[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2622 Engrossed in House (EH)]
108th CONGRESS
1st Session
H. R. 2622
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Fair and Accurate
Credit Transactions Act of 2003''.
(b) Table of Contents.--The table of contents for this Act are as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Effective dates.
TITLE I--UNIFORM NATIONAL CONSUMER PROTECTION STANDARDS
Sec. 101. Uniform national consumer protection standards made
permanent.
TITLE II--IDENTITY THEFT PREVENTION
Sec. 201. Investigating changes of address and inactive accounts.
Sec. 202. Fraud alerts.
Sec. 203. Truncation of credit card and debit card account numbers.
Sec. 204. Summary of rights of identity theft victims.
Sec. 205. Blocking of information resulting from identity theft.
Sec. 206. Establishment of procedures for depository institutions to
identify possible instances of identity
theft.
Sec. 207. Study on the use of technology to combat identity theft.
TITLE III--IMPROVING RESOLUTION OF CONSUMER DISPUTES
Sec. 301. Coordination of consumer complaint investigations.
Sec. 302. Notice of dispute through reseller.
Sec. 303. Reasonable investigation required.
Sec. 304. Duties of furnishers of information.
Sec. 305. Prompt investigation of disputed consumer information.
TITLE IV--IMPROVING ACCURACY OF CONSUMER RECORDS
Sec. 401. Reconciling addresses.
Sec. 402. Prevention of repollution of consumer reports.
Sec. 403. Notice by users with respect to fraudulent information.
Sec. 404. Disclosure to consumers of contact information for users and
furnishers of information in consumer
reports.
Sec. 405. FTC study of the accuracy of consumer reports.
TITLE V--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT
INFORMATION
Sec. 501. Free reports annually.
Sec. 502. Disclosure of credit scores.
Sec. 503. Simpler and easier method for consumers to use notification
system.
Sec. 504. Requirement to disclose communications to a consumer
reporting agency.
Sec. 505. Study of effects of credit scores and credit-based insurance
scores on availability and affordability of
financial products.
Sec. 506. GAO study on disparate impact of credit system.
Sec. 507. Analysis of further restrictions on offers of credit or
insurance.
Sec. 508. Study on the need and the means for improving financial
literacy among consumers.
Sec. 509. Disclosure of increase in APR under certain circumstances.
TITLE VI--PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS
Sec. 601. Certain employee investigation communications excluded from
definition of consumer report.
TITLE VII--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE
FINANCIAL SYSTEM
Sec. 701. Protection of medical information in the financial system.
Sec. 702. Confidentiality of medical information in credit reports.
SEC. 2. DEFINITIONS.
Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is
amended by adding at the end the following new subsections:
``(r) 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.
``(s) Other Definitions.--
``(1) Board; credit; creditor; credit card.--The terms
`Board', `credit', `creditor', and `credit card' have the same
meanings as in section 103 of the Truth in Lending Act.
``(2) Commission.--The term `Commission' means the Federal
Trade Commission.
``(3) Debit card.--The term `debit card' means any card
issued by a financial institution to a consumer for use in
initiating electronic fund transfers (as defined in section
903(6) of the Electronic Fund Transfer Act) from the account
(as defined in such Act) of the consumer at such financial
institution for the purpose of transferring money between
accounts or obtaining money, property, labor, or services.
``(4) Electronic fund transfer.--The term `electronic fund
transfer' has the same meaning as in section 903 of the
Electronic Fund Transfer Act.
``(5) Federal banking agency.--The term `Federal banking
agency' has the same meaning as in section 3 of the Federal
Deposit Insurance Act.
``(6) Identity theft.--The term `identity theft' means a
fraud committed using another person's identifying information,
subject to such further definition as the Commission and the
Board may prescribe, jointly, by regulation.
``(7) Police report.--The term `police report' means a copy
of any official valid report filed by a consumer with any
appropriate Federal, State, or local government law enforcement
agency, or any comparable official government document that the
Board and the Commission shall jointly prescribe in
regulations, that is subject to a criminal penalty for false
statements.''.
SEC. 3. EFFECTIVE DATES.
(a) In General.--Except as provided in subsections (b) and (c)--
(1) before the end of the 2-month period beginning on the
date of the enactment of this Act, the Board of Governors of
the Federal Reserve System and the Federal Trade Commission
shall jointly prescribe regulations in final form establishing
effective dates for each provision of this Act (except as
otherwise specified); and
(2) the regulations prescribed under paragraph (1) shall
establish effective dates that are as early as possible while
allowing a reasonable time for the implementation of the
provisions of this Act, but in no case shall the effective date
be later than 10 months after the date of issuance of such
regulations in final form.
(b) Immediate Effective Date.--The following provisions shall take
effect on the date of the enactment of this Act:
(1) Title I.
(2) Section 201.
(3) Section 609(d)(1) of the Fair Credit Reporting Act (as
added by the amendment in section 204(a)).
(4) Section 305.
(5) Section 505.
(6) Section 506.
(7) Title VI.
(c) Effective Date for Protection of Medical Information in the
Financial System.--Section 701 shall take effect at the end of the 180-
day period beginning on the date of the enactment of this Act, except
that paragraph (2) of section 604(g) of the Fair Credit Reporting Act
(as added by section 701) shall take effect on the later of--
(1) the end of the 90-day period beginning on the date the
regulations required under paragraph (5)(B) of such section
604(g) (as added by section 701) are prescribed in final form;
or
(2) the date specified in the regulations referred to in
paragraph (1).
(d) Criteria For Orderly Implementation of Free Annual Credit
Report Provision.--
(1) In general.--In developing the regulations and
effective dates under subsection (a) (and subject to the time
limits in paragraph (2) and subsection (a)), the Federal Trade
Commission and the Board of Governors of the Federal Reserve
System shall provide a systematic approach for implementing the
amendment made by section 501 that allows for an orderly
transition to the consumer report distribution system required
by the amendment in a manner that--
(A) does not temporarily overwhelm consumer
reporting agencies with requests for disclosures of
consumer reports beyond their capacity to deliver; and
(B) does not deny creditors, other users, and
consumers access to consumer credit reports on a time-
sensitive basis for specific purposes, such as home
purchases or suspicions of identity theft, during the
transition period.
(2) Prohibition on extension of effective date.--
(A) One-time authorization.--The Federal Trade
Commission and the Board of Governors of the Federal
Reserve System may exercise the authority provided
under paragraph (1) only once during the 2-month period
referred to in subsection (a)(1).
(B) Extension of effective date prohibited.--No
provision of this subsection shall be construed as
extending, or authorizing the Federal Trade Commission
or the Board of Governors of the Federal Reserve System
to extend, the 2-month period referred to in subsection
(a)(1) or the 10-month period referred to in subsection
(a)(2) relating to the requirements imposed on consumer
reporting agencies by the amendment made by section
501.
TITLE I--UNIFORM NATIONAL CONSUMER PROTECTION STANDARDS
SEC. 101. UNIFORM NATIONAL CONSUMER PROTECTION STANDARDS MADE
PERMANENT.
Section 624(d) of the Fair Credit Reporting Act (15 U.S.C.
1681t(d)) is amended--
(1) by striking ``Subsections (b) and (c)'' and all that
follows through ``do not affect any settlement,'' and inserting
``Subsections (b) and (c) do not affect any settlement,''; and
(2) by striking ``Consumer Credit Reporting Reform Act of
1996'' and all that follows through the period at the end of
paragraph (2) and inserting ``Consumer Credit Reporting Reform
Act of 1996.''.
TITLE II--IDENTITY THEFT PREVENTION
SEC. 201. INVESTIGATING CHANGES OF ADDRESS AND INACTIVE ACCOUNTS.
(a) In General.--Section 605 of the Fair Credit Reporting Act (15
U.S.C. 1681c) is amended by inserting after subsection (f), the
following new subsection:
``(g) `Red Flag' Patterns of Possible Identity Theft.--
``(1) Investigation of changes of address.--The Federal
banking agencies and the National Credit Union Administration,
in carrying out the responsibilities of such agencies and
Administration under subsection (k), shall jointly prescribe
regulations for credit card and debit card issuers to ensure
that, if any such issuer receives a request for an additional
or replacement card for an existing account within a short
period of time after the issuer has received notification of a
change of address for the same account, the issuer will follow
reasonable policies and procedures that require, as
appropriate, that the issuer not issue the additional or
replacement card unless the 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 (k).
