S I O N S R E L A T I N G TO C R E D I T
REPORTING AGENCIES
AMENDMENT OF CONSUMER CREDIT PROTECTION ACT
SEC. 601. The Consumer Credit Protection Act is amended by adding at the end thereof the following new title:
"TITLE VI—CONSUMER CREDIT REPORTING
"Sec.
"601.
"602,
"603.
"604.
"605.
"606.
"607,
"608.
"609.
"610.
"611.
"612.
"613.
"614.
"615.
"616.
"617.
"618.
"619.
"620.
"621.
"622.
Short title.
Findings and purpose,
Definitions a n d rules of construction.
Permissible purposes of reports.
Obsolete, information.
Disclosure of investigative consumer reports,
Compliance procedures.
Disclosures to governmental agencies.
Disclosure to consumers.
Conditions of disclosure to consumers.
Procedure in ease of disputed accuracy,
Charges for certain disclosures.
Public record information for employment purposes.
Restrictions on investigative consumer reports.
Requirements on users of consumer reports.
Civil liability for willful noncompliance.
Civil liability for negligent noncompliance.
Jurisdiction of c o u r t s ; limitation of actions.
Obtaining information under false pretenses.
Unauthorized disclosures by oflScers or employees.
Administrative enforcement.
Relation to State laws.
82 Stat. 146.
15 u s e 1601
note.
1128
Citation of
title.
PUBLIC LAW 91-508-OCT. 26, 1970
[84 STAT.
"§ 601. Short title
"This title may be cited as the Fair Credit Reporting Act.
"§602. Findings and purpose
" (a) 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, credit standing, credit capacity,
character, and general reputation of consumers.
"(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) I t is the purpose of this title 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 title.
"§603. Definitions and rules of construction
" ( a ) Definitions and rules of construction set forth in this section
are applicable for the purposes of this title.
"(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 ) 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, 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 (1) credit or insurance to be used primarily for personal, family, or household purposes, or (2) employment purposes, or (3) other purposes authorized under section 604.
The term does not include (A) any report containing information
solely as to transactions or experiences between the consumer and
the person making the report; (B) any authorization or approval of
a specific extension of credit directly or indirectl^^ by the issuer of
a credit card or similar device; or (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 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
Post, p. 1133. section 615.
"(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 obta,ined 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
84 STAT. ]
PUBLIC LAW 91-508-OCT. 26, 1970
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.
"§ 604. Permissible purposes of reports
"A consumer reporting agency may furnish a consumer report under
the following circumstances and no other:
" (1) I n response to the order of a court having jurisdiction to issue
such an order.
"(2) I n 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 ) otherwise has a legitimate business need for the information in connection with a business transaction involving the
consumer.
"§605. Obsolete information
" ( a ) Except as authorized under subsection ( b ) , no consumer
reporting agency may make any consumer report containing any of
the following items of information:
"(1) Bankruptcies which, from date of adjudication of the most
recent bankruptcy, antedate the report by more than fourteen years.
"(2) Suits and judgments which, from date of entr^r, antedate the
report by more than seven years or until the governing statute of
limitations has expired, whichever is the longer period.
"(3) Paid tax liens which, from date of payment, antedate the
report by more than seven years.
1129
1130
PUBLIC LAW 91-508-OCT. 26, 1970
[84 STAT.
"(4) Accounts placed for collection or charged to profit and loss
which antedate the report by more than seven years.
"(5) Records of arrest, indictment, or conviction of crime which,
from date of disposition, release, or parole, antedate the report by
more than seven years.
"(6) Any other adverse item of information which antedates the
report by more than seven years.
" ( b ) The provisions of subsection (a) are not applicable in the
case of any consumer credit report to be used in connection with—
"(1) a credit transaction involving, or which may reasonably
be expected to involve, a principal amount of $50,000 or more;
"(2) the underwriting of life insurance involving, or which
may reasonably be expected to involve, a face amount of $50,000
or more; or
"(3) the employment of any individual at an annual salary
which equals, or which may reasonably be expected to equal
$20,000, or more.
"§606. Disclosure of investigative consumer reports
" ( a ) A person may not procure or cause to be prepared an investigative consumer report on any consumer unless—
" (1) it is clearly and accurately disclosed to the consumer that
an investigative consumer report including information as to his
character, general reputation, personal characteristics, and mode
of living, whichever are applicable, may be made, and such disclosure (A) is made in a writing mailed, or otherwise delivered,
to the consumer, not later than three days after the date on which
the report was first requested, and (B) includes a statement informing the consumer of his right to request the additional
disclosures provided for under subsection (b) of this section; or
" (2) the report is to be used for employment purposes for which
the consumer has not specifically applied.
