[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5282 Introduced in House (IH)]

<DOC>






114th CONGRESS
  2d Session
                                H. R. 5282

    To amend the Fair Credit Reporting Act to improve the consumer 
               reporting system, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 19, 2016

 Ms. Maxine Waters of California introduced the following bill; which 
          was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
    To amend the Fair Credit Reporting Act to improve the consumer 
               reporting system, 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.

    This Act may be cited as the ``Comprehensive Consumer Credit 
Reporting Reform Act of 2016''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Congressional findings.
Sec. 4. Effective date.
                  TITLE I--FIXING THE DISPUTE PROCESS

Sec. 101. Establishes a new right to appeal disputes completed by 
                            consumer reporting agencies and furnishers.
Sec. 102. Creates reasonable dispute procedures for furnishers of 
                            information and meaningful disclosures to 
                            consumers about investigations; notices by 
                            furnishers to consumers of reporting of 
                            negative items to consumer reporting 
                            agencies.
Sec. 103. Creates reasonable dispute procedures for consumer reporting 
                            agencies and meaningful disclosures to 
                            consumers about reinvestigations.
Sec. 104. Increases consumers' awareness of dispute rights and tools 
                            for challenging errors.
Sec. 105. Enhances accuracy and completeness duties for consumer 
                            reporting agencies and furnishers.
Sec. 106. Requires furnishers to maintain records necessary to verify 
                            accuracy of disputes.
Sec. 107. Establishes new requirements on consumer reporting agencies 
                            when notified of inaccurate or incomplete 
                            information from furnishers.
Sec. 108. Indication of dispute by consumers and use of disputed 
                            information.
Sec. 109. Inclusion of public record data sources in consumer reports.
Sec. 110. Injunctive relief for victims.
TITLE II--RESTRICTING THE USE OF CREDIT CHECKS FOR EMPLOYMENT DECISIONS

Sec. 201. Bans the use of credit information for most employment 
                            decisions.
  TITLE III--REHABILITATING THE CREDIT STANDING OF STRUGGLING PRIVATE 
                        EDUCATION LOAN BORROWERS

Sec. 301. Removes adverse information for certain defaulted or 
                            delinquent private education loan borrowers 
                            who demonstrate a history of loan 
                            repayment.
Sec. 302. Private education loan definitions.
    TITLE IV--RESTORING THE IMPAIRED CREDIT OF VICTIMS OF PREDATORY 
           ACTIVITIES AND UNFAIR CONSUMER REPORTING PRACTICES

Sec. 401. Shortens the time period that most adverse credit information 
                            stays on consumer reports.
Sec. 402. Mandates the expedited removal of fully paid or settled debt 
                            from consumer reports.
Sec. 403. Imposes restrictions on the appearance of medical collections 
                            on consumer reports and requires the 
                            expedited removal of fully paid or settled 
                            medical collections from consumer reports.
Sec. 404. Provides credit restoration for victims of predatory mortgage 
                            lending and servicing.
Sec. 405. Provides credit relief for private education loans borrowers 
                            who were defrauded or mislead by 
                            proprietary education institution or career 
                            education programs.
Sec. 406. Establishes right for victims of financial abuse to have 
                            adverse information associated with an 
                            abuser's fraudulent activity removed from 
                            their consumer reports.
Sec. 407. Prohibits treatment of credit restoration or rehabilitation 
                            as adverse information.
      TITLE V--MONITORING THE DEVELOPMENT AND USE OF CREDIT SCORES

Sec. 501. Establishes clear Federal oversight of the development of 
                            credit scoring models by the Bureau.
Sec. 502. Mandates ongoing review and reports to Congress by the 
                            Federal Housing Finance Agency on using 
                            additional, alternative, and updated credit 
                            scoring models as part of the criteria for 
                            loans purchased by Fannie Mae and Freddie 
                            Mac.
Sec. 503. Requires a Bureau study and report to Congress on the impact 
                            of using non-traditional data.
  TITLE VI--PROVIDING GREATER CONSUMER ACCESS TO AND UNDERSTANDING OF 
                   CONSUMER REPORTS AND CREDIT SCORES

Sec. 601. Credit score and educational credit score definitions.
Sec. 602. Expands explanatory information given to consumers about how 
                            scores are calculated.
Sec. 603. Requires consumer reporting agencies to disclose prominently 
                            the differences between and limitations of 
                            credit scores and educational credit scores 
                            required prior to a consumer obtaining such 
                            scores.
Sec. 604. Provides consumers with free credit score disclosures with 
                            their free annual consumer reports upon 
                            request and creates instances when 
                            consumers automatically receive free 
                            consumer reports and credit scores.
Sec. 605. Requires private educational lenders to provide consumers 
                            with free copies of any consumer reports 
                            and credit scores that they used for 
                            underwriting before consumers sign loan 
                            agreements.
Sec. 606. Requires motor vehicle lenders or indirect auto lenders to 
                            provide consumers with free copies of any 
                            consumer reports and credit scores that 
                            they used for underwriting before consumers 
                            sign lease or loan agreements.
Sec. 607. Requires residential mortgage lenders to provide consumers 
                            with free copies of any consumer reports 
                            and credit scores that they used for 
                            underwriting before consumers sign loan 
                            agreements.
 TITLE VII--BANNING MISLEADING AND UNFAIR CONSUMER REPORTING PRACTICES

Sec. 701. Prohibits automatic renewals for consumer reporting and 
                            credit scoring products and services 
                            offered under promotional terms.
Sec. 702. Bans misleading and deceptive marketing related to the 
                            provision of consumer reporting and credit 
                            scoring products and services.
Sec. 703. Ends excessive direct-to-consumer sales by giving the Bureau 
                            authority to set fair and reasonable fees 
                            on consumer reporting and credit scoring 
                            products and services sold by consumer 
                            reporting agencies to consumers.
Sec. 704. Promotes access to consumer reporting and credit scoring 
                            disclosures for consumers with limited 
                            English proficiency and visual and hearing 
                            impairments to enhance their ability to 
                            exercise their rights.
Sec. 705. Establishes consumers' right to shop for the best deal on 
                            certain large dollar loans without harming 
                            their credit standing.
Sec. 706. Ends confusion about whether entities are engaged in consumer 
                            reporting practices by creating a 
                            nationwide consumer reporting agencies 
                            registry.
 TITLE VIII--EXPANDING ACCESS TO TOOLS TO PROTECT VULNERABLE CONSUMERS 
  FROM IDENTITY THEFT, FRAUD, OR A RELATED CRIME, AND PROTECT VICTIMS 
                           FROM FURTHER HARM

Sec. 801. Identity theft report definition.
Sec. 802. Credit freeze definition.
Sec. 803. Enhances fraud alert protections.
Sec. 804. Enhances access to credit freezes, limits the cost of such 
                            freezes, and provides access to free credit 
                            freezes for vulnerable consumers.
Sec. 805. Requires disclosure of consumer rights related to credit 
                            freezes.
Sec. 806. Provides access to fraud records for victims.
Sec. 807. Required Bureau to set procedures for reporting identity 
                            theft, fraud, and other related crime.
Sec. 808. Establishes the right to free credit monitoring and identity 
                            theft protection services for certain 
                            consumers.
Sec. 809. Ensures removal of inquiries resulting from identity theft, 
                            fraud, or other related crime from consumer 
                            reports.
                        TITLE IX--MISCELLANEOUS

Sec. 901. Definitions related to days.
Sec. 902. Technical correction related to risk-based pricing notices.
Sec. 903. FCRA findings and purpose; voids certain contracts not in the 
                            public interest.
Sec. 904. General Bureau rulemaking.

SEC. 3. CONGRESSIONAL FINDINGS.

    Congress finds the following:
            (1) General findings.--
                    (A) Consumer reporting agencies (``CRAs'') are 
                companies that collect, compile, and provide 
                information about consumers in the form of consumer 
                reports, commonly referred to as credit reports for 
                certain permissible statutory purposes. Data 
                furnishers, such as creditors, lenders, and debt 
                collection agencies, voluntarily submit information to 
                CRAs such as the total amount for each loan or credit 
                limit for each credit card and the consumer's payment 
                history on these products. These reports may also 
                include information about companies that have asked to 
                see a consumer's credit report, addresses, current and 
                previous employers, and certain public records. The 
                largest CRAs in this country are referred to as 
                nationwide CRAs, which currently include Equifax, 
                TransUnion, and Experian.
                    (B) In a December 2012 paper, ``Key Dimensions and 
                Processes in the U.S. Credit Reporting System: A review 
                for how the nation's largest credit bureaus manage 
                consumer data'', the Bureau of Consumer Financial 
                Protection (``CFPB'' or the ``Bureau'') noted that the 
                three nationwide CRAs maintain credit files on 
                approximately 200 million adults and receive 
                information from about 10,000 furnishers. On a monthly 
                basis, these furnishers provide information on over 1.3 
                billion consumer credit accounts or other tradelines.
                    (C) The 10 largest institutions furnishing credit 
                information to each of the nationwide CRAs account for 
                more than half of all accounts reflected in consumers' 
                credit files.
                    (D) Consumer reports play an increasingly important 
                role in the lives of American consumers as most 
                creditors are reviewing these reports to make decisions 
                about whether to extend credit and on what terms and 
                conditions. As such, information contained in a 
                person's credit report not only can affect whether a 
                person is able to get a private education to pay for 
                college costs, secure a mortgage to buy a home, or to 
                obtain a credit card, but also can affect the 
                consumer's cost of borrowing.
                    (E) Consumer reports are also increasingly used for 
                noncredit decisions, including by landlords to 
                determine whether to rent an apartment to a prospective 
                tenant and by employers to decide whether to hire 
                potential job applicants.
                    (F) Pursuant to the Federal Fair Credit Reporting 
                Act (``FCRA''), CRAs have a statutory obligation to 
                verify independently the accuracy and completeness of 
                information included on the reports that they provide.
                    (G) The nationwide CRAs have failed to establish 
                and follow reasonable procedures, as required by 
                existing law, to establish the maximum level of 
                accuracy of information contained on consumer reports. 
                Given the repeated failures of CRAs to comply with 
                accuracy requirements on their own, legislation is 
                intended to provide them with detailed guidance 
                improving the accuracy and completeness of information 
                contained in consumer reports, including procedures, 
                policies, and practices that these CRAs should already 
                be following to ensure full compliance with their 
                existing obligations.
                    (H) The presence of inaccurate or incomplete 
                information on a person's report may result in 
                substantial financial and emotional harm. Credit 
                reporting errors can lead to the loss of new employment 
                opportunities or a denial of a promotion in an existing 
                job, the inability to obtain credit on favorable terms, 
                the inability to secure rental housing, the mental 
                distress of trying unsuccessfully to remove errors from 
                one's credit report, among other types of harm.
                    (I) Current industry practices impose an unfair 
                burden of proof on consumers when trying to fix errors 
                on their reports.
                    (J) Consumer reports containing inaccurate or 
                incomplete credit information undermine the ability of 
                creditors and lenders to effectively and accurately 
                underwrite and price credit.
                    (K) Recognizing that credit reporting affects the 
                lives of most Americans and that the consequences of 
                errors on a consumer report can be catastrophic for a 
                consumer the Bureau began accepting consumer's 
                complaints about credit reporting in October 2012.
                    (L) As of August 2015, the Bureau has handled 
                approximately 105,500 credit reporting complaints, 
                making credit reporting the third most-complained-about 
                subject matter on which the Bureau accepts consumer 
                complaints. The most common credit reporting problems 
                identified by consumers relate to incorrect information 
                contained on consumer reports (comprising a staggering 
                77 percent) and CRAs investigations (consisting of 9 
                percent). Other complaints involve the inability to 
                obtain a report or score, the improper use of reports, 
                and credit monitoring or identity protection products 
                and services.
                    (M) The Bureau indicated in its ``Monthly Complaint 
                Report Volume 2'' released in August 2015 that credit 
                reporting complaints showed the greatest month-over-
                month percentage increase (56 percent) as compared to 
                the other consumer complaints which the Bureau 
                currently tracks.
                    (N) The Bureau's summer 2015 ``Supervisory 
                Highlights'' publication found that one or more of the 
                largest CRAs failed to adequately oversee furnishers to 
                ensure they were adhering to the CRAs vetting policies 
                and to establish proper procedures to verify public 
                record information.
                    (O) A February 2014 Bureau report titled ``Credit 
                Reporting Complaint Snapshot'' found that consumers are 
                confused about the extent to which the nationwide CRAs 
                are required to provide them with validation and 
                documentation of a debt which appears on their credit 
                report.
                    (P) As evidence that the current system lacks 
                sufficient market incentives for CRAs to develop more 
                robust procedures to increase the accuracy and 
                completeness of information on credit reports, 
                litigation discovery documented by the National 
                Consumer Law Center, as part of a January 2009 report 
                entitled ``Automated Injustice: How a Mechanized 
                Dispute System Frustrates Consumers Seeking to Fix 
                Errors in Their Credit Reports'', showed that at least 
                two of the three largest CRAs use quota systems to 
                force employees to process disputes hastily and without 
                the opportunity for conducting meaningful 
                investigations. At least one nationwide CRA only 
                allowed dispute resolution staff five minutes to handle 
                a consumer's call. Furthermore, these CRAs were found 
                to award bonuses for meeting quotas and punish those 
                who didn't meet production numbers with probation.
                    (Q) Unlike most other business relationships, where 
                consumers can register their satisfaction or 
                dissatisfaction with a particular product or service by 
                taking their business elsewhere, consumers have no say 
                in whether their information is included in the CRAs 
                databases and limited legal remedies to hold the CRAs 
                accountable for inaccuracies or poor service.
                    (R) Accordingly, despite the existing statutory 
                mandate for CRAs to follow reasonable procedures to 
                assure the maximum possible accuracy of the information 
                whenever they prepare consumer reports, numerous 
                studies and the high volume of consumer complaints 
                submitted to the Bureau about incorrect information on 
                consumer reports demonstrates that these CRAs continue 
                to skirt their obligations under the law, year after 
                year.
            (2) Incorrect information on consumer reports.--
                    (A) Consumers are entitled to dispute errors on 
                their consumer reports with either the CRA or directly 
                with furnishers and request mistakes be deleted or 
                removed. Consumers who believe an investigation has not 
                correctly resolved their dispute have few options other 
                than requesting that a statement about the dispute be 
                included with their future reports.
                    (B) CRAs have a statutory obligation under the FCRA 
                to conduct a reasonable investigation by conducting a 
                substantive and searching inquiry when a consumer 
                disputes an item on their report. In doing so, CRAs 
                must conduct an independent review about the accuracy 
                of any disputed item and cannot merely rely on a 
                furnisher's rubber-stamp verification of the integrity 
                of the information they have provided to CRAs.
                    (C) The Federal Trade Commission (FTC) in a 
                ``Report to Congress Under Section 319 of the Fair and 
                Accurate Credit Transactions Act of 2003'' released in 
                December 2012 found that 26 percent of survey 
                participants identified at least one potentially 
                material error on their consumer reports, and 13 
                percent experienced a change in their credit score once 
                the error was fixed.
                    (D) Bureau examiners have identified repeated 
                deficiencies with the nationwide CRAs' information 
                collection. In the summer 2015 ``Supervisory 
                Highlights'' released in June 2015, the Bureau noted 
                continued weaknesses with CRAs' methods and processes 
                for assuring maximum possible accuracy in consumer 
                reports. Bureau examiners found, with certain 
                exceptions, no quality control policies and procedures 
                to test consumer reports for accuracy.
                    (E) In its ``Credit Reporting Complaint Snapshot'' 
                released in February 2014, the Bureau found that 
                consumers were uncertain about the depth and validity 
                of the investigations performed. Consumers also 
                expressed frustration that even though they provided 
                supporting materials that they believed demonstrated 
                the inaccuracy of the information provided by 
                furnishers, errors continued to remain on their 
                reports.
                    (F) Bureau examiners noted in the winter 2015 
                ``Supervisory Highlights'' released in March 2015 that 
                one or more nationwide CRAs failed to adequately 
                fulfill their dispute-handling obligations, including 
                by not forwarding all relevant information found in 
                letters and supporting documents supplied by consumers 
                when they submitted disputes to furnishers, failing to 
                notify consumers that they had completed their 
                investigations, and not providing consumers with the 
                results of the CRAs' reviews about their dispute 
                claims.
                    (G) Consumers' increasing frustration about the 
                difficulties of trying to fix credit reporting evidence 
                through the volume of consumer complaints errors 
                submitted to the Bureau, are also echoed in another FTC 
                study on credit report accuracy issued in January 2015. 
                In the ``Report to Congress under Section 319 for the 
                Fair and Accurate Credit Transactions Act of 2003'', 
                the FTC found that nearly 70 percent (84 people) of 
                participants from a previous survey that had filed 
                disputes with CRAs continued to believe that at least 
                some of the disputed information remained inaccurate at 
                the time of the follow-up survey. Despite these views, 
                50 percent (42 people) of the survey participants 
                decided to just give up trying to fix the errors, with 
                only 45 percent (38 people) of them planning to 
                continue to try to resolve their disputes.
                    (H) The increasing number of consumer complaints 
                about incorrect information to the Bureau, coupled with 
                the largest CRAs' repeated quality control weaknesses 
                found by Bureau examiners, show that the nationwide 
                CRAs have failed to establish and follow reasonable 
                procedures to assure maximum accuracy of information 
                and to conduct independent investigations of consumers' 
                dispute claims. These ongoing problems demonstrate the 
                need for legislation to--
                            (i) enhance obligations on furnishers to 
                        substantiate information and require furnishers 
                        to keep records for the same amount of time 
                        that adverse information about these accounts 
                        may appear on a person's consumer report;
                            (ii) eliminate CRAs' discretion to 
                        determine the relevancy of materials provided 
                        by consumers to support their dispute claims by 
                        instead requiring them to pass all material 
                        onto furnishers and eliminating their 
                        discretion to deem some disputes frivolous or 
                        irrelevant when a consumer resubmits a claim 
                        that they believe has been inadequately 
                        resolved;
                            (iii) enhance educational content on CRAs' 
                        websites to improve consumers' understanding of 
                        the dispute process and to make it easier for 
                        all consumers to initiate claims, including by 
                        providing these disclosures in other languages 
                        besides English; and
                            (iv) create a new consumer right to appeal 
                        reviews by CRAs and furnishers of the initial 
                        disputes.
            (3) Injunctive relief.--
                    (A) Despite the fact that the FCRA currently 
                provides implicit authority for injunctive relief, 
                consumers have been prevented from exercising this 
                right. Legislation explicitly clarifying this right is 
                intended to underscore congressional intent that 
                injunctive relief should be viewed as a remedy 
                available to consumers.
                    (B) Myriad findings by the courts, regulators, 
                consumers, and consumer advocates make clear that CRAs 
                have failed to establish adequate standards for the 
                accuracy and completeness of consumer reports, yet the 
                nationwide CRAs have demonstrated little willingness to 
                retool their policies and procedures to fix the 
                problems.
                    (C) Providing courts with explicit authority to 
                issue injunctive relief, by telling the CRAs to remedy 
                unlawful practices and procedures, would further CRAs' 
                mandate under the FCRA to assure the maximum possible 
                accuracy and completeness of credit reports.
                    (D) Absent explicit authority to issue injunctions, 
                history suggests that the nationwide CRAs are likely to 
                continue conducting business as usual; dismissing any 
                monetary settlements with individual consumers and 
                State attorneys general as the cost of doing business.
            (4) Use of credit reports for employment purposes.--
                    (A) The use of credit reports as a factor in making 
                hiring decisions has been found to be prevalent in a 
                diverse array of occupations and is not limited to 
                high-level positions.
                    (B) According to the California Labor Federation, 
                only 25 percent of employers researched the credit 
                history of job applicants in 1998. However, this 
                practice had increased to 43 percent by 2006 and to 60 
                percent by 2011.
                    (C) A study entitled, ``Do Job Applicant Credit 
                Histories Predict Job Performance Appraisal Ratings or 
                Termination Decisions?'' published in 2012 found that, 
                while credit history might conceptually measure a 
                person's level of responsibility, ability to meet 
                deadlines, dependability, or integrity, it does not, in 
                practice, actually predict an employee's performance or 
                turnover because credit reports contain many 
                inaccuracies and credit history can be contaminated by 
                events outside a person's control, such as the effects 
                of divorce, death, and accidents on a person's finances 
                and ability to meet deadlines, past youthful naivety, 
                and economic shocks. The study found that there is no 
                benefit from using credit history to predict job 
                performance or turnover.
                    (D) Despite the absence of data showing a 
                correlation between job performance and credit 
                worthiness, employers continue to use credit checks as 
                a proxy for assessing character and integrity. 
                According to a 2012 Society for Human Resource 
                Management survey, organizations indicated that they 
                used credit checks on job candidates primarily to 
                reduce or prevent theft and embezzlement and to 
                minimize legal liability for negligent hiring.
                    (E) The use of credit checks for employment 
                purposes creates a true ``catch-22'' for unemployed 
                people with impaired credit. For example, the financial 
                hardship caused by losing a job may cause some 
                unemployed individuals to make late or partial payments 
                on their bills, but their poor credit standing caused 
                by this negative information on their consumer report 
                can impede their chances of obtaining a new job to end 
                the financial distress.
                    (F) A September 2014 report by the New York City 
                Council's Committee on Civil Rights noted that, for 
                those who have been unemployed for an extended period 
                of time and whose credit has suffered as they fell 
                behind on bills, the use of credit reports in the 
                hiring process can exacerbate and perpetuate an already 
                precarious situation.
                    (G) A March 2013 Demos report titled ``Discredited: 
                How Employment Credit Checks Keep Out Qualified Workers 
                Out of a Job'' found that one in four survey 
                participants who were unemployed said that a potential 
                employer had requested to check their credit report as 
                part of a job application. Among job applicants with 
                blemished credit histories, one in seven had been 
                advised that they were not being hired because of their 
                credit history.
                    (H) While job applicants must give prior approval 
                for a current or prospective employer to pull their 
                credit reports under the FCRA, as a practical matter, 
                this authorization does not constitute an effective 
                consumer protection because an employer may reject any 
                job applicant who refuses a credit check.
                    (I) Credit reports generally do not reflect the 
                uncontrollable circumstances that may have contributed 
                to or caused a person's debts or late payments, such as 
                the loss of a job, a medical crisis, or a divorce.
                    (J) In October 2011, FICO noted that from 2008 to 
                2009, approximately 50 million people experienced a 20-
                point drop in their credit scores and about 21 million 
                saw their scores decline by more than 50 points. While 
                the Great Recession reduced many consumers' credit 
                scores due to foreclosures and other financial 
                hardships, the financial crisis had a particularly 
                harsh impact on Latinos and African-Americans, as 
                racial and ethnic minorities and communities of color 
                were frequently targeted by predatory mortgage lenders 
                who steered them into high-cost, subprime loans even 
                when these borrowers would have qualified for prime 
                credit.
                    (K) A May 2006 Brookings Institution report titled 
                ``Credit Scores, Reports, and Getting Ahead in 
                America'' found that counties with a relatively higher 
                proportion of racial and ethnic minorities in the 
                United States tended to have lower credit scores as 
                compared with counties that had a lower concentration 
                of communities of color.
                    (L) Because Latino and African-American households 
                tend, on average, to have lower credit scores than 
                White households, credit checks may disproportionately 
                screen minorities out of jobs, leading to 
                discriminatory hiring practices, and further 
                exacerbating the trend where unemployment for Latino 
                and African-American communities is elevated well above 
                the rate of Whites.
                    (M) A 2012 Demos survey found that 65 percent of 
                White respondents reported having good or excellent 
                credit scores, while over half of African-American 
                households reported having fair or bad credit.
            (5) Private education loans.--
                    (A) The Bureau's October 2014 report titled 
                ``Annual Report of the CFPB Student Loan Ombudsman'' 
                noted many private education loan borrowers who sought 
                to negotiate a modified repayment plan when they were 
                experiencing a period of financial distress were unable 
                to get such assistance from their loan holders, often 
                resulting in them defaulting on their loans. This 
                pattern closely resembles the difficulty that a 
                significant number of mortgage loan borrowers 
                experienced when they sought to take responsible steps 
                to work with their mortgage servicer to avoid 
                foreclosure during the Great Recession.
                    (B) Although private student loan holders may allow 
                a borrower to postpone payments while enrolled in 
                school full-time, many limit this option to a certain 
                time period, usually 48 to 66 months. This limited time 
                period may not be sufficient for those who need 
                additional time to obtain their degree or who want to 
                continue their education by pursing a graduate or 
                professional degree. The Bureau found that borrowers 
                who were unable to make payments often defaulted or had 
                their accounts sent to collections before they were 
                able to graduate.
            (6) Deceptive practices at certain proprietary education 
        institutions and career education programs.--
                    (A) The for-profit college sector has come under 
                heavy State and Federal scrutiny after the closure and 
                bankruptcy of Corinthian Colleges, which was found to 
                have deceived students by steering them into high-
                interest student loans based on graduation rates and 
                employment data. Even after its closure, Corinthian 
                students remain saddled with debt, worthless degrees, 
                and few prospects for employment.
                    (B) Attending a two-year, for-profit college costs, 
                on average, four times as much as attending a community 
                college. Students at for-profit colleges represent only 
                about 11 percent of the total higher education 
                population but a startling 44 percent of all Federal 
                student loan defaults, according to the United States 
                Department of Education (``DOE'').
                    (C) As highlighted in a press release titled, 
                ``Obama Administration Announces Final Rules to Protect 
                Students from Poor-Performing Career College Programs'' 
                that was issued by the DOE on October 30, 2014, ``[t]oo 
                often, students at career colleges--including thousands 
                of veterans--are charged excessive costs, but don't get 
                the education they paid for. Instead, students in such 
                programs are provided with poor quality training, often 
                for low-wage jobs or in occupations where there are 
                simply no job opportunities. They find themselves with 
                large amounts of debt and, too often, end up in 
                default. In many cases, students are drawn into these 
                programs with confusing or misleading information.''.
            (7) Medical debt.--
                    (A) The Bureau's research on credit reporting and 
                credit scoring has found that the inclusion of medical 
                debt collection information on consumer reports has 
                unfairly reduced consumers' credit scores.
                    (B) The Bureau's review of 5 million anonymized 
                credit files from September 2011 to September 2013 
                found that credit scores may underestimate a person's 
                creditworthiness by up to 10 points for those who owe 
                medical debt, and may underestimate a person's 
                creditworthiness by up to 22 points after the medical 
                debt has been paid. For consumers with lower credit 
                scores, especially those on the brink of what is 
                considered subprime, a 10 to 22 point decrease in their 
                credit scores can have a significant impact on their 
                lives, including by affecting whether they are able to 
                qualify for credit and, if so, the terms and conditions 
                under which it is extended to them. The differences in 
                peoples' credit scores because of medical debt could 
                unfairly cost them tens of thousands of dollars on 
                large loans such as mortgages.
                    (C) The Bureau found that half of all collections 
                tradelines that appear on consumer reports are related 
                to medical bills claimed to be owed to hospitals and 
                other medical providers. These tradelines affect the 
                credit reports of nearly \1/5\ of all consumers in the 
                credit reporting system.
                    (D) The Bureau concluded that there are no 
                objective or enforceable standards that determine when 
                a debt can or should be reported as a collection 
                tradeline. Because debt buyers and collectors determine 
                whether, when, and for how long to report a collection 
                account, there is only a limited relationship between 
                the time period reported, the severity of a 
                delinquency, and when or whether a collection tradeline 
                appears on a consumer's credit report.
                    (E) Medical patients may be uncertain about what 
                they owe, to whom, when, or for what, causing some 
                consumers who ordinarily pay their bills on time to 
                delay or withhold payments on medical debts. In many 
                instances, consumers' uncertainty about medical bills 
                can result in medical debt collections appearing on 
                their consumer reports. In a December 2014 report 
                titled ``Consumer Credit Reports: A Study of Medical 
                and Non-Medical Collections'', the Bureau found that a 
                large portion of consumers with medical debts in 
                collections show no other evidence of financial 
                distress and are consumers who ordinarily pay their 
                other financial obligations on time. Unlike credit 
                cards, installment loans, utilities, or wireless or 
                cable services that have contractual account 
                disclosures describing terms and conditions of use, 
                most consumers are not told what their out-of-pocket 
                medical costs will be in advance. Consumers needing 
                urgent or emergency care rarely know, or are provided, 
                the cost of a treatment or procedure before the service 
                is rendered.
                    (F) The Bureau concluded that the presence of 
                medical collections is less predictive of future 
                defaults or serious delinquencies than the presence of 
                a nonmedical collection in a study titled ``Data Point: 
                Medical Debt and Credit Scores'' issued in May 2014.
                    (G) In March 2013, VantageScore released a new 
                credit scoring model (VantageScore 3.0) that excludes 
                all paid collections. In April 2014, FICO announced 
                that its new credit scoring model (FICO '09) excludes 
                any record of a consumer failing to pay a bill if the 
                bill has been paid or settled with a collection agency 
                and also gives less weight to unpaid medical bills that 
                are with a collection agency. Many Americans, 
                therefore, could see significant improvements in their 
                credit scores if creditors and lenders used the latest 
                versions of credit scoring models that treat medical 
                debt differently.
            (8) Financial abuse by known persons.--
                    (A) Financial abuse is frequently associated with 
                domestic violence. Financial abuse in a relationship 
                may result in fraudulent charges to a credit card, or 
                having fraudulent loans taken out or accounts created 
                by the abuser in the survivor's name. Financial abuse 
                may also result in the survivor's inability to make 
                valid payments because of lost income when the abuser 
                steals from or coerces the survivor to relinquish their 
                paychecks.
                    (B) By racking up substantial debts in the 
                survivor's name, abusers are able to exercise control 
                and make it harder for the survivor, whose credit is 
                often destroyed in the process, to escape.
                    (C) Domestic abuse survivors with tarnished credit 
                reports are likely to face significant obstacles in 
                establishing financial independence from their abusers. 
                This is because credit reports often determine a 
                consumer's ability to obtain a checking account, 
                housing, insurance, utilities, employment, and even a 
                security clearance as required for certain jobs.
                    (D) While in many cases, identity thieves are 
                individuals who are actually known to the survivor, 
                providing documentation of identity theft in order to 
                dispute information on one's consumer report can be 
                particularly challenging for those who know their 
                financial abuser.
                    (E) While it is easier for consumers who obtain a 
                police report to remove fraudulent information from 
                their consumer report and prevent it from reappearing 
                in the future, according to the Empire Justice Center, 
                safety and other noncredit concerns may prevent a 
                survivor of financial abuse involving a known person 
                from involving the police.
                    (F) According to domestic violence advocates at the 
                Legal Aid Society in New York, domestic abuse survivors 
                seeking to remove adverse information stemming from 
                financial abuse by contacting their creditors directly 
                are likely to face skepticism about claims of identity 
                theft perpetrated by a spouse because of an assumption 
                that the individual was aware of and may have been 
                complicit in the activity which the survivor alleges 
                stems from financial abuse.
            (9) GSE's impact on the use of updated versions or 
        additional credit scoring models by mortgage lenders.--
                    (A) Despite innovation in understanding consumer 
                behavior and credit scoring analytics, many creditors 
                and lenders, particularly mortgage lenders, continue to 
                use older versions of credit scoring models and 
                algorithms.
                    (B) Lenders that originate residential mortgage 
                loans generally adhere to the underwriting guidelines 
                set by Fannie Mae and Freddie Mac, which reference the 
                2004 FICO credit scoring model (developed more than a 
                decade ago), not the most recent version developed in 
                2009 (that was released in 2014).
                    (C) Despite changes in recent years to credit 
                scoring models offered by major credit scoring 
                developers VantageScore and FICO to reflect current 
                research about consumer behavior and creditworthiness, 
                it is likely that paid collections (medical or 
                otherwise) will continue to be factored into the risk 
                level of each consumer shopping for credit because only 
                a small percentage of creditors may actually be using 
                the latest models.
            (10) Consumers' confusion about consumer reports and credit 
        scores.--
                    (A) A July 2011 Bureau report titled ``The Impact 
                of Differences between Consumer- and Creditor-Purchased 
                Credit Scores'' found that the credit scores made 
                available to and purchased by consumers are unlikely to 
                be the same credit scores used by creditors and 
                lenders.
                    (B) That report found that the scarcity of public 
                educational tools to inform consumers of the 
                differences among credit scores, the large combined 
                market share and brand recognition of FICO credit 
                scores, and the marketing practices of some credit 
                score sellers may perpetuate consumers' confusion about 
                credit scores. Consumers may be purchasing an 
                educational credit score or subscribing to a credit 
                monitoring service sold by CRAs without realizing the 
                limitations and usefulness of these products and 
                services.
                    (C) A September 2012 Bureau report titled 
                ``Analysis of Differences between Consumer- and 
                Creditor-Purchased Credit Scores'' found different 
                types of scores, such as those provided by FICO, 
                VantageScore, or other educational scores, vary 
                greatly. The report noted that consumers do not know 
                before they purchase a score from a CRA whether this 
                score will closely track or vary significantly from the 
                score sold to creditors or lenders. Due to this lack of 
                transparency and the resulting consumer confusion, the 
                Bureau recommended that companies selling scores to 
                consumers inform them that the scores that they are 
                purchasing can vary, sometimes substantially, from the 
                scores that are sold to and used by creditors and 
                lenders. Absent increased transparency a substantial 
                number of consumers will continue to hold misleading 
                and inaccurate views of their own creditworthiness that 
                may impact how and whether they shop for credit.
                    (D) In February 2011, a Consumer Federation of 
                America and VantageScore study also found that the 
                general public lacks a clear understanding of what 
                credit scores represent. The report found that half of 
                the consumers surveyed did not know that a credit score 
                is designed to indicate the risk of not repaying a 
                loan. Consumers also did not know who makes credit 
                scores available, what numerical range constitutes 
                excellent credit standing, or the financial 
                implications of having a low credit score.
                    (E) Many consumers do not realize that they have 
                more than just ``one'' credit score. Because the 
                submission of credit information to CRAs is voluntary 
                and not all furnishers submit information to every CRA, 
                the information contained in a consumer's credit report 
                also varies among CRAs. As a result, the credit score 
                generated by each CRA is likely to vary, resulting in 
                potentially different credit decisions based on an 
                evaluation of different credit reports obtained from 
                different CRAs.
                    (F) A February 2015 Bureau report titled ``Consumer 
                Voices on Credit Reports and Scores'' found that 
                consumers had questions about what actions to take to 
                improve their scores once they had seen them, 
                suggesting that additional disclosures and educational 
                content is necessary. The Bureau found that consumers 
                were confused by conflicting advice on how to improve 
                their scores.
                    (G) That report noted that consumers found the 
                process for obtaining consumer reports and credit 
                scores confusing. Consumers also were uncertain whether 
                and under what circumstances they could obtain a 
                consumer report for free.
            (11) Deceptive and misleading marketing practices.--
                    (A) The Bureau's February 2015 report titled 
                ``Consumer Voices on Credit Reports and Scores'' found 
                that some consumers did not check their consumer report 
                because of concerns about security or being trapped 
                into purchasing unwanted products like an additional 
                report or a credit monitoring service.
                    (B) CRAs frequently lure consumers into purchasing 
                products and services that they may not want or need by 
                offering such products or services ``free of charge'' 
                for an introductory trial period before such products 
                automatically convert into an ongoing subscription 
                service at the regular price until the offer is 
                cancelled.
                    (C) Given the ubiquitous use of consumer reports in 
                consumers' lives and the fact that consumers' 
                participation in the credit reporting system is 
                involuntary, CRAs should prioritize providing consumers 
                with the effective means to safeguard their personal 
                and financial information and improve their credit 
                standing, rather than seeking to exploit consumers' 
                concerns for their companies' financial gain.
                    (D) Vulnerable consumers, who have legitimate 
                concerns about the security of their personal and 
                financial information, deserve clear, accurate, and 
                transparent information about the credit reporting 
                tools that may be available to them, such as fraud 
                alerts and audit freezes.
            (12) Loan comparison shopping.--
                    (A) The Bureau's February 2015 report titled 
                ``Consumer Voices on Credit Reports and Scores'' found 
                that while consumers stand to benefit when they shop 
                for credit, some consumers are reluctant to shop for 
                loans and other types of consumer credit products out 
                of fear that in doing so they will harm their credit 
                scores.
                    (B) The Bureau found that one of the most common 
                barriers for people in reviewing their own consumer 
                reports and shopping for the best credit terms was a 
                lack of understanding of the differences between 
                ``soft'' and ``hard'' inquiries and whether requesting 
                a copy of their own consumer report adversely impacts 
                their credit.
                    (C) The Bureau revealed that a consumer with an 
                accurate perception of his or her credit standing may 
                be better equipped to shop for favorable credit terms.
            (13) Protections for consumers' credit information.--
                    (A) Despite heightened awareness, incidents of 
                identity theft continue to rise. In February 2015 the 
                FTC reported that identity theft was the top consumer 
                complaint that it received for the 15th consecutive 
                year. As these incidents continue to rise, consumers 
                experience significant financial loss and emotional 
                distress from the inability to safeguard effectively 
                and inexpensively their credit information from bad 
                actors.
                    (B) According to Javelin Strategy & Research's 2015 
                Identity Fraud study, $16 billion was stolen by 
                fraudsters from 12.7 million American consumers in 
                2014. Similarly, the United States Department of 
                Justice found an estimated 7 percent of all United 
                States residents age 16 or older (about 17.6 million 
                persons) were victims of one or more incidents of ID 
                theft in 2014, and the number of elderly victims age 65 
                or older (about 86 percent) increased from 2.1 million 
                in 2012 to 2.6 million in 2014.
                    (C) Consumers report that they are extremely 
                worried about the security of their financial 
                information. According to a 2015 MasterCard survey, a 
                majority of consumers (77 percent) are anxious about 
                their financial information and Social Security numbers 
                being stolen or compromised, with about 55 percent of 
                consumers indicating that they would rather have naked 
                pictures of themselves leaked online than have their 
                financial information stolen.
                    (D) The 2015 MasterCard survey revealed that 
                consumers' concerns about the online security of their 
                financial information even outweighed consumers' 
                worries about other physical security dangers such as 
                having their houses robbed (59 percent) or being 
                pickpocketed (46 percent).
                    (E) Despite the increasing risks consumers face, 
                there is no Federal requirement that ensures victims, 
                the elderly and other vulnerable consumers have access 
                to credit freezes, the best tool for protecting against 
                new account fraud, free of charge. Nor is there a 
                Federal requirement to ensure that consumers regardless 
                of where they live can proactively place a credit 
                freeze on their consumer report to guard against the 
                risk of identity theft and fraud for a fair and 
                reasonable fee.
                    (F) As a result of varying State laws, many 
                consumers may be unable to quickly lift a credit freeze 
                they place on their consumer report, either for a 
                specific creditor or category of creditors, when the 
                time comes for the consumer to obtain credit. Indeed, 
                many consumers may not be taking advantage of existing 
                credit freeze rights provided at the State level if 
                they perceive the benefits of this protection to be 
                outweighed by the burden associated with using it.
                    (G) According to Consumer Reports, roughly 50 
                million American consumers spent about 3.5 billion in 
                2010 to purchase products aimed at protecting their 
                identity, with the annual cost of the services ranging 
                from $120 to $300. As risks to consumers' personal and 
                financial information continue to grow, consumers need 
                additional protections to ensure that they have fair 
                and reasonable access to the full suite of identity 
                theft and fraud prevention measures that may be right 
                for them.

