SECTIONS 1785.10-1785.19.5 - California Statutes

CIVIL CODE

SECTION 1785.10-1785.19.5

1785.10. (a) Every consumer credit reporting agency shall, upon
request and proper identification of any consumer, allow the consumer
to visually inspect all files maintained regarding that consumer at
the time of the request.
(b) Every consumer reporting agency, upon contact by a consumer by
telephone, mail, or in person regarding information which may be
contained in the agency files regarding that consumer, shall promptly
advise the consumer of his or her rights under Sections 1785.11.8,
1785.19, and 1785.19.5, and of the obligation of the agency to
provide disclosure of the files in person, by mail, or by telephone
pursuant to Section 1785.15, including the obligation of the agency
to provide a decoded written version of the file or a written copy of
the file with an explanation of any code, including any credit score
used, and the key factors, as defined in Section 1785.15.1, if the
consumer so requests that copy. The disclosure shall be provided in
the manner selected by the consumer, chosen from among any reasonable
means available to the consumer credit reporting agency.
The agency shall determine the applicability of subdivision (1) of
Section 1785.17 and, where applicable, the agency shall inform the
consumer of the rights under that section.
(c) All information on a consumer in the files of a consumer
credit reporting agency at the time of a request for inspection under
subdivision (a), shall be available for inspection, including the
names, addresses and, if provided by the sources of information, the
telephone numbers identified for customer service for the sources of
information.
(d) (1) The consumer credit reporting agency shall also disclose
the recipients of any consumer credit report on the consumer which
the consumer credit reporting agency has furnished:
(A) For employment purposes within the two-year period preceding
the request.
(B) For any other purpose within the 12-month period preceding the
request.
(2) Disclosure of recipients of consumer credit reports for
purposes of this subdivision shall include the name of the recipient
or, if applicable, the fictitious business name under which the
recipient does business disclosed in full. The identification shall
also include the address and, if provided by the recipient, the
telephone number identified for customer service for the recipient.
(e) The consumer credit reporting agency shall also disclose a
record of all inquiries received by the agency in the 12-month period
preceding the request that identified the consumer in connection
with a credit transaction which is not initiated by the consumer.
This record of inquiries shall include the name, address and, if
provided by the recipient, the telephone number identified for
customer service for each recipient making an inquiry.
(f) Any consumer credit reporting agency when it is subject to the
provisions of Section 1785.22 is exempted from the requirements of
subdivisions (c), (d), and (e), only with regard to the provision of
the address and telephone number.
(g) Any consumer credit reporting agency, that provides a consumer
credit report to another consumer credit reporting agency that
procures the consumer credit report for the purpose of resale and is
subject to Section 1785.22, is exempted from the requirements of
subdivisions (d) and (e), only with regard to the provision of the
address and telephone number regarding each prospective user to which
the consumer credit report was sold.
(h) This section shall become operative on January 1, 2003.

1785.11. (a) A consumer credit reporting agency shall furnish a
consumer credit report only under the following circumstances:
(1) In response to the order of a court having jurisdiction to
issue an order.
(2) In accordance with the written instructions of the consumer to
whom it relates.
(3) To a person whom it has reason to believe:
(A) Intends to use the information in connection with a credit
transaction, or entering or enforcing an order of a court of
competent jurisdiction for support, involving the consumer as to 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 for insurance
claims settlements; 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 the applicant's financial responsibility or status; or
(E) Intends to use the information in connection with the hiring
of a dwelling unit, as defined in subdivision (c) of Section 1940; or
(F) Otherwise has a legitimate business need for the information
in connection with a business transaction involving the consumer.
(b) A consumer credit reporting agency may furnish information for
purposes of a credit transaction specified in subparagraph (A) of
paragraph (3) of subdivision (a), where it is a credit transaction
that is not initiated by the consumer, only under the circumstances
specified in paragraph (1) or (2), as follows:
(1) The consumer authorizes the consumer credit reporting agency
to furnish the consumer credit report to the person.
(2) The proposed transaction involves a firm offer of credit to
the consumer, the consumer credit reporting agency has complied with
subdivision (d), and the consumer has not elected pursuant to
paragraph (1) of subdivision (d) to have the consumer's name excluded
from lists of names provided by the consumer credit reporting agency
for purposes of reporting in connection with the potential issuance
of firm offers of credit. A consumer credit reporting agency may
provide only the following information pursuant to this paragraph:
(A) The name and address of the consumer.
(B) Information pertaining to a consumer that is not identified or
identifiable with a particular consumer.
(c) Except as provided in paragraph (3) of subdivision (a) of
Section 1785.15, a consumer credit reporting agency shall not furnish
to any person a record of inquiries solely resulting from credit
transactions that are not initiated by the consumer.
(d) (1) A consumer may elect to have his or her name and address
excluded from any list provided by a consumer credit reporting agency
pursuant to paragraph (2) of subdivision (b) by notifying the
consumer credit reporting agency, by telephone or in writing, through
the notification system maintained by the consumer credit reporting
agency pursuant to subdivision (e), that the consumer does not
consent to any use of consumer credit reports relating to the
consumer in connection with any transaction that is not initiated by
the consumer.
(2) An election of a consumer under paragraph (1) shall be
effective with respect to a consumer credit reporting agency, and any
affiliate of the consumer credit reporting agency, on the date on
which the consumer notifies the consumer credit reporting agency.
(3) An election of a consumer under paragraph (1) shall terminate
and be of no force or effect following notice from the consumer to
the consumer credit reporting agency, through the system established
pursuant to subdivision (e), that the election is no longer
effective.
(e) Each consumer credit reporting agency that furnishes a
prequalifying report pursuant to subdivision (b) in connection with a
credit transaction not initiated by the consumer shall establish and
maintain a notification system, including a toll-free telephone
number, that permits any consumer, with appropriate identification
and for which the consumer credit reporting agency has a file, to
notify the consumer credit reporting agency of the consumer's
election to have the consumer's name removed from any list of names
and addresses provided by the consumer credit reporting agency, and
by any affiliated consumer credit reporting agency, pursuant to
paragraph (2) of subdivision (b). Compliance with the requirements of
this subdivision by a consumer credit reporting agency shall
constitute compliance with those requirements by any affiliate of
that consumer credit reporting agency.
(f) Each consumer credit reporting agency that compiles and
maintains files on consumers on a nationwide basis shall establish
and maintain a notification system under paragraph (1) of subdivision
(e) jointly with its affiliated consumer credit reporting agencies.

