§ 1.1918   Use of consumer reporting agencies.

   (a) The term individual means a natural person, and the term consumer
   reporting agency has the meaning provided in the Federal Claims
   Collection Act, as amended, 31 U.S.C. 3701(a)(3) or the Fair Credit
   Reporting Act, 15 U.S.C. 168a(f).

   (b) The Commission may disclose to a consumer reporting agency, or
   provide information to the Treasury who may disclose to a consumer
   reporting agency from a system of records, information that an
   individual is responsible for a claim. System information includes, for
   example, name, taxpayer identification number, business and home
   address, business and home telephone numbers, the amount of the debt,
   the amount of unpaid principle, the late period, and the payment
   history. Before the Commission reports the information, it will:

   (1) Provide notice required by section 5 U.S.C. 552a(e)(4) that
   information in the system may be disclosed to a consumer reporting
   agency;

   (2) Review the claim to determine that it is valid and overdue;

   (3) Make reasonable efforts using information provided by the debtor in
   Commission files to notify the debtor, unless otherwise specified under
   the terms of a contract or agreement—

   (i) That payment of the claim is overdue;

   (ii) That, within not less than 60 days from the date of the notice,
   the Commission intends to disclose to a consumer reporting agency that
   the individual is responsible for that claim;

   (iii) That information in the system of records may be disclosed to the
   consumer reporting agency; and

   (iv) That unless otherwise specified and agreed to in an agreement,
   contract, or by the terms of a note and/or security agreement, or that
   the debt arises from the nonpayment of a Commission fee, penalty, or
   other statutory or regulatory obligations, the individual will be
   provided with an explanation of the claim, and, as appropriate,
   procedures to dispute information in the records of the agency about
   the claim, and to administrative appeal or review of the claim; and

   (4) Review Commission records to determine that the individual has not—

   (i) Repaid or agreed to repay the claim under a written repayment plan
   agreed to and signed by both the individual and the Commission's
   representative; or, if eligible; and

   (ii) Filed for review of the claim under paragraph (g) of this section;

   (c) The Commission shall: (1) Disclose to each consumer reporting
   agency to which the original disclosure was made a substantial change
   in the condition or amount of the claim;

   (2) Verify or correct promptly information about the claim, on request
   of a consumer reporting agency for verification of any or all
   information so disclosed; and

   (3) Obtain assurances from each consumer reporting agency that they are
   complying with all laws of the United States relating to providing
   consumer credit information.

   (d) The Commission shall ensure that information disclosed to the
   consumer reporting agency is limited to—

   (1) Information necessary to establish the identity of the individual,
   including name, address, and taxpayer identification number;

   (2) The amount, status, and history of the claim; and

   (3) The agency or program under which the claim arose.

   (e) All accounts in excess of $100 that have been delinquent more than
   31 days will normally be referred to a consumer reporting agency.

   (f) Under the same provisions as described in paragraph (b) of this
   section, the Commission may disclose to a credit reporting agency,
   information relating to a debtor other than a natural person. Such
   commercial debt accounts are not covered by the Privacy Act. Moreover,
   commercial debt accounts are subject to the Commission's rules
   concerning debt obligation, including part 1 rules related to auction
   debt, and the agreements of the parties.

   return arrow Back to Top