[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4332 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4332

To protect consumers from exorbitant fees for basic financial services, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 2000

 Ms. Schakowsky (for herself, Mr. Hinchey, Ms. Waters, and Mr. Markey) 
 introduced the following bill; which was referred to the Committee on 
  Banking and Financial Services, and in addition to the Committee on 
Commerce, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To protect consumers from exorbitant fees for basic financial services, 
                        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. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Financial 
Consumers' Bill of Rights Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec.  1. Short title; table of contents.
Sec.  2. Findings and purpose.
Sec.  3. Prohibition on exorbitant late fees on credit card accounts.
Sec.  4. Prohibition on exorbitant fees for bounced checks.
Sec.  5. Fair ATM fees for consumers.
Sec.  6. Lifeline banking examination required under Community 
                            Reinvestment Act of 1977.
Sec.  7. Preservation of bank fee report requirements.
Sec.  8. Prohibition on arbitration clauses imposed on consumers 
                            without their consent.
Sec.  9. Amendment to privacy provisions of the Gramm-Leach-Bliley Act.
Sec. 10. Improved availability of antifraud hotline information.
Sec. 11. Commission on alternatives to the use of Social Security 
                            numbers as identifying numbers in public 
                            records.
Sec. 12. Three free teller transactions monthly.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress makes the following findings:
            (1) A survey conducted jointly by the Consumer Federation 
        of America and Consumer Action 1998 found that 67 of 116 credit 
        card issuers charged late fees in excess of $25 while only two 
        of the credit card issuers surveyed charged no late fee at all.
            (2) The 1998 annual survey of Illinois voters by the 
        Coalition for Consumer Rights found that 77 percent of the 
        voters supported a ban on surcharges on a consumer for the use 
        of an automated teller machine operated by a financial 
        institution other than the institution holding the accounts of 
        the consumer.
            (3) The 1999 survey of bank fees entitled ``Big Banks, 
        Bigger Fees'' by the United States Public Interest Research 
        Group found that large banks increased the fee imposed on 
        consumers for writing checks on insufficient funds by 10 
        percent from 1997 to 1999.

SEC. 3. PROHIBITION ON EXORBITANT LATE FEES ON CREDIT CARD ACCOUNTS.

    (a) In General.--Section 127 of the Truth in Lending Act (15 U.S.C. 
1637) is amended by adding at the end the following new subsection:
    ``(h) Limitation on Late Fees.--
            ``(1) In general.--In the case of any credit card account 
        under an open-end consumer credit plan, the amount of any fee 
        or additional finance charge which may be imposed for the 
        failure to make a payment on an outstanding balance under such 
        account by a particular date or by the end of a particular 
        period shall not exceed the lesser of--
                    ``(A) the amount equal to two times the amount most 
                recently published by the Board pursuant to paragraph 
                (2); or
                    ``(B) the total balance of credit outstanding with 
                respect to such account as of such date or the end of 
                such period.''.
            ``(2) Annual determination of average cost.--The Board 
        shall--
                    ``(A) obtain annually a sample of all creditors 
                which is representative on the basis of geographic 
                location and asset size, of the cost to creditors 
                resulting from failures of consumers to make payments 
                on outstanding balances on credit card accounts under 
                open-end consumer credit plans on a timely basis;
                    ``(B) on the basis of the sample obtained under 
                subparagraph (A), determine the average cost to all 
                creditors resulting from failures described in such 
                subparagraph; and
                    ``(C) publish such amount in the Federal 
                Register.''.
    (b) Annual Report to Congress Required.--The Board of Governors of 
the Federal Reserve System shall prepare and submit to the Congress a 
report of the results of each survey conducted and determination made 
pursuant to section 127(h)(2).
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to payments on an outstanding balance on a credit 
card account under an open-end consumer credit plan which become due 
after the end of the 6-month period beginning on the date of the 
enactment of this Act.

SEC. 4. PROHIBITION ON EXORBITANT FEES FOR BOUNCED CHECKS.

    (a) In General.--Section 607 of the Expedited Funds Availability 
Act (12 U.S.C. 4006) is amended by adding at the end the following new 
subsection:
    ``(f) Limitation on Fees for Insufficient Funds of the Drawer.--
            ``(1) Originating depository institution.--If--
                    ``(A) a check which is drawn on or payable from an 
                account at a depository institution is presented to 
                such depository institution for payment; and
                    ``(B) the amount of the check exceeds the balance 
                in the account,
        the amount of any fee or other charge which may be imposed by 
        the depository institution against the account due to the 
        presentment of a check for which there are insufficient funds 
        (whether or not the depository institution pays the check) may 
        not exceed an amount equal to two times the amount most 
        recently published by the Board pursuant to paragraph (4).
            ``(2) Receiving depository institution.--In the case of a 
        check drawn on an account at an originating institution which 
        is dishonored by the originating institution due to the lack of 
        sufficient funds in such account to pay the check, a receiving 
        depository institution may not impose any fee in connection 
        with handling such check, or any chargeback of any provisional 
        settlement of such check, due to such dishonorment on the 
        person who deposited or otherwise presented such check for 
        negotiation.
            ``(3) Fees for overdraft protection not affected.--
        Paragraph (1) shall not be construed as affecting the finance 
        charge otherwise applicable to an extension of credit resulting 
        from the overdraft created in connection with the payment by an 
        originating depository institution of a check for which there 
        were insufficient funds in the consumer's account.
            ``(4) Annual determination of average cost.--The Board 
        shall--
                    ``(A) obtain annually, with the cooperation of 
                other Federal banking agencies (as defined in section 3 
                of the Federal Deposit Insurance Act), a sample of all 
                depository institutions subject to the jurisdiction of 
                the agency, which is representative by geographic 
                location and asset size, of the cost to a depository 
                institution for processing checks for which there are 
                insufficient funds for payment and either making the 
                payment (without taking into account the overdraft 
                created by the payment) or dishonoring and returning 
                such check;
                    ``(B) on the basis of the sample obtained under 
                subparagraph (A), determine the average cost to all 
                depository institutions resulting from processing 
                checks for which there are insufficient funds for 
                payment; and
                    ``(C) publish such amount in the Federal 
                Register.''.
    (b) Annual Report.--The Board of Governors of the Federal Reserve 
System shall prepare and submit to the Congress a report of the results 
of each survey conducted and determination made pursuant to section 
607(f)(4) of the Expedited Funds Availability Act.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply after the end of the 6-month period beginning on the date of the 
enactment of this Act.

SEC. 5. FAIR ATM FEES FOR CONSUMERS.