SEC. 4. EFFECTIVE DATE.

    Except as otherwise specified, the amendments made by this Act 
shall take effect 2 years after the date of the enactment of this Act.

                  TITLE I--FIXING THE DISPUTE PROCESS

SEC. 101. ESTABLISHES A NEW RIGHT TO APPEAL DISPUTES COMPLETED BY 
              CONSUMER REPORTING AGENCIES AND FURNISHERS.

    (a) In General.--Section 611(a) of the Fair Credit Reporting Act 
(15 U.S.C. 1681i(a)) is amended to read as follows:
    ``(a) Reinvestigations of Disputed Information by a Consumer 
Reporting Agency.--
            ``(1) Reinvestigations required.--
                    ``(A) In general.--Subject to subsection (f), if 
                the completeness or accuracy of any item of information 
                contained in a consumer's file at a consumer reporting 
                agency is disputed by the consumer and the consumer 
                notifies the agency (either directly or indirectly 
                through a reseller or an authorized third party) of 
                such dispute, the agency shall, free of charge--
                            ``(i) conduct a reasonable reinvestigation 
                        using the process described in paragraph (3) to 
                        determine whether the disputed information is 
                        inaccurate, incomplete, or cannot be verified;
                            ``(ii) notify the consumer that a notation 
                        described in section 605(e) will be added to 
                        the consumer's file until the reinvestigation 
                        has been completed and that such notation can 
                        be removed at the request of the consumer; and
                            ``(iii) before the end of the 30-day period 
                        beginning on the date on which the consumer 
                        reporting agency receives the notice of the 
                        dispute from the consumer or the reseller--
                                    ``(I) record the current status of 
                                the disputed information; or
                                    ``(II) delete or modify the item in 
                                accordance with paragraph (3)(D).
                    ``(B) Extension of period to reinvestigate.--Except 
                as provided in subparagraph (C), the 30-day period 
                described in subparagraph (A) may be extended for 
                period not to exceed 15 days if the consumer reporting 
                agency receives additional information from the 
                consumer or the reseller regarding the dispute after 
                the date on which the consumer reporting agency 
                notified any person who provided any item of 
                information in dispute under paragraph (2)(A).
                    ``(C) Limitations on extension of period to 
                reinvestigate.--Subparagraph (B) shall not apply to any 
                reinvestigation in which, during the 30-day period 
                described in subparagraph (A), the disputed information 
                is found to be inaccurate or incomplete, or the 
                consumer reporting agency determines that the disputed 
                information cannot be verified.
            ``(2) Prompt notice of dispute to furnisher of information; 
        provision of information regarding dispute provided by the 
        consumer or reseller.--
                    ``(A) In general.--Before the end of the period of 
                5 business days beginning on the date on which a 
                consumer reporting agency receives notice of a dispute 
                from any consumer or reseller under paragraph (1)(A), 
                the consumer reporting agency shall provide 
                notification of the dispute to any person who provided 
                any item of information in dispute, at the address and 
                in the manner established with such person. The notice 
                shall include all information, including substantiating 
                documents, regarding the dispute that was submitted to 
                the consumer reporting agency.
                    ``(B) Provision of additional information regarding 
                dispute after notification to the furnisher of 
                information.--If a consumer reporting agency receives 
                additional information regarding the dispute from the 
                consumer or reseller after the agency provides the 
                notification described under subparagraph (A) and 
                before the end of the 30-day period described in 
                paragraph (1)(A), the consumer reporting agency shall, 
                not later than 3 business days after receiving such 
                information, provide such information to the person who 
                provided the information in dispute.
            ``(3) Reasonable standards for consumer reporting agencies 
        for conducting reinvestigations and resolving disputes 
        submitted by consumers.--
                    ``(A) In general.--In conducting a reinvestigation 
                of disputed information, a consumer reporting agency 
                shall, at a minimum--
                            ``(i) maintain sufficient resources and 
                        trained staff, commensurate with the volume and 
                        complexity of disputes received or reasonably 
                        anticipated to be received, to determine 
                        whether the disputed information is accurate, 
                        complete, or can be verified by the person who 
                        provided the information;
                            ``(ii) ensure that all staff involved at 
                        any level of the reinvestigation process, 
                        including any individual with ultimate 
                        authority over determining whether the disputed 
                        information is inaccurate, incomplete, or 
                        cannot be verified, are located within the 
                        United States;
                            ``(iii) verify that the personally 
                        identifiable information of the consumer 
                        submitting the dispute matches the personally 
                        identifiable information contained in the 
                        consumer's file, and that such information is 
                        accurate and complete;
                            ``(iv) verify that the consumer reporting 
                        agency has a record of the information being 
                        disputed; and
                            ``(v) conduct a reasonable review that 
                        considers all information, including 
                        substantiating documents, provided by the 
                        consumer or reseller.
                    ``(B) Consumer reporting.--The consumer reporting 
                agency shall not impose any limitation or otherwise 
                impede the ability of a consumer to submit information 
                about the disputed item.
                    ``(C) Independent analysis.--The reinvestigation 
                conducted under subparagraph (A) shall be an 
                independent analysis, separate from any investigation 
                by a reseller or a person who provided the disputed 
                information.
                    ``(D) Deletion or modification of information 
                contained in a consumer file.--If the disputed 
                information is found to be inaccurate, incomplete, or 
                cannot be verified, the dispute resolution staff of the 
                consumer reporting agency shall have the direct 
                authority to delete or modify such information in the 
                consumer's file, as appropriate, during the 30-day 
                period described in paragraph (1)(A), shall promptly 
                notify the consumer of the results of the 
                reinvestigation as described in paragraph (4), and 
                shall promptly notify any person who provided such 
                information to the consumer reporting agency of the 
                modification or deletion made to the consumer's file.
            ``(4) Notice to consumer of results of reinvestigation.--
                    ``(A) In general.--Not later than 5 business days 
                after the conclusion of a reinvestigation conducted 
                under this subsection, the consumer reporting agency 
                shall provide written notice to the consumer of the 
                results of the reinvestigation by postal mail or, if 
                authorized by the consumer for that purpose, by other 
                means available to the agency.
                    ``(B) Contents of notice to consumer of results of 
                reinvestigation.--The notice described in subparagraph 
                (A) shall include--
                            ``(i) a statement that the reinvestigation 
                        of the disputed information has been completed;
                            ``(ii) a statement informing the consumer 
                        as to whether the disputed information was 
                        determined to be inaccurate, incomplete, or 
                        unverifiable, including a statement of the 
                        specific reasons supporting the determination;
                            ``(iii) if information in the consumer's 
                        file has been deleted or modified as a result 
                        of the reinvestigation--
                                    ``(I) a copy of the consumer report 
                                and credit score or educational score 
                                (if applicable) that is based upon the 
                                consumer's revised file;
                                    ``(II) a statement identifying the 
                                specific information from the 
                                consumer's file that was deleted or 
                                modified because such information was 
                                determined to be inaccurate, 
                                incomplete, or unverifiable by the 
                                consumer reporting agency;
                                    ``(III) a statement that the 
                                consumer has the right, free of charge, 
                                to obtain an additional consumer report 
                                and credit score or educational credit 
                                score (if applicable) within the 12-
                                month period following the date of the 
                                conclusion of the reinvestigation, 
                                regardless of whether the consumer 
                                obtained or will obtain a free annual 
                                consumer report and credit score or 
                                educational score (if applicable) under 
                                section 612; and
                                    ``(IV) a statement that the 
                                consumer has the right, free of charge, 
                                to request under subsection (d) that 
                                the consumer reporting agency furnish 
                                notifications of the consumer's revised 
                                report;
                            ``(iv) a description of the procedure used 
                        by the dispute resolution staff of the consumer 
                        reporting agency to determine the accuracy or 
                        completeness of the information, including the 
                        business name, mailing address, telephone 
                        number, and Internet website address (if 
                        available) of any person who provided 
                        information who was contacted by the staff in 
                        connection with the determination;
                            ``(v) a statement that the consumer has the 
                        right, free of charge, to add a narrative 
                        statement to the consumer's file disputing the 
                        accuracy or completeness of the information, 
                        regardless of the results of the 
                        reinvestigation by the agency, and the process 
                        for submitting such a narrative pursuant to 
                        subsection (b);
                            ``(vi) a copy of all information relating 
                        to the consumer that was used by the consumer 
                        reporting agency in carrying out the 
                        reinvestigation and relied upon as the basis 
                        for the determination about the accuracy and 
                        completeness of the disputed information;
                            ``(vii) a statement that a consumer may, 
                        free of charge, challenge the results of the 
                        reinvestigation by appeal within 120 days after 
                        the date the notice of the results of the 
                        reinvestigation was provided to the consumer 
                        and the process for submitting an appeal;
                            ``(viii) a statement informing the consumer 
                        that a notation described in section 605(e) 
                        will be added to the file of the consumer 
                        during the period in which the consumer appeals 
                        the results of a reinvestigation and that such 
                        notation can be removed at the request of the 
                        consumer; and
                            ``(ix) any other information, as determined 
                        by the Bureau.
            ``(5) Requirements relating to reinsertion of previously 
        deleted or modified material.--
                    ``(A) Certification of new determination that item 
                is accurate or complete.--A consumer reporting agency 
                may not reinsert into a consumer's file any information 
                that was previously deleted or modified pursuant to 
                paragraph (3)(D), unless the person who provided the 
                information--
                            ``(i) requests that the consumer reporting 
                        agency reinsert such information;
                            ``(ii) submits a written certification that 
                        the information is accurate and complete; and
                            ``(iii) provides a statement describing the 
                        specific reasons why the information should be 
                        inserted.
                    ``(B) Notice to consumer before reinsertion can 
                occur.--Upon receipt of a request for reinsertion of 
                disputed information under subparagraph (A), the 
                consumer reporting agency shall, not later than 5 
                business days before the consumer reporting agency 
                reinserts the information into the consumer's file, 
                notify the consumer in writing of such request for 
                reinsertion. Such notice shall include--
                            ``(i) the business name, mailing address, 
                        telephone number, and Internet website address 
                        (if available) of any person who provided 
                        information to or contacted the consumer 
                        reporting agency in connection with the 
                        reinsertion;
                            ``(ii) a copy of the information relating 
                        to the consumer, the certification that the 
                        information is accurate or complete, and the 
                        statement of the reasons supporting reinsertion 
                        provided by the person who provided the 
                        information to the consumer reporting agency 
                        under subparagraph (A);
                            ``(iii) a statement that the consumer may 
                        obtain, free of charge and within the 12-month 
                        period following the date the notice under this 
                        subparagraph was issued, a consumer report and 
                        credit score or educational score (if 
                        applicable) from the consumer reporting agency 
                        that includes the reinserted information, 
                        regardless of whether the consumer obtained or 
                        will obtain a free annual consumer report and 
                        credit score or educational credit score (if 
                        applicable) under section 612;
                            ``(iv) a statement that the consumer may 
                        appeal the determination that the previously 
                        deleted or modified information is accurate or 
                        complete and a description of the procedure for 
                        the consumer to make such an appeal pursuant to 
                        subsection (h); and
                            ``(v) a statement that the consumer has the 
                        right to add a narrative statement, free of 
                        charge, to the consumer's file disputing the 
                        accuracy or completeness of the disputed 
                        information and a description of the process to 
                        add such a narrative statement pursuant to 
                        subsection (b).
            ``(6) Expedited dispute resolution.--If a consumer 
        reporting agency determines that the information provided by 
        the consumer is sufficient to substantiate that the item of 
        information is inaccurate, incomplete, or cannot be verified by 
        the person who furnished such information, and the consumer 
        reporting agency deletes or modifies such information within 3 
        business days of receiving notice of the dispute, the consumer 
        reporting agency shall be exempt from the requirements of 
        paragraph (4), if the consumer reporting agency provides to the 
        consumer--
                    ``(A) prompt notice confirming the deletion or 
                modification of the information from the consumer's 
                file in writing or by other means, if agreed to by the 
                consumer when the information is disputed;
                    ``(B) a statement of the consumer's right to 
                request that the consumer reporting agency furnish 
                notifications of a revised consumer report pursuant to 
                subsection (d);
                    ``(C) not later than 5 business days after deleting 
                or modifying the information, a copy of the consumer 
                report and credit score or educational score (if 
                applicable) that is based upon the consumer's revised 
                file; and
                    ``(D) a statement that the consumer may obtain, 
                free of charge and within the 12-month period following 
                the date the notice under this paragraph was sent to 
                the consumer, a consumer report and credit score or 
                educational score (if applicable) from the consumer 
                reporting agency, regardless of whether the consumer 
                obtained or will obtain their free annual consumer 
                report and credit score or educational score (if 
                applicable) under section 612.
            ``(7) No excuse for failure to conduct reinvestigation.--A 
        consumer reporting agency may not refuse to conduct a 
        reinvestigation under this subsection because the agency 
        determines that the dispute was submitted by an authorized 
        third party, unless the agency has clear and convincing 
        evidence that the third party is not authorized to submit the 
        dispute on the consumer's behalf. If the consumer reporting 
        agency refuses to reinvestigate a dispute for these reasons, it 
        shall provide a clear and conspicuous notice to the consumer 
        explaining the reasons for the refusal and describing the 
        specific information the consumer is required to provide for 
        the agency to conduct the reinvestigation.''.
    (b) Ensuring Consumer Reporting Agencies Furnish Certain 
Notifications Without Charge.--Section 611(d) of the Fair Credit 
Reporting Act (15 U.S.C. 1681i(d)) is amended by inserting ``and 
without charge'' after ``request of the consumer''.
    (c) Including Specialty Consumer Reporting Agencies in Reports.--
            (1) In general.--Section 611(e) of the Fair Credit 
        Reporting Act (15 U.S.C. 1681i(e)) is amended by inserting ``or 
        603(x)'' after ``section 603(p)''.
            (2) Technical amendment.--Paragraph (1) of such section (15 
        U.S.C. 1681i(e)(1)) is amended by striking ``The Commission'' 
        and inserting ``The Bureau''.
    (d) Conforming Amendments.--Such Act is further amended--
            (1) in section 605B(c)(2), by striking ``section 
        611(a)(5)(B)'' and inserting ``section 611(a)(5)'';
            (2) in section 611--
                    (A) in subsection (c), by striking ``unless there 
                is reasonable grounds to believe that it is frivolous 
                or irrevelant,''; and
                    (B) in subsection (f)(3)--
                            (i) in subparagraph (A), by striking 
                        ``paragraph (6), (7), or (8) of subsection 
                        (a)'' and inserting ``paragraph (4) or (5) of 
                        subsection (a)''; and
                            (ii) in subparagraph (B), by striking ``in 
                        the manner required under paragraph (8)(A)''; 
                        and
            (3) in section 623(b)(1)(B), by striking ``relevant'' 
        before ``information''.
    (e) Global Technical Corrections to References to Nationwide 
Specialty Consumer Reporting Agency.--Such Act is further amended--
            (1) by striking ``section 603(w)'' and inserting ``section 
        603(x)'' each place such term appears; and
            (2) in section 612(a)(1)(A), by striking ``(w)'' and 
        inserting ``(x)''.