1785.11.1. (a) A consumer may elect to place a security alert in
his or her credit report by making a request in writing or by
telephone to a consumer credit reporting agency. "Security alert"
means a notice placed in a consumer's credit report, at the request
of the consumer, that notifies a recipient of the credit report that
the consumer's identity may have been used without the consumer's
consent to fraudulently obtain goods or services in the consumer's
name.
(b) A consumer credit reporting agency shall notify each person
requesting consumer credit information with respect to a consumer of
the existence of a security alert in the credit report of that
consumer, regardless of whether a full credit report, credit score,
or summary report is requested.
(c) Each consumer credit reporting agency shall maintain a
toll-free telephone number to accept security alert requests from
consumers 24 hours a day, seven days a week.
(d) The toll-free telephone number shall be included in any
written disclosure by a consumer credit reporting agency to any
consumer pursuant to Section 1785.15 and shall be printed in a clear
and conspicuous manner.
(e) A consumer credit reporting agency shall place a security
alert on a consumer's credit report no later than five business days
after receiving a request from the consumer.
(f) The security alert shall remain in place for at least 90 days,
and a consumer shall have the right to request a renewal of the
security alert.
(g) Any person who uses a consumer credit report in connection
with the approval of credit based on an application for an extension
of credit, or with the purchase, lease, or rental of goods or
non-credit-related services and who receives notification of a
security alert pursuant to subdivision (a) may not lend money, extend
credit, or complete the purchase, lease, or rental of goods or
non-credit-related services without taking reasonable steps to verify
the consumer's identity, in order to ensure that the application for
an extension of credit or for the purchase, lease, or rental of
goods or non-credit-related services is not the result of identity
theft. If the consumer has placed a statement with the security alert
in his or her file requesting that identity be verified by calling a
specified telephone number, any person who receives that statement
with the security alert in a consumer's file pursuant to subdivision
(a) shall take reasonable steps to verify the identity of the
consumer by contacting the consumer using the specified telephone
number prior to lending money, extending credit, or completing the
purchase, lease, or rental of goods or non-credit-related services.
If a person uses a consumer credit report to facilitate the extension
of credit or for another permissible purpose on behalf of a
subsidiary, affiliate, agent, assignee, or prospective assignee, that
person may verify a consumer's identity under this section in lieu
of the subsidiary, affiliate, agent, assignee, or prospective
assignee.
(h) For purposes of this section, "extension of credit" does not
include an increase in the dollar limit of an existing open-end
credit plan, as defined in Regulation Z issued by the Board of
Governors of the Federal Reserve System (12 C.F.R. 226.2), or any
change to, or review of, an existing credit account.
(i) If reasonable steps are taken to verify the identity of the
consumer pursuant to subdivision (b) of Section 1785.20.3, those
steps constitute compliance with the requirements of this section,
except that if a consumer has placed a statement including a
telephone number with the security alert in his or her file, his or
her identity shall be verified by contacting the consumer using that
telephone number as specified pursuant to subdivision (g).
(j) A consumer credit reporting agency shall notify each consumer
who has requested that a security alert be placed on his or her
consumer credit report of the expiration date of the alert.
(k) Notwithstanding Section 1785.19, any consumer credit reporting
agency that recklessly, willfully, or intentionally fails to place a
security alert pursuant to this section shall be liable for a
penalty in an amount of up to two thousand five hundred dollars
($2,500) and reasonable attorneys' fees.

