[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 709 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 709

    To amend the Fair Credit Reporting Act, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                April 6 (legislative day, April 5), 1995

  Mr. Bond (for himself and Mr. Bryan) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
    To amend the Fair Credit Reporting Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Table of contents.
            TITLE I--AMENDMENTS TO FAIR CREDIT REPORTING ACT

Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Furnishing consumer reports; use for employment purposes.
Sec. 104. Use of consumer reports for prescreening and direct 
                            marketing; prohibition on unauthorized or 
                            uncertified use of information.
Sec. 105. Consumer consent required to furnish consumer report 
                            containing medical information; furnishing 
                            consumer reports for commercial 
                            transactions.
Sec. 106. Obsolete information and information contained in consumer 
                            reports.
Sec. 107. Compliance procedures.
Sec. 108. Consumer disclosures.
Sec. 109. Procedures in case of the disputed accuracy of any 
                            information in a consumer's file.
Sec. 110. Charges for certain disclosures.
Sec. 111. Duties of users of consumer reports.
Sec. 112. Civil liability.
Sec. 113. Responsibilities of persons who furnish information to 
                            consumer reporting agencies.
Sec. 114. Investigative consumer reports.
Sec. 115. Increased criminal penalties for obtaining information under 
                            false pretenses.
Sec. 116. Administrative enforcement.
Sec. 117. State enforcement of Fair Credit Reporting Act.
Sec. 118. Federal Reserve Board authority.
Sec. 119. Preemption of State law.
Sec. 120. Action by FTC and Federal Reserve Board.
Sec. 121. Amendment to Fair Debt Collection Practices Act.
Sec. 122. Furnishing consumer reports for certain purposes relating to 
                            child support.
Sec. 123. Disclosure of information and consumer reports to FBI for 
                            counterintelligence purposes.
Sec. 124. Effective dates.
Sec. 125. Relationship to other law.
Sec. 126. Technical correction to Depository Institutions Management 
                            Interlocks Act.
                 TITLE II--CREDIT REPAIR ORGANIZATIONS

Sec. 201. Regulation of credit repair organizations.
                    TITLE III--TRUTH IN LENDING ACT

Sec. 301. Treatment of delivery fees and intangibles taxes.
Sec. 302. Limitations on liability.

            TITLE I--AMENDMENTS TO FAIR CREDIT REPORTING ACT

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Consumer Reporting Reform Act of 
1995''.

SEC. 102. DEFINITIONS.

    (a) Adverse Action.--Section 603 of the Fair Credit Reporting Act 
(15 U.S.C. 1681a) is amended by adding at the end the following:
    ``(k) Adverse Action.--
            ``(1) Actions included.--The term `adverse action' means 
        the following:
                    ``(A) A denial or revocation of credit, a denial of 
                an application for an increase of an existing credit 
                limit, an unfavorable change in the terms of an 
                existing credit arrangement, or a refusal to grant 
                credit in substantially the amount or on substantially 
                the terms requested, except that the term `adverse 
                action' does not include--
                            ``(i) a refusal to extend additional credit 
                        under an existing credit arrangement if the 
                        applicant is delinquent or otherwise in default 
                        as to that account; or
                            ``(ii) a refusal or failure to authorize an 
                        account transaction at a point of sale that 
                        would exceed a previously established credit 
                        limit.
                    ``(B) A denial or cancellation of, an increase in 
                any charge for, or a reduction or other adverse or 
                unfavorable change in the terms of coverage or amount 
                of, any insurance, existing or applied for, in 
                connection with the underwriting of insurance.
                    ``(C) A denial of employment or any other decision 
                for employment purposes that adversely affects any 
                current or prospective employee.
                    ``(D) A denial or cancellation of, an increase in 
                any charge for, or any other adverse or unfavorable 
                change in the terms of, any license or benefit 
                described in section 604(a)(3)(D).
                    ``(E) An action taken or determination made--
                            ``(i) in connection with an application 
                        that was made by, or a transaction that was 
                        initiated by, any consumer, or in connection 
                        with a review of account information under 
                        section 604(a)(3)(E)(ii); and
                            ``(ii) that is adverse to the interest of 
                        the consumer.
            ``(2) Applicable findings, decisions, commentary, and 
        orders.--For purposes of any determination of whether an action 
        is an adverse action under paragraph (1)(A), all appropriate 
        final findings, decisions, commentary, and orders issued under 
        section 701(d)(6) of the Equal Credit Opportunity Act by the 
        Board of Governors of the Federal Reserve System or any court 
        shall apply.''.
    (b) Firm Offer of Credit or Insurance.--Section 603 of the Fair 
Credit Reporting Act (15 U.S.C. 1681a) is amended by adding after 
subsection (k) (as added by subsection (a)) the following:
    ``(l) Firm Offer of Credit or Insurance.--The term `firm offer of 
credit or insurance' means any offer of credit or insurance to a 
consumer that will be honored if the consumer is determined, based on 
information in a consumer report on the consumer, to meet the specific 
criteria used to select the consumer for the offer, except that the 
offer may be further conditioned on any combination of the following:
            ``(1) The consumer being determined, based on information 
        in the consumer's application for the credit or insurance, to 
        meet specific criteria bearing on creditworthiness that are 
        established--
                    ``(A) before selection of the consumer for the 
                offer; and
                    ``(B) for the purpose of determining whether to 
                extend credit or insurance pursuant to the offer.
            ``(2) Verification--
                    ``(A) that the consumer continues to meet the 
                specific criteria used to select the consumer for the 
                offer, by using information in a consumer report on the 
                consumer, information in the consumer's application for 
                the credit or insurance, or other information bearing 
                on the creditworthiness of the consumer; or
                    ``(B) of the information in the consumer's 
                application for the credit or insurance, to determine 
                that the consumer meets the specific criteria bearing 
                on creditworthiness.
            ``(3) The consumer furnishing any collateral that is a 
        requirement for the extension of the credit or insurance that 
        was--
                    ``(A) established before selection of the consumer 
                for the offer of credit or insurance; and
                    ``(B) disclosed to the consumer in the offer of 
                credit or insurance.''.
    (c) Credit or Insurance Transaction That Is Not Initiated by the 
Consumer.--Section 603 of the Fair Credit Reporting Act (15 U.S.C. 
1681a) is amended by adding after subsection (l) (as added by 
subsection (b)) the following:
    ``(m) Credit or Insurance Transaction That Is Not Initiated by the 
Consumer.--The term `credit or insurance transaction that is not 
initiated by the consumer' does not include the use of a consumer 
report by a person with which the consumer has an account, for purposes 
of--
            ``(1) reviewing the account; or
            ``(2) collecting the account.''.
    (d) State.--Section 603 of the Fair Credit Reporting Act (15 U.S.C. 
1681a) is amended by adding after subsection (m) (as added by 
subsection (c)) the following:
    ``(n) State.--The term `State' means any State, the Commonwealth of 
Puerto Rico, the District of Columbia, and any territory or possession 
of the United States.''.
    (e) Exclusions From Definition of Consumer Report.--Section 603(d) 
of the Fair Credit Reporting Act (15 U.S.C. 1681a(d)) is amended in the 
second sentence, in subparagraph (A)--
            (1) by inserting ``(i)'' after ``(A)'';
            (2) by inserting before the semicolon at the end the 
        following: ``, (ii) any communication of that information among 
        persons related by common ownership or affiliated by corporate 
        control, or (iii) any communication of information from an 
        application by a consumer among persons related by common 
        ownership or affiliated by corporate control if it is clearly 
        and conspicuously disclosed that the information may be 
        communicated among such persons and the consumer is given the 
        opportunity, prior to the time that the information is 
        initially communicated, to direct that such information not be 
        communicated among such persons'';
            (3) in subparagraph (B), by striking ``or'' after the 
        semicolon at the end;
            (4) in subparagraph (C), by striking the period and 
        inserting a semicolon; and
            (5) by adding at the end the following: ``or (D) any 
        communication of information about a consumer among persons who 
        are affiliated by common ownership or common corporate control 
        if one or more of those persons has complied with section 
        615(d)(4)(B) or section 615(e)(3)(B) with respect to a consumer 
        report from which the information is taken and the consumer has 
        not directed in writing that the report may not be communicated 
        among such persons, in accordance with section 615(d)(4)(C) or 
        section 615(e)(3)(B).''.
    (f) Exclusion of Certain Communications by Employment Agencies From 
Definition of Consumer Report.--Section 603 of the Fair Credit 
Reporting Act (15 U.S.C. 1681(a)) is amended--
            (1) in subsection (d) (as amended by subsection (e)), by 
        adding at the end the following: ``The term also does not 
        include a communication described in subsection (o).''; and
            (2) by adding at the end the following:
    ``(o) Excluded Communications.--A communication is described in 
this subsection if it is a communication--
            ``(1) that, but for the third sentence of subsection (d), 
        would be an investigative consumer report;
            ``(2) that is made to a prospective employer for the 
        purpose of--
                    ``(A) procuring an employee for the employer; or
                    ``(B) procuring an opportunity for a natural person 
                to work for the employer;
            ``(3) that is made by a person who regularly performs such 
        procurement;
            ``(4) that is not used by any person for any purpose other 
        than a purpose described in subparagraph (A) or (B) of 
        paragraph (2);
            ``(5) with respect to which--
                    ``(A) the consumer who is the subject of the 
                communication--
                            ``(i) consents orally or in writing to the 
                        nature and scope of the communication, before 
                        the collection of any information for the 
                        purpose of making the communication;
                            ``(ii) consents orally or in writing to the 
                        making of the communication to a prospective 
                        employer, before the making of the 
                        communication; and
                            ``(iii) in the case of consent under clause 
                        (i) or (ii) given orally, is provided written 
                        confirmation of that consent by the person 
                        making the communication, not later than 3 
                        business days after the receipt of the consent 
                        by that person;
                    ``(B) the person who makes the communication does 
                not, for the purpose of making the communication, make 
                any inquiry that if made by a prospective employer of 
                the consumer who is the subject of the communication 
                would violate any applicable Federal or State equal 
                employment opportunity law or regulation; and
                    ``(C) the person who makes the communication--
                            ``(i) discloses in writing to the consumer 
                        who is the subject of the communication, not 
                        later than 5 business days after receiving any 
                        request from the consumer for such disclosure, 
                        the nature and substance of all information in 
                        the consumer's file at the time of the request, 
                        except that the sources of information that is 
                        acquired solely for use in making the 
                        communication and actually used for no other 
                        purpose need not be disclosed other than under 
                        appropriate discovery procedures in the court 
                        in which an action is brought; and
                            ``(ii) notifies the consumer who is the 
                        subject of the communication, in writing, of 
                        the consumer's right to request the information 
                        described in clause (i).''.
    (g) Consumer Reporting Agency That Compiles and Maintains Files on 
a Nationwide Basis.--Section 603 of the Fair Credit Reporting Act (15 
U.S.C. 1681a) is amended by adding after subsection (o) (as added by 
subsection (f)) the following:
    ``(p) Consumer Reporting Agency That Compiles and Maintains Files 
on Consumers on a Nationwide Basis.--The term `consumer reporting 
agency that compiles and maintains files on consumers on a nationwide 
basis' means a consumer reporting agency that regularly engages in the 
practice of assembling or evaluating, and maintaining, for the purpose 
of furnishing consumer reports to third parties bearing on a consumer's 
creditworthiness, credit standing, or credit capacity, each of the 
following regarding consumers residing nationwide:
            ``(1) Public record information.
            ``(2) Credit account information from persons who furnish 
        that information regularly and in the ordinary course of 
        business.''.
    (h) Conforming Amendment.--Section 603(d) of the Fair Credit 
Reporting Act (15 U.S.C. 1681a(d)) is amended in the first sentence--
            (1) by inserting ``(1)'' after ``in whole or in part for''; 
        and
            (2) by striking ``(1)'' before ``credit or insurance''.

SEC. 103. FURNISHING CONSUMER REPORTS; USE FOR EMPLOYMENT PURPOSES.

    (a) Furnishing Consumer Reports for Business Transactions.--Section 
604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended--
            (1) by inserting ``(a) In General.--'' before ``A consumer 
        reporting agency''; and
            (2) in subsection (a)(3) (as so designated by paragraph 
        (1)), by striking subparagraph (E) and inserting the following:
            ``(E) otherwise has a legitimate business need for the 
        information--
                    ``(i) in connection with a business transaction 
                that--
                            ``(I) is initiated by the consumer; or
                            ``(II) is a direct marketing transaction 
                        for which the furnishing of information from a 
                        consumer's file by the agency is not prohibited 
                        under subsection (d); or
                    ``(ii) to review an account to determine whether 
                the consumer continues to meet the terms of the 
                account.''.
    (b) Furnishing and Using Consumer Reports for Employment 
Purposes.--Section 604 of the Fair Credit Reporting Act (15 U.S.C. 
1681b) is amended by adding at the end the following:
    ``(b) Conditions for Furnishing and Using Consumer Reports for 
Employment Purposes.--
            ``(1) Certification from user.--A consumer reporting agency 
        may furnish a consumer report for employment purposes only if--
                    ``(A) the person who obtains such report from the 
                agency certifies to the agency that--
                            ``(i) the person has complied with 
                        paragraph (2) with respect to the consumer 
                        report, and the person will comply with 
                        paragraph (3) with respect to the consumer 
                        report if paragraph (3) becomes applicable; and
                            ``(ii) information from the consumer report 
                        will not be used in violation of any applicable 
                        Federal or State equal employment opportunity 
                        law or regulation; and
                    ``(B) the consumer reporting agency provides with 
                the report a summary of the consumer's rights under 
                this title, as prescribed by the Federal Trade 
                Commission under section 609(c)(3).
            ``(2) Disclosure to consumer.--A person may not procure a 
        consumer report, or cause a consumer report to be procured, for 
        employment purposes with respect to any consumer unless--
                    ``(A) a clear and conspicuous disclosure has been 
                made in writing to the consumer at any time before the 
                report is procured or caused to be procured, in a 
                document that consists solely of the disclosure, that a 
                consumer report may be obtained for employment 
                purposes; and
                    ``(B) the consumer has authorized in writing the 
                procurement of the report by that person.
            ``(3) Conditions on use for adverse actions.--In using a 
        consumer report for employment purposes, before taking any 
        adverse action based in whole or in part on the report a person 
        shall provide to the consumer to whom the report relates--
                    ``(A) a copy of the report;
                    ``(B) a description in writing of the consumer's 
                rights under this title, as prescribed by the Federal 
                Trade Commission under section 609(c)(3); and
                    ``(C) a reasonable period (not required to exceed 5 
                business days following receipt of the report by the 
                consumer) to respond to any information in the report 
                that is disputed by the consumer and notice in writing 
                of the opportunity for the consumer to respond in that 
                period, except that such an opportunity to respond and 
                notice are not required if the person takes the adverse 
                action based on a reasonable belief that the consumer 
                has engaged in fraudulent or criminal activity that is 
                related to, or that could affect, the consumer's 
                employment.''.