SEC. 102. CREATES REASONABLE DISPUTE PROCEDURES FOR FURNISHERS OF 
              INFORMATION AND MEANINGFUL DISCLOSURES TO CONSUMERS ABOUT 
              INVESTIGATIONS; NOTICES BY FURNISHERS TO CONSUMERS OF 
              REPORTING OF NEGATIVE ITEMS TO CONSUMER REPORTING 
              AGENCIES.

    Section 611 of the Fair Credit Reporting Act (15 U.S.C. 1681i) is 
amended by adding at the end the following new subsection:
    ``(g) Increased Consumer Awareness of Dispute Rights.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this subsection, each consumer reporting agency 
        described under subsection (p) or (x) of section 603 shall--
                    ``(A) establish an Internet website accessible to 
                consumers; and
                    ``(B) post on the home page of such website a 
                hyperlink to a separate webpage established and 
                maintained solely for the purpose of providing 
                information to a consumer about how to dispute an item 
                of information in the consumer report of the consumer.
            ``(2) Dispute webpage requirements.--For a consumer 
        reporting agency described under subsection (p) or (x) of 
        section 603, the separate dispute webpage described in 
        paragraph (1)(B)--
                    ``(A) may not include any type or form of 
                marketing, advertising, information, or material 
                associated with any products or services offered or 
                sold to consumers;
                    ``(B) shall clearly and conspicuously disclose a 
                concise statement regarding how to file a dispute 
                through the agency, free of charge, in the manner and 
                format prescribed by the Bureau;
                    ``(C) shall describe the types of documents that 
                will be used by the agency in resolving the dispute, 
                including the business name and mailing address to 
                which a consumer may send such documents;
                    ``(D) shall include a clear and concise explanation 
                of and the process for using electronic or other means 
                to submit such documents, free of charge, and without 
                any character or data limitation imposed by the agency;
                    ``(E) shall include a statement that the consumer 
                may submit information, free of charge, that the 
                consumer believes will assist the consumer reporting 
                agency in determining the results of the 
                reinvestigation of the dispute;
                    ``(F) shall clearly and conspicuously disclose a 
                statement describing the procedure likely to be used by 
                the consumer reporting agency in carrying out a 
                reinvestigation to determine the accuracy or 
                completeness of the disputed item of information, 
                including the time period in which the consumer will be 
                notified of the results of the reinvestigation, and a 
                statement that the agency may extend the 
                reinvestigation period by an additional 15 days if the 
                consumer submits additional information after a certain 
                date; and
                    ``(G) shall provide translations of all information 
                on the webpage in each of the 10 most commonly spoken 
                languages, other than English, in the United States, as 
                determined by the Bureau of the Census on an ongoing 
                basis, and in formats accessible to individuals with 
                hearing or vision impairments.''.

SEC. 103. CREATES REASONABLE DISPUTE PROCEDURES FOR CONSUMER REPORTING 
              AGENCIES AND MEANINGFUL DISCLOSURES TO CONSUMERS ABOUT 
              REINVESTIGATIONS.

    Section 623 of the Fair Credit Reporting Act (15 U.S.C. 1681s-2) is 
amended by adding at the end the following new subsection:
    ``(f) Duty of Furnishers To Maintain Records of Consumers.--
            ``(1) In general.--A person who furnishes information to a 
        consumer reporting agency relating to a consumer who has an 
        account with that person shall maintain all information 
        necessary to substantiate the accuracy and completeness of the 
        information furnished, including any records establishing the 
        liability and terms and conditions under which credit was 
        extended to a consumer and any payment history with respect to 
        such credit.
            ``(2) Retention period.--Records described under paragraph 
        (1) shall be maintained until the information with respect to 
        which the records relate may no longer be included in a 
        consumer report pursuant to sections 605, 605C, 605D, and 605E.
            ``(3) Transfer of ownership.--If a person providing 
        information to a consumer reporting agency is acquired by 
        another person, or if another person acquires the right to 
        repayment connected to such information, the acquiring person 
        shall be subject to the requirements of this subsection with 
        respect to such information to the same extent as the person 
        who initially provided such information to the consumer 
        reporting agency. The person selling or transferring the right 
        to repayment shall provide the information described in 
        paragraph (1) to the transferee or the acquirer.''.

SEC. 104. INCREASES CONSUMERS' AWARENESS OF DISPUTE RIGHTS AND TOOLS 
              FOR CHALLENGING ERRORS.

    (a) Duty To Provide Accurate and Complete Information.--Section 
623(a) of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)) is 
amended--
            (1) in the subsection heading, by inserting ``and 
        Complete'' after ``Accurate'';
            (2) in paragraph (1)--
                    (A) by inserting ``or incomplete'' after 
                ``inaccurate'' each place that term appears; and
                    (B) in subparagraph (D), by inserting ``or 
                completeness'' after ``accuracy''; and
            (3) in paragraph (8)--
                    (A) in subparagraph (A), by inserting ``and 
                completeness'' after ``accuracy''; and
                    (B) in subparagraph (D), by inserting ``or 
                completeness'' after ``accuracy''.
    (b) Negative Information Notices to Consumers.--Section 623(a)(7) 
(15 U.S.C. 1681s-2(a)(7)) of such Act is amended to read as follows:
            ``(7) Duty of furnishers to inform consumers about 
        reporting negative information.--
                    ``(A) General negative information warning notice 
                to all consumers prior to furnishing such 
                information.--
                            ``(i) In general.--Any person that 
                        regularly furnishes negative information to a 
                        consumer reporting agency described in 
                        subsection (p) or (x) of section 603 about 
                        activity on any accounts of a consumer held by 
                        such person or transactions associated with 
                        credit extended to a consumer by such person 
                        shall provide a written general negative 
                        information warning notice to each such 
                        consumer before such person may furnish any 
                        negative information relating to such a 
                        consumer.
                            ``(ii) Content.--Such notice shall--
                                    ``(I) be clear and conspicuous;
                                    ``(II) describe the types of 
                                activities that constitute negative 
                                information;
                                    ``(III) inform the consumer that 
                                the person may report negative 
                                information relating to any such 
                                accounts or transactions to a consumer 
                                reporting agency described in 
                                subsection (p) or (x) of section 603;
                                    ``(IV) state that the negative 
                                information may appear on a consumer 
                                report of the consumer for the periods 
                                described in section 605 and that 
                                during such periods, the negative 
                                information may adversely impact the 
                                consumer's credit score;
                                    ``(V) state that in some limited 
                                circumstances, the negative information 
                                may result in other adverse actions, 
                                including a denial of a new job or a 
                                promotion from existing employment; and
                                    ``(VI) state that the consumer has 
                                right to--
                                            ``(aa) obtain a copy of 
                                        their consumer report and 
                                        credit score or educational 
                                        score (if applicable), which in 
                                        some instances can be obtained 
                                        free of charge, from any 
                                        consumer reporting agency to 
                                        which negative information may 
                                        be been sent; and
                                            ``(bb) dispute, free of 
                                        charge, any errors on a 
                                        consumer report relating to the 
                                        consumer.
                            ``(iii) Timing of notice.--Such person 
                        shall provide such notice to a consumer not 
                        later than 90 days before the date on which the 
                        person furnishes negative information relating 
                        to such consumer.
                    ``(B) Specific negative information notice to a 
                consumer.--
                            ``(i) In general.--Any person described in 
                        subparagraph (A) that has furnished negative 
                        information relating to activity on any 
                        accounts of a consumer held by such person or 
                        transactions associated with credit extended to 
                        a consumer by such person to a consumer 
                        reporting agency described in subsection (p) or 
                        (x) of section 603 shall send a written notice 
                        to each such consumer.
                            ``(ii) Content.--Such notice shall--
                                    ``(I) be clear and conspicuous;
                                    ``(II) inform the consumer that the 
                                person has furnished negative 
                                information relating to such accounts 
                                or transactions to a consumer reporting 
                                agency described in subsection (p) or 
                                (x) of section 603;
                                    ``(III) identify any consumer 
                                reporting agency to which the negative 
                                information was furnished, including 
                                the name of the agency, mailing 
                                address, Internet website address, and 
                                toll-free telephone number; and
                                    ``(IV) include the statements 
                                described in subclauses (IV), (V), and 
                                (VI) of subparagraph (A)(ii).
                            ``(iii) Time of notice.--Such person shall 
                        provide such notice to a consumer not later 
                        than 5 business days after the date on which 
                        the person furnished negative information 
                        relating to such consumer.
                    ``(C) Notice effective for subsequent 
                submissions.--After providing the notice described in 
                subparagraph (B), the person may submit additional 
                negative information to a consumer reporting agency 
                described in subsection (p) or (x) of section 603 
                without providing additional notice to the consumer, 
                unless another person acquires the right to repayment 
                connected to the additional negative information. The 
                acquiring person shall be subject to the requirements 
                of this paragraph and shall be required to send 
                consumers the written notices described in this 
                paragraph, if applicable.
                    ``(D) Non-traditional data furnishers.--Any person 
                that furnishes negative information to a consumer 
                reporting agency described in subsection (p) or (x) of 
                section 603 relating to any accounts of, or 
                transactions associated with, a consumer by such person 
                involving non-traditional data shall be subject to the 
                requirements described in subparagraphs (A), (B), and 
                (C).
                    ``(E) Model notices.--
                            ``(i) Duty of bureau.--Not later than 6 
                        months after date of the enactment of this 
                        paragraph, the Bureau shall issue model forms 
                        for the notices described in subparagraphs (A) 
                        and (B) that a person may use to comply with 
                        the requirements of this paragraph.
                            ``(ii) Use of model notice not required.--
                        No provision of this paragraph may be construed 
                        to require a person to use the model notices 
                        prescribed by the Bureau.
                            ``(iii) Compliance using model notices.--A 
                        person shall be deemed to be in compliance with 
                        the requirements of subparagraph (A)(ii) or 
                        (B)(ii) (as applicable) if the person uses the 
                        model notice prescribed by the Bureau.
                    ``(F) Issuance of general negative warning notice 
                without submitting negative information.--No provision 
                of this paragraph may be construed to require a person 
                described in subparagraph (A) or (D) to furnish 
                negative information about a consumer to a consumer 
                reporting agency described in subsection (p) or (x) of 
                section 603.
                    ``(G) Safe harbor.--A person shall not be liable 
                for failure to perform the duties required by this 
                paragraph if the person reasonably believes that the 
                person is prohibited, by law, from contacting the 
                consumer.
                    ``(H) Effective date.--The requirements of 
                subparagraphs (A), (B), (C), and (D) shall not take 
                effect until the date that is 6 months after the date 
                of the issuance of model forms for notices under 
                subparagraph (E).
                    ``(I) Definitions.--In this paragraph, the 
                following definitions shall apply:
                            ``(i) Negative information.--The term 
                        `negative information' means information 
                        concerning a consumer's delinquencies, late 
                        payments, insolvency, or any form of default.
                            ``(ii) Non-traditional data.--The term 
                        `non-traditional data' relates to 
                        telecommunications payments, utility payments, 
                        rent payments, remittances, wire transfers, and 
                        such other items as determined by the 
                        Bureau.''.
    (c) Duties of Furnishers After Receiving Notice of Dispute From a 
Consumer.--Section 623(a)(8)(E) of the Fair Credit Reporting Act (15 
U.S.C. 1681s-2(a)(8)(E)) is amended to read as follows:
                    ``(E) Duties of furnishers after receiving notice 
                of dispute from a consumer.--After receiving a notice 
                of dispute from a consumer pursuant to subparagraph 
                (D), the person that provided the information in 
                dispute to a consumer reporting agency shall--
                            ``(i) promptly provide to each consumer 
                        reporting agency to which the person furnished 
                        the disputed information the notice of dispute;
                            ``(ii) review all information, including 
                        any substantiating documents, provided by the 
                        consumer about the disputed information and 
                        conduct an investigation, separate from any 
                        reinvestigation by a consumer reporting agency 
                        or a reseller conducted with respect to the 
                        disputed information;
                            ``(iii) 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, 
                        complete an investigation of the disputed 
                        information pursuant to the standards described 
                        in subparagraph (G);
                            ``(iv) notify the consumer, in writing, of 
                        the receipt of the dispute that includes--
                                    ``(I) a statement about any 
                                information additional to the 
                                information that the person is required 
                                to maintain under subsection (f) that 
                                would support the person's ability to 
                                carry out an investigation to resolve 
                                the consumer's dispute; and
                                    ``(II) a statement that the 
                                consumer reporting agency to which the 
                                disputed information was provided will 
                                include a notation described in section 
                                605(e) in the consumer's file until the 
                                investigation has been completed, and 
                                information about how a consumer may 
                                request that such notation is removed 
                                by the agency;
                            ``(v) if the investigation determines the 
                        disputed information is inaccurate, incomplete, 
                        or unverifiable, promptly notify each consumer 
                        reporting agency to which the person furnished 
                        such information in accordance with paragraph 
                        (2); and
                            ``(vi) notify the consumer of the results 
                        of the investigation, in writing, in accordance 
                        with subparagraph (H).''.
    (d) Eliminating Furnishers' Authority To Dismiss Disputes as 
Frivolous or Irrelevant.--Section 623(a)(8) of such Act (15 U.S.C. 
1681s-2(a)(8)) is amended by striking subparagraph (F) and 
redesignating subparagraph (G) as subparagraph (F).
    (e) Additional Duties.--Section 623(a)(8) of such Act (15 U.S.C. 
1681s-2(a)(8)) is further amended by adding at the end the following 
new subparagraphs:
                    ``(G) Reasonable standards for furnishers for 
                conducting investigations and resolving disputes 
                submitted by consumers.--In any investigation conducted 
                by a person who furnishes information to a consumer 
                reporting agency of an item of information being 
                disputed by a consumer, the person, at a minimum--
                            ``(i) shall maintain sufficient resources 
                        and trained staff, commensurate with the volume 
                        and complexity of disputes received or 
                        reasonably anticipated to be received, to 
                        conduct investigations;
                            ``(ii) shall verify that the person has a 
                        record of the particular information being 
                        disputed, consistent with the requirements of 
                        subsection (f);
                            ``(iii) shall verify that the personally 
                        identifiable information of the consumer 
                        submitting the dispute matches the personally 
                        identifiable information contained on such 
                        records;
                            ``(iv) shall conduct a reasonable review to 
                        determine whether the disputed information is 
                        accurate, complete, and can be verified that 
                        considers all the information, including any 
                        substantiating documents, provided by the 
                        consumer about the disputed information;
                            ``(v) shall ensure that the investigation 
                        is an independent analysis that is separate 
                        from any reinvestigation by a consumer 
                        reporting agency or a reseller conducted with 
                        respect to the disputed information; and
                            ``(vi) may not impose any limitations or 
                        otherwise impede the ability of a consumer to 
                        submit information, including any 
                        substantiating documents, about the disputed 
                        information.
                    ``(H) Contents of the notice to the consumer about 
                the results of the investigation by the furnisher.--The 
                notice of the results of the investigation described in 
                subparagraph (E) shall include--
                            ``(i) a statement informing the consumer as 
                        to whether the disputed information was 
                        determined to be inaccurate, incomplete, or 
                        unverifiable;
                            ``(ii) a statement of the specific reasons 
                        supporting the results of the investigation;
                            ``(iii) a description of the procedure used 
                        by the dispute resolution staff of the person 
                        who furnishes information to a consumer 
                        reporting agency to determine the accuracy or 
                        completeness of the information, including the 
                        business name, mailing address, telephone 
                        number, and Internet website address (if 
                        available) of any person who was contacted by 
                        the staff in connection with the determination;
                            ``(iv) a copy of all information relating 
                        to the consumer that was used in carrying out 
                        the investigation and was the basis for any 
                        determination about the accuracy or 
                        completeness of the disputed information;
                            ``(v) a statement that consumer will 
                        receive, free of charge, a copy of their 
                        consumer report and credit score or educational 
                        credit score (if applicable), from any consumer 
                        reporting agency to which the disputed 
                        information had been provided, regardless of 
                        whether the consumer obtained or will obtain a 
                        free consumer report and credit score or 
                        educational credit score (if applicable) in the 
                        12-month period preceding receipt of the notice 
                        described in this subparagraph pursuant to 
                        section 612(a)(1);
                            ``(vi) if the disputed information was 
                        found to be inaccurate, incomplete, or 
                        unverifiable, a statement that the consumer 
                        report of the consumer shall be revised to 
                        reflect the change to the consumer's file as a 
                        result of the investigation;
                            ``(vii) a statement that the consumer has 
                        the right to appeal the results of the 
                        investigation under paragraph (10), free of 
                        charge, within 120 days after the date of the 
                        notice of the results of the investigation was 
                        provided to the consumer and the process for 
                        submitting an appeal;
                            ``(viii) a statement that the consumer may 
                        add a narrative statement, free of charge, to 
                        the consumer's file held by the consumer 
                        reporting agency to which the information has 
                        been furnished disputing the accuracy or 
                        completeness of the information, regardless of 
                        the results of the investigation by the person, 
                        and the process for contacting any agency that 
                        received the consumer's information from the 
                        person to submit a narrative statement;
                            ``(ix) a statement informing the consumer 
                        that a notation described in section 605(e) 
                        will be added to the consumer's file during the 
                        period in which the consumer appeals the 
                        results of an investigation and that such 
                        notation can be removed at the request of the 
                        consumer; and
                            ``(x) a statement that the consumer has the 
                        right to request a copy of their consumer 
                        report and credit score or educational credit 
                        score (if applicable), free of charge, within 
                        the 12-month period following the date of the 
                        conclusion of the investigation from any 
                        consumer reporting agency in which the disputed 
                        information had been provided, regardless of 
                        whether the consumer obtained or will obtain a 
                        free annual consumer report and credit score or 
                        educational credit score (if applicable) under 
                        this subparagraph or section 612(a)(1).''.
    (f) Conforming Amendment.--Section 615(a)(4)(B) is amended--
            (1) by striking ``, under section 611, with a consumer 
        reporting agency''; and
            (2) by striking ``furnished by the agency'' and inserting 
        ``to a consumer reporting agency under section 611 or to a 
        person who furnished information to an agency under section 
        623''.

SEC. 105. ENHANCES ACCURACY AND COMPLETENESS DUTIES FOR CONSUMER 
              REPORTING AGENCIES AND FURNISHERS.

