[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1847 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1847

To enhance the accuracy of credit reporting and provide greater rights 
to consumers who dispute errors in their credit reports, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 23, 2015

 Mr. Schatz (for himself, Ms. Warren, Mr. Blumenthal, Mr. Sanders, Mr. 
 Merkley, and Mrs. McCaskill) introduced the following bill; which was 
read twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
To enhance the accuracy of credit reporting and provide greater rights 
to consumers who dispute errors in their credit reports, 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 ``Stop Errors in Credit Use and 
Reporting Act'' or the ``SECURE Act''.

SEC. 2. LEGAL RECOURSE FOR CONSUMERS.

    (a) Injunctive Relief.--The Fair Credit Reporting Act (15 U.S.C. 
1681 et seq.) is amended--
            (1) in section 616--
                    (A) in subsection (a), by striking ``(a) In 
                General.--'' and inserting ``(a) Damages.--'';
                    (B) by redesignating subsections (c) and (d) as 
                subsections (d) and (e), respectively; and
                    (C) by inserting after subsection (b) the 
                following:
    ``(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 striking ``(a) In 
                General.--'' and inserting ``(a) Damages.--'';
                    (B) by redesignating subsection (b) as subsection 
                (c); and
                    (C) by inserting after subsection (a) the 
                following:
    ``(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 striking ``(A) Knowing violations.--'' and inserting 
        ``(A) Negligent, willful, or knowing violations.--''; and
            (2) by inserting ``negligent, willful, or'' before 
        ``knowing''.

SEC. 3. INCREASED REQUIREMENTS FOR CONSUMER REPORTING AGENCIES AND 
              FURNISHERS OF INFORMATION.