"(b) Any person who procures or causes to be prepared an investigative consumer report on any consumer shall, upon written request
made by the consumer within a reasonable period of time after the
receipt by him of the disclosure required by subsection (a) (1), shall
make a complete and accurate disclosure of the nature and scope of
the investigation requested. This disclosure shall be made in a writing
mailed, or otherwise delivered, to the consumer not later than five
days after the date on which the request for such disclosure was
received from the consumer or such report was first requested, whichever is the later.
"(c) No person may be held liable for any violation of subsection
(a) or (b) of this section if he shows by a preponderance of the
evidence that at the time of the violation he maintained reasonable
procedures to assure compliance with subsection (a) or (b).
"§607. Compliance procedures
" ( a ) Every consumer rej)orting agency shall maintain reasonable
procedures designed to avoid violations of section 605 and to limit
the furnishing of consumer reports to the purposes listed under
section 604. These procedures shall require that prospective users of the
information identify themselves, certify the purposes for which the
information is sougnt, and certify that the information will be used
for no other purpose. Every consumer reporting agency shall make a
reasonable effort to verify the identity of a new prospective user and
the uses certified by such prospective user prior to furnishing such user
a consumer report. No consumer reporting agency may furnish a consumer report to any person if it has reasonable grounds for believing
that the consumer report will not be used for a purpose listed in section
604.
84 STAT. ]
PUBLIC LAW 91-508-OCT. 26, 1970
"(b) Whenever a consumer reporting agency prepares a consumer
report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom
the report relates.
"§ 608. Disclosures to governmental agencies
"Notwithstanding the provisions of section 604, a consumer reporting agency may furnish identifying information respecting any
consumer, limited to his name, address, former addresses, places of
employment, or former places of employment, to a governmental
agency.
"§609. Disclosures to consumers
" ( a ) Every consumer reporting agency shall, upon request and
proper identification of any consumer, clearly and accurately disclose
to the consumer:
"(1) The nature and substance of all information (except medical
information) in its files on the consumer at the time of the request.
"(2) The sources of the information; except that the sources of
information acquired solely for use in preparing an investigative consumer report and actually used for no other purpose need not be disclosed : Provided^ That in the event an action is brovight under this
title, such sources shall be available to the plaintiff under appropriate
discovery procedures in the court in which the action is brought.
" (3) The recipients of any consumer report on the consumer which
it has furnished—
" ( A ) for employment purposes within the two-year period
preceding the request, and
" ( B ) for any other purpose within the six-month period preceding the request.
"(b) The requirements of subsection (a) respecting the disclosure
of sources of information and the recipients of consumer reports do
not apply to information received or consumer reports furnished prior
to the effective date of this title except to the extent that the matter
involved is contained in the files of the consumer reporting agency on
that date.
"§610. Conditions of disclosure to consumers
" ( a ) A consumer repofting agency shall make the disclosures
required under section 609 during normal business hours and on
reasonable notice.
" (b) The disclosures required under section 609 shall be made to the
consumer—
"(1) in person if he appears in person and furnishes proper
identification; or
"(2) by telephone if he has made a written request, with
proper identification, for telej^hone disclosure and the toll charge,
if any, for the telephone call is prepaid by or charged directly to
the consumer.
"(c) Any consumer reporting agency shall provide trained personnel to explain to the consumer any information furnished to him pursuant to section 609.
" ( d ) The consumer shall be permitted to be accompanied by one
other person of his choosing, who shall furnish reasonable identification. A consumer reporting agency may require the consumer to furnish a written statement granting permission to the consumer
reporting agency to discuss the consumer's file in such person's
presence.
"(e) Except as provided in sections 616 and 617, no consumer may
bring any action or proceeding in the nature of defamation, invasion of
privacy, or negligence with respect to the reporting of information
1131
1132
PUBLIC LAW 91-508-OCT. 26, 1970
[84 STAT.
against any consumer reporting agency, any user of information, or
any person who furnishes information to a consumer reporting agency,
based on information disclosed pursuant to section 609, 610, or 615,
except as to false information furnished with malice or willful intent
to injure such consumer.
"§ 611. Procedure in case of disputed accuracy
" (a) If the completeness or accuracy of any item of information contained in his file is disputed by a consumer, and such dispute is directly
conveyed to the consumer reporting agency by the consumer, the consumer reporting agency shall within a reasonable period of time
reinvestigate and record the current status of that information unless
it has reasonable grounds to believe that the dispute by the consumer
is frivolous or irrelevant. If after such reinvestigation such information is found to be inaccurate or can no longer be verified, the consumer
reporting agency shall promptly delete such information. The presence of contradictory information in the consumer's file does not in
and of itself constitute reasonable grounds for believing the dispute is
frivolous or irrelevant.