    (a) Definitions.--Section 903 of the Electronic Fund Transfer Act 
(15 U.S.C. 1693a) is amended--
            (1) in paragraph (10), by striking ``and'' at the end;
            (2) in paragraph (11), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(12) the term `electronic terminal surcharge' means a 
        transaction fee assessed by a financial institution that is the 
        owner or operator of the electronic terminal; and
            ``(13) the term `electronic banking network' means a 
        communications system linking financial institutions through 
        electronic terminals.''.
    (b) In General.--Section 905 of the Electronic Fund Transfer Act 
(12 U.S.C. 1693c) is amended by adding at the end the following new 
subsection:
    ``(d) Limitation on Fees.--With respect to a transaction conducted 
at an electronic terminal, an electronic terminal surcharge may not be 
assessed against a consumer if the transaction--
            ``(1) does not relate to or affect an account held by the 
        consumer with the financial institution that is the owner or 
        operator of the electronic terminal; and
            ``(2) is conducted through a national or regional 
        electronic banking network.''.
    (c) Effective Date.--The amendments made by this section shall 
apply after the end of the 6-month period beginning on the date of the 
enactment of this Act.

SEC. 6. LIFELINE BANKING EXAMINATION REQUIRED UNDER COMMUNITY 
              REINVESTMENT ACT OF 1977.

    (a) In General.--Section 804(a)(1) of the Community Reinvestment 
Act of 1977 (12 U.S.C. 2903(a)(1)) is amended by inserting ``and the 
lifeline banking needs of each such community'' after ``safe and sound 
operation of such institution''.
    (b) Technical and Conforming Amendments.--
            (1) Purposes.--Section 802(b) of the Community Reinvestment 
        Act of 1977 (12 U.S.C. 2901(b)) is amended by inserting ``and 
        the lifeline banking needs of such local communities'' before 
        the period at the end.
            (2) Evaluations.--Section 807(a)(1) of the Community 
        Reinvestment Act of 1977 (12 U.S.C. 2906(a)(1)) is amended by 
        striking ``credit needs'' and inserting ``credit and lifeline 
        banking needs''.

SEC. 7. PRESERVATION OF BANK FEE REPORT REQUIREMENTS.

    (a) In General.--Section 3003(a)(1) of the Federal Reports 
Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note) shall not 
apply to any report required to be submitted under section 1002(b) of 
Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
    (b) Sunset of Report.--Section 1002(b) of Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is 
amended by adding at the end the following new paragraph:
            ``(4) Sunset.--Notwithstanding section 108(b) of the 
        Riegle-Neil Interstate Banking and Branching Efficiency Act of 
        1994, no report shall be required under this subsection after 
        the end of the 10-year period beginning on the date of the 
        enactment of the Financial Services Modernization Act of 
        1999.''.
    (c) Credit Unions Included in Survey.--Section 1002(a)(1) of 
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 
(12 U.S.C. 1811 note) is amended by inserting ``, including credit 
unions'' after ``insured depository institutions''.

SEC. 8. PROHIBITION ON ARBITRATION CLAUSES IMPOSED ON CONSUMERS WITHOUT 
              THEIR CONSENT.

    (a) In General.--The Consumer Credit Protection Act (15 U.S.C. 1601 
et seq.) is amended by adding at the end the following:

                     ``TITLE X--DISPUTE RESOLUTION

``SEC. 1001. SHORT TITLE; TABLE OF CONTENTS

    ``(a) Short Title.--This title may be cited as the ``Consumer 
Fairness Act''.
    ``(b) Table of Contents.--The table of contents for this title is 
as follows:

                     ``TITLE X--DISPUTE RESOLUTION

        ``Sec. 1001. Short title; table of contents
        ``Sec. 1002. Definitions.
        ``Sec. 1003. Prohibition on arbitration clauses imposed on 
                            consumers without their consent.

``SEC. 1002. DEFINITIONS.

    ``For purposes of this title, the following definitions shall 
apply:
            ``(1) Consumer.--The term ``consumer'' means any 
        individual.
            ``(2) Consumer transaction.--The term `consumer 
        transaction' means the sale or rental of goods, services, or 
        real property, including an extension of credit or the 
        provision of any other financial product or service, to an 
        individual in a transaction entered into primarily for 
        personal, family, or household purposes.
            ``(3) Consumer contract.--The term `consumer contract' 
        means any written, standardized form contract between the 
        parties to a consumer transaction.

``SEC. 1003. PROHIBITION ON ARBITRATION CLAUSES IMPOSED ON CONSUMERS 
              WITHOUT THEIR CONSENT.

    ``(a) In General.--A written provision in any consumer transaction 
or consumer contract which requires binding arbitration (whether by the 
terms of such transaction or contract directly or at the request of any 
party to the transaction or contract) to resolve any controversy 
arising out of or related to the transaction or contract, or the 
failure to perform the whole or any part of the transaction or contract 
shall constitute a violation of this title, shall not be enforceable, 
and shall be treated as an unfair and deceptive trade act or practice 
under Federal or State law.
    ``(b) Post-Controversy Agreements.--Subsection (a) shall not apply 
with respect to a written agreement to determine by binding arbitration 
an existing controversy arising out of a consumer transaction or 
consumer contract if the written agreement has been entered into by the 
parties to the consumer transaction or consumer contract after the 
controversy has arisen.
    ``(c) Compliance.--Compliance with the requirements of this title 
shall be enforced in the same manner as compliance with the 
requirements imposed under the preceding title are enforced under 
section 917 of such title.
    ``(d) Coordination With Other Law.--No provision of this section 
shall be construed as annulling, altering, affecting, or superseding 
any Federal law, or the laws of any State, relating to arbitration in 
connection with consumer transactions or consumer contracts, except to 
the extent that those laws are inconsistent with the provisions of this 
section, and then only to the extent of the inconsistency.''.
    (b) Applicability.--The amendments made by this section shall apply 
to all consumer transactions and consumer contracts entered into on, or 
after the date of the enactment of this Act, amendments entered into on 
or after such date of enactment to any consumer transaction or consumer 
contract without regard to the date such transaction was consummated or 
such contract entered into, and to all controversies pending or filed 
on, or arising after, the date of such date of enactment.

SEC. 9. AMENDMENT TO PRIVACY PROVISIONS OF THE GRAMM-LEACH-BLILEY ACT.

    Title V of the Gramm-Leach-Bliley Act is amended to read as 
follows:

               ``TITLE V--PRIVACY OF CONSUMER INFORMATION

       ``Subtitle A--Disclosure of Nonpublic Personal Information

``SEC. 501. PROTECTION OF NONPUBLIC PERSONAL INFORMATION.

