10 §1313-A. Permissible purposes of credit reports - Maine Statutes

Title 10: COMMERCE AND TRADE

Part 3: REGULATION OF TRADE

Chapter 210: FAIR CREDIT REPORTING ACT

§1313-A. Permissible purposes of credit reports

1. Permissible purposes of credit reports. Subject to subsection 3, a consumer reporting agency may furnish a consumer report under the following circumstances only:

A. In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a grand jury; [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §6 (NEW).]

B. In accordance with the written instructions of the consumer to whom the consumer report relates; [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §6 (NEW).]

C. To a person that the consumer reporting agency has reason to believe:

(1) 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;

(2) Intends to use the information for employment purposes;

(3) Intends to use the information in connection with the underwriting of insurance involving the consumer;

(4) 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;

(5) Intends to use the information, as a potential investor or service or as a current insurer, in connection with a valuation of or an assessment of the credit or prepayment risks associated with an existing credit obligation; or

(6) Otherwise has a legitimate business need for the information:

(a) In connection with a business transaction that is initiated by the consumer; or

(b) To review an account to determine whether the consumer continues to meet the terms of the account; or [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §6 (NEW).]

D. To the administrator pursuant to section 1328. [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §6 (NEW).]

[ 1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §6 (NEW) .]

2. Conditions for furnishing and using consumer reports for employment purposes. This subsection applies to the furnishing and use of a consumer report for employment purposes.

A. A consumer reporting agency may furnish a consumer report for employment purposes only if:

(1) The person who obtains the report from the agency certifies to the agency that:

(a) The person has complied with paragraph B with respect to the consumer report, and the person will comply with section 1320 with respect to the consumer report if section 1320 becomes applicable; and

(b) Information from the consumer report will not be used in violation of any applicable federal or state equal employment opportunity law or regulation; and

(2) The consumer reporting agency provides with the report, or has previously provided, a summary of the consumer's rights as prescribed by the Federal Trade Commission under 15 United States Code, Section 1681g(c)(3). [2001, c. 371, §7 (AMD).]

B. Except as provided in paragraph B-1, a person may not procure a consumer report or cause a consumer report to be procured for employment purposes with respect to any consumer, unless:

(1) A clear and conspicuous disclosure has been made in writing to the consumer before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes; and

(2) The consumer has authorized in writing the procurement of the report by that person. [2001, c. 371, §7 (AMD).]

B-1. A person who procures a consumer report on a consumer described in paragraph B-2, subparagraph (1) for employment purposes shall provide to the consumer, by oral, written or electronic means, notice that a consumer report may be obtained for employment purposes and a summary of the consumer's rights under section 1320, subsection 1-B, paragraph C:

(1) When the consumer applies for employment by mail; and

(2) When the consumer has consented, orally, in writing or electronically, to the procurement of the report by that person. [2001, c. 371, §8 (NEW).]

B-2. Paragraph B-1 applies to a person procuring a consumer report on a consumer in connection with the consumer's application for employment only if:

(1) The consumer is applying for a position over which the federal Secretary of Transportation has the power to establish qualifications and maximum hours of service pursuant to the provisions of 49 United States Code, Section 31502 or a position subject to safety regulation by a state transportation agency; and

(2) As of the time at which the person procures the consumer report or causes the report to be procured, the only interaction between the consumer and the person in connection with that employment application has been by mail, telephone, computer or other similar means. [2001, c. 371, §8 (NEW).]

C. Except as provided in paragraph C-1, in using a consumer report for employment purposes, before taking any adverse action based in whole or in part on the report, the person intending to take the adverse action shall provide to the consumer to whom the report relates:

(1) A copy of the report; and

(2) A description in writing of the rights of the consumer as prescribed by the Federal Trade Commission under 15 United States Code, Section 1681g(c)(3). [2001, c. 371, §9 (AMD).]

