1785.20.  (a) If any person takes any adverse action with respect to
any consumer, and the adverse action is based, in whole or in part,
on any information contained in a consumer credit report, that person
shall do all of the following:
   (1) Provide written notice of the adverse action to the consumer.

   (2) Provide the consumer with the name, address, and telephone
number of the consumer credit reporting agency which furnished the
report to the person.
   (3) Provide a statement that the credit grantor's decision to take
adverse action was based in whole or in part upon information
contained in a consumer credit report.
   (4) Provide the consumer with a written notice of the following
rights of the consumer:
   (A) The right of the consumer to obtain within 60 days a free copy
of the consumer's consumer credit report from the consumer credit
reporting agency identified pursuant to paragraph (2) and from any
other consumer credit reporting agency which compiles and maintains
files on consumers on a nationwide basis.
   (B) The right of the consumer under Section 1785.16 to dispute the
accuracy or completeness of any information in a consumer credit
report furnished by the consumer credit reporting agency.
   (b) Whenever credit or insurance for personal, family, or
household purposes involving a consumer is denied or the charge for
such credit is increased either wholly or in part because of
information obtained from a person other than a consumer credit
reporting agency bearing upon consumer's credit worthiness or credit
standing, the user of that information shall, within a reasonable
period of time, and upon the consumer's written request for the
reasons for that adverse action received within 60 days after
learning of the adverse action, disclose the nature and substance of
the information to the consumer.  The user of the information shall
clearly and accurately disclose to the consumer his or her right to
make such a written request at the time the adverse action is
communicated to the consumer.
   (c) No person shall be held liable for any violation of this
section if he or she shows by a preponderance of the evidence that at
the time of the alleged violation he or she maintained reasonable
procedures to assure compliance with this section.
   (d) Nothing in this chapter shall excuse compliance with the
requirements of Section 1787.2.



1785.20.1.  (a) Except as provided in subdivision (b), any person
who uses a consumer credit report in connection with any credit
transaction not initiated by the consumer and which consists of a
firm offer of credit shall provide with any solicitation made to the
consumer a clear and conspicuous statement as to all of the
following:
   (1) Information contained in the consumer's prequalifying report
was used in connection with the transaction.
   (2) The consumer received the offer of credit, because the
consumer satisfied the criteria for creditworthiness under which the
consumer was selected for the offer.
   (3) Where applicable, the credit may not be extended if, after the
consumer responds to the offer, the consumer does not meet the
criteria used to select the consumer for the offer.
   (4) The consumer has a right to prohibit use of information
contained in the consumer's file with any consumer credit reporting
agency in connection with any credit transaction that is not
initiated by the consumer.  The consumer may exercise this right by
notifying the notification system or joint notification system
established under subdivision (d) or (e) of Section 1785.11.
   (b) Subdivision (a) does not apply to any person using a
prequalifying report if all of the following conditions are met:
   (1) The person using the prequalifying report is affiliated by
common ownership or common corporate control with the person who
procured the report.
   (2) The person who procures the prequalifying report from the
consumer credit reporting agency clearly and conspicuously discloses
to the consumer to whom the report relates, before the prequalifying
report is provided to the person who uses the report, that the
prequalifying report might be provided to, and used by, persons
affiliated in the manner specified in paragraph (1) with the person
that procured the report.
   (3) The consumer consents in writing to this provision and use of
the prequalifying report.
   (c) No person shall be denied credit on the basis of the consumer'
s refusal to provide consent pursuant to paragraph (3) of subdivision
(b), unless that consent is necessary for the extension of credit,
related to that transaction, by an affiliate.



1785.20.5.  (a)  Prior to requesting a consumer credit report for
employment purposes, the user of the report shall provide written
notice to the person involved.  The notice shall inform the person
that a report will be used and the source of the report, and shall
contain a box that the person may check off to receive a copy of the
credit report.  If the consumer indicates that he or she wishes to
receive a copy of the report, the user shall request that a copy be
provided to the person when the user requests its copy from the
credit reporting agency.  The report to the user and to the subject
person shall be provided contemporaneously and at no charge to the
subject person.
   (b) Whenever employment involving a consumer is denied either
wholly or partly because of information contained in a consumer
credit report from a consumer credit reporting agency, the user of
the consumer credit report shall so advise the consumer against whom
the adverse action has been taken and supply the name and address or
addresses of the consumer credit reporting agency making the report.
No person shall be held liable for any violation of this section if
he or she shows by a preponderance of the evidence that, at the time
of the alleged violation, he or she maintained reasonable procedures
to assure compliance with this section.



1785.21.  (a) A user in its discretion may notify the consumer that
upon request the user may contact the consumer reporting agency and
request that the consumer reporting agency investigate the current
status of an item or items of information contained in the consumer
report if the consumer disputes the completeness or accuracy of an
item or items of information as provided to the user.
   (b) The consumer credit reporting agency may require
identification from the user to insure the validity of the request
and, in that regard, may require that the request be put in writing
with proper identification.
   (c) In the event that any such request is made and identification
given in the form or manner demanded by the consumer credit reporting
agency, such agency shall review the file of the consumer and report
the current status of the disputed information to the user and the
consumer by the most expeditious means possible.
   (d) No user who furnishes information pursuant to this section
shall be liable to any person for furnishing such information.



1785.22.  (a) A person may not procure a consumer credit report for
the purpose of reselling the report or any information therein unless
the person discloses to the consumer credit reporting agency which
issues the report the identity of the ultimate end user and each
permissible purpose for which the report is furnished to the end user
of the consumer credit report or information therein.
   (b) A person that procures a consumer credit report for the
purpose of reselling the report or any information therein shall do
all of the following:
   (1) Establish and comply with reasonable procedures designed to
ensure that the consumer credit report or information is resold by
the person only for a purpose for which the report may be furnished
under this title.  These procedures shall include all of the
following:
   (A) Identification of each prospective user of the resold consumer
credit report or information.
   (B) Certification of each purpose for which the consumer credit
report or information will be used.
   (C) Certification that the consumer credit report or information
will be used for no other purpose.
   (2) Before reselling the consumer credit report or information,
the person shall make reasonable efforts to verify the identities and
certifications made under paragraph (1).