``(2) Inactive accounts.--The Federal banking agencies and
the National Credit Union Administration, in carrying out the
responsibilities of such agencies and Administration under
subsection (k), shall consider including, as a possible `red
flag' pattern, reasonable guidelines providing that when a
transaction occurs with respect to a credit or deposit account
that has been inactive for more than 2 years, the creditor or
depository institution shall follow reasonable policies and
procedures that provide for notice to be given to a consumer in
a manner reasonably designed to reduce the likelihood of
identity theft with respect to such account.''.
(b) Clerical Amendments.--
(1) The heading for section 605 of the Fair Credit
Reporting Act is amended to read as follows:
``Sec. 605. Requirements relating to information contained in consumer
reports and to identity theft prevention''.
(2) The table of sections for title VI of the Consumer
Credit Protection Act is amended by striking the item relating
to section 605 and inserting the following new item:
``605. Requirements relating to information contained in consumer
reports and to identity theft
prevention.''.
(3) Section 624(b)(1)(E) of the Fair Credit Reporting Act
(15 U.S.C. 1681t(b)(1)(E)) is amended by inserting ``(and to
specific identity theft prevention subjects covered)'' after
``consumer reports''.
SEC. 202. FRAUD ALERTS.
Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c) is
amended by adding at the end the following new subsection:
``(i) One-Call Fraud Alerts.--
``(1) Initial alerts.--Upon the direct request of a
consumer, or an individual acting on behalf of or as a personal
representative 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) shall, if
the agency maintains a file on the consumer who is making the
request and has a reasonable belief that the agency knows the
identity of the consumer--
``(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 specifically requests that such fraud alert be
removed before the end of such period;
``(B) disclose to the consumer that the consumer
may request a free copy of the file of the consumer and
provide the consumer, upon request, a free disclosure
of the consumer's file (as described in section 609(a))
within 3 business days after such request;
``(C) for 2 years after the date of such request,
exclude the consumer from any list of consumers
prepared by the 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 subsequently requests that such
exclusion be rescinded before the end of such period;
and
``(D) refer the information regarding the fraud
alert to each of the other consumer reporting agencies
described in section 603(p), as required under section
621(f)(1).
``(2) Extended alerts.--Upon the direct request of a
consumer, or an individual acting on behalf of or as a personal
representative of a consumer, who contacts a consumer reporting
agency described in section 603(p) to report details of an
identity theft and submits evidence that provides the agency
with reasonable cause to believe that such identity theft has
occurred, the agency shall, if the agency maintains a file on
the consumer who is making the request and has a reasonable
belief that the agency knows the identity of the consumer--
``(A) include a fraud alert in the file of that
consumer and provide an opportunity for the consumer to
extend the alert for a period of up to 7 years from the
date of such request, unless the consumer subsequently
requests that such fraud alert be removed before the
end of such period;
``(B) provide the consumer with the option of
including more complete information in the consumer's
file, including a telephone number or some other
reasonable means of communication that any person who
requests the consumer's report may utilize for
authorization before establishing a new credit plan in
the name of the consumer; and
``(C) provide the consumer with at least 2 free
disclosures of the information described in section
609(a) during the 12-month period beginning on the date
of such request.
``(3) Active duty alerts.--Upon the direct request of an
active duty military consumer, or an individual acting on
behalf of or as a personal representative of an active duty
military consumer, who contacts a consumer reporting agency
described in section 603(p), the agency shall, if the agency
maintains a file on the consumer who is making the request and
has a reasonable belief that the agency knows the identity of
the consumer--
``(A) include an active duty alert in the file of
that consumer during a period of not less than 12
months beginning on the date of the request, unless the
consumer requests that such active duty alert be
removed before the end of such period;
``(B) for 2 years after the date of such request,
exclude the consumer from any list of consumers
prepared by the 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 subsequently requests that such
exclusion be rescinded before the end of such period;
and
``(C) refer the information regarding the active
duty alert to each of the other consumer reporting
agencies described in section 603(p), as required under
section 621(f)(1).
``(4) Procedures.--Each consumer reporting agency described
in section 603(p) shall establish policies and procedures to
comply with the obligations of paragraphs (1), (2), and (3),
including procedures that allow consumers to request initial,
extended, or active duty alerts in a simple and easy manner,
including by telephone.
``(5) Notice to users.--No person who obtains any
information that includes a fraud alert under this section from
a file of any consumer from a consumer reporting agency may
establish a new credit plan in the name of the consumer for a
person other than the consumer without utilizing reasonable
policies and procedures described in paragraph (9).
``(6) Referrals of fraud alerts.--Each consumer reporting
agency described in section 603(p) that receives a referral of
a fraud alert from another such agency pursuant to paragraph (1)(D) or
(3)(C) shall follow the procedures required under subparagraphs (A),
(B), and (C) of paragraph (1), in the case of a referral under
paragraph (1)(D), and subparagraphs (A) and (B), in the case of a
referral under paragraph (3)(C), as if the agency received the request
from the consumer directly.
``(7) Duty of reseller to reconvey alert.--A reseller that
is notified of the existence of a fraud alert in a consumer's
consumer report shall communicate to each person procuring a
consumer report with respect to such consumer the existence of
a fraud alert in effect for such consumer.
``(8) Duty of other consumer reporting agencies to provide
contact information.--If a consumer contacts any consumer
reporting agency that is not a consumer reporting agency
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 the consumer with information on how to contact the
Commission and the consumer reporting agencies described in
section 603(p) to obtain more detailed information and request
alerts under this subsection.
``(9) Fraud alert.--
``(A) Definition.--For purposes of this subsection,
the term `fraud alert' means, at a minimum, a
statement--
``(i) in the file of a consumer that the
consumer may be a victim of fraud, including
identity theft, or is a consumer described in
paragraph (3); and
``(ii) that is transmitted in a manner that
facilitates a clear and conspicuous view of the
statement by any person requesting such file.
``(B) Other information.--A fraud alert shall
include information that notifies all prospective users
of a consumer report on the consumer to which the alert
relates that the consumer does not authorize
establishing any new credit plan in the name of the
consumer, unless the user utilizes reasonable policies
and procedures to form a reasonable belief that the
user knows the identity of the person for whom such new
plan is established, which may include obtaining
authorization or preauthorization of the consumer at a
telephone number designated by the consumer or by such
other reasonable means agreed to.
``(10) Other definitions.--For purposes of this subsection,
the following definitions shall apply:
``(A) Active duty military consumer.--The term
`active duty military consumer' means a consumer in
military service who--
``(i) 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
``(ii) is assigned to service away from the
consumer's usual duty station.
``(B) New credit plan.--The term `new credit plan'
means a new account under an open end credit plan (as
defined in section 103(i) of this Act) or a new credit
transaction not under an open end credit plan.''.
SEC. 203. TRUNCATION OF CREDIT CARD AND DEBIT CARD ACCOUNT NUMBERS.
(a) In General.--Section 605 of the Fair Credit Reporting Act (15
U.S.C. 1681c) is amended by inserting after subsection (k) (as added by
section 206 of this title) the following new subsection:
``(l) Truncation of Credit Card and Debit Card Account Numbers.--
``(1) In general.--Except as provided in this subsection,
no person that accepts credit cards or debit cards for the
transaction of business shall print the expiration date or more
than the last 5 digits of the card number upon any receipt
provided to the cardholder at the point of the sale or
transaction.