SEC. 104. USE OF CONSUMER REPORTS FOR PRESCREENING AND DIRECT 
              MARKETING; PROHIBITION ON UNAUTHORIZED OR UNCERTIFIED USE 
              OF INFORMATION.

    (a) In General.--Section 604 of the Fair Credit Reporting Act (15 
U.S.C. 1681b) (as amended by section 103) is amended--
            (1) in subsection (a), by striking ``A consumer reporting 
        agency'' and inserting ``Subject to subsections (c) and (d), 
        any consumer reporting agency''; and
            (2) by adding after subsection (b) (as added by section 
        103(b)) the following:
    ``(c) Furnishing Reports in Connection With Credit or Insurance 
Transactions That Are Not Initiated by the Consumer.--
            ``(1) In general.--A consumer reporting agency may furnish 
        a consumer report relating to any consumer pursuant to 
        subsection (a)(3)(A) in connection with any credit or insurance 
        transaction that is not initiated by the consumer only if--
                    ``(A) the consumer authorizes the agency to provide 
                such report to such person; or
                    ``(B)(i) the transaction consists of a firm offer 
                of credit or insurance;
                    ``(ii) the consumer reporting agency has complied 
                with subsection (e); and
                    ``(iii) there is not in effect an election by the 
                consumer, made in accordance with subsection (e), to 
                have the consumer's name and address excluded from 
                lists of names provided by the agency pursuant to this 
                paragraph.
            ``(2) Limits on information received under paragraph 
        (1)(B).--A person may receive pursuant to paragraph (1)(B) 
        only--
                    ``(A) the name and address of a consumer;
                    ``(B) an identifier that is not unique to the 
                consumer and is used by the person solely for the 
                purpose of verifying the identity of the consumer; and
                    ``(C) other information pertaining to a consumer 
                that does not identify the relationship or experience 
                of the consumer with a particular creditor or other 
                entity.
            ``(3) Information regarding inquiries.--Except as provided 
        in section 609(a)(5), a consumer reporting agency shall not 
        furnish to any person a record of inquiries in connection with 
        a credit or insurance transaction that is not initiated by a 
        consumer.
    ``(d) Furnishing Information From Consumer Files in Connection With 
Direct Marketing Transactions That Are Not Initiated by the Consumer.--
            ``(1) In general.--A consumer reporting agency may furnish 
        information from a file relating to a consumer pursuant to 
        subsection (a)(3)(E) in connection with a direct marketing 
        transaction that is not initiated by the consumer only if--
                    ``(A) the consumer authorizes the agency to provide 
                such information to such person; or
                    ``(B)(i) the consumer reporting agency has complied 
                with subsection (e); and
                    ``(ii) there is not in effect an election by the 
                consumer, made in accordance with subsection (e), to 
                have the consumer's name and address excluded from 
                lists of names provided by the agency pursuant to this 
                paragraph.
            ``(2) Limits on furnishing information under paragraph 
        (1)(B).--A consumer reporting agency may furnish, pursuant to 
        paragraph (1)(B), only the name and address of a consumer and 
        other information that would not disclose the credit payment 
        history, credit limit, credit balance, or any negative 
        information pretaining to the consumer.
            ``(3) Information regarding inquiries.--Except as provided 
        in section 609(a)(5), a consumer reporting agency shall not 
        furnish to any person a record of inquiries in connection with 
        a direct marketing transaction that is not initiated by a 
        consumer.
    ``(e) Election of Consumer To Be Excluded From Lists.--
            ``(1) In general.--A consumer may elect to have the 
        consumer's name and address excluded from any list provided by 
        a consumer reporting agency under subsection (c)(1)(B) in 
        connection with a credit or insurance transaction that is not 
        initiated by the consumer or under subsection (d)(1)(B) in 
        connection with a direct marketing transaction that is not 
initiated by the consumer, by notifying the agency in accordance with 
paragraph (2) that the consumer does not consent to any use of consumer 
reports relating to the consumer in connection with any credit or 
insurance transaction that is not initiated by the consumer or any 
direct marketing transaction that is not initiated by the consumer.
            ``(2) Manner of notification.--A consumer shall notify a 
        consumer reporting agency under paragraph (1)--
                    ``(A) through the notification system maintained by 
                the agency under paragraph (5); or
                    ``(B) by submitting to the agency a signed notice 
                of election form issued by the agency for purposes of 
                this subparagraph.
            ``(3) Response of agency after notification through 
        system.--Upon receipt of notification of the election of a 
        consumer under paragraph (1) through the notification system 
        maintained by the agency under paragraph (5), a consumer 
        reporting agency shall--
                    ``(A) inform the consumer that the election is 
                effective only for a 2-year period if the consumer does 
                not submit to the agency a signed notice of election 
                form issued by the agency for purposes of paragraph 
                (2)(B); and
                    ``(B) provide to the consumer such a form if 
                requested by the consumer, by not later than 5 business 
                days after receiving the notification through the 
                system in the case of a request made at the time the 
                consumer provides notification through the system.
            ``(4) Effectiveness of election.--An election of a consumer 
        under paragraph (1)--
                    ``(A) shall be effective with respect to a consumer 
                reporting agency beginning on the date on which the 
                consumer notifies the agency in accordance with 
                paragraph (2);
                    ``(B) shall be effective with respect to a consumer 
                reporting agency--
                            ``(i) subject to subparagraph (C), during 
                        the 2-year period beginning on the date on 
                        which the consumer notifies the agency of the 
                        election, in the case of an election for which 
                        a consumer notifies the agency only in 
                        accordance with paragraph (2)(A); or
                            ``(ii) until the consumer notifies the 
                        agency under subparagraph (C), in the case of 
                        an election for which a consumer notifies the 
                        agency in accordance with paragraph (2)(B);
                    ``(C) shall not be effective after the date on 
                which the consumer notifies the agency, through the 
                notification system established by the agency under 
                paragraph (5), that the election is no longer 
                effective; and
                    ``(D) shall be effective with respect to each 
                affiliate of the agency.
            ``(5) Notification system.--Each consumer reporting agency 
        that, under subsection (c)(1)(B), furnishes a consumer report 
        in connection with a credit or insurance transaction that is 
        not initiated by a consumer or, under or subsection (d)(1)(B), 
        furnishes a consumer report in connection with a direct 
        marketing transaction that is not initiated by a consumer, 
        shall--
                    ``(A) establish and maintain a notification system, 
                including a toll-free telephone number, which permits 
                any consumer whose consumer report is maintained by the 
                agency to notify the agency, with appropriate 
                identification, of the consumer's election to have the 
                consumer's name and address excluded from any such 
list of names and addresses provided by the agency for such a 
transaction; and
                    ``(B) publish by not later than 365 days after the 
                date of enactment of the Consumer Reporting Reform Act 
                of 1995, and not less than annually thereafter, in a 
                publication of general circulation in the area served 
                by the agency--
                            ``(i) a notification that information in 
                        consumer files maintained by the agency may be 
                        used in connection with such transactions; and
                            ``(ii) the address and toll-free telephone 
                        number for consumers to use to notify the 
                        agency of the consumer's election under 
                        subparagraph (A).
        Establishment and maintenance of a notification system 
        (including a toll-free telephone number) and publication by a 
        consumer reporting agency on the agency's own behalf and on 
        behalf of any of its affiliates in accordance with this 
        paragraph is deemed to be compliance with this paragraph by 
        each of those affiliates.
            ``(6) Notification system by agencies that operate 
        nationwide.--Each consumer reporting agency that compiles and 
        maintains files on consumers on a nationwide basis shall 
        establish and maintain a notification system for purposes of 
        paragraph (5) jointly with other such consumer reporting 
        agencies.''.
    (b) Use of Information Obtained From Reports.--Section 604 of the 
Fair Credit Reporting Act (15 U.S.C. 1681b) is amended by adding at the 
end (as added by subsection (a)) the following:
    ``(f) Certain Use or Obtaining of Information Prohibited.--A person 
shall not use or obtain a consumer report for any purpose unless--
            ``(1) the consumer report is obtained for a purpose for 
        which the consumer report is authorized to be furnished under 
        subsection (a); and
            ``(2) the purpose is certified in accordance with section 
        607 by a prospective user of the report through a general or 
        specific certification.''.

SEC. 105. CONSUMER CONSENT REQUIRED TO FURNISH CONSUMER REPORT 
              CONTAINING MEDICAL INFORMATION; FURNISHING CONSUMER 
              REPORTS FOR COMMERCIAL TRANSACTIONS.

    (a) In General.--Section 604 of the Fair Credit Reporting Act (15 
U.S.C. 1681b) (as amended by sections 103 and 104) is amended by adding 
at the end the following:
    ``(g) Furnishing Reports Containing Medical Information.--A 
consumer reporting agency shall not furnish for employment purposes, or 
in connection with a credit or insurance transaction or a direct 
marketing transaction, a consumer report that contains medical 
information about a consumer, unless the consumer consents to the 
furnishing of the report.
    ``(h) Furnishing Consumer Reports for Commercial Transactions.--A 
consumer reporting agency may furnish a consumer report to a person if 
the agency has a reasonable belief that the person intends to use the 
information in connection with a commercial transaction involving the 
consumer.''.
    (b) Conforming Amendment.--Section 603(d) of the Fair Credit 
Reporting Act (15 U.S.C. 1681a(d)) is amended in the first sentence by 
striking ``section 604'' and inserting ``section 604(a)''.

SEC. 106. OBSOLETE INFORMATION AND INFORMATION CONTAINED IN CONSUMER 
              REPORTS.

    (a) Repeal Large-Dollar Exceptions.--Section 605 of the Fair Credit 
Reporting Act (15 U.S.C. 1681c) is amended--
            (1) in subsection (a), by striking ``(a) Except as 
        authorized under subsection (b), no'' and inserting the 
        following:
    ``(a) Information Excluded From Consumer Reports.--No''; and
            (2) by striking subsection (b).
    (b) Clarification of Reporting Period.--Section 605 of the Fair 
Credit Reporting Act (15 U.S.C. 1681c) (as amended by subsection (a)) 
is amended by adding at the end the following:
    ``(b) Running of Reporting Period.--
            ``(1) In general.--The 7-year period referred to in 
        paragraphs (4) and (6) of subsection (a) shall begin, with 
        respect to any delinquent account that is placed for collection 
        (internally or by referral to a third party, whichever is 
        earlier), charged to profit and loss, or subjected to any 
        similar action, upon the expiration of the 180-day period 
        beginning on the date of the commencement of the delinquency 
        which immediately preceded the collection activity, charge to 
        profit and loss, or similar action.
            ``(2) Effective date.--Paragraph (1) shall apply only to 
        items of information added to a consumer report on or after the 
        date that is 455 days after the date of enactment of the 
        Consumer Reporting Reform Act of 1995.''.
    (c) Additional Information on Bankruptcy Filings Required.--Section 
605 of the Fair Credit Reporting Act (15 U.S.C. 1681c) is amended by 
adding after subsection (b) (as added by subsection (b)) the following:
    ``(c) Information Required To Be Disclosed.--Any consumer reporting 
agency that furnishes a consumer report that contains information 
regarding any case involving the consumer that arises under title 11, 
United States Code, shall include in the report an identification of 
the chapter of such title 11 under which such case arises if provided 
by the source of the information. If any case arising or filed under 
title 11, United States Code, is withdrawn by the consumer prior to a 
final judgment, the consumer reporting agency shall include in the 
report that such case or filing was withdrawn upon receipt of 
documentation certifying such withdrawal.''.
    (d) Indication of Closure of Account; Indication of Dispute by 
Consumer.--Section 605 of the Fair Credit Reporting Act (15 U.S.C. 
1681c) is amended by adding after subsection (c) (as added by 
subsection (c)) the following:
    ``(d) Indication of Closure of Account by Consumer.--If a consumer 
reporting agency is notified pursuant to section 623(a)(4) that a 
credit account of a consumer was voluntarily closed by the consumer, 
the agency shall indicate that fact in any consumer report that 
includes information related to the account.
    ``(e) Indication of Dispute by Consumer.--If a consumer reporting 
agency is notified pursuant to section 623(a)(3) that information 
regarding a consumer who was furnished to the agency is disputed by the 
consumer, the agency shall indicate that fact in each consumer report 
that includes the disputed information.''.
    (e) Conforming Amendments.--
            (1) The heading for section 605 of the Fair Credit 
        Reporting Act (15 U.S.C. 1681c) is amended by striking 
        ``Obsolete information'' and inserting ``Requirements relating 
        to information contained in consumer reports''.
            (2) The table of sections at the beginning of the Fair 
        Credit Reporting Act (15 U.S.C. 1681a et seq.) is amended by 
        striking the item relating to section 605 and inserting the 
        following:

``605. Requirements relating to information contained in consumer 
                            reports.''.

