One Hundred Eleventh Congress of the United States of America 2d SessionBegun and held at the City of Washington on Tuesday, the fifth day of January, two thousand and ten S. 3987 IN THE SENATE OF THE UNITED STATES AN ACT To amend the Fair Credit Reporting Act with respect to the applicability of identity theft guidelines to creditors.

1.

Short title

This Act may be cited as the Red Flag Program Clarification Act of 2010.

2.

Scope of certain creditor requirements

(a)

Amendment to FCRA

Section 615(e) of the Fair Credit Reporting Act (15 U.S.C. 1681m(e)) is amended by adding at the end the following: (4)

Definitions

As used in this subsection, the term creditor— (A)means a creditor, as defined in section 702 of the Equal Credit Opportunity Act (15 U.S.C. 1691a), that regularly and in the ordinary course of business— (i)obtains or uses consumer reports, directly or indirectly, in connection with a credit transaction; (ii)furnishes information to consumer reporting agencies, as described in section 623, in connection with a credit transaction; or (iii)advances funds to or on behalf of a person, based on an obligation of the person to repay the funds or repayable from specific property pledged by or on behalf of the person; (B)does not include a creditor described in subparagraph (A)(iii) that advances funds on behalf of a person for expenses incidental to a service provided by the creditor to that person; and (C)includes any other type of creditor, as defined in that section 702, as the agency described in paragraph (1) having authority over that creditor may determine appropriate by rule promulgated by that agency, based on a determination that such creditor offers or maintains accounts that are subject to a reasonably foreseeable risk of identity theft. . (b)

Effective date

The amendment made by this section shall become effective on the date of enactment of this Act.

Speaker of the House of Representatives Vice President of the United States and President of the Senate