I 108th CONGRESS 2d Session H. R. 4220 IN THE HOUSE OF REPRESENTATIVES April 27, 2004 Ms. Bordallo (for herself, Mr. Sherman, Mrs. Christensen, Mr. Faleomavaega, Mr. McIntyre, Ms. Norton, and Mr. Owens) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Fair Credit Reporting Act to protect the credit records of consumers who are affected by federally declared disasters, and for other purposes.

1.

Short title

This Act may be cited as the &short-title1;.

2.

Prohibition on including late payments in credit reports that were late due solely to declared disasters

(a)

In general

Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)) is amended by adding at the end the following new paragraph: (7)Any reference to a late payment that was due solely to a disruption caused by a declared disaster for which the agency receives notice under subsection (i).. (b)

Procedure for striking adverse information due to declared disaster

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)

Procedure for striking adverse information due to declared disaster

(1)

Notice from consumer

Any consumer who— (A)resides in an area which has been declared a disaster area by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act; (B)fails to make a payment on an obligation by the due date (of the payment) that falls within the grace period described in paragraph (4); and (C)pays the obligation within 30 days of the due date referred to in subparagraph (B),may notify the creditor at any time during the 2-year period following the end of the grace period, with respect to such obligation, that the late payment was due to the occurrence of the declared disaster. (2)

Notice to consumer reporting agency

Any creditor which receives a notice from a consumer under paragraph (1) shall notify any consumer reporting agency to which the creditor furnished information on the late payment described in such paragraph that the late payment was due to a disruption caused by a declared disaster. (3)

Responsibilities of the Secretary of the Treasury

The Secretary of the Treasury may designate a grace period for purposes of paragraph (1) if, after consultation with the Under Secretary for Emergency Preparedness and Response of the Department of Homeland Security, the Secretary determines that— (A)a disaster, as declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act has caused damage to the infrastructure affecting banking, credit, and other financial services and transactions in a specified geographic region; and (B)the damage sustained could disrupt the provision of financial services and the efficient execution of financial transactions for a period longer than the period described in paragraph (4)(A). (4)

Grace period described

For purposes of paragraph (1), the grace period, with respect to any consumer, means the longer of— (A)the 7-day period that begins on the effective date of the declaration, by the President, of the disaster area in which the consumer resides; and (B)the period, if any, prescribed by the Secretary of the Treasury under paragraph (3). (5)

Due date

The term due date means the first date upon which a late fee or other penalty may be imposed on a consumer for a failure of the consumer to make a periodic payment that is due on a debt.. (c)

Report to the Congress

Before the end of the 2-year period beginning on the date of the enactment of this Act, the Secretary of the Treasury shall submit a report to the Congress containing— (1)a detailed description of the actions taken to implement the requirements of the amendments made by this Act and prevent evasions of such requirements; (2)pertinent information on the impact of such requirements on the financial services; and (3)such recommendations for legislative or administrative actions as the Secretary may determine to be appropriate.