[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2622 Engrossed Amendment Senate (EAS)]
In the Senate of the United States,
November 5, 2003.
Resolved, That the bill from the House of Representatives (H.R.
2622) entitled ``An Act to amend the Fair Credit Reporting Act, to
prevent identity theft, improve resolution of consumer disputes,
improve the accuracy of consumer records, make improvements in the use
of, and consumer access to, credit information, and for other
purposes.'', do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``National Consumer
Credit Reporting System Improvement Act of 2003''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION
Subtitle A--Identity Theft Prevention
Sec. 111. Definitions.
Sec. 112. Fraud alerts and active duty alerts.
Sec. 113. Truncation of credit card and debit card account numbers.
Sec. 114. Establishment of procedures for the identification of
possible instances of identity theft.
Sec. 115. Amendments to existing identity theft prohibition.
Sec. 116. Authority to truncate social security numbers.
Subtitle B--Protection and Restoration of Identity Theft Victim Credit
History
Sec. 151. Summary of rights of identity theft victims.
Sec. 152. Blocking of information resulting from identity theft.
Sec. 153. Coordination of identity theft complaint investigations.
Sec. 154. Prevention of repollution of consumer reports.
Sec. 155. Notice by debt collectors with respect to fraudulent
information.
Sec. 156. Statute of limitations.
TITLE II--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT
INFORMATION
Sec. 211. Free credit reports.
Sec. 212. Credit scores.
Sec. 213. Enhanced disclosure of the means available to opt out of
prescreened lists.
Sec. 214. Affiliate sharing.
Sec. 215. Study of effects of credit scores and credit-based insurance
scores on availability and affordability of
financial products.
Sec. 216. Disposal of consumer report information and records.
TITLE III--ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION
Sec. 311. Risk-based pricing notice.
Sec. 312. Procedures to enhance the accuracy and completeness of
information furnished to consumer reporting
agencies.
Sec. 313. Federal Trade Commission and consumer reporting agency action
concerning complaints.
Sec. 314. Ongoing audits of the accuracy of consumer reports.
Sec. 315. Improved disclosure of the results of reinvestigation.
Sec. 316. Reconciling addresses.
Sec. 317. FTC study of issues relating to the Fair Credit Reporting
Act.
TITLE IV--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE
FINANCIAL SYSTEM
Sec. 411. Protection of medical information in the financial system.
Sec. 412. Confidentiality of medical contact information in consumer
reports.
TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT
Sec. 511. Short title.
Sec. 512. Definitions.
Sec. 513. Establishment of Financial Literacy and Education Commission.
Sec. 514. Duties of the Commission.
Sec. 515. Powers of the Commission.
Sec. 516. Commission personnel matters.
Sec. 517. Study by the Comptroller General.
Sec. 518. Authorization of appropriations.
TITLE VI--RELATION TO STATE LAW
Sec. 611. Relation to State law.
TITLE VII--MISCELLANEOUS
Sec. 711. Clerical amendments.
TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION
Subtitle A--Identity Theft Prevention
SEC. 111. DEFINITIONS.
Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is
amended by adding at the end the following:
``(q) Definitions Relating to Fraud Alerts.--
``(1) Active duty military consumer.--The term `active duty
military consumer' means a consumer in military service who--
``(A) is on active duty (as defined in section
101(d)(1) of title 10, United States Code) or is a
reservist performing duty under a call or order to
active duty under a provision of law referred to in
section 101(a)(13) of title 10, United States Code; and
``(B) is assigned to service away from the usual
duty station of the consumer.
``(2) Fraud alert; active duty alert.--The terms `fraud
alert' and `active duty alert' mean a statement in the file of
a consumer that--
``(A) notifies all prospective users of a consumer
report relating to the consumer that the consumer may
be a victim of fraud, including identity theft, or is
an active duty military consumer, as applicable;
``(B) provides to all prospective users of a
consumer report relating to the consumer, a telephone
number or other reasonable contact method designated by
the consumer for the user to obtain authorization from
the consumer before establishing new credit (including
providing any increase in a credit limit with respect
to an existing credit account) in the name of the
consumer; and
``(C) is presented in a manner that facilitates a
clear and conspicuous view of the statement described
in subparagraph (A) or (B) by any person requesting
such consumer report.
``(r) Credit Card.--The term `credit card' has the same meaning as
in section 103 of the Truth in Lending Act.
``(s) Debit Card.--The term `debit card' means any card issued by a
financial institution to a consumer for use in initiating an electronic
fund transfer from the account of the consumer at such financial
institution, for the purpose of transferring money between accounts or
obtaining money, property, labor, or services.
``(t) Account and Electronic Fund Transfer.--The terms `account'
and `electronic fund transfer' have the same meanings as in section 903
of the Electronic Fund Transfer Act.
``(u) Credit and Creditor--The terms `credit' and `creditor' have
the same meanings as in section 702 of the Equal Credit Opportunity
Act.
``(v) Federal Banking Agencies.--The term `Federal banking
agencies' has the same meaning as in section 3 of the Federal Deposit
Insurance Act.
``(w) Financial Institution.--The term `financial institution'
means a State or National bank, a State or Federal savings and loan
association, a mutual savings bank, a State or Federal credit union, or
any other person that, directly or indirectly, holds an account
belonging to a consumer.
``(x) Reseller.--The term `reseller' means a consumer reporting
agency that--
``(1) assembles and merges information contained in the
database of another consumer reporting agency or multiple
consumer reporting agencies concerning any consumer for
purposes of furnishing such information to any third party, to
the extent of such activities; and
``(2) does not maintain a database of the assembled or
merged information from which new consumer reports are
produced.
``(y) Definitions Relating to Credit Scores.--
``(1) Credit score and key factors.--When used in
connection with an application for an extension of credit for a
consumer purpose that is to be secured by a dwelling--
``(A) the term `credit score'--
``(i) means a numerical value or
categorization derived from a statistical tool
or modeling system used to predict the
likelihood of certain credit behaviors,
including default; and
``(ii) does not include--
``(I) any mortgage score or rating
of an automated underwriting system
that considers 1 or more factors in
addition to credit information,
including the loan-to-value ratio, the
amount of down payment, or the
financial assets of a consumer; or
``(II) other elements of the
underwriting process or underwriting
decision; and
``(B) the term `key factors' means all relevant
elements or reasons affecting the credit score for a
consumer, listed in the order of their importance,
based on their respective effects on the credit score.
``(2) Dwelling.--The term `dwelling' has the same meaning
as in section 103 of the Truth in Lending Act.
``(z) Identity Theft Report.--The term `identity theft report'
means a report--
``(1) that alleges an identity theft;
``(2) that is filed by a consumer with an appropriate
Federal, State, or local government agency, including the
United States Postal Inspection Service and any law enforcement
agency; and
``(3) the filing of which subjects the person filing the
report to criminal penalties relating to the filing of false
information if, in fact, the information in the report is
false.''.
SEC. 112. FRAUD ALERTS AND ACTIVE DUTY ALERTS.
The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended
by inserting after section 605 the following:
``Sec. 605A. Identity theft prevention; fraud alerts and active duty
alerts
``(a) One-Call Fraud Alerts.--
``(1) Initial alerts.--Upon the request of a consumer who
asserts in good faith a suspicion that the consumer has been or
is about to become a victim of fraud or related crime,
including identity theft, a consumer reporting agency described
in section 603(p) that maintains a file on the consumer and has
received appropriate proof of the identity of the requester
shall--
``(A) include a fraud alert in the file of that
consumer for a period of not less than 90 days,
beginning on the date of such request, unless the
consumer requests that such fraud alert be removed
before the end of such period, and the agency has
received appropriate proof of the identity of the
requester for such purpose; and
``(B) refer the information regarding the fraud
alert under this paragraph to each of the other
consumer reporting agencies described in section
603(p), in accordance with procedures developed under
section 621(f).
``(2) Access to free reports.--In any case in which a
consumer reporting agency includes a fraud alert in the file of
a consumer pursuant to this subsection, the consumer reporting
agency shall--
``(A) disclose to the consumer that the consumer
may request a free copy of the file of the consumer
pursuant to section 612(d); and
``(B) provide to the consumer all disclosures
required to be made under section 609, without charge
to the consumer, not later than 3 business days after
any request described in subparagraph (A).
``(b) Extended Alerts.--
``(1) In general.--Upon the request of a consumer who
submits an identity theft report to a consumer reporting agency
described in section 603(p) that maintains a file on the
consumer, if the agency has received appropriate proof of the
identity of the requester, the agency shall--
``(A) include a fraud alert in the file of that
consumer during the 7-year period beginning on the date
of such request, unless the consumer requests that such
fraud alert be removed before the end of such period
and the agency has received appropriate proof of the
identity of the requester for such purpose;
``(B) during the 7-year period beginning on the
date of such request, exclude the consumer from any
list of consumers prepared by the consumer reporting
agency and provided to any third party to offer credit
or insurance to the consumer as part of a transaction
that was not initiated by the consumer, unless the
consumer requests that such exclusion be rescinded
before the end of such period; and
``(C) refer the information regarding the extended
fraud alert under this paragraph to each of the other
consumer reporting agencies described in section
603(p), in accordance with procedures developed under
section 621(f).
``(2) Verification of identity theft claim.--For purposes
of paragraph (1), a consumer reporting agency shall accept as
proof of a claim of identity theft, in lieu of an identity
theft report--
``(A) a properly completed copy of a standardized
affidavit of identity theft developed and made
available by the Federal Trade Commission; or
``(B) any affidavit of fact that is acceptable to
the consumer reporting agency for that purpose.
``(3) Access to free reports.--In any case in which a
consumer reporting agency includes a fraud alert in the file of
a consumer pursuant to this subsection, the consumer reporting
agency shall--
``(A) disclose to the consumer that the consumer
may request 2 free copies of the file of the consumer
pursuant to section 612(d) during the 12-month period
beginning on the date on which the fraud alert was
included in the file; and
``(B) provide to the consumer all disclosures
required to be made under section 609, without charge
to the consumer, not later than 3 business days after
any request described in subparagraph (A).
``(c) Active Duty Alerts.--Upon the request of an active duty
military consumer, a consumer reporting agency described in section
603(p) that maintains a file on the active duty military consumer and
has received appropriate proof of the identity of the requester shall--
``(1) include an active duty alert in the file of that
active duty military consumer during a period of not less than
12 months, beginning on the date of the request, unless the
active duty military consumer requests that such fraud alert be
removed before the end of such period, and the agency has
received appropriate proof of the identity of the requester for
such purpose;
``(2) during the 12-month period beginning on the date of
such request, exclude the active duty military consumer from
any list of consumers prepared by the consumer reporting agency
and provided to any third party to offer credit or insurance to
the consumer as part of a transaction that was not initiated by
the consumer, unless the consumer requests that such exclusion
be rescinded before the end of such period; and
``(3) refer the information regarding the active duty alert
to each of the other consumer reporting agencies described in
section 603(p), in accordance with procedures developed under
section 621(f).
``(d) Procedures.--Each consumer reporting agency described in
section 603(p) shall establish policies and procedures to comply with
this section, including procedures that allow consumers and active duty
military consumers to request temporary, extended, or active duty
alerts (as applicable) in a simple and easy manner, including by
telephone.
``(e) Referrals of Fraud Alerts.--Each consumer reporting agency
described in section 603(p) that receives a referral of a fraud alert
or active duty alert from another consumer reporting agency pursuant to
this section shall, as though the agency received the request from the
consumer directly, follow the procedures required under--
``(1) paragraphs (1)(A) and (2) of subsection (a), in the
case of a referral under subsection (a)(1)(B);
``(2) paragraphs (1)(A), (1)(B), and (3) of subsection (b),
in the case of a referral under subsection (b)(1)(C); and
``(3) paragraphs (1) and (2) of subsection (c), in the case
of a referral under subsection (c)(3).