    ``(a) Privacy Obligation Policy.--It is the policy of the Congress 
that each financial institution has an affirmative and continuing 
obligation to respect the privacy of its customers and to protect the 
security and confidentiality of those customers' nonpublic personal 
information.
    ``(b) Financial Institutions Safeguards.--In furtherance of the 
policy in subsection (a), each agency or authority described in section 
504(a) shall establish by rule or order appropriate standards for the 
financial institutions subject to their jurisdiction, and the 
Commission shall establish such standards for any financial 
institutions not subject to such jurisdiction, relating to 
administrative, technical, and physical safeguards--
            ``(1) to insure the security and confidentiality of 
        customer records and information;
            ``(2) to protect against any anticipated threats or hazards 
        to the security or integrity of such records; and
            ``(3) to protect against unauthorized access to or use of 
        such records or information which could result in substantial 
        harm or inconvenience to any customer.

``SEC. 502. OBLIGATIONS WITH RESPECT TO PERSONAL INFORMATION.

    ``(a) General Requirements.--Except as otherwise provided in this 
subtitle, a financial institution may not, directly or through any 
affiliate, disclose or make an unrelated use of any nonpublic personal 
information collected by the financial institution in connection with 
any transaction with a consumer in any financial product or any 
financial service, unless such financial institution provides or has 
provided to the consumer a notice that complies with section 503 and 
the rules thereunder.
    ``(b) Opt-In Required for Information Transfers.--
            ``(1) Affirmative consent required.--Each agency or 
        authority described in section 504(a) shall by rule prohibit a 
        financial institution that is subject to its jurisdiction from 
        making available any nonpublic personal information to any 
        affiliate or other person that is not an employee or agent of 
        the institution, unless the consumer to whom the information 
        pertains--
                    ``(A) has affirmatively consented in accordance 
                with such rule to the transfer of such information; and
                    ``(B) has not withdrawn the consent.
            ``(2) Flexibility of form.--A financial institution may, in 
        complying with paragraph (1), present the opportunity to 
        consent in a clear and conspicuous manner that permits the 
        consumer to consent--
                    ``(A)(i) with respect to both affiliates and 
                nonaffiliated persons;
                    ``(ii) separately with respect to affiliates 
                generally and nonaffiliated persons generally; or
                    ``(iii) separately with respect to specified 
                affiliates and nonaffiliated persons; and
                    ``(B) separately with respect to specified 
                financial and nonfinancial products and services that 
                may be offered to the consumer.
            ``(3) Denial of service prohibited.--The rule prescribed 
        pursuant to paragraph (1) shall prohibit a financial 
        institution from denying any consumer a financial product or a 
        financial service for the refusal by the consumer to grant the 
        consent required by such rule.
    ``(c) Access to and Correction of Information Vended to Third 
Parties.--
            ``(1) Rule required.--Each agency or authority described in 
        section 504(a) shall by rule require a financial institution 
        that is subject to its jurisdiction and that makes available 
        nonpublic personal information collected by the financial 
        institution to any person or entity other than an employee or 
        agent of such institution to afford that consumer--
                    ``(A) the opportunity to examine, upon request, all 
                nonpublic personal information that was so made 
                available; and
                    ``(B) the opportunity to dispute the accuracy of 
                any of such information, and to present evidence 
                thereon.
    ``(d) Limitations on the Sharing of Account Number Information for 
Marketing Purposes.--A financial institution shall not disclose an 
account number or similar form of access number or access code for a 
credit card account, deposit account, or transaction account of a 
consumer to any affiliate or any nonaffiliated third party for use in 
telemarketing, direct mail marketing, or other marketing through 
electronic mail or other electronic means to the consumer.
    ``(e) Limits on Reuse of Information.--Except as otherwise provided 
in this subtitle, an affiliate or a nonaffiliated third party that 
receives from a financial institution nonpublic personal information 
under this section shall not, directly or through an affiliate of such 
receiving third party, disclose such information to any other person 
that is an affiliate or a nonaffiliated third party of both the 
financial institution and such receiving third party, unless such 
disclosure would be lawful if made directly to such other person by the 
financial institution.
    ``(f) General Exceptions.--Subsections (a) and (b) shall not 
prohibit the disclosure of nonpublic personal information--
            ``(1) as necessary to effect, administer, or enforce a 
        transaction requested or authorized by the consumer, or in 
        connection with--
                    ``(A) servicing or processing a financial product 
                or service requested or authorized by the consumer;
                    ``(B) maintaining or servicing the consumer's 
                account with the financial institution; or
                    ``(C) a proposed or actual securitization, 
                secondary market sale (including sales of servicing 
                rights), or similar transaction related to a 
                transaction of the consumer;
            ``(2) with the consent or at the direction of the consumer;
            ``(3)(A) to protect the confidentiality or security of the 
        financial institution's records pertaining to the consumer, the 
        service or product, or the transaction therein; (B) to protect 
        against or prevent actual or potential fraud, unauthorized 
        transactions, claims, or other liability; (C) for required 
        institutional risk control, or for resolving customer disputes 
        or inquiries; (D) to persons holding a legal or beneficial 
        interest relating to the consumer; or (E) to persons acting in 
        a fiduciary or representative capacity on behalf of the 
        consumer;
            ``(4) to provide information to insurance rate advisory 
        organizations, guaranty funds or agencies, applicable rating 
        agencies of the financial institution, and the institution's 
        attorneys, accountants, and auditors;
            ``(5) to the extent specifically permitted or required 
        under other provisions of law and in accordance with the Right 
        to Financial Privacy Act of 1978, to law enforcement agencies 
        (including a Federal functional regulator, the Secretary of the 
        Treasury with respect to subchapter II of chapter 53 of title 
        31, United States Code, and chapter 2 of title I of Public Law 
        91-508 (12 U.S.C. 1951-1959), a State insurance authority, or 
        the Federal Trade Commission), self-regulatory organizations, 
        or for an investigation on a matter related to public safety;
            ``(6)(A) to a consumer reporting agency in accordance with 
        the Fair Credit Reporting Act, or (B) from a consumer report 
        reported by a consumer reporting agency in accordance with the 
        Fair Credit Reporting Act;
            ``(7) in connection with a proposed or actual sale, merger, 
        transfer, or exchange of all or a portion of a business or 
        operating unit if the disclosure of nonpublic personal 
        information concerns solely consumers of such business or unit; 
        or
            ``(8) to comply with Federal, State, or local laws, rules, 
        and other applicable legal requirements; to comply with a 
        properly authorized civil, criminal, or regulatory 
        investigation or subpoena or summons by Federal, State, or 
        local authorities; or to respond to judicial process or 
        government regulatory authorities having jurisdiction over the 
        financial institution for examination, compliance, or other 
        purposes as authorized by law.

``SEC. 503. NOTICE CONCERNING DISCLOSING INFORMATION.