    (a) Appeals of Reinvestigations Conducted by a Consumer Reporting 
Agency.--Section 611 of the Fair Credit Reporting Act (15 U.S.C. 1681i) 
is amended--
            (1) in subsection (b), by inserting ``or if the consumer is 
        unsatisfied with the results of an appeal conducted under 
        subsection (h),'' after ``resolve the dispute,''; and
            (2) by inserting after subsection (g) (as added by section 
        102) the following new subsection:
    ``(h) Consumer Right to Appeal Results of a Consumer Reporting 
Agency Reinvestigation.--
            ``(1) In general.--Within 120 days after the date of 
        receipt of the results of a reinvestigation conducted under 
        subsection (a), a consumer (or authorized third party) may, 
        free of charge, appeal the results of such reinvestigation by 
        submitting a notice of appeal to the consumer reporting agency.
            ``(2) Notice of appeal.--
                    ``(A) Requirements.--A notice of appeal described 
                in paragraph (1) may be submitted in writing, or 
                through a toll-free telephone number or other 
                electronic means established by the consumer reporting 
                agency (including on the Internet website described in 
                subsection (g)), and--
                            ``(i) shall identify the information 
                        contained in the consumer's file that is the 
                        subject of the appeal;
                            ``(ii) shall describe the specific reasons 
                        for submitting the notice of appeal; and
                            ``(iii) may provide any information the 
                        consumer believes is relevant to substantiate 
                        the validity of the dispute.
                    ``(B) Consumer reporting agency notice to 
                consumer.--Upon receipt of such notice of appeal, the 
                consumer reporting agency shall promptly provide to the 
                consumer a statement confirming the receipt of the 
                consumer's notice of appeal that shall include--
                            ``(i) an approximate date on which the 
                        consumer's appeal review will be completed;
                            ``(ii) the process and procedures by which 
                        such review will be conducted; and
                            ``(iii) an employee reference number or 
                        other employee identifier for each of the 
                        specific individuals designated by the consumer 
                        reporting agency who, upon the request of the 
                        consumer, may discuss the substance and status 
                        of the appeal.
            ``(3) Consumer reporting agency requirements upon receipt 
        of notice of appeal.--
                    ``(A) In general.--Not later than 20 days after 
                receiving a notice of appeal, the consumer reporting 
                agency shall review the appeal. If the consumer 
                reporting agency determines the information is 
                inaccurate, incomplete, or cannot be verified, the 
                consumer reporting agency shall delete or modify the 
                item of information being disputed by the consumer from 
                the file of the consumer before the end of the 20-day 
                period beginning on the date on which the consumer 
                reporting agency receives a notice of an appeal from 
                the consumer.
                    ``(B) Notice of appeal to furnisher; information 
                regarding dispute provided by the consumer.--
                            ``(i) In general.--Before the end of the 
                        period of 3 business days beginning on the date 
                        on which a consumer reporting agency receives a 
                        notice of appeal, the consumer reporting agency 
                        shall provide notice of the appeal, including 
                        all information relating to the specific appeal 
                        that the consumer reporting agency has received 
                        from the consumer, to any person who provided 
                        any information in dispute.
                            ``(ii) Provision of additional information 
                        regarding the dispute.--If the consumer 
                        reporting agency receives additional 
                        information from the consumer after the agency 
                        provides the notice required under clause (i) 
                        and before the end of the 20-day period 
                        described in subparagraph (A), the consumer 
                        reporting agency shall, not later than 3 
                        business days after receiving such information, 
                        provide such information to any person who 
                        provided the information in dispute and shall 
                        have an additional 10 business days to complete 
                        the appeal review.
                    ``(C) Minimum standards for appeals employees.--
                            ``(i) Designation.--Upon receipt of a 
                        notice of appeal under paragraph (1), a 
                        consumer reporting agency shall designate one 
                        or more specific employees who--
                                    ``(I) shall be assigned an employee 
                                reference number or other employee 
                                identifier that can be used by the 
                                consumer to discuss the appeal with the 
                                specific individuals handling the 
                                appeal;
                                    ``(II) shall have direct authority 
                                to resolve the dispute that is the 
                                subject of the notice of appeal from 
                                the review stage to its completion;
                                    ``(III) shall meet minimum training 
                                and ongoing certification requirements 
                                at regular intervals, as established by 
                                the Bureau;
                                    ``(IV) shall be located within the 
                                United States;
                                    ``(V) may not have been involved in 
                                the reinvestigation conducted or 
                                terminated pursuant to subsection (a); 
                                and
                                    ``(VI) may not be subject to any 
                                requirements linking incentives, 
                                including promotion, to the number of 
                                appeals processed within a certain time 
                                period.
                            ``(ii) Requirements.--Such employees shall 
                        conduct a robust review of the appeal and make 
                        a determination regarding the accuracy and 
                        completeness of the disputed information by--
                                    ``(I) conducting an independent 
                                analysis, separate from any 
                                investigation by a reseller or person 
                                who provided the disputed information, 
                                and separate from any prior 
                                reinvestigation conducted by the 
                                consumer reporting agency of the 
                                disputed information;
                                    ``(II) verifying that the 
                                personally identifiable information of 
                                the consumer submitting the dispute 
                                matches the personally identifiable 
                                information contained on the consumer's 
                                file;
                                    ``(III) analyzing the notice of 
                                appeal and all information, including 
                                any substantiating documents, provided 
                                by the consumer with the notice of 
                                appeal;
                                    ``(IV) evaluating the validity of 
                                any information submitted by any person 
                                that was used by the consumer reporting 
                                agency in the reinvestigation of the 
                                initial dispute;
                                    ``(V) verifying that the consumer 
                                reporting agency has a record of the 
                                information being disputed; and
                                    ``(VI) applying any additional 
                                factors or investigative processes, as 
                                specified by the Bureau.
                    ``(D) Notice of appeal results.--Not later than 5 
                days after the end of the 20-day period described under 
                subparagraph (A) (or the 10-day extension period, as 
                applicable) the consumer reporting agency shall provide 
                the consumer with written notice of the results of the 
                appeal by postal mail or, if requested by the consumer, 
                by other means. The contents of such notice shall 
                include--
                            ``(i) a statement that the appeal is 
                        completed and the date on which it was 
                        completed, the results of the appeal, and the 
                        specific reasons supporting the results of the 
                        appeal;
                            ``(ii) a copy of all information relating 
                        to the consumer that was used as a basis for 
                        deciding the results of the appeal;
                            ``(iii) a consumer report that is based 
                        upon the consumer's file as that file may have 
                        been revised as a result of the appeal;
                            ``(iv) a description of the procedure used 
                        to determine the accuracy and completeness of 
                        the information, including the business name, 
                        telephone number, mailing address, and Internet 
                        website address (if applicable) of any person 
                        who provided information that was contacted in 
                        connection with such information, if reasonably 
                        available;
                            ``(v) information describing that the 
                        consumer may submit a statement, without 
                        charge, disputing the accuracy or completeness 
                        of information in the consumer's file that was 
                        the subject of an appeal under this subsection 
                        by submitting a statement directly to each 
                        consumer reporting agency that received the 
                        information;
                            ``(vi) a description of the consumer's 
                        rights pursuant to subsection (d) (relating to 
                        furnishing notifications to certain users of 
                        consumer reports); and
                            ``(vii) any other information, as 
                        determined by the Bureau.
                    ``(E) No excuse for failure to conduct appeal.--A 
                consumer reporting agency may not refuse to conduct a 
                review of an appeal under this subsection because the 
                agency determines that the notice of appeal was 
                submitted by an authorized third party, unless the 
                agency has clear and convincing evidence that the third 
                party is not authorized to submit the notice of appeal 
                on the consumer's behalf. If the consumer reporting 
                agency refuses to conduct a review of the appeal for 
                these reasons, it shall provide a clear and conspicuous 
                written notice to the consumer explaining the reasons 
                for the refusal and describing any information the 
                consumer is required to provide for the agency to 
                conduct a review of the appeal.''.
    (b) Appeals of Investigations Conducted by Furnishers of 
Information.--Section 623(a) of the Fair Credit Reporting Act (15 
U.S.C. 1681s-2(a)) is amended by adding at the end the following new 
paragraph:
            ``(10) Duty of furnishers of information upon notice of 
        appeal of investigation.--
                    ``(A) In general.--Within 120 days of the date of 
                receipt of the results of an investigation conducted 
                under paragraph (8)(E), a consumer may, free of charge, 
                appeal such results by submitting a notice of appeal to 
                the person who provided the information in the dispute 
                to a consumer reporting agency (hereafter in this 
                paragraph referred to as the `furnisher').
                    ``(B) Notice of appeal.--A notice of appeal 
                described in subparagraph (A) may be submitted in 
                writing, through a toll-free telephone number, or by 
                other electronic means established by the furnisher, 
                and--
                            ``(i) shall identify the information 
                        contained in the consumer's file that is the 
                        subject of the appeal;
                            ``(ii) shall describe the specific reasons 
                        for submitting the notice of appeal; and
                            ``(iii) may include any information, 
                        including substantiating documents, the 
                        consumer believes is relevant to the appeal.
                    ``(C) Furnisher actions.--Upon receipt of such 
                notice of appeal, the furnisher shall--
                            ``(i) before the end of the period of 3 
                        business days beginning on the date on which 
                        the furnisher receives the notice of appeal, 
                        notify each consumer reporting agency to which 
                        the person furnished such information a 
                        statement identifying the items of information 
                        that a consumer is appealing; and
                            ``(ii) notify the consumer confirming the 
                        receipt of the consumer's notice of appeal, 
                        including an approximate date when the 
                        consumer's appeal will be completed, the 
                        process and procedures by which a review of the 
                        appeal will be conducted, and the specific 
                        individual designated by the consumer reporting 
                        agency who, upon the request of the consumer, 
                        may discuss the substance and status of the 
                        appeal.
                    ``(D) Furnisher requirements upon receipt of notice 
                of appeal.--Not later than 20 days after receiving a 
                notice of appeal, the furnisher shall determine whether 
                the item of information being disputed by the consumer 
                is inaccurate, incomplete, or cannot be verified, and 
                shall notify the consumer reporting agency of the 
                determination. If the furnisher cannot verify the 
                accuracy or completeness of the disputed information, 
                the furnisher shall, before the end of the 20-day 
                period beginning on the date on which the furnisher 
                receives notice of an appeal from the consumer, submit 
                instructions to the consumer reporting agency that the 
                item of information being disputed by the consumer 
                should be deleted from the file of the consumer.
                    ``(E) Minimum standards for appeals employees.--
                Upon receipt of a notice of appeal under subparagraph 
                (A), a furnisher shall designate one or more specific 
                employees who--
                            ``(i) shall be assigned an employee 
                        reference number or other employee identifier 
                        that can be used by the consumer to discuss the 
                        appeal with the specific individuals handling 
                        the appeal;
                            ``(ii) shall have direct authority to 
                        resolve the dispute that is the subject of the 
                        notice of appeal on behalf of the furnisher 
                        from the review stage to its completion;
                            ``(iii) shall meet minimum training and 
                        ongoing certification requirements at regular 
                        intervals, as established by the Bureau;
                            ``(iv) may not have been involved in an 
                        investigation conducted pursuant to paragraph 
                        (8); and
                            ``(v) may not be subject to any 
                        requirements linking incentives, including 
                        promotion, to the number of appeals processed 
                        within a certain time period.
                    ``(F) Requirements for appeals process.--Such 
                employees shall conduct a robust review of the appeal 
                and make a determination regarding the accuracy and 
                completeness of the disputed information by--
                            ``(i) conducting an independent analysis, 
                        separate from any reinvestigation by a reseller 
                        or consumer reporting agency, of the disputed 
                        information;
                            ``(ii) verifying that the personally 
                        identifiable information related to the dispute 
                        is accurate and complete;
                            ``(iii) analyzing the notice of appeal and 
                        all information, including substantiating 
                        documents, provided by the consumer with the 
                        notice of appeal;
                            ``(iv) evaluating the validity of any 
                        information submitted by any person that was 
                        used by the furnisher in the initial 
                        investigation into the dispute;
                            ``(v) verifying that the information being 
                        disputed relates to the consumer in whose file 
                        the information is located;
                            ``(vi) verifying that the furnisher has a 
                        record of the information being disputed; and
                            ``(vii) applying any additional factors or 
                        investigative processes, as specified by the 
                        Bureau.
                    ``(G) Extension of review period.--If a consumer 
                submits additional information related to the appeal 
                after the period of 3 business days described in 
                subparagraph (C)(i) and before the end of the 20-day 
                period described in subparagraph (D), the furnisher 
                shall have an additional 10 business days to complete 
                the review of the appeal.
                    ``(H) Notice of appeal results.--Not later than 5 
                days after the end of the 20-day period described in 
                subparagraph (D) (or the 10 business day extension 
                described under subparagraph (G), as applicable) the 
                furnisher shall provide the consumer with written 
                notice of the results of the appeal by mail or, if 
                requested by the consumer, by other means. The contents 
                of such notice shall include--
                            ``(i) a statement that the appeal is 
                        completed and the date on which it was 
                        completed, the results of the appeal, and the 
                        specific reasons supporting the results of the 
                        appeal;
                            ``(ii) a copy of all information relating 
                        to the consumer that was used as a basis for 
                        deciding the results of the appeal;
                            ``(iii) if the appeal results in any change 
                        to the consumer report, a notification that the 
                        consumer shall receive a copy, free of charge, 
                        of a revised consumer report (based upon the 
                        consumer's file as that file was changed as a 
                        result of the appeal) and a credit score or 
                        educational credit score (if applicable) from 
                        each consumer reporting agency that had been 
                        furnished incorrect information;
                            ``(iv) a description of the procedure used 
                        to determine the accuracy and completeness of 
                        the information, including the business name, 
                        telephone number, mailing address, and Internet 
                        website address (if applicable), of any person 
                        who provided information that was contacted in 
                        connection with such information, if reasonably 
                        available;
                            ``(v) information describing that the 
                        consumer may submit a statement, without 
                        charge, disputing the accuracy or completeness 
                        of information in the consumer's file that was 
                        the subject of an appeal under this paragraph 
                        by submitting a statement directly to each 
                        consumer reporting agency that received the 
                        information; and
                            ``(vi) a notification that the consumer may 
                        request the furnisher to submit to each 
                        consumer reporting agency the consumer's 
                        request to furnish notifications pursuant to 
                        section 611(d) (relating to furnishing 
                        notifications to certain users of consumer 
                        reports).''.
    (c) Technical Amendment.--Section 623(a)(8)(A) of the Fair Credit 
Reporting Act (15 U.S.C. 1681s-2(a)(8)(A)) is amended by striking 
``reinvestigate'' and inserting ``investigate''.
    (d) Conforming Amendments.--Section 609 of the Fair Credit 
Reporting Act (15 U.S.C. 1681g) is amended--
            (1) in subsection (c)--
                    (A) by striking ``Commission'' and inserting 
                ``Bureau'' each place that term appears;
                    (B) in the subsection heading, by striking ``Rights 
                To Obtain and Dispute Information in Consumer Reports 
                and To Obtain Credit Scores'' and inserting ``Key 
                Consumer Reporting Rights''; and
                    (C) in paragraph (1)--
                            (i) in the heading, by striking 
                        ``Commission'' and inserting ``Bureau'';
                            (ii) in subparagraph (B)--
                                    (I) in clause (ii), by striking ``a 
                                consumer report without charge under 
                                section 612'' and inserting ``consumer 
                                reports and credit scores or 
                                educational credit scores (as 
                                applicable) without charge under 
                                subsections (f), (g), (i), or (j) or 
                                section 612'';
                                    (II) in clause (iii), by inserting 
                                ``or section 623'' after ``section 
                                611'';
                                    (III) by striking clauses (iv) and 
                                (vi);
                                    (IV) in clause (v), by striking 
                                ``and'' at the end;
                                    (V) by inserting after clause (iii) 
                                the following new clause:
                            ``(iv) the right of a consumer to appeal a 
                        determination of a reinvestigation conducted by 
                        a consumer reporting agency under section 
                        611(h) or an investigation conducted by a 
                        furnisher of information under section 
                        623(a)(10);''; and
                                    (VI) by adding at the end the 
                                following new clauses:
                            ``(vi) the method and circumstances under 
                        which certain consumers can participate in 
                        credit rehabilitation or restoration under 
                        section 605C, 605D, or 605E; and
                            ``(vii) the method and circumstances under 
                        which consumers can obtain a 1-year fraud 
                        alert, 7-year fraud alert, active duty alert, 
                        or credit freeze as described in section 605A 
                        through a consumer reporting agency described 
                        under section 603(p).'';
                            (iii) in subparagraph (C), by inserting 
                        ``and the Commission'' after ``Bureau''; and
                            (iv) by adding at the end the following new 
                        subparagraph:
                    ``(D) Publication of summary rights.--A consumer 
                reporting agency described under subsection (p) or (x) 
                of section 603 shall display in a clear and conspicuous 
                manner, including on the Internet website of the 
                consumer reporting agency, the summary of rights 
                prepared by the Bureau under this paragraph.''; and
            (2) in subsection (d), by inserting ``Bureau and the'' 
        before ``Commission''.

SEC. 106. REQUIRES FURNISHERS TO MAINTAIN RECORDS NECESSARY TO VERIFY 
              ACCURACY OF DISPUTES.

    Section 611 of the Fair Credit Reporting Act (15 U.S.C. 1681i), as 
amended by section 105(a)(2), is further amended by adding at the end 
the following new subsection:
    ``(i) Requirement To Send Revised Consumer Report to Consumer.--
Upon receiving a notice described in section 623(a)(8)(E)(iv), each 
consumer reporting agency shall send to the consumer a revised consumer 
report and credit score or education credit score (if applicable) based 
upon the consumer's file as that file was changed as a result of the 
investigation.''.

SEC. 107. ESTABLISHES NEW REQUIREMENTS ON CONSUMER REPORTING AGENCIES 
              WHEN NOTIFIED OF INACCURATE OR INCOMPLETE INFORMATION 
              FROM FURNISHERS.

    Section 605(e) of the Fair Credit Reporting Act (15 U.S.C. 1681c) 
(as so redesignated by section 401(a)(2)) is amended to read as 
follows:
    ``(e) Indication of Dispute.--
            ``(1) In general.--A consumer reporting agency shall 
        include in any consumer report based on the consumer's file a 
        notation identifying any item of information that is currently 
        in dispute by the consumer if--
                    ``(A) a consumer disputes the completeness or 
                accuracy of any item of information contained in a 
                consumer's file pursuant to section 611(a)(1);
                    ``(B) a consumer files with a consumer reporting 
                agency an appeal of a reinvestigation pursuant to 
                section 611(h); or
                    ``(C) the consumer reporting agency is notified by 
                a person that furnished any items of information that 
                are currently in dispute by the consumer that--
                            ``(i) a consumer disputes the completeness 
                        or accuracy of any information furnished by a 
                        person to any consumer reporting agency 
                        pursuant to paragraph (3) or (8) of section 
                        623(a); or
                            ``(ii) a consumer submits a notice of 
                        appeal under section 623(a)(10).
            ``(2) Opt out.--A consumer may submit a request to a 
        consumer reporting agency or a person who furnished the 
        information in dispute, as applicable, to have the notation 
        described in paragraph (1) omitted from the consumer report. 
        Upon receipt of such a request--
                    ``(A) by a consumer reporting agency, such agency 
                shall remove the notation within 1 business day; and
                    ``(B) by a person who furnished the information in 
                dispute, such person shall submit such request to each 
                consumer reporting agency to which the person furnished 
                such information within 1 business day and such agency 
                shall remove the notation within 1 business day of 
                receipt of such request.''.

SEC. 108. INDICATION OF DISPUTE BY CONSUMERS AND USE OF DISPUTED 
              INFORMATION.

    Section 607(b) of the Fair Credit Reporting Act (15 U.S.C. 1681e) 
is amended to read as follows:
    ``(b) Accuracy and Completeness of Report.--
            ``(1) In general.--In preparing a consumer report, a 
        consumer reporting agency shall maintain reasonable procedures 
        to ensure maximum possible accuracy and completeness of the 
        information concerning the individual to whom the consumer 
        report relates.
            ``(2) Bureau rule to assure maximum possible accuracy and 
        completeness with credit reporting practices.--
                    ``(A) Rule.--Not later than 18 months after the 
                date of enactment of this subsection, the Bureau shall 
                issue a final rule establishing the procedures 
                described in paragraph (1).
                    ``(B) Requirements.--In formulating the rule 
                required under subparagraph (A), the Bureau shall--
                            ``(i) develop standards for matching the 
                        personally identifiable information included in 
                        the consumer's file with the personally 
                        identifiable information furnished by the 
                        person who provided the information to the 
                        consumer reporting agency (hereafter in this 
                        subsection referred to as the `furnisher'), 
                        including the full name of a consumer, the date 
                        of birth of a consumer, the full social 
                        security number of a consumer, and any other 
                        information that the Bureau determines would 
                        aid in assuring maximum possible accuracy and 
                        completeness of such consumer reports;
                            ``(ii) establish processes for a consumer 
                        reporting agency to monitor the integrity of 
                        the data provided by furnishers and the 
                        compliance of furnishers with the requirements 
                        of this title;
                            ``(iii) establish processes for a consumer 
                        reporting agency to regularly reconcile data 
                        relating to accounts in collection, including 
                        those that have not been paid in full, by 
                        specifying the circumstances under which the 
                        consumer reporting agency shall remove or 
                        suppress negative or adverse information from a 
                        consumer's file that has not been updated by a 
                        furnisher who is also a debt collector (as 
                        defined in section 803 of the Fair Debt 
                        Collection Practices Act) within the time 
                        period established by the Bureau;
                            ``(iv) establish procedures to require each 
                        consumer reporting agency to review and monitor 
                        the quality of information received from any 
                        source, including information from public 
                        records, by regularly and on an ongoing basis 
                        comparing the information received to the 
                        information available from the original source 
                        and ensuring that the information received is 
                        the most current information;
                            ``(v) develop standards and procedures for 
                        consumer reporting agencies to identify 
                        furnishers that repeatedly fail to provide 
                        accurate and complete information, to take 
                        corrective action against such furnishers, and 
                        to reject information submitted by such 
                        furnishers;
                            ``(vi) develop standards and procedures for 
                        consumer reporting agencies to adopt regarding 
                        collection of public record data, including 
                        standards and procedures to consider the 
                        ultimate data source, how the public record 
                        information is filed and its availability and 
                        accessibility, and whether information relating 
                        to the satisfaction of judgments or other 
                        updates to the public record are available on a 
                        reasonably timely basis from a particular 
                        source; and
                            ``(vii) establish any other factors, 
                        procedures, or processes determined by the 
                        Bureau to be necessary to assist consumer 
                        reporting agencies in achieving maximum 
                        possible accuracy and completeness of the 
                        information in consumer reports.
            ``(3) Corrective action for furnishers that repeatedly 
        furnish inaccurate or incomplete information.--Upon identifying 
        a furnisher that repeatedly fails to furnish accurate, 
        complete, or verifiable information to consumer reporting 
        agencies, the Bureau shall--
                    ``(A) ensure the prompt removal of any adverse 
                information relating to a consumer's accounts submitted 
                by such furnisher; and
                    ``(B) take corrective action, which may include--
                            ``(i) mandatory revised training and 
                        training materials for the staff of the 
                        furnisher regarding the furnishing of accurate 
                        and complete information;
                            ``(ii) sharing industry best practices and 
                        procedures regarding accuracy and completeness; 
                        or
                            ``(iii) temporarily prohibiting a furnisher 
                        from providing information to a consumer 
                        reporting agency.''.

SEC. 109. INCLUSION OF PUBLIC RECORD DATA SOURCES IN CONSUMER REPORTS.

    Section 605(d) of the Fair Credit Reporting Act (15 U.S.C. 
1681c(d)) is amended by adding at the end the following:
            ``(3) Public record data source.--Any consumer reporting 
        agency that furnishes a consumer report that contains public 
        record data shall also include in such report the source from 
        which that data was obtained, including the particular court, 
        if any, and the date that the data was initially reported or 
        publicized.''.