    (a) Provision and Consideration of Documentation Provided by 
Consumers.--The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is 
amended--
            (1) in section 611--
                    (A) in subsection (a)--
                            (i) in paragraph (2)--
                                    (I) in subparagraph (A), by 
                                inserting ``, including all 
                                documentation provided by the 
                                consumer'' after ``received from the 
                                consumer or reseller''; and
                                    (II) in subparagraph (B), by 
                                inserting ``, including all 
                                documentation provided by the 
                                consumer,'' after ``from the consumer 
                                or reseller''; and
                            (ii) in paragraph (4), by inserting ``, 
                        including all documentation,'' after ``relevant 
                        information''; and
                    (B) in subsection (f)(2)(B)(ii), by inserting ``, 
                including all documentation,'' after ``relevant 
                information''; and
            (2) in section 623--
                    (A) in subsection (a)(8)(E), by striking clause 
                (ii) and inserting the following:
                            ``(ii) review and consider all relevant 
                        information, including all documentation, 
                        provided by the consumer with the notice;''; 
                        and
                    (B) in subsection (b)(1), by striking subparagraph 
                (B) and inserting the following:
                    ``(B) review and consider all relevant information, 
                including all documentation, provided by the consumer 
                reporting agency pursuant to section 611(a)(2);''.
    (b) Gathering and Reporting of Information Relating to Consumer 
Disputes.--Section 611 of the Fair Credit Reporting Act (15 U.S.C. 1681 
et seq.) is amended by adding at the end the following:
    ``(g) Gathering and Reporting of Information Relating to Consumer 
Disputes.--
            ``(1) Reports required.--The Bureau shall provide reports 
        regarding the disputes described in subsection (a)(1) received 
        by consumer reporting agencies in such intervals and to such 
        parties as the Bureau deems appropriate.
            ``(2) Gathering of information.--The Bureau shall prescribe 
        rules for the gathering of information relating to disputes 
        described in subsection (a)(1) received by consumer reporting 
        agencies to be used in generating the reports under paragraph 
        (1), including rules establishing--
                    ``(A) the type and format of information that shall 
                be received by the Bureau from each consumer reporting 
                agency; and
                    ``(B) the frequency of receipt of the information 
                from consumer reporting agencies.''.
    (c) Accuracy Compliance Procedures.--Section 607 of the Fair Credit 
Reporting Act (15 U.S.C. 1681e) is amended by striking subsection (b) 
and inserting the following:
    ``(b) Accuracy of Report.--
            ``(1) In general.--A consumer reporting agency shall follow 
        reasonable procedures when preparing a consumer report to 
        assure maximum possible accuracy of the information concerning 
        the individual to whom the consumer report relates.
            ``(2) Bureau rule to assure maximum possible accuracy.--
                    ``(A) Proposed rule.--Not later than 1 year after 
                the date of enactment of the Stop Errors in Credit Use 
                and Reporting Act, the Bureau shall issue a proposed 
                rule establishing the procedures that a consumer 
                reporting agency must follow to assure maximum possible 
                accuracy of all consumer reports furnished by the 
                agency in compliance with this subsection.
                    ``(B) Considerations.--When formulating the rule 
                required under subparagraph (A), the Bureau shall 
                consider if requiring the matching of the following 
                information would improve the accuracy of consumer 
                reports:
                            ``(i) The first name and last name of a 
                        consumer.
                            ``(ii) The date of birth of a consumer.
                            ``(iii) All 9 digits of the social security 
                        number of a consumer.
                            ``(iv) Any other information that the 
                        Bureau determines would aid in assuring maximum 
                        possible accuracy of all consumer reports 
                        furnished by consumer reporting agencies in 
                        compliance with this subsection.''.
    (d) Responsibilities of Furnishers of Information to Consumer 
Reporting Agencies.--Section 623(a)(8)(F)(i)(II) of the Fair Credit 
Reporting Act (15 U.S.C. 1681s-2(a)(8)(F)(i)(II)) is amended by 
inserting ``, and does not include any new or additional information 
that would be relevant to a reinvestigation'' before the period.
    (e) Disclosures to Consumers.--Section 609 of the Fair Credit 
Reporting Act (15 U.S.C. 1681g) is amended--
            (1) in subsection (a)(3)(B), by striking ``; and'' and all 
        that follows through the end of subparagraph (B) and inserting 
        the following:
                            ``(ii) the address and telephone number of 
                        the person; and
                            ``(iii) the permissible purpose of the 
                        person for obtaining the consumer report, 
                        including the specific type of credit product 
                        that is extended, reviewed, or collected as 
                        described in section 604(a)(3)(A).'';
            (2) in subsection (f)--
                    (A) by amending paragraph (7)(A) to read as 
                follows:
                    ``(A) supply the consumer with a credit score 
                that--
                            ``(i) is derived from a credit scoring 
                        model that is widely distributed to users by 