1785.11.2. (a) A consumer may elect to place a security freeze on
his or her credit report by making a request in writing by mail to a
consumer credit reporting agency. "Security freeze" means a notice
placed in a consumer's credit report, at the request of the consumer,
and subject to certain exceptions, that prohibits the consumer
credit reporting agency from releasing the consumer's credit report
or any information from it without the express authorization of the
consumer. If a security freeze is in place, information from a
consumer's credit report may not be released to a third party without
prior express authorization from the consumer. This subdivision does
not prevent a consumer credit reporting agency from advising a third
party that a security freeze is in effect with respect to the
consumer's credit report.
(b) A consumer credit reporting agency shall place a security
freeze on a consumer's credit report no later than three business
days after receiving a written request from the consumer.
(c) The consumer credit reporting agency shall send a written
confirmation of the security freeze to the consumer within 10
business days and shall provide the consumer with a unique personal
identification number or password to be used by the consumer when
providing authorization for the release of his or her credit for a
specific party or period of time.
(d) If the consumer wishes to allow his or her credit report to be
accessed for a specific party or period of time while a freeze is in
place, he or she shall contact the consumer credit reporting agency,
request that the freeze be temporarily lifted, and provide the
following:
(1) Proper identification, as defined in subdivision (c) of
Section 1785.15.
(2) The unique personal identification number or password provided
by the credit reporting agency pursuant to subdivision (c).
(3) The proper information regarding the third party who is to
receive the credit report or the time period for which the report
shall be available to users of the credit report.
(e) A consumer credit reporting agency that receives a request
from a consumer to temporarily lift a freeze on a credit report
pursuant to subdivision (d) shall comply with the request no later
than three business days after receiving the request.
(f) A consumer credit reporting agency may develop procedures
involving the use of telephone, fax, the Internet, or other
electronic media to receive and process a request from a consumer to
temporarily lift a freeze on a credit report pursuant to subdivision
(d) in an expedited manner.
(g) A consumer credit reporting agency shall remove or temporarily
lift a freeze placed on a consumer's credit report only in the
following cases:
(1) Upon consumer request, pursuant to subdivision (d) or (j).
(2) If the consumer's credit report was frozen due to a material
misrepresentation of fact by the consumer. If a consumer credit
reporting agency intends to remove a freeze upon a consumer's credit
report pursuant to this paragraph, the consumer credit reporting
agency shall notify the consumer in writing prior to removing the
freeze on the consumer's credit report.
(h) A third party who requests access to a consumer credit report
in connection with an application for credit or any other use may
treat the application as incomplete if a security freeze is in effect
and the consumer does not allow his or her credit report to be
accessed for that specific party or period of time.
(i) If a consumer requests a security freeze, the consumer credit
reporting agency shall disclose the process of placing and
temporarily lifting a freeze and the process for allowing access to
information from the consumer's credit report for a specific party or
period of time while the freeze is in place.
(j) A security freeze shall remain in place until the consumer
requests that the security freeze be removed. A consumer credit
reporting agency shall remove a security freeze within three business
days of receiving a request for removal from the consumer if the
consumer provides both of the following:
(1) Proper identification, as defined in subdivision (c) of
Section 1785.15.
(2) The unique personal identification number or password provided
by the credit reporting agency pursuant to subdivision (c).
(k) A consumer credit reporting agency shall require proper
identification, as defined in subdivision (c) of Section 1785.15, of
the person making a request to place or remove a security freeze.
(l) The provisions of this section do not apply to the use of a
consumer credit report by any of the following:
(1) (A) (i) A person or entity with which the consumer has or had,
prior to any assignment, an account or contract, including a demand
deposit account, or to which the consumer issued a negotiable
instrument, for the purpose of reviewing the account or collecting
the financial obligation owing for the account, contract, or
negotiable instrument.
(ii) A subsidiary, affiliate, or agent of a person or entity
described in clause (i), an assignee of a financial obligation owing
by the consumer to such a person or entity, or a prospective assignee
of a financial obligation owing by the consumer to such a person or
entity in conjunction with the proposed purchase of the financial
obligation, for the purpose of reviewing the account or collecting
the financial obligation owing for the account, contract, or
negotiable instrument.
(B) For purposes of this paragraph, "reviewing the account"
includes activities related to account maintenance, monitoring,
credit line increases, and account upgrades and enhancements.
(2) A subsidiary, affiliate, agent, assignee, or prospective
assignee of a person to whom access has been granted under
subdivision (d) for purposes of facilitating the extension of credit
or other permissible use.
(3) Any state or local agency, law enforcement agency, trial
court, or private collection agency acting pursuant to a court order,
warrant, or subpoena.
(4) A child support agency acting pursuant to Chapter 2
(commencing with Section 17400) of Division 17 of the Family Code or
Title IV-D of the Social Security Act (42 U.S.C. et seq.).
(5) The State Department of Health Care Services or its agents or
assigns acting to investigate Medi-Cal fraud.
(6) The Franchise Tax Board or its agents or assigns acting to
investigate or collect delinquent taxes or unpaid court orders or to
fulfill any of its other statutory responsibilities.
(7) The use of credit information for the purposes of prescreening
as provided for by the federal Fair Credit Reporting Act.
(8) Any person or entity administering a credit file monitoring
subscription service to which the consumer has subscribed.
(9) Any person or entity for the purpose of providing a consumer
with a copy of his or her credit report upon the consumer's request.
(m) (1) Except as provided in paragraph (2), this title does not
prevent a consumer credit reporting agency from charging a fee of no
more than ten dollars ($10) to a consumer for the placement of each
freeze, the removal of the freeze, the temporary lift of the freeze
for a period of time, or the temporary lift of the freeze for a
specific party, regarding access to a consumer credit report, except
that a consumer credit reporting agency may not charge a fee to a
victim of identity theft who has submitted a valid police report or
valid Department of Motor Vehicles investigative report that alleges
a violation of Section 530.5 of the Penal Code.
(2) With respect to a consumer who is 65 years of age or older and
who has provided identification confirming his or her age, a
consumer credit reporting agency may charge a fee not to exceed five
dollars ($5) for the placement of each freeze, the removal of the
freeze, the temporary lift of the freeze for a period of time, or the
temporary lift of the freeze for a specific party.
(n) Regardless of the existence of a security freeze, a consumer
reporting agency may disclose public record information lawfully
obtained by, or for, the consumer reporting agency from an open
public record to the extent otherwise permitted by law. This
subdivision does not prohibit a consumer reporting agency from
electing to apply a valid security freeze to the entire contents of a
credit report.

1785.11.3. (a) If a security freeze is in place, a consumer credit
reporting agency shall not change any of the following official
information in a consumer credit report without sending a written
confirmation of the change to the consumer within 30 days of the
change being posted to the consumer's file: name, date of birth,
social security number, and address. Written confirmation is not
required for technical modifications of a consumer's official
information, including name and street abbreviations, complete
spellings, or transposition of numbers or letters. In the case of an
address change, the written confirmation shall be sent to both the
new address and to the former address.
(b) If a consumer has placed a security alert, a consumer credit
reporting agency shall provide the consumer, upon request, with a
free copy of his or her credit report at the time the 90-day security
alert period expires.

1785.11.4. The provisions of Sections 1785.11.1, 1785.11.2, and
1785.11.3 do not apply to a consumer credit reporting agency that
acts only as a reseller of credit information pursuant to Section
1785.22 by assembling and merging information contained in the data
base of another consumer credit reporting agency or multiple consumer
credit reporting agencies, and does not maintain a permanent data
base of credit information from which new consumer credit reports are
produced. However, a consumer credit reporting agency acting
pursuant to Section 1785.22 shall honor any security freeze placed on
a consumer credit report by another consumer credit reporting
agency.

1785.11.6. The following entities are not required to place in a
credit report either a security alert, pursuant to Section 1785.11.1,
or a security freeze, pursuant to Section 1785.11.2:
(a) A check services or fraud prevention services company, which
issues reports on incidents of fraud or authorizations for the
purpose of approving or processing negotiable instruments, electronic
funds transfers, or similar methods of payments.
(b) A deposit account information service company, which issues
reports regarding account closures due to fraud, substantial
overdrafts, ATM abuse, or similar negative information regarding a
consumer, to inquiring banks or other financial institutions for use
only in reviewing a consumer request for a deposit account at the
inquiring bank or financial institution.