SEC. 107. COMPLIANCE PROCEDURES.

    (a) Disclosure of Consumer Reports by Users.--Section 607 of the 
Fair Credit Reporting Act (15 U.S.C. 1681e) is amended by adding at the 
end the following:
    ``(c) Disclosure of Consumer Reports by Users Allowed.--A consumer 
reporting agency may not prohibit a user of a consumer report furnished 
by the agency on a consumer from disclosing the contents of the report 
to the consumer, if adverse action against the consumer has been taken 
by the user based in whole or in part on the report.''.
    (b) Notice to Users and Providers of Information To Ensure 
Compliance.--Section 607 of the Fair Credit Reporting Act (15 U.S.C. 
1681e) is amended by adding after subsection (c) (as added by 
subsection (a)) the following:
    ``(d) Notice to Users and Furnishers of Information.--
            ``(1) Notice requirement.--A consumer reporting agency 
        shall provide to any person--
                    ``(A) who regularly and in the ordinary course of 
                business furnishes information to the agency with 
                respect to any consumer; or
                    ``(B) to whom a consumer report is provided by the 
                agency;
        a notice of such person's responsibilities under this title.
            ``(2) Content of notice.--The Federal Trade Commission 
        shall prescribe the content of notices under paragraph (1).''.
    (c) Record of Identity of Users and Purposes Certified by Users of 
Reports.--Section 607 of the Fair Credit Reporting Act (15 U.S.C. 
1681e) is amended by adding after subsection (d) (as added by 
subsection (b)) the following:
    ``(e) Procurement of Consumer Report for Resale.--
            ``(1) Disclosure.--A person may not procure a consumer 
        report for purposes of reselling the report (or any information 
        in the report) unless the person discloses to the consumer 
        reporting agency that originally furnishes the report--
                    ``(A) the identity of the end-user of the report 
                (or information); and
                    ``(B) each permissible purpose under section 604 
                for which the report is furnished to the end-user of 
                the report (or information).
            ``(2) Responsibilities of procurers for resale.--A person 
        who procures a consumer report for purposes of reselling the 
        report (or any information in the report) shall--
                    ``(A) establish and comply with reasonable 
                procedures designed to ensure that the report (or 
                information) is resold by the person only for a purpose 
                for which the report may be furnished under section 
                604, including by requiring that each person to which 
                the report (or information) is resold and that resells 
                or provides the report (or information) to any other 
                person--
                            ``(i) identifies each end user of the 
                        resold report (or information);
                            ``(ii) certifies each purpose for which the 
                        report (or information) will be used; and
                            ``(iii) certifies that the report (or 
                        information) will be used for no other purpose; 
                        and
                    ``(B) before reselling the report, make reasonable 
                efforts to verify the identifications and 
                certifications made under subparagraph (A).''.

SEC. 108. CONSUMER DISCLOSURES.

    (a) All Information in Consumer's File Required To Be Disclosed.--
Section 609(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 
1681g(a)(1)) is amended to read as follows:
            ``(1) All information in the consumer's file at the time of 
        the request, except that nothing in this paragraph shall be 
        construed to require a consumer reporting agency to disclose to 
        a consumer any information concerning credit scores or any 
        other risk scores or predictors relating to the consumer.''.
    (b) More Information Concerning Recipients of Reports Required.--
Section 609(a)(3) of the Fair Credit Reporting Act (15 U.S.C. 1681g(a)) 
is amended to read as follows:
            ``(3)(A) Identification of each person (including each end-
        user identified under section 607(e)(1)) that procured a 
        consumer report--
                    ``(i) for employment purposes during the 2-year 
                period preceding the date on which the request is made; 
                or
                    ``(ii) for any other purpose during the 1-year 
                period preceding the date on which the request is made.
            ``(B) An identification of a person under subparagraph (A) 
        shall include--
                    ``(i) the name of the person or, if applicable, the 
                trade name (written in full) under which such person 
                conducts business; and
                    ``(ii) upon request of the consumer, the address 
                and telephone number of the person.''.
    (c) Information Regarding Inquiries.--Section 609(a) of the Fair 
Credit Reporting Act (15 U.S.C. 1681g(a)) is amended by adding at the 
end the following:
            ``(5) A record of all inquiries received by the agency 
        during the 1-year period preceding the request that identified 
        the consumer in connection with a credit or insurance 
        transaction that was not initiated by the consumer.''.
    (d) Summary of Rights Required To Be Included With Disclosure.--
            (1) In general.--Section 609 of the Fair Credit Reporting 
        Act (15 U.S.C. 1681g) is amended by adding at the end the 
        following:
    ``(c) Summary of Rights Required To Be Included With Disclosure.--
            ``(1) Summary of rights.--A consumer reporting agency shall 
        provide to a consumer, with each written disclosure by the 
        agency to the consumer under this section--
                    ``(A) a written summary of all rights the consumer 
                has under this title; and
                    ``(B) in the case of a consumer reporting agency 
                that compiles and maintains files on consumers on a 
                nationwide basis, a toll-free telephone number 
                established by the agency at which personnel are 
                accessible to consumers during normal business hours.
            ``(2) Specific items required to be included.--The summary 
        of rights required under paragraph (1) shall include--
                    ``(A) a brief description of this title and all 
                rights of consumers under this title;
                    ``(B) an explanation of how the consumer may 
                exercise the rights of the consumer under this title;
                    ``(C) a list of all Federal agencies responsible 
                for enforcing any provision of this title and the 
                address and any appropriate phone number of each such 
                agency, in a form that will assist the consumer in 
                selecting the appropriate agency;
                    ``(D) a statement that the consumer may have 
                additional rights under State law and that the consumer 
                may wish to contact a State or local consumer 
                protection agency or a State attorney general to learn 
                of those rights; and
                    ``(E) a statement that a consumer reporting agency 
                is not required to remove accurate derogatory 
information from a consumer's file, unless the information is outdated 
under section 605 or cannot be verified.
            ``(3) Form of summary of rights.--For purposes of this 
        subsection and any disclosure by a consumer reporting agency 
        required under this title with respect to consumers' rights, 
        the Federal Trade Commission (after consultation with each 
        Federal agency referred to in section 621(b)) shall prescribe 
        the form and content of any such disclosure of the rights of 
        consumers required under this title.''.
            (2) Technical amendment.--Section 606(a)(1)(B) of the Fair 
        Credit Reporting Act (15 U.S.C. 1681d(a)(1)(B)) is amended by 
        inserting ``and the written summary of the rights of the 
        consumer prepared pursuant to section 609(c)'' before the 
        semicolon.
    (e) Form of Disclosures.--
            (1) In general.--Subsections (a) and (b) of section 610 of 
        the Fair Credit Reporting Act (15 U.S.C. 1681h) are amended to 
        read as follows:
    ``(a) In General.--
            ``(1) Proper identification.--A consumer reporting agency 
        shall require, as a condition of making the disclosures 
        required under section 609, that the consumer furnish proper 
        identification.
            ``(2) Disclosure in writing.--Except as provided in 
        subsection (b), the disclosures required to be made under 
        section 609 shall be provided under that section in writing.
    ``(b) Other Forms of Disclosure.--
            ``(1) In general.--If authorized by a consumer, a consumer 
        reporting agency may make the disclosures required under 609--
                    ``(A) other than in writing; and
                    ``(B) in such form as may be--
                            ``(i) specified by the consumer in 
                        accordance with paragraph (2); and
                            ``(ii) available from the agency.
            ``(2) Form.--A consumer may specify pursuant to paragraph 
        (1) that disclosures under section 609 shall be made--
                    ``(A) in person, upon the appearance of the 
                consumer at the place of business of the consumer 
                reporting agency where disclosures are regularly 
                provided, during normal business hours, and on 
                reasonable notice;
                    ``(B) by telephone, if the consumer has made a 
                written request for disclosure by telephone;
                    ``(C) by electronic means, if available from the 
                agency; or
                    ``(D) by any other reasonable means that is 
                available from the agency.''.
            (2) Simplified disclosure.--Not later than 90 days after 
        the date of enactment of this Act, each consumer reporting 
        agency shall develop a form on which such consumer reporting 
        agency shall make the disclosures required under section 609(a) 
        of the Fair Credit Reporting Act, for the purpose of maximizing 
        the comprehensibility and standardization of such disclosures.
            (3) Goals.--The Federal Trade Commission shall take 
        appropriate action to assure that the goals of 
        comprehensibility and standardization are achieved in 
        accordance with paragraph (2).
            (4) Conforming amendments.--
                    (A) Section 609(a) of the Fair Credit Reporting Act 
                (15 U.S.C. 1681h(a)) is amended in the matter preceding 
                paragraph (1) by striking ``and proper identification 
                of any consumer'' and inserting ``and subject to 
section 610(a)(1)''.
                    (B) Section 610 of the Fair Credit Reporting Act 
                (15 U.S.C. 1681h) is amended in the section heading by 
                inserting ``and form'' after ``Conditions''.
                    (C) The table of sections at the beginning of the 
                Fair Credit Reporting Act (15 U.S.C. 1681a et seq.) is 
                amended in the item relating to section 610 by 
                inserting ``and form'' after ``Conditions''.

SEC. 109. PROCEDURES IN CASE OF THE DISPUTED ACCURACY OF ANY 
              INFORMATION IN A CONSUMER'S FILE.