C-1. If a consumer described in paragraph C-2 applies for employment by mail, telephone, computer or other similar means and if a person who has procured a consumer report on the consumer for employment purposes takes adverse action on the employment application based in whole or in part on the report, then the person shall provide to the consumer to whom the report relates, in lieu of the notices required under paragraph B, subparagraph (1) and under section 1320, within 3 business days of taking such action, an oral, written or electronic notification:

(1) That adverse action has been taken based in whole or in part on a consumer report received from a consumer reporting agency;

(2) Of the name, address and telephone number of the consumer reporting agency that furnished the consumer report, including a toll-free telephone number established by the agency if the agency compiles and maintains files on consumers on a nationwide basis;

(3) That the consumer reporting agency did not make the decision to take the adverse action and is unable to provide to the consumer the specific reasons why the adverse action was taken; and

(4) That the consumer may, upon providing proper identification, request a free copy of a consumer report and may dispute with the consumer reporting agency the accuracy or completeness of any information in a report.

If, under subparagraph (4), the consumer requests a copy of a consumer report from the person who procured the report, then, within 3 business days of receiving the consumer's request together with proper identification, the person shall send or provide to the consumer a copy of a report and a summary of the consumer's rights as prescribed by the Federal Trade Commission under 15 United States Code, Section 1681g(c)(3). [2001, c. 371, §10 (NEW).]

C-2. Paragraph C-1 applies to a person procuring a consumer report on a consumer in connection with the consumer's application for employment only if:

(1) The consumer is applying for a position over which the federal Secretary of Transportation has the power to establish qualifications and maximum hours of service pursuant to the provisions of 49 United States Code, Section 31502 or a position subject to safety regulation by a state transportation agency; and

(2) As of the time at which the person procures the consumer report or causes the report to be procured, the only interaction between the consumer and the person in connection with that employment application has been by mail, telephone, computer or other similar means. [2001, c. 371, §10 (NEW).]

[ 2001, c. 371, §§7-10 (AMD) .]

3. Furnishing consumer reports in connection with credit or insurance transactions that are not initiated by the consumer. The furnishing of a consumer report in connection with a credit or insurance transaction that is not initiated by the consumer must be in accordance with this subsection.

A. A consumer reporting agency may furnish a consumer report relating to any consumer pursuant to subsection 1, paragraph C, subparagraph (1) or (3) in connection with any credit or insurance transaction that is not initiated by the consumer only if:

(1) The consumer authorizes the agency to provide the report to the person requesting the report; or

(2) The transaction consists of a firm offer of credit or insurance; the consumer reporting agency has complied with Section 604(e) of the federal Fair Credit Reporting Act; and there is not in effect an election by the consumer, made in accordance with Section 604(e) of the federal Fair Credit Reporting Act, to have the consumer's name and address excluded from lists of names provided by the agency pursuant to this paragraph. [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §6 (NEW).]

B. A person may receive pursuant to paragraph A, subparagraph (2) only:

(1) The name and address of a consumer;

(2) An identifier that is not unique to the consumer and that is used by the person solely for the purpose of verifying the identity of the consumer; and

(3) Other information pertaining to a consumer that does not identify the relationship or experience of the consumer with respect to a particular creditor or other entity. [1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §6 (NEW).]

[ 1997, c. 155, Pt. B, §13 (AFF); 1997, c. 155, Pt. B, §6 (NEW) .]

4. Information regarding inquiries. Except as provided in section 1315, a consumer reporting agency may not furnish to any person a record of inquiries in connection with a credit or insurance transaction that are not initiated by a consumer.

[ 2001, c. 371, §11 (NEW) .]

5. Election of consumer to be excluded from lists. A consumer may elect to have the consumer's name and address excluded from any list provided by a consumer reporting agency under subsection 3 in connection with a credit or insurance transaction that is not initiated by the consumer by notifying the agency in accordance with paragraph A that the consumer does not consent to any use of a consumer report relating to the consumer in connection with any credit or insurance transaction that is not initiated by the consumer.