    ``(a) Rule Required.--Each agency or authority described in section 
504(a) shall prescribe rules in accordance with this section to 
prohibit unfair and deceptive acts or practices in connection with the 
disclosing of nonpublic personal information or with making unrelated 
uses of such information. Such rules shall require any financial 
institution, through the use of a form that complies with the rules 
prescribed under subsection (b), to clearly and conspicuously disclose 
to the consumer at the time of establishing a customer relationship 
with a consumer and not less than annually during the continuation of 
such relationship--
            ``(1) the categories of nonpublic personal information that 
        are collected by the financial institution;
            ``(2) the practices and policies of the financial 
        institution with respect to disclosing nonpublic personal 
        information, or making unrelated uses of such information, 
        including--
                    ``(A) the categories of persons to whom the 
                information is or may be disclosed or who may be 
                permitted to make unrelated uses of such information, 
                other than the persons to whom the information must be 
                provided to effect, administer, or enforce the 
                transaction; and
                    ``(B) the practices and policies of the institution 
                with respect to disclosing or making unrelated uses of 
                nonpublic personal information of persons who have 
                ceased to be customers of the financial institution;
            ``(3) the policies that the institution maintains to 
        protect the confidentiality and security of nonpublic personal 
        information;
            ``(4) the practices and policies of the institution with 
        respect to providing consumers the opportunity to examine and 
        dispute information pursuant to the rule prescribed under 
        section 502(c); and
            ``(5) the right of the consumer under such section to 
        examine, upon request, the nonpublic personal information, to 
        dispute the accuracy of any of such information, and to present 
        evidence thereon.
    ``(b) Design of Notice Requirements.--In prescribing the form of a 
notice for purposes of subsection (a), each agency or authority 
described in section 504(a) shall ensure that consumers are provided a 
clear and conspicuous disclosure that permits them to compare 
differences in the measures that the financial institution takes, and 
the policies that the institution has established, to protect the 
consumer's privacy as compared to the measures taken and the policies 
established by other financial institutions. Such form shall 
specifically identify the rights the institution affords consumers to 
grant or deny consent to (1) the disclosing of nonpublic personal 
information for any purpose other than as required in order to effect, 
administer, or enforce the consumer's transaction, or (2) the making of 
an unrelated use of such information.
    ``(c) Additional Contents of Rules; Exemptive Rules.--Each agency 
or authority described in section 504(a) shall, by rule, and may by 
order--
            ``(1) specify the disclosures and uses of information 
        which, for purposes of this subtitle and the rules prescribed 
        thereunder, may be treated as necessary to effect, administer, 
        or enforce a consumer's transaction with respect to a variety 
        of financial services and financial products;
            ``(2) specify timing requirements with respect to notices 
        to new and existing customers, which shall not require notices 
        more frequently than annually unless there has been a change in 
        the information required to be disclosed pursuant to subsection 
        (a); and
            ``(3) provide, consistent with the purposes of this 
        subtitle, exemptions or temporary waivers to, or delayed 
        effective dates for, any requirement of this subtitle or the 
        rules prescribed thereunder.

``SEC. 504. ENFORCEMENT.

    ``(a) In General.--This subtitle and the rules prescribed 
thereunder shall be enforced by the Federal functional regulators, the 
State insurance authorities, and the Federal Trade Commission with 
respect to financial institutions and other persons subject to their 
jurisdiction under applicable law, as follows:
            ``(1) Under section 8 of the Federal Deposit Insurance Act, 
        in the case of--
                    ``(A) national banks, Federal branches and Federal 
                agencies of foreign banks by the Office of the 
                Comptroller of the Currency;
                    ``(B) member banks of the Federal Reserve System 
                (other than national banks), branches and agencies of 
                foreign banks (other than Federal branches, Federal 
                agencies, and insured State branches of foreign banks), 
                commercial lending companies owned or controlled by 
                foreign banks, organizations operating under section 25 
                or 25A of the Federal Reserve Act, bank holding 
                companies by the Board of Governors of the Federal 
                Reserve System;
                    ``(C) banks insured by the Federal Deposit 
                Insurance Corporation (other than members of the 
                Federal Reserve System), insured State branches of 
                foreign banks by the Board of Directors of the Federal 
                Deposit Insurance Corporation; and
                    ``(D) savings association the deposits of which are 
                insured by the Federal Deposit Insurance Corporation by 
                the Director of the Office of Thrift Supervision.
            ``(2) Under the Federal Credit Union Act, by the 
        Administrator of the National Credit Union Administration with 
        respect to any Federal or state chartered credit union.
            ``(3) Under the Securities Exchange Act of 1934, by the 
        Securities and Exchange Commission with respect to any broker-
        dealer.
            ``(4) Under the Investment Company Act of 1940, by the 
        Securities and Exchange Commission with respect to investment 
        companies.
            ``(5) Under the Investment Advisers Act of 1940, by the 
        Securities and Exchange Commission with respect to investment 
        advisers registered with the Commission under such Act.
            ``(6) Under the Federal Home Loan Bank Act, by the Federal 
        Housing Finance Board with respect to Federal home loan banks.
            ``(7) In the case of any person engaged in providing 
        insurance, by the State insurance authority, if that State has 
        elected to become a participating State, notwithstanding any of 
        the limitations of section 104 of the Gramm-Leach-Bliley Act.
            ``(8) Under the Federal Trade Commission Act, by the 
        Federal Trade Commission for--
                    ``(A) any other financial institution (other than a 
                person engaged in providing insurance) or any other 
                person that is not subject to the jurisdiction of any 
                agency or authority under paragraphs (1) through (6) of 
                this subsection; and
                    ``(B) any person engaged in providing insurance who 
                is domiciled in a State that does not elect to become a 
                participating State.
    ``(b) Enforcement of Section 501.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        agencies and authorities described in subsection (a) shall 
        implement the standards prescribed under section 501(b) in the 
        same manner, to the extent practicable, as standards prescribed 
        pursuant to subsection (a) of section 39 of the Federal Deposit 
        Insurance Act are implemented pursuant to such section.
            ``(2) Exception.--The agencies and authorities described in 
        paragraphs (3), (4), (5), (7), and (8) of subsection (a) shall 
        implement the standards prescribed under section 501(b) by rule 
        with respect to the financial institutions subject to their 
        respective jurisdictions under subsection (a).
    ``(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 subtitle or a rule prescribed 
        under this subtitle, other than section 501 or a rule 
        prescribed under such section, 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; and
                    ``(B) may bring an action on behalf of the 
                residents of the State to enforce compliance with such 
                rule, to obtain damages, restitution, or other 
                compensation on behalf of residents of such State, or 
                to obtain such further and other relief as the court 
                may deem appropriate.
            ``(2) Rights of federal regulators.--
                    ``(A) Prior notice.--The State shall serve prior 
                written notice of any action under paragraph (1) upon 
                the Federal Trade Commission and provide the Federal 
                Trade 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) Right to intervene.--The Federal Trade 
                Commission shall transmit the notice received under 
                subparagraph (A) to the agency or authority that has 
                jurisdiction of the subject of the complaint, and such 
                agency or authority shall have the right--
                            ``(i) to intervene in an action under 
                        paragraph (1);
                            ``(ii) upon so intervening, to be heard on 
                        all matters arising therein;
                            ``(iii) to remove the action to the 
                        appropriate United States district court; and
                            ``(iv) to file petitions for appeal.
            ``(3) Investigatory powers.--For purposes of bringing any 
        action under this subsection, no provision of this subsection 
        shall be construed as preventing 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 a Federal agency or authority has instituted a 
        civil action for a violation of this subtitle, no State may, 
        during the pendency of such action, bring an action under this 
        section against any defendant named in the complaint of the 
        Federal agency or authority or such agency for any violation of 
        this subtitle that is alleged in that complaint.
    ``(d) Definitions.--The terms used in subsection (a)(1) that are 
not defined in this subtitle or otherwise defined in section 3(s) of 
the Federal Deposit Insurance Act shall have the meaning given to them 
in section 1(b) of the International Banking Act of 1978.