    (a) In General.--Section 611(a) of the Fair Credit Reporting Act 
(15 U.S.C. 1681i(a)) is amended to read as follows:
    ``(a) Reinvestigations of Disputed Information.--
            ``(1) Reinvestigation required.--
                    ``(A) In general.--If the completeness or accuracy 
                of any item of information contained in a consumer's 
                file at a consumer reporting agency is disputed by the 
                consumer and the consumer notifies the agency directly 
                of such dispute, the agency shall reinvestigate free of 
                charge and record the current status of the disputed 
                information, or delete the item from the file in 
                accordance with paragraph (5), before the end of the 
                30-day period beginning on the date on which the agency 
                receives the notice of the dispute from the consumer.
                    ``(B) Extension of period to reinvestigate.--Except 
                as provided in subparagraph (C), the 30-day period 
                described in subparagraph (A) may be extended for not 
                more than 15 additional days if the consumer reporting 
                agency receives information from the consumer during 
                that 30-day period that is relevant to the 
                reinvestigation.
                    ``(C) Limitations on extension of period to 
                reinvestigate.--Subparagraph (B) shall not apply to any 
                reinvestigation in which, during the 30-day period 
                described in subparagraph (A), the information that is 
                the subject of the reinvestigation is found to be 
                inaccurate or incomplete or the consumer reporting 
                agency determines that the information cannot be 
                verified.
            ``(2) Prompt notice of dispute to furnisher of 
        information.--
                    ``(A) In general.--Prior to the expiration of the 
                5-business-day period beginning on the date on which a 
                consumer reporting agency receives notice of a dispute 
                from any consumer in accordance with paragraph (1), the 
                agency shall provide notification of the dispute to any 
                person who provided any item of information in dispute, 
                at the address and in the manner established with the 
                person. The notice shall include all relevant 
                information regarding the dispute that the agency has 
                received from the consumer.
                    ``(B) Provision of other information from 
                consumer.--The consumer reporting agency shall promptly 
                provide to the person who provided the information in 
                dispute all relevant information regarding the dispute 
                that is received by the agency from the consumer after 
                the period referred to in subparagraph (A) and before 
                the end of the period referred to in paragraph (1)(A).
            ``(3) Determination that dispute is frivolous or 
        irrelevant.--
                    ``(A) In general.--Notwithstanding paragraph (1), a 
                consumer reporting agency may terminate a 
                reinvestigation of information disputed by a consumer 
                under that paragraph if the agency reasonably 
                determines that the dispute by the consumer is 
                frivolous or irrelevant, including by reason of a 
                failure by a consumer to provide sufficient information 
                to investigate the disputed information.
                    ``(B) Notice of determination.--Upon making any 
                determination in accordance with subparagraph (A) that 
                a dispute is frivolous or irrelevant, a consumer 
                reporting agency shall notify the consumer of such 
                determination not later than 5 business days after 
                making such determination, by mail or, if authorized by 
                the consumer for that purpose, by any other means 
                available to the agency.
                    ``(C) Contents of notice.--A notice under 
                subparagraph (B) shall include--
                            ``(i) the reasons for the determination 
                        under subparagraph (A); and
                            ``(ii) identification of any information 
                        required to investigate the disputed 
                        information, which may consist of a 
                        standardized form describing the general nature 
                        of such information.
            ``(4) Consideration of consumer information.--In conducting 
        any reinvestigation under paragraph (1) with respect to 
        disputed information in the file of any consumer, the consumer 
        reporting agency shall review and consider all relevant 
        information submitted by the consumer in the period described 
        in paragraph (1)(A) with respect to such disputed information.
            ``(5) Treatment of inaccurate or unverifiable 
        information.--
                    ``(A) In general.--If, after any reinvestigation 
                under paragraph (1) of any information disputed by a 
                consumer, an item of the information is found to be 
                inaccurate or incomplete or cannot be verified, the 
                consumer reporting agency shall promptly delete that 
                item of information from the consumer's file. The 
                information deleted shall consist solely of the 
                information that was disputed by the consumer and shall 
                not include any portion of the same item that was not 
                disputed.
                    ``(B) Requirements relating to reinsertion of 
                previously deleted material.--
                            ``(i) Certification of accuracy of 
                        information.--If any information is deleted 
                        from a consumer's file pursuant to subparagraph 
                        (A), the information may not be reinserted in 
                        the file by the consumer reporting agency 
                        unless the person who furnishes the information 
                        certifies that the information is complete and 
                        accurate.
                            ``(ii) Notice to consumer.--If any 
                        information that has been deleted from a 
                        consumer's file pursuant to subparagraph (A) is 
                        reinserted in the file, the consumer reporting 
                        agency shall notify the consumer of the 
                        reinsertion in writing not later than 5 
                        business days after the reinsertion or, if 
                        authorized by the consumer for that purpose, by 
                        any other means available to the agency.
                            ``(iii) Additional information.--As part 
                        of, or in addition to, the notice under clause 
                        (ii), a consumer reporting agency shall provide 
to a consumer in writing not later than 5 business days after the date 
of the reinsertion--
                                    ``(I) a statement that the disputed 
                                information has been reinserted;
                                    ``(II) the name, business address, 
                                and telephone number of any furnisher 
                                of information contacted, or of any 
                                furnisher of information that contacted 
                                the consumer reporting agency, in 
                                connection with the reinsertion of such 
                                information; and
                                    ``(III) a notice that the consumer 
                                has the right to add a statement to the 
                                consumer's file disputing the accuracy 
                                or completeness of the disputed 
                                information.
                    ``(C) Procedures to prevent reappearance.--A 
                consumer reporting agency shall maintain reasonable 
                procedures designed to prevent the reappearance in a 
                consumer's file, and in consumer reports on the 
                consumer, of information that is deleted pursuant to 
                this paragraph (other than information that is 
                reinserted in accordance with subparagraph (B)(i)).
                    ``(D) Automated reinvestigation system.--Any 
                consumer reporting agency that compiles and maintains 
                files on consumers on a nationwide basis shall 
                implement an automated system through which furnishers 
                of information to that consumer reporting agency may 
                report the results of a reinvestigation that finds 
                incomplete or inaccurate information in a consumer's 
                file to other such consumer reporting agencies.
            ``(6) Notice of results of reinvestigation.--
                    ``(A) In general.--A consumer reporting agency 
                shall provide written notice to a consumer of the 
                results of a reinvestigation under this subsection not 
                later than 5 business days after the completion of the 
                reinvestigation, by mail or, if authorized by the 
                consumer for that purpose, by other means available to 
                the agency.
                    ``(B) Contents.--As part of, or in addition to, the 
                notice under subparagraph (A), a consumer reporting 
                agency shall provide to a consumer in writing prior to 
                the expiration of the 5-day period referred to in 
                subparagraph (A)--
                            ``(i) a statement that the reinvestigation 
                        is completed;
                            ``(ii) a consumer report that is based upon 
                        the consumer's file as that file is revised as 
                        a result of the reinvestigation;
                            ``(iii) a description or indication of any 
                        changes made in the consumer report as a result 
                        of those revisions to the consumer's file;
                            ``(iv) a notice that, if requested by the 
                        consumer, a description of the procedure used 
                        to determine the accuracy and completeness of 
                        the information shall be provided to the 
                        consumer by the agency, including the name, 
                        business address, and telephone number of any 
                        furnisher of information contacted in 
                        connection with such information;
                            ``(v) a notice that the consumer has the 
                        right to add a statement to the consumer's file 
                        disputing the accuracy or completeness of the 
                        information; and
                            ``(vi) a notice that the consumer has the 
                        right to request under subsection (d) that the 
                        consumer reporting agency furnish notifications 
                        under that subsection.
            ``(7) Description of reinvestigation procedure.--A consumer 
        reporting agency shall provide to a consumer a description 
        referred to in paragraph (6)(B)(iv) by not later than 15 days 
        after receiving a request from the consumer for that 
        description.
            ``(8) Expedited dispute resolution.--If a dispute regarding 
        an item of information in a consumer's file at a consumer 
        reporting agency is resolved in accordance with paragraph 
        (5)(A) by the deletion of the disputed information by not later 
        than 3 business days after the date on which the agency 
        receives notice of the dispute from the consumer in accordance 
        with paragraph (1)(A), then the agency shall not be required to 
        comply with paragraphs (2), (6), and (7) with respect to that 
        dispute if the agency--
                    ``(A) provides prompt notice of the deletion to the 
                consumer by telephone;
                    ``(B) includes in that notice, or in a written 
                notice that accompanies a confirmation and consumer 
                report provided in accordance with subparagraph (C), a 
                statement of the consumer's right to request under 
                subsection (d) that the agency furnish notifications 
                under that subsection; and
                    ``(C) provides written confirmation of the deletion 
                and a copy of a consumer report on the consumer that is 
                based on the consumer's file after the deletion, not 
                later than 5 business days after making the 
                deletion.''.
    (b) Conforming Amendment.--Section 611(d) of the Fair Credit 
Reporting Act (15 U.S.C. 1681i(d)) is amended by striking ``The 
consumer reporting agency shall clearly'' and all that follows through 
the end of the subsection.

SEC. 110. CHARGES FOR CERTAIN DISCLOSURES.

    Section 612 of the Fair Credit Reporting Act (15 U.S.C. 1681j) is 
amended to read as follows:

``SEC. 612. CHARGES FOR CERTAIN DISCLOSURES.

    ``(a) Reasonable Charges Allowed for Certain Disclosures.--Except 
as provided in subsections (b), (c), and (d), a consumer reporting 
agency may impose a reasonable charge on a consumer--
            ``(1) for making a disclosure to the consumer pursuant to 
        section 609, which charge--
                    ``(A) shall not exceed $8; and
                    ``(B) shall be indicated to the consumer prior to 
                making disclosure; and
            ``(2) for furnishing pursuant to section 611(d), following 
        a reinvestigation under section 611(a), a statement, 
        codification, or summary to a person designated by the consumer 
        under that section after the 30-day period beginning on the 
        date of notification of the consumer under paragraph (6) or (8) 
        of section 611(a) with respect to the reinvestigation, which 
        charge--
                    ``(A) shall not exceed the charge that the agency 
                would impose on each designated recipient for a 
                consumer report; and
                    ``(B) shall be indicated to the consumer prior to 
                furnishing such information.
    ``(b) Free Consumer Report After Adverse Notice to Consumer.--Each 
consumer reporting agency that maintains a file on a consumer shall 
make all disclosures pursuant to section 609 without charge to the 
consumer if, not later than 60 days after receipt by such consumer of a 
notification pursuant to section 615, or of a notification from a debt 
collection agency affiliated with that consumer reporting agency 
stating that the consumer's credit rating may be or has been adversely 
affected, the consumer makes a request under section 609.
    ``(c) Free Consumer Report Under Certain Other Circumstances.--Upon 
the request of the consumer, a consumer reporting agency shall make all 
disclosures pursuant to section 609 once during any 12-month period 
without charge to that consumer if the consumer certifies in writing 
that the consumer--
            ``(1) is unemployed and intends to apply for employment in 
        the 60-day period beginning on the date on which the 
        certification is made;
            ``(2) is a recipient of public welfare assistance; or
            ``(3) has reason to believe that the file on the consumer 
        at the agency contains inaccurate information due to fraud.
    ``(d) Other Charges Prohibited.--A consumer reporting agency shall 
not impose any charge on a consumer for providing any notification 
required by this Act or making any disclosure required by this Act, 
except as authorized by subsection (a).''.

SEC. 111. DUTIES OF USERS OF CONSUMER REPORTS.

    (a) Duties of Users Taking Adverse Actions.--Section 615(a) of the 
Fair Credit Reporting Act (15 U.S.C. 1681m(a)) is amended to read as 
follows:
    ``(a) Duties of Users Taking Adverse Actions on the Basis of 
Information Contained in Consumer Reports.--If any person takes any 
adverse action with respect to any consumer that is based in whole or 
in part on any information contained in a consumer report, the person 
shall--
            ``(1) provide written or electronic notice of the adverse 
        action to the consumer;
            ``(2) provide to the consumer in writing or 
        electronically--
                    ``(A) the name, address, and telephone number of 
                the consumer reporting agency (including a toll-free 
                telephone number established by the agency if the 
                agency compiles and maintains files on consumers on a 
                nationwide basis) that furnished the report to the 
                person; and
                    ``(B) a statement that the consumer reporting 
                agency did not make the decision to take the adverse 
                action and is unable to provide the consumer the 
                specific reasons why the adverse action was taken; and
            ``(3) provide to the consumer a written or electronic 
        notice of the consumer's right--
                    ``(A) to obtain, under section 612, a free copy of 
                a consumer report on the consumer from the consumer 
                reporting agency referred to in paragraph (2), which 
                notice shall include an indication of the 60-day period 
                under that section for obtaining such a copy; and
                    ``(B) to dispute, under section 611, with a 
                consumer reporting agency the accuracy or completeness 
                of any information in a consumer report furnished by 
                the agency.''.
    (b) Duties of Users Making Certain Credit Solicitations.--Section 
615 of the Fair Credit Reporting Act (15 U.S.C. 1681m) is amended by 
adding at the end the following:
    ``(d) Duties of Users Making Written Credit Solicitations on the 
Basis of Information Contained in Consumer Files.--
            ``(1) In general.--Any person who uses a consumer report on 
        any consumer in connection with any credit or insurance 
        transaction that is not initiated by the consumer, that is 
        provided to that person under section 604(c)(1)(B), shall 
        provide with each written solicitation made to the consumer 
        regarding the transaction a clear and conspicuous statement 
        that--
                    ``(A) information contained in the consumer's 
                consumer report was used in connection with the 
                transaction;
                    ``(B) the consumer received the offer of credit 
                because the consumer satisfied the criteria for 
                creditworthiness under which the consumer was selected 
                for the offer;
                    ``(C) if 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 or any applicable criteria 
                bearing on creditworthiness or does not furnish any 
                required collateral;
                    ``(D) the consumer has a right to prohibit 
                information contained in the consumer's file with any 
                consumer reporting agency from being used in connection 
                with any credit or insurance transaction that is not 
                initiated by the consumer; and
                    ``(E) the consumer may exercise the right referred 
                to in subparagraph (D) by notifying a notification 
                system established under section 604(e).
            ``(2) Disclosure of address and telephone number.--A 
        statement under paragraph (1) shall include the address and 
toll-free telephone number of the appropriate notification system 
established under section 604(e).
            ``(3) Maintaining criteria on file.--A person who makes an 
        offer of credit to a consumer under a credit or insurance 
        transaction described in paragraph (1) shall maintain on file 
        the criteria used to select the consumer to receive the offer, 
        all criteria bearing on creditworthiness that are the basis for 
        determining whether or not to extend credit pursuant to the 
        offer, and any requirement for the furnishing of collateral as 
        a condition of the extension of credit, until the expiration of 
        the 3-year period beginning on the date on which the offer is 
        made to the consumer.
            ``(4) Limitation on application.--Paragraph (1) does not 
        apply to the use of a consumer report by a person if--
                    ``(A) the person is affiliated by common ownership 
                or by common corporate control with the person who 
                procured the report;
                    ``(B) the person who procured the report clearly 
                and conspicuously disclosed to the consumer to whom the 
                report relates, before the report is provided to the 
                person using the report, that the report might be 
                provided to and used by other persons who are 
                affiliated in the manner described in subparagraph (A) 
                to the person who procured the report; and
                    ``(C) the consumer has been afforded the 
                opportunity to direct in writing that the report may 
                not be communicated among persons who are affiliated in 
                the manner described in subparagraph (A) and has not 
                done so.
            ``(5) Authority of federal agencies regarding unfair or 
        deceptive acts or practices not affected.--This section is not 
        intended to affect the authority of any Federal agency to 
        enforce a prohibition against unfair or deceptive acts or 
        practices, including the making of false or misleading 
        statements in connection with a credit or insurance transaction 
        that is not initiated by the consumer.''.
    (c) Duties of Users Making Other Solicitations.--Section 615 of the 
Fair Credit Reporting Act (15 U.S.C. 1681m) is amended by adding at the 
end the following:
    ``(e) Duties of Users Making Other Written Solicitations on the 
Basis of Information Contained in Consumer Files.--
            ``(1) In general.--A person who, in connection with any 
        direct marketing transaction that is not initiated by a 
        consumer, uses a consumer report on that consumer that is 
        provided to that person under section 604(a)(3)(E)(i)(II), 
        shall provide with the initial written solicitation made to the 
        consumer regarding the transaction a clear and conspicuous 
        statement that--
                    ``(A) information contained in the consumer's 
                consumer report was used in connection with the 
                transaction;
                    ``(B) the consumer has a right to prohibit 
                information contained in the consumer's file with any 
                consumer reporting agency from being used in connection 
                with any direct marketing transaction that is not 
                initiated by the consumer; and
                    ``(C) the consumer may exercise the right referred 
                to in subparagraph (B) by notifying a notification 
                system established under section 604(e).
            ``(2) Disclosure of address and telephone number.--A 
        statement under paragraph (1) shall include the address and 
        toll-free telephone number of the appropriate notification 
        system established under section 604(e).
            ``(3) Authority of federal agencies regarding unfair or 
        deceptive acts or practices not affected.--This section is not 
        intended to affect the authority of any Federal agency to 
        enforce a prohibition against unfair or deceptive acts or 
        practices, including the making of false or misleading 
        statements in connection with a direct marketing transaction 
        that is not initiated by the consumer.''.
    (d) Conforming Amendment.--Section 615(c) of the Fair Credit 
Reporting Act (15 U.S.C. 1681m(c)) is amended by striking ``subsections 
(a) and (b)'' and inserting ``this section''.