``(2) Limitation.--This section shall apply only to
receipts that are electronically printed, and shall not apply
to transactions in which the sole means of recording the
person's credit card or debit card number is by handwriting or
by an imprint or copy of the card.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply after the end of--
(1) the 3-year period beginning on the date of the
enactment of this Act, 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
(2) the 1-year period beginning on the date of the
enactment of this Act, 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. 204. 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 new
subsection:
``(d) Summary of Rights of Identity Theft Victims.--
``(1) In general.--The Commission, in consultation with the
Federal banking agencies and the National Credit Union
Administration, shall prepare a model 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, electronic fund transfers, or accounts or
transactions at or with a financial institution, the consumer
reporting agency shall, in addition to any other action the
agency may take, provide the consumer with a summary of rights,
or other disclosure, that is the same as or substantially
similar to the model summary of rights prepared by the
Commission under paragraph (1) and information on how to
contact the Commission to obtain more detailed information.''.
(b) Technical and Conforming Amendment.--Section 624(b)(3) of the
Fair Credit Reporting Act (15 U.S.C. 1681t(b)(3)) is amended by
striking ``section 609(c)'' and inserting ``subsection (c) or (d) of
section 609''.
(c) Effective Date.--Paragraph (2) of section 609(d) of the Fair
Credit Reporting Act (as added by subsection (a) of this section) shall
apply after the end of the 60-day period beginning on the date the
model summary of rights is prescribed in final form by the Federal
Trade Commission pursuant to paragraph (1) of such section and in
accordance with section 3(a) of this Act.
SEC. 205. BLOCKING OF INFORMATION RESULTING FROM IDENTITY THEFT.
Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c) is
amended by inserting after subsection (i) (as added by section 202 of
this title) the following new subsection:
``(j) Block of Information Resulting From Identity Theft.--
``(1) Block.--Except as provided in paragraph (3), 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 and confirms is not information relating to any
transaction by the consumer not later than 5 business days
after the date of receipt by such agency of--
``(A) appropriate proof of the identity of a
consumer;
``(B) a police report evidencing the claim of the
consumer of identity theft;
``(C) the identification of the information by the
consumer; and
``(D) confirmation by the consumer that the
information is not information relating to any
transaction by the consumer.
``(2) Notification.--A consumer reporting agency shall
promptly notify the furnisher of information identified by the
consumer under paragraph (1)--
``(A) that the information may be a result of
identity theft;
``(B) that a police report has been filed;
``(C) that a block has been requested under this
subsection; and
``(D) of the effective date of the block.
``(3) Authority to decline or rescind.--
``(A) In general.--A consumer reporting agency may
decline to block, or may rescind any block, of consumer
information under this subsection if the consumer
reporting agency reasonably determines that--
``(i) the information was blocked in error
or a block was requested by the consumer in
error;
``(ii) the information was blocked, or a
block was requested by the consumer, on the
basis of a misrepresentation of fact by the
consumer relevant to the request to block; or
``(iii) the consumer knowingly obtained
possession of goods, services, or moneys as a
result of the blocked transaction or
transactions, or the consumer should have known
that the consumer obtained possession of goods,
services, or moneys as a result of the blocked
transaction or transactions.
``(B) Notification to consumer.--If the block of
information is declined or rescinded under this
paragraph, 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).
``(C) Significance of block.--For purposes of this
paragraph, 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 monies as a result of the block.
``(4) Exceptions.--
``(A) Verification companies.--This subsection
shall not apply to--
``(i) a check services company, which
issues authorizations for the purpose of
approving or processing negotiable instruments,
electronic funds transfers, or similar methods
of payments; or
``(ii) a deposit account information
service company, which issues reports regarding
account closures due to fraud, substantial
overdrafts, automated teller machine abuse, or
similar negative information regarding a
consumer, to inquiring banks or other financial
institutions for use only in reviewing a
consumer request for a deposit account at the
inquiring bank or financial institution.
``(B) Resellers.--
``(i) No reseller file.--This subsection
shall not apply to a consumer reporting agency
if the consumer reporting agency--
``(I) is a reseller;
``(II) is not, at the time of the
request of the consumer under paragraph
(1), otherwise furnishing or reselling
a consumer report concerning the
information identified by the consumer;
and
``(III) informs the consumer, by
any means, that the consumer may report
the identity theft to the Commission to
obtain consumer information regarding
identity theft.
``(ii) Reseller with file.--The sole
obligation of the consumer reporting agency
under this subsection, with regard to any
request of a consumer under this subsection,
shall be to block the consumer report
maintained by the consumer reporting agency
from any subsequent use if--
``(I) the consumer, in accordance
with the provisions of paragraph (1),
identifies, to a consumer reporting
agency, information in the file of the
consumer that resulted from identity
theft; and
``(II) the consumer reporting
agency is a reseller of the identified
information.
``(iii) Notice.--In carrying out its
obligation under clause (ii), 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.
``(5) Access to blocked information by law enforcement
agencies.--No provision of this subsection 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.''.
SEC. 206. ESTABLISHMENT OF PROCEDURES FOR DEPOSITORY INSTITUTIONS TO
IDENTIFY POSSIBLE INSTANCES OF IDENTITY THEFT.
(a) In General.--Section 605 of the Fair Credit Reporting Act (15
U.S.C. 1681c) is amended by inserting after subsection (j) (as added by
section 205 of this title) the following new subsection:
``(k) `Red Flag' Guidelines Required.--
``(1) In general.--The Federal banking agencies and the
National Credit Union Administration, in consultation with the
Commission, shall jointly establish and maintain guidelines for
use by insured depository institutions in identifying patterns,
practices, and specific forms of activity that indicate the
possible existence of identity theft with respect to accounts,
and update such guidelines as often as necessary.
``(2) Regulations.--The Federal banking agencies and the
National Credit Union Administration, in consultation with the
Commission, shall jointly prescribe regulations requiring
insured depository institutions to establish and adhere to
reasonable policies and procedures for implementing the
guidelines established pursuant to paragraph (1) to identify
possible risks to customer accounts or to the safety and
soundness of the institutions.
``(3) Consistency with verification requirements.--Policies
and procedures established pursuant to paragraph (2) shall not
be inconsistent with the policies and procedures required under
section 5318(l) of title 31, United States Code.
``(4) Insured depository institution defined.--For purposes
of this subsection, the term `insured depository institution'--
``(A) has the meaning given to such term in section
3 of the Federal Deposit Insurance Act; and
``(B) includes an insured credit union (as defined
in section 101 of the Federal Credit Union Act).''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect at the end of the 1-year period beginning on the date of
the enactment of this Act.
SEC. 207. STUDY ON THE USE OF TECHNOLOGY TO COMBAT IDENTITY THEFT.
(a) Study Required.--The Secretary of the Treasury shall conduct a
study of the use of biometrics and other similar technologies to reduce
the incidence and costs of identity theft by providing convincing
evidence of who actually performed a given financial transaction.
(b) Consultation.--The Secretary of the Treasury shall consult with
Federal banking agencies, the Federal Trade Commission, and
representatives of financial institutions, consumer reporting agencies,
Federal, State, and local government agencies that issue official forms
or means of identification, State prosecutors, law enforcement
agencies, the biometric industry, and the general public in formulating
and conducting the study required by subsection (a).
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of the Treasury for fiscal year 2004 such
sums as may be necessary to carry out the provisions of this section.
(d) Report Required.--Before the end of the 180-day period
beginning on the date of the enactment of this Act, the Secretary shall
submit a report to Congress containing the findings and conclusions of
the study required under subsection (a), together with such
recommendations for legislative or administrative actions as may be
appropriate.
TITLE III--IMPROVING RESOLUTION OF CONSUMER DISPUTES
SEC. 301. COORDINATION OF CONSUMER COMPLAINT INVESTIGATIONS.
Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is
amended by adding at the end the following new subsection:
``(f) Coordination of Consumer Complaint Investigations.--
``(1) In general.--The consumer reporting agencies
described in section 603(p) shall develop and maintain
procedures for the referral, to each such agency, of any
consumer complaint received by any such agency alleging any
identity theft or requesting a block or a fraud alert.
``(2) Model form and procedure for reporting identity
theft.--The 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 Commission on consumer complaints
received by the agency on identity theft or fraud alerts.''.
SEC. 302. NOTICE OF DISPUTE THROUGH RESELLER.
