[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1786 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1786

   To amend the Fair Credit Reporting Act 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

                           September 11, 2017

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

_______________________________________________________________________

                                 A BILL


 
   To amend the Fair Credit Reporting Act 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 ``Stopping Errors in Consumer Use and 
REporting Act of 2017'' or the ``SECURE Act of 2017''.

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 (15 U.S.C. 1681n)--
                    (A) in subsection (a), in the subsection heading, 
                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.--
            ``(1) In general.--In addition to any other remedy under 
        this section, a court may award injunctive relief to require 
        compliance with the requirements imposed under this title with 
        respect to any consumer.
            ``(2) Costs and attorney's fees.--In the event of any 
        successful action for injunctive relief under this subsection, 
        a court may award to the prevailing party costs and reasonable 
        attorney's fees (as determined by the court) incurred by the 
        prevailing party during the action.''; and
            (2) in section 617 (15 U.S.C. 1681o)--
                    (A) in subsection (a), in the subsection heading, 
                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.--
            ``(1) In general.--In addition to any other remedy under 
        this section, a court may award injunctive relief to require 
        compliance with the requirements imposed under this title with 
        respect to any consumer.
            ``(2) Costs and attorney's fees.--In the event of any 
        successful action for injunctive relief under this subsection, 
        a court may award to the prevailing party costs and reasonable 
        attorney's fees (as determined by the court) incurred by the 
        prevailing party during the action.''.
    (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) in the subparagraph heading, by striking ``(A) Knowing 
        violations.--'' and inserting ``(A) Negligent, willful, or 
        knowing violations.--''; and
            (2) in the first sentence, 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 (15 U.S.C. 1681i)--
                    (A) in subsection (a)--
                            (i) in paragraph (2)--
                                    (I) in subparagraph (A), in the 
                                second sentence, 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 the 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 (15 U.S.C. 1681s-2)--
                    (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 under 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. 
1681i) 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 the 
                Bureau shall receive from each consumer reporting 
                agency; and
                    ``(B) the frequency with which the Bureau shall 
                receive 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 
        ensure the maximum possible accuracy of the information 
        concerning the individual to whom the consumer report relates.
            ``(2) Bureau rule to ensure maximum possible accuracy.--
                    ``(A) Proposed rule.--Not later than 1 year after 
                the date of enactment of the Stopping Errors in 
                Consumer Use and REporting Act of 2017, the Bureau 
                shall issue a proposed rule establishing the procedures 
                that a consumer reporting agency shall follow to ensure 
                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 ensuring 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 at the 
end.
    (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)--
                    (A) in clause (i), by striking ``and'' at the end; 
                and
                    (B) by striking clause (ii) 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 at the end; and
            (3) in subsection (g)(1)--
                    (A) in subparagraph (A)(ii), by striking 
                ``subparagraph (D)'' and inserting ``subparagraph 
                (C)'';
                    (B) in subparagraph (B)(ii), by striking 
                ``consistent with subparagraph (C)'';
                    (C) by striking subparagraph (C); and
                    (D) 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 (15 U.S.C. 1681j), 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.--During the period beginning on 
        the effective date of the Stopping Errors in Consumer Use and 
        REporting Act of 2017 and ending on the date on which the 
        Bureau finalizes 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 Stopping Errors in 
        Consumer Use and REporting Act of 2017, without charge to the 
        consumer.''; and
                    (B) in section 615(a) (15 U.S.C. 1681m(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 that was 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 so 
                        redesignated--
                                    (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 shall receive a copy of the 
                consumer report with respect to 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 ``shall 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 ``account, or customer'' and inserting ``or 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 Stopping Errors in Consumer Use and 
        REporting Act of 2017, 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--
                            ``(i) determine the reasons for which a 
                        person--
                                    ``(I) took adverse action; or
                                    ``(II) offered credit on materially 
                                less favorable terms; and
                            ``(ii) verify the accuracy of that 
                        information; and
                    ``(B) how to provide the information described in 
                subparagraph (A) while protecting consumer privacy, 
                including procedures to ensure that the information is 
                provided to the consumer at the appropriate address.''.

SEC. 4. REGULATORY REFORM.

    Section 621 of the Fair 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 Stopping Errors in Consumer 
        Use and REporting Act of 2017, the Bureau shall establish 3 
        publicly available registries of consumer reporting agencies, 
        including a registry that contains--
                    ``(A) each consumer reporting agency that compiles 
                and maintains files on consumers on a nationwide basis;
                    ``(B) each nationwide specialty consumer reporting 
                agency; and
                    ``(C) all other consumer reporting agencies that 
                are not included under section 603(p) or 603(x).
            ``(2) Registration requirement.--Each consumer reporting 
        agency shall register with a registry 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 with respect to which, under this section, a consumer 
        reporting agency--
                    ``(A) maintains 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, 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 that compiles 
and maintains files on consumers on a nationwide basis shall, upon 
request by, and receipt of appropriate proof of identity of, a minor 
consumer or the covered guardian of a minor consumer--
            ``(1) create a blocked file for the minor consumer; or
            ``(2) convert a file of the minor consumer already in 
        existence to a blocked file.
    ``(c) Unblocking a File.--A consumer reporting agency that compiles 
and maintains files on consumers on a nationwide basis 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 representation that--
                    ``(A) the consumer was a minor consumer when the 
                consumer was not a minor consumer as of the date on 
                which the representation was made; and
                    ``(B) an individual was the covered guardian of a 
                minor consumer when the individual was not the covered 
                guardian of the minor consumer as of the date on which 
                the representation was made;
            ``(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 to 
carry 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.--Nothing in this section may be construed as 
requiring a consumer reporting agency that compiles and maintains files 
on consumers on a nationwide basis 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 relating to section 605B the following:

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

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

    (a) Study.--Not later than 180 days after the date of enactment of 
this Act, the Comptroller General of the United States shall conduct 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 
        government-administered consumer credit reporting systems that 
        are in existence as of the date on which the Comptroller 
        General begins conducting the study;
            (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 reporting system; 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 of the study conducted under 
subsection (a).

SEC. 7. EFFECTIVE DATE.

    Except as otherwise provided in this Act and the amendments made by 
this Act, this Act and the amendments made by this Act shall take 
effect on the date that is 180 days after the date of enactment of this 
Act.
                                 <all>