SEC. 112. CIVIL LIABILITY.

    (a) Civil Liability for Willful Noncompliance.--Section 616 of the 
Fair Credit Reporting Act (15 U.S.C. 1681n) is amended by striking 
``Any consumer reporting agency or user of information which'' and 
inserting ``(a) In General.--Any person who''.
    (b) Minimum Civil Liability for Willful Noncompliance.--Section 
616(1) of the Fair Credit Reporting Act (15 U.S.C. 1681n(1)) is amended 
to read as follows:
            ``(1)(A) any actual damages sustained by the consumer as a 
        result of the failure or damages of not less than $100 and not 
        more than $1,000; or
            ``(B) in the case of liability of a natural person for 
        obtaining a consumer report under false pretenses or knowingly 
        without a permissible purpose, actual damages sustained by the 
        consumer as a result of the failure or $1,000, whichever is 
        greater;''.
    (c) Civil Liability for Knowing Noncompliance.--Section 616 of the 
Fair Credit Reporting Act (15 U.S.C. 1681n) is amended by adding at the 
end the following:
    ``(c) Civil Liability for Knowing Noncompliance.--Any person who 
obtains a consumer report from a consumer reporting agency under false 
pretenses or knowingly without a permissible purpose shall be liable to 
the consumer reporting agency for actual damages sustained by the 
consumer reporting agency or $1,000, whichever is greater.''.
    (d) Civil Liability for Negligent Noncompliance.--Section 617 of 
the Fair Credit Reporting Act (15 U.S.C. 1681o) is amended by striking 
``Any consumer reporting agency or user of information which'' and 
inserting ``(a) In General.--Any person who''.
    (e) Attorney's Fees.--
            (1) Willful noncompliance.--Section 616 of the Fair Credit 
        Reporting Act (15 U.S.C. 1681n) is amended by adding at the end 
        the following:
    ``(b) Attorney's Fees.--On a finding by the court that an 
unsuccessful pleading, motion, or other paper filed in connection with 
an action under this section was filed in bad faith or for purposes of 
harassment, the court shall award to the prevailing party attorney's 
fees reasonable in relation to the work expended in responding to the 
pleading, motion, or other paper.''.
            (2) Negligent noncompliance.--Section 617 of the Fair 
        Credit Reporting Act (15 U.S.C. 1681o) is amended by adding at 
        the end the following:
    ``(b) Attorney's Fees.--On a finding by the court that an 
unsuccessful pleading, motion, or other paper filed in connection with 
an action under this section was filed in bad faith or for purposes of 
harassment, the court shall award to the prevailing party attorney's 
fees reasonable in relation to the work expended in responding to the 
pleading, motion, or other paper.''.

SEC. 113. RESPONSIBILITIES OF PERSONS WHO FURNISH INFORMATION TO 
              CONSUMER REPORTING AGENCIES.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.) is amended--
            (1) by redesignating section 623 as section 624; and
            (2) by inserting after section 622 the following:

``SEC. 623. RESPONSIBILITIES OF FURNISHERS OF INFORMATION TO CONSUMER 
              REPORTING AGENCIES.

    ``(a) Duty of Furnishers of Information To Provide Complete and 
Accurate Information.--
            ``(1) Prohibitions.--A person shall not furnish any 
        information relating to a consumer to any consumer reporting 
        agency if the person has been notified by the consumer, in a 
        reasonable manner specified by the person for such notices, 
        that the information is incomplete or inaccurate.
            ``(2) Duty to correct and update information.--A person 
        who--
                    ``(A) regularly and in the ordinary course of 
                business furnishes information to one or more consumer 
                reporting agencies about the person's transactions or 
                experiences with any consumer; and
                    ``(B) has furnished to a consumer reporting agency 
                information that the person determines is not complete 
                or accurate;
        shall promptly notify the consumer reporting agency of that 
        determination and provide to the agency any corrections to that 
        information, or any additional information, that is necessary 
        to make the information provided by the person to the agency 
        complete and accurate, and shall not thereafter furnish to the 
        agency any of the information that remains not complete or 
        accurate.
            ``(3) Duty to provide notice of dispute.--If the 
        completeness or accuracy of any information furnished by any 
        person to any consumer reporting agency is disputed to such 
        person by a consumer, the person may not furnish the 
        information to any consumer reporting agency without notice 
        that such information is disputed by the consumer.
            ``(4) Duty to provide notice of closed accounts.--A person 
        who regularly and in the ordinary course of business furnishes 
        information to a consumer reporting agency regarding a consumer 
        who has a credit account with that person shall notify the 
        agency of the voluntary closure of the account by the consumer, 
        in information regularly furnished for the period in which the 
        account is closed.
            ``(5) Duty to provide notice of delinquency of accounts.--A 
        person who furnishes information to a consumer reporting agency 
        regarding a delinquent account being placed for collection, 
        charged to profit or loss, or subjected to any similar action 
        shall, not later than 90 days after furnishing the information, 
        notify the agency of the month and year of the commencement of 
        the delinquency that immediately preceded the action.
    ``(b) Duties of Furnishers of Information Upon Notice of Dispute.--
            ``(1) In general.--After receiving notice pursuant to 
        section 611(a)(2) of a dispute with regard to the completeness 
        or accuracy of any information provided by a person to a 
        consumer reporting agency, the person shall--
                    ``(A) complete an investigation with respect to the 
                disputed information;
                    ``(B) review all relevant information provided by 
                the consumer reporting agency pursuant to section 
                611(a)(2);
                    ``(C) report the results of the investigation to 
                the consumer reporting agency; and
                    ``(D) if the investigation finds that the 
                information is incomplete or inaccurate, report those 
                results to all other consumer reporting agencies to 
                which the person furnished the information and that 
                compile and maintain files on consumers on a nationwide 
                basis.
            ``(2) Deadline.--A person shall complete all 
        investigations, reviews, and reports required under paragraph 
        (1) regarding information provided by the person to a consumer 
        reporting agency, prior to the expiration of the period under 
        section 611(a)(1) within which the consumer reporting agency is 
        required to complete actions required by that section regarding 
        that information.
    ``(c) Limitation on Liability.--Sections 616 and 617 do not apply 
to any failure to comply with subsection (a), except as provided in 
section 621(c)(1)(B).
    ``(d) Limitation on Enforcement.--Subsection (a) shall be enforced 
exclusively under section 621 by the Federal agencies and officials and 
the State officials identified in that section.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of the Fair Credit Reporting Act (15 U.S.C. 1681a et seq.) is amended 
by striking the item relating to section 623 and inserting the 
following:

``623. Responsibilities of furnishers of information to consumer 
                            reporting agencies.
``624. Relation to State laws.''.

SEC. 114. INVESTIGATIVE CONSUMER REPORTS.

    Section 606 of the Fair Credit Reporting Act (15 U.S.C. 1681d) is 
amended--
            (1) in subsection (a)(1), by striking ``or'' after the 
        semicolon at the end and inserting ``and'';
            (2) by striking subsection (a)(2) and inserting the 
        following:
            ``(2) the person certifies or has certified to the consumer 
        reporting agency that--
                    ``(A) the person has made the disclosures to the 
                consumer required by paragraph (1); and
                    ``(B) the person will comply with subsection 
                (b).'';
            (3) in subsection (b), by striking ``shall'' the second 
        place such term appears; and
            (4) by adding at the end the following:
    ``(d) Prohibitions.--
            ``(1) Certification.--A consumer reporting agency shall not 
        prepare or furnish an investigative consumer report unless the 
        agency has received a certification under subsection (a)(2) 
        from the person who requested the report.
            ``(2) Inquiries.--A consumer reporting agency shall not 
        make an inquiry for the purpose of preparing an investigative 
        consumer report on a consumer for employment purposes if the 
        making of the inquiry by an employer or prospective employer of 
        the consumer would violate any applicable Federal or State 
        equal employment opportunity law or regulation.
            ``(3) Certain public record information.--Except as 
        otherwise provided in section 613, a consumer reporting agency 
        shall not furnish an investigative consumer report that 
        includes information that is a matter of public record and that 
        relates to an arrest, indictment, conviction, civil judicial 
        action, tax lien, or outstanding judgment, unless the agency 
        has verified the accuracy of the information during the 30-day 
        period ending on the date on which the report is furnished.
            ``(4) Certain adverse information.--A consumer reporting 
        agency shall not prepare or furnish an investigative consumer 
        report on a consumer that contains information that is adverse 
        to the interest of the consumer and that is obtained through a 
        personal interview with a neighbor, friend, or associate of the 
        consumer or with another person with whom the consumer is 
        acquainted or who has knowledge of such item of information, 
        unless--
                    ``(A) the agency has followed reasonable procedures 
                to obtain confirmation of the information, from an 
                additional source that has independent and direct 
                knowledge of the information; or
                    ``(B) the person interviewed is the best possible 
                source of the information.''.

SEC. 115. INCREASED CRIMINAL PENALTIES FOR OBTAINING INFORMATION UNDER 
              FALSE PRETENSES.

    (a) Obtaining Information Under False Pretenses.--Section 619 of 
the Fair Credit Reporting Act (15 U.S.C. 1681q) is amended by striking 
``fined not more than $5,000 or imprisoned not more than one year, or 
both'' and inserting ``fined under title 18, United States Code, 
imprisoned for not more than 2 years, or both''.
    (b) Unauthorized Disclosures by Officers or Employees.--Section 620 
of the Fair Credit Reporting Act (15 U.S.C. 1681r) is amended by 
striking ``fined not more than $5,000 or imprisoned not more than one 
year, or both'' and inserting ``fined under title 18, United States 
Code, imprisoned for not more than 2 years, or both''.

SEC. 116. ADMINISTRATIVE ENFORCEMENT.

    (a) Available Enforcement Powers.--Section 621(a) of the Fair 
Credit Reporting Act (15 U.S.C. 1681s(a))--
            (1) is amended in the second sentence by striking ``Act and 
        shall be subject to enforcement by the Federal Trade Commission 
        under section 5(b) thereof with respect to any consumer 
        reporting agency or person subject to enforcement by the 
        Federal Trade Commission pursuant to this subsection, 
        irrespective'' and inserting ``Act. All functions and powers of 
        the Federal Trade Commission under the Federal Trade Commission 
        Act shall be available to the Commission to enforce compliance 
        with this title by any person subject to enforcement by the 
        Federal Trade Commission pursuant to this subsection and not 
        subject to enforcement pursuant to section 8 of the Federal 
        Deposit Insurance Act, irrespective'';
            (2) as amended by paragraph (1), is amended by inserting 
        before the third period the following: ``, including the power 
        to enforce the provisions of this title in the same manner as 
        if the violation had been a violation of any Federal Trade 
        Commission trade regulation rule''; and
            (3) as amended by paragraph (1), is amended by adding after 
        the third period the following: ``Notwithstanding the preceding 
        sentence, a court may not impose any civil penalty on a person 
        for a violation of section 623(a)(1) unless the person has been 
        enjoined from committing the violation, or ordered not to 
        commit the violation, in an action or proceeding brought by or 
        on behalf of the Federal Trade Commission and has violated the 
        injunction or order, and the court may not impose any civil 
        penalty for any violation occurring before the date of the 
        violation of the injunction or order.''.
    (b) Agencies Responsible for Enforcement.--Section 621 of the Fair 
Credit Reporting Act (15 U.S.C. 1681s) is amended--
            (1) in subsection (a), by inserting ``Enforcement by 
        Federal Trade Commission.--'' before ``Compliance with the 
        requirements''; and
            (2) in subsection (b), by striking the matter preceding 
        paragraph (1) and inserting the following:
    ``(b) Enforcement by Other Agencies.--Compliance with the 
requirements imposed under this title with respect to consumer 
reporting agencies, persons who use consumer reports from such 
agencies, persons who furnish information to such agencies, and users 
of information that are subject to subsection (d) or (e) of section 615 
shall be enforced under--''.

SEC. 117. STATE ENFORCEMENT OF FAIR CREDIT REPORTING ACT.

    Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:
    ``(c) State Action for Violations.--
            ``(1) Authority of states.--In addition to such other 
        remedies as are provided under State law, if the chief law 
        enforcement officer of a State, or an official or agency 
        designated by a State, has reason to believe that any person 
        has violated or is violating this title, the State--
                    ``(A) may bring an action to enjoin such violation 
                in any appropriate United States district court or in 
                any other court of competent jurisdiction;
                    ``(B) subject to paragraph (5), may bring an action 
                on behalf of the residents of the State to recover--
                            ``(i) damages for which the person is 
                        liable to such residents under sections 616 and 
                        617 as a result of the violation;
                            ``(ii) in the case of a violation of 
                        section 623(a), damages for which the person 
                        would, but for section 623(c), be liable to 
                        such residents as a result of the violation; or
                            ``(iii) damages of not more than $1,000 for 
                        each willful or negligent violation; and
                    ``(C) in the case of any successful action under 
                subparagraph (A) or (B), shall be awarded the costs of 
                the action and reasonable attorney fees as determined 
                by the court.
            ``(2) Rights of federal regulators.--The State shall serve 
        prior written notice of any action under paragraph (1) upon the 
        Federal Trade Commission or the appropriate Federal regulator 
        determined under subsection (b) and provide the Commission or 
        appropriate Federal regulator with a copy of its complaint, 
        except in any case in which such prior notice is not feasible, 
        in which case the State shall serve such notice immediately 
        upon instituting such action. The Federal Trade Commission or 
        appropriate Federal regulator shall have the right--
                    ``(A) to intervene in the action;
                    ``(B) upon so intervening, to be heard on all 
                matters arising therein;
                    ``(C) to remove the action to the appropriate 
                United States district court; and
                    ``(D) to file petitions for appeal.
            ``(3) Investigatory powers.--For purposes of bringing any 
        action under this subsection, nothing in this subsection shall 
        prevent the chief law enforcement officer, or an official or 
        agency designated by a State, from exercising the powers 
        conferred on the chief law enforcement officer or such official 
        by the laws of such State to conduct investigations or to 
        administer oaths or affirmations or to compel the attendance of 
        witnesses or the production of documentary and other evidence.
            ``(4) Limitation on state action while federal action 
        pending.--If the Federal Trade Commission or the appropriate 
        Federal regulator has instituted a civil action or an 
        administrative action under section 8 of the Federal Deposit 
        Insurance Act for a violation of this title, no State may, 
        during the pendency of such action, bring an action under this 
        section against any defendant named in the complaint of the 
        Commission or the appropriate Federal regulator for any 
        violation of this title that is alleged in that complaint.
            ``(5) Limitations on state actions for violation of section 
        623(a)(1).--
                    ``(A) Violation of injunction required.--A State 
                may not bring an action against a person under 
                paragraph (1)(B) for a violation of section 623(a)(1), 
                unless--
                            ``(i) the person has been enjoined from 
                        committing the violation, in an action brought 
                        by the State under paragraph (1)(A); and
                            ``(ii) the person has violated the 
                        injunction.
                    ``(B) Limitation on damages recoverable.--In an 
                action against a person under paragraph (1)(B) for a 
                violation of section 623(a)(1), a State may not recover 
                any damages incurred before the date of the violation 
                of an injunction on which the action is based.''.

SEC. 118. FEDERAL RESERVE BOARD AUTHORITY.

    Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is 
amended by adding after subsection (d) (as redesignated by section 117) 
the following:
    ``(e) Interpretive Authority.--The Board of Governors of the 
Federal Reserve System may issue interpretations of any provision of 
this title as such provision may apply to any persons identified under 
paragraph (1), (2), and (3) of subsection (b), or to the holding 
companies and affiliates of such persons, in consultation with Federal 
agencies identified in paragraphs (1), (2), and (3) of subsection 
(b).''.

SEC. 119. PREEMPTION OF STATE LAW.

    Section 624 of the Fair Credit Reporting Act (as redesignated by 
section 113(a)) is amended--
            (1) by striking ``This title'' and inserting ``(a) In 
        General.--Except as provided in subsections (b) and (c), this 
        title''; and
            (2) by adding at the end the following:
    ``(b) General Exceptions.--No requirement or prohibition may be 
imposed under the laws of any State--
            ``(1) with respect to any subject matter regulated under--
                    ``(A) subsection (c) or (e) of section 604, 
                relating to the prescreening of consumer reports;
                    ``(B) section 611, relating to the time by which a 
                consumer reporting agency must take any action, 
                including the provision of notification to a consumer 
                or other person, in any procedure related to the 
                disputed accuracy of information in a consumer's file, 
                except that this subparagraph does not apply to any 
                State law in effect on the date of enactment of the 
                Consumer Reporting Reform Act of 1995;
                    ``(C) section 615(a), relating to the duties of a 
                person who takes any adverse action with respect to a 
                consumer on the basis of information contained in a 
                consumer report;
                    ``(D) section 615(d), relating to the duties of 
                persons who use a consumer report of a consumer in 
                connection with any credit or insurance transaction 
                that is not initiated by the consumer and that consists 
                of a firm offer of credit or insurance;
                    ``(E) section 615(e), relating to the duties of 
                persons who use a consumer report of a consumer in 
                connection with any direct marketing transaction that 
                is not initiated by the consumer;
                    ``(F) section 605, relating to information 
                contained in consumer reports, except that this 
                subparagraph does not apply to any State law in effect 
                on the date of enactment of the Consumer Reporting 
                Reform Act of 1995; or
                    ``(G) section 623(b)(2), relating to the time by 
                which a person must take any action required under 
                section 623(b)(1) with respect to an investigation of 
                information furnished by the person to a consumer 
                reporting agency, except that this subparagraph does 
                not apply to any State law in effect on the date of 
                enactment of the Consumer Reporting Reform Act of 1995;
            ``(2) with respect to the exchange of information among 
        persons affiliated by common ownership or common corporate 
        control; or
            ``(3) with respect to the form and content of any 
        disclosure required to be made under section 609(c).
    ``(c) Definition of Firm Offer of Credit or Insurance.--
Notwithstanding any definition of the term `firm offer of credit or 
insurance' (or any equivalent term) under the laws of any State, the 
definition of that term contained in section 603(l) shall be construed 
to apply in the enforcement and interpretation of the laws of any State 
governing consumer reports.
    ``(d) Limitations.--Subsections (b) and (c)--
            ``(1) do not affect any settlement, agreement, or consent 
        judgment between any State Attorney General and any consumer 
        reporting agency in effect on the date of enactment of the 
        Consumer Reporting Reform Act of 1995; and
            ``(2) do not apply to any provision of State law (including 
        any provision of a State constitution) that--
                    ``(A) is enacted after January 1, 2004;
                    ``(B) states explicitly that the provision is 
                intended to supplement this Act; and
                    ``(C) gives greater protection to consumers than is 
                provided under this Act.''.

SEC. 120. ACTION BY FTC AND FEDERAL RESERVE BOARD.

    (a) Modification of Requirements by FTC and Federal Reserve Board 
Authorized.--
            (1) In general.--Section 621 of the Fair Credit Reporting 
        Act (15 U.S.C. 1681s) is amended by adding after subsection (e) 
        (as added by section 118) the following:
    ``(f) Modification of Requirements by FTC Authorized.--
            ``(1) In general.--If the Federal Trade Commission 
        considers such action necessary for the protection of 
        consumers, the Commission may, after consultation with 
        appropriate State regulatory and law enforcement agencies, 
        promulgate regulations in accordance with section 553 of title 
        5, United States Code, to impose, with respect to consumer 
        reporting agencies and all other persons subject to this title 
        other than any person described in paragraph (1), (2), or (3) 
        of subsection (b), requirements--
                    ``(A) that are more stringent than those imposed 
                under--
                            ``(i) section 611, relating to the time by 
                        which a consumer reporting agency must take any 
                        action, including the provision of notification 
                        to a consumer or other person, in any procedure 
                        related to the disputed accuracy of information 
                        in a consumer's file;
                            ``(ii) section 615(a), relating to the 
                        duties of a person who takes any adverse action 
                        with respect to a consumer on the basis of 
                        information contained in a consumer report;
                            ``(iii) section 615(d), relating to the 
                        duties of persons who use a consumer report on 
                        a consumer in connection with any credit or 
                        insurance transaction that is not initiated by 
                        the consumer and that consists of a firm offer 
                        of credit or insurance; or
                            ``(iv) section 623(b)(2), relating to the 
                        time by which a person must take any action 
                        required under section 623(b)(1) with respect 
                        to an investigation of information furnished by 
                        the person to a consumer reporting agency; and
                    ``(B) with respect to the form and content of any 
                disclosure required to be made under section 609(c).
            ``(2) Federal reserve board authority.--If the Board of 
        Governors of the Federal Reserve System determines such action 
        to be necessary for the protection of consumers, the Board may 
        prescribe regulations imposing on persons described in 
        paragraph (1), (2), or (3) of subsection (b) or on the holding 
        companies and affiliates of such persons, any requirement 
        described in paragraph (1) of this subsection.''.
            (2) Conforming amendments.--
                    (A) The section heading and section designation for 
                section 621 of the Fair Credit Reporting Act (15 U.S.C. 
                1681s) are amended to read as follows:

``SEC. 621. ADMINISTRATIVE ENFORCEMENT AND AUTHORITIES; STATE 
              ACTIONS.''.

                    (B) The table of sections at the beginning of the 
                Fair Credit Reporting Act is amended by striking the 
                item relating to section 621 and inserting the 
                following:

``621. Administrative enforcement and authorities; State actions.''.
    (b) Deadline To Prescribe Matters.--The Federal Trade Commission 
shall prescribe all matters required by this title (including the 
amendments made by this title) to be prescribed by that Commission, 
before the end of the 300-day period beginning on the date of enactment 
of this Act.

SEC. 121. AMENDMENT TO FAIR DEBT COLLECTION PRACTICES ACT.

    Section 807(11) of the Fair Debt Collection Practices Act (15 
U.S.C. 1692e), relating to certain practices constituting prohibited 
representations, is amended to read as follows:
            ``(11) The failure to disclose clearly, in any written 
        communication made to collect a debt or to obtain information 
        about a consumer, that the debt collector is attempting to 
        collect a debt and that any information obtained will be used 
        for that purpose, except that this paragraph does not apply to 
        a communication--
                    ``(A) to acquire location information in accordance 
                with section 804;
                    ``(B) made solely to acknowledge receipt of monies 
                or payments;
                    ``(C) that consists solely of information requested 
                by the consumer or the consumer's attorney; or
                    ``(D) that is a formal pleading made in connection 
                with a legal action.''.

SEC. 122. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES RELATING TO 
              CHILD SUPPORT.

    Section 604(a) of the Fair Credit Reporting Act (15 U.S.C. 1681b) 
is amended (as so designated by section 103) by adding at the end the 
following:
            ``(4) In response to a request by the head of a department, 
        agency, or office of any State or any political subdivision of 
        any State that is responsible under law for enforcing child 
        support orders (or an official authorized by the head of any 
        such department, agency, or office), if the person making the 
        request certifies to the consumer reporting agency that--
                    ``(A) the consumer report is needed to establish an 
                individual's capacity to make child support payments, 
                or to determine the appropriate level of such payments;
                    ``(B) the person has provided not less than 10 days 
                prior written notice to the consumer whose report is 
                requested, by certified or registered mail to the last 
                known address of the consumer, that the report will be 
                requested; and
                    ``(C) the consumer report obtained pursuant to this 
                paragraph will be kept confidential, will be used 
                solely for establishing child support payment 
                obligations, and will not be used in connection with 
                any other civil, administrative, or criminal proceeding 
                or for any other purpose.''.

SEC. 123. DISCLOSURE OF INFORMATION AND CONSUMER REPORTS TO FBI FOR 
              COUNTERINTELLIGENCE PURPOSES.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.) is amended by adding after section 624 (as redesignated by 
section 113(a)) the following:

``SEC. 625. DISCLOSURES TO FBI FOR COUNTERINTELLIGENCE PURPOSES.