(a) Requirement for Reinvestigation of Disputed Information Upon
Notice From a Reseller.--Section 611(a) of the Fair Credit Reporting
Act (15 U.S.C. 1681i(a)(1)(A)) is amended--
(1) in subparagraph (A) of paragraph (1)--
(A) by striking ``If the completeness'' and
inserting ``Subject to subsection (e), if the
completeness'';
(B) by inserting ``, or indirectly through a
reseller,'' after ``notifies the agency directly''; and
(C) by inserting ``or reseller'' before the period
at the end of such subparagraph;
(2) in subparagraph (A) of paragraph (2)--
(A) by inserting ``or a reseller'' after ``dispute
from any consumer''; and
(B) by inserting ``or reseller'' before the period
at the end of such subparagraph; and
(3) in subparagraph (B) of paragraph (2), by inserting ``or
the reseller'' after ``from the consumer''.
(b) Reinvestigation Requirement Applicable to Resellers.--Section
611 of the Fair Credit Reporting Act (15 U.S.C. 1681i) is amended by
adding at the end the following new subsection:
``(e) Reinvestigation Requirement Applicable to Resellers.--
``(1) Exemption from general reinvestigation requirement.--
Except as provided in paragraph (2), a reseller shall be exempt
from the requirements of this section.
``(2) Action required upon receiving notice of a dispute.--
If a reseller receives a notice from a consumer of a dispute
concerning the completeness or accuracy of any item of
information contained in a consumer report on such consumer
produced by the reseller, the reseller shall, within 5 business
days of receiving the notice and free of charge--
``(A) determine whether the item of information is
incomplete or inaccurate as a result of an act or
omission of the reseller; and
``(B) if--
``(i) the reseller determines that the item
of information is incomplete or inaccurate as a
result of an act or omission of the reseller,
correct the information in the consumer report
or delete it; or
``(ii) if the reseller determines that the
item of information is not incomplete or
inaccurate as a result of an act or omission of
the reseller, convey the notice of the dispute,
together with all relevant information provided
by the consumer, to each consumer reporting
agency that provided the reseller with the
information that is the subject of the dispute,
using an address or a notification mechanism
specified by the consumer reporting agency for
such notices.
``(3) Reseller reinvestigations.--No provision of this
subsection shall be construed as prohibiting a reseller from
conducting a reinvestigation of a consumer dispute directly.''.
(c) Technical and Conforming Amendment.--The heading for paragraph
(2)(B) of section 611(a) of the Fair Credit Reporting Act (15 U.S.C.
1681i(a)(2)(B)) is amended by striking ``from consumer''.
SEC. 303. REASONABLE REINVESTIGATION REQUIRED.
Section 611(a)(1)(A) of the Fair Credit Reporting Act (15 U.S.C.
1681i(a)(1)(A)) is amended by striking ``shall reinvestigate free of
charge'' and inserting ``shall, free of charge, conduct a reasonable
reinvestigation to determine whether the disputed information is
inaccurate''.
SEC. 304. DUTIES OF FURNISHERS OF INFORMATION.
(a) In General.--Section 623(a) of the Fair Credit Reporting Act
(15 U.S.C. 1681s-2(a)) is amended--
(1) in paragraph (1)(A), by striking ``knows or consciously
avoids knowing that the information is inaccurate'' and
inserting ``knows or has reasonable cause to believe that the
information is inaccurate'';
(2) in paragraph (1)--
(A) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively;
(B) by inserting after subparagraph (A), the
following new subparagraph:
``(B) Reasonable procedures to ensure accuracy.--A
person that regularly furnishes information relating to
consumers to a consumer reporting agency described in
section 603(p) shall maintain reasonable procedures
designed to ensure that the information furnished is
accurate.''; and
(C) by adding at the end the following new
subparagraph:
``(F) Definition.--For purposes of subparagraph
(A), the term `reasonable cause to believe that the
information is inaccurate' means, based on the
procedures described in subparagraph (B), has
knowledge, other than solely allegations by the
consumer, that would cause a reasonable person to have
substantial doubts about the accuracy of the
information.''; and
(3) by adding at the end the following new paragraph:
``(6) Ability of consumer to dispute information directly
with furnisher.--
``(A) In general.--A consumer may dispute directly
with a person the accuracy of information that--
``(i) is contained in a consumer report on
the consumer prepared by a consumer reporting
agency described in section 603(p); and
``(ii) was provided by the person to that
consumer reporting agency in accordance with
paragraph (1)(B).
``(B) Submitting a notice of dispute.--A consumer
who seeks to dispute the accuracy of information with a
person under subparagraph (A) shall provide a dispute
notice directly to such person at the address specified
by the person for such notices that--
``(i) identifies the specific information
that is being disputed; and
``(ii) explains the basis for the dispute.
``(C) Duty of person after receiving notice of
dispute.--After receiving a notice of dispute from a
consumer pursuant to subparagraph (B), the person that
provided the information in dispute to a consumer
reporting agency referred to in subparagraph (A)
shall--
``(i) conduct an investigation with respect
to the disputed information;
``(ii) review all relevant information
provided by the consumer with the notice;
``(iii) complete such person's
investigation of the dispute and report the
results of the investigation to the consumer
before the expiration of the period under
section 611(a)(1) within which a consumer
reporting agency would be required to complete
its action if the consumer had elected to
dispute the information under that section; and
``(iv) if the investigation finds that the
information reported was inaccurate, promptly
notify each consumer reporting agency described
in section 603(p) to which the person furnished
the inaccurate information of that
determination and provide to the agency any
correction to that information that is
necessary to make the information provided by
the person accurate.
``(D) Frivolous or irrelevant dispute.--
``(i) In general.--The requirements of this
paragraph shall not apply if the person
receiving a notice of a dispute from a consumer
reasonably determines that the dispute is
frivolous or irrelevant, including--
``(I) by reason of the failure of a
consumer to provide sufficient
information to investigate the disputed
information; or
``(II) the submission by a consumer
of a dispute that is substantially the
same as a dispute previously submitted
by or for the consumer, either directly
to the person under this paragraph or
through a consumer reporting agency
under subsection (b), with respect to
which the person has already performed
the person's duties under this
paragraph or subsection (b), as
applicable.
``(ii) Notice of determination.--Upon
making any determination under clause (i) that
a dispute is frivolous or irrelevant, the
person shall notify the consumer of such
determination not later than 5 business days
after making such determination, by mail or, if
authorized by the consumer for that purpose, by
any other means available to the person.
``(iii) Contents of notice.--A notice under
clause (ii) shall include--
``(I) the reasons for the
determination under clause (i); and
``(II) identification of any
information required to investigate the
disputed information, which may consist
of a standardized form describing the
general nature of such information.''.
(b) Technical and Conforming Amendments.--
(1) Section 621(c)(5)(A) of the Fair Credit Reporting Act
(15 U.S.C. 1681s(c)(5)(A)) is amended by striking ``section
623(a)(1)'' and inserting ``paragraph (1) or (6) of section
623(a)''.
(2) The heading for section 621(c)(5) of the Fair Credit
Reporting Act (15 U.S.C. 1681s(c)(5)) is amended by striking
``violation of section 623(a)(1)'' and inserting ``certain
violations of section 623(a)''.
SEC. 305. PROMPT INVESTIGATION OF DISPUTED CONSUMER INFORMATION.
(a) Study Required.--The Board of Governors of the Federal Reserve
System and the Federal Trade Commission shall jointly study the extent
to which, and the manner in which, consumer reporting agencies and
furnishers of consumer information to consumer reporting agencies are
complying with the procedures, time lines, and requirements under the
Fair Credit Reporting Act for the prompt investigation of the disputed
accuracy of any consumer information, the completeness of the
information provided to consumer reporting agencies, and the prompt
correction or deletion, in accordance with such Act, of any inaccurate
or incomplete information or information that cannot be verified.
(b) Report Required.--Before the end of the 6-month period
beginning on the date of the enactment of this Act, the Board of
Governors of the Federal Reserve System and the Federal Trade
Commission shall jointly submit a progress report to the Congress on
the results of the study required under subsection (a).