``SEC. 505. FAIR CREDIT REPORTING ACT AMENDMENT.

    ``(a) Amendment.--Section 621 of the Fair Credit Reporting Act (15 
U.S.C. 1681s) is amended--
            ``(1) in subsection (d), by striking everything following 
        the end of the second sentence; and
            ``(2) by striking subsection (e) and inserting in lieu 
        thereof the following:
    `` `(e) Regulatory Authority.--
            `` `(1) The Federal banking agencies referred to in 
        paragraphs (1) and (2) of subsection (b) shall jointly 
        prescribe such regulations as necessary to carry out the 
        purposes of this Act with respect to any persons identified 
        under paragraphs (1) and (2) of subsection (b).
            `` `(2) The Administrator of the National Credit Union 
        Administration shall prescribe such regulations as necessary to 
        carry out the purposes of this Act with respect to any persons 
        identified under paragraph (3) of subsection (b).
            `` `(3) The Federal Trade Commission shall prescribe such 
        regulations as necessary to carry out the purposes of this Act 
        with respect to any persons identified under subsection (a).'.
    ``(b) Relation to Other Provisions.--Except for the amendment made 
by this section, nothing in this title shall be construed to modify, 
limit, or supersede the operation of the Fair Credit Reporting Act, and 
no inference shall be drawn on the basis of the provisions of this 
title regarding whether information is transaction or experience 
information under section 603 of such Act.

``SEC. 506. STATE ELECTION TO PARTICIPATE.

    ``(a) Regulations.--The Secretary of the Treasury may promulgate 
such regulations as may be necessary to establish the procedures 
governing whether the election required under section 504(a)(7) has 
been made.
    ``(b) Deadline.--The deadline for a State to elect to become a 
participating state is the first day of the first calendar quarter 
beginning after the close of the first legislative session of the State 
legislature that begins on or after the date the regulations required 
by section 504(a) are issued in final form. For purposes of the 
previous sentence, in the case of a State that has a 2-year legislative 
session, each year of such session shall be deemed to be a separate 
regular session of the State legislature.

``SEC. 507. RELATION TO STATE LAWS.

    ``(a) In General.--This subtitle shall not be construed as 
superseding, altering, or affecting the statutes, regulations, orders, 
or interpretations in effect in any State, except to the extent that 
such statutes, regulations, orders, or interpretations are inconsistent 
with the provisions of this subtitle, and then only to the extent of 
the inconsistency.
    ``(b) Greater Protection Under State Law.--For purposes of this 
section, a State statute, regulation, order, or interpretation is not 
inconsistent with the provisions of this subtitle if the protection 
such statute, regulation, order, or interpretation affords any person 
is greater than the protection provided under this subtitle as 
determined by the Commission or a Federal functional regulator, on its 
own motion or upon the petition of any interested party.

``SEC. 508. DEFINITIONS.

    ``As used in this subtitle:
            ``(1) Commission.--The term `Commission' means the Federal 
        Trade Commission.
            ``(2) Federal functional regulator.--The term `Federal 
        functional regulator' means--
                    ``(A) the Board of Governors of the Federal Reserve 
                System;
                    ``(B) the Office of the Comptroller of the 
                Currency;
                    ``(C) the Board of Directors of the Federal Deposit 
                Insurance Corporation;
                    ``(D) the Director of the Office of Thrift 
                Supervision;
                    ``(E) the National Credit Union Administration 
                Board; and
                    ``(F) the Securities and Exchange Commission.
            ``(3) Financial institution.--The term `financial 
        institution' means any institution the business of which is 
        engaging in financial activities or activities that are 
        incidental or complementary to financial activities, as 
        determined under section 4(k) of the Bank Holding Company Act 
        of 1956.
            ``(4) Nonpublic personal information.--
                    ``(A) The term `nonpublic personal information' 
                means personally identifiable financial information--
                            ``(i) provided by a consumer to a financial 
                        institution;
                            ``(ii) resulting from any transaction with 
                        the consumer or the service performed for the 
                        consumer; or
                            ``(iii) otherwise obtained by the financial 
                        institution.
                    ``(B) Such term does not include publicly available 
                information, as such term is defined by the regulations 
                prescribed under section 504.
                    ``(C) Notwithstanding subparagraph (B), such term--
                            (i) shall include any list, description, or 
                        other grouping of consumers (and publicly 
                        available information pertaining to them) that 
                        is derived using any personally identifiable 
                        information other than publicly available 
                        information; but
                            ``(ii) shall not include any list, 
                        description, or other grouping of consumers 
                        (and publicly available information pertaining 
                        to them) that is derived without using any 
                        nonpublic personal information.
            ``(5) Directory information.--The term `publicly available 
        directory information' means subscriber list information 
        required to be made available for publication pursuant to 
        section 222(e) of the Communications Act of 1934 (47 U.S.C. 
        222(3)).
            ``(6) Unrelated use.--The term `unrelated use', when used 
        with respect to information collected by the financial 
        institution in connection with any transaction with a consumer 
        in any financial product or any financial service, means any 
        use other than a use that is necessary to effect, administer, 
        or enforce such transaction.
            ``(7) Affiliate.--The term `affiliate' means any company 
        that controls, is controlled by, or is under common control 
        with another company.
            ``(8) Nonaffiliated third party.--The term `nonaffiliated 
        third party' means any entity that is not an affiliate of, or 
        related by common ownership or affiliated by corporate control 
        with, the financial institution, but does not include a joint 
        employee of such institution.
            ``(9) Necessary to effect, administer, or enforce.--The 
        disclosing or use of nonpublic personal information shall be 
        treated as necessary to effect or administer a transaction with 
        a consumer if the disclosing or use--
                    ``(A) is required, or is a usual, appropriate, or 
                acceptable method, to carry out the transaction or the 
                product or service business of which the transaction is 
                a part, and record or service or maintain the 
                consumer's account in the ordinary course of providing 
                the financial service or financial product, or to 
                administer or service benefits or claims relating to 
                the transaction or the product or service business of 
                which it is a part, and includes--
                            ``(i) providing the consumer or the 
                        consumer's agent or broker with a confirmation, 
                        statement, or other record of the transaction, 
                        or information on the status or value of the 
                        financial service or financial product; and
                            ``(ii) the accrual or recognition of 
                        incentives or bonuses associated with the 
                        transaction that are provided by the financial 
                        institution or any other party;
                    ``(B) is required, or is one of the lawful or 
                appropriate methods, to enforce the rights of the 
                financial institution or of other persons engaged in 
                carrying out the financial transaction, or providing 
                the product or service;
                    ``(C) is required, or is a usual, appropriate, or 
                acceptable method, for insurance underwriting at the 
                consumer's request or for reinsurance purposes, or for 
                any of the following purposes as they relate to a 
                consumer's insurance: account administration, 
                reporting, investigating, or preventing fraud or 
                material misrepresentation, processing premium 
                payments, processing insurance claims, administering 
                insurance benefits (including utilization review 
                activities), participating in research projects, or as 
                otherwise required or specifically permitted by Federal 
                or State law; or
                    ``(D) the disclosure is required, or is a usual, 
                appropriate or acceptable method, in connection with--
                            ``(i) the authorization, settlement, 
                        billing, processing, clearing, transferring, 
                        reconciling, or collection of amounts charged, 
                        debited, or otherwise paid using a debit, 
                        credit or other payment card, check, or account 
                        number, or by other payment means;
                            ``(ii) the transfer of receivables, 
                        accounts or interests therein; or
                            ``(iii) the audit of debit, credit or other 
                        payment information.
        Each agency or authority described in section 504(a) shall, 
        consistent with the purposes of this subtitle, prescribe by 
        rule actions that shall, in a variety of financial services, 
        and with respect to a variety of financial products, be treated 
        as necessary to effect, administer, or enforce a financial 
        transaction.
            ``(10) Financial services; financial products; transaction; 
        related transaction.--Each agency or authority described in 
        section 504(a) shall, consistent with the purposes of this 
        subtitle, prescribe by rule definitions of the terms `financial 
        services', `financial products', `transaction', `related 
        transaction', and `unrelated third party' for purposes of this 
        subtitle.
            ``(11) State insurance authority.--The term `State 
        insurance authority' means, in the case of any person engaged 
        in providing insurance, the State insurance authority of the 
        State in which the person is domiciled.
            ``(12) Consumer.--The term `consumer' means an individual 
        who obtains, from a financial institution, financial products 
        or services which are to be used primarily for personal, 
        family, or household purposes, and also means the legal 
        representative of such an individual.
            ``(13) Customer relationship.--The term `time of 
        establishing a customer relationship' shall be defined by the 
        regulations prescribed under section 504.