    ``(a) Identity of Financial Institutions.--Notwithstanding section 
604 or any other provision of this title, a consumer reporting agency 
shall furnish to the Federal Bureau of Investigation the names and 
addresses of all financial institutions (as that term is defined in 
section 1101 of the Right to Financial Privacy Act of 1978) at which a 
consumer maintains or has maintained an account, to the extent that 
information is in the files of the agency, when presented with a 
written request for that information, signed by the Director of the 
Federal Bureau of Investigation, or the Director's designee, that 
certifies compliance with this section. The Director or the Director's 
designee may make such a certification only if the Director or the 
Director's designee has determined in writing that--
            ``(1) such information is necessary for the conduct of an 
        authorized foreign counterintelligence investigation; and
            ``(2) there are specific and articulable facts giving 
        reason to believe that the consumer--
                    ``(A) is a foreign power (as defined in section 101 
                of the Foreign Intelligence Surveillance Act of 1978) 
                or a person who is not a United States person (as 
                defined in such section 101) and is an official of a 
                foreign power; or
                    ``(B) is an agent of a foreign power and is 
                engaging or has engaged in international terrorism (as 
                that term is defined in section 101(c) of the Foreign 
                Intelligence Surveillance Act of 1978) or clandestine 
                intelligence activities that involve or may involve a 
                violation of criminal statutes of the United States.
    ``(b) Identifying Information.--Notwithstanding the provisions of 
section 604 or any other provision of this title, a consumer reporting 
agency shall furnish identifying information respecting a consumer, 
limited to name, address, former addresses, places of employment, or 
former places of employment, to the Federal Bureau of Investigation 
when presented with a written request, signed by the Director or the 
Director's designee, that certifies compliance with this subsection. 
The Director or the Director's designee may make such a certification 
only if the Director or the Director's designee has determined in 
writing that--
            ``(1) such information is necessary to the conduct of an 
        authorized counterintelligence investigation; and
            ``(2) there is information giving reason to believe that 
        the consumer has been, or is about to be, in contact with a 
        foreign power or an agent of a foreign power (as defined in 
        section 101 of the Foreign Intelligence Surveillance Act of 
        1978).
    ``(c) Court Order for Disclosure of Consumer Reports.--
Notwithstanding section 604 or any other provision of this title, if 
requested in writing by the Director of the Federal Bureau of 
Investigation, or a designee of the Director, a court may issue an 
order ex parte directing a consumer reporting agency to furnish a 
consumer report to the Federal Bureau of Investigation, upon a showing 
in camera that--
            ``(1) the consumer report is necessary for the conduct of 
        an authorized foreign counterintelligence investigation; and
            ``(2) there are specific and articulable facts giving 
        reason to believe that the consumer whose consumer report is 
        sought--
                    ``(A) is an agent of a foreign power; and
                    ``(B) is engaging or has engaged in international 
                terrorism (as that term is defined in section 101(c) of 
                the Foreign Intelligence Surveillance Act of 1978) or 
                clandestine intelligence activities that involve or may 
                involve a violation of criminal statutes of the United 
                States.
The terms of an order issued under this subsection shall not disclose 
that the order is issued for purposes of a counterintelligence 
investigation.
    ``(d) Confidentiality.--No consumer reporting agency or officer, 
employee, or agent of a consumer reporting agency shall disclose to any 
person, other than those officers, employees, or agents of a consumer 
reporting agency necessary to fulfill the requirement to disclose 
information to the Federal Bureau of Investigation under this section, 
that the Federal Bureau of Investigation has sought or obtained the 
identity of financial institutions or a consumer report respecting any 
consumer under subsection (a), (b), or (c) and no consumer reporting 
agency or officer, employee, or agent of a consumer reporting agency 
shall include in any consumer report any information that would 
indicate that the Federal Bureau of Investigation has sought or 
obtained such information or a consumer report.
    ``(e) Payment of Fees.--The Federal Bureau of Investigation shall, 
subject to the availability of appropriations, pay to the consumer 
reporting agency assembling or providing reports or information in 
accordance with procedures established under this section, a fee for 
reimbursement for such costs as are reasonably necessary and that have 
been directly incurred in searching, reproducing, or transporting 
books, papers, records, or other data required or requested to be 
produced under this section.
    ``(f) Limit on Dissemination.--The Federal Bureau of Investigation 
may not disseminate information obtained pursuant to this section 
outside of the Federal Bureau of Investigation, except to the 
Department of Justice as may be necessary for the approval or conduct 
of a foreign counterintelligence investigation, or, if the information 
concerns a person subject to the Uniform Code of Military Justice, to 
appropriate investigative authorities within the military department 
concerned as may be necessary for the conduct of a joint foreign 
counterintelligence investigation.
    ``(g) Rules of Construction.--Nothing in this section shall be 
construed to prohibit information from being furnished by the Federal 
Bureau of Investigation pursuant to a subpoena or court order, or in 
connection with a judicial or administrative proceeding to enforce this 
Act. Nothing in this section shall be construed to authorize or permit 
the withholding of information from the Congress.
    ``(h) Reports to Congress.--On a semiannual basis, the Attorney 
General of the United States shall fully inform--
            ``(1) the Permanent Select Committee on Intelligence and 
        the Committee on Banking and Financial Services of the House of 
        Representatives; and
            ``(2) the Select Committee on Intelligence and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate;
concerning all requests made pursuant to subsections (a), (b), and (c).
    ``(i) Damages.--Any agency or department of the United States 
obtaining or disclosing any consumer reports, records, or information 
contained therein in violation of this section is liable to the 
consumer to whom such consumer reports, records, or information relate 
in an amount equal to the sum of--
            ``(1) $100, without regard to the volume of consumer 
        reports, records, or information involved;
            ``(2) any actual damages sustained by the consumer as a 
        result of the disclosure;
            ``(3) if the violation is found to have been willful or 
        intentional, such punitive damages as a court may allow; and
            ``(4) in the case of any successful action to enforce 
        liability under this subsection, the costs of the action, 
        together with reasonable attorney fees, as determined by the 
        court.
    ``(j) Disciplinary Actions for Violations.--If a court determines 
that any agency or department of the United States has violated any 
provision of this section and the court finds that the circumstances 
surrounding the violation raise questions of whether or not an officer 
or employee of the agency or department acted willfully or 
intentionally with respect to the violation, the agency or department 
shall promptly initiate a proceeding to determine whether or not 
disciplinary action is warranted against the officer or employee that 
was responsible for the violation.
    ``(k) Good-Faith Exception.--Notwithstanding any other provision of 
this title, any consumer reporting agency or agent or employee thereof 
making disclosure of consumer reports or identifying information 
pursuant to this subsection in good-faith reliance upon a certification 
of the Federal Bureau of Investigation pursuant to provisions of this 
section shall not be liable to any person for such disclosure under 
this title, the constitution of any State, or any law or regulation of 
any State or any political subdivision of any State.
    ``(l) Limitation of Remedies.--Notwithstanding any other provision 
of this title, the remedies and sanctions set forth in this section 
shall be the only judicial remedies and sanctions for violation of this 
section.
    ``(m) Injunctive Relief.--In addition to any other remedy contained 
in this section, injunctive relief shall be available to require 
compliance with the procedures of this section. In the event of any 
successful action under this subsection, costs together with reasonable 
attorney fees, as determined by the court, may be recovered.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of the Fair Credit Reporting Act (15 U.S.C. 1681a et seq.) (as amended 
by section 114(b)) is amended by adding after the item relating to 
section 624 the following:

``625. Disclosures to FBI for counterintelligence purposes.''.
    (c) Repeal.--
            (1) In general.--Section 625 of the Fair Credit Reporting 
        Act (as added by this section) is repealed.
            (2) Conforming amendment.--The table of sections at the 
        beginning of the Fair Credit Reporting Act (15 U.S.C. 1681a et 
        seq.) (as amended by this Act) is amended by striking the item 
        relating to section 625.

SEC. 124. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsections (b) and (c), the 
amendments made by this title shall take effect 365 days after the date 
of enactment of this Act.
    (b) Exceptions.--
            (1) The amendment made by section 121 shall take effect 90 
        days after the date of enactment of this Act.
            (2) The amendments made by subsections (a) and (b) of 
        section 123 shall take effect on the date of enactment of this 
        Act.
            (3) Subsection (c) of section 123 shall take effect on the 
        date that is 5 years after the date of enactment of this Act.
    (c) Early Compliance.--With respect to any person or other entity 
that is subject to the requirements of this Act, if the Federal Trade 
Commission makes a determination that such person or entity is in 
compliance with any provision of this Act prior to the effective date 
specified in subsection (a), each of the corresponding provisions of 
this Act shall be fully applicable to such person or entity.

SEC. 125. RELATIONSHIP TO OTHER LAW.

    Nothing in this title or the amendments made by this Act shall be 
considered to supersede or otherwise affect section 2721 of title 18, 
United States Code, with respect to motor vehicle records for surveys, 
marketing, or solicitations.

SEC. 126. TECHNICAL CORRECTION TO DEPOSITORY INSTITUTIONS MANAGEMENT 
              INTERLOCKS ACT.

    Section 209(c)(1)(C) of the Depository Institution Management 
Interlocks Act (12 U.S.C. 3207(c)(1)(C)) is amended by inserting ``or 
institutions'' after ``newly chartered institutions''.

                 TITLE II--CREDIT REPAIR ORGANIZATIONS

SEC. 201. REGULATION OF CREDIT REPAIR ORGANIZATIONS.

    Title IV of the Consumer Credit Protection Act is amended to read 
as follows:

                ``TITLE IV--CREDIT REPAIR ORGANIZATIONS

``Sec.
``401. Short title.
``402. Findings and purposes.
``403. Definitions.
``404. Prohibited practices.
``405. Disclosures.
``406. Credit repair organizations contracts.
``407. Right to cancel contract.
``408. Noncompliance with this title.
``409. Civil liability.
``410. Administrative enforcement.
``411. Statute of limitations.
``412. Relation to State law.
``413. Effective date.

``SEC. 401. SHORT TITLE.

    ``This title may be cited as the `Credit Repair Organizations Act'.

``SEC. 402. FINDINGS AND PURPOSES.

    ``(a) Findings.--The Congress makes the following findings:
            ``(1) Consumers have a vital interest in establishing and 
        maintaining their creditworthiness and credit standing in order 
        to obtain and use credit. As a result, consumers who have 
        experienced credit problems may seek assistance from credit 
        repair organizations which offer to improve the credit standing 
        of such consumers.
            ``(2) Certain advertising and business practices of some 
        companies engaged in the business of credit repair services 
        have worked a financial hardship upon consumers, particularly 
        those of limited economic means and those who are inexperienced 
        in credit matters.
    ``(b) Purposes.--The purposes of this title are as follows:
            ``(1) To ensure that prospective buyers of the services of 
        credit repair organizations are provided with the information 
        necessary to make an informed decision regarding the purchase 
        of such services.
            ``(2) To protect the public from unfair or deceptive 
        advertising and business practices by credit repair 
        organizations.

``SEC. 403. DEFINITIONS.

    ``For purposes of this title, the following definitions shall 
apply:
            ``(1) Consumer.--The term `consumer' means an individual.
            ``(2) Consumer credit transaction.--The term `consumer 
        credit transaction' means any transaction in which credit is 
        offered or extended to an individual for personal, family, or 
        household purposes.
            ``(3) Credit repair organization.--The term `credit repair 
        organization'--
                    ``(A) means any person who uses any instrumentality 
                of interstate commerce or the mails to sell, provide, 
                or perform (or represent that such person can or will 
                sell, provide, or perform) any service, in return for 
                the payment of money or other valuable consideration, 
                for the express or implied purpose of--
                            ``(i) improving any consumer's credit 
                        record, credit history, or credit rating; or
                            ``(ii) providing advice or assistance to 
                        any consumer with regard to any activity or 
                        service described in clause (i); and
                    ``(B) does not include--
                            ``(i) any nonprofit organization that is 
                        exempt from taxation under section 501(c)(3) of 
                        the Internal Revenue Code of 1986;
                            ``(ii) any attorney-at-law who is a member 
                        of the bar of the highest court of any State or 
                        otherwise licensed under the laws of any State, 
                        with respect to services rendered that are 
                        within the scope of regulations applicable to 
                        members of such bar or such licensees; or
                            ``(iii) any creditor (as defined in section 
                        103 of the Truth in Lending Act), with respect 
                        to any consumer, to the extent the creditor is 
                        assisting the consumer to restructure any debt 
                        owed by the consumer to the creditor.
            ``(4) Credit.--The term `credit' has the same meaning as in 
        section 103(e).

``SEC. 404. PROHIBITED PRACTICES.

    ``(a) In General.--No person may--
            ``(1) make any statement, or counsel or advise any consumer 
        to make any statement, that is untrue or misleading (or that, 
        upon the exercise of reasonable care, should be known by the 
        credit repair organization, officer, employee, agent, or other 
        person to be untrue or misleading) with respect to any 
        consumer's creditworthiness, credit standing, or credit 
        capacity to--
                    ``(A) any consumer reporting agency (as such term 
                is defined in section 603(f)); or
                    ``(B) any person--
                            ``(i) who has extended credit to the 
                        consumer; or
                            ``(ii) to whom the consumer has applied or 
                        is applying for an extension of credit;
            ``(2) make any statement, or counsel or advise any consumer 
        to make any statement, the intended effect of which is to alter 
        the consumer's identification to prevent the display of the 
        consumer's credit record, history, or rating for the purpose of 
        concealing adverse information that is accurate and not 
        obsolete to--
                    ``(A) any consumer reporting agency; or
                    ``(B) any person--
                            ``(i) who has extended credit to the 
                        consumer; or
                            ``(ii) to whom the consumer has applied or 
                        is applying for an extension of credit;
            ``(3) make or use any untrue or misleading representation 
        of the services of the credit repair organization; or
            ``(4) engage, directly or indirectly, in any act, practice, 
        or course of business that constitutes or results in the 
        commission of, or an attempt to commit, a fraud or deception on 
        any person in connection with the offer or sale of the services 
        of the credit repair organization.
    ``(b) Payment in Advance.--No credit repair organization may charge 
or receive any money or other valuable consideration for the 
performance of any service that the credit repair organization has 
agreed to perform for any consumer before such service is fully 
performed.

``SEC. 405. DISCLOSURES.

    ``(a) Disclosure Required.--Any credit repair organization shall 
provide any consumer with the following written statement before any 
contract or agreement between the consumer and the credit repair 
organization is executed:

       ```Consumer Credit File Rights Under State and Federal Law

    ```You have a right to dispute inaccurate information in your 
credit report by contacting the credit bureau directly. However, 
neither you nor any ``credit repair'' company or credit repair 
organization has the right to have accurate, current, and verifiable 
information removed from your credit report. The credit bureau must 
remove accurate, negative information from your report only if the 
information is over 7 years old. Bankruptcy information can be reported 
for 10 years.
    ```You have a right to obtain a copy of your credit report from a 
credit bureau. You may be charged a reasonable fee. There is no fee, 
however, if you have been turned down for credit, employment, 
insurance, or a rental dwelling because of information in your credit 
report during the preceding 60-day period. The credit bureau must 
provide someone to help you interpret the information in your credit 
file. You are entitled to receive a free copy of your credit report if 
you are unemployed and intend to apply for employment in the next 60 
days, if you are a recipient of public welfare assistance, or if you 
have reason to believe that there is inaccurate information in your 
credit report due to fraud.
    ```You have a right to sue a credit repair organization that 
violates the Credit Repair Organization Act. This law prohibits 
deceptive practices by credit repair organizations.
    ```You have the right to cancel your contract with any credit 
repair organization for any reason within 3 business days from the date 
on which you signed the contract.
    ```Credit bureaus are required to follow reasonable procedures to 
ensure that the information they report is accurate. However, mistakes 
may occur.
    ```You may, on your own, notify a credit bureau in writing that you 
dispute the accuracy of information in your credit file. The credit 
bureau must then reinvestigate and modify or remove inaccurate or 
incomplete information. The credit bureau may not charge any fee for 
this service. Any pertinent information and copies of all documents you 
have concerning an error should be given to the credit bureau.
    ```If the credit bureau's reinvestigation does not resolve the 
dispute to your satisfaction, you may send a brief statement to the 
credit bureau, to be kept in your file, explaining why you think the 
record is inaccurate. The credit bureau must include a summary of your 
statement about disputed information with any report the credit bureau 
issues about you.
    ```The Federal Trade Commission regulates credit bureaus and credit 
repair organizations. For more information contact:

                      The Public Reference Branch

                        Federal Trade Commission

                        Washington, D.C. 20580'.