1785.11.8. A consumer may elect that his or her name shall be
removed from any list that a consumer credit reporting agency
furnishes for credit card solicitations, by notifying the consumer
credit reporting agency, by telephone or in writing, pursuant to the
notification system maintained by the consumer credit reporting
agency pursuant to subdivision (d) of Section 1785.11. The election
shall be effective for a minimum of two years, unless otherwise
specified by the consumer.

1785.12. Notwithstanding the provisions of Section 1785.11, a
consumer credit reporting agency may furnish to a governmental agency
a consumer's name, address, former address, places of employment, or
former places of employment.

1785.13. (a) No consumer credit reporting agency shall make any
consumer credit report containing any of the following items of
information:
(1) Bankruptcies that, from the date of the order for relief,
antedate the report by more than 10 years.
(2) Suits and judgments that, from the date of entry or renewal,
antedate the report by more than seven years or until the governing
statute of limitations has expired, whichever is the longer period.
(3) Unlawful detainer actions, unless the lessor was the
prevailing party. For purposes of this paragraph, the lessor shall be
deemed to be the prevailing party only if (A) final judgment was
awarded to the lessor (i) upon entry of the tenant's default, (ii)
upon the granting of the lessor's motion for summary judgment, or
(iii) following trial, or (B) the action was resolved by a written
settlement agreement between the parties that states that the
unlawful detainer action may be reported. In any other instance in
which the action is resolved by settlement agreement, the lessor
shall not be deemed to be the prevailing party for purposes of this
paragraph.
(4) Paid tax liens that, from the date of payment, antedate the
report by more than seven years.
(5) Accounts placed for collection or charged to profit and loss
that antedate the report by more than seven years.
(6) Records of arrest, indictment, information, misdemeanor
complaint, or conviction of a crime that, from the date of
disposition, release, or parole, antedate the report by more than
seven years. These items of information shall no longer be reported
if at any time it is learned that in the case of a conviction a full
pardon has been granted, or in the case of an arrest, indictment,
information, or misdemeanor complaint a conviction did not result.
(7) Any other adverse information that antedates the report by
more than seven years.
(b) The seven-year period specified in paragraphs (5) and (7) of
subdivision (a) shall commence to run, with respect to any account
that is placed for collection (internally or by referral to a third
party, whichever is earlier), charged to profit and loss, or
subjected to any similar action, upon the expiration of the 180-day
period beginning on the date of the commencement of the delinquency
that immediately preceded the collection activity, charge to profit
and loss, or similar action. Where more than one of these actions is
taken with respect to a particular account, the seven-year period
specified in paragraphs (5) and (7) shall commence concurrently for
all these actions on the date of the first of these actions.
(c) Any consumer credit reporting agency that furnishes a consumer
credit report containing information regarding any case involving a
consumer arising under the bankruptcy provisions of Title 11 of the
United States Code shall include an identification of the chapter of
Title 11 of the United States Code under which the case arose if that
can be ascertained from what was provided to the consumer credit
reporting agency by the source of the information.
(d) A consumer credit report shall not include any adverse
information concerning a consumer antedating the report by more than
10 years or that otherwise is prohibited from being included in a
consumer credit report.
(e) If a consumer credit reporting agency is notified by a
furnisher of credit information that an open-end credit account of
the consumer has been closed by the consumer, any consumer credit
report thereafter issued by the consumer credit reporting agency with
respect to that consumer, and that includes information respecting
that account, shall indicate the fact that the consumer has closed
the account. For purposes of this subdivision, "open-end credit
account" does not include any demand deposit account, such as a
checking account, money market account, or share draft account.
(f) Consumer credit reporting agencies shall not include medical
information in their files on consumers or furnish medical
information for employment, insurance, or credit purposes in a
consumer credit report without the consent of the consumer.
(g) A consumer credit reporting agency shall include in any
consumer credit report information, if any, on the failure of the
consumer to pay overdue child or spousal support, where the
information either was provided to the consumer credit reporting
agency pursuant to Section 4752 or has been provided to the consumer
credit reporting agency and verified by another federal, state, or
local governmental agency.

1785.135. No consumer credit reporting agency shall make any
consumer credit report with respect to a document which acts as a
lien or other encumbrance, including, but not limited to, a notice of
lis pendens, but which has together with it a court order striking
or releasing the lien or other encumbrance pursuant to Section
765.030 of the Code of Civil Procedure.