(c) Recommendations.--The report under subsection (b) shall include
such recommendations as the Board and the Commission jointly determine
to be appropriate for legislative or administrative action to ensure
that--
(1) consumer disputes with consumer reporting agencies over
the accuracy or completeness of information in a consumer's
file are promptly and fully investigated and any incorrect,
incomplete, or unverifiable information is corrected or deleted
immediately thereafter;
(2) furnishers of information to consumer reporting
agencies maintain full and prompt compliance with the duties
and responsibilities established under section 623 of the Fair
Credit Reporting Act; and
(3) consumer reporting agencies establish and maintain
appropriate internal controls and management review procedures
for maintaining full and continuous compliance with the
procedures, time lines, and requirements under the Fair Credit
Reporting Act for the prompt investigation of the disputed
accuracy of any consumer information and the prompt correction
or deletion, in accordance with such Act, of any inaccurate or
incomplete information or information that cannot be verified.
(d) Definitions.--For purposes of this section, the terms
``consumer'', ``consumer report'', and ``consumer reporting agency''
have the same meaning as in the Fair Credit Reporting Act.
TITLE IV--IMPROVING ACCURACY OF CONSUMER RECORDS
SEC. 401. RECONCILING ADDRESSES.
Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c) is
amended by inserting after subsection (g) (as added by section 201 of
this Act) the following new subsection.
``(h) Notice of Discrepancy.--
``(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 and the National Credit Union Administration
shall jointly prescribe regulations providing guidance
regarding reasonable policies and procedures a user of
a consumer report should employ when such user has
received a notice of discrepancy under paragraph (1).
``(B) 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 consumer's address
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. 402. PREVENTION OF REPOLLUTION OF CONSUMER REPORTS.
Section 623(a)(1) of the Fair Credit Reporting Act (15 U.S.C.
1681s-2(a)(1)) is amended by inserting after subparagraph (D) (as so
redesignated by section 304(2)(A)) the following new subparagraph:
``(E) Information alleged to result from identity
theft.--If a consumer submits a police report to a
person who furnishes information to a consumer
reporting agency that states that information
maintained by such person that purports to relate to
the consumer resulted from identity theft, the person
may not furnish such information that purports to
relate to the consumer to any consumer reporting
agency, unless the person subsequently knows or is
informed by the consumer that the information is
correct.''.
SEC. 403. NOTICE BY USERS WITH RESPECT TO FRAUDULENT INFORMATION.
Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m) is
amended by adding at the end the following new subsection:
``(e) Notice of Fraudulent Information Relating to Identity
Theft.--If an agent acting as a debt collector (as defined in title
VIII) of a person who furnishes information to any consumer reporting
agency uses information contained in a consumer report on any consumer
and learns that any such information so used is the result of identity
theft or otherwise is fraudulent, the agent shall--
``(1) if such information--
``(A) originated from the person for whom the debt
collector is acting as agent, notify the person of the
fraudulent information; or
``(B) originated from a person other than the
person for whom the debt collector is acting as agent,
notify the consumer reporting agency (that provided the
consumer report) of the fraudulent information, either
directly or through the person for whom the debt
collector is acting as agent; and
``(2) upon the request of the consumer, provide the
consumer with all information which the consumer would be
entitled to receive if the information related to the consumer
other than by reason of identity theft.''.
SEC. 404. DISCLOSURE TO CONSUMERS OF CONTACT INFORMATION FOR USERS AND
FURNISHERS OF INFORMATION IN CONSUMER REPORTS.
Section 609(a) of the Fair Credit Reporting Act (15 U.S.C.
1681g(a)) is amended--
(1) in paragraph (2), by inserting ``, including addresses
of the sources, and (if provided by the sources of information)
the telephone numbers identified for customer service for the
sources of information'' after ``sources of information'' the
1st place such term appears in such paragraph; and
(2) in paragraph (3)(B) by striking clause (ii) and
inserting the following new clause:
``(ii) the address and (if provided) the
telephone numbers identified for customer
service of the person.''.
SEC. 405. FTC STUDY OF THE ACCURACY OF CONSUMER REPORTS.
(a) Study Required.--Until the final report is submitted under
subsection (b)(2), the Federal Trade Commission shall conduct an
ongoing study of the accuracy and completeness of information contained
in consumer reports prepared or maintained by consumer reporting
agencies and methods for improving the accuracy and completeness of
such information.
(b) Biennial Reports Required.--
(1) Interim reports.--The Federal Trade Commission shall
submit an interim report to the Congress on the study conducted
under subsection (a) at the end of the 6-month period beginning
on the date of the enactment of this Act and biennially
thereafter for 8 years.
(2) Final report.--The Federal Trade Commission shall
submit a final report to the Congress on the study conducted
under subsection (a) at the end of the 2-year period beginning
on the date the final interim report is submitted to the
Congress under paragraph (1).
(3) Contents.--Each report submitted under this subsection
shall contain a detailed summary of the findings and
conclusions of the Commission with respect to the study
required under subsection (a) and such recommendations for
legislative and administrative action as the Commission may
determine to be appropriate.
TITLE V--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT
INFORMATION
SEC. 501. FREE REPORTS ANNUALLY.
Section 612 of the Fair Credit Reporting Act (15 U.S.C. 1681j) is
amended by adding at the end the following new subsection:
``(e) Free Annual Disclosure.--Upon the direct request of the
consumer, a consumer reporting agency that compiles and maintains files
on consumers on a nationwide or regional basis shall make all
disclosures pursuant to section 609 once during any 12-month period
without charge to the consumer.''.
SEC. 502. DISCLOSURE OF CREDIT SCORES.
(a) Statement on Availability of Credit Scores.--Section 609(a) of
the Fair Credit Reporting Act (15 U.S.C. 1681g(a)) is amended by adding
at the end the following new paragraph:
``(6) If the consumer requests the credit file and not the
credit score, a statement that the consumer may request and
obtain a credit score.''.
(b) Disclosure of Credit Scores.--Section 609 of the Fair Credit
Reporting Act (15 U.S.C. 1681g) is amended by inserting after
subsection (d) (as added by section 204 of this Act) the following new
subsection:
``(e) Disclosure of Credit Scores.--
``(1) In general.--Upon the consumer's request for a credit
score, a consumer reporting agency shall supply to a consumer a
statement indicating that the information and credit scoring
model may be different than the credit score that may be used
by the lender, and a notice which shall include the following
information:
``(A) The consumer's current credit score or the
consumer's most recent credit score that was previously
calculated by the credit reporting agency for a purpose
related to the extension of credit.
``(B) The range of possible credit scores under the
model used.
``(C) All the key factors that adversely affected
the consumer's credit score in the model used, the
total number of which shall not exceed four, subject to
paragraph (9).
``(D) The date the credit score was created.
``(E) The name of the person or entity that
provided the credit score or credit file upon which the
credit score was created.
``(2) Definitions.--For purposes of this section, the
following definitions shall apply:
``(A) Credit score.--The term `credit score'--
``(i) means a numerical value or a
categorization derived from a statistical tool
or modeling system used by a person who makes
or arranges a loan to predict the likelihood of
certain credit behaviors, including default
(and the numerical value or the categorization
derived from this analysis may also be referred
to as a `risk predictor' or `risk score'); and
``(ii) does not include--
``(I) any mortgage score or rating
of an automated underwriting system
that considers one or more factors
in addition to credit information, including the loan to value ratio,
the amount of down payment, or a consumer's financial assets; or
``(II) any other elements of the
underwriting process or underwriting
decision.
``(B) Key factors.--The term `key factors' means
all relevant elements or reasons adversely affecting
the credit score for the particular individual listed
in the order of their importance based on their effect
on the credit score.
``(3) Timeframe and manner of disclosure.--The information
required by this subsection shall be provided in the same
timeframe and manner as the information described in subsection
(a).
``(4) Applicability to certain uses.--This subsection shall
not be construed so as to compel a consumer reporting agency to
develop or disclose a score if the agency does not--
``(A) distribute scores that are used in connection
with residential real property loans; or
``(B) develop scores that assist credit providers
in understanding a consumer's general credit behavior
and predicting the future credit behavior of the
consumer.