"(b) If the reinvestigation does not resolve the dispute, the consumer may file a brief statement setting forth the nature of the dispute.
The consumer reporting agency may limit such statements to not more
than one hundred words if it provides the consumer with assistance in
writing a clear summary of the dispute.
"(c) Whenever a statement of a dispute is filed, unless there is
reasonable grounds to believe that it is frivolous or irrevelant, the
consumer reporting agency shall, in any subsequent consumer report
containing the information in question, clearly note that it is disputed by the consumer and provide either the consumer's statement
or a clear and accurate codification or summary thereof,
" ( d ) Following any deletion of information which is found to be
inaccurate or whose accuracy can no longer be verified or any notation
as to disputed information, the consumer reporting agency shall, at
the request of the consumer, furnish notification that the item has
been deleted or the statement, codification or summary pursuant to
subsection (b) or (c) to any person specifically designated by the
consumer who has within two years prior thereto received a consumer report for employment purposes, or within six months prior
thereto received a consumer report for any other purpose, which
contained the deleted or disputed information. The consumer reporting agency shall clearly and conspicuously disclose to the consumer his rights to make such a request. Such disclosure shall be
made at or prior to the time the information is deleted or the consumer's statement regarding the disputed information is received.
"§ 612. Charges for certain disclosures
"A consumer reporting agency shall make all disclosures pursuant
to section 609 and furnish all consumer reports pursuant to section
611(d) without charge to the consumer if, within thirty days after
receipt by such consumer of a notification pursuant to section 615 or
notification from a debt collection agency affiliated with such consumer reporting agency stating that the consumer's credit rating may
be or has been adversely affected, the consumer makes a request under
section 609 or 611(d). Otherwise, the consumer reporting agency
may impose a reasonable charge on the consumer for making disclosure to such consumer pursuant to section 609, the charge for which
shall be indicated to the consumer prior to making disclosure; and
for furnishing notifications, statements, summaries, or codifications
to person designated by the consumer pursuant to section 611(d), the
charge for which shall be indicated to the consumer prior to furnish-
84 STAT. ]
PUBLIC LAW 91-508-OCT. 26, 1970
ing such information and shall not exceed the charge that the consumer reporting agency would impose on each designated recipient
for a consumer report except that no charge may be made for notifying
such persons of the deletion of information which is found to be
inaccurate or which can no longer be verified.
"§613. Public record information for employment purposes
"A consumer reporting agency which furnishes a consumer report
for employment purposes and which for that purpose compiles and
reports items of information on consumers which are matters of
public record and are likely to have an adverse effect upon a consumer's ability to obtain employment shall—
"(1) at the time such public record information is reported to
the user of such consumer report, notify the consumer of the fact
that public record information is being reported by the consumer
reporting agency, together with the name and address of the person to whom such information is being reported; or
"(2) maintain strict procedures designed to insure that whenever public record information which is likely to have an adverse
effect on a consumer's ability to obtain employment is reported
it is complete and up to date. For purposes of this paragraph,
items of public record relating to arrests, indictments, convictions, suits, tax liens, and outstanding judgments shall be considered up to date if the current public record status of the item
at the time of the report is reported.
"§614. Restrictions on investigative consumer reports
"Whenever a consumer reporting agency prepares an investigative
consumer report, no adverse information in the consumer report (other
than information which is a matter of public record) may be included
in a subsequent consumer report unless such adverse information has
been verified in the process of making such subsequent consumer
report, or the adverse information was received within the threemonth period preceding the date the subsequent report is furnished.
"§615. Requirements on users of consumer reports
" ( a ) Whenever credit or insurance for personal, family, or household purposes, or employment involving a consumer is denied or the
charge for such credit or insurance is increased either wholly or partly
because of information contained in a consumer report from a consumer reporting agency, the user of the consumer report shall so
advise the consumer against whom such adverse action has been taken
and supply the name and address of the consumer reporting agency
making the report.
"(b) Whenever credit for personal, family, or household purposes
involving a consumer is denied or the charge for such credit is
increased either wholly or partly because of information obtained
from a person other than a consumer reporting agency bearing upon
the consumer's credit worthiness, credit standing, credit capacity,
character, general reputation, personal characteristics, or mode of
living, the user of such information shall, within a reasonable period
of time, upon the consumer's written request for the reasons for such
adverse action received within sixty days after learning of such
adverse action, disclose the nature of the information to the consumer. The user of such information shall clearly and accurately
disclose to the consumer his right to make such written request at the
time such adverse action is communicated to the consumer.