``SEC. 509. EFFECTIVE DATE.

    ``This subtitle shall take effect 6 months after the date on which 
rules are required to be prescribed under section 504(a)(3), except--
            ``(1) to the extent that a later date is specified in the 
        rules prescribed under section 504; and
            ``(2) that sections 504 and 506 shall be effective upon the 
        enactment.

        ``Subtitle B--Fraudulent Access to Financial Information

``SEC. 521. PRIVACY PROTECTION FOR CUSTOMER INFORMATION OF FINANCIAL 
              INSTITUTIONS.

    ``(a) Prohibition on Obtaining Customer Information by False 
Pretenses.--It shall be a violation of this subtitle for any person to 
obtain or attempt to obtain, or cause to be disclosed or attempt to 
cause to be disclosed to any person, customer information of a 
financial institution relating to another person--
            ``(1) by making a false, fictitious, or fraudulent 
        statement or representation to an officer, employee, or agent 
        of a financial institution;
            ``(2) by making a false, fictitious, or fraudulent 
        statement or representation to a customer of a financial 
        institution; or
            ``(3) by providing any document to an officer, employee, or 
        agent of a financial institution, knowing that the document is 
        forged, counterfeit, lost, or stolen, was fraudulently 
        obtained, or contains a false, fictitious, or fraudulent 
        statement or representation.
    ``(b) Prohibition on Solicitation of a Person To Obtain Customer 
Information From Financial Institution Under False Pretenses.--It shall 
be a violation of this subtitle to request a person to obtain customer 
information of a financial institution, knowing that the person will 
obtain, or attempt to obtain, the information from the institution in 
any manner described in subsection (a).
    ``(c) Nonapplicability to Law Enforcement Agencies.--No provision 
of this section shall be construed so as to prevent any action by a law 
enforcement agency, or any officer, employee, or agent of such agency, 
to obtain customer information of a financial institution in connection 
with the performance of the official duties of the agency.
    ``(d) Nonapplicability to Financial Institutions in Certain 
Cases.--No provision of this section shall be construed so as to 
prevent any financial institution, or any officer, employee, or agent 
of a financial institution, from obtaining customer information of such 
financial institution in the course of--
            ``(1) testing the security procedures or systems of such 
        institution for maintaining the confidentiality of customer 
        information;
            ``(2) investigating allegations of misconduct or negligence 
        on the part of any officer, employee, or agent of the financial 
        institution; or
            ``(3) recovering customer information of the financial 
        institution which was obtained or received by another person in 
        any manner described in subsection (a) or (b).
    ``(e) Nonapplicability to Insurance Institutions for Investigation 
of Insurance Fraud.--No provision of this section shall be construed so 
as to prevent any insurance institution, or any officer, employee, or 
agency of an insurance institution, from obtaining information as part 
of an insurance investigation into criminal activity, fraud, material 
misrepresentation, or material nondisclosure that is authorized for 
such institution under State law, regulation, interpretation, or order.
    ``(f) Nonapplicability to Certain Types of Customer Information of 
Financial Institutions.--No provision of this section shall be 
construed so as to prevent any person from obtaining customer 
information of a financial institution that otherwise is available as a 
public record filed pursuant to the securities laws (as defined in 
section 3(a)(47) of the Securities Exchange Act of 1934).

``SEC. 522. ADMINISTRATIVE ENFORCEMENT.