1785.14. (a) Every consumer credit reporting agency shall maintain
reasonable procedures designed to avoid violations of Section 1785.13
and to limit furnishing of consumer credit reports to the purposes
listed under Section 1785.11. These procedures shall require that
prospective users of the information identify themselves, certify the
purposes for which the information is sought and certify that the
information will be used for no other purposes. From the effective
date of this act the consumer credit reporting agency shall keep a
record of the purposes as stated by the user. Every consumer credit
reporting agency shall make a reasonable effort to verify the
identity of a new prospective user and the uses certified by the
prospective user prior to furnishing the user a consumer report. No
consumer credit reporting agency may furnish a consumer credit report
to any person unless the consumer credit reporting agency has
reasonable grounds for believing that the consumer credit report will
be used by the person for the purposes listed in Section 1785.11. A
consumer credit reporting agency does not have reasonable grounds for
believing that a consumer credit report will be used by the person
for the purposes listed in Section 1785.11 unless all of the
following requirements are met:
(1) If the prospective user is a retail seller, as defined in
Section 1802.3, and intends to issue credit to a consumer who appears
in person on the basis of an application for credit submitted in
person, the consumer credit reporting agency shall, with a reasonable
degree of certainty, match at least three categories of identifying
information within the file maintained by the consumer credit
reporting agency on the consumer with the information provided to the
consumer credit reporting agency by the retail seller. The
categories of identifying information may include, but are not
limited to, first and last name, month and date of birth, driver's
license number, place of employment, current residence address,
previous residence address, or social security number. The categories
of information shall not include mother's maiden name.
(2) If the prospective user is a retail seller, as defined in
Section 1802.3, and intends to issue credit to a consumer who appears
in person on the basis of an application for credit submitted in
person, the retail seller certifies, in writing, to the consumer
credit reporting agency that it instructs its employees and agents to
inspect a photo identification of the consumer at the time the
application was submitted in person. This paragraph does not apply to
an application for credit submitted by mail.
(3) If the prospective user intends to extend credit by mail
pursuant to a solicitation by mail, the extension of credit shall be
mailed to the same address as on the solicitation unless the
prospective user verifies any address change by, among other methods,
contacting the person to whom the extension of credit will be
mailed.
(b) Whenever a consumer credit reporting agency prepares a
consumer credit report, it shall follow reasonable procedures to
assure maximum possible accuracy of the information concerning the
individual about whom the report relates. These reasonable procedures
shall include, but not be limited to, permanent retention by the
consumer credit reporting agency in the consumer's file, or a
separately individualized file, of that portion of the data in the
file that is used by the consumer credit reporting agency to identify
the individual consumer pursuant to paragraph (1) of subdivision
(a). This permanently retained data shall be available for use in
either a reinvestigation pursuant to subdivision (a) of Section
1785.16, an investigation where the consumer has filed a police
report pursuant to subdivision (k) of Section 1785.16, or a
restoration of a file involving the consumer. If the permanently
retained identifying information is retained in a consumer's file, it
shall be clearly identified in the file in order for an individual
who reviews the file to easily distinguish between the permanently
stored identifying information and any other identifying information
that may be a part of the file. This retention requirement shall not
apply to data that is reported in error, that is obsolete, or that is
found to be inaccurate through the results of a reinvestigation
initiated by a consumer pursuant to subdivision (a) of Section
1785.16.
(c) No consumer credit reporting agency may prohibit any user of
any consumer credit report furnished by the consumer credit reporting
agency from disclosing the contents of the consumer credit report to
the consumer who is the subject of the report if adverse action may
be taken by the user based in whole or in part on the consumer credit
report. The act of disclosure to the consumer by the user of the
contents of a consumer credit report shall not be a basis for
liability of the consumer credit reporting agency or the user under
Section 1785.31.
(d) A consumer credit reporting agency shall provide a written
notice to any person who regularly and in the ordinary course of
business supplies information to the consumer credit reporting agency
concerning any consumer or to whom a consumer credit report is
provided by the consumer credit reporting agency. The notice shall
specify the person's obligations under this title. Copies of the
appropriate code sections shall satisfy the requirement of this
subdivision.