" (c) No person shall be held liable for any violation of this section
if he shows by a preponderance of the evidence that at the time of the
alleged violation he maintained reasonable procedures to assure compliance with the provisions of subsections (a) and (b).
1133
1134
38 Stat. 717;
IS use 58*.
PUBLIC LAW 91-508-OCT. 26, 1970
[84 STAT.
"§616. Civil liability for willful noncompliance
"Any consumer reporting agency or user of information which
willfully fails to comply with any requirement imposed under this
title with respect to any consumer is liable to that consumer in an
a-mount equal to the sum of—
" (1) any actual damages sustained by the consumer as a rt suit
of the failure;
" (2) such amount of punitive damages as the court may allow;
and
" (3) in the case of any successful action to enforce any liability
under this section, the costs of the action together with reasonable
attorney's fees as determined by the court.
"§617. Civil liability for negligent noncompliance
"Any consumer reporting agency or user of information which is
negligent in failing to comply with any requirement imposed under
this title with respect to any consumer is liable to that consumer in an
amount equal to the sum of—
"(1) any actual damages sustained by the consumer as a result
of the failure;
" (2) in the case of any successful action to enforce any liability
under this section, the costs of the action together with reasonable
attorney's fees as determined by the court.
"§ 618. Jurisdiction of courts; limitation of actions
"An action to enforce any liability created under this title may be
brought in any appropriate United States district court without
regard to the amount in controversy, or in any other court of competent jurisdiction, within two years from the date on which the liability
arises, except that where a defendant has materially and willfully
misrepresented any information required under this title to be disclosed to an individual and the information so misrepresented is material to the establishment of the defendant's liability to that
individual under this title, the action may be brought at any time
within two years after discovery by the individual of the
misrepresentation.
"§ 619. Obtaining information under false pretenses
"Any person who knowingly and willfully obtains information on a
consumer from a consumer reporting agency under false pretenses
shall be fined not more than $5,000 or imprisoned not more than
one year, or both.
"§620. Unauthorized disclosures by officers or employees
"Any officer or employ> of a consumer reporting agency who knowingly and willfully provides information concerning an individual
from the agency's files to a person not authorized to receive that information shall be fined not more than $5,000 or imprisoned not more
than one year, or both.
"§ 621. Administrative enforcement
" ( a ) Compliance with the requirements imposed under this title
shall be enforced under the Federal Trade Commission Act by the
Federal Trade Commission with respect to consumer reporting agencies and all other persons subject thereto, except to the extent that
enforcement of the requirements imposed under this title is specifically
committed to some other government agency under subsection (b)
hereof. For the purpose of the exercise by the Federal Trade Commission of its functions and powers under the Federal Trade Commission Act, a violation of any requirement or prohibition imposed
84 STAT. ]
PUBLIC LAW 91-508-OCT. 26, 1970
1135
under this title shall constitute an unfair or deceptive act or practice in commerce in violation of section 5(a) of the Federal
Trade Commission Act and shall be subject to enforcement by ^f use 45^^'
the Federal Trade Commission under section 5(b) thereof with 52 stat. 11*2.
respect to any consumer reporting agency or person subject to
enforcement by the Federal Trade Commission pursuant to this subsection, irrespective of whether that person is engaged in commerce
or meets any other jurisdictional tests in the Federal Trade Commission Act. The Federal Trade Commission shall have such procedural,
investigative, and enforcement powers, including the power to issue
procedural rules in enforcing compliance with the requirements
imposed under this title and to require the filing of reports, the production of documents, and the appearance of witnesses as though the
applicable terms and conditions of the Federal Trade Commission Act
were part of this title. Any person violating any of the provisions of
this title shall be subject to the penalties and entitled to the privileges
and immunities provided in the Federal Trade Commission Act as
though the applicable terms and provisions thereof were part of this
title.
"(b) Compliance with the requirements imposed under this title
with respect to consumer reporting agencies and persons who use
consumer reports from such agencies shall be enforced under—
"(1) section 8 of the Federal Deposit Insurance Act, in the 64 stat. 879;
case of:
^
?054?*''°'''
" (A) national banks, by the Comptroller of the Currency; 12 use isis.
" ( B ) member banks of the Federal Reserve System (other
than national banks), by the Federal Reserve Board; and
" ( C ) banks insured by the Federal Deposit Insurance
Corporation (other than members of the Federal Reserve
System), by the Board of Directors of the Federal Deposit
Insurance Corporation.