``(f) Duty of Reseller To Reconvey Alert.--A reseller shall include
in its report any fraud alert or active duty alert placed in the file
of a consumer pursuant to this section by another consumer reporting
agency.
``(g) Duty of Other Consumer Reporting Agencies To Provide Contact
Information.--If a consumer contacts any consumer reporting agency that
is not described in section 603(p) to communicate a suspicion that the
consumer has been or is about to become a victim of fraud or related
crime, including identity theft, the agency shall provide information
to the consumer on how to contact the Federal Trade Commission and the
consumer reporting agencies described in section 603(p) to obtain more
detailed information and request alerts under this section.''.
SEC. 113. TRUNCATION OF CREDIT CARD AND DEBIT CARD ACCOUNT NUMBERS.
Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c) is
amended by adding at the end the following:
``(g) Truncation of Credit Card and Debit Card Numbers.--
``(1) In general.--Except as otherwise specifically
provided in this subsection, no person that accepts credit
cards or debit cards for the transaction of business shall
print more than the last 5 digits of the card account number or
the expiration date upon any receipt provided to the cardholder
at the point of the sale or transaction.
``(2) Limitation.--This subsection applies only to receipts
that are electronically printed, and does not apply to
transactions in which the sole means of recording a credit card
or debit card account number is by handwriting or by an imprint
or copy of the card.
``(3) Effective date.--This subsection shall become
effective--
``(A) 3 years after the date of enactment of this
subsection, with respect to any cash register or other
machine or device that electronically prints receipts
for credit card or debit card transactions that is in
use before January 1, 2005; and
``(B) 1 year after the date of enactment of this
subsection, with respect to any cash register or other
machine or device that electronically prints receipts
for credit card or debit card transactions that is
first put into use on or after January 1, 2005.''.
SEC. 114. ESTABLISHMENT OF PROCEDURES FOR THE IDENTIFICATION OF
POSSIBLE INSTANCES OF IDENTITY THEFT.
(a) In General.--Section 615 of the Fair Credit Reporting Act (15
U.S.C. 1681m) is amended--
(1) by striking ``(e)'' at the end; and
(2) by adding at the end the following:
``(e) Red Flag Guidelines and Regulations Required.--
``(1) Guidelines.--The Federal banking agencies, the
National Credit Union Administration, and the Federal Trade
Commission shall, with respect to the entities that are subject
to their respective enforcement authority under section 621,
and in coordination as described in paragraph (2)--
``(A) establish and maintain guidelines for use by
each financial institution and each other person that
is a creditor or other user of a consumer report
regarding identity theft with respect to account
holders at, or customers of, such entities, and update
such guidelines as often as necessary;
``(B) prescribe regulations requiring each
financial institution and each other person that is a
creditor or other user of a consumer report to
establish reasonable policies and procedures for
implementing the guidelines established pursuant to
paragraph (1), to identify possible risks to account
holders or to the safety and soundness of the
institution or customers; and
``(C) prescribe regulations requiring each
financial institution and each other person that is a
creditor or other user of a consumer report to notify
the Federal Trade Commission (and any other agency or
person that such rulemaking agency determines
appropriate) in any case in which there has been, or is
reasonably believed to have been unauthorized access to
computerized or physical records which compromises the
security, confidentiality, or integrity of consumer
information maintained by or on behalf of that entity,
except that such regulations shall not apply to a good
faith acquisition of information by an employee or
agent of such entity for a business purpose of that
entity, if the information is not subject to further
unauthorized access.
``(2) Coordination.--Each agency required to prescribe
regulations under paragraph (1) shall consult and coordinate
with each other such agency so that, to the extent possible,
the regulations prescribed by each such entity are consistent
and comparable with the regulations prescribed by each other
such agency.
``(3) Criteria.--In developing the guidelines required by
paragraph (1)(A), the agencies described in paragraph (1) shall
identify patterns, practices, and specific forms of activity
that indicate the possible existence of identity theft.
``(4) Consistency with verification requirements.--Policies
and procedures established pursuant to paragraph (1) shall not
be inconsistent with, or duplicative of, the policies and
procedures required under section 5318(l) of title 31, United
States Code.
``(f) Investigation of Changes of Address.--
``(1) In general.--The Federal banking agencies, the
National Credit Union Administration, and the Federal Trade
Commission, in carrying out the responsibilities of such
agencies under subsection (e) shall, with respect to the
entities that are subject to their respective enforcement
authority under section 621, and in coordination as described
in paragraph (2), prescribe regulations applicable to card
issuers to ensure that, if any such card issuer receives a
request for an additional or replacement card for an existing
account not later than 30 days after the card issuer has
received notification of a change of address for the same
account, the card issuer will follow reasonable policies and
procedures that prohibit, as appropriate, the card issuer from
issuing the additional or replacement card, unless the card
issuer--
``(A) notifies the cardholder of the request at the
former address of the cardholder and provides to the
cardholder a means of promptly reporting incorrect
address changes;
``(B) notifies the cardholder of the request by
such other means of communication as the cardholder and
the card issuer previously agreed to; or
``(C) uses other means of assessing the validity of
the change of address, in accordance with reasonable
policies and procedures established by the card issuer
in accordance with the regulations prescribed under
subsection (e).
``(2) Coordination.--Each agency required to prescribe
regulations under paragraph (1) shall consult and coordinate
with each other such agency so that, to the extent possible,
the regulations prescribed by each such entity are consistent
and comparable with the regulations prescribed by each other
such agency.
``(3) Definition of card issuer.--For purposes of this
subsection, the term `card issuer' means--
``(A) any person who issues a credit card, or the
agent of such person with respect to such card; and
``(B) any person who issues a debit card.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect 1 year after the date of enactment of this Act.
SEC. 115. AMENDMENTS TO EXISTING IDENTITY THEFT PROHIBITION.
Section 1028 of title 18, United States Code, is amended--
(1) in subsection (a)(7)--
(A) by striking ``transfers'' and inserting
``transfers, possesses,''; and
(B) by striking ``abet,'' and inserting ``abet, or
in connection with,'';
(2) in subsection (b)(1)(D), by striking ``transfer'' and
inserting ``transfer, possession,''; and
(3) in subsection (b)(2), by striking ``three years'' and
inserting ``5 years''.
SEC. 116. AUTHORITY TO TRUNCATE SOCIAL SECURITY NUMBERS.
Section 609(a)(1) of the Fair Credit Reporting Act (15 U.S.C.
1681g(a)(1)) is amended by striking ``except that nothing'' and
inserting the following: ``except that--
``(A) if the consumer to whom the file relates
requests that the first 5 digits of the social security
number (or similar identification number) of the
consumer not be included in the disclosure and the
consumer reporting agency has received appropriate
proof of the identity of the requester, the consumer
reporting agency shall so truncate such number in such
disclosure; and
``(B) nothing''.
Subtitle B--Protection and Restoration of Identity Theft Victim Credit
History
SEC. 151. SUMMARY OF RIGHTS OF IDENTITY THEFT VICTIMS.
(a) In General.--Section 609 of the Fair Credit Reporting Act (15
U.S.C. 1681g) is amended by adding at the end the following:
``(d) Summary of Rights of Identity Theft Victims.--
``(1) In general.--The Federal Trade Commission, in
consultation with the Federal banking agencies and the National
Credit Union Administration, shall prescribe the form and
content of a summary of the rights of consumers under this
title with respect to the procedures for remedying the effects
of fraud or identity theft involving credit, electronic fund
transfers, or accounts or transactions at or with a financial
institution.
``(2) Summary of rights and contact information.--If any
consumer contacts a consumer reporting agency and expresses a
belief that the consumer is a victim of fraud or identity theft
involving credit, an electronic fund transfer, or an account or
transaction at or with a financial institution, the consumer
reporting agency shall, in addition to any other action that
the agency may take, provide the consumer with the model
summary of rights prepared by the Federal Trade Commission
under paragraph (1) and information on how to contact the
Commission to obtain more detailed information.
``(e) Information Available to Victims.--
``(1) In general.--For the purpose of documenting
fraudulent transactions resulting from identity theft, not
later than 20 days after the date of receipt of a request from
a victim in accordance with paragraph (3), and subject to
verification of the identity of the victim and the claim of
identity theft in accordance with paragraph (2), a business
entity that has provided credit to, provided for consideration
products, goods, or services to, accepted payment from, or
otherwise entered into a commercial transaction for
consideration with, a person who has allegedly made
unauthorized use of the means of identification of the victim,
shall provide a copy of application and business transaction
records in the control of the business entity, whether
maintained by the business entity or by another person on
behalf of the business entity, evidencing any transaction
alleged to be a result of identity theft to--
``(A) the victim;
``(B) any Federal, State, or local governing law
enforcement agency or officer specified by the victim
in such a request; or
``(C) any law enforcement agency investigating the
identity theft and authorized by the victim to take
receipt of records provided under this subsection.
``(2) Verification of identity and claim.--Before a
business entity provides any information under paragraph (1),
unless the business entity, at its discretion, is otherwise
able to verify the identity of the victim making a request
under paragraph (1), the victim shall provide to the business
entity--
``(A) as proof of positive identification of the
victim, at the election of the business entity--
``(i) the presentation of a government-
issued identification card;
``(ii) personally identifying information
of the same type as was provided to the
business entity by the unauthorized person; or
``(iii) personally identifying information
that the business entity typically requests
from new applicants or for new transactions, at
the time of the victim's request for
information, including any documentation
described in clauses (i) and (ii); and
``(B) as proof of a claim of identity theft, at the
election of the business entity--
``(i) a copy of a police report evidencing
the claim of the victim of identity theft; and
``(ii) a properly completed--
``(I) copy of a standardized
affidavit of identity theft developed
and made available by the Federal Trade
Commission; or
``(II) an affidavit of fact that is
acceptable to the business entity for
that purpose.
``(3) Procedures.--The request of a victim under paragraph
(1) shall--
``(A) be in writing; and
``(B) be mailed to an address specified by the
business entity, if any.
``(4) No charge to victim.--Information required to be
provided under paragraph (1) shall be so provided without
charge.
``(5) Authority to decline to provide information.--A
business entity may decline to provide information under
paragraph (1) if, in the exercise of good faith, the business
entity determines that--
``(A) this subsection does not require disclosure
of the information;
``(B) the request for the information is based on a
misrepresentation of fact by the individual requesting
the information relevant to the request for
information; or
``(C) the information requested is Internet
navigational data or similar information about a
person's visit to a website or online service.
``(6) Limitation on liability.--Except as provided in
section 621, sections 616 and 617 do not apply to any violation
of this subsection.
``(7) No new recordkeeping obligation.--Nothing in this
subsection creates an obligation on the part of a business
entity to obtain, retain, or maintain information or records
that are not otherwise required to be obtained, retained, or
maintained in the ordinary course of its business or under
other applicable law.
``(8) Rule of construction.--
``(A) In general.--No provision of Federal or State
law (except a law involving the nondisclosure of
information related to a pending Federal criminal
investigation) prohibiting the disclosure of financial
information by a business entity to third parties shall
be used to deny disclosure of information to the victim
under this subsection.
``(B) Limitation.--Except as provided in
subparagraph (A), nothing in this subsection permits a
business entity to disclose information, including
information to law enforcement under subparagraphs (B)
and (C) of paragraph (1), that the business entity is
otherwise prohibited from disclosing under any other
applicable provision of Federal or State law.
``(9) Affirmative defense.--In any civil action brought to
enforce this subsection, it is an affirmative defense (which
the defendant must establish by a preponderance of the
evidence) for a business entity to file an affidavit or answer
stating that--
``(A) the business entity has made a reasonably
diligent search of its available business records; and
``(B) the records requested under this subsection
do not exist or are not available.
``(10) Definition of victim.--For purposes of this
subsection, the term `victim' means a consumer whose means of
identification or financial information has been used or
transferred (or has been alleged to have been used or
transferred) without the authority of that consumer, with the
intent to commit, or to aid or abet, identity theft or any
other violation of law.''.