``(5) Applicability to credit scores developed by another
person.--
``(A) In general.--This subsection shall not be
construed to require a consumer reporting agency that
distributes credit scores developed by another person
or entity to provide a further explanation of them, or
to process a dispute arising pursuant to section 611,
except that the consumer reporting agency shall provide
the consumer with the name and address and website for
contacting the person or entity who developed the score
or developed the methodology of the score.
``(B) Exception.--This paragraph shall not apply to
a consumer reporting agency that develops or modifies
scores that are developed by another person or entity.
``(6) Maintenance of credit scores not required.--This
subsection shall not be construed to require a consumer
reporting agency to maintain credit scores in its files.
``(7) Compliance in certain cases.--In complying with this
subsection, a consumer reporting agency shall--
``(A) supply the consumer with a credit score that
is derived from a credit scoring model that is widely
distributed to users by that consumer reporting agency
in connection with residential real property loans or
with a credit score that assists the consumer in
understanding the credit scoring assessment of the
credit behavior of the consumer and predictions about
the future credit behavior of the consumer; and
``(B) a statement indicating that the information
and credit scoring model may be different than that
used by the lender.
``(8) Reasonable fee.--A consumer reporting agency may
charge a reasonable fee for providing the information required
under this subsection.
``(9) Use of enquiries as a key factor.--If a key factor
that adversely affects a consumer's credit score consists of
the number of enquiries made with respect to a consumer report,
that factor shall be included in the disclosure pursuant to
paragraph (1)(C) without regard to the numerical limitation in
such paragraph.''.
(c) Disclosure of Credit Scores by Certain Mortgage Lenders.--
Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g) is
amended by inserting after subsection (e) (as added by subsection (b)
of this section) the following new subsection:
``(f) Disclosure of Credit Scores by Certain Mortgage Lenders.--
``(1) In general.--Any person who makes or arranges loans
and who uses a consumer credit score as defined in subsection
(e) in connection with an application initiated or sought by a
consumer for a closed end loan or establishment of an open end
loan for a consumer purpose that is secured by 1 to 4 units of
residential real property (hereafter in this subsection
referred to as the `lender') shall provide the following to the
consumer as soon as reasonably practicable:
``(A) Information required under subsection (e).--
``(i) In general.--A copy of the
information identified in subsection (e) that
was obtained from a consumer reporting agency
or was developed and used by the user of the
information.
``(ii) Notice under subparagraph (D).--In
addition to the information provided to it by a
third party that provided the credit score or
scores, a lender is only required to provide
the notice contained in subparagraph (D).
``(B) Disclosures in case of automated underwriting
system.--
``(i) In general.--If a person who is
subject to this section uses an automated
underwriting system to underwrite a loan, that
person may satisfy the obligation to provide a
credit score by disclosing a credit score and
associated key factors supplied by a consumer
reporting agency.
``(ii) Numerical credit score.--However, if
a numerical credit score is generated by an
automated underwriting system used by an
enterprise, and that score is disclosed to the
person, the score shall be disclosed to the
consumer consistent with subparagraph (C).
``(iii) Enterprise defined.--For purposes
of this subparagraph, the term `enterprise'
shall have the same meaning as in paragraph (6)
of section 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act
of 1992.
``(C) Disclosures of credit scores not obtained
from a consumer reporting agency.--A person subject to
the provisions of this subsection who uses a credit
score other than a credit score provided by a consumer
reporting agency may satisfy the obligation to provide
a credit score by disclosing a credit score and
associated key factors supplied by a consumer reporting
agency.
``(D) Notice to home loan applicants.--A copy of
the following notice, which shall include the name,
address, and telephone number of each consumer
reporting agency providing a credit score that was
used:
```notice to the home loan applicant
```In connection with your application for a home loan, the lender
must disclose to you the score that a consumer reporting agency
distributed to users and the lender used in connection with your home
loan, and the key factors affecting your credit scores.
```The credit score is a computer generated summary calculated at
the time of the request and based on information a consumer reporting
agency or lender has on file. The scores are based on data about your
credit history and payment patterns. Credit scores are important
because they are used to assist the lender in determining whether you
will obtain a loan. They may also be used to determine what interest
rate you may be offered on the mortgage. Credit scores can change over
time, depending on your conduct, how your credit history and payment
patterns change, and how credit scoring technologies change.
```Because the score is based on information in your credit
history, it is very important that you review the credit-related
information that is being furnished to make sure it is accurate. Credit
records may vary from one company to another.
```If you have questions about your credit score or the credit
information that is furnished to you, contact the consumer reporting
agency at the address and telephone number provided with this notice,
or contact the lender, if the lender developed or generated the credit
score. The consumer reporting agency plays no part in the decision to
take any action on the loan application and is unable to provide you
with specific reasons for the decision on a loan application.
```If you have questions concerning the terms of the loan,
contact the lender.'.
``(E) Actions not required under this subsection.--
This subsection shall not require any person to do any
of the following:
``(i) Explain the information provided
pursuant to subsection (e).
``(ii) Disclose any information other than
a credit score or key factor, as defined in
subsection (e).
``(iii) Disclose any credit score or
related information obtained by the user after
a loan has closed.
``(iv) Provide more than 1 disclosure per
loan transaction.
``(v) Provide the disclosure required by
this subsection when another person has made
the disclosure to the consumer for that loan
transaction.
``(F) No obligation for content.--
``(i) In general.--Any person's obligation
pursuant to this subsection shall be limited
solely to providing a copy of the information
that was received from the consumer reporting
agency.
``(ii) Limit on liability.--No person has
liability under this subsection for the content
of that information or for the omission of any information within the
report provided by the consumer reporting agency.
``(G) Person defined as excluding enterprise.--As
used in this subsection, the term `person' does not
include an enterprise (as defined in paragraph (6) of
section 1303 of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992).
``(2) Prohibition on disclosure clauses null and void.--
``(A) In general.--Any provision in a contract that
prohibits the disclosure of a credit score by a person
who makes or arranges loans or a consumer reporting
agency is void.
``(B) No liability for disclosure under this
subsection.--A lender shall not have liability under
any contractual provision for disclosure of a credit
score pursuant to this subsection.''.
(d) Inclusion of Key Factor in Credit Score Information in Consumer
Report.--Section 605(d) of the Fair Credit Reporting Act (15 U.S.C.
1681c(d)) is amended--
(1) by striking ``Disclosed.--Any consumer reporting
agency'' and inserting ``Disclosed.--
``(1) Title 11 information.--Any consumer reporting
agency''; and
(2) by adding at the end the following new paragraph:
``(2) Key factor in credit score information.--Any consumer
reporting agency that furnishes a consumer report that contains
any credit score or any other risk score or predictor on any
consumer shall include in the report a clear and conspicuous
statement that a key factor (as defined in section
609(e)(2)(B)) that adversely affected such score or predictor
was the number of enquiries, if such a predictor was in fact a
key factor that adversely affected such score. This paragraph
shall not apply to a person described in subsection
(j)(4)(A)(i), but only to the extent that such person is
engaged in activities described in such subsection.''.