SEC. 110. INJUNCTIVE RELIEF FOR VICTIMS.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.) is amended--
            (1) in section 616--
                    (A) in subsection (a), by amending the subsection 
                heading to read as follows: ``Damages'';
                    (B) by redesignating subsections (c) and (d) as 
                subsections (d) and (e), respectively; and
                    (C) by inserting after subsection (b) the following 
                new subsection:
    ``(c) Injunctive Relief.--In addition to any other remedy set forth 
in this section, a court may award injunctive relief to require 
compliance with the requirements imposed under this title with respect 
to any consumer. In the event of any successful action for injunctive 
relief under this subsection, the court may award to the prevailing 
party costs and reasonable attorney fees (as determined by the court) 
incurred during the action by such party.''; and
            (2) in section 617--
                    (A) in subsection (a), by amending the subsection 
                heading to read as follows: ``Damages'';
                    (B) by redesignating subsection (b) as subsection 
                (c); and
                    (C) by inserting after subsection (a) the following 
                new subsection:
    ``(b) Injunctive Relief.--In addition to any other remedy set forth 
in this section, a court may award injunctive relief to require 
compliance with the requirements imposed under this title with respect 
to any consumer. In the event of any successful action for injunctive 
relief under this subsection, the court may award to the prevailing 
party costs and reasonable attorney fees (as determined by the court) 
incurred during the action by such party.''.
    (b) Enforcement by Federal Trade Commission.--Section 621(a)(2)(A) 
of the Fair Credit Reporting Act (15 U.S.C. 1681s(a)(2)(A)) is 
amended--
            (1) by amending the subparagraph heading to read as 
        follows: ``Negligent, willful, or knowing violations''; and
            (2) by inserting ``negligent, willful, or'' before 
        ``knowing''.

TITLE II--RESTRICTING THE USE OF CREDIT CHECKS FOR EMPLOYMENT DECISIONS

SEC. 201. BANS THE USE OF CREDIT INFORMATION FOR MOST EMPLOYMENT 
              DECISIONS.

    (a) In General.--Section 604 of the Fair Credit Reporting Act (15 
U.S.C. 1681b) is amended--
            (1) in subsection (a)(3)(B), by inserting ``, subject to 
        the requirements of subsection (b)'' after ``purposes''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by amending the paragraph heading to 
                        read as follows: ``Use of Consumer Reports for 
                        Employment Purposes'';
                            (ii) in subparagraph (A), by redesignating 
                        clauses (i) and (ii) as subclauses (I) and 
                        (II), respectively (and conforming the margins 
                        accordingly);
                            (iii) by redesignating subparagraphs (A) 
                        and (B) as clauses (i) and (ii), respectively 
                        (and conforming the margins accordingly);
                            (iv) by striking the period at the end of 
                        clause (ii) (as so redesignated) and inserting 
                        ``; and'';
                            (v) by striking ``agency may furnish'' and 
                        inserting ``agency--
            ``(A) may furnish''; and
                            (vi) by adding at the end the following new 
                        subparagraph:
                    ``(B) except as provided in paragraph (5), may not 
                furnish a consumer report with respect to any consumer 
                in which any information contained in the report bears 
                on the consumer's creditworthiness, credit standing, or 
                credit capacity.''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(5) Requirements for consumer reports bearing on the 
        consumer's creditworthiness, credit standing, or credit 
        capacity.--
                    ``(A) In general.--A person may use a consumer 
                report with respect to any consumer in which any 
                information contained in the report bears on the 
                consumer's creditworthiness, credit standing, or credit 
                capacity only if--
                            ``(i) either--
                                    ``(I) the person is required to 
                                obtain the report by a Federal, State, 
                                or local law; or
                                    ``(II) the information contained in 
                                the report is being used with respect 
                                to a national security investigation 
                                (as defined in paragraph (4)(D));
                            ``(ii) none of the cost associated with 
                        obtaining the consumer report will be passed on 
                        to the consumer to whom the report relates; and
                            ``(iii) the information contained in the 
                        consumer report will not be disclosed to any 
                        other person other than--
                                    ``(I) in an aggregate format that 
                                protects a consumer's personally 
                                identifiable information; or
                                    ``(II) as may be necessary to 
                                comply with any applicable Federal, 
                                State, or local equal employment 
                                opportunity law or regulation.
                    ``(B) Disclosures.--A person who procures, or 
                causes to be procured, a consumer report described in 
                subparagraph (A) for employment purposes shall, in the 
                disclosure made pursuant to paragraph (2), include--
                            ``(i) an explanation that a consumer report 
                        is being obtained for employment purposes;
                            ``(ii) the reasons for obtaining such a 
                        report; and
                            ``(iii) the citation to the applicable 
                        Federal, State, or local law or regulation 
                        described in subparagraph (A)(i)(I).
                    ``(C) Adverse actions.--In using a consumer report 
                described in subparagraph (A) for employment purposes 
                and before taking an adverse action based in whole or 
                in part on the report, the person intending to take 
                such adverse action shall, in addition to the 
                information described in paragraph (3), provide to the 
                consumer to whom the report relates--
                            ``(i) the name, address, and telephone 
                        number of the consumer reporting agency that 
                        furnished the report (including, for a consumer 
                        reporting agency that compiles and maintains 
                        files on consumers on a nationwide basis, a 
                        toll-free telephone number established by such 
                        agency);
                            ``(ii) the date on which the report was 
                        furnished; and
                            ``(iii) the specific factors from the 
                        report upon which the adverse action (as 
                        defined in section 603(k)(1)(B)(ii)) was based.
                    ``(D) National security investigations.--The 
                requirements of paragraph (4) shall apply to a consumer 
                report described under subparagraph (A).
                    ``(E) Non-circumvention.--With respect to a 
                consumer report in which any information contained in 
                the report bears on the consumer's creditworthiness, 
                credit standing, or credit capacity, if a person is 
                prohibited from using the consumer report pursuant to 
                subparagraph (A), such person may not, directly or 
                indirectly, either orally or in writing, require, 
                request, suggest, or cause any employee or prospective 
                employee to submit such information to the person as a 
                condition of employment.
                    ``(F) Non-waiver.--A consumer may not waive the 
                requirements of this paragraph with respect to a 
                consumer report.
            ``(6) Rule of construction.--Nothing in this subsection 
        shall be construed to require a consumer reporting agency to 
        prevent a Federal, State, or local law enforcement agency from 
        accessing information in a consumer report to which the law 
        enforcement agency could otherwise obtain access.''.
    (b) Technical Amendment.--The Fair Credit Reporting Act (15 U.S.C. 
1681 et seq.) is amended by striking ``section 604(b)(4)(E)(i)'' each 
place such term appears and inserting ``section 604(b)(4)(D)(i)''.

  TITLE III--REHABILITATING THE CREDIT STANDING OF STRUGGLING PRIVATE 
                        EDUCATION LOAN BORROWERS

SEC. 301. REMOVES ADVERSE INFORMATION FOR CERTAIN DEFAULTED OR 
              DELINQUENT PRIVATE EDUCATION LOAN BORROWERS WHO 
              DEMONSTRATE A HISTORY OF LOAN REPAYMENT.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.), as amended by section 405, is further amended by inserting after 
section 605D the following new section:
``Sec. 605E. Credit rehabilitation for private education loan borrowers 
              who demonstrate a history of loan repayment
    ``(a) In General.--A consumer reporting agency may not furnish any 
consumer report containing any adverse item of information relating to 
a delinquent or defaulted private education loan of a borrower if the 
borrower has rehabilitated the borrower's credit with respect to such 
loan by making 9 on-time monthly payments (in accordance with the terms 
and conditions of the borrower's original loan agreement or any other 
repayment agreement that antedates the original agreement) during a 
period of 10 consecutive months on such loan after the date on which 
the delinquency or default occurred.
    ``(b) Interruption of 10-Month Period for Certain Consumers Facing 
Unusual Extenuating Life Events.--
            ``(1) Permissible interruption of the 10-month period.--A 
        borrower may stop making consecutive monthly payments and be 
        granted a grace period after which the 10-month period 
        described in subsection (a) shall resume. Such grace period 
        shall be provided under the following circumstances:
                    ``(A) With respect to a borrower who is a member of 
                the Armed Forces entitled to incentive pay for the 
                performance of hazardous duty under section 301 of 
                title 37, United States Code, hazardous duty pay under 
                section 351 of such title, or other assignment or 
                special duty pay under section 352 of such title, the 
                grace period shall begin on the date on which the 
                borrower begins such assignment or duty and end on the 
                date that is 6 months after the completion of such 
                assignment or duty.
                    ``(B) With respect to a borrower who resides in an 
                area affected by a major disaster or emergency declared 
                under the Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 5121 et seq.), the 
                grace period shall begin on the date on which the major 
                disaster or emergency was declared and end on the date 
                that is 3 months after such date.
            ``(2) Other circumstances.--
                    ``(A) In general.--The Bureau may allow a borrower 
                demonstrating hardship to stop making consecutive 
                monthly payments and be granted a grace period after 
                which the 10-month period described in subsection (a) 
                shall resume.
                    ``(B) Borrower demonstrating hardship defined.--In 
                this paragraph, the term `borrower demonstrating 
                hardship' means a borrower or a class of borrowers who, 
                as determined by the Bureau, is facing or has 
                experienced unusual extenuating life circumstances or 
                events that result in severe financial or personal 
                barriers such that the borrower or class or borrowers 
                does not have the capacity to comply with the 
                requirements of subsection (a).
    ``(c) Procedures.--The Bureau shall establish procedures to 
implement the credit rehabilitation described in this section, 
including--
            ``(1) the manner, content, and form for requesting credit 
        rehabilitation;
            ``(2) the method for validating that the borrower is 
        satisfying the requirements of subsection (a);
            ``(3) the manner, content, and form for notifying the 
        private educational loan holder of--
                    ``(A) the borrower's participation in credit 
                rehabilitation under subsection (a);
                    ``(B) the requirements of subsection (d); and
                    ``(C) the restrictions of subsection (f);
            ``(4) the manner, content, and form for notifying a 
        consumer reporting agency of--
                    ``(A) the borrower's participation in credit 
                rehabilitation under subsection (a); and
                    ``(B) the requirements of subsection (d);
            ``(5) the method for verifying whether a borrower qualifies 
        for the grace period described in subsection (b);
            ``(6) the manner, content, and form of notifying a consumer 
        reporting agency and private educational loan holder that a 
        borrower was granted a grace period; and
            ``(7) the method for a borrower to demonstrate that the 
        borrower has successfully satisfied the requirements under 
        subsection (a) and for notifying a consumer reporting agency 
        and private educational loan holder.
    ``(d) Standardized Reporting Codes.--A consumer reporting agency 
shall develop standardized reporting codes for use by any private 
educational loan holder to identify and report a borrower's status of 
making and completing 9 on-time monthly payments during a period of 10 
consecutive months on a delinquent or defaulted private education loan, 
including codes specifying the grace period described in subsection (b) 
and any agreement to modify monthly payments. Such codes shall not 
appear on any report provided to a third party, and shall be removed 
from the consumer's credit report upon the consumer's completion of the 
rehabilitation period under this section.
    ``(e) Eliminating Barriers to Credit Rehabilitation.--A consumer 
report in which a private educational loan holder furnishes the 
standardized reporting codes described in subsection (d) to a consumer 
reporting agency, or in which a consumer reporting agency includes such 
codes, shall be deemed to comply with the requirements for accuracy and 
completeness required under sections 623(a)(1) and 630.
    ``(f) Prohibition on Civil Actions for Consumers Pursuing 
Rehabilitation.--A private educational loan holder may not commence or 
proceed with any civil action against a borrower with respect to a 
delinquent or defaulted loan during the period of rehabilitation if the 
loan holder has been notified--
            ``(1) under subsection (c)(3) of a borrower's intent to 
        participate in rehabilitation;
            ``(2) under subsection (c)(6) that a borrower was granted 
        the grace period; or
            ``(3) under subsection (c)(7) that the borrower has 
        successfully satisfied the requirements under subsection (a).
    ``(g) Rules of Construction.--
            ``(1) Application to subsequent default or delinquency.--A 
        borrower who satisfies the requirements under subsection (a) 
        shall be eligible for additional credit rehabilitation 
        described in subsection (a) with respect to any subsequent 
        default or delinquency of the borrower on the rehabilitated 
        private education loan.
            ``(2) Interruption of the consecutive payment period 
        requirement.--The grace period described in subsection 
        (b)(1)(A) shall not apply if any regulation promulgated under 
        section 987 of title 10, United States Code (commonly known as 
        the Military Lending Act) or the Servicemembers Civil Relief 
        Act (50 U.S.C. App. 501 et seq.) allows for a grace period or 
        other interruption of the 10-month period described in 
        subsection (a) and such grace period or other interruption is 
        longer than the period described in subsection (b)(1)(A) or 
        otherwise provides greater protection or benefit to the 
        borrower who is a member of the Armed Forces.''.
    (b) Table of Contents Amendment.--The table of contents of the Fair 
Credit Reporting Act is amended by inserting after the item relating to 
section 605D (as added by section 405) the following new item:

``605E. Credit rehabilitation for distressed private education loan 
                            borrowers who demonstrate a history of loan 
                            repayment.''.

SEC. 302. PRIVATE EDUCATION LOAN DEFINITIONS.

    Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is 
amended by adding at the end the following new subsection:
    ``(z) Private Education Loan Definitions.--The terms `private 
education loan' and `private educational lender' have the meanings 
given such terms, respectively, in section 140(a) of the Truth in 
Lending Act.''.

    TITLE IV--RESTORING THE IMPAIRED CREDIT OF VICTIMS OF PREDATORY 
           ACTIVITIES AND UNFAIR CONSUMER REPORTING PRACTICES

SEC. 401. SHORTENS THE TIME PERIOD THAT MOST ADVERSE CREDIT INFORMATION 
              STAYS ON CONSUMER REPORTS.

    (a) In General.--Section 605 of the Fair Credit Reporting Act (15 
U.S.C. 1681c) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Except as authorized under 
                subsection (b), no'' and inserting ``No'';
                    (B) in paragraph (1), by striking ``10 years'' and 
                inserting ``7 years'';
                    (C) in paragraph (2), by striking ``Civil suits, 
                civil judgments, and records'' and inserting 
                ``Records'';
                    (D) in paragraph (3), by striking ``seven years'' 
                and inserting ``4 years'';
                    (E) in paragraph (4), by striking ``seven years'' 
                and inserting ``4 years, except as provided in 
                paragraph (8), (10), (11), (12), or (13), or as 
                required by section 605C, 605D, 605E, or 605F'';
                    (F) in paragraph (5)--
                            (i) by striking ``, other than records of 
                        convictions of crimes''; and
                            (ii) by striking ``seven years'' and 
                        inserting ``4 years, except as required by 
                        section 605C, 605D, 605E, or 605F''; and
                    (G) by adding at the end the following new 
                paragraphs:
            ``(7) Civil suits and civil judgments (except as provided 
        in paragraph (8)) that, from date of entry, antedate the report 
        by more than 4 years or until the governing statute of 
        limitations has expired, whichever is the longer period.
            ``(8) A civil suit or civil judgment--
                    ``(A) brought by a private education loan holder 
                that, from the date of successful completion of credit 
                restoration or rehabilitation in accordance with the 
                requirements of section 605D or 605E, antedates the 
                report by 45 calendar days; or
                    ``(B) brought by a lender with respect to a covered 
                residential mortgage loan that antedates the report by 
                45 calendar days.
            ``(9) Records of convictions of crimes which antedate the 
        report by more than 7 years.
            ``(10) Any other adverse item of information relating to 
        the collection of debt that did not arise from a contract or an 
        agreement to pay by a consumer, including fines, tickets, and 
        other assessments, as determined by the Bureau, excluding tax 
        liability.'';
            (2) by striking subsection (b) and redesignating 
        subsections (c) through (h) as subsections (b) through (g), 
        respectively; and
            (3) in subsection (b) (as so redesignated), by striking 
        ``7-year period referred to in paragraphs (4) and (6)'' and 
        inserting ``4-year period referred to in paragraphs (4) and 
        (5)''.
    (b) Conforming Amendments.--The Fair Credit Reporting Act (15 
U.S.C. 1681) is amended--
            (1) in section 616(d), by striking ``section 605(g)'' each 
        place that term appears and inserting ``section 605(f)''; and
            (2) in section 625(b)(5)(A), by striking ``section 605(g)'' 
        and inserting ``section 605(f)''.

SEC. 402. MANDATES THE EXPEDITED REMOVAL OF FULLY PAID OR SETTLED DEBT 
              FROM CONSUMER REPORTS.

    Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681c(a)), as amended by section 401(a)(1), is further amended by 
adding at the end the following new paragraph:
            ``(11) Any other adverse item of information related to a 
        fully paid or settled debt that had been characterized as 
        delinquent, charged off, or in collection which, from the date 
        of payment or settlement, antedates the report by more than 45 
        calendar days.''.

SEC. 403. IMPOSES RESTRICTIONS ON THE APPEARANCE OF MEDICAL COLLECTIONS 
              ON CONSUMER REPORTS AND REQUIRES THE EXPEDITED REMOVAL OF 
              FULLY PAID OR SETTLED MEDICAL COLLECTIONS FROM CONSUMER 
              REPORTS.

    (a) Removal of Fully Paid or Settled Medical Debt From Consumer 
Reports.--Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681c(a)), as amended by section 402, is further amended by adding at 
the end the following new paragraph:
            ``(12) Any other adverse item of information related to a 
        fully paid or settled debt arising from the receipt of medical 
        services, products, or devices that had been characterized as 
        delinquent, charged off, or in collection which, from the date 
        of payment or settlement, antedates the report by more than 45 
        calendar days.''.
    (b) Establishing an Extended Time Period Before Medical Debt 
Information May Be Reported.--Section 605(a) of such Act is further 
amended by adding at the end the following new paragraph:
            ``(13) Any information related to a debt arising from the 
        receipt of medical services, products, or devices, if the date 
        on which such debt was placed for collection, charged to profit 
        or loss, or subjected to any similar action antedates the 
        report by less than 180 calendar days.''.
    (c) Technical Amendment.--Section 604(g)(1)(C) of the Fair Credit 
Reporting Act (15 U.S.C. 1681b(g)(1)(C)) is further amended by striking 
``devises'' and inserting ``devices''.

SEC. 404. PROVIDES CREDIT RESTORATION FOR VICTIMS OF PREDATORY MORTGAGE 
              LENDING AND SERVICING.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.) is amended by inserting after section 605B the following new 
section:
``Sec. 605C. Credit restoration for victims of predatory mortgage 
              lending
    ``(a) In General.--A consumer reporting agency may not furnish any 
consumer report containing any adverse item of information relating to 
a covered residential mortgage loan (including the origination and 
servicing of such a loan, any loss mitigation activities related to 
such a loan, and any foreclosure, deed in lieu of foreclosure, or short 
sale related to such a loan), if the action or inaction to which the 
item of information relates--
            ``(1) resulted from an unfair, deceptive, or abusive act or 
        practice, or a fraudulent, discriminatory, or illegal activity 
        of a financial institution, as determined by the Bureau or a 
        court of competent jurisdiction; or
            ``(2) is related to an unfair, deceptive, or abusive act, 
        practice, or a fraudulent, discriminatory, or illegal activity 
        of a financial institution that is the subject of a settlement 
        agreement initiated on behalf of a consumer or consumers and 
        that is between the financial institution and an agency or 
        department of a local, State, or Federal Government, regardless 
        of whether such settlement includes an admission of wrongdoing.
    ``(b) Covered Residential Mortgage Loan Defined.--In this section, 
the term `covered residential mortgage loan' means any loan primarily 
for personal, family, or household use that is secured by a mortgage, 
deed of trust, or other equivalent consensual security interest on a 
dwelling (as defined in section 103(w) of the Truth in Lending Act), 
including a loan in which the proceeds will be used for--
            ``(1) a manufactured home (as defined in section 603 of the 
        Housing and Community Development Act of 1974 (42 U.S.C. 
        5402));
            ``(2) any installment sales contract, land contract, or 
        contract for deed on a residential property; or
            ``(3) a reverse mortgage transaction (as defined in section 
        103 of the Truth in Lending Act).''.
    (b) Table of Contents Amendment.--The table of contents of the Fair 
Credit Reporting Act is amended by inserting after the item relating to 
section 605B the following new item:

``605C. Credit restoration for victims of predatory mortgage 
                            lending.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect at the end of the 18-month period beginning on the date of the 
enactment of this Act.

SEC. 405. PROVIDES CREDIT RELIEF FOR PRIVATE EDUCATION LOANS BORROWERS 
              WHO WERE DEFRAUDED OR MISLEAD BY PROPRIETARY EDUCATION 
              INSTITUTION OR CAREER EDUCATION PROGRAMS.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.), as amended by section 404, is further amended by inserting after 
section 605C the following new section:
``Sec. 605D. Private education loan credit restoration for defrauded 
              student borrowers who attend certain proprietary 
              educational institution or career education programs
    ``(a) Process for Certification as a Qualifying Private Education 
Loan Borrower.--
            ``(1) In general.--A consumer, or an individual acting on 
        behalf of or as a personal representative of the consumer or a 
        class of consumers, may submit a request to the Bureau, along 
        with a defraudment claim, to be certified as a qualifying 
        private education loan borrower with respect to a private 
        education loan.
            ``(2) Certification.--The Bureau shall certify a consumer 
        described in paragraph (1) as a qualifying private education 
        loan borrower with respect to a private education loan if the 
        Bureau or a court of competent jurisdiction determines that the 
        consumer has a valid defraudment claim with respect to such 
        loan.
    ``(b) Removal of Adverse Information.--Upon receipt of a notice 
described in subsection (d)(5), a consumer reporting agency shall 
remove any adverse information relating to any private education loan 
with respect to which a consumer is a qualifying private education loan 
borrower from any consumer report within 45 calendar days of receipt of 
such notification.
    ``(c) Disclosure.--The Bureau shall disclose the results of a 
certification determination in writing to the consumer that provides a 
clear and concise explanation of the basis for the determination of 
whether such consumer or class of consumers is a qualifying private 
education loan borrower with respect to a private education loan and, 
as applicable, an explanation of the consumer's right to have adverse 
information relating to such loan removed from their consumer report by 
a consumer reporting agency.
    ``(d) Procedures.--The Bureau shall--
            ``(1) establish procedures for a consumer or an individual 
        acting on behalf of or as a personal representative of the 
        consumer or a class of consumers to submit a request described 
        in subsection (a);
            ``(2) establish procedures to efficiently review, accept, 
        and process such a request;
            ``(3) develop ongoing outreach initiatives and education 
        programs to inform consumers or a class of consumers of the 
        circumstances under which such consumer or class may be 
        eligible to be certified as a qualifying private education loan 
        borrower with respect to a private education loan;
            ``(4) establish procedures, including the manner, form, and 
        content of the notice informing a private educational loan 
        holder of the prohibition on reporting any adverse information 
        relating to a private education loan with respect to which a 
        consumer is a qualifying private education loan borrower; and
            ``(5) establish procedures, including the manner, form, and 
        content of the notice informing a consumer reporting agency of 
        the obligation to remove any adverse information as described 
        in subsection (c).
    ``(e) Standardized Reporting Codes.--A consumer reporting agency 
shall develop standardized reporting codes for use by private education 
loan holders to identify and report a qualifying private education loan 
borrower's status of a request to remove any adverse information 
relating to any private education loan with respect to which such 
consumer is a qualifying private education loan borrower. A consumer 
report in which a person furnishes such codes shall be deemed to comply 
with the requirements for accuracy and completeness required under 
sections 623(a)(1) and 630. Such codes shall not appear on any report 
provided to a third party, and shall be removed from the consumer's 
credit report upon the successful restoration of the consumer's credit 
under this section.
    ``(f) Defraudment Claim Defined.--For purposes of this section, the 
term `defraudment claim' means a claim made with respect to a consumer 
who is a borrower of a private education loan with respect to a 
proprietary educational institution or career education program in 
which the consumer or an individual acting on behalf of or as a 
personal representative of the consumer or a class of consumers alleges 
that--
            ``(1) the proprietary educational institution or career 
        education program--
                    ``(A) engaged in an unfair, deceptive, or abusive 
                act or practice, or a fraudulent, discriminatory, or 
                illegal activity--
                            ``(i) as defined by State law of the State 
                        in which the proprietary educational 
                        institution or career education program is 
                        headquartered or maintains or maintained 
                        significant operations; or
                            ``(ii) under Federal law;
                    ``(B) is the subject of an enforcement order, a 
                settlement agreement, a memorandum of understanding, a 
                suspension of tuition assistance, or any other action 
                relating to an unfair, deceptive, or abusive act or 
                practice that is between the proprietary educational 
                institution or career education program and an agency 
                or department of a local, State, or Federal Government; 
                or
                    ``(C) misrepresented facts to students or 
                accrediting agencies or associations about graduation 
                or gainful employment rates in recognized occupations 
                or failed to provide the coursework necessary for 
                students to successfully obtain a professional 
                certification or degree from the proprietary 
                educational institution or career education program; or
            ``(2) the consumer or an individual acting on behalf of or 
        as a personal representative of the consumer or a class of 
        consumers has submitted a valid defense to repayment claim with 
        respect to such loan, as determined by the Secretary of 
        Education.''.
    (b) Table of Contents Amendment.--The table of contents of the Fair 
Credit Reporting Act is amended by inserting after the item relating to 
section 605C (as added by section 404) the following new item:

``605D. Private education loan credit restoration for defrauded student 
                            borrowers from certain proprietary 
                            educational institution or career education 
                            programs.''.