(b) Public Campaign To Prevent Identity Theft.--Not later than 2
years after the date of enactment of this Act, the Federal Trade
Commission shall establish and implement a media and distribution
campaign to teach the public how to prevent identity theft. Such
campaign shall include existing Federal Trade Commission education
materials, as well as radio, television, and print public service
announcements, video cassettes, interactive digital video discs (DVD's)
or compact audio discs (CD's), and Internet resources.
(c) Conforming Amendment.--Section 624(b)(3) of the Fair Credit
Reporting Act (15 U.S.C. 1681t(b)(3), regarding relation to State laws)
is amended by striking ``section 609(c)'' and inserting ``subsection
(c) or (d) of section 609''.
SEC. 152. BLOCKING OF INFORMATION RESULTING FROM IDENTITY THEFT.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.) is amended by inserting after section 605A, as added by this Act,
the following:
``Sec. 605B. Block of information resulting from identity theft
``(a) Block.--Except as otherwise provided in this section, a
consumer reporting agency shall block the reporting of any information
in the file of a consumer that the consumer identifies as information
that resulted from an alleged identity theft, not later than 3 business
days after the date of receipt by such agency of--
``(1) appropriate proof of the identity of the consumer;
``(2) a copy of an identity theft report; and
``(3) the identification of such information by the
consumer.
``(b) Notification.--A consumer reporting agency shall promptly
notify the furnisher of information identified by the consumer under
subsection (a)--
``(1) that the information may be a result of identity
theft;
``(2) that an identity theft report has been filed;
``(3) that a block has been requested under this section;
and
``(4) of the effective dates of the block.
``(c) Authority To Decline or Rescind.--
``(1) In general.--A consumer reporting agency may decline
to block, or may rescind any block, of information relating to
a consumer under this section, if the consumer reporting agency
reasonably determines that--
``(A) the information was blocked in error or a
block was requested by the consumer in error;
``(B) the information was blocked, or a block was
requested by the consumer, on the basis of a material
misrepresentation of fact relevant to the request to
block; or
``(C) the consumer obtained possession of goods,
services, or money as a result of the blocked
transaction or transactions.
``(2) Notification to consumer.--If a block of information
is declined or rescinded under this subsection, the affected
consumer shall be notified promptly, in the same manner as
consumers are notified of the reinsertion of information under
section 611(a)(5)(B).
``(3) Significance of block.--For purposes of this
subsection, if a consumer reporting agency rescinds a block,
the presence of information in the file of a consumer prior to
the blocking of such information is not evidence of whether the
consumer knew or should have known that the consumer obtained
possession of any goods, services, or money as a result of the
block.
``(d) Exception for Resellers.--
``(1) No reseller file.--This section shall not apply to a
consumer reporting agency, if the consumer reporting agency--
``(A) is a reseller;
``(B) is not, at the time of the request of the
consumer under subsection (a), otherwise furnishing or
reselling a consumer report concerning the information
identified by the consumer; and
``(C) informs the consumer, by any means, that the
consumer may report the identity theft to the Federal
Trade Commission to obtain consumer information
regarding identity theft.
``(2) Reseller with file.--The sole obligation of the
consumer reporting agency under this section, with regard to
any request of a consumer under this section, shall be to block
the consumer report maintained by the consumer reporting agency
from any subsequent use, if--
``(A) the consumer, in accordance with the
provisions of subsection (a), identifies, to a consumer
reporting agency, information in the file of the
consumer that resulted from identity theft; and
``(B) the consumer reporting agency is a reseller
of the identified information.
``(3) Notice.--In carrying out its obligation under
paragraph (2), the reseller shall promptly provide a notice to
the consumer of the decision to block the file. Such notice
shall contain the name, address, and telephone number of each
consumer reporting agency from which the consumer information
was obtained for resale.
``(e) Exception for Verification Companies.--The provisions of this
section do not apply to a check services company, acting as such, which
issues authorizations for the purpose of approving or processing
negotiable instruments, electronic fund transfers, or similar methods
of payments, except that, beginning 3 business days after receipt of
information described in paragraphs (1) through (3) of subsection (a),
a check services company shall not report to a national consumer
reporting agency described in section 603(p), any information
identified in the subject identity theft report as resulting from
identity theft.
``(f) Access to Blocked Information by Law Enforcement Agencies.--
No provision of this section shall be construed as requiring a consumer
reporting agency to prevent a Federal, State, or local law enforcement
agency from accessing blocked information in a consumer file to which
the agency could otherwise obtain access under this title.''.
(b) Clerical Amendment.--The table of sections for the Fair Credit
Reporting Act (15 U.S.C. 1681 et seq.) is amended by inserting after
the item relating to section 605 the following new items:
``605A. Identity theft prevention; fraud alerts and active duty alerts.
``605B. Block of information resulting from identity theft.''.
SEC. 153. COORDINATION OF IDENTITY THEFT COMPLAINT INVESTIGATIONS.
Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is
amended by adding at the end the following:
``(f) Coordination of Consumer Complaint Investigations.--
``(1) In general.--Each consumer reporting agency described
in section 603(p) shall develop and maintain procedures for the
referral to each other such agency of any consumer complaint
received by the agency alleging identity theft, or requesting a
fraud alert under section 605A or a block under section 605B.
``(2) Model form and procedure for reporting identity
theft.--The Federal Trade Commission, in consultation with the
Federal banking agencies and the National Credit Union
Administration, shall develop a model form and model procedures
to be used by consumers who are victims of identity theft for
contacting and informing creditors and consumer reporting
agencies of the fraud.
``(3) Annual summary reports.--Each consumer reporting
agency described in section 603(p) shall submit an annual
summary report to the Federal Trade Commission on consumer
complaints received by the agency on identity theft or fraud
alerts.''.
SEC. 154. PREVENTION OF REPOLLUTION OF CONSUMER REPORTS.
(a) Prevention of Reinsertion of Erroneous Information.--
(1) Duties of furnishers upon notice of identity theft-
related disputes.--Section 623(b) of the Fair Credit Reporting
Act (15 U.S.C. 1681s-2(b)) is amended--
(A) by redesignating paragraph (2) as paragraph
(3);
(B) by inserting after paragraph (1) the following:
``(2) Duties of furnishers upon notice of identity theft-
related disputes.--A person that furnishes information to any
consumer reporting agency shall--
``(A) have in place reasonable procedures to
respond to any notification that it receives from a
consumer reporting agency under section 605B relating
to information resulting from identity theft, to
prevent that person from refurnishing such blocked
information; and
``(B) take the actions described in subparagraphs
(A) through (D) of paragraph (1), if such person
receives directly from a consumer, an identity theft
report or a properly completed copy of a standardized
affidavit of identity theft developed and made
available by the Federal Trade Commission.''; and
(C) in paragraph (3), as redesignated, by striking
``paragraph (1)'' and inserting ``this subsection''.
(2) Conforming amendments relating to notice of identity
theft directly from consumers.--Section 623(b)(1) of the Fair
Credit Reporting Act (15 U.S.C. 1681s-2(b)(1)) is amended--
(A) in the matter preceding subparagraph (A), by
inserting ``or as described in paragraph (2)(B),''
after ``agency,'';
(B) subparagraph (B), by inserting before the
semicolon the following: ``, and by the consumer, and
other documentation reasonably available to the person
that is necessary to conduct a reasonable
investigation''; and
(C) in subparagraph (C), by inserting before the
semicolon at the end the following: ``, and to the
consumer, if notice of the dispute was received
directly from the consumer, as described in paragraph
(2)(B)''.
(b) Prohibition on Sale or Transfer of Debt Caused by Identity
Theft.--Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m),
as amended by this Act, is amended by adding at the end the following:
``(g) Prohibition on Sale or Transfer of Debt Caused by Identity
Theft.--
``(1) In general.--No person shall sell, transfer for
consideration, or place for collection a debt that such person
has been notified under section 605B has resulted from identity
theft.
``(2) Applicability.--The prohibitions of this subsection
shall apply to all persons collecting a debt described in
paragraph (1) after the date of a notification under paragraph
(1).
``(3) Rule of construction.--Nothing in this subsection
shall be construed to prohibit--
``(A) the repurchase of a debt in any case in which
the assignee of the debt requires such repurchase
because the debt has resulted from identity theft;
``(B) the securitization of a debt; or
``(C) the transfer of debt as a result of a merger,
acquisition, purchase and assumption transaction, or
transfer of substantially all of the assets of an
entity.''.
SEC. 155. NOTICE BY DEBT COLLECTORS WITH RESPECT TO FRAUDULENT
INFORMATION.
Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m), as
amended by this Act, is amended by adding at the end the following:
``(h) Debt Collector Communications Concerning Identity Theft.--If
a person acting as a debt collector (as that term is defined in title
VIII) on behalf of a third party that is a creditor or other user of a
consumer report is notified that any information relating to a debt
that the person is attempting to collect may be fraudulent or may be
the result of identity theft, that person shall--
``(1) notify the third party that the information may be
fraudulent or may be the result of identity theft; and
``(2) upon request of the consumer to whom the debt
purportedly relates, provide to the consumer all information to
which the consumer would otherwise be entitled if the consumer
were not a victim of identity theft, but wished to dispute the
debt under provisions of law applicable to that person.''.
SEC. 156. STATUTE OF LIMITATIONS.
Section 618 of the Fair Credit Reporting Act (15 U.S.C. 1681p) is
amended to read as follows:
``Sec. 618. Jurisdiction of courts; limitation of actions
``An action to enforce any liability created under this title may
be brought in any appropriate United States district court, without
regard to the amount in controversy, or in any other court of competent
jurisdiction, not later than the earlier of--
``(1) 2 years after the date of discovery by the plaintiff
of the violation that is the basis for such liability; or
``(2) 5 years after the date on which the violation that is
the basis for such liability occurs.''.
TITLE II--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT
INFORMATION
SEC. 211. FREE CREDIT REPORTS.
(a) In General.--Section 612 of the Fair Credit Reporting Act (15
U.S.C. 1681j) is amended--
(1) by redesignating subsection (a) as subsection (f), and
transferring it to the end of the section;
(2) by inserting before subsection (b) the following:
``(a) Free Annual Disclosure.--
``(1) In general.--A consumer reporting agency described in
section 603(p) shall make all disclosures pursuant to section
609 once during any 12-month period upon request of the
consumer and without charge to the consumer, only if the
request is made by mail or through an Internet website using
the centralized system and the standardized form established
for such requests in accordance with section 211(c) of the
National Consumer Credit Reporting System Improvement Act of
2003.
``(2) Timing.--A consumer reporting agency shall provide a
consumer report under paragraph (1) not later than 15 days
after the date on which the request is received under paragraph
(1).
``(3) Reinvestigations.--Notwithstanding the time periods
specified in section 611(a)(1), a reinvestigation under that
section by a consumer reporting agency upon a request of a
consumer that is made after receiving a consumer report under
this subsection shall be completed not later than 45 days after
the date on which the request is received.'';
(3) by redesignating subsection (d) as subsection (e);
(4) by inserting before subsection (e), as redesignated,
the following:
``(d) Free Disclosures in Connection With Fraud Alerts.--Upon the
request of a consumer, a consumer reporting agency described in section
603(p) shall make all disclosures pursuant to section 609 without
charge to the consumer, as provided in subsections (a)(2) and (b)(3) of
section 605A, as applicable.'';
(5) in subsection (e), as redesignated, by striking
``subsection (a)'' and inserting ``subsection (f)''; and
(6) in subsection (f), as redesignated, by striking
``Except as provided in subsections (b), (c), and (d), a'' and
inserting ``In the case of a request from a consumer other than
a request that is covered by any of subsections (a) through
(d), a''.
(b) Summary of Rights To Obtain and Dispute Information in Consumer
Reports and To Obtain Credit Scores.--Section 609(c) of the Fair Credit
Reporting Act (15 U.S.C. 1681g) is amended to read as follows:
``(c) Summary of Rights To Obtain and Dispute Information in
Consumer Reports and To Obtain Credit Scores.--
``(1) Commission summary of rights required.--
``(A) In general.--The Federal Trade Commission
shall prepare a model summary of the rights of
consumers under this title.