(e) Technical and Conforming Amendment.--Section 624(b) of the Fair
Credit Reporting Act (15 U.S.C. 1681t(b)(3)) (as amended by section
204(b) of this Act) is amended--
(1) by striking ``or'' at the end of paragraph (2); and
(2) by striking paragraph (3) and inserting the following
new paragraphs:
``(3) with respect to the form and content of any
disclosure required to be made under subsection (c), (d), (e),
or (f) of section 609, except that this paragraph shall not
apply--
``(A) with respect to sections 1785.10, 1785.16 and
1785.20.2 of the California Civil Code (as in effect on
the date of enactment of the Fair and Accurate Credit
Transactions Act of 2003) and section 1785.15 through
section 1785.15.2 of such Code (as in effect on such
date) and
``(B) with respect to section 12-14.3-104.3 of the
Colorado Revised Statutes (as in effect on the date of
enactment of the Fair and Accurate Credit Transactions
Act of 2003); and
``(4) with respect to the frequency of any disclosure under
section 612(e), except that this paragraph shall not apply--
``(A) with respect to section 12-14.3-105(1)(d) of
the Colorado Revised Statutes (as in effect on the date
of enactment of the Fair and Accurate Credit
Transactions Act of 2003);
``(B) with respect to section 10-1-393(29)(C) of
the Georgia Code (as in effect on the date of enactment
of the Fair and Accurate Credit Transactions Act of
2003);
``(C) with respect to section 1316.2-B of title 10
of the Maine Revised Statutes (as in effect on the date
of enactment of the Fair and Accurate Credit
Transactions Act of 2003);
``(D) with respect to sections 14-1209(a)(1) and
14-1209(b)(1)(i) of the Commercial Law Article of the
Code of Maryland (as in effect on the date of enactment
of the Fair and Accurate Credit Transactions Act of
2003);
``(E) with respect to section 59(d) and section
59(e) of chapter 93 of the General Laws of
Massachusetts (as in effect on the date of enactment of
the Fair and Accurate Credit Transactions Act of 2003);
``(F) with respect to section 56:11-37.10(a)(1) of
the New Jersey Revised Statutes (as in effect on the
date of enactment of the Fair and Accurate Credit
Transactions Act of 2003); and
``(G) with respect to section 2480c(a)(1) of the
Vermont Statutes Annotated (as in effect on the date of
enactment of the Fair and Accurate Credit Transactions
Act of 2003).''.
SEC. 503. SIMPLER AND EASIER METHOD FOR CONSUMERS TO USE NOTIFICATION
SYSTEM.
(a) In General.--Section 604(e)(5)(A)(i) of the Fair Credit
Reporting Act (15 U.S.C. 1681b(e)(5)(A)(i)) is amended by inserting
``in a simple and easy manner and'' after ``notify the agency,''.
(b) Simplified Notice and Response Format for Users.--Section
615(d) of the Fair Credit Reporting Act (15 U.S.C. 1681m(d)) is
amended--
(1) by redesignating paragraphs (2), (3), and (4), as
paragraphs (3), (4) and (5); and
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Simple and easy notification.--Any statement given
the consumer under paragraph (1)(E) shall be in a simple and
easy to understand format and shall describe the simple and
easy method established under section 604(e)(5)(A)(i) for the
consumer to respond.''.
SEC. 504. REQUIREMENT TO DISCLOSE COMMUNICATIONS TO A CONSUMER
REPORTING AGENCY.
(a) In General.--Section 623(a) of the Fair Credit Reporting Act
(15 U.S.C. 1681s-2(a)) is amended by inserting after paragraph (6) (as
added by section 304(3)) the following new paragraph:
``(7) Negative Information.--
``(A) Notice to consumer required.--
``(i) In general.--If any financial
institution that extends credit and regularly
and in the ordinary course of business
furnishes information to a consumer reporting
agency described in section 603(p) furnishes
negative information to such an agency
regarding credit extended to a customer, the
financial institution shall provide a notice of
such furnishing of negative information, in
writing, to the customer.
``(ii) Notice effective for subsequent
submissions.--After providing such notice, the
financial institution may submit additional
negative information to a consumer reporting
agency described in section 603(p) with respect
to the same transaction, extension of credit,
account, or customer without providing
additional notice to the customer.
``(B) Time of notice.--
``(i) In general.--The notice required
under subparagraph (A) shall be provided to the
customer prior to, or no later than 30 days
after, furnishing the negative information to a
consumer reporting agency described in section
603(p).
``(ii) Coordination with new account
disclosures.--If the notice is provided to the
customer prior to furnishing the negative
information to a consumer reporting agency, the
notice may not be included in the initial
disclosures provided under section 127(a) of
the Truth in Lending Act.
``(C) Coordination with other disclosures.--The
notice required under subparagraph (A)--
``(i) may be included on or with any notice
of default, any billing statement, or any other
materials provided to the customer; and
``(ii) must be clear and conspicuous.
``(D) Model disclosure.--
``(i) Duty of board to prepare.--The Board
shall prescribe a brief model disclosure a
financial institution may use to comply with
subparagraph (A), which shall not exceed 30
words.
``(ii) Use of model not required.--No
provision of this paragraph shall be construed
as requiring a financial institution to use any
such model form prescribed by the Board.
``(iii) Compliance using model.--A
financial institution shall be deemed to be in
compliance with subparagraph (A) if the
financial institution uses any such model form
prescribed by the Board, or the financial
institution uses any such model form and
rearranges its format.
``(E) Use of notice without submitting negative
information.--No provision of this paragraph shall be
construed as requiring a financial institution that has
provided a customer with a notice described in
subparagraph (A) to furnish negative information about
the customer to a consumer reporting agency.
``(F) Safe harbor.--A financial institution shall
not be liable for failure to perform the duties
required by this paragraph if, at the time of the
failure, the financial institution maintained
reasonable policies and procedures to comply with this
paragraph or the financial institution reasonably
believed that the institution is prohibited, by law,
from contacting the consumer.
``(G) Definitions.--For purposes of this paragraph,
the following definitions shall apply:
``(i) Negative information.--The term
`negative information' means information
concerning a customer's delinquencies, late
payments, insolvency, or any form of default.
``(ii) Customer; financial institution.--
The terms `customer' and `financial
institution' have the same meaning as in
section 509 of the Gramm-Leach-Bliley Act.''.
(b) Model Disclosure Form.--Before the end of the 6-month period
beginning on the date of the enactment of this Act, the Board of
Governors of the Federal Reserve System shall adopt the model
disclosure required under the amendment made by subsection (a) after
notice duly given in the Federal Register and an opportunity for public
comment in accordance with section 553 of title 5, United States Code.
SEC. 505. STUDY OF EFFECTS OF CREDIT SCORES AND CREDIT-BASED INSURANCE
SCORES ON AVAILABILITY AND AFFORDABILITY OF FINANCIAL
PRODUCTS.
(a) Study Required.--The Federal Trade Commission, in consultation
with the Office of Fair Housing and Equal Opportunity of the Department
of Housing and Urban Development, 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 causality between the factors considered
by credit score systems and the quantifiable risks and actual
losses experienced by businesses, including the extent to
which, if any, each of the factors considered or otherwise
taken into account by such systems are accurate predictors of
risk or loss, and where the means square error of a scoring
model's predictions are considered in the evaluation of
accuracy;
(3) the extent to which, if any, the use of credit scoring
models, credit scores and credit-based insurance scores result
in disparate impact by geography, income, ethnicity, race,
color, religion, national origin, age, sex or marital status,
and creed, including the extent to which the consideration or
lack of consideration of certain factors by credit scoring
systems could result in disparate effects and the extent to
which, if any, the use of underwriting systems relying on these
models could achieve comparable results through the use of
factors with less disparate impact; 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.
(b) Public Participation.--The Commission shall seek public input
about the prescribed methodology and research design of the study
required in subsection (a).
(c) Report Required.--
(1) In general.--Before the end of the 18-month period
beginning on the date of the enactment of this Act, the Federal
Trade Commission shall submit a detailed report on the study
conducted pursuant to subsection (a) 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 of report.--The report submitted under
paragraph (1) shall include the findings and conclusions of the
Commission, together with such recommendations for legislative
or administrative action as the Commission may determine to be
necessary to ensure that credit and credit-based insurances
score are used appropriately and fairly to avoid disparate
effects.
(d) Credit Score Defined.--For purposes of 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.
SEC. 506. GAO STUDY ON DISPARATE IMPACT OF CREDIT SYSTEM.
(a) Study Required.--The Comptroller General shall conduct a study
of the credit system to determine the extent to which, if any,
discrimination exists with regard to the availability and the terms of
credit which has a disparate impact on the basis of race, color, income
and education level, geographic location, age, sex, sexual orientation,
national origin, or marital status and the nature of any such
discriminatory effect.
(b) Report Required.--Before the end of the 2-year period beginning
on the date of the enactment of this Act, the Comptroller General shall
submit a report to the Congress on the findings and conclusions of the
Comptroller General pursuant to the study conducted under subsection
(a), together with such recommendations for legislative or
administrative action as the Comptroller General may determine to be
appropriate.
SEC. 507. ANALYSIS OF FURTHER RESTRICTIONS ON OFFERS OF CREDIT OR
INSURANCE.