                        the consumer reporting agency for the purpose 
                        of any extension of credit or other transaction 
                        designated by the consumer who is requesting 
                        the credit score; or
                            ``(ii) is widely distributed to lenders of 
                        common consumer loan products and predicts the 
                        future credit behavior of the consumer; and''; 
                        and
                    (B) in paragraph (8), by inserting ``, except that 
                a credit score shall be provided free of charge to the 
                consumer if requested in connection with a free annual 
                consumer report described in section 612(a)'' before 
                the period; and
            (3) in subsection (g)(1)--
                    (A) by striking subparagraph (C); and
                    (B) by redesignating subparagraphs (D) through (G) 
                as subparagraphs (C) through (F), respectively.
    (f) Notification Requirements.--
            (1) Adverse information notification.--The Fair Credit 
        Reporting Act (15 U.S.C. 1681 et seq.) is amended--
                    (A) in section 612, by striking subsection (b) and 
                inserting the following:
    ``(b) Free Disclosure After Notice of Adverse Action or Offer of 
Credit on Materially Less Favorable Terms.--
            ``(1) In general.--Not later than 14 days after the date on 
        which a consumer reporting agency receives a notification under 
        subsection (a)(2) or (h)(6) of section 615, or from a debt 
        collection agency affiliated with the consumer reporting 
        agency, the consumer reporting agency shall make, without 
        charge to the consumer, all disclosures required in accordance 
        with the rules prescribed by the Bureau under section 609(h).
            ``(2) Transition period.--After the effective date of the 
        provisions of the Stop Errors in Credit Use and Reporting Act 
        and before the Bureau has finalized the rule required under 
        section 609(h), a consumer reporting agency that is required to 
        make disclosures under this subsection shall provide to the 
        consumer a copy of the current credit report on the consumer 
        and any other disclosures required under this Act or the Stop 
        Errors in Credit Use and Reporting Act, without charge to the 
        consumer.''; and
                    (B) in section 615(a)--
                            (i) by redesignating paragraphs (2), (3), 
                        and (4) as paragraphs (3), (4), and (5) 
                        respectively;
                            (ii) by inserting after paragraph (1) the 
                        following:
            ``(2) direct the consumer reporting agency that provided 
        the consumer report used in the decision to take the adverse 
        action to provide the consumer with the disclosures described 
        in section 612(b);''; and
                            (iii) in paragraph (5), as redesignated by 
                        this paragraph--
                                    (I) in the matter preceding 
                                subparagraph (A), by striking ``of the 
                                consumer's right'';
                                    (II) by striking subparagraph (A) 
                                and inserting the following:
                    ``(A) that the consumer will receive a copy of the 
                consumer report on the consumer, free of charge, from 
                the consumer reporting agency that furnished the 
                consumer report; and''; and
                                    (III) in subparagraph (B), by 
                                inserting ``of the right of the 
                                consumer'' before ``to dispute''.
            (2) Notification in cases of less favorable terms.--Section 
        615(h) of the Fair Credit Reporting Act (15 U.S.C. 1681m(h)) is 
        amended--
                    (A) in paragraph (1), by striking ``paragraph (6)'' 
                and inserting ``paragraph (7)'';
                    (B) in paragraph (2), by striking ``paragraph (6)'' 
                and inserting ``paragraph (7)'';
                    (C) in paragraph (5)(C), by striking ``may obtain'' 
                and inserting ``will receive'';
                    (D) by redesignating paragraphs (6), (7), and (8) 
                as paragraphs (7), (8), and (9), respectively; and
                    (E) by inserting after paragraph (5) the following:
            ``(6) Reports provided to consumers.--A person who uses a 
        consumer report as described in paragraph (1) shall notify and 
        direct the consumer reporting agency that provided the consumer 
        report to provide the consumer with the disclosures described 
        in section 612(b).''.
            (3) Notification of subsequent submissions of negative 
        information.--Section 623(a)(7)(A)(ii) of the Fair Credit 
        Reporting Act (15 U.S.C. 1681s-2(a)(7)(A)(ii)) is amended by 
        striking ``or customer'' and inserting ``or'' before 
        ``account''.
            (4) Bureau rule defining certain disclosure requirements.--
        Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g) 
        is amended by adding at the end the following:
    ``(h) Bureau Rule Defining Certain Disclosure Requirements.--
            ``(1) Proposed rule.--Not later than 1 year after the date 
        of enactment of the Stop Errors in Credit Use and Reporting 
        Act, the Bureau shall publish a proposed rule to implement the 
        disclosure requirements described in section 612(b).
            ``(2) Considerations.--In formulating the rule required 
        under paragraph (1), the Bureau shall consider--
                    ``(A) what information would enable consumers to 
                determine the reasons for which a person took adverse 
                action or offered credit on materially less favorable 
                terms and to verify the accuracy of such information; 
                and
                    ``(B) how to provide the information described in 
                subparagraph (A) while protecting consumer privacy, 
                including procedures to ensure that such information is 
                provided to the consumer at the appropriate address.''.