``(B) Content of summary.--The summary of rights
prepared under subparagraph (A) shall include a
description of--
``(i) the right of a consumer to obtain a
copy of a consumer report under subsection (a)
from each consumer reporting agency;
``(ii) the frequency and circumstances
under which a consumer is entitled to receive a
consumer report without charge under section
612;
``(iii) the right of a consumer to dispute
information in the file of the consumer under
section 611;
``(iv) the right of a consumer to obtain a
credit score from a consumer reporting agency,
and a description of how to obtain a credit
score; and
``(v) the method by which a consumer can
contact, and obtain a consumer report from, a
consumer reporting agency without charge, as
provided in the regulations of the Federal
Trade Commission prescribed under section
211(c) of the National Consumer Credit
Reporting System Improvement Act of 2003.
``(C) Availability of summary of rights.--The
Federal Trade Commission shall--
``(i) actively publicize the availability
of the summary of rights prepared under this
paragraph;
``(ii) conspicuously post on its Internet
website the availability of such summary of
rights; and
``(iii) promptly make such summary of
rights available to consumers, on request.
``(2) Summary of rights required to be included with agency
disclosures.--A consumer reporting agency shall provide to a
consumer, with each written disclosure by the agency to the
consumer under this section--
``(A) the summary of rights prepared by the Federal
Trade Commission under paragraph (1);
``(B) in the case of a consumer reporting agency
described in section 603(p), a toll-free telephone
number established by the agency, at which personnel
are accessible to consumers during normal business
hours;
``(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 (or the
equivalent thereof) to learn of those rights; and
``(E) a statement that a consumer reporting agency
is not required to remove accurate derogatory
information from the file of a consumer, unless the
information is outdated under section 605 or cannot be
verified.''.
(c) Rulemaking Required.--
(1) In general.--The Federal Trade Commission shall
prescribe regulations applicable to consumer reporting agencies
described in section 603(p) of the Fair Credit Reporting Act to
require the establishment of--
(A) a centralized source, through which consumers
may obtain a consumer report from each consumer
reporting agency described in that section 603(p) using
a single request and without charge to the consumer, as
provided in section 612(a) of the Fair Credit Reporting
Act (as amended by this Act);
(B) a standardized form for a consumer to make such
a request for a consumer report by mail or through an
Internet website; and
(C) streamlined methods by which such a consumer
reporting agency shall provide such consumer reports,
after consideration of--
(i) the significant demands that may be
placed on consumer reporting agencies in
providing such consumer reports;
(ii) appropriate means to ensure that
consumer reporting agencies can satisfactorily
meet those demands, including the efficacy of a
system of staggering the availability to
consumers of such consumer reports using a
quarterly method based on the birth month of
the consumer; and
(iii) the ease by which consumers should be
able to contact consumer reporting agencies
with respect to access to such consumer
reports.
(2) Timing.--Regulations required by this subsection
shall--
(A) be issued in final form not later than 6 months
after the date of enactment of this Act; and
(B) become effective not later than 6 months after
the date on which they are issued in final form.
(d) Effective Date.--The amendments made by subsections (a) and (b)
shall become effective on the effective date of the regulations
prescribed by the Federal Trade Commission in accordance with
subsection (c).
SEC. 212. CREDIT SCORES.
(a) Duties of Consumer Reporting Agencies To Disclose Credit
Scores.--
(1) In general.--Section 609(a) of the Fair Credit
Reporting Act (15 U.S.C. 1681g(a)) is amended by adding at the
end the following:
``(6) In connection with an application for an extension of
credit for a consumer purpose that is to be secured by a
dwelling--
``(A) the current, or most recent, credit score of
the consumer that was previously calculated by the
agency;
``(B) the range of possible credit scores under the
model used;
``(C) the key factors, if any, not to exceed 4,
that adversely affected the credit score of the
consumer in the model used;
``(D) the date on which the credit score was
created; and
``(E) the name of the person or entity that
provided the credit score or the credit file on the
basis of which the credit score was created.''.
(2) Limitations on required provision of credit score.--
Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g),
as amended by this Act, is amended by adding at the end the
following:
``(f) Limitations on Required Provision of Credit Score.--
``(1) In general.--Subsection (a)(6) may not be construed--
``(A) to compel a consumer reporting agency to
develop or disclose a credit score if the agency does
not, in the ordinary course of its business--
``(i) distribute scores that are used in
connection with extensions of credit secured by
residential real property; or
``(ii) develop credit scores that assist
creditors in understanding the general credit
behavior of the consumer and predicting future
credit behavior;
``(B) to require a consumer reporting agency that
distributes credit scores developed by another person
or entity to provide a further explanation of those
scores, or to process a dispute arising pursuant to
section 611(a), except that the consumer reporting
agency shall be required to provide to the consumer the
name and information for contacting the person or
entity that developed the score;
``(C) to require a consumer reporting agency to
maintain credit scores in its files; or
``(D) to compel disclosure of a credit score,
except upon specific request of the consumer, except
that if a consumer requests the credit file and not the
credit score, then the consumer shall be provided with
the credit file and a statement that the consumer may
request and obtain a credit score.
``(2) Provision of scoring model.--In complying with
subsection (a)(6) and this subsection, a consumer reporting
agency shall supply to the consumer--
``(A) a credit score that is derived from a credit
scoring model that is widely distributed to users of
credit scores by that consumer reporting agency in
connection with any extension of credit secured by a
dwelling; or
``(B) a credit score that assists the consumer in
understanding the credit scoring assessment of the
credit behavior of the consumer and predictions about
future credit behavior.''.
(3) Conforming amendment.--Section 609(a)(1)(B) of the Fair
Credit Reporting Act (15 U.S.C. 1681g(a)(1)(B)), as so
designated by section 116, is amended by inserting before the
period ``, other than as provided in paragraph (6)''.
(b) Duties of Users of Credit Scores.--
(1) In general.--Section 615 of the Fair Credit Reporting
Act (15 U.S.C. 1681m), as amended by this Act, is amended by
adding at the end the following:
``(i) Duties of Users of Credit Scores.--
``(1) Disclosures.--Any person that makes or arranges
extensions of credit for consumer purposes that are to be
secured by a dwelling and that uses credit scores for that
purpose, shall be required to provide to the consumer to whom
the credit score relates, as soon as is reasonably practicable
after such use--
``(A) a copy of the information described in
section 609(a)(6) that was obtained from a consumer
reporting agency or that was developed and used by that
user of the credit score information; or
``(B) if the user of the credit score information
obtained such information from a third party that
developed such information (other than a consumer
reporting agency or the user itself), only--
``(i) a copy of the information described
in section 609(a)(6) provided to the user by
the person or entity that developed the credit
score; and
``(ii) a notice that generally describes
credit scores, their use, and the sources and
kinds of data used to generate credit scores.
``(2) Rule of construction.--This subsection may not be
construed to require the user of a credit score described in
paragraph (1)--
``(A) to explain to the consumer the information
provided pursuant to section 609(a)(6), unless that
information was developed by the user;
``(B) to disclose any information other than a
credit score or the key factors required to be
disclosed under section 609(a)(6)(C);
``(C) to disclose any credit score or related
information obtained by the user after a transaction
occurs; or
``(D) to provide more than 1 disclosure under this
subsection to any 1 consumer per credit transaction.
``(3) Limitation.--Except as otherwise provided in this
subsection, the obligation of a user of a credit score under
this subsection shall be limited solely to providing a copy of
the information that was received from the consumer reporting
agency or other person. A user of a credit score has no
liability under this subsection for the content of credit score
information received from a consumer reporting agency or for
the omission of any information within the report provided by
the consumer reporting agency.''.
(2) Conforming amendment.--Section 615 of the Fair Credit
Reporting Act (15 U.S.C. 1681m) is amended in the section
heading, by adding at the end the following: ``and credit
scores''.
(c) Contractual Liability.--Section 616 of the Fair Credit
Reporting Act (15 U.S.C. 1681n) is amended by adding at the end the
following:
``(d) Use of Credit Scores.--Any provision of any contract that
prohibits the disclosure of a credit score by a consumer reporting
agency or a person who makes or arranges extensions of credit to the
consumer to whom the credit score relates is void. A user of a credit
score shall not have liability under any such contractual provision for
disclosure of a credit score.''.
(d) Relation to State Laws.--Section 624(b)(1) of the Fair Credit
Reporting Act (15 U.S.C. 1681t(b)(1), regarding relation to State laws)
is amended--
(1) in subparagraph (E), by striking ``or'' at the end; and
(2) by adding at the end the following:
``(G) subsections (a)(6) and (f) of section 609,
relating to the disclosure of credit scores by consumer
reporting agencies in connection with an application
for an extension of credit that is to be secured by a
dwelling;
``(H) section 615(i), relating to the duties of
users of credit scores to disclose credit score
information to consumers in connection with an
application for an extension of credit that is to be
secured by a dwelling; or''.
(e) Effective Date.--The amendments made by this section shall
become effective 180 days after the date of enactment of this Act.
SEC. 213. ENHANCED DISCLOSURE OF THE MEANS AVAILABLE TO OPT OUT OF
PRESCREENED LISTS.
(a) Notice and Response Format for Users of Reports.--Section
615(d)(2) of the Fair Credit Reporting Act (15 U.S.C. 1681m(d)(2)) is
amended to read as follows:
``(2) Disclosure of address and telephone number; format.--
A statement under paragraph (1) shall--
``(A) include the address and toll-free telephone
number of the appropriate notification system
established under section 604(e); and
``(B) be presented in such format and in such type
size and manner as is established by the Federal Trade
Commission, by rule, in consultation with the Federal
banking agencies and the National Credit Union
Administration.''.
(b) Rulemaking Schedule.--Regulations required by section 615(d)(2)
of the Fair Credit Reporting Act, as amended by this section, shall be
issued in final form not later than 1 year after the date of enactment
of this Act.
(c) Duration of Elections.--Section 604(e) of the Fair Credit
Reporting Act (15 U.S.C. 1681b(e)) is amended in each of paragraphs
(3)(A) and (4)(B)(i)), by striking ``2-year period'' each place that
term appears and inserting ``7-year period''.
(d) Public Awareness Campaign.--The Federal Trade Commission shall
actively publicize and conspicuously post on its website any address
and the toll-free telephone number established as part of a
notification system for opting out of prescreening under section
604(e), and otherwise take measures to increase public awareness
regarding the availability of the right to opt out of prescreening.
SEC. 214. AFFILIATE SHARING.
(a) Limitation.--The Fair Credit Reporting Act (15 U.S.C. 1601 et
seq.) is amended--
(1) by redesignating section 624 (regarding relation to
State laws), as so designated by section 2413(b) of the
Consumer Credit Reporting Reform Act of 1996 (110 Stat. 3009-
447), as section 625;
(2) by redesignating section 624 (regarding disclosures to
FBI for counterintelligence purposes), as added by section
601(a) of the Intelligence Authorization Act for Fiscal Year
1996 (Public Law 104-93; 109 Stat. 974) (15 U.S.C. 1681u)), as
section 626; and
(3) by inserting after section 623 the following:
``SEC. 624. AFFILIATE SHARING.
``(a) Special Rule for Solicitation for Purposes of Marketing.--
``(1) Notice.--Any person that receives from another person
related to it by common ownership or affiliated by corporate
control a communication of information that would be a consumer
report, except for clauses (i) through (iii) of section
603(d)(2)(A), may not use the information to make a
solicitation for marketing purposes to a consumer about its
products or services, unless--
``(A) it is clearly and conspicuously disclosed to
the consumer that the information may be communicated
among such persons for purposes of making such
solicitations to the consumer; and
``(B) the consumer is provided an opportunity and a
simple method to prohibit the making of such
solicitations to the consumer by such person.