    ``(a) Enforcement by Federal Trade Commission.--Compliance with 
this subtitle shall be enforced by the Federal Trade Commission in the 
same manner and with the same power and authority as the Commission has 
under the title VIII, the Fair Debt Collection Practices Act, to 
enforce compliance with such title.
    ``(b) Notice of Actions.--The Federal Trade Commission shall--
            ``(1) notify the Securities and Exchange Commission 
        whenever the Federal Trade Commission initiates an 
        investigation with respect to a financial institution subject 
        to regulation by the Securities and Exchange Commission;
            ``(2) notify the Federal banking agency (as defined in 
        section 3(z) of the Federal Deposit Insurance Act) whenever the 
        Commission initiates an investigation with respect to a 
        financial institution subject to regulation by such Federal 
        banking agency; and
            ``(3) notify the appropriate State insurance regulator 
        whenever the Commission initiates an investigation with respect 
        to a financial institution subject to regulation by such 
        regulator.
    ``(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 subtitle, 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) may bring an action on behalf of the 
                residents of the State to recover damages of not more 
                than $1,000 for each 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.--
                    ``(A) Prior notice.--The State shall serve prior 
                written notice of any action under paragraph (1) upon 
                the Federal Trade Commission and provide the Federal 
                Trade 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) Right to intervene.--The Federal Trade 
                Commission shall have the right--
                            ``(i) to intervene in an action under 
                        paragraph (1);
                            ``(ii) upon so intervening, to be heard on 
                        all matters arising therein;
                            ``(iii) to remove the action to the 
                        appropriate United States district court; and
                            ``(iv) to file petitions for appeal.
            ``(3) Investigatory powers.--For purposes of bringing any 
        action under this subsection, no provision of this subsection 
        shall be construed as preventing 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 has instituted a 
        civil action for a violation of this subtitle, no State may, 
        during the pendency of such action, bring an action under this 
        section against any defendant named in the complaint of the 
        Federal Trade Commission or such agency for any violation of 
        this subtitle that is alleged in that complaint.

``SEC. 523. CRIMINAL PENALTY.

    ``(a) In General.--Whoever knowingly and intentionally violates, or 
knowingly and intentionally attempts to violate, section 521 shall be 
fined in accordance with title 18, United States Code, or imprisoned 
for not more than 5 years, or both.
    ``(b) Enhanced Penalty for Aggravated Cases.--Whoever violates, or 
attempts to violate, section 521 while violating another law of the 
United States or as part of a pattern of any illegal activity involving 
more than $100,000 in a 12-month period shall be fined twice the amount 
provided in subsection (b)(3) or (c)(3) (as the case may be) of section 
3571 of title 18, United States Code, imprisoned for not more than 10 
years, or both.

``SEC. 524. RELATION TO STATE LAWS.

    ``(a) In General.--This subtitle shall not be construed as 
superseding, altering, or affecting the statutes, regulations, orders, 
or interpretations in effect in any State, except to the extent that 
such statutes, regulations, orders, or interpretations are inconsistent 
with the provisions of this subtitle, and then only to the extent of 
the inconsistency.
    ``(b) Greater Protection Under State Law.--For purposes of this 
section, a State statute, regulation, order, or interpretation is not 
inconsistent with the provisions of this subtitle if the protection 
such statute, regulation, order, or interpretation affords any person 
is greater than the protection provided under this subtitle as 
determined by the Commission, on its own motion or upon the petition of 
any interested party.

``SEC. 525. AGENCY GUIDANCE.

    ``In furtherance of the objectives of this subtitle, each Federal 
banking agency (as defined in section 3(z) of the Federal Deposit 
Insurance Act) and the Securities and Exchange Commission or self-
regulatory organizations, as appropriate, shall review regulations and 
guidelines applicable to financial institutions under their respective 
jurisdictions and shall prescribe such revisions to such regulations 
and guidelines as may be necessary to ensure that such financial 
institutions have policies, procedures, and controls in place to 
prevent the unauthorized disclosure of customer financial information 
and to deter and detect activities proscribed under section 521.

``SEC. 526. REPORTS.

    ``(a) Report to the Congress.--Before the end of the 18-month 
period beginning on the date of the enactment of this Act, the 
Comptroller General, in consultation with the Federal Trade Commission, 
Federal banking agencies, the Securities and Exchange Commission, 
appropriate Federal law enforcement agencies, and appropriate State 
insurance regulators, shall submit to the Congress a report on the 
following:
            ``(1) The efficacy and adequacy of the remedies provided in 
        this subtitle in addressing attempts to obtain financial 
        information by fraudulent means or by false pretenses.
            ``(2) Any recommendations for additional legislative or 
        regulatory action to address threats to the privacy of 
        financial information created by attempts to obtain information 
        by fraudulent means or false pretenses.
    ``(b) Annual Report by Administering Agencies.--The Federal Trade 
Commission and the Attorney General shall submit to Congress an annual 
report on number and disposition of all enforcement actions taken 
pursuant to this subtitle.

``SEC. 527. DEFINITIONS.

    ``For purposes of this subtitle, the following definitions shall 
apply:
            ``(1) Customer.--The term `customer' means, with respect to 
        a financial institution, any person (or authorized 
        representative of a person) to whom the financial institution 
        provides a product or service, including that of acting as a 
        fiduciary.
            ``(2) Customer information of a financial institution.--The 
        term `customer information of a financial institution' means 
        any information maintained by or for a financial institution 
        which is derived from the relationship between the financial 
        institution and a customer of the financial institution and is 
        identified with the customer.
            ``(3) Document.--The term `document' means any information 
        in any form.
            ``(4) Financial institution.--
                    ``(A) In general.--The term `financial institution' 
                means any institution engaged in the business of 
                providing financial services to customers who maintain 
                a credit, deposit, trust, or other financial account or 
                relationship with the institution.
                    ``(B) Certain financial institutions specifically 
                included.--The term `financial institution' includes 
                any depository institution (as defined in section 
                19(b)(1)(A) of the Federal Reserve Act), any broker or 
                dealer, any investment adviser or investment company, 
                any insurance company, any loan or finance company, any 
                credit card issuer or operator of a credit card system, 
                and any consumer reporting agency that compiles and 
                maintains files on consumers on a nationwide basis (as 
                defined in section 603(p)).
                    ``(C) Securities institutions.--For purposes of 
                subparagraph (B)--
                            ``(i) the terms `broker' and `dealer' have 
                        the meanings provided in section 3 of the 
                        Securities Exchange Act of 1934 (15 U.S.C. 
                        78c);
                            ``(ii) the term `investment adviser' has 
                        the meaning provided in section 202(a)(11) of 
                        the Investment Advisers Act of 1940 (15 U.S.C. 
                        80b-2(a)); and
                            ``(iii) the term `investment company' has 
                        the meaning provided in section 3 of the 
                        Investment Company Act of 1940 (15 U.S.C. 80a-
                        3).
                    ``(D) Further definition by regulation.--The 
                Federal Trade Commission, after consultation with 
                Federal banking agencies and the Securities and 
                Exchange Commission, may prescribe regulations 
                clarifying or describing the types of institutions 
                which shall be treated as financial institutions for 
                purposes of this subtitle.''.

SEC. 10. IMPROVED AVAILABILITY OF ANTIFRAUD HOTLINE INFORMATION.