SEC. 4. REGULATORY REFORM.

    Section 621 of the Federal Credit Reporting Act (15 U.S.C. 1681s) 
is amended by adding at the end the following:
    ``(h) Consumer Reporting Agency Registry.--
            ``(1) Establishment of registry.--Not later than 180 days 
        after the date of enactment of the Stop Errors in Credit Use 
        and Reporting Act, the Bureau shall establish 3 publicly 
        available registries of consumer reporting agencies, 
        including--
                    ``(A) a registry of nationwide consumer reporting 
                agencies as described in section 603(p);
                    ``(B) a registry of nationwide specialty consumer 
                reporting agencies as defined in section 603(x); and
                    ``(C) a registry of all other consumer reporting 
                agencies included under section 603(f) that are not 
                included under section 603(p) or 603(x).
            ``(2) Registration requirement.--All consumer reporting 
        agencies as defined in section 603(f) must register with one of 
        the registries established by the Bureau under this subsection 
        in a timeframe established by the Bureau.''.

SEC. 5. IDENTITY THEFT PROTECTION FOR MINORS.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.) is amended by inserting after section 605B (15 U.S.C. 1681c-2) 
the following:

``SEC. 605C. ADDITIONAL PROTECTIONS FOR CREDIT REPORTS OF MINOR 
              CONSUMERS.

    ``(a) Definitions.--In this section--
            ``(1) the term `blocked file' means a file of a minor 
        consumer in which, under this section, a consumer reporting 
        agency--
                    ``(A) maintains a file with the name, social 
                security number, date of birth, and, if applicable, any 
                credit information of the minor consumer;
                    ``(B) may not provide any person with a consumer 
                report of the minor consumer; and
                    ``(C) blocks the input of any information into the 
                file, except with permission from a covered guardian of 
                the minor consumer;
            ``(2) the term `covered guardian' means--
                    ``(A) the legal guardian of a minor child;
                    ``(B) the custodian of a minor child; or
                    ``(C) in the case of a child in foster care, the 
                State agency or Indian tribe or tribal organization 
                responsible for the foster care of the child; and
            ``(3) the term `minor consumer' means a consumer who has 
        not attained 16 years of age.
    ``(b) Blocking a File.--A consumer reporting agency described in 
section 603(p) shall, upon request by, and receipt of appropriate proof 
of identity of, the covered guardian or minor consumer, create a 
blocked file for the minor consumer or convert a file of the minor 
consumer already in existence to a blocked file.
    ``(c) Unblocking a File.--A consumer reporting agency described in 
section 603(p) shall unblock a blocked file--
            ``(1) upon request by the covered guardian of a minor 
        consumer;
            ``(2) if the file was blocked as a result of a material 
        misrepresentation, including--
                    ``(A) a representation that the consumer was a 
                minor consumer when the consumer was not a minor 
                consumer at the time of the representation; and
                    ``(B) a representation that an individual was the 
                covered guardian of a minor consumer when the 
                individual was not the covered guardian of the minor 
                consumer at the time of the representation;
            ``(3) on the date of the 16th birthday of the minor 
        consumer; or
            ``(4) if the minor consumer becomes emancipated under the 
        law of the State in which the minor consumer resides, on the 
        date of the emancipation of the minor consumer.
    ``(d) Regulations.--The Bureau shall promulgate regulations 
carrying out this section.
    ``(e) Fees.--
            ``(1) In general.--A credit reporting agency may charge a 
        fair and reasonable fee, as determined by the Bureau, to create 
        a blocked file or to unblock a file.
            ``(2) Exemption.--The Bureau may exempt an individual who 
        suspects that the individual has been a victim of fraud or 
        identity theft from a fee described in paragraph (1).
    ``(f) Exceptions.--No provision of this section shall be construed 
as requiring a consumer reporting agency described in section 603(p) to 
prevent a Federal, State, or local law enforcement agency from 
accessing a blocked file.''.
    (b) Table of Contents Amendment.--The table of contents of the Fair 
Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended by inserting 
after the item related to section 605B the following new item:

``605C. Additional protections for credit reports of minor 
                            consumers.''.

SEC. 6. STUDY OF A PUBLIC CREDIT REPORTING SYSTEM.

    (a) Study.--Not later than 6 months after the date of enactment of 
this Act, the Comptroller General of the United States shall undertake 
a study--
            (1) of credit systems in the international credit system 
        with government-administered consumer credit reporting systems;
            (2) of available information regarding the accuracy of 
        existing government-administered consumer credit reporting 
        systems;
            (3) to evaluate the feasibility of a national, government-
        administered consumer credit reporting system;
            (4) of any consumer benefits that might reasonably be 
        expected to result from a government-administered consumer 
        credit report; and
            (5) of any costs that might result from a government-
        administered consumer credit reporting system in the United 
        States.
    (b) Publication of Findings.--Not later than 18 months after the 
date of enactment of this Act, the Comptroller General of the United 
States shall publish the findings under subsection (a).

SEC. 7. EFFECTIVE DATE.

    Except as otherwise provided in this Act and the amendments made by 
this Act, the provisions of this Act and the amendments made by this 
Act shall take effect 6 months after the date of enactment of this Act.
                                 <all>