(a) In General.--The Board of Governors of the Federal Reserve
System shall conduct a study of--
(1) the ability of consumers to avoid receiving written
offers of credit or insurance in connection with transactions
not initiated by the consumer; and
(2) the potential impact any further restrictions on
providing consumers with such written offers of credit or
insurance would have on consumers.
(b) Report.--The Board of Governors of the Federal Reserve System
shall submit a report summarizing the results of the study required
under subsection (a) to the Congress no later than 12 months after the
date of the enactment of this Act, together with such recommendatioons
for legislative or administrative action as the Board may determine to
be appropriate.
(c) Content of Report.--The report described in subsection (b)
shall address the following issues:
(1) The current statutory or voluntary mechanisms that are
available to a consumer to notify lenders and insurance
providers that the consumer does not wish to receive written
offers of credit or insurance.
(2) The extent to which consumers are currently utilizing
existing statutory and voluntary mechanisms to avoid receiving
offers of credit or insurance.
(3) The benefits provided to consumers as a result of
receiving written offers of credit or insurance.
(4) Whether consumers incur significant costs or are
otherwise adversely affected by the receipt of written offers
of credit or insurance.
(5) Whether further restricting the ability of lenders and
insurers to provide written offers of credit or insurance to
consumers would affect--
(A) the cost consumers pay to obtain credit or
insurance;
(B) the availability of credit or insurance;
(C) consumers' knowledge about new or alternative
products and services;
(D) the ability of lenders or insurers to compete
with one another; and
(E) the ability to offer credit or insurance
products to consumers who have been traditionally
underserved.
SEC. 508. STUDY ON THE NEED AND THE MEANS FOR IMPROVING FINANCIAL
LITERACY AMONG CONSUMERS.
(a) Study Required.--The Comptroller General shall conduct a study
to assess the extent of consumers' knowledge and awareness of credit
reports, credit scores, and the dispute resolution process, and on
methods for improving financial literacy among consumers.
(b) Factors To Be Included.--The study required under subsection
(a) shall include the following issues:
(1) The number of consumers who view their credit reports.
(2) Under what conditions and for what purposes do
consumers primarily obtain a copy of their consumer report
(such as for the purpose of ensuring the completeness and
accuracy of the contents, to protect against fraud, in response
to an adverse action based on the report, or in response to
suspected identity theft) and approximately what percentage of
the total number of consumers who obtain a copy of their
consumer report do so for each such primary purpose.
(3) The extent of consumers' knowledge of the data
collection process.
(4) The extent to which consumers know how to get a copy of
a consumer report.
(5) The extent to which consumers know and understand the
factors that positively or negatively impact credit scores.
(c) Report Required.--Before the end of the 9-month period
beginning on the date of the enactment of this Act, the Comptroller
General shall submit a report to the Congress on the findings and
conclusions of the Comptroller General pursuant to the study conducted
under subsection (a), together with such recommendations for
legislative or administrative action as the Comptroller General may
determine to be appropriate, including recommendations on methods for
improving financial literacy among consumers.
SEC. 509. DISCLOSURE OF INCREASE IN APR UNDER CERTAIN CIRCUMSTANCES.
Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681m) is
amended by inserting after subsection (f) (as added by section 502(c)
of this title) the following new subsection:
``(g) Disclosure to Consumer.--
``(1) In general.--The ability of a credit card issuer to
increase any annual percentage rate applicable to a credit card
account, or to remove or increase any introductory annual
percentage rate of interest applicable to such account, for
reasons other than actions or omissions of the card holder that
are directly related to such account shall be clearly and
conspicuously disclosed to the consumer by the credit card
issuer in any disclosure or statement required to be made to
the consumer under this title in connection with a credit card
solicitation that is not initiated by the consumer.
``(2) Regulations and model statements.--The Board, in
consultation with the Federal banking agencies and the National
Credit Union Administration, shall develop such guidelines in
regulations as necessary to assure that the information to be
disclosed to consumers pursuant to paragraph (1) is clearly and
conspicuously provided in a prominent location in any credit
card solicitation that is not initiated by the consumer, and
shall include model disclosure statements to be used by credit
card issuers in making the disclosures required to be provided
to the consumer by paragraph (1).''.
TITLE VI--PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS
SEC. 601. CERTAIN EMPLOYEE INVESTIGATION COMMUNICATIONS EXCLUDED FROM
DEFINITION OF CONSUMER REPORT.
(a) In General.--Section 603 of the Fair Credit Reporting Act (15
U.S.C. 1681a) is amended by inserting after subsection (p) the
following new subsection:
``(q) Exclusion of Certain Communications for Employee
Investigations.--
``(1) Communications described in this subsection.--A
communication is described in this subsection if--
``(A) but for subsection (d)(2)(D), the
communication would be a consumer report;
``(B) the communication is made to an employer in
connection with an investigation of--
``(i) suspected misconduct relating to
employment; or
``(ii) compliance with Federal, State, or
local laws and regulations, the rules of a
self-regulatory organization, or any
preexisting written policies of the employer;
``(C) the communication is not made for the purpose
of investigating a consumer's credit worthiness, credit
standing, or credit capacity; and
``(D) the communication is not provided to any
person except--
``(i) to the employer or an agent of the
employer;
``(ii) to any Federal or State officer,
agency, or department, or any officer, agency,
or department of a unit of general local
government;
``(iii) to any self-regulatory organization
with regulatory authority over the activities
of the employer or employee;
``(iv) as otherwise required by law; or
``(v) pursuant to section 608.
``(2) Subsequent disclosure.--After taking any adverse
action based in whole or in part on a communication described
in paragraph (1), the employer shall disclose to the consumer a
summary containing the nature and substance of the
communication upon which the adverse action is based, except
that the sources of information acquired solely for use in
preparing what would be but for subsection (d)(2)(D) an
investigative consumer report need not be disclosed.
``(3) Self-regulatory organization defined.--For purposes
of this subsection, the term `self-regulatory organization'
includes any self-regulatory organization (as defined in
section 3(a)(26) of the Securities Exchange Act of 1934), any
entity established under title I of the Sarbanes-Oxley Act of
2002, any board of trade designated by the Commodity Futures
Trading Commission, and any futures association registered with
such Commission.''.
(b) Technical and Conforming Amendment.--Section 603(d)(2)(D) of
the Fair Credit Reporting Act (15 U.S.C. 1681a(d)(2)(D)) is amended by
inserting ``or (q)'' after ``subsection (o)''.
TITLE VII--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE
FINANCIAL SYSTEM
SEC. 701. 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) the information to be furnished pertains
solely to transactions, accounts, or balances relating
to debts arising from the receipt of medical services,
products, or devices, where such information, other
than account status or amounts, is restricted or
reported using codes that do not identify, or do not
provide information sufficient to infer, the specific
provider or the nature of such services, products, or
devices, as provided in section 605(a)(6)).
``(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 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
paragraphs (1) or (3) shall not disclose such information to
any other person except as necessary to carry out the purposes
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 (and which shall include permitting
actions necessary for administrative verification
purposes), 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 prescribe the regulations required
under subparagraph (A) in final form before the end of
the 6-month period beginning on the date of the
enactment of the Fair and Accurate Credit Transactions
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--
``(A) the information is medical information; or
``(B) the information is an individualized list or
description based on a consumer's payment transactions
for medical products or services, or an aggregate list
of identified consumers based on payment transactions
for medical products or services.''.
SEC. 702. CONFIDENTIALITY OF MEDICAL CONTACT INFORMATION IN CREDIT
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
inserting after paragraph (7) (as added by section 504(a)) the
following new paragraph:
``(8) 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 the 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 the following new paragraph:
``(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) is amended by inserting
after subsection (f) (as added by section 301 of this Act) the
following new subsection:
``(g) FTC Regulation of Coding of Trade Names.--If the Commission
determines that a person described in paragraph (8) 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
701) 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 the
enactment of this Act.
Passed the House of Representatives September 10, 2003.
Attest:
Clerk.
108th CONGRESS
1st Session
H. R. 2622
_______________________________________________________________________
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.