``(2) Consumer choice.--
``(A) In general.--The notice required under
paragraph (1) shall allow the consumer the opportunity
to prohibit all such solicitations, and may allow the
consumer to choose from different options when electing
to prohibit the sending of such solicitations,
including options regarding the types of entities and
information covered, and which methods of delivering
solicitations the consumer elects to prohibit.
``(B) Format.--Notwithstanding subparagraph (A),
the notice required under paragraph (1) must be clear,
conspicuous, and concise, and any method provided under
paragraph (1)(B) must be simple. The regulations
prescribed to implement this section shall provide
specific guidance regarding how to comply with such
standards.
``(3) Duration.--The election of a consumer pursuant to
paragraph (1)(B) to prohibit the sending of solicitations shall
be effective permanently, beginning on the date on which the
person receives the election of the consumer, unless the
consumer requests that such election be revoked.
``(4) Definition.--For purposes of this section, the term
`pre-existing business relationship' means a relationship
between a person and a consumer, based on--
``(A) the purchase, rental, or lease by the
consumer of that person's goods or services, or a
financial transaction between the consumer and that
person during the 18-month period immediately preceding
the date on which the consumer receives the notice
required under this section; or
``(B) an inquiry or application by the consumer
regarding a product or service offered by that person,
during the 3-month period immediately preceding the
date on which the consumer receives the notice required
under this section.
``(5) Scope.--This section shall not apply to a person--
``(A) using information to make a solicitation for
marketing purposes to a consumer with whom the person
has a pre-existing business relationship;
``(B) using information to perform services on
behalf of another person related by common ownership or
affiliated by corporate control, except that this
subparagraph shall not permit a person to send
solicitations on behalf of another person if such other
person would not be permitted to send the solicitation
on its own behalf as a result of the election of the
consumer to prohibit solicitations under paragraph
(1)(B);
``(C) using information in direct response to a
communication initiated by the consumer in which the
consumer has requested information about a product or
service; or
``(D) using information to directly respond to
solicitations authorized or requested by the consumer.
``(b) Notice for Other Purposes Permissible.--A notice or other
disclosure that is equivalent to the notice required by subsection (a),
and that is provided by a person described in subsection (a) to a
consumer together with disclosures required by any other provision of
law shall satisfy the requirements of subsection (a).''.
(b) Rulemaking Required.--
(1) In general.--The Federal banking agencies, the National
Credit Union Administration, and the Federal Trade Commission
shall, with respect to the entities that are subject to their
respective enforcement authority under section 621 of the Fair
Credit Reporting Act, and in coordination as described in
paragraph (2), prescribe regulations to implement section 624
of the Fair Credit Reporting Act, as added by this section.
(2) Coordination.--Each agency required to prescribe
regulations under paragraph (1) shall consult and coordinate
with each other such agency so that, to the extent possible,
the regulations prescribed by each such entity are consistent
and comparable with the regulations prescribed by each other
such agency.
(3) Considerations.--In promulgating regulations under this
subsection, the Federal Trade Commission shall--
(A) ensure that affiliate sharing notification
methods provide a simple means for consumers to make
determinations and choices under section 624 of the
Fair Credit Reporting Act, as added by this section;
and
(B) consider the affiliate sharing notification
practices employed on the date of enactment of this Act
by persons that will be subject to that section 624.
(4) Timing.--Regulations required by this subsection
shall--
(A) be issued in final form not later than 6 months
after the date of enactment of this Act; and
(B) become effective not later than 3 months after
the date on which they are issued in final form.
(c) Conforming Amendment.--Section 603(d)(2)(A) of the Fair Credit
Reporting Act (15 U.S.C. 1681a(d)(2)(A)) is amended by inserting
``subject to section 624,'' after ``(A)''.
(d) Clerical Amendment.--The Fair Credit Reporting Act (15 U.S.C.
1681 et seq.) is amended in the table of sections, by striking the
items following the item relating to section 623 and inserting the
following:
``624. Affiliate sharing.
``625. Relation to State laws.
``626. Disclosures to FBI for counterintelligence purposes.''.
(e) Studies of Information Sharing Practices.--
(1) In general.--The Federal banking agencies, the National
Credit Union Administration, and the Federal Trade Commission
shall jointly conduct regular studies of the consumer
information sharing practices by financial institutions and
other persons that are creditors or users of consumer reports
with their affiliates.
(2) Matters for study.--In conducting the studies required
by paragraph (1), the agencies described in paragraph (1)
shall--
(A) identify--
(i) the purposes for which financial
institutions and other creditors and users of
consumer reports share consumer information;
(ii) the types of information shared by
such entities with their affiliates;
(iii) the number of choices provided to
consumers with respect to the control of such
sharing, and the degree to and manner in which
consumers exercise such choices, if at all; and
(iv) whether such entities share or may
share personally identifiable transaction or
experience information with affiliates for
purposes--
(I) that are related to employment
or hiring, including whether the person
that is the subject of such information
is given notice of such sharing, and
the specific uses of such shared
information; or
(II) of general publication of such
information; and
(B) specifically examine the information sharing
practices that financial institutions and other
creditors and users of consumer reports and their
affiliates employ for the purpose of making
underwriting decisions or credit evaluations of
consumers.
(3) Reports.--
(A) Initial report.--Not later than 3 years after
the date of enactment of this Act, the Federal banking
agencies, the National Credit Union Administration, and
the Federal Trade Commission shall jointly submit a
report to the Congress on the results of the initial
study conducted in accordance with this subsection,
together with any recommendations for legislative or
regulatory action.
(B) Followup reports.--The Federal banking
agencies, the National Credit Union Administration, and
the Federal Trade Commission shall, not less frequently
than once every 3 years following the date of
submission of the initial report under subparagraph
(A), jointly submit a report to the Congress that,
together with any recommendations for legislative or
regulatory action--
(i) documents any changes in the areas of
study referred to in paragraph (2)(A) occurring
since the date of submission of the previous
report;
(ii) identifies any changes in the
practices of financial institutions and other
creditors and users of consumer reports in
sharing consumer information with their
affiliates for the purpose of making
underwriting decisions or credit evaluations of
consumers occurring since the date of
submission of the previous report; and
(iii) examines the effects that changes
described in clause (ii) have had, if any, on
the degree to which such affiliate sharing
practices reduce the need for financial
institutions, creditors, and other users of
consumer reports to rely on credit reports for
such decisions.
(f) Definitions.--As used in this section--
(1) the terms ``consumer'', ``consumer report'', ``consumer
reporting agency'', ``creditor'', ``Federal banking agencies'',
and ``financial institution'', have the same meanings as in
section 603 of the Fair Credit Reporting Act, as amended by
this Act; and
(2) the term ``affiliates'' means persons that are related
by common ownership or affiliated by corporate control.
SEC. 215. STUDY OF EFFECTS OF CREDIT SCORES AND CREDIT-BASED INSURANCE
SCORES ON AVAILABILITY AND AFFORDABILITY OF FINANCIAL
PRODUCTS.
(a) Defined Term.--As used in this section, the term ``credit
score'' means a numerical value or a categorization derived from a
statistical tool or modeling system used to predict the likelihood of
certain credit or insurance behaviors, including default.
(b) Study Required.--The Federal Trade Commission shall conduct a
study of--
(1) the effects of the use of credit scores and credit-
based insurance scores on the availability and affordability of
financial products and services, including credit cards,
mortgages, auto loans, and property and casualty insurance;
(2) the degree of correlation between the factors
considered by credit score systems and the quantifiable risks
and actual losses experienced by businesses, including the
extent to which each of the factors considered or otherwise
taken into account by such systems correlated to risk or loss;
(3) the extent to which the use of credit scoring models,
credit scores and credit-based insurance scores benefit or
negatively impact persons based on geography, income,
ethnicity, race, color, religion, national origin, age, sex,
marital status, or creed; and
(4) the extent to which credit scoring systems are used by
businesses, the factors considered by such systems, and the
effects of variables which are not considered by such systems.
(c) Public Participation.--The Federal Trade Commission shall seek
public input about the prescribed methodology and research design of
the study required by subsection (b).
(d) Report.--
(1) In general.--Before the end of the 18-month period
beginning on the date of enactment of this Act, the Federal
Trade Commission shall submit a detailed report on the study
conducted under this section to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(2) Contents.--The report submitted under paragraph (1)
shall include--
(A) the findings and conclusions of the Commission;
(B) recommendations to address specific areas of
concern that were identified in the study; and
(C) recommendations for legislative or
administrative action that the Commission may determine
to be necessary to ensure that credit and credit-based
insurances score are used appropriately and fairly.
SEC. 216. DISPOSAL OF CONSUMER REPORT INFORMATION AND RECORDS.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681m) is
amended by adding at the end the following:
``Sec. 627. Disposal of records
``(a) Regulations.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Federal Trade Commission shall
issue final regulations requiring any person that maintains or
otherwise possesses consumer information or any compilation of
consumer information derived from consumer reports for a
business purpose to properly dispose of any such information or
compilation.
``(2) Exemption authority.--In issuing regulations under
this section, the Federal Trade Commission may exempt any
person or class of persons from application of those
regulations, as the Commission deems appropriate to carry out
the purpose of this section.
``(b) Rule of Construction.--Nothing in this section may be
construed to alter or affect any requirement imposed under any other
provision of law to maintain any record.''.
(b) Clerical Amendment.--The table of sections for the Fair Credit
Reporting Act (15 U.S.C. 1681 et seq.), as amended by this Act, is
amended by adding at the end the following:
``627. Disposal of records.''.
TITLE III--ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION
SEC. 311. RISK-BASED PRICING NOTICE.
(a) Duties of Users.--Section 615 of the Fair Credit Reporting Act
(15 U.S.C. 1681m), as amended by this Act, is amended by adding at the
end the following:
``(j) Duties of Users in Certain Credit Transactions.--
``(1) In general.--Subject to rules prescribed as provided
in paragraph (5), if any person uses a consumer report in
connection with a grant, extension, or other provision of
credit on material terms that are materially less favorable
than the most favorable terms available to a substantial
proportion of consumers from or through that person, based in
whole or in part on a consumer report, the person shall provide
a notice to the consumer in the form and manner required by
regulations prescribed in accordance with this subsection.
``(2) Exceptions.--No notice shall be required from a
person under this subsection if--
``(A) the consumer applied for specific material
terms and was granted those terms, unless those terms
were initially specified by the person after the
transaction was initiated by the consumer and after the
person obtained a consumer report; or
``(B) the person has provided or will provide a
notice to the consumer under subsection (a) in
connection with the transaction.
``(3) Other notice not sufficient.--A person that is
required to provide a notice under subsection (a) cannot meet
that requirement by providing a notice under this subsection.
``(4) Content and delivery of notice.--A notice under this
subsection shall include, at a minimum--
``(A) a statement informing the consumer that the
terms offered to the consumer were set based on
information from a consumer report;
``(B) identification of the consumer reporting
agency that furnished that report;
``(C) a statement informing the consumer that the
consumer may obtain a copy of a consumer report from
that consumer reporting agency without charge; and
``(D) the contact information specified by that
consumer reporting agency for obtaining such consumer
reports (including a toll-free telephone number
established by the agency in the case of a consumer
reporting agency described in section 603(p)).
``(5) Rulemaking.--
``(A) Rules required.--The Federal Trade Commission
and the Board of Governors of the Federal Reserve
System shall jointly prescribe rules, in accordance
with section 553 of title 5, United States Code, to
carry out this subsection.
``(B) Content.--Rules required by subparagraph (A)
shall address, but are not limited to--
``(i) the form, content, time, and manner
of delivery of any notice under this
subsection;
``(ii) clarification of the meaning of
terms used in this subsection, including what
credit terms are material, and when credit
terms are materially less favorable;
``(iii) exceptions to the notice
requirement under this subsection for classes
of persons or transactions regarding which the
agencies determine that notice would not
significantly benefit consumers; and
``(iv) a model notice that may be used to
comply with this subsection.''.