SEC. 406. ESTABLISHES RIGHT FOR VICTIMS OF FINANCIAL ABUSE TO HAVE 
              ADVERSE INFORMATION ASSOCIATED WITH AN ABUSER'S 
              FRAUDULENT ACTIVITY REMOVED FROM THEIR CONSUMER REPORTS.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.), as amended by section 301, is further amended by inserting after 
section 605E the following new section:
``Sec. 605F. Financial abuse prevention
    ``For a consumer who is the victim of intentionally abusive or 
harmful financial behavior, as determined by a court of competent 
jurisdiction including a family court, juvenile court, or other court 
with personal jurisdiction, that was conducted by a spouse, family or 
household member, caregiver, or person with whom such consumer had a 
dating relationship in a manner which resulted in the inclusion of an 
adverse item of information on the consumer report of the consumer, and 
the consumer did not participate in or consent to such behavior, the 
consumer may apply to a court of competent jurisdiction, including a 
family court, juvenile court, or other court with personal 
jurisdiction, for an order to require the removal of such adverse 
information from the consumer's file maintained by any consumer 
reporting agency.''.
    (b) Table of Contents Amendment.--The table of contents of the Fair 
Credit Reporting Act is amended by inserting after the item relating to 
section 605E (as added by section 301) the following new item:

``605F. Financial abuse prevention.''.

SEC. 407. PROHIBITS TREATMENT OF CREDIT RESTORATION OR REHABILITATION 
              AS ADVERSE INFORMATION.

    The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended--
            (1) by adding at the end the following new section:
``Sec. 630. Prohibition of certain factors related to Federal credit 
              restoration or rehabilitation
    ``(a) Restriction on Credit Scoring Models.--A credit scoring model 
may not--
            ``(1) take into consideration, in a manner adverse to a 
        consumer's credit score or educational credit score, any 
        information in a consumer report concerning the consumer's 
        participation in credit restoration or rehabilitation under 
        section 605C, 605D, 605E, or 605F; or
            ``(2) treat negatively, in a manner adverse to a consumer's 
        credit score or educational credit score, the absence of 
        payment history data for an existing account, whether the 
        account is open or closed, where the absence of such 
        information is the result of a consumer's participation in 
        credit restoration or rehabilitation under section 605C, 605D, 
        605E, or 605F.
    ``(b) Restriction on Persons Obtaining Consumer Reports.--A person 
who obtains a consumer report may not--
            ``(1) take into consideration, in a manner adverse to a 
        consumer, any information in a consumer report concerning the 
        consumer's participation in credit restoration or 
        rehabilitation under section 605C, 605D, 605E, or 605F; or
            ``(2) treat negatively the absence of payment history data 
        for an existing account, whether the account is open or closed, 
        where the absence of such information is the result of a 
        consumer's participation in credit restoration or 
        rehabilitation under section 605C, 605D, 605E, or 605F.
    ``(c) Accuracy and Completeness.--If a person who furnishes 
information to a consumer reporting agency requests the removal of 
information from a consumer report or a consumer reporting agency 
removes information from a consumer report in compliance with the 
requirements under section 605C, 605D, 605E, or 605F, or such 
information was removed pursuant at section 605(a)(11), such report 
shall be deemed to satisfy the requirements for accuracy and 
completeness with respect to such information.
    ``(d) Prohibition Related to Adverse Actions and Risk-Based Pricing 
Decisions.--No person shall use information related to a consumer's 
participation in credit restoration or rehabilitation under section 
605C, 605D, 605E, or 605F in connection with any determination of--
            ``(1) the consumer's eligibility or continued eligibility 
        for an extension of credit;
            ``(2) the terms and conditions offered to a consumer 
        regarding an extension of credit; or
            ``(3) an adverse action made for employment purposes.''; 
        and
            (2) in the table of contents for such Act, by adding at the 
        end the following new item:

``630. Prohibition of certain factors related to Federal credit 
                            restoration or rehabilitation.''.

      TITLE V--MONITORING THE DEVELOPMENT AND USE OF CREDIT SCORES

SEC. 501. ESTABLISHES CLEAR FEDERAL OVERSIGHT OF THE DEVELOPMENT OF 
              CREDIT SCORING MODELS BY THE BUREAU.

    The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended 
by section 407, is further amended--
            (1) by adding at the end the following new section:
``Sec. 631. Credit scoring models
    ``(a) Validated Credit Scoring Models.--Not later than 1 year after 
the date of enactment of this section, the Bureau shall issue final 
regulations applicable to a person that creates, maintains, or 
purchases credit scoring models used in making credit decisions to 
establish standards for validating the accuracy and predictive value of 
all such credit scoring models, both before release for initial use and 
at regular intervals thereafter, for as long as such credit scoring 
models are made available for purchase or use by such person.
    ``(b) Prohibition.--At least once every 2 years, the Bureau shall 
conduct a review of credit scoring models to determine whether the use 
of any particular factors, or the weight or consideration given to 
certain factors by credit scoring models, is inappropriate, including 
if such factors do not enhance or contribute to the accuracy and 
predictive value of the models. Upon the conclusion of its review, the 
Bureau may prohibit a person described in subsection (a) from weighing, 
considering, or including certain factors in, or making available for 
purchase or use, certain credit scoring models or versions, as the 
Bureau determines appropriate.
    ``(c) Compliance.--The Bureau is authorized to enforce compliance 
with this section by a person described in subsection (a).''; and
            (2) in the table of contents for such Act, by inserting 
        after the item relating to section 630 (as added by section 
        407) the following new item:

``631. Credit scoring models.''.

SEC. 502. MANDATES ONGOING REVIEW AND REPORTS TO CONGRESS BY THE 
              FEDERAL HOUSING FINANCE AGENCY ON USING ADDITIONAL, 
              ALTERNATIVE, AND UPDATED CREDIT SCORING MODELS AS PART OF 
              THE CRITERIA FOR LOANS PURCHASED BY FANNIE MAE AND 
              FREDDIE MAC.

    (a) Biennial Review.--The Director of the Federal Housing Finance 
Agency, in consultation with the Director of the Bureau of Consumer 
Financial Protection, shall review the advantages and disadvantages of 
implementing additional, alternative, or updated credit scoring models 
(as defined in section 603 of the Fair Credit Reporting Act (15 U.S.C. 
1681a)) used to establish the eligibility criteria for loans purchased 
by the Federal National Mortgage Association and the Federal Home Loan 
Mortgage Corporation. Such review shall analyze--
            (1) the impact of using such credit scoring models on the 
        accuracy and predictive value of the performance of loans 
        purchased by the Federal National Mortgage Association and the 
        Federal Home Loan Mortgage Corporation;
            (2) the ability of the Federal National Mortgage 
        Association and the Federal Home Loan Mortgage Corporation to 
        more effectively manage credit risks by adopting additional, 
        alternative, or updated credit scoring models;
            (3) any potential operational risks associated with the 
        reliance on one single provider of credit scores;
            (4) the availability and affordability of covered 
        residential mortgage loans, as defined in section 605C of the 
        Fair Credit Reporting Act;
            (5) the interests of taxpayers; and
            (6) any other factors determined relevant by the Director 
        of the Federal Housing Finance Agency or the Director of the 
        Bureau of Consumer Financial Protection.
    (b) Public Participation.--The Director of the Federal Housing 
Finance Agency shall seek public input about the methodology and 
research design of the review described in subsection (a), including 
from organizations and experts representing racial and ethnic minority 
communities and populations, fair lending organizations, civil rights 
organizations, and consumer and community groups that represent 
depository institutions and credit unions that primarily serve 
traditionally underserved communities.
    (c) Reports.--Not later than the end of the 18-month period 
beginning on the date of the enactment of this Act, and every 2 years 
thereafter, the Director of the Federal Housing Finance Agency shall 
issue a report to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate containing all findings and determinations made 
in carrying out the review required under subsection (a).
    (d) Implementation of Findings.--If the Director of the Federal 
Housing Finance Agency determines, in consultation with the Bureau, 
that the advantages of implementing additional, alternative, or updated 
credit scoring models outweigh the disadvantages, the Director shall 
promptly require the Federal National Mortgage Association and the 
Federal Home Loan Mortgage Corporation to revise their seller-servicer 
guidelines to allow for the use of such additional, alternative, or 
updated credit scoring models, and any other guidelines as the Director 
determines appropriate, in a manner consistent with the determination 
of the Director.

SEC. 503. REQUIRES A BUREAU STUDY AND REPORT TO CONGRESS ON THE IMPACT 
              OF USING NON-TRADITIONAL DATA.

    (a) Study.--The Bureau of Consumer Financial Protection shall carry 
out a study of the impact on the availability and affordability of 
credit by the inclusion of non-traditional data on a consumer report 
(as defined in section 603 of the Fair Credit Reporting Act (15 U.S.C. 
1681a)) used in connection with a credit transaction involving the 
extension of credit to, or review or collection of an account of, the 
consumer, including a review of the advantages or disadvantages to 
consumers with minimal traditional credit history, traditionally 
underserved communities and populations, and racial and ethnic 
minorities.
    (b) Report.--Not later than the end of the 1-year period following 
the date of the enactment of this Act, the Bureau shall issue a report 
to the Committee on Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the Senate 
containing all findings and determinations made in carrying out the 
study required under subsection (a).
    (c) Non-Traditional Data Defined.--For purposes of this section, 
the term ``non-traditional data'' means data related to 
telecommunications, utility payments, rent payments, remittances, wire 
transfers, and such other items as the Bureau determines appropriate.

  TITLE VI--PROVIDING GREATER CONSUMER ACCESS TO AND UNDERSTANDING OF 
                   CONSUMER REPORTS AND CREDIT SCORES

SEC. 601. CREDIT SCORE AND EDUCATIONAL CREDIT SCORE DEFINITIONS.

    (a) In General.--Section 603 of the Fair Credit Reporting Act (15 
U.S.C. 1681a), as amended by section 302, is further amended by adding 
at the end the following new subsection:
    ``(aa) Credit Score and Educational Credit Score Definitions.--
            ``(1) Credit score.--The term `credit score' 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 or extends credit to predict the likelihood of certain 
        credit behaviors, including default, as determined by the 
        Bureau.
            ``(2) Educational credit score.--The term `educational 
        credit score' means a numerical value or categorization derived 
        from a statistical tool or modeling system based upon 
        information from a consumer report that assists consumers in 
        understanding how a lender or creditor may view the consumer's 
        creditworthiness in deciding whether to make a loan or extend 
        credit to that consumer.
            ``(3) Key factors.--The term `key factors' means relevant 
        elements or reasons affecting the credit score for the 
        particular individual, listed in the order of importance based 
        on the effect of each element or reason on the credit score or 
        educational credit score.
            ``(4) Credit scoring model.--The term `credit scoring 
        model' means a scoring algorithm, formula, model, program, or 
        mechanism used to generate a credit score or an educational 
        credit score.''.
    (b) Conforming Amendments.--The Fair Credit Reporting Act (15 
U.S.C. 1681 et seq.) is amended--
            (1) in section 605(c)(2) (as so redesignated by section 
        103), by striking ``(as defined in section 609(f)(2)(B))''; and
            (2) in section 615--
                    (A) by striking ``as defined in section 
                609(f)(2)(A)'' each place that term appears; and
                    (B) by striking ``set forth in subparagraphs (B) 
                through (E) of section 609(f)(1)'' and inserting ``with 
                respect to a credit score described in section 
                609(f)(2), if available'' each place that term appears.

SEC. 602. EXPANDS EXPLANATORY INFORMATION GIVEN TO CONSUMERS ABOUT HOW 
              SCORES ARE CALCULATED.

    Section 609(f) of the Fair Credit Reporting Act (15 U.S.C. 
1681g(f)) is amended to read as follows:
    ``(f) Disclosure of Credit Score and Educational Credit Score by 
Consumer Reporting Agencies.--
            ``(1) In general.--Upon the request of a consumer for a 
        credit score or educational credit score, a consumer reporting 
        agency shall supply to the consumer a statement--
                    ``(A) containing--
                            ``(i) a current credit score at the time of 
                        the request generated using a commonly used 
                        credit scoring model to generate credit scores, 
                        subject to regulations of the Bureau;
                            ``(ii) an educational credit score at the 
                        time of the request, if it is not practicable 
                        to generate such a credit score, as determined 
                        by the Bureau; or
                            ``(iii) an explanation that the consumer's 
                        file does not have sufficient information from 
                        which to generate such a credit score or 
                        educational credit score; and
                    ``(B) with respect to each previous credit score in 
                the file of the consumer--
                            ``(i) the date on which the credit score 
                        was generated;
                            ``(ii) the name of any entity that the 
                        credit score was provided to; and
                            ``(iii) the credit score itself.
            ``(2) Requirements.--A statement provided under clause (i) 
        or (ii) of paragraph (1)(A) shall include--
                    ``(A) a minimum of 4 key factors, if available, 
                that adversely affected the credit score or educational 
                credit score, except that if one of the key factors 
                consists of the number of enquiries made with respect 
                to a consumer report, that factor shall be provided to 
                the consumer in addition to the factors required by 
                this subparagraph;
                    ``(B) to the extent possible, specific actions a 
                consumer could take with respect to each key factor 
                listed in subparagraph (A) to improve the consumer's 
                credit score or educational credit score;
                    ``(C) a minimum of 4 key factors, if available, 
                that positively affected the credit score or 
                educational credit score;
                    ``(D) the range of possible credit scores or 
                educational credit scores under the credit scoring 
                model used;
                    ``(E) the distribution of credit scores or 
                educational credit scores among consumers who are 
                scored under the same credit scoring model by the 
                consumer reporting agency, and using the same scale as 
                that of the score that is provided to a creditor or 
                consumers--
                            ``(i) in the form of a bar graph containing 
                        a minimum of 6 bars that illustrates the 
                        percentage of consumers with credit scores or 
                        educational credit scores within the range of 
                        scores represented by each bar; or
                            ``(ii) by another clear and readily 
                        understandable graphical depiction, statement, 
                        or illustration comparing the consumer's credit 
                        score or educational credit score to the scores 
                        of other consumers, as determined by the 
                        Bureau;
                    ``(F) the date on which the credit score or 
                educational credit score was created; and
                    ``(G) the name of the person that developed the 
                credit scoring model on which the credit score or 
                educational credit score was based.
            ``(3) Applicability to certain uses.--This subsection shall 
        not be construed so as to compel a consumer reporting agency 
        to--
                    ``(A) develop or disclose a credit score if the 
                agency does not distribute credit scores used by a 
                person who makes or arranges a loan or extends credit 
                to predict the likelihood of certain credit behaviors; 
                or
                    ``(B) develop or disclose an educational credit 
                score if the agency does not develop educational credit 
                scores that assist in understanding the general credit 
                behavior of a consumer and predicting the future credit 
                behavior of the consumer.
            ``(4) Maintenance of credit scores.--
                    ``(A) In general.--All consumer reporting agencies 
                shall maintain in the consumer's file credit scores 
                relating to the consumer for a period of 2 years from 
                the date on which such information is generated.
                    ``(B) Disclosure only to consumers.--A past credit 
                score maintained in a consumer's file pursuant to 
                subparagraph (A) may only be provided to the consumer 
                to which the credit score relates and may not be 
                included in a consumer report or used as a factor in 
                generating a credit score or educational credit score.
                    ``(C) Removal of past credit scores.--A past credit 
                score maintained in a consumer's file pursuant to 
                subparagraph (A) shall be removed from the consumer's 
                file after the end of the 2-year period described under 
                subparagraph (A).''.

SEC. 603. REQUIRES CONSUMER REPORTING AGENCIES TO DISCLOSE PROMINENTLY 
              THE DIFFERENCES BETWEEN AND LIMITATIONS OF CREDIT SCORES 
              AND EDUCATIONAL CREDIT SCORES REQUIRED PRIOR TO A 
              CONSUMER OBTAINING SUCH SCORES.

    Section 609(f) of the Fair Credit Reporting Act (15 U.S.C. 
1681g(f)), as amended by section 602, is further amended by adding at 
the end the following new paragraphs:
            ``(5) Website disclaimer.--A consumer reporting agency that 
        generates or provides credit scores or educational credit 
        scores shall clearly and conspicuously display on the home page 
        of the agency's Internet website, and as part of any 
        application, solicitation, or marketing material or media 
        providing information related to a credit score or educational 
        credit score, the following notice, in boldface type of 18-
        point font or larger and in a text box with boldface outer 
        borders:

```CREDIT SCORE DISCLAIMER.

    ```There is no ``one'' credit score. There are many scoring 
formulas derived from a wide variety of models available to a consumer 
and used by lenders and creditors. Different lenders and creditors use 
different scoring formulas to determine whether to extend credit or 
make a loan to you, and the terms of the credit or loan. An educational 
credit score is not a credit score that a person who makes a loan or 
extends credit to you is likely to use. Educational credit scores are 
merely intended to be used as an educational tool to help consumers 
understand how the information contained in a consumer report may 
affect the terms and conditions of a loan or extension of credit that 
may be available to a consumer. Lenders and creditors may also rely on 
information not contained in your consumer report and not reflected in 
the calculation of your credit score.'.
            ``(6) Additional requirements for educational credit 
        scores.--
                    ``(A) Disclaimer.--If an educational credit score 
                is provided pursuant to paragraph (1), a consumer 
                reporting agency shall clearly and conspicuously 
                include in a prominent location on the statement, in 
                boldface type of 18-point font or larger, and in a text 
                box with boldface outer borders, the following notice:

```EDUCATIONAL CREDIT SCORE DISCLAIMER.

    ```The educational credit score provided to you is not a credit 
score that a lender or creditor is likely to use to make a loan or 
extend credit to you. There are many different credit scores derived 
from a wide variety of models used by lenders and creditors. An 
educational credit score is merely an educational tool. It is intended 
to provide consumers with a basic understanding of how the information 
contained in a consumer report may affect the terms and conditions of 
credit that are available. The credit scores you receive directly from 
different lenders and creditors may not be the same as an educational 
credit score. There are a number of reasons for this:
            ```(1) Each company may use a different formula for 
        calculating credit scores and the differences in the formulas 
        may lead to differences in your scores.
            ```(2) Companies may produce scores that give results on 
        different scales.
            ```(3) Not all lenders or creditors report to every 
        consumer reporting agency, and therefore the information 
        contained in your consumer report that the consumer reporting 
        agencies use to calculate your educational credit score may 
        differ among agencies.'.
                    ``(B) Prohibition on misleading representations.--A 
                consumer reporting agency may not refer to an 
                educational credit score as a credit score in any 
                application, solicitation, marketing, or other 
                informational materials or media.
            ``(7) Modification of disclaimers.--The Bureau may modify 
        the content, format, and manner of the disclaimers required 
        under paragraphs (5) and (6), if warranted, after conducting 
        consumer testing or research.''.

SEC. 604. PROVIDES CONSUMERS WITH FREE CREDIT SCORE DISCLOSURES WITH 
              THEIR FREE ANNUAL CONSUMER REPORTS UPON REQUEST AND 
              CREATES INSTANCES WHEN CONSUMERS AUTOMATICALLY RECEIVE 
              FREE CONSUMER REPORTS AND CREDIT SCORES.