1785.15. (a) A consumer credit reporting agency shall supply files
and information required under Section 1785.10 during normal business
hours and on reasonable notice. In addition to the disclosure
provided by this chapter and any disclosures received by the
consumer, the consumer has the right to request and receive all of
the following:
(1) Either a decoded written version of the file or a written copy
of the file, including all information in the file at the time of
the request, with an explanation of any code used.
(2) A credit score for the consumer, the key factors, and the
related information, as defined in and required by Section 1785.15.1.
(3) A record of all inquiries, by recipient, that result in the
provision of information concerning the consumer in connection with a
credit transaction not initiated by the consumer and that were
received by the consumer credit reporting agency in the 12-month
period immediately preceding the request for disclosure under this
section.
(4) The recipients, including end users specified in Section
1785.22, of any consumer credit report on the consumer which the
consumer credit reporting agency has furnished:
(A) For employment purposes within the two-year period preceding
the request.
(B) For any other purpose within the 12-month period preceding the
request.
Identification for purposes of this paragraph shall include the
name of the recipient or, if applicable, the fictitious business name
under which the recipient does business disclosed in full. If
requested by the consumer, the identification shall also include the
address of the recipient.
(b) Files maintained on a consumer shall be disclosed promptly as
follows:
(1) In person, at the location where the consumer credit reporting
agency maintains the trained personnel required by subdivision (d),
if he or she appears in person and furnishes proper identification.
(2) By mail, if the consumer makes a written request with proper
identification for a copy of the file or a decoded written version of
that file to be sent to the consumer at a specified address. A
disclosure pursuant to this paragraph shall be deposited in the
United States mail, postage prepaid, within five business days after
the consumer's written request for the disclosure is received by the
consumer credit reporting agency. Consumer credit reporting agencies
complying with requests for mailings under this section shall not be
liable for disclosures to third parties caused by mishandling of mail
after the mailings leave the consumer credit reporting agencies.
(3) A summary of all information contained in files on a consumer
and required to be provided by Section 1785.10 shall be provided by
telephone, if the consumer has made a written request, with proper
identification for telephone disclosure.
(4) Information in a consumer's file required to be provided in
writing under this section may also be disclosed in another form if
authorized by the consumer and if available from the consumer credit
reporting agency. For this purpose, a consumer may request disclosure
in person pursuant to Section 1785.10, by telephone upon disclosure
of proper identification by the consumer, by electronic means if
available from the consumer credit reporting agency, or by any other
reasonable means that is available from the consumer credit reporting
agency.
(c) "Proper identification," as used in subdivision (b) means that
information generally deemed sufficient to identify a person. Only
if the consumer is unable to reasonably identify himself or herself
with the information described above may a consumer credit reporting
agency require additional information concerning the consumer's
employment and personal or family history in order to verify his or
her identity.
(d) The consumer credit reporting agency shall provide trained
personnel to explain to the consumer any information furnished him or
her pursuant to Section 1785.10.
(e) The consumer shall be permitted to be accompanied by one other
person of his or her choosing, who shall furnish reasonable
identification. A consumer credit reporting agency may require the
consumer to furnish a written statement granting permission to the
consumer credit reporting agency to discuss the consumer's file in
that person's presence.
(f) Any written disclosure by a consumer credit reporting agency
to any consumer pursuant to this section shall include a written
summary of all rights the consumer has under this title and, in the
case of a consumer credit reporting agency that compiles and
maintains consumer credit reports on a nationwide basis, a toll-free
telephone number that the consumer can use to communicate with the
consumer credit reporting agency. The written summary of rights
required under this subdivision is sufficient if in substantially the
following form:
"You have a right to obtain a copy of your credit file from a
consumer credit reporting agency. You may be charged a reasonable fee
not exceeding eight dollars ($8). There is no fee, however, if you
have been turned down for credit, employment, insurance, or a rental
dwelling because of information in your credit report within the
preceding 60 days. The consumer credit reporting agency must provide
someone to help you interpret the information in your credit file.
You have a right to dispute inaccurate information by contacting
the consumer credit reporting agency directly. However, neither you
nor any credit repair company or credit service organization has the
right to have accurate, current, and verifiable information removed
from your credit report. Under the Federal Fair Credit Reporting Act,
the consumer credit reporting agency must remove accurate, negative
information from your report only if it is over seven years old.
Bankruptcy information can be reported for 10 years.
If you have notified a consumer credit reporting agency in writing
that you dispute the accuracy of information in your file, the
consumer credit reporting agency must then, within 30 business days,
reinvestigate and modify or remove inaccurate information. The
consumer credit reporting agency may not charge a fee for this
service. Any pertinent information and copies of all documents you
have concerning an error should be given to the consumer credit
reporting agency.
If reinvestigation does not resolve the dispute to your
satisfaction, you may send a brief statement to the consumer credit
reporting agency to keep in your file, explaining why you think the
record is inaccurate. The consumer credit reporting agency must
include your statement about disputed information in a report it
issues about you.
You have a right to receive a record of all inquiries relating to
a credit transaction initiated in 12 months preceding your request.
This record shall include the recipients of any consumer credit
report.
You may request in writing that the information contained in your
file not be provided to a third party for marketing purposes.
You have a right to place a "security alert" in your credit
report, which will warn anyone who receives information in your
credit report that your identity may have been used without your
consent. Recipients of your credit report are required to take
reasonable steps, including contacting you at the telephone number
you may provide with your security alert, to verify your identity
prior to lending money, extending credit, or completing the purchase,
lease, or rental of goods or services. The security alert may
prevent credit, loans, and services from being approved in your name
without your consent. However, you should be aware that taking
advantage of this right may delay or interfere with the timely
approval of any subsequent request or application you make regarding
a new loan, credit, mortgage, or cellular phone or other new account,
including an extension of credit at point of sale. If you place a
security alert on your credit report, you have a right to obtain a
free copy of your credit report at the time the 90-day security alert
period expires. A security alert may be requested by calling the
following toll-free telephone number: (Insert applicable toll-free
telephone number). California consumers also have the right to obtain
a "security freeze."
You have a right to place a "security freeze" on your credit
report, which will prohibit a consumer credit reporting agency from
releasing any information in your credit report without your express
authorization. A security freeze must be requested in writing by
mail. The security freeze is designed to prevent credit, loans, and
services from being approved in your name without your consent.
However, you should be aware that using a security freeze to take
control over who gets access to the personal and financial
information in your credit report may delay, interfere with, or
prohibit the timely approval of any subsequent request or application
you make regarding a new loan, credit, mortgage, or cellular phone
or other new account, including an extension of credit at point of
sale. When you place a security freeze on your credit report, you
will be provided a personal identification number or password to use
if you choose to remove the freeze on your credit report or authorize
the release of your credit report for a specific party or period of
time after the freeze is in place. To provide that authorization you
must contact the consumer credit reporting agency and provide all of
the following:
(1) The personal identification number or password.
(2) Proper identification to verify your identity.
(3) The proper information regarding the third party who is to
receive the credit report or the period of time for which the report
shall be available to users of the credit report.
A consumer credit reporting agency must authorize the release of
your credit report no later than three business days after receiving
the above information.
A security freeze does not apply when you have an existing account
and a copy of your report is requested by your existing creditor or
its agents or affiliates for certain types of account review,
collection, fraud control, or similar activities.
If you are actively seeking credit, you should understand that the
procedures involved in lifting a security freeze may slow your
application for credit. You should plan ahead and lift a freeze,
either completely if you are shopping around, or specifically for a
certain creditor, before applying for new credit.
A consumer credit reporting agency may not charge a fee to a
consumer for placing or removing a security freeze if the consumer is
a victim of identity theft and submits a copy of a valid police
report or valid Department of Motor Vehicles investigative report. A
person 65 years of age or older with proper identification may be
charged a fee of no more than $5 for placing, lifting, or removing a
security freeze. All other consumers may be charged a fee of no more
than $10 for each of these steps.
You have a right to bring civil action against anyone, including a
consumer credit reporting agency, who improperly obtains access to a
file, knowingly or willfully misuses file data, or fails to correct
inaccurate file data.
If you are a victim of identity theft and provide to a consumer
credit reporting agency a copy of a valid police report or a valid
investigative report made by a Department of Motor Vehicles
investigator with peace officer status describing your circumstances,
the following shall apply:
(1) You have a right to have any information you list on the
report as allegedly fraudulent promptly blocked so that the
information cannot be reported. The information will be unblocked
only if (A) the information you provide is a material
misrepresentation of the facts, (B) you agree that the information is
blocked in error, or (C) you knowingly obtained possession of goods,
services, or moneys as result of the blocked transactions. If
blocked information is unblocked, you will be promptly notified.
(2) Beginning July 1, 2003, you have a right to receive, free of
charge and upon request, one copy of your credit report each month
for up to 12 consecutive months."