(b) Relation to State Laws.--Section 625(b)(1) of the Fair Credit
Reporting Act (15 U.S.C. 1681t(b)(1), regarding relation to State
laws), as so designated and amended by this Act, is amended by adding
at the end the following:
``(I) section 615(j), relating to the duties of
users of consumer reports to provide notice with
respect to terms in certain credit transactions;''.
SEC. 312. PROCEDURES TO ENHANCE THE ACCURACY AND COMPLETENESS OF
INFORMATION FURNISHED TO CONSUMER REPORTING AGENCIES.
(a) Accuracy Guidelines and Regulations.--Section 623 of the Fair
Credit Reporting Act (15 U.S.C. 15 U.S.C. 1681s-2) is amended by adding
at the end the following:
``(e) Accuracy Guidelines and Regulations Required.--
``(1) Guidelines.--The Federal banking agencies, the
National Credit Union Administration, and the Federal Trade
Commission shall, with respect to the entities that are subject
to their respective enforcement authority under section 621,
and in coordination as described in paragraph (2)--
``(A) establish and maintain guidelines for use by
each person that furnishes information to a consumer
reporting agency regarding the accuracy and
completeness of the information relating to consumers
that such entities furnish to consumer reporting
agencies, and update such guidelines as often as
necessary; and
``(B) prescribe regulations requiring each person
that furnishes information to a consumer reporting
agency to establish reasonable policies and procedures
for implementing the guidelines established pursuant to
subparagraph (A).
``(2) Coordination.--Each agency required to prescribe
regulations under paragraph (1) shall consult and coordinate
with each other such agency so that, to the extent possible,
the regulations prescribed by each such entity are consistent
and comparable with the regulations prescribed by each other
such agency.
``(3) Criteria.--In developing the guidelines required by
paragraph (1)(A), the agencies described in paragraph (1)
shall--
``(A) identify patterns, practices, and specific
forms of activity that can compromise the accuracy and
completeness of information furnished to consumer
reporting agencies;
``(B) review the methods (including technological
means) used to furnish information relating to
consumers to consumer reporting agencies;
``(C) determine whether persons that furnish
information to consumer reporting agencies maintain and
enforce policies to provide complete and accurate
information to consumer reporting agencies; and
``(D) examine the policies and processes that
persons that furnish information to consumer reporting
agencies employ to conduct reinvestigations and correct
inaccurate information relating to consumers that has
been furnished to consumer reporting agencies.''.
(b) Furnisher Liability Exception.--Section 623(a)(5) of the Fair
Credit Reporting Act (15 U.S.C. 1681s-2(a)(5)) is amended--
(1) by striking ``A person'' and inserting the following:
``(A) In general.--A person'';
(2) by inserting ``date of delinquency on the account,
which shall be the'' before ``month'';
(3) by inserting ``on the account'' before ``that
immediately preceded''; and
(4) by adding at the end the following:
``(B) Rule of construction.--For purposes of this
paragraph only, and provided that the consumer does not
dispute the information, a person that furnishes
information on a delinquent account that is placed for
collection, charged for profit or loss, or subjected to
any similar action, complies with this paragraph, if--
``(i) the person reports the same date of
delinquency as that provided by the creditor to
which the account was owed at the time at which
the commencement of the delinquency occurred,
if the creditor previously reported that date
of delinquency to a consumer reporting agency;
``(ii) the creditor did not previously
report the date of delinquency to a consumer
reporting agency, and the person establishes
and follows reasonable procedures to obtain the
date of delinquency from the creditor or
another reliable source and reports that date
as the date of delinquency; or
``(iii) the creditor did not previously
report the date of delinquency to a consumer
reporting agency and the date of delinquency
cannot be reasonably obtained as provided in
clause (ii), the person establishes and follows
reasonable procedures to ensure the date
reported as the date of delinquency precedes
the date on which the account is placed for
collection, charged to profit or loss, or
subjected to any similar action, and reports
such date to the credit reporting agency.''.
(c) Liability and Enforcement.--
(1) Civil liability.--Section 623 of the Fair Credit
Reporting Act (15 U.S.C. 1681s-2) is amended by striking
subsections (c) and (d) and inserting the following:
``(c) Limitation on Liability.--Except as provided in section
621(c)(1)(B), sections 616 and 617 do not apply to any violation of--
``(1) subsection (a) of this section;
``(2) subsection (e) of this section, except that nothing
in this paragraph shall limit, expand, or otherwise affect
liability under section 616 or 617, as applicable, for
violations of subsection (b) of this section;
``(3) subsection (e) or (f) of section 615; or
``(4) subparagraph (A) of subsection (b)(2) of this section
that is based on the development of procedures required by that
subparagraph, except that refurnishing information otherwise in
violation of subsection (b) shall be subject to liability under
sections 616 and 617, as applicable, to the same extent as such
a refurnishing violation was subject to such liability on the
day before the date of enactment of the National Consumer
Credit Reporting System Improvement Act of 2003.
``(d) Limitation on Enforcement.--The provisions of law described
in paragraphs (1) through (4) of subsection (c) (other than with
respect to the exceptions described in paragraphs (2) and (4) of
subsection (c)) shall be enforced exclusively as provided under section
621 by the Federal agencies and officials and the State officials
identified in section 621.''.
(2) State actions.--Section 621(c) of the Fair Credit
Reporting Act (15 U.S.C. 1681s(c)) is amended--
(A) in paragraph (1)(B)(ii), by striking ``of
section 623(a)'' and inserting ``described in any of
paragraphs (1) through (4) of section 623(c) (other
than with respect to the exception described in
paragraph (4) of section 623(c))''; and
(B) in paragraph (5)--
(i) in each of subparagraphs (A) and (B),
by inserting after ``section 623(a)(1)'' each
place that term appears the following: ``or a
violation described in any of paragraphs (2)
through (4) of section 623(c) (other than with
respect to the exception described in paragraph
(4) of section 623(c))''; and
(ii) by amending the paragraph heading to
read as follows:
``(5) Limitations on state actions for certain
violations.--''.
(d) Rule of Construction.--Nothing in this section, the amendments
made by this section, or any other provision of this Act shall be
construed to affect any liability under section 616 or 617 of the Fair
Credit Reporting Act (15 U.S.C. 1681n, 1681o) that existed on the day
before the date of enactment of this Act.
SEC. 313. FEDERAL TRADE COMMISSION AND CONSUMER REPORTING AGENCY ACTION
CONCERNING COMPLAINTS.
Section 611 of the Fair Credit Reporting Act (15 U.S.C. 1681i) is
amended by adding at the end the following:
``(e) Treatment of Complaints and Report to Congress.--
``(1) In general.--The Federal Trade Commission shall--
``(A) compile all complaints that it receives that
a file of a consumer that is maintained by a consumer
reporting agency described in section 603(p) contains
incomplete or inaccurate information, with respect to
which, the consumer appears to have disputed the
completeness or accuracy with the consumer reporting
agency or otherwise utilized the procedures provided by
subsection (a); and
``(B) transmit each such complaint to each consumer
reporting agency involved.
``(2) Exclusion.--Complaints received or obtained by the
Federal Trade Commission pursuant to its investigative
authority under the Federal Trade Commission Act shall not be
subject to this paragraph (1).
``(3) Agency responsibilities.--Each consumer reporting
agency described in section 603(p) that receives a complaint
transmitted by the Federal Trade Commission pursuant to
paragraph (1) shall--
``(A) review each such complaint to determine
whether all legal obligations imposed on the consumer
reporting agency under this title (including any
obligation imposed by an applicable court or
administrative order) have been met with respect to the
subject matter of the complaint;
``(B) provide reports on a regular basis to the
Commission regarding the determinations of and actions
taken by the consumer reporting agency, if any, in
connection with its review of such complaints; and
``(C) maintain, for a reasonable time period,
records regarding the disposition of each such
complaint that is sufficient to demonstrate compliance
with this subsection.
``(4) Rulemaking authority.--The Federal Trade Commission
may prescribe regulations in accordance with the requirements
of section 553 of title 5, United States Code, as appropriate
to implement this subsection.
``(5) Annual report.--The Federal Trade Commission shall
submit to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the
House of Representatives an annual report regarding information
gathered by the Commission under this subsection.''.
SEC. 314. ONGOING AUDITS OF THE ACCURACY OF CONSUMER REPORTS.
(a) Audits Required.--The Board of Governors of the Federal Reserve
System (in this section referred to as ``the Board'') shall conduct
ongoing audits of the accuracy and completeness of information
contained in consumer reports prepared or maintained by consumer
reporting agencies. The Board shall independently verify the accuracy
and completeness of information contained in consumer reports by
evaluating information and data provided by consumer reporting agencies
(as defined in section 603 of the Fair Credit Reporting Act).
(b) Subject Matters.--In conducting audits under this section, the
Board shall examine--
(1) the accuracy and completeness of information contained
in consumer reports, including an analysis of the type of
inaccurate or incomplete information, if any, that may have the
most significant impact on the availability and terms of
various credit products offered to borrowers; and
(2) the impact, if any, of incomplete and inaccurate
information on the credit and credit-based insurance scores
that are most widely used to determine borrower credit
worthiness and to make insurance underwriting and rating
decisions, including an analysis of how, if at all, changes to
credit scores resulting from inaccurate or incomplete credit
reporting information affect the availability and terms of
various credit products offered to borrowers.
(c) Biennial Reports Required.--
(1) In general.--The Board shall submit a report to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives at the end of the 2-year period beginning on
the date of enactment of this Act. Thereafter, the Board shall
conduct additional audits and submit additional reports once
every 2 years.
(2) Contents.--Each report submitted under this subsection
shall contain a detailed summary of the findings and
conclusions of the Board with respect to the audits required by
this section, and such recommendations for legislative and
administrative action as the Board may determine to be
appropriate.
(d) Provision of Reports to the Board for Purposes of Analysis.--
Section 604(d) of the Fair Credit Reporting Act (12 U.S.C. 1681b(d)) is
amended to read as follows:
``(d) Furnishing Consumer Reports for Accuracy or Compliance
Audits.--A consumer reporting agency shall provide consumer reports to
the Board of Governors of the Federal Reserve System, upon request, for
the purpose of conducting an accuracy or compliance audit in accordance
with section 314 of the National Consumer Credit Reporting System
Improvement Act of 2003.''.
SEC. 315. IMPROVED DISCLOSURE OF THE RESULTS OF REINVESTIGATION.
(a) In General.--Section 611(a)(5)(A) of the Fair Credit Reporting
Act (15 U.S.C. 1681i) is amended by striking ``shall'' and all that
follows through the end of the subparagraph, and inserting the
following: ``shall--
``(i) promptly delete that item of
information from the file of the consumer, or
modify that item of information, as
appropriate, based on the results of the
reinvestigation; and
``(ii) promptly notify the furnisher of
that information that the information has been
modified or deleted from the file of the
consumer.''.
(b) Furnisher Requirements Relating to Inaccurate, Incomplete, or
Unverifiable Information.--Section 623(b)(1) of the Fair Credit
Reporting Act (15 U.S.C. 1681s-2(b)(1)) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
and
(2) in subparagraph (D), by striking the period at the end
and inserting the following: ``; and
``(E) if an item of any information disputed by a
consumer is found to be inaccurate or incomplete or
cannot be verified after any reinvestigation under
paragraph (1), promptly delete that item of information
from the furnisher's records or modify that item of
information, as appropriate, based on the results of
the reinvestigation.''.
SEC. 316. RECONCILING ADDRESSES.
Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c), as
amended by this Act, is amended by adding at the end the following:
``(h) Notice of Discrepancy in Address.--
``(1) In general.--If a person has requested a consumer
report relating to a consumer from a consumer reporting agency
described in section 603(p), the request includes an address
for the consumer that substantially differs from the addresses
in the file of the consumer, and the agency provides a consumer
report in response to the request, the consumer reporting
agency shall notify the requester of the existence of the
discrepancy.