"(2) section 5(d) of the Home Owners Loan Act of 1933, so stat. 1028.
section 407 of the National Housing Act, and sections 6(i) and 17 go stau Voa'e*.
of the Federal Home Loan Bank Act, by the Federal Home Loan 12 use* 1730.'
Bank Board (acting directly or through the Federal Savings and 69*513^6*40^^'
Loan Insurance Corporation), in the case of any institution sub- 12 use 14*26,
ject to any of those provisions;
^"^37.
"(3) the Federal Credit Union Act, by the Administrator of 73 stat. 628;
the National Credit Union Administration with respect to any ^"2^'u^^* 175u^'**
Federal credit union;
"(4) the Acts to regulate commerce, by the Interstate Commerce Commission with respect to any common carrier subject
to those A c t s ;
49 u s e 1 et sea.
" (5) the Federal Aviation Act of 1958, by the Civil Aeronautics 72 stat. 731.
Board with respect to any air carrier or foreign air carrier subject note.
to that Act; and
"(6) the Packers and Stockyards Act, 1921 (except as pro- 42 stat. 159.
vided in section 406 of that Act), by the Secretary of Agriculture 7 use isi.
With respect to any activities subject to that Act.
7 use'226,227.
"(c) For the purpose of the exercise by any agency referred to in
subsection (b) of its powers under any Act referred to in that subsection, a violation of any requirement imposed under this title shall
be deemed to be a violation of a requirement imposed under that A ct.
I n addition to its powers under any provision of law specifically
referred to in subsection (b), each of the agencies referred to in that
subsection may exercise, for the purpose of enforcing compliance with
any requirement imposed under this title any other authority conferred
on it by law.
1136
PUBLIC LAW 91-509-OCT. 26, 1970
[84 STAT.
"§622. Relation to State laws
"This title does not annul, alter, affect, or exempt any person subject
to the provisions of this title from complying with the laws of any
State with respect to the collection, distribution, or use of any information on consumers, except to the extent that those laws are inconsistent
with any provision of this title, and then only to the extent of the
inconsistency."
E F r E C T I \ ^ DATE
82 Stat. 167.
SEC. 602. Section 504 of the Consumer Credit Protection Act is
amended by adding at the end thereof the following new subsection:
" ( d ) Title V I takes effect upon the expiration of one hundred and
eighty days folloAving the date of its enactment."
Approved October 26, 1970.
Public Law 91-509
October 2 6 , 1970
[S.2695]
Policemen and
Firemen's Retirement and D i s a b i l ity Act Amendments of 1970.
Definitions.
71 Stat. 3 9 1 .
Deductions.
71 Stat. 3 9 3 ;
72 Stat. 6 8 6 .
AN ACT
To provide for the retirement of officers and members of the Metropolitan Police
force, the Fire Department of the District of Columbia, the United States
Park Police force, the Executive Protective Service, and of certain officers
and members of the United States Secret Service, and for other purposes.
Be it enacted hy the Senate and House of Representatives of the
United States of America in Congress asserribled^ That section 12 of
the Act of September 1,1916 (39 Stat. 718), as amended (D.C. Code,
sec. 4-521 et seq.) is amended as follows:
(1) Paragraph (4) of subsection (a) of such section (D.C. Code,
sec. 4-521) is amended to read as follows:
"(4) The term 'widower' means the surviving husband of a member who was married to such individual while she was a member.".
(2) Paragraph (5) of subsection (a) of such section (D.C. Code,
sec. 4-521) IS amended to read as follows:
"(5) (A) The term 'child' means an unmarried child, including (i)
an adopted child, and (ii) a stepchild or recognized natural child who
lives with the member in a regular parent-child relationship, under
the age of eighteen years, or such unmarried child regardless of age
who, because of physical or mental disability incurred before the age
of eighteen, is incapable of self-support.
" ( B ) The term 'student child' means an unmarried child who is a
student between the ages of eighteen and twenty-two years, inclusive,
and who is regularly pursuing a full-time course of study or training
in residence or in a high school, trade school, technical or vocational
institute, junior college, college, university, or comparable recognized
educational institution.".
(3) Suhsection (d) of such section (D.C. Code, sec. 4-524) is
amended as follows:
(A) Paragraph (1) of such subsection is amended to read as follows:
"(1) On and after the first day of the first pay period which begins
on or after the effective date of the Policemen and Firemen's Retirement and Disability Act Amendments of 1970 there shall be deducted
and withheld from each member's basic salary an amount equal to 7
per centum of such basic salary. Such deductions and withholdings
shall be paid to the Collector of Taxes of the District of Columbia, and
shall be deposited in the Treasury to the credit of the District of
Columbia.".
(B) Paragraph (3) of such subsection is amended by inserting
@FedFRASER