Sec. 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, at 31 U.S.C. 3701(a)(3) or the Fair Credit 
Reporting Act, at 15 U.S.C. 168a(f).
    (b) The Commission may disclose to a consumer reporting agency, from 
a system of records, information that an individual is responsible for a 
claim if--
    (1) Notice required by section 5 U.S.C. 552a(e)(4) indicates that 
information in the system may be disclosed to a consumer reporting 
agency;
    (2) The claim has been reviewed and it is decided that the claim is 
valid and overdue;
    (3) The Commission has notified the individual in writing--
    (i) That payment of the claim is overdue;
    (ii) That, within not less than 60 days after sending the notice, 
the Commission intends to disclose to a consumer reporting agency that 
the individual is responsible for that claim;
    (iii) Of the specific information to be disclosed to the consumer 
reporting agency; and
    (iv) Of the rights the individual has to a complete explanation of 
the claim, to dispute information in the records of the agency about the 
claim, and to adminstrative appeal or review of the claim; and
    (4) The individual has not--
    (i) Repaid or agreed to repay the claim under a written repayment 
plan that the individual has signed and the agency has agreed to; or
    (ii) Filed for review of the claim under paragraph (g) of this 
section;
    (c) The Commission shall--
    (1) Disclose promptly, 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 satisfactory 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) Before disclosing information to a consumer reporting agency, 
the Commission shall take reasonable action to locate an individual for 
whom the head of the agency does not have a current address to send the 
notice.
    (g) Before disclosing information to a consumer reporting agency, 
the Commission shall provide, on request of an individual alleged by the 
agency to be responsible for the claim, for a review of the obligation 
of the individual, including an opportunity for reconsideration of the 
initial decision on the claim.

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    (h) Under the same provisions as described above, 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.