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, 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.