    (a) Duty of Furnishers of Information to Consumer Reporting Agency 
to Provide Number of Toll-Free Antifraud Hot Line.--Section 623(a) of 
the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)) is amended by 
adding at the end the following new paragraph:
            ``(6) Duty to provide toll-free antifraud telephone hotline 
        number.--
                    ``(A) In general.--A creditor who furnishes 
                information with respect to a consumer to a consumer 
                reporting agency shall provide such agency with a toll-
                free telephone number at which the consumer can contact 
                the creditor about potential fraud involving the 
                consumer's relationship with the creditor.
                    ``(B) Keeping number current.--If a toll-free 
                telephone number referred to in subparagraph (A) 
                changes, the creditor who maintains the number shall 
                promptly report such change to any consumer reporting 
                agency to whom the prior number was furnished pursuant 
                to such subparagraph.
                    ``(C) Creditor defined.--For purposes of this 
                paragraph, the term `creditor' has the meaning given 
                such term in section 103.''.
    (b) Information Required to Be Included in Consumer Reports.--
Section 609(a) of the Fair Credit Reporting Act (15 U.S.C. 1681g(a)) is 
amended by adding at the end the following new paragraphs:
            ``(6) Antifraud hotlines.--The following information 
        relating to fraud hotlines:
                    ``(A) A toll-free telephone number at which the 
                consumer can contact the consumer reporting agency 
                about potential fraud involving the consumer.
                    ``(B) The toll-free telephone number at which the 
                consumer can contact any creditor listed in the report 
                about potential fraud involving the consumer.
                    ``(C) A toll-free telephone number and the address 
                on the World Wide Web at which the consumer can contact 
                the Federal Trade Commission about potential fraud 
                involving the consumer.
            ``(7) Fraud Alert.--A statement that the consumer may 
        request the consumer reporting agency to--
                    ``(A) maintain a fraud watch on the consumer's 
                file; and
                    ``(B) request any user of information in the file 
                to contact the consumer before opening or changing any 
                account of or on behalf of the consumer.''.

SEC. 11. COMMISSION ON ALTERNATIVES TO THE USE OF SOCIAL SECURITY 
              NUMBERS AS IDENTIFYING NUMBERS IN PUBLIC RECORDS.

    (a) Establishment.--There is hereby established the Federal 
Commission on Alternative Identifying Numbers (hereafter in this 
section referred to as the ``Commission'').
    (b) Duties of the Commission.--The Commission shall--
            (1) develop a model alternative to the use of Social 
        Security numbers as identifying numbers for individuals in 
        public documents, records, and licenses; and
            (2) make recommendations for the implementation of a model, 
        and a time-frame for such implementation, that would phase out 
        the use of Social Security numbers as identifying numbers for 
        individuals by any government, any government agency or 
        department, or any other government establishment or public 
        entity, other than for purposes of administering the Social 
        Security Act and the Internal Revenue Code of 1986.
    (c) Membership.--
            (1) Number and appointment.--The Commission shall be 
        composed of five members as follows:
                    (A) The Chairman of the Federal Trade Commission.
                    (B) One member appointed by the President from 
                among the governors of the several States.
                    (C) One member appointed by the President from 
                among individuals who are mayors of cities in the 
                United States.
                    (D) One member appointed by the President from 
                among individuals who, by virtue of their education, 
                training, and experience as representatives of consumer 
                organizations, are especially qualified to represent 
                consumers on the Commission.
                    (E) One member appointed by the President from 
                among individuals who, by virtue of their education, 
                training, and experience in business or as 
                representatives of businesses, are especially qualified 
                to represent the business community on the Commission.
            (2) Political affiliation.--Not more than two members 
        appointed under subparagraphs (B), (C), (D), and (E) of 
        paragraph (1) may be of the same political party.
            (3) Continuation of membership.--If a member was appointed 
        to the Commission as a governor or mayor and the member ceases 
        to be a governor or mayor that member may continue as a member 
        for not longer than the 30-day period beginning on the date 
        that member ceases to be a governor or mayor, as the case may 
        be.
            (4) Terms.--Each member appointed under subparagraphs (B), 
        (C), (D), and (E) of paragraph (1) shall be appointed for the 
        life of the Commission.
            (5) Vacancies.--A vacancy in the Commission shall be filled 
        in the manner in which the original appointment was made.
            (6) No compensation.--Members of the Commission appointed 
        under subparagraphs (B), (C), (D), and (E) of paragraph (1) 
        shall serve without pay.
            (7) Travel expenses.--Each member of the Commission shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with sections 5702 and 5703 of title 
        5, United States Code.
            (8) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum but a lesser number may hold 
        hearings.
            (9) Chairperson.--The Chairman of the Federal Trade 
        Commission shall serve as the Chairperson of the Commission.
    (c) Staff.--
            (1) Experts and Consultants.--The Commission may procure 
        temporary and intermittent services under section 3109(b) of 
        title 5, United States Code.
            (2) Staff of federal trade commission.--The Chairman of the 
        Federal Trade Commission may detail, on a reimbursable basis, 
        any of the personnel of that agency to the Commission to assist 
        it in carrying out its duties under this section.
    (d) Powers of the Commission.--
            (1) Hearings and sessions.--The Commission may, for the 
        purpose of carrying out this section, hold hearings, sit and 
        act at times and places, take testimony, and receive evidence 
        as the Commission considers appropriate.
            (2) Powers of members.--Any member of the Commission may, 
        if authorized by the Commission, take any action which the 
        Commission is authorized to take by this section.
            (3) Obtaining official data.--The Commission may secure 
        directly from any department or agency of the United States 
        information necessary to enable it to carry out this section. 
        Upon request of the Chairperson of the Commission, the head of 
        that department or agency shall furnish that information to the 
        Commission.
            (4) Mails.--The Commission may use the United States mails 
        in the same manner and under the same conditions as other 
        departments and agencies of the United States.
            (5) Administrative support services.--Upon the request of 
        the Commission, the Administrator of General Services shall 
        provide to the Commission, on a reimbursable basis, the 
        administrative support services necessary for the Commission to 
        carry out its responsibilities under this section.
    (e) Report.--
            (1) In general.--The Commission shall submit a report to 
        the President and the Congress before the end of the 1-year 
        period beginning on the date of the enactment of this Act.
            (2) Contents.--The report shall contain a detailed 
        statement of the findings and conclusions of the Commission, 
        together with its recommendations for such legislative and 
        administrative actions as the Commission considers appropriate.
    (f) Termination.--The Commission shall terminate upon the 
submission of the report under subsection (e).

SEC. 12. THREE FREE TELLER TRANSACTIONS MONTHLY.

    Section 18 of Federal Deposit Insurance Act (12 U.S.C. 1828) is 
amended by adding at the end the following new subsection:
    ``(v) Three Free Teller Transactions.--Each insured depository 
institution shall allow each depositor to conduct banking business or 
otherwise engage in transactions directly with individuals employed by 
such institution without charge on at least three separate occasions 
each month.''.
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