    ``(b) Separate Statement Requirement.--The written statement 
required under this section shall be provided as a document that is 
separate from any written contract or other agreement between the 
credit repair organization and the consumer or any other written 
material provided to the consumer.
    ``(c) Retention of Compliance Records.--
            ``(1) In general.--The credit repair organization shall 
        maintain a copy of the statement signed by the consumer 
        acknowledging receipt of the statement.
            ``(2) Maintenance for 2 years.--The copy of any consumer's 
        statement shall be maintained in the organization's files for 2 
        years after the date on which the statement is signed by the 
        consumer.

``SEC. 406. CREDIT REPAIR ORGANIZATIONS CONTRACTS.

    ``(a) Written Contracts Required.--No services may be provided by 
any credit repair organization for any consumer--
            ``(1) unless a written and dated contract (for the purchase 
        of such services) that meets the requirements of subsection (b) 
        has been signed by the consumer; or
            ``(2) before the end of the 3-business-day period beginning 
        on the date on which the contract is signed.
    ``(b) Terms and Conditions of Contract.--No contract referred to in 
subsection (a) meets the requirements of this subsection unless such 
contract includes the following information (in writing):
            ``(1) The terms and conditions of payment, including the 
        total amount of all payments to be made by the consumer to the 
        credit repair organization or to any other person.
            ``(2) A full and detailed description of the services to be 
        performed by the credit repair organization for the consumer, 
        including--
                    ``(A) all guarantees of performance; and
                    ``(B) an estimate of--
                            ``(i) the date by which the performance of 
                        the services (to be performed by the credit 
                        repair organization or any other person) will 
                        be complete; or
                            ``(ii) the length of the period necessary 
                        to perform such services.
            ``(3) The credit repair organization's name and principal 
        business address.
            ``(4) A conspicuous statement in bold face type, in 
        immediate proximity to the space reserved for the consumer's 
        signature on the contract, which reads as follows: `You may 
        cancel this contract without penalty or obligation at any time 
        before midnight of the third business day after the date on 
        which you signed the contract. See the attached notice of 
        cancellation form for an explanation of this right.'.

``SEC. 407. RIGHT TO CANCEL CONTRACT.

    ``(a) In General.--Any consumer may cancel any contract with any 
credit repair organization without penalty or obligation by notifying 
the credit repair organization of the consumer's intention to do so at 
any time before midnight of the third business day that begins after 
the date on which the contract or agreement between the consumer and 
the credit repair organization is executed or would, but for this 
subsection, become enforceable against the parties.
    ``(b) Cancellation Form and Other Information.--Each contract shall 
be accompanied by a form, in duplicate, that has the heading `Notice of 
Cancellation' and contains in bold face type the following statement:
            ```You may cancel this contract, without any penalty or 
        obligation, at any time before midnight of the third day that 
        begins after the date on which the contract is signed by you.
            ```To cancel this contract, mail or deliver a signed, dated 
        copy of this cancellation notice, or any other written notice 
        to [ name of credit repair organization ] at [ address of 
        credit repair organization ] before midnight on [ date ]
            ```I hereby cancel this transaction,
            [ date ]
            [ purchaser's signature ].'.
    ``(c) Consumer Copy of Contract Required.--Any consumer who enters 
into any contract with any credit repair organization shall be given, 
by the organization--
            ``(1) a copy of the completed contract and the disclosure 
        statement required under section 405; and
            ``(2) a copy of any other document the credit repair 
        organization requires the consumer to sign,
at the time the contract or the other document is signed.

``SEC. 408. NONCOMPLIANCE WITH THIS TITLE.

    ``(a) Consumer Waivers Invalid.--Any waiver by any consumer of any 
protection provided by or any right of the consumer under this title--
            ``(1) shall be treated as void; and
            ``(2) may not be enforced by any Federal or State court or 
        any other person.
    ``(b) Attempt To Obtain Waiver.--Any attempt by any person to 
obtain a waiver from any consumer of any protection provided by or any 
right of the consumer under this title shall be treated as a violation 
of this title.
    ``(c) Contracts Not in Compliance.--Any contract for services that 
does not comply with the applicable provisions of this title--
            ``(1) shall be treated as void; and
            ``(2) may not be enforced by any Federal or State court or 
        any other person.

``SEC. 409. CIVIL LIABILITY.

    ``(a) Liability Established.--Any person who fails to comply with 
any provision of this title with respect to any other person shall be 
liable to such person in an amount equal to the sum of the amounts 
determined under each of the following paragraphs:
            ``(1) Actual damages.--The greater of--
                    ``(A) the amount of any actual damage sustained by 
                such person as a result of such failure; or
                    ``(B) any amount paid by the person to the credit 
                repair organization.
            ``(2) Punitive damages.--
                    ``(A) Individual actions.--In the case of any 
                action by an individual, such additional amount as the 
                court may allow.
                    ``(B) Class actions.--In the case of a class 
                action, the sum of--
                            ``(i) the aggregate of the amount that the 
                        court may allow for each named plaintiff; and
                            ``(ii) the aggregate of the amount that the 
                        court may allow for each other class member, 
                        without regard to any minimum individual 
                        recovery.
            ``(3) Attorneys' fees.--In the case of any successful 
        action to enforce any liability under paragraph (1) or (2), the 
        costs of the action, together with reasonable attorneys' fees.
    ``(b) Factors To Be Considered in Awarding Punitive Damages.--In 
determining the amount of any liability of any credit repair 
organization under subsection (a)(2), the court shall consider, among 
other relevant factors--
            ``(1) the frequency and persistence of noncompliance by the 
        credit repair organization;
            ``(2) the nature of the noncompliance;
            ``(3) the extent to which such noncompliance was 
        intentional; and
            ``(4) in the case of any class action, the number of 
        consumers adversely affected.

``SEC. 410. ADMINISTRATIVE ENFORCEMENT.

    ``(a) In General.--Compliance with the requirements imposed under 
this title with respect to credit repair organizations shall be 
enforced under the Federal Trade Commission Act by the Federal Trade 
Commission.
    ``(b) Violations of This Title Treated as Violations of Federal 
Trade Commission Act.--
            ``(1) In general.--For the purpose of the exercise by the 
        Federal Trade Commission of the Commission's functions and 
        powers under the Federal Trade Commission Act, any violation of 
        any requirement or prohibition imposed under this title with 
        respect to credit repair organizations shall constitute an 
        unfair or deceptive act or practice in commerce in violation of 
        section 5(a) of the Federal Trade Commission Act.
            ``(2) Enforcement authority under other law.--All functions 
        and powers of the Federal Trade Commission under the Federal 
        Trade Commission Act shall be available to the Commission to 
        enforce compliance with this title by any person subject to 
        enforcement by the Federal Trade Commission pursuant to this 
        subsection, including the power to enforce the provisions of 
        this title in the same manner as if the violation had been a 
        violation of any Federal Trade Commission trade regulation 
        rule, without regard to whether the credit repair 
        organization--
                    ``(A) is engaged in commerce; or
                    ``(B) meets any other jurisdictional tests in the 
                Federal Trade Commission Act.
    ``(c) State Action for Violations.--
            ``(1) Authority of states.--In addition to such other 
        remedies as are provided under State law, if the chief law 
        enforcement officer of a State, or an official or agency 
        designated by a State, has reason to believe that any person 
        has violated or is violating this title, the State--
                    ``(A) may bring an action to enjoin such violation;
                    ``(B) may bring an action on behalf of the 
                residents of the State to recover damages for which the 
                person is liable to such residents under section 409 as 
                a result of the violation; and
                    ``(C) in the case of any successful action under 
                subparagraph (A) or (B), shall be awarded the costs of 
                the action and reasonable attorney fees as determined 
                by the court.
            ``(2) Rights of commission.--
                    ``(A) Notice to commission.--The State shall serve 
                prior written notice of any civil action under 
                paragraph (1) upon the Federal Trade Commission and 
                provide the Commission with a copy of its complaint, 
                except in any case in which such prior notice is not 
                feasible, in which case the State shall serve such 
                notice immediately upon instituting such action.
                    ``(B) Intervention.--The Commission shall have the 
                right--
                            ``(i) to intervene in any action referred 
                        to in subparagraph (A);
                            ``(ii) upon so intervening, to be heard on 
                        all matters arising in the action; and
                            ``(iii) to file petitions for appeal.
            ``(3) Investigatory powers.--For purposes of bringing any 
        action under this subsection, nothing in this subsection shall 
        prevent the chief law enforcement officer, or an official or 
        agency designated by a State, from exercising the powers 
        conferred on the chief law enforcement officer or such official 
        by the laws of such State to conduct investigations or to 
        administer oaths or affirmations or to compel the attendance of 
        witnesses or the production of documentary and other evidence.
            ``(4) Limitation.--If the Federal Trade Commission has 
        instituted a civil action for violation of this title, no State 
        may, during the pendency of such action, bring an action under 
        this section against any defendant named in the complaint of 
        the Commission for any violation of this title that is alleged 
        in that complaint.

``SEC. 411. STATUTE OF LIMITATIONS.

    ``Any action to enforce any liability under this title may be 
brought before the later of--
            ``(1) the end of the 2-year period beginning on the date of 
        the occurrence of the violation involved; or
            ``(2) in any case in which any credit repair organization 
        has materially and willfully misrepresented any information 
        that--
                    ``(A) the credit repair organization is required, 
                by any provision of this title, to disclose to any 
                consumer; and
                    ``(B) is material to the establishment of the 
                credit repair organization's liability to the consumer 
                under this title,
        the end of the 2-year period beginning on the date of the 
        discovery by the consumer of the misrepresentation.

``SEC. 412. RELATION TO STATE LAW.

    ``This title shall not annul, alter, affect, or exempt any person 
subject to the provisions of this title from complying with any law of 
any State except to the extent that such law is inconsistent with any 
provision of this title, and then only to the extent of the 
inconsistency.

``SEC. 413. EFFECTIVE DATE.

    ``This title shall apply after the expiration of the 6-month period 
beginning on the date of enactment of the Credit Repair Organizations 
Act, except with respect to contracts entered into by a credit repair 
organization before the end of such period.''.

                    TITLE III--TRUTH IN LENDING ACT

SEC. 301. TREATMENT OF DELIVERY FEES AND INTANGIBLES TAXES.

    (a) In General.--Section 106(a) of the Truth in Lending Act (15 
U.S.C. 1605) is amended by adding at the end the following:
            ``(6) Taxes levied on security instruments or on documents 
        evidencing indebtedness if such taxes must be paid as a 
        precondition to recording the instrument securing the evidence 
        of indebtedness.''.
    (b) Excluded Fees.--Section 106(e) of the Truth in Lending Act (15 
U.S.C. 1605(e)) is amended by inserting ``, if bona fide and 
reasonable'' before the colon.
    (c) Fees for Delivery Charges.--Section 106(e) of the Truth in 
Lending Act (15 U.S.C. 1605(e)) is amended by adding at the end the 
following:
            ``(7) Fees for delivery charges.--Fees for delivery charges 
        imposed by third parties (including settlement agents, 
        attorneys, and escrow and title companies) if the creditor does 
        not retain the charges and the fees do not exceed $20 per 
        delivery, or $50 per consumer transaction.''.
    (d) Applicability.--The amendments made by this section shall apply 
to any consumer credit transaction consummated on or after February 1, 
1996.

SEC. 302. LIMITATIONS ON LIABILITY.

    (a) In General.--Chapter 2 of the Truth in Lending Act (15 U.S.C. 
1631 et seq.) is amended by adding at the end the following:

``SEC. 139. CERTAIN LIMITATIONS ON LIABILITY.

    ``(a) In General.--For any transaction consummated prior to 
February 1, 1996, a creditor or assignee shall have no civil or 
criminal liability under this title, nor shall a consumer have extended 
rescission rights under section 125, due to a creditor's improper 
disclosure of--
            ``(1) delivery charges actually and reasonably imposed by 
        the creditor, or any delivery charges imposed by third parties 
        (including settlement agents, attorneys, and escrow and title 
        companies), if the creditor does not retain the charges; or
            ``(2) taxes levied on security instruments or documents 
        evidencing indebtedness.
    ``(b) Applicability.--Subsection (a) does not apply to--
            ``(1) any individual action or counterclaim brought under 
        this title filed prior to October 1, 1995, that alleged (prior 
        to such date) improper disclosure of delivery charges or taxes;
            ``(2) any class action brought under this title in which a 
        class was certified prior to October 1, 1995, that alleged 
        (prior to such date) improper disclosure of delivery charges or 
        taxes;
            ``(3) the named individual plaintiffs in any class action 
        filed under this title prior to October 1, 1995, that alleged 
        (prior to such date) improper disclosure of delivery charges or 
        taxes; or
            ``(4) any consumer credit transaction in which a notice of 
        rescission was sent to the creditor prior to October 1, 
        1995.''.
    (b) Amendment to the Table of Sections.--The table of sections for 
chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et seq.) is 
amended by inserting after the item relating to section 138 the 
following:

``139. Certain limitations on liability.''.
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