1785.15.1. (a) Upon the consumer's request for a credit score, a
consumer credit reporting agency shall supply to a consumer a notice
which shall include the information described in paragraphs (1) to
(5), inclusive, and a statement indicating that the information and
credit scoring model may be different than the credit score that may
be used by the lender. However, if the consumer requests the credit
file and not the credit score, then the consumer shall receive the
credit file and a statement that he or she may request and obtain a
credit score.
(1) The consumer's current credit score or the consumer's most
recent credit score that was previously calculated by the credit
reporting agency for a purpose related to the extension of credit.
(2) The range of possible credit scores under the model used.
(3) All the key factors that adversely affected the consumer's
credit score in the model used, the total number of which shall not
exceed four.
(4) The date the credit score was created.
(5) The name of the person or entity that provided the credit
score or credit file upon which the credit score was created.
(b) For purposes of this act, "credit score" means a numerical
value or a categorization derived from a statistical tool or modeling
system used by a person who makes or arranges a loan to predict the
likelihood of certain credit behaviors, including default. The
numerical value or the categorization derived from this analysis may
also be referred to as a "risk predictor" or "risk score." "Credit
score" does not include any mortgage score or rating of an automated
underwriting system that considers one or more factors in addition to
credit information, including, but not limited to, the loan to value
ratio, the amount of down payment, or a consumer's financial assets.
"Credit score" does not include other elements of the underwriting
process or underwriting decision.
(c) For the purposes of this section, "key factors" means all
relevant elements or reasons adversely affecting the credit score for
the particular individual listed in the order of their importance
based on their effect on the credit score.
(d) The information required by this section shall be provided in
the same timeframe and manner as the information described in Section
1785.15.
(e) This section shall not be construed to compel a consumer
reporting agency to develop or disclose a score if the agency does
not (1) distribute scores that are used in connection with
residential real property loans, or (2) develop scores that assist
credit providers in understanding a consumer's general credit
behavior and predicting his or her future credit behavior.
(f) This section shall not be construed to require a consumer
credit reporting agency that distributes credit scores developed by
another person or entity to provide a further explanation of them, or
to process a dispute arising pursuant to subdivision (a) of Section
1785.16, except that the consumer credit reporting agency shall
provide the consumer with the name and address and website for
contacting the person or entity who developed the score or developed
the methodology of the score. This subdivision does not apply to a
consumer credit reporting agency that develops or modifies scores
that are developed by another person or entity.
(g) This section shall not be construed to require a consumer
reporting agency to maintain credit scores in its files.

1785.15.2. (a) In complying with Section 1785.15.1, a consumer
credit reporting agency shall supply the consumer with a credit score
that is derived from a credit scoring model that is widely
distributed to users by that consumer credit reporting agency in
connection with residential real property loans or with a credit
score that assists the consumer in understanding the credit scoring
assessment of his or her credit behavior and predictions about his or
her future credit behavior, and a statement indicating that the
information and credit scoring model may be different than that used
by the lender.
(b) A consumer credit reporting agency may charge a reasonable fee
for providing the information required under Section 1785.15.1.

1785.15.3. (a) In addition to any other rights the consumer may
have under this title, every consumer credit reporting agency, after
being contacted by telephone, mail, or in person by any consumer who
has reason to believe he or she may be a victim of identity theft,
shall promptly provide to that consumer a statement, written in a
clear and conspicuous manner, describing the statutory rights of
victims of identity theft under this title.
(b) Every consumer credit reporting agency shall, upon the receipt
from a victim of identity theft of a police report prepared pursuant
to Section 530.6 of the Penal Code, or a valid investigative report
made by a Department of Motor Vehicles investigator with peace
officer status regarding the public offenses described in Section
530.5 of the Penal Code, provide the victim, free of charge and upon
request, with up to 12 copies of his or her file during a consecutive
12-month period, not to exceed one copy per month, following the
date of the police report. Notwithstanding any other provision of
this title, the maximum number of free reports a victim of identity
theft is entitled to obtain under this title is 12 per year, as
provided by this subdivision.
(c) Subdivision (a) does not apply to a consumer reporting agency
that acts only as a reseller of credit information by assembling and
merging information contained in the database of another consumer
reporting agency or agencies and that does not maintain a permanent
database of credit information from which new credit reports are
produced.
(d) The provisions of this section shall become effective July 1,
2003.