    (a) In General.--Section 612 of the Fair Credit Reporting Act (15 
U.S.C. 1681j) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by inserting after 
                        ``section 609'' the following: ``(including the 
                        disclosure of a credit score or educational 
                        credit score under subsection (f) of such 
                        section)''; and
                            (ii) in subparagraph (C)--
                                    (I) by striking ``Commission'' and 
                                inserting ``Bureau'';
                                    (II) by inserting ``, credit 
                                scores, and educational credit scores 
                                (as applicable)'' after ``consumer 
                                reports'' each place that term appears; 
                                and
                                    (III) in clause (i), by inserting 
                                ``and through the Internet website 
                                established under section 611(g)'' 
                                after ``such requests'';
                    (B) in paragraph (2)--
                            (i) by striking ``15 days'' and inserting 
                        ``3 business days''; and
                            (ii) by inserting ``, credit score, or 
                        educational credit score'' after ``consumer 
                        report'';
                    (C) in paragraph (3), by inserting ``, credit 
                score, or educational credit score'' after ``consumer 
                report''; and
                    (D) in paragraph (4), by inserting ``, credit 
                scores, or educational credit scores'' after ``consumer 
                reports'';
            (2) in subsection (b), by inserting ``(including the 
        disclosure of a credit score or educational credit score, as 
        applicable, under subsection (f) of such section)'' after 
        ``section 609'';
            (3) in subsection (c)--
                    (A) by inserting ``(including the disclosure of a 
                credit score or educational credit score under 
                subsection (f) of such section)'' after ``pursuant to 
                section 609'';
                    (B) in paragraph (2), by striking ``; or'' and 
                inserting a semicolon;
                    (C) in paragraph (3), by striking the period at the 
                end and inserting a semicolon; and
                    (D) by adding at the end the following new 
                paragraphs:
            ``(4) has disputed information, or submitted an appeal of 
        an investigation or reinvestigation of such information, under 
        section 611 or 623, regardless of whether the consumer has 
        already received a credit report, credit score, or educational 
        credit score under section 611 or 623; or
            ``(5) has had information that was previously deleted under 
        section 611(a)(5) reinserted into the consumer's file, 
        regardless of whether the consumer has already received a 
        credit report, credit score, or educational credit score under 
        such section.'';
            (4) in subsection (d), by inserting ``(including the 
        disclosure of a credit score or educational credit score under 
        subsection (f) of such section)'' after ``section 609'';
            (5) in subsection (f)(1)--
                    (A) by striking ``reasonable charge'' and all that 
                follows through ``section 609'' and inserting 
                ``reasonable charge on a consumer for providing a 
                consumer report to a consumer'';
                    (B) by striking subparagraph (B);
                    (C) by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B), respectively (and conforming 
                the margins accordingly); and
                    (D) in subparagraph (B) (as so redesignated), by 
                striking ``disclosure; and'' and inserting 
                ``disclosure.''; and
            (6) by adding at the end the following new subsections:
    ``(h) Centralized Source for Obtaining Free Copy of Consumer Report 
and Scores.--
            ``(1) Nationwide consumer reporting agencies.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, each consumer 
                reporting agency described under subsection (p) of 
                section 603 shall prominently display on the home page 
                of the agency's website--
                            ``(i) a hyperlink labeled `Get Your Free 
                        Annual Credit Reports along with either your 
                        Credit Scores or Educational Credit Scores 
                        provided for under Federal Law' or 
                        substantially similar text, as determined by 
                        the Bureau; and
                            ``(ii) a disclosure titled `Consumer's 
                        Right to Free Credit Scores, Educational Credit 
                        Scores, and Reports under Federal Law' or 
                        substantially similar text, as determined by 
                        the Bureau that includes the following 
                        statement:
    ```All consumers are entitled to obtain a free copy of their 
consumer report and credit score or educational credit score annually 
from each of the nationwide consumer reporting agencies. Under Federal 
law, a consumer is entitled to obtain additional free copies of their 
consumer reports, along with a copy of either the consumer's credit 
score or educational credit score (under certain circumstances), 
including:
            ```(1) When a consumer is unemployed and intends to apply 
        for employment within 60 days.
            ```(2) When a consumer is a recipient of public welfare 
        assistance.
            ```(3) When a consumer has a reasonable belief that their 
        report contains inaccuracies as a result of fraud.
            ```(4) When a consumer asserts in good faith a suspicion 
        that the consumer has been or is about to become a victim of 
        identity theft, fraud, or a related crime, or harmed by the 
        unauthorized disclosure of the consumer's financial or 
        personally identifiable information.
            ```(5) When a consumer files a dispute or an appeal of the 
        results of a dispute with a consumer reporting agency or a 
        person who furnished information to the consumer reporting 
        agency regarding the accuracy or completeness of the 
        information contained on their report.
            ```(6) After a furnisher of information discovers it has 
        furnished inaccurate or incomplete information to a consumer 
        reporting agency, and the furnisher notifies the agency of the 
        error.
            ```(7) After an adverse action is taken against a consumer 
        or a consumer receives a risk-based pricing notice.
            ```(8) When a mortgage lender, private educational lender, 
        indirect auto lender, or motor vehicle lender obtains and uses 
        a consumer's reports or scores for underwriting purposes.'.
                    ``(B) Hyperlink requirements.--The hyperlink 
                described in subparagraph (A)(i) shall be prominently 
                located on the top of the home page and should link 
                directly to the website of the centralized source 
                established pursuant to section 211(d) of the Fair and 
                Accurate Credit Transactions Act of 2003 (15 U.S.C. 
                1681j(d)).
                    ``(C) Modifications.--The Bureau may modify the 
                disclosure described in subparagraph (A)(ii) as 
                necessary to include other circumstances under which a 
                consumer has the right to receive a free consumer 
                report, credit score, or educational credit score.
            ``(2) Nationwide specialty consumer reporting agencies.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, each 
                nationwide specialty consumer reporting agency shall 
                prominently display on the Internet home webpage of the 
                agency a disclosure titled `Consumer's Right to Free 
                Consumer Reports and Credit Score or Educational Credit 
                Score (as applicable) under Federal Law'. Such 
                disclosure shall include the following statement:
    ```Upon request, all consumers are entitled to obtain a free copy 
of their consumer report and credit score or educational credit score 
(as applicable) during any 12-month period from each of the nationwide 
specialty consumer reporting agencies. Federal law also provides 
further circumstances under which a consumer is entitled to obtain 
additional free copies of their consumer report and credit score or 
educational credit score (as applicable) including:
            ```(1) When a consumer is unemployed and intends to apply 
        for employment within 60 days.
            ```(2) When a consumer is a recipient of public welfare 
        assistance.
            ```(3) When a consumer has a reasonable belief that their 
        report contains inaccuracies as a result of fraud.
            ```(4) When a consumer files a dispute or an appeal of the 
        results of a dispute with a consumer reporting agency or a 
        person who furnished information to the consumer reporting 
        agency regarding the accuracy or completeness of the 
        information contained on their report.
            ```(5) After a furnisher of information discovers it has 
        furnished inaccurate or incomplete information to a consumer 
        reporting agency, and the furnisher notifies the agency of the 
        error.
            ```(6) After an adverse action is taken against a consumer 
        or a consumer receives a risk-based pricing notice.
            ```(7) When a mortgage lender, private educational lender, 
        indirect auto lender, or motor vehicle lender obtains and uses 
        a consumer's reports or scores for underwriting purposes.'.
                    ``(B) Modifications.--The Bureau may modify the 
                disclosure described in subparagraph (A) as necessary 
                to include other circumstances under which a consumer 
                has the right to receive a free consumer report and 
                credit score or educational credit score (as 
                applicable).
                    ``(C) Toll-free telephone access.--The information 
                described in this paragraph shall also be made 
                available via a toll-free telephone number. Such number 
                shall be prominently displayed on the home page of the 
                website of each nationwide specialty consumer reporting 
                agency. Each of the circumstances under which a 
                consumer may obtain a free consumer report and credit 
                score or educational credit score (as applicable) shall 
                be presented in an easily understandable format and 
                consumers shall be directed to an individual who is a 
                customer service representative not later than 2 
                minutes after the initial phone connection is made by 
                the consumer. Information provided through such 
                telephone number shall comply with the requirements of 
                section 633.
                    ``(D) Online consumer reports; exemption.--Upon 
                receipt of a request by a consumer for a consumer 
                report, each nationwide specialty consumer reporting 
                agency shall provide access to such report 
                electronically on the Internet website described in 
                section 611(g).
    ``(i) Automatic Provision of Free Consumer Reports and Credit 
Scores or Educational Credit Scores.--A consumer reporting agency shall 
provide to a consumer a free copy of the file and credit score or 
educational credit score of the consumer who--
            ``(1) obtains a 1-year fraud alert, 7-year fraud alert, 
        active duty alert, or credit freeze as described in section 
        605A; or
            ``(2) has disputed information, or submitted an appeal of 
        an investigation or reinvestigation of such information, under 
        section 611 or 623.''.
    (b) Technical Amendment.--Section 615(h)(7) of such Act (15 U.S.C. 
1681m(h)(7)) is amended by striking ``section'' and inserting 
``subsection''.

SEC. 605. REQUIRES PRIVATE EDUCATIONAL LENDERS TO PROVIDE CONSUMERS 
              WITH FREE COPIES OF ANY CONSUMER REPORTS AND CREDIT 
              SCORES THAT THEY USED FOR UNDERWRITING BEFORE CONSUMERS 
              SIGN LOAN AGREEMENTS.

    Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g), as 
amended by section 702, is further amended by adding at the end the 
following new subsection:
    ``(i) Disclosure of Consumer Reports and Credit Scores by Private 
Educational Lenders.--
            ``(1) In general.--If a private educational lender obtains 
        a copy of any consumer reports or credit scores and uses such 
        reports or scores in connection with an application of a 
        consumer for a private education loan, the private educational 
        lender shall provide to the consumer, not later than 3 business 
        days after obtaining such reports or scores and before the date 
        on which the consumer enters into a loan agreement with the 
        private educational lender, a copy of any such reports or 
        scores, along with the statement described under subsection 
        (f)(2).
            ``(2) Costs.--None of the costs to the private educational 
        lender associated with procuring consumer reports or credit 
        scores under this subsection may be charged, directly or 
        indirectly, to the consumer.
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to eliminate any requirement for creditors 
        and lenders to provide credit score disclosures, including the 
        statement described under subsection (f)(2), to consumers as 
        part of an adverse action or risk-based pricing notice.''.

SEC. 606. REQUIRES MOTOR VEHICLE LENDERS OR INDIRECT AUTO LENDERS TO 
              PROVIDE CONSUMERS WITH FREE COPIES OF ANY CONSUMER 
              REPORTS AND CREDIT SCORES THAT THEY USED FOR UNDERWRITING 
              BEFORE CONSUMERS SIGN LEASE OR LOAN AGREEMENTS.

    Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g), as 
amended by section 605, is further amended by adding at the end the 
following new subsection:
    ``(j) Disclosure of Consumer Reports and Credit Scores Used by 
Motor Vehicle Lenders or Indirect Auto Lenders.--
            ``(1) In general.--If a motor vehicle lender or indirect 
        auto lender obtains a copy of any consumer reports or credit 
        scores and uses such reports or scores in connection with an 
        application of a consumer for a motor vehicle loan or lease, 
        the motor vehicle lender or indirect auto lender shall provide 
        to the consumer a document, separate from the consumer's lease 
        or purchase agreement and before the consumer enters into a 
        lease or purchase agreement, disclosing any consumer reports 
        and credit scores, including the statement described in 
        subsection (f)(2), used by the lender to determine whether to 
        extend credit to the consumer.
            ``(2) Costs.--None of the costs to the motor vehicle lender 
        or indirect auto lender associated with procuring consumer 
        reports or credit scores under this subsection may be charged, 
        directly or indirectly, to the consumer.
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to eliminate any requirement for creditors 
        and lenders to provide credit score disclosures, including the 
        statement described under subsection (f)(2), to consumers as 
        part of an adverse action or risk-based pricing notice.
            ``(4) Definitions.--
                    ``(A) Indirect auto lender.--The term `indirect 
                auto lender' has the meaning given the term by the 
                Bureau, and shall include a person extending a loan 
                made with respect to a car, boat, motorcycle, 
                recreational vehicle, or other similar vehicle used 
                primarily for personal or household purposes.
                    ``(B) Motor vehicle lender.--The term `motor 
                vehicle lender' has the meaning given the term by the 
                Board of Governors of the Federal Reserve System, and 
                shall include a person extending a loan made with 
                respect to a car, boat, motorcycle, recreational 
                vehicle, or other similar vehicle used primarily for 
                personal or household purposes.''.

SEC. 607. REQUIRES RESIDENTIAL MORTGAGE LENDERS TO PROVIDE CONSUMERS 
              WITH FREE COPIES OF ANY CONSUMER REPORTS AND CREDIT 
              SCORES THAT THEY USED FOR UNDERWRITING BEFORE CONSUMERS 
              SIGN LOAN AGREEMENTS.

    Section 609(g) of the Fair Credit Reporting Act (15 U.S.C. 
1681g(g)) is amended--
            (1) by redesignating paragraph (2) as paragraph (5);
            (2) in paragraph (1)--
                    (A) by striking ``a consumer credit score'' and 
                inserting ``any consumer reports or credit scores'';
                    (B) by striking ``, as defined in subsection 
                (f),'';
                    (C) by striking ``the following to the consumer as 
                soon as reasonably practicable:'' and inserting ``, not 
                later than 3 business days after using such reports or 
                scores, a document disclosing any consumer reports and 
                credit scores used by the lender to determine whether 
                to extend credit to the consumer along with the 
                statement described in subsection (f)(2).'';
                    (D) by striking subparagraphs (A), (B), (C), (E), 
                and (F);
                    (E) by redesignating subparagraph (D) as paragraph 
                (3); and
                    (F) by redesignating subparagraph (G) as paragraph 
                (4);
            (3) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to eliminate any requirement for lenders to 
        provide credit score disclosures, including the statement 
        described under subsection (f)(2), to consumers as part of an 
        adverse action or risk-based pricing notice.'';
            (4) in paragraph (3) (as so redesignated), in the quoted 
        material--
                    (A) by inserting ``, free of charge,'' after 
                ``disclose to you''; and
                    (B) by striking ``affecting your credit scores'' 
                and inserting ``affecting your credit score or 
                scores'';
            (5) in paragraph (5) (as so redesignated) by inserting ``or 
        scores'' after ``credit score'' each place such term appears; 
        and
            (6) by adding at the end the following new paragraphs:
            ``(6) Actions not required.--This subsection shall not 
        require any person to disclose any credit score or related 
        information obtained by the person after a loan has closed.
            ``(7) No procurement costs.--None of the costs to the 
        creditor or lender associated with procuring any consumer 
        reports or scores under this subsection may be charged, 
        directly or indirectly, to the consumer.''.

 TITLE VII--BANNING MISLEADING AND UNFAIR CONSUMER REPORTING PRACTICES

SEC. 701. PROHIBITS AUTOMATIC RENEWALS FOR CONSUMER REPORTING AND 
              CREDIT SCORING PRODUCTS AND SERVICES OFFERED UNDER 
              PROMOTIONAL TERMS.

    The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended 
by section 501, is further amended--
            (1) by adding at the end the following new section:
``Sec. 632. Promotional periods
    ``(a) Termination Notice.--With respect to any product or service 
related to a consumer report or a credit score that is provided to a 
consumer under promotional terms, the seller or provider of such 
product or service shall provide clear and conspicuous notice to the 
consumer within a reasonable period of time before the promotional 
period ends.
    ``(b) Opt-In.--With respect to any such product or service, the 
seller or provider may not continue to sell or provide such product or 
service to the consumer after the end of the promotional period unless 
the consumer specifically agrees at the end of the promotional period 
to continue receiving the product or service.''; and
            (2) in the table of contents for such Act, by inserting 
        after the item relating to section 631 (as added by section 
        501) the following new item:

``632. Promotional periods.''.

SEC. 702. BANS MISLEADING AND DECEPTIVE MARKETING RELATED TO THE 
              PROVISION OF CONSUMER REPORTING AND CREDIT SCORING 
              PRODUCTS AND SERVICES.

    Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``request, except'' and all 
                        that follows through ``consumer to whom'' and 
                        inserting ``request, unless the consumer to 
                        whom'';
                            (ii) by striking ``disclosure; and'' and 
                        inserting ``disclosure.''; and
                            (iii) by striking subparagraph (B); and
                    (B) in paragraph (6), by inserting ``or educational 
                credit score (if applicable) under subsection (f) or 
                612'' before the period at the end; and
            (2) by adding at the end the following new subsection:
    ``(h) Disclosures on Products and Services.--The Bureau, in 
consultation with the Federal Trade Commission, shall issue regulations 
within 18 months of the date of the enactment of this subsection 
requiring each consumer reporting agency and reseller to clearly and 
conspicuously disclose all material terms and conditions, including any 
fee and pricing information associated with any products or services 
offered, advertised, marketed, or sold to consumers by the agency or 
reseller. Such disclosures shall be made in all forms of communication 
to consumers and displayed prominently on the agency or reseller's 
website and all other locations where products or services are offered, 
advertised, marketed, or sold to consumers.''.

SEC. 703. ENDS EXCESSIVE DIRECT-TO-CONSUMER SALES BY GIVING THE BUREAU 
              AUTHORITY TO SET FAIR AND REASONABLE FEES ON CONSUMER 
              REPORTING AND CREDIT SCORING PRODUCTS AND SERVICES SOLD 
              BY CONSUMER REPORTING AGENCIES TO CONSUMERS.

    The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended 
by section 706, is further amended--
            (1) by adding at the end the following new section:
``Sec. 635. Fair and reasonable fees for products and services
    ``The Bureau may, with respect to any product or service offered by 
a consumer reporting agency to a consumer, set a fair and reasonable 
maximum fee that may be charged for such product or service, except 
where such maximum fee is otherwise provided under this title.''; and
            (2) in the table of contents for such Act, as amended by 
        section 706, by adding at the end the following new item:

``635. Fair and reasonable fees for products and services.''.

SEC. 704. PROMOTES ACCESS TO CONSUMER REPORTING AND CREDIT SCORING 
              DISCLOSURES FOR CONSUMERS WITH LIMITED ENGLISH 
              PROFICIENCY AND VISUAL AND HEARING IMPAIRMENTS TO ENHANCE 
              THEIR ABILITY TO EXERCISE THEIR RIGHTS.

    The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended 
by section 701, is further amended--
            (1) by adding at the end the following new section:
``Sec. 633. Fair access to information for nonnative English speakers 
              and the visually and hearing impaired
    ``(a) In General.--Not later than 180 days after the date of the 
enactment of this section, the Bureau shall issue a rule to require 
consumer reporting agencies and persons who furnish information to 
consumer reporting agencies under this title, to the maximum extent 
reasonably practicable--
            ``(1) to provide any information, disclosures, or other 
        communication with consumers--
                    ``(A) in each of the 10 most commonly spoken 
                languages, other than English, in the United States, as 
                determined by the Bureau of the Census on an ongoing 
                basis; and
                    ``(B) in formats accessible to individuals with 
                hearing or vision impairments; and
            ``(2) to ensure that--
                    ``(A) customer service representatives, including 
                employees assigned to handle disputes or appeals under 
                sections 611 and 623, who are available to assist 
                consumers are highly familiar with the requirements of 
                this title;
                    ``(B) such representatives are available during 
                regular business hours and outside of regular business 
                hours, including evenings and weekends; and
                    ``(C) at least one among such representatives is 
                fluent in each of the 10 most commonly spoken 
                languages, other than English, in the United States, as 
                determined by the Bureau of the Census on an ongoing 
                basis.
    ``(b) Bureau Consultation.--The Bureau shall consult with advocates 
for civil rights, consumer groups, community groups, and organizations 
that serve traditionally underserved communities and populations in 
issuing the rule described in subsection (a).''; and
            (2) in the table of contents for such Act, by inserting 
        after the item relating to section 632 (as added by section 
        701) the following new item:

``633. Fair access to information for nonnative English speakers and 
                            the visually and hearing impaired.''.

SEC. 705. ESTABLISHES CONSUMERS' RIGHT TO SHOP FOR THE BEST DEAL ON 
              CERTAIN LARGE DOLLAR LOANS WITHOUT HARMING THEIR CREDIT 
              STANDING.

    Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c) is 
amended by adding at the end the following new subsection:
    ``(h) Encouraging Consumers To Comparison Shop for Loans by 
Treating Grouped Enquiries of the Same Type Within a Reasonable Period 
as a Single Enquiry.--
            ``(1) In general.--With respect to multiple enquiries of 
        the same type made to a consumer reporting agency for a 
        consumer report or credit score with respect to a consumer, any 
        credit scoring model shall treat such enquiries as a single 
        enquiry if the enquiries are made within a 120-day period.
            ``(2) Definition of enquiries of the same type.--With 
        respect to multiple enquiries made to a consumer reporting 
        agency for a consumer report or credit score with respect to a 
        consumer, such enquiries are `of the same type' if the consumer 
        reporting agency has reason to believe that the enquiries are 
        all made for the purpose of determining the consumer's 
        creditworthiness for an extension of credit described in one of 
        the following:
                    ``(A) A covered residential mortgage loan (as 
                described in section 605C).
                    ``(B) A motor vehicle loan or lease (as described 
                in section 609(j)).
                    ``(C) A private education loan.
                    ``(D) Any other consumer financial product or 
                service, as determined by the Bureau.''.

SEC. 706. ENDS CONFUSION ABOUT WHETHER ENTITIES ARE ENGAGED IN CONSUMER 
              REPORTING PRACTICES BY CREATING A NATIONWIDE CONSUMER 
              REPORTING AGENCIES REGISTRY.

    The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended 
by section 704, is further amended--
            (1) by adding at the end the following new section:
``Sec. 634. Nationwide consumer reporting agencies registry
    ``(a) In General.--Not later than 1 year after the date of 
enactment of this section, the Bureau shall establish and maintain a 
publicly accessible registry of consumer reporting agencies described 
in subsection (p) or (x) of section 603 (and any other agencies the 
Bureau determines provide similar services to such consumer reporting 
agencies) that includes current contact information of each such 
agency, including the Internet website address of the Internet website 
described under section 611(g), and information on how consumers can 
obtain their consumer report, credit scores, or educational credit 
scores (as applicable) by toll-free telephone, postal mail, or 
electronic means.
    ``(b) Registry Requirements.--The registry described in subsection 
(a) shall--
            ``(1) identify the largest agencies and the markets and 
        demographics covered by such agencies; and
            ``(2) disclose, with respect to each agency, whether the 
        agency is subject to the supervisory authority of the Bureau 
        under this title.
    ``(c) Information Updates.--Each agency described under subsection 
(a) shall submit to the Bureau contact information for the registry, 
including any updates to such information. The Bureau shall--
            ``(1) independently verify information submitted by each 
        agency; and
            ``(2) update the registry not less frequently than 
        annually.''; and
            (2) in the table of contents for such Act, by inserting 
        after the item relating to section 633 (as added by section 
        704) the following new item:

``634. Nationwide consumer reporting agencies registry.''.

 TITLE VIII--EXPANDING ACCESS TO TOOLS TO PROTECT VULNERABLE CONSUMERS 
  FROM IDENTITY THEFT, FRAUD, OR A RELATED CRIME, AND PROTECT VICTIMS 
                           FROM FURTHER HARM

SEC. 801. IDENTITY THEFT REPORT DEFINITION.

    Paragraph (4) of section 603(q) of the Fair Credit Reporting Act 
(15 U.S.C. 1681a(q)(4)) is amended to read as follows:
            ``(4) Identity theft report.--The term `identity theft 
        report' has the meaning given that term by rule of the Bureau, 
        and means, at a minimum, a report--
                    ``(A) that is a standardized affidavit that alleges 
                that a consumer has been a victim of identity theft, 
                fraud, or a related crime, or has been harmed by the 
                unauthorized disclosure of the consumer's financial or 
                personally identifiable information, that was developed 
                and made available by the Bureau; or
                    ``(B)(i) that alleges an identity theft, fraud, or 
                a related crime, or alleges harm from the unauthorized 
                disclosure of the consumer's financial or personally 
                identifiable information;
                    ``(ii) that is a copy of an official, valid report 
                filed by a consumer with an appropriate Federal, State, 
                or local law enforcement agency, including the United 
                States Postal Inspection Service, or such other 
                government agency deemed appropriate by the Bureau; and
                    ``(iii) the filing of which subjects the person 
                filing the report to criminal penalties relating to the 
                filing of false information if, in fact, the 
                information in the report is false.''.

SEC. 802. CREDIT FREEZE DEFINITION.

    Section 603(q) of the Fair Credit Reporting Act (15 U.S.C. 
1681a(q)(4)) is amended by adding at the end the following new 
paragraph:
            ``(6) Credit freeze.--The term `credit freeze' means a 
        restriction placed at the request of a consumer or a personal 
        representative of the consumer, on the consumer report of the 
        consumer, that prohibits a consumer reporting agency described 
        in section 603(p) from releasing the consumer report for a 
        purpose relating to the extension of credit without the express 
        authorization of the consumer. A credit freeze shall not apply 
        to the use of a consumer report by any of the following:
                    ``(A) A person, or the person's subsidiary, 
                affiliate, agent, subcontractor, or assignee with whom 
                the consumer has, or prior to assignment had, an 
                account, contract, or debtor-creditor relationship for 
                the purposes of reviewing the active account or 
                collecting the financial obligation owed on the 
                account, contract, or debt.
                    ``(B) A person, or the person's subsidiary, 
                affiliate, agent, subcontractor, or assignee, to whom 
                access has been granted pursuant to a request by the 
                consumer described under section 605A(i)(1)(B), for 
                purposes of facilitating the extension of credit or 
                other permissible use.
                    ``(C) Any person acting pursuant to a court order, 
                warrant, or subpoena.
                    ``(D) A Federal, State, or local government, or an 
                agent or assignee thereof.
                    ``(E) Any person for the sole purpose of providing 
                a credit monitoring or identity theft protection 
                service to which the consumer has subscribed.
                    ``(F) Any person for the purpose of providing a 
                consumer with a copy of the consumer report, credit 
                score, or educational credit score of the consumer upon 
                the consumer's request.
                    ``(G) Any person or entity for insurance purposes, 
                including use in setting or adjusting a rate, adjusting 
                a claim, or underwriting.
                    ``(H) Any person acting pursuant to an 
                authorization from a consumer to use their consumer 
                report for employment purposes.''.

SEC. 803. ENHANCES FRAUD ALERT PROTECTIONS.

