[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.
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