1785.16. (a) If the completeness or accuracy of any item of
information contained in his or her file is disputed by a consumer,
and the dispute is conveyed directly to the consumer credit reporting
agency by the consumer or user on behalf of the consumer, the
consumer credit reporting agency shall within a reasonable period of
time and without charge, reinvestigate and record the current status
of the disputed information before the end of the 30-business-day
period beginning on the date the agency receives notice of the
dispute from the consumer or user, unless the consumer credit
reporting agency has reasonable grounds to believe and determines
that the dispute by the consumer is frivolous or irrelevant,
including by reason of a failure of the consumer to provide
sufficient information, as requested by the consumer credit reporting
agency, to investigate the dispute. Unless the consumer credit
reporting agency determines that the dispute is frivolous or
irrelevant, before the end of the five-business-day period beginning
on the date the consumer credit reporting agency receives notice of
dispute under this section, the agency shall notify any person who
provided information in dispute at the address and in the manner
specified by the person. A consumer credit reporting agency may
require that disputes by consumers be in writing.
(b) In conducting that reinvestigation the consumer credit
reporting agency shall review and consider all relevant information
submitted by the consumer with respect to the disputed item of
information. If the consumer credit reporting agency determines that
the dispute is frivolous or irrelevant, it shall notify the consumer
by mail or, if authorized by the consumer for that purpose, by any
other means available to the consumer credit reporting agency, within
five business days after that determination is made that it is
terminating its reinvestigation of the item of information. In this
notification, the consumer credit reporting agency shall state the
specific reasons why it has determined that the consumer's dispute is
frivolous or irrelevant. If the disputed item of information is
found to be inaccurate, missing, or can no longer be verified by the
evidence submitted, the consumer credit reporting agency shall
promptly add, correct, or delete that information from the consumer's
file.
(c) No information may be reinserted in a consumer's file after
having been deleted pursuant to this section unless the person who
furnished the information certifies that the information is accurate.
If any information deleted from a consumer's file is reinserted in
the file, the consumer credit reporting agency shall promptly notify
the consumer of the reinsertion in writing or, if authorized by the
consumer for that purpose, by any other means available to the
consumer credit reporting agency. As part of, or in addition to, this
notice the consumer credit reporting agency shall, within five
business days of reinserting the information, provide the consumer in
writing (1) a statement that the disputed information has been
reinserted, (2) a notice that the agency will provide to the
consumer, within 15 days following a request, the name, address, and
telephone number of any furnisher of information contacted or which
contacted the consumer credit reporting agency in connection with the
reinsertion, (3) the toll-free telephone number of the consumer
credit reporting agency that the consumer can use to obtain this
name, address, and telephone number, and (4) a notice that the
consumer has the right to a reinvestigation of the information
reinserted by the consumer credit reporting agency and to add a
statement to his or her file disputing the accuracy or completeness
of the information.
(d) A consumer credit reporting agency shall provide written
notice to the consumer of the results of any reinvestigation under
this subdivision, within five days of completion of the
reinvestigation. The notice shall include (1) a statement that the
reinvestigation is completed, (2) a consumer credit report that is
based on the consumer's file as that file is revised as a result of
the reinvestigation, (3) a description or indication of any changes
made in the consumer credit report as a result of those revisions to
the consumer's file and a description of any changes made or sought
by the consumer that were not made and an explanation why they were
not made, (4) a notice that, if requested by the consumer, a
description of the procedure used to determine the accuracy and
completeness of the information shall be provided to the consumer by
the consumer credit reporting agency, including the name, business
address, and telephone number of any furnisher of information
contacted in connection with that information, (5) a notice that the
consumer has the right to add a statement to the consumer's file
disputing the accuracy or completeness of the information, (6) a
notice that the consumer has the right to request that the consumer
credit reporting agency furnish notifications under subdivision (h),
(7) a notice that the dispute will remain on file with the agency as
long as the credit information is used, and (8) a statement about the
details of the dispute will be furnished to any recipient as long as
the credit information is retained in the agency's data base. A
consumer credit reporting agency shall provide the notice pursuant to
this subdivision respecting the procedure used to determine the
accuracy and completeness of information, not later than 15 days
after receiving a request from the consumer.
(e) The presence of information in the consumer's file that
contradicts the contention of the consumer shall not, in and of
itself, constitute reasonable grounds for believing the dispute is
frivolous or irrelevant.
(f) If the consumer credit reporting agency determines that the
dispute is frivolous or irrelevant, or if the reinvestigation does
not resolve the dispute, or if the information is reinserted into the
consumer's file pursuant to subdivision (c), the consumer may file a
brief statement setting forth the nature of the dispute. The
consumer credit reporting agency may limit these statements to not
more than 100 words if it provides the consumer with assistance in
writing a clear summary of the dispute.
(g) Whenever a statement of dispute is filed, the consumer credit
reporting agency shall, in any subsequent consumer credit report
containing the information in question, clearly note that the
information is disputed by the consumer and shall include in the
report either the consumer's statement or a clear and accurate
summary thereof.
(h) Following the deletion of information from a consumer's file
pursuant to this section, or following the filing of a statement of
dispute pursuant to subdivision (f), the consumer credit reporting
agency, at the request of the consumer, shall furnish notification
that the item of information has been deleted or that the item of
information is disputed. In the case of disputed information, the
notification shall include the statement or summary of the dispute
filed pursuant to subdivision (f). This notification shall be
furnished to any person designated by the consumer who has, within
two years prior to the deletion or the filing of the dispute,
received a consumer credit report concerning the consumer for
employment purposes, or who has, within 12 months of the deletion or
the filing of the dispute, received a consumer credit report
concerning the consumer for any other purpose, if these consumer
credit reports contained the deleted or disputed information. The
consumer credit reporting agency shall clearly and conspicuously
disclose to the consumer his or her rights to make a request for this
notification. The disclosure shall be made at or prior to the time
the information is deleted pursuant to this section or the consumer's
statement regarding the disputed information is received pursuant to
subdivision (f).
(i) A consumer credit reporting agency shall maintain reasonable
procedures to prevent the reappearance in a consumer's file and in
consumer credit reports of information that has been deleted pursuant
to this section and not reinserted pursuant to subdivision (c).
(j) If the consumer's dispute is resolved by deletion of the
disputed information within three business days, beginning with the
day the consumer credit reporting agency receives notice of the
dispute in accordance with subdivision (a), and provided that
verification thereof is provided to the consumer in writing within
five business days following the deletion, then the consumer credit
reporting agency shall be exempt from requirements for further action
under subdivisions (d), (f), and (g).
(k) If a consumer submits to a credit reporting agency a copy of a
valid police report, or a valid investigative report made by a
Department of Motor Vehicles investigator with peace officer status,
filed pursuant to Section 530.5 of the Penal Code, the consumer
credit reporting agency shall promptly and permanently block
reporting any information that the consumer alleges appears on his or
her credit report as a result of a violation of Section 530.5 of the
Penal Code so that the information cannot be reported. The consumer
credit reporting agency shall promptly notify the furnisher of the
information that the information has been so blocked. Furnishers of
information and consumer credit reporting agencies shall ensure that
information is unblocked only upon a preponderance of the evidence
establishing the facts required under paragraph (1), (2), or (3). The
permanently blocked information shall be unblocked only if: (1) the
information was blocked due to a material misrepresentation of fact
by the consumer or fraud, or (2) the consumer agrees that the blocked
information, or portions of the blocked information, were blocked in
error, or (3) the consumer knowingly obtained possession of goods,
services, or moneys as a result of the blocked transaction or
transactions or the consumer should have known that he or she
obtained possession of goods, services, or moneys as a result of the
blocked transaction or transactions. If blocked information is
unblocked pursuant to this subdivision, the consumer shall be
promptly notified in the same manner as consumers are notified of the
reinsertion of information pursuant to subdivision (c). The prior
presence of the blocked information in the consumer credit reporting
agency's file on the consumer is not evidence of whether the consumer
knew or should have known that he or she obtained possession of any
goods, services, or moneys. For the purposes of this subdivision,
fraud may be demonstrated by circumstantial evidence. In unblocking
information pursuant to this subdivision, furnishers and consumer
credit reporting agencies shall be subject to their respective
requirements pursuant to this title regarding the completeness and
accuracy of information.
(l) In unblocking information as described in subdivision (k), a
consumer reporting agency shall comply with all requirements of this
section and 15 U.S.C. Sec. 1681i relating to reinvestigating disputed
information. In addition, a consumer reporting agency shall accept
the consumer's version of the disputed information and correct or
delete the disputed item when the consumer submits to the consumer
reporting agency documentation obtained from the source of the item
in dispute or from public records confirming that the report was
inaccurate or incomplete, unless the consumer reporting agency, in
the exercise of good faith and reasonable judgment, has substantial
reason based on specific, verifiable facts to doubt the authenticity
of the documentation submitted and notifies the consumer in writing
of that decision, explaining its reasons for unblocking the
information and setting forth the specific, verifiable facts on which
the decision was based.
(m) Any provision in a contract that prohibits the disclosure of a
credit score by a person who makes or arranges loans or a consumer
credit reporting agency is void. A lender s