``(2) Regulations.--
``(A) Regulations required.--The Federal banking
agencies, the National Credit Union Administration, and
the Federal Trade Commission shall, with respect to the
entities that are subject to their respective
enforcement authority under section 621, and in
coordination as described in subparagraph (B),
prescribe regulations providing guidance regarding
reasonable policies and procedures that a user of a
consumer report should employ when such user has
received a notice of discrepancy under paragraph (1).
``(B) Coordination.--Each agency required to
prescribe regulations under subparagraph (A) shall
consult and coordinate with each other such agency so
that, to the extent possible, the regulations
prescribed by each such entity are consistent and
comparable with the regulations prescribed by each
other such agency.
``(C) Policies and procedures to be included.--The
regulations prescribed under subparagraph (A) shall
describe reasonable policies and procedures for use by
a user of a consumer report--
``(i) to form a reasonable belief that the
user knows the identity of the person to whom
the consumer report pertains; and
``(ii) if the user establishes a continuing
relationship with the consumer, and the user
regularly and in the ordinary course of
business furnishes information to the consumer
reporting agency from which the notice of
discrepancy pertaining to the consumer was
obtained, to reconcile the address of the
consumer with the consumer reporting agency by
furnishing such address to such consumer
reporting agency as part of information
regularly furnished by the user for the period
in which the relationship is established.''.
SEC. 317. FTC STUDY OF ISSUES RELATING TO THE FAIR CREDIT REPORTING
ACT.
(a) Study Required.--
(1) In general.--The Federal Trade Commission shall conduct
a study on ways to improve the operation of the Fair Credit
Reporting Act.
(2) Areas for study.--In conducting the study under
paragraph (1), the Federal Trade Commission shall review--
(A) the efficacy of increasing the number of points
of identifying information that a credit reporting
agency is required to match to ensure that a consumer
is the correct individual to whom a consumer report
relates before releasing a consumer report to a user,
including--
(i) the extent to which requiring
additional points of such identifying
information to match would--
(I) enhance the accuracy of credit
reports; and
(II) combat the provision of
incorrect consumer reports to users;
(ii) the extent to which requiring an exact
match of the first and last name, social
security number, and address and ZIP Code of
the consumer would enhance the likelihood of
increasing credit report accuracy; and
(iii) the effects of allowing consumer
reporting agencies to use partial matches of
social security numbers and name recognition
software on the accuracy of credit reports;
(B) requiring notification to consumers when
negative information has been added to their credit
reports, including--
(i) the potential impact of such
notification on the ability of consumers to
identify errors on their credit reports; and
(ii) the potential impact of such
notification on the ability of consumers to
remove fraudulent information from their credit
reports;
(C) the effects of requiring that a consumer who
has experienced an adverse action based on a credit
report receives a copy of the same credit report that
the creditor relied on in taking the adverse action,
including--
(i) the extent to which providing such
reports to consumers would increase the ability
of consumers to identify errors in their credit
reports; and
(ii) the extent to which providing such
reports to consumers would increase the ability
of consumers to remove fraudulent information
from their credit reports;
(D) any common financial transactions that are not
generally reported to the consumer reporting agencies,
but would provide useful information in determining the
credit worthiness of consumers; and
(E) any actions that might be taken within a
voluntary reporting system to encourage the reporting
of the types of transactions described in subparagraph
(D).
(3) Costs and benefits.--With respect to each area of study
described in paragraph (2), the Federal Trade Commission shall
consider the extent to which such requirements would benefit
consumers, balanced against the cost of implementing such
provisions.
(b) Report Required.--Not later than 270 days after the date of
enactment of this Act, the chairman of the Federal Trade Commission
shall submit a report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the
House of Representatives containing a detailed summary of the findings
and conclusions of the study under this section, together with such
recommendations for legislative or administrative actions as may be
appropriate.
TITLE IV--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE
FINANCIAL SYSTEM
SEC. 411. PROTECTION OF MEDICAL INFORMATION IN THE FINANCIAL SYSTEM.
(a) In General.--Section 604(g) of the Fair Credit Reporting Act
(15 U.S.C. 1681b(g)) is amended to read as follows:
``(g) Protection of Medical Information.--
``(1) Limitation on consumer reporting agencies.--A
consumer reporting agency shall not furnish for employment
purposes, or in connection with a credit or insurance
transaction, a consumer report that contains medical
information about a consumer, unless--
``(A) if furnished in connection with an insurance
transaction, the consumer affirmatively consents to the
furnishing of the report;
``(B) if furnished for employment purposes or in
connection with a credit transaction--
``(i) the information to be furnished is
relevant to process or effect the employment or
credit transaction; and
``(ii) the consumer provides specific
written consent for the furnishing of the
report that describes in clear and conspicuous
language the use for which the information will
be furnished; or
``(C) such information is restricted or reported
using codes that do not identify, or provide
information sufficient to infer, the specific provider
or the nature of such services, products, or devices to
a person other than the consumer, unless the report is
being provided to an insurance company for a purpose
relating to engaging in the business of insurance,
other than property and casualty insurance.
``(2) Limitation on creditors.--Except as permitted
pursuant to paragraph (3)(C) or regulations prescribed under
paragraph (5)(A), a creditor shall not obtain or use medical
information pertaining to a consumer in connection with any
determination of the consumer's eligibility, or continued
eligibility, for credit.
``(3) Actions authorized by federal law, insurance
activities and regulatory determinations.--Section 603(d)(3)
shall not be construed so as to treat information or any
communication of information as a consumer report if the
information or communication is disclosed--
``(A) in connection with the business of insurance
or annuities, including the activities described in
section 18B of the model Privacy of Consumer Financial
and Health Information Regulation issued by the
National Association of Insurance Commissioners (as in
effect on January 1, 2003);
``(B) for any purpose permitted without
authorization under the Standards for Individually
Identifiable Health Information promulgated by the
Department of Health and Human Services pursuant to the
Health Insurance Portability and Accountability Act of
1996, or referred to under section 1179 of such Act, or
described in section 502(e) of Public Law 106-102; or
``(C) as otherwise determined to be necessary and
appropriate, by regulation or order and subject to
paragraph (6), by the Federal Trade Commission, any
Federal banking agency or the National Credit Union
Administration (with respect to any financial
institution subject to the jurisdiction of such agency
or Administration under paragraph (1), (2), or (3) of
section 621(b), or the applicable State insurance
authority (with respect to any person engaged in
providing insurance or annuities).
``(4) Limitation on redisclosure of medical information.--
Any person that receives medical information pursuant to
paragraph (1) or (3) shall not disclose such information to any
other person, except as necessary to carry out the purpose for
which the information was initially disclosed, or as otherwise
permitted by statute, regulation, or order.
``(5) Regulations and effective date for paragraph (2).--
``(A) Regulations required.--Each Federal banking
agency and the National Credit Union Administration
shall, subject to paragraph (6) and after notice and
opportunity for comment, prescribe regulations that
permit transactions under paragraph (2) that are
determined to be necessary and appropriate to protect
legitimate operational, transactional, risk, consumer,
and other needs, consistent with the intent of
paragraph (2) to restrict the use of medical
information for inappropriate purposes.
``(B) Final regulations required.--The Federal
banking agencies and the National Credit Union
Administration shall issue the regulations required
under subparagraph (A) in final form before the end of
the 6-month period beginning on the date of enactment
of the National Consumer Credit Reporting System
Improvement Act of 2003.
``(6) Coordination with other laws.--No provision of this
subsection shall be construed as altering, affecting, or
superseding the applicability of any other provision of Federal
law relating to medical confidentiality.''.
(b) Restriction on Sharing of Medical Information.--Section 603(d)
of the Fair Credit Reporting Act (15 U.S.C. 1681a(d)) is amended--
(1) in paragraph (2), by striking ``The term'' and
inserting ``Except as provided in paragraph (3), the term'';
and
(2) by adding at the end the following new paragraph:
``(3) Restriction on sharing of medical information.--
Except for information or any communication of information
disclosed as provided in section 604(g)(3), the exclusions in
paragraph (2) shall not apply with respect to information
disclosed to any person related by common ownership or
affiliated by corporate control, if the information is medical
information, including information that is an individualized
list or description based on the payment transactions of the
consumer for medical products or services, or an aggregate list
of identified consumers based on payment transactions for
medical products or services.
(c) Definition.--Section 603(i) of the Fair Credit Reporting Act
(15 U.S.C. 1681a(i)) is amended to read as follows:
``(i) Medical Information.--The term `medical information' means
information or data, other than age or gender, whether oral or
recorded, in any form or medium, created by or derived from a health
care provider or the consumer, that relates to--
``(1) the past, present, or future physical, mental, or
behavioral health or condition of an individual;
``(2) the provision of health care to an individual; or
``(3) the payment for the provision of health care to an
individual.''.
(d) Effective Dates.--This section shall take effect at the end of
the 180-day period beginning on the date of enactment of this Act,
except that paragraph (2) of section 604(g) of the Fair Credit
Reporting Act (as amended by subsection (a)) shall take effect on the
later of--
(1) the end of the 90-day period beginning on the date on
which the regulations required under paragraph (5)(B) of such
section 604(g) (as added by subsection (a) of this section) are
issued in final form; or
(2) the date specified in the regulations referred to in
paragraph (1).
SEC. 412. CONFIDENTIALITY OF MEDICAL CONTACT INFORMATION IN CONSUMER
REPORTS.
(a) Duties of Medical Information Furnishers.--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:
``(6) Duty to provide notice of status as medical
information furnisher.--A person whose primary business is
providing medical services, products, or devices, or the
person's agent or assignee, who furnishes information to a
consumer reporting agency on a consumer shall be considered a
medical information furnisher for purposes of this title, and
shall notify the agency of such status.''.
(b) Restriction of Dissemination of Medical Contact Information.--
Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)) is
amended by adding at the end the following:
``(6) The name, address, and telephone number of any
medical information furnisher that has notified the agency of
its status, unless--
``(A) such name, address, and telephone number are
restricted or reported using codes that do not
identify, or provide information sufficient to infer,
the specific provider or the nature of such services,
products, or devices to a person other than the
consumer; or
``(B) the report is being provided to an insurance
company for a purpose relating to engaging in the
business of insurance other than property and casualty
insurance.''.
(c) No Exceptions Allowed for Dollar Amounts.--Section 605(b) of
the Fair Credit Reporting Act (15 U.S.C. 1681c(b)) is amended by
striking ``The provisions of subsection (a)'' and inserting ``The
provisions of paragraphs (1) through (5) of subsection (a)''.
(d) Coordination With Other Laws.--No provision of any amendment
made by this section shall be construed as altering, affecting, or
superseding the applicability of any other provision of Federal law
relating to medical confidentiality.
(e) FTC Regulation of Coding of Trade Names.--Section 621 of the
Fair Credit Reporting Act (15 U.S.C. 1681s), as amended by this Act, is
amended by adding at the end the following:
``(g) FTC Regulation of Coding of Trade Names.--If the Federal
Trade Commission determines that a person described in paragraph (6) of
section 623(a) has not met the requirements of such paragraph, the
Commission shall take action to ensure the person's compliance with
such paragraph, which may include issuing model guidance or prescribing
reasonable policies and procedures as necessary to ensure that such
person complies with such paragraph.''.
(f) Technical and Conforming Amendments.--Section 604(g) of the
Fair Credit Reporting Act (15 U.S.C. 1681b(g)), as amended by section
411 of this Act, is amended--
(1) in paragraph (1), by inserting ``(other than medical
contact information treated in the manner required under
section 605(a)(6))'' after ``a consumer report that contains
medical information''; and
(2) in paragraph (2), by inserting ``(other than medical
information treated in the manner required under section
605(a)(6))'' after ``a creditor shall not obtain or use medical
information''.
(g) Effective Date.--The amendments made by this section shall take
effect at the end of the 15-month period beginning on the date of
enactment of this Act.
TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT
SEC. 511. SHORT TITLE.
This title may be cited as the ``Financial Literacy and Education
Improvement Act''.
SEC. 512. DEFINITIONS.
As used in this title--
(1) the term ``Chairperson'' means the Chairperson of the
Financial Literacy and Education Commission; and
(2) the term ``Commission'' means the Financial Literacy
and Education Commission established under section 513.
SEC. 513. ESTABLISHMENT OF FINANCIAL LITERACY AND EDUCATION COMMISSION.
(a) In General.--There is established a commission to be known as
the ``Financial Literacy and Education Commission''.
(b) Purpose.--The Commission shall serve to improve the financial
literacy and education of persons in the United States.
(c) Membership.--
(1) Composition.--The Commission shall be composed of--
(A) the Secretary of the Treasury;
(B) the respective head of each of the Federal
banking agencies (as defined in section 3 of the
Federal Deposit Insurance Act), the National Credit
Union Administration, the Securities and Exchange
Commission, each of the Departments of Education,
Agriculture, Defense, Health and Human Services,
Housing and Urban Development, Labor, and Veterans
Affairs, the Federal Trade Commission, the General
Services Administration, the Small Business
Administration, the Social Security Administration, the
Commodity Futures Trading Commission, and the Office of
Personnel Management; and
(C) at the discretion of the President, not more
than 5 individuals appointed by the President from
among the administrative heads of any other Federal
agencies, departments, or other Government entities,
whom the President determines to be engaged in a
serious effort to improve financial literacy and
education.
(2) Alternates.--Each member of the Commission may
designate an alternate if the member is unable to attend a
meeting of the Commission. Such alternate shall be an
individual who exercises significant decisionmaking authority.
(d) Chairperson.--The Secretary of the Treasury shall serve as the
Chairperson.
(e) Meetings.--The Commission shall hold, at the call of the
Chairperson, at least 1 meeting every 4 months. All such meetings shall
be open to the public. The Commission may hold, at the call of the
Chairperson, such other meetings as the Chairperson sees fit to carry
out this title.
(f) Quorum.--A majority of the members of the Commission shall
constitute a quorum, but a lesser number of members may hold hearings.
(g) Initial Meeting.--The Commission shall hold its first meeting
not later than 60 days after the date of enactment of this Act.
SEC. 514. DUTIES OF THE COMMISSION.
(a) Duties.--
(1) In general.--The Commission, through the authority of
the members referred to in section 513(c), shall take such
actions as it deems necessary to streamline, improve, or
augment the financial literacy and education programs, grants,
and materials of the Federal Government, including curricula
for all Americans.
(2) Areas of emphasis.--To improve financial literacy and
education, the Commission shall emphasize, among other
elements, basic personal income and household money management
and planning skills, including how to--
(A) create household budgets, initiate savings
plans, and make strategic investment decisions for
education, retirement, home ownership, wealth building,
or other savings goals;
(B) manage spending, credit, and debt, including
credit card debt, effectively;
(C) increase awareness of the availability and
significance of credit reports and credit scores in
obtaining credit, the importance of their accuracy (and
how to correct inaccuracies), their effect on credit
terms, and the effect common financial decisions may
have on credit scores;
(D) ascertain fair and favorable credit terms;
(E) avoid abusive, predatory, or deceptive credit
offers and financial products;
(F) understand, evaluate, and compare financial
products, services, and opportunities;
(G) understand resources that ought to be easily
accessible and affordable, and that inform and educate
investors as to their rights and avenues of recourse
when an investor believes his or her rights have been
violated by unprofessional conduct of market
intermediaries; and
(H) improve financial literacy and education
through all other related skills.
(b) Website.--
(1) In general.--The Commission shall establish and
maintain a website, such as the domain name
``FinancialLiteracy.gov'', or a similar domain name.
(2) Purposes.--The website established under paragraph (1)
shall--
(A) serve as a clearinghouse of information about
Federal financial literacy and education programs;
(B) provide a coordinated entry point for accessing
information about all Federal publications, grants, and
materials promoting enhanced financial literacy and
education;
(C) offer information on all Federal grants to
promote financial literacy and education, and on how to
target, apply for, and receive a grant that is most
appropriate under the circumstances;
(D) as the Commission considers appropriate,
feature website links to efforts that have no
commercial content and that feature information about
financial literacy and education programs, materials,
or campaigns; and
(E) offer such other information as the Commission
finds appropriate to share with the public in the
fulfillment of its purpose.
(c) Toll-Free Hotline.--The Commission shall establish a toll-free
telephone number that shall be made available to members of the public
seeking information about issues pertaining to financial literacy and
education.
(d) Development and Dissemination of Materials.--The Commission
shall--
(1) develop materials to promote financial literacy and
education; and
(2) disseminate such materials to the general public.
(e) Coordination of Efforts.--The Commission shall take such steps
as are necessary to coordinate and promote financial literacy and
education efforts at the State and local level, including promoting
partnerships among Federal, State, and local governments, nonprofit
organizations, and private enterprises.
(f) National Strategy.--
(1) In general.--The Commission shall--
(A) not later than 18 months after the date of
enactment of this Act, develop a national strategy to
promote basic financial literacy and education among
all American consumers; and
(B) coordinate Federal efforts to implement the
strategy developed under subparagraph (A).
(2) Strategy.--The strategy to promote basic financial
literacy and education required to be developed under paragraph
(1) shall provide for--
(A) participation by State and local governments
and private, nonprofit, and public institutions in the
creation and implementation of such strategy;
(B) the development of methods--
(i) to increase the general financial
education level of current and future consumers
of financial services and products; and
(ii) to enhance the general understanding
of financial services and products;
(C) review of Federal activities designed to
promote financial literacy and education, and
development of a plan to improve coordination of such
activities; and
(D) the identification of areas of overlap and
duplication among Federal financial literacy and
education activities and proposed means of eliminating
any such overlap and duplication.
(3) National strategy review.--The Commission shall, not
less than annually, review the national strategy developed
under this subsection and make such changes and recommendations
as it deems necessary
(g) Consultation.--The Commission shall actively consult with a
variety of representatives from private and nonprofit organizations and
State and local agencies, as determined appropriate by the Commission.
(h) Reports.--
(1) In general.--Not later than 18 months after the date of
the first meeting of the Commission, and annually thereafter,
the Commission shall issue a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives
on the progress of the Commission in carrying out this title.
(2) Contents.--The report required under paragraph (1)
shall include--
(A) information concerning the implementation of
the duties of the Commission under subsections (a)
through (g);
(B) an assessment of the success of the Commission
in implementing the national strategy developed under
subsection (f);
(C) an assessment of the availability, utilization,
and impact of Federal financial literacy and education
materials;
(D) information concerning the content and public
use of--
(i) the website established under
subsection (b); and
(ii) the toll-free telephone number
established under subsection (c);
(E) a brief survey of the financial literacy and
education materials developed under subsection (d), and
data regarding the dissemination and impact of such
materials, as measured by improved financial decision
making;
(F) a brief summary of any hearings conducted by
the Commission, including a list of witnesses who
testified at such hearings;
(G) information about the activities of the
Commission planned for the next fiscal year;
(H) a summary of all Federal financial literacy and
education activities targeted to communities that have
historically lacked access to financial literacy
materials and education, and have been underserved by
the mainstream financial systems; and
(I) such other materials relating to the duties of
the Commission as the Commission deems appropriate.
(3) Initial report.--The initial report under paragraph (1)
shall include information regarding all Federal programs,
materials, and grants which seek to improve financial literacy,
and assess the effectiveness of such programs.
(i) Testimony.--The Commission shall provide, upon request,
testimony by the Chairperson to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial Services of
the House of Representatives.
SEC. 515. POWERS OF THE COMMISSION.
(a) Hearings.--The Commission may hold such hearings, sit and act
at such times and places, take such testimony, and receive such
evidence as the Commission considers advisable to carry out this title.
(b) Information From Federal Agencies.--The Commission may secure
directly from any Federal department or agency such information as the
Commission considers necessary to carry out this title. Upon request of
the Chairperson, the head of such department or agency shall furnish
such information to the Commission.
(c) Periodic Studies.--The Commission may conduct periodic studies
regarding the state of financial literacy and education in the United
States, as the Commission determines appropriate.
SEC. 516. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--Each member of the Commission shall
serve without compensation in addition to that received for their
service as an officer or employee of the United States.
(b) Travel Expenses.--The members of the Commission shall be
allowed travel expenses, including per diem in lieu of subsistence, at
rates authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from their homes
or regular places of business in the performance of services for the
Commission.
(c) Assistance.--
(1) In general.--The Director of the Office of Financial
Education of the Department of the Treasury shall provide
assistance to the Commission, upon request of the Commission,
without reimbursement.
(2) Detail of government employees.--Any Federal Government
employee may be detailed to the Commission without
reimbursement, and such detail shall be without interruption or
loss of civil service status or privilege.
SEC. 517. STUDY BY THE COMPTROLLER GENERAL.
Not later than 3 years after the date of enactment of this Act, the
Comptroller General of the United States shall submit a report to
Congress assessing the effectiveness of the Commission in promoting
financial literacy and education.
SEC. 518. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Commission such sums
as may be necessary to carry out this title, including administrative
expenses of the Commission.
TITLE VI--RELATION TO STATE LAW
SEC. 611. RELATION TO STATE LAW.
Section 625(d) of the Fair Credit Reporting Act (15 U.S.C.
1681t(d), regarding relation to State laws), as so designated by
section 214 of this Act, is amended--
(1) by striking paragraph (2);
(2) by striking ``(c)--'' and all that follows through ``do
not affect'' and inserting ``(c) do not affect''; and
(3) by striking ``1996; and'' and inserting ``1996.''.
TITLE VII--MISCELLANEOUS
SEC. 711. CLERICAL AMENDMENTS.
(a) Short Title.--Section 601 of the Fair Credit Reporting Act (15
U.S.C. 1601 note) is amended by striking ``the Fair Credit Reporting
Act.'' and inserting ``the `Fair Credit Reporting Act'.''.
(b) Section 604.--Section 604(a) of the Fair Credit Reporting Act
(15 U.S.C. 1681b(a)) is amended in paragraphs (1) through (5), other
than subparagraphs (E) and (F) of paragraph (3), by moving each margin
2 ems to the right.
(c) Section 605.--
(1) Section 605(a)(1) of the Fair Credit Reporting Act (15
U.S.C. 1681c(a)(1)) is amended by striking ``(1) cases'' and
inserting ``(1) Cases''.
(2)(A) Section 5(1) of Public Law 105-347 (112 Stat. 3211)
is amended by striking ``Judgments which'' and inserting
``judgments which''.
(B) The amendment made by subparagraph (A) shall be deemed
to have the same effective date as section 5(1) of Public Law
105-347 (112 Stat. 3211).
(d) Section 609.--Section 609(a) of the Fair Credit Reporting Act
(15 U.S.C. 1681g(a)) is amended--
(1) in paragraph (2), by moving the margin 2 ems to the
right; and
(2) in paragraph (3)(C), by moving the margins 2 ems to the
left.
(e) Section 617.--Section 617(a)(1) of the Fair Credit Reporting
Act (15 U.S.C. 1681o(a)(1)) is amended by adding ``and'' at the end.
(f) Section 621.--Section 621(b)(1)(B) of the Fair Credit Reporting
Act (15 U.S.C. 1681s(b)(1)(B)) is amended by striking ``25(a)'' and
inserting ``25A''.
(g) Title 31.--Section 5318 of title 31, United States Code, is
amended by redesignating the second item designated as subsection (l)
(relating to applicability of rules) as subsection (m).
(h) Conforming Amendment.--Section 2411(c) of Public Law 104-208
(110 Stat. 3009-445) is repealed.
Attest:
Secretary.
108th CONGRESS
1st Session
H. R. 2622
_______________________________________________________________________
AMENDMENT