A. A consumer shall notify a consumer reporting agency:

(1) Through the notification system maintained by the agency under paragraph D; or

(2) By submitting to the agency a signed notice of election form issued by the agency for purposes of this subparagraph. [2001, c. 371, §11 (NEW).]

B. Upon receipt of notification of the election by a consumer through the notification system maintained by a consumer reporting agency under paragraph D, the agency shall:

(1) Inform the consumer that the election is effective only for the 2-year period following the election if the consumer does not submit to the agency a signed notice of election form issued by the agency for purposes of paragraph A, subparagraph (2); and

(2) Provide to the consumer a notice of election form, if requested by the consumer, not later than 5 business days after receipt of the notification of the election through the notification system established under paragraph D. [2001, c. 371, §11 (NEW).]

C. An election by a consumer under this subsection:

(1) Is effective with respect to a consumer reporting agency beginning 5 business days after the date on which the consumer notifies the agency in accordance with paragraph A;

(2) Is effective with respect to a consumer reporting agency:

(a) Subject to subparagraph (3), during the 2-year period beginning 5 business days after the date on which the consumer notifies the agency of the election, in the case of an election for which a consumer notifies the agency only in accordance with paragraph A, subparagraph (1); or

(b) Until the consumer notifies the agency under subparagraph (3), in the case of an election for which a consumer notifies the agency in accordance with paragraph A, subparagraph (2);

(3) Is not effective after the date on which the consumer notifies the agency, through the notification system established by the agency under paragraph D, that the election is no longer effective; and

(4) Is effective with respect to each affiliate of the agency. [2001, c. 371, §11 (NEW).]

D. A consumer reporting agency shall establish a notification system.

(1) Each consumer reporting agency that, under subsection 3, furnishes a consumer report in connection with a credit or insurance transaction that is not initiated by a consumer shall:

(a) Establish and maintain a notification system, including a toll-free telephone number, that permits any consumer whose consumer report is maintained by the agency to notify the agency, with appropriate identification, of the consumer's election to have the consumer's name and address excluded from a list of names and addresses provided by the agency for such a transaction; and

(b) Publish not less than annually, in a publication of general circulation in the area served by the agency:

(i) A notification that information in consumer files maintained by the agency may be used in connection with such transactions; and

(ii) The address and toll-free telephone number for consumers to use to notify the agency of the consumer's election under this subsection.

(2) An affiliate of a consumer reporting agency that establishes and maintains a notification system, including a toll-free telephone number, and publishes information under subparagraph (b) on the agency's own behalf and on behalf of any of its affiliates in accordance with this paragraph is considered to be in compliance with this paragraph. [2001, c. 371, §11 (NEW).]

E. Each consumer reporting agency that compiles and maintains files on consumers on a nationwide basis shall establish and maintain a notification system for purposes of paragraph D jointly with other such consumer reporting agencies. [2001, c. 371, §11 (NEW).]

[ 2001, c. 371, §11 (NEW) .]

6. Certain use or obtaining of information prohibited. A person may not use or obtain a consumer report for any purpose unless:

A. The consumer report is to be obtained for a purpose for which the consumer report is authorized to be furnished under this section; and [2001, c. 371, §11 (NEW).]

B. The purpose is certified in accordance with section 1321 by a prospective user of the report through a general or specific certification. [2001, c. 371, §11 (NEW).]

[ 2001, c. 371, §11 (NEW) .]

7. Furnishing reports containing medical information. A consumer reporting agency may not furnish for employment purposes or in connection with a credit or insurance transaction or a direct marketing transaction a consumer report that contains medical information about a consumer unless the consumer consents in writing to the furnishing of the report.

[ 2001, c. 371, §11 (NEW) .]

SECTION HISTORY

1997, c. 155, §B13 (AFF). 1997, c. 155, §B6 (NEW). 2001, c. 371, §§7-11 (AMD).