    Section 605A of the Fair Credit Reporting Act (15 U.S.C. 1681c-1) 
is amended--
            (1) in subsection (a)--
                    (A) in the subsection heading, by striking ``One-
                Call'' and inserting ``One-Year'';
                    (B) in paragraph (1)--
                            (i) in the paragraph heading, by striking 
                        ``Initial alerts'' and inserting ``In 
                        general'';
                            (ii) by inserting ``or harmed by the 
                        unauthorized disclosure of the consumer's 
                        financial or personally identifiable 
                        information,'' after ``identity theft,'';
                            (iii) in subparagraph (A)--
                                    (I) by striking ``90 days'' and 
                                inserting ``1 year''; and
                                    (II) by striking ``and'' at the 
                                end;
                            (iv) in subparagraph (B)--
                                    (I) by inserting ``1-year'' before 
                                ``fraud alert''; and
                                    (II) by striking the period at the 
                                end and inserting ``; and''; and
                            (v) by adding at the end the following new 
                        subparagraph:
                    ``(C) upon the expiration of the 1-year period 
                described in subparagraph (A) or a subsequent 1-year 
                period, and in response to a direct request by the 
                consumer or such representative, continue the fraud 
                alert for a period of 1 additional year if the 
                information asserted in this paragraph remains 
                applicable.''; and
                    (C) in paragraph (2)--
                            (i) in the paragraph heading, by inserting 
                        ``and credit or educational credit scores'' 
                        after ``reports'';
                            (ii) by inserting ``1-year'' before ``fraud 
                        alert'';
                            (iii) in subparagraph (A), by inserting 
                        ``and credit score or educational credit 
                        score'' after ``file''; and
                            (iv) in subparagraph (B), by striking ``any 
                        request described in subparagraph (A)'' and 
                        inserting ``the consumer reporting agency 
                        includes the 1-year fraud alert in the file of 
                        a consumer'';
            (2) in subsection (b)--
                    (A) in the subsection heading, by striking 
                ``Extended'' and inserting ``Seven-Year'';
                    (B) in paragraph (1)--
                            (i) in subparagraph (B)--
                                    (I) by striking ``5-year period 
                                beginning on the date of such request'' 
                                and inserting ``such 7-year period''; 
                                and
                                    (II) by striking ``and'' at the 
                                end;
                            (ii) in subparagraph (C)--
                                    (I) by striking ``extended'' and 
                                inserting ``7-year''; and
                                    (II) by striking the period at the 
                                end and inserting ``; and''; and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(D) upon the expiration of such 7-year period or 
                a subsequent 7-year period, and in response to a direct 
                request by the consumer or such representative, 
                continue the fraud alert for a period of 7 additional 
                years if the consumer or such representative submits an 
                updated identity theft report.''; and
                    (C) in paragraph (2)--
                            (i) in the paragraph heading, by inserting 
                        ``and credit or educational credit scores'' 
                        after ``reports''; and
                            (ii) by amending subparagraph (A) to read 
                        as follows:
                    ``(A) disclose to the consumer that the consumer 
                may request a free copy of the file and credit score or 
                educational credit score of the consumer pursuant to 
                section 612(d) during each 12-month period beginning on 
                the date on which the 7-year fraud alert was included 
                in the file and ending on the date of the last day that 
                the 7-year fraud alert applies to the consumer's file; 
                and'';
            (3) in subsection (c)--
                    (A) in paragraph (1), by inserting ``or educational 
                credit score'' after ``credit score'';
                    (B) by redesignating paragraphs (1), (2), and (3), 
                as subparagraphs (A), (B), and (C), respectively (and 
                conforming the margins accordingly);
                    (C) by striking ``Upon the direct request'' and 
                inserting
            ``(1) In general.--Upon the direct request''; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(2) Access to free reports and credit or educational 
        credit scores.--If a consumer reporting agency includes an 
        active duty alert in the file of an active duty military 
        consumer, the consumer reporting agency shall--
                    ``(A) disclose to the active duty military consumer 
                that the active duty military consumer may request a 
                free copy of the file and credit score or educational 
                credit score of the active duty military consumer 
                pursuant to section 612(d), during each 12-month period 
                beginning on the date that the activity duty military 
                alert is requested and ending on the date of the last 
                day the active duty alert applies to the file of the 
                active duty military consumer; and
                    ``(B) provide to the active duty military consumer 
                all disclosures required to be made under section 609, 
                without charge to the consumer, not later than 3 
                business days after any request described in 
                subparagraph (A).'';
            (4) by amending subsection (d) to read as follows:
    ``(d) Procedures.--Each consumer reporting agency described in 
section 603(p) shall establish and make available to the public on the 
agency's Internet website policies and procedures to comply with this 
section, including policies and procedures--
            ``(1) that inform consumers of the availability of 1-year 
        fraud alerts, 7-year fraud alerts, active duty alerts, and 
        credit freezes (as applicable);
            ``(2) that allow consumers to request 1-year fraud alerts, 
        7-year fraud alerts, and active duty alerts (as applicable) and 
        to place, temporarily lift, or fully remove a credit freeze in 
        a simple and easy manner; and
            ``(3) for asserting in good faith a suspicion that the 
        consumer has been or is about to become a victim of identity 
        theft, fraud, or a related crime, or harmed by the unauthorized 
        disclosure of the consumer's financial or personally 
        identifiable information, for a consumer seeking a 1-year fraud 
        alert or credit freeze.'';
            (5) in subsection (e), by inserting ``1-year or 7-year'' 
        before ``fraud alert'';
            (6) in subsection (f), by striking ``or active duty alert'' 
        and inserting ``active duty alert, or credit freeze (as 
        applicable)'';
            (7) in subsection (g)--
                    (A) by inserting ``or has been harmed by the 
                unauthorized disclosure of the consumer's financial or 
                personally identifiable information, or to inform such 
                agency of the consumer's participation in credit 
                restoration or rehabilitation under section 605C, 605D, 
                or 605E,'' after ``identity theft,''; and
                    (B) by inserting ``or credit freezes'' after 
                ``request alerts''; and
            (8) in subsection (h)--
                    (A) in paragraph (1)--
                            (i) in the paragraph heading, by striking 
                        ``Initial'' and inserting ``1-year''; and
                            (ii) by striking ``initial'' and inserting 
                        ``1-year'' each place such term appears; and
                    (B) in paragraph (2)--
                            (i) in the paragraph heading, by striking 
                        ``Extended'' and inserting ``7-year''; and
                            (ii) by striking ``extended'' and inserting 
                        ``7-year'' each place such term appears.

SEC. 804. ENHANCES ACCESS TO CREDIT FREEZES, LIMITS THE COST OF SUCH 
              FREEZES, AND PROVIDES ACCESS TO FREE CREDIT FREEZES FOR 
              VULNERABLE CONSUMERS.

    Section 605A of the Fair Credit Reporting Act (15 U.S.C. 1681c-1) 
is amended by adding at the end the following:
    ``(i) Credit Freezes.--
            ``(1) In general.--Upon the direct request of a consumer, 
        or individual acting on behalf of or as a personal 
        representative of a consumer, a consumer reporting agency 
        described in section 603(p) that maintains a file on the 
        consumer and has received appropriate proof of the identity of 
        the requester (as described in section 1022.123 of title 12, 
        Code of Federal Regulations) shall--
                    ``(A) place a credit freeze on the file of the 
                consumer not later than 1 business day after receiving 
                such request sent by postal mail, toll-free telephone, 
                or secure electronic means as established by the agency 
                and--
                            ``(i) not later than 5 business days after 
                        placing the credit freeze, provide the consumer 
                        with written confirmation of the credit freeze 
                        and a unique personal identification number or 
                        password (other than the consumer's social 
                        security number) for use to authorize the 
                        release of the consumer's report for a specific 
                        period of time; and
                            ``(ii) disclose all relevant information to 
                        the consumer relating to the procedures for 
                        temporarily lifting and fully removing a credit 
                        freeze, including a statement about the maximum 
                        amount of time given to an agency to conduct 
                        such actions;
                    ``(B) for a consumer who provides a correct 
                personal identification number or password, temporarily 
                lift an existing credit freeze from the consumer's file 
                for a period of time specified by the consumer for a 
                specific user or category of users, as determined by 
                the consumer--
                            ``(i) not later than 1 business day after 
                        receiving the request by postal mail; or
                            ``(ii) not later than 15 minutes after 
                        receiving the request by toll-free telephone 
                        number or secure electronic means established 
                        by the agency, if such request is received 
                        during regular business hours, except if the 
                        consumer reporting agency's ability to 
                        temporarily lift the credit freeze is prevented 
                        by--
                                    ``(I) an act of God, including 
                                earthquakes, hurricanes, storms, or 
                                similar natural disaster or phenomenon, 
                                or fire;
                                    ``(II) unauthorized or illegal acts 
                                by a third party including terrorism, 
                                sabotage, riot, vandalism, labor 
                                strikes or disputes disrupting 
                                operations, or a similar occurrence;
                                    ``(III) an operational 
                                interruption, including electrical 
                                failure, unanticipated delay in 
                                equipment or replacement part delivery, 
                                computer hardware or software failures 
                                inhibiting response time, or a similar 
                                disruption;
                                    ``(IV) governmental action, 
                                including emergency orders or 
                                regulations, judicial or law 
                                enforcement action, or a similar 
                                directive;
                                    ``(V) regularly scheduled 
                                maintenance or updates to the consumer 
                                reporting agency's systems occurring 
                                outside of normal business hours; or
                                    ``(VI) commercially reasonable 
                                maintenance of, or repair to, the 
                                consumer reporting agency's systems 
                                that is unexpected or unscheduled; or
                    ``(C) for a consumer who provides a correct 
                personal identification number or password, fully 
                remove an existing credit freeze from the file of the 
                consumer not later than 1 business day after receiving 
                such request by postal mail, toll-free telephone, or 
                secure electronic means established by the agency.
            ``(2) Fees.--
                    ``(A) Classes of consumers.--The Bureau may 
                establish classes of consumers eligible to place, 
                temporarily lift, or fully remove a credit freeze free 
                of charge.
                    ``(B) No fee.--A consumer reporting agency 
                described in section 603(p) may not charge a consumer a 
                fee to place, temporarily lift, or fully remove a 
                credit freeze if the consumer or a representative of 
                the consumer--
                            ``(i) asserts in good faith a suspicion 
                        that the consumer has been or is about to 
                        become a victim of identity theft, fraud, or a 
                        related crime, or harmed by the unauthorized 
                        disclosure of the consumer's financial or 
                        personally identifiable information;
                            ``(ii) is an active duty military consumer;
                            ``(iii) is 65 years of age or older; or
                            ``(iv) is a member of a class established 
                        by the Bureau under subparagraph (A).
                    ``(C) Limitation on fees.--For consumers not 
                described in subparagraph (B), a consumer reporting 
                agency may charge not more than $3 (as adjusted by the 
                Bureau on January 1st of each year, based 
                proportionally on changes in the Consumer Price Index 
                for All Urban Consumers published by the Bureau of 
                Labor and Statistics of the Department of Labor, with 
                fractional changes rounded to the nearest 50 cents) for 
                each request by a consumer or a representative of the 
                consumer to place, temporarily lift, or fully remove a 
                credit freeze.
            ``(3) Access to free reports and credit or educational 
        credit scores.--If a consumer reporting agency includes a 
        credit freeze in the file of a consumer described in paragraph 
        (2)(A), the consumer reporting agency shall--
                    ``(A) disclose to the consumer that the consumer 
                may request a free copy of the file and credit score or 
                educational credit score of the consumer pursuant to 
                section 612(d) on an annual basis beginning on the date 
                the freeze is placed and ending on the date that is 12 
                months after the freeze is fully removed; and
                    ``(B) provide to the consumer all disclosures 
                required to be made under section 609, without charge 
                to the consumer, not later than 3 business days after 
                any request described in paragraph (1) is made.
            ``(4) Other requirements.--During the period beginning on 
        the date a consumer or a representative of the consumer 
        requests to place a credit freeze and ending the date on which 
        the consumer or representative requests to fully remove a 
        credit freeze, a consumer reporting agency shall exclude the 
        consumer from any list of consumers prepared by the consumer 
        reporting agency and provided to any third party to offer 
        credit or insurance to the consumer as part of a transaction 
        that was not initiated by the consumer, unless the consumer or 
        such representative requests that such exclusion be rescinded 
        before end of such period.
            ``(5) Notice to consumers regarding changes to certain 
        personally identifiable information.--A consumer reporting 
        agency may not change the name, date of birth, social security 
        number, or address of a consumer in the file of the consumer 
        during the period that a credit freeze is in place unless the 
        consumer reporting agency sends a written confirmation of the 
        change to the consumer within 30 days of the change being 
        posted to the consumer's file. Written confirmation shall not 
        be required for technical modifications of a consumer's 
        personally identifiable information including name and street 
        abbreviations, complete spellings, or transposition of numbers 
        or letters. In the case of an address change of the consumer, 
        any written confirmation shall be sent to the new address and 
        former address of the consumer.
            ``(6) Nonapplicability to certain public record 
        information.--A credit freeze placed on the file of a consumer 
        shall not prohibit a consumer reporting agency from disclosing 
        public record information lawfully obtained by, or for, the 
        consumer reporting agency from an open public record.
            ``(7) Relation to state law.--This subsection does not 
        annul, alter, or affect in any manner the meaning, scope or 
        applicability of the laws of any State relating to credit 
        freezes or other similar actions, except to the extent those 
        laws are inconsistent with any provision of this title, and 
        then only to the extent of the inconsistency. For purposes of 
        this subsection, a term or provision of a State law is not 
        inconsistent with the provisions of this subsection if the term 
        or provision affords greater protection and benefit to the 
        consumer than the protection and benefit provided under this 
        subsection as determined by the Bureau, on its own motion or 
        upon the petition of any interested party.''.

SEC. 805. REQUIRES DISCLOSURE OF CONSUMER RIGHTS RELATED TO CREDIT 
              FREEZES.

    (a) Summary of Rights Related to Credit Freezes.--Section 609(c)(1) 
of the Fair Credit Reporting Act (15 U.S.C. 1681g(c)(1)), as amended by 
section 105(d)(1)(C)(iv), is further amended by adding at the end the 
following new subparagraph:
                    ``(E) Summary of rights related to credit 
                freezes.--The Bureau shall publish, and consumer 
                reporting agencies described under section 603(p) shall 
                distribute to consumers, the following notice:

```CREDIT FREEZES.

    ```Consumers have the right to obtain a credit freeze under Federal 
law from any of the nationwide consumer reporting agencies. You have a 
right to place a credit freeze on your consumer report, which will 
prohibit a consumer reporting agency from releasing information in your 
consumer report without your express authorization. A credit freeze may 
be requested in writing by mail, by toll-free telephone, or by 
electronic means as provided by a consumer reporting agency. A credit 
freeze is designed to prevent credit, loans, and services from being 
approved in your name without your consent. If you are actively seeking 
a new credit, loan, utility, telephone, or insurance account, you 
should understand that the procedures involved in lifting a credit 
freeze may slow your applications for such accounts and you should plan 
ahead and lift a freeze in advance of actually applying for any of 
these type of accounts. When you place a credit freeze on your consumer 
report, you will be provided a personal identification number or 
password to use if you choose to fully remove the freeze on your 
consumer report or temporarily authorize the release of your consumer 
report for a period of time after the freeze is in place to a specific 
party or parties. To provide that authorization you must contact each 
consumer reporting agency individually and provide your personal 
identification number or password, proper identification to verify your 
identity, and the period of time for which you would like the report to 
be available. A consumer reporting agency must authorize the release of 
your consumer report no later than 15 minutes after receiving the above 
information if the request is by toll-free telephone, or secure 
electronic means, and no later than one business day when a written 
request is submitted by mail. A credit freeze does not apply to a 
person or entity, or its affiliates or collection agencies acting on 
behalf of the person or entity, with which you have an existing 
account, that requests information in your consumer report for the 
purposes of reviewing or collecting the account. Reviewing the account 
includes activities related to account maintenance. Unless you suspect 
you have been or are about to become a victim of identity theft, fraud, 
a related crime, or harmed by the unauthorized disclosure of your 
financial or personally identifiable information, are an active duty 
military servicemember, are 65 years of age or older, or as otherwise 
identified as an eligible consumer by the Bureau of Consumer Financial 
Protection, a consumer reporting agency has the right to charge you a 
fee of no more than $3 dollars each time you place, temporarily lift, 
or fully remove a credit freeze. However, if you reside in a State that 
provides greater protections with respect to the circumstances, method, 
or frequency for obtaining a credit freeze than is available under the 
Federal law, those State protections and benefits will apply to 
you.'.''.
    (b) Clarification of Information To Be Included With Agency 
Disclosures.--Section 609(c)(2) of such Act (15 U.S.C. 1681g(c)(2)) is 
amended--
            (1) in subparagraph (B)--
                    (A) by striking ``consumer reporting agency 
                described in section 603(p)'' and inserting ``consumer 
                reporting agency described in subsection (p) or (x) of 
                section 603'';
                    (B) by striking ``the agency'' and inserting ``such 
                an agency''; and
                    (C) by inserting ``and an Internet website 
                address'' after ``hours''; and
            (2) in subparagraph (E), by striking ``outdated under 
        section 605 or'' and inserting ``outdated, required to be 
        removed, or''.

SEC. 806. PROVIDES ACCESS TO FRAUD RECORDS FOR VICTIMS.

    Section 609(e) of the Fair Credit Reporting Act (15 U.S.C. 
1681g(e)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``resulting from identity theft'';
                    (B) by striking ``claim of identity theft'' and 
                inserting ``claim of fraudulent activity''; and
                    (C) by striking ``any transaction alleged to be a 
                result of identity theft'' and inserting ``any 
                fraudulent transaction'';
            (2) in paragraph (2)(B)--
                    (A) by striking ``identity theft, at the election 
                of the business entity'' and inserting ``fraudulent 
                activity'';
                    (B) by amending clause (i) to read as follows:
                            ``(i) a copy of an identity theft report; 
                        or''; and
                    (C) by amending clause (ii) to read as follows:
                            ``(ii) an affidavit of fact that is 
                        acceptable to the business entity for that 
                        purpose.'';
            (3) in paragraph (3), by striking ``identity theft'' and 
        inserting ``fraudulent activity'';
            (4) by striking paragraph (8) and redesignating paragraphs 
        (9) through (13) as paragraphs (8) through (12), respectively; 
        and
            (5) in paragraph (10) (as so redesignated), by striking 
        ``or similar crime'' and inserting ``, fraud, or a related 
        crime''.

SEC. 807. REQUIRED BUREAU TO SET PROCEDURES FOR REPORTING IDENTITY 
              THEFT, FRAUD, AND OTHER RELATED CRIME.

    Section 621(f)(2) of the Fair Credit Reporting Act (15 U.S.C. 
1681s(f)(2)) is amended--
            (1) in the paragraph heading, by striking ``Model form'' 
        and inserting ``Standardized affidavit'';
            (2) by striking ``The Commission'' and inserting ``The 
        Bureau'';
            (3) by striking ``model form'' and inserting ``standardized 
        affidavit'';
            (4) by inserting after ``identity theft'' the following: 
        ``, fraud, or a related crime, or otherwise are harmed by the 
        unauthorized disclosure of the consumer's financial or 
        personally identifiable information,''; and
            (5) by striking ``fraud.'' and inserting ``identity theft, 
        fraud, or other related crime. Such standardized affidavit and 
        procedures shall not include a requirement that a consumer 
        obtain a police report.''.

SEC. 808. ESTABLISHES THE RIGHT TO FREE CREDIT MONITORING AND IDENTITY 
              THEFT PROTECTION SERVICES FOR CERTAIN CONSUMERS.

    Section 605A of the Fair Credit Reporting Act (15 U.S.C. 1681c-
1(a)), as amended by section 804, is further amended by adding at the 
end the following:
    ``(j) Credit Monitoring and Identity Theft Protection Services.--
            ``(1) In general.--Upon the direct request of a consumer, 
        or individual acting on behalf of or as a personal 
        representative of a consumer, a consumer reporting agency 
        described in section 603(p) that maintains a file on the 
        consumer and has received appropriate proof of the identity of 
        the requester (as described in section 1022.123 of title 12, 
        Code of Federal Regulations) shall provide the consumer with 
        credit monitoring and identity theft protection services not 
        later than 1 business day after receiving such request sent by 
        postal mail, toll-free telephone, or secure electronic means as 
        established by the agency.
            ``(2) Fees.--
                    ``(A) Classes of consumers.--The Bureau may 
                establish classes of consumers eligible to receive 
                credit monitoring and identity theft protection 
                services free of charge.
                    ``(B) No fee.--A consumer reporting agency 
                described in section 603(p) may not charge a consumer a 
                fee to receive credit monitoring and identity theft 
                protection services if the consumer or a representative 
                of the consumer--
                            ``(i) asserts in good faith a suspicion 
                        that the consumer has been or is about to 
                        become a victim of identity theft, fraud, or a 
                        related crime, or harmed by the unauthorized 
                        disclosure of the consumer's financial or 
                        personally identifiable information;
                            ``(ii) is unemployed and intends to apply 
                        for employment in the 60-day period beginning 
                        on the date on which the request is made;
                            ``(iii) is a recipient of public welfare 
                        assistance;
                            ``(iv) is an active duty military consumer;
                            ``(v) is 65 years of age or older; or
                            ``(vi) is a member of a class established 
                        by the Bureau under subparagraph (A).
            ``(3) Bureau rulemaking.--The Bureau shall issue 
        regulations--
                    ``(A) to define the scope of credit monitoring and 
                identity theft protection services required under this 
                subsection; and
                    ``(B) to set a fair and reasonable fee that a 
                consumer reporting agency may charge a consumer (other 
                than a consumer described under paragraph (2)(B)) for 
                such credit monitoring and identity theft protection 
                services.
            ``(4) Relation to state law.--This subsection does not 
        annul, alter, or affect in any manner the meaning, scope or 
        applicability of the laws of any State relating to credit 
        monitoring and identity theft protection services or other 
        similar actions, except to the extent those laws are 
        inconsistent with any provision of this title, and then only to 
        the extent of the inconsistency. For purposes of this 
        subsection, a term or provision of a State law is not 
        inconsistent with the provisions of this subsection if the term 
        or provision affords greater protection and benefit to the 
        consumer than the protection and benefit provided under this 
        subsection as determined by the Bureau, on its own motion or 
        upon the petition of any interested party.''.

SEC. 809. ENSURES REMOVAL OF INQUIRIES RESULTING FROM IDENTITY THEFT, 
              FRAUD, OR OTHER RELATED CRIME FROM CONSUMER REPORTS.

    Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681c(a)), as amended by section 308, is further amended by adding at 
the end the following:
            ``(14) Information about inquiries made for a credit report 
        based on requests that the consumer reporting agency verifies 
        were initiated as the result of identity theft, fraud, or other 
        related crime.''.

                        TITLE IX--MISCELLANEOUS

SEC. 901. DEFINITIONS RELATED TO DAYS.

    Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a), as 
amended by section 601, is further amended by adding at the end the 
following:
    ``(bb) Definitions Related to Days.--
            ``(1) Calendar day; day.--The term `calendar day' or `day' 
        means a calendar day, excluding any federally recognized 
        holiday.
            ``(2) Business day.--The term `business day' means a day 
        between and including Monday to Friday, and excluding any 
        federally recognized holiday.''.

SEC. 902. TECHNICAL CORRECTION RELATED TO RISK-BASED PRICING NOTICES.

    Section 615(h)(8) of the Fair Credit Reporting Act (15 U.S.C. 
1681m) is amended--
            (1) in subparagraph (A), by striking ``this section'' and 
        inserting ``this subsection''; and
            (2) in subparagraph (B), by striking ``This section'' and 
        inserting ``This subsection''.

SEC. 903. FCRA FINDINGS AND PURPOSE; VOIDS CERTAIN CONTRACTS NOT IN THE 
              PUBLIC INTEREST.

    (a) FCRA Findings and Purpose.--Section 602 of the Fair Credit 
Reporting Act (15 U.S.C. 1681(a)) is amended--
            (1) in subsection (a)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Many financial and non-financial decisions affecting 
        consumers' lives depend upon fair, complete, and accurate 
        credit reporting. Inaccurate and incomplete credit reports 
        directly impair the efficiency of the financial system and 
        undermine the integrity of using credit reports in other 
        circumstances, and unfair credit reporting and credit scoring 
        methods undermine the public confidence which is essential to 
        the continued functioning of the financial services system and 
        the provision of many other consumer products and services.''; 
        and
                    (B) in paragraph (4), by inserting after 
                ``agencies'' the following: ``, furnishers, and credit 
                scoring developers''; and
            (2) in subsection (b)--
                    (A) by striking ``It is the purpose of this title 
                to require'' and inserting the following: ``The purpose 
                of this title is the following:
            ``(1) To require''; and
                    (B) by adding at the end the following:
            ``(2) To prohibit any practices and procedures with respect 
        to credit reports and credit scores that are not in the public 
        interest.''.
    (b) Voiding of Certain Contracts Not in the Public Interest.--
            The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as 
        amended by section 703, is further amended--
            (1) by adding at the end the following new section:
``Sec. 636. Voiding of certain contracts not in the public interest
    ``(a) In General.--Any provision contained in a contract that 
requires a person to not follow a provision of this title, that is 
against the public interest, or that otherwise circumvents the purposes 
of this title shall be null and void.
    ``(b) Rule of Construction.--Nothing in subsection (a) shall be 
construed as affecting other provisions of a contract that are not 
described under subsection (a).''; and
            (2) in the table of contents for such Act, by adding at the 
        end the following new item:

``636. Voiding of certain contracts not in the public interest.''.

SEC. 904. GENERAL BUREAU RULEMAKING.

    Except as otherwise provided, not later than the end of the 2-year 
period beginning on the date of the enactment of this Act, the Bureau 
of Consumer Financial Protection shall issue final rules to implement 
the amendments made by this Act.
                                 <all>