Page:United States Statutes at Large Volume 100 Part 1.djvu/387

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 351

subsequent holder (A) shall not disclose any such information until the Secretary, guaranty agency, eligible lender, or subsequent holder has notified the borrower that such information will be disclosed to credit bureau organizations unless the borrower enters into repayment of the loan, but (B) shall, if the borrower has not entered into repayment within a reasonable period of time, but not less than thirty days, from the date such notice has been sent to the borrower, disclose the information required by this subsection. "(d) A guaranty agency, eligible lender, subsequent holder, or credit bureau organization which discloses or receives information under this section shall not be considered a Government contractor within the meaning of section 552a of title 5 of the United States Code (the Privacy Act of 1974). "(e) The Secretary and each guaranty agency, eligible lender, and subsequent holder is authorized to disclose information described in subsections (a) and (b) concerning student borrowers to the eligible institutions such borrowers attend or previously attended. "(f) Notwithstanding paragraphs (4) and (6) of subsection (a) of Reports, section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)(4), (a)(6)), a consumer reporting agency may make a report containing information received from the Secretary, or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower's account on a loan insured or guaranteed under this part until the later of— "(1) seven years from the date on which the agency paid a claim to the holder on insurance or the guaranty, or "(2) seven years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to a consumer reporting agency.". SEC. 16024. CIVIL PENALTIES.

Section 432 of the Act is further amended by adding at the end 20 USC 1082. thereof the following new subsection: "(f)(1) Upon determination, after reasonable notice and opportunity for a hearing on the record, that a lender or a guaranty agency— "(A) has violated or failed to carry out any provision of this part or any regulation prescribed under this part, or "(B) has engaged in substantial misrepresentation of the nature of its financial charges, the Secretary may impose a civil penalty upon such lender or agency of not to exceed $15,000 for each violation, failure, or misrepresentation. "(2) No civil penalty may be imposed under paragraph (1) of this subsection unless it is determined that— "(A) the violation, failure or substantial misrepresentation referred to in that paragraph resulted from— "(i) a clear and consistent pattern or practice of violations, failures, or substantial misrepresentations in which the lender or guaranty agency did not maintain procedures reasonably adapted to avoid the violation, failure, or substantial representation; "(ii) gross negligence; or "(iii) willful actions on the part of the lender or guaranty agency; and

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