[Congressional Record Volume 140, Number 50 (Monday, May 2, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 2, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                 CONSUMER REPORTING REFORM ACT OF 1994

  The PRESIDING OFFICER. Under the previous order, the Senate will now 
proceed to consideration of S. 783. The clerk will report.
  The legislative clerk read as follows:

       A bill (S. 783) to amend the Fair Credit Reporting Act, and 
     for other purposes.

  The Senate proceeded to consider the bill which had been reported 
from the Committee on Banking, Housing, and Urban Affairs, with an 
amendment to strike all after the enacting clause and inserting in lieu 
thereof the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Consumer 
     Reporting Reform Act of 1994''.
       (b) Table of Contents.--The following is a table of 
     contents for this Act:

Sec. 1. Short title; table of contents.

          TITLE I--AMENDMENTS TO THE FAIR CREDIT REPORTING ACT

Sec. 101. Definitions.
Sec. 102. Furnishing and using reports; use of information obtained 
              from reports.
Sec. 103. Amendments relating to prescreening of consumer reports.
Sec. 104. Amendments relating to obsolete information and information 
              contained in consumer reports.
Sec. 105. Amendments relating to compliance procedures.
Sec. 106. Amendments relating to consumer disclosures.
Sec. 107. Amendments relating to procedures in case of the disputed 
              accuracy of any information in a consumer's file. 
Sec. 108. Amendment relating to charges for disclosure.
Sec. 109. Amendments relating to duties of users of consumer reports.
Sec. 110. Amendments relating to civil liability.
Sec. 111. Amendments relating to responsibilities of persons who 
              furnish information to consumer reporting agencies.
Sec. 112. State action to enforce Act.
Sec. 113. Administrative enforcement.
Sec. 114. Establishment of toll-free telephone number.
Sec. 115. Action by FTC.
Sec. 116. Relation to State laws.
Sec. 117. Fair debt collection practices.
Sec. 118. Effective dates.

                 TITLE II--CREDIT REPAIR ORGANIZATIONS

Sec. 201. Regulation of credit repair organizations.
          TITLE I--AMENDMENTS TO THE FAIR CREDIT REPORTING ACT

     SEC. 101. DEFINITIONS.

       (a) Adverse Action.--Section 603 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a) is amended by adding at the 
     end the following new subsection:
       ``(k) The term `adverse action', when used in connection 
     with an action based in whole or in part on information 
     contained in a consumer report, means an action that is 
     adverse or less favorable to the interest of the consumer who 
     is the subject of the report. Without limiting the general 
     applicability of the foregoing, the following constitute 
     adverse actions:
       ``(1) Credit.--
       ``(A) Actions included.--A denial or revocation of credit, 
     an increase in the charge for credit, an adverse change in 
     the terms of an existing credit arrangement, or a refusal to 
     grant credit in substantially the amount or on substantially 
     the terms requested.
       ``(B) Actions not included.--For the purposes of this 
     paragraph, the term `adverse action' does not include--
       ``(i) an attempt to collect a debt owed or allegedly owed;
       ``(ii) an action taken with respect to a credit or 
     insurance transaction that is not initiated by the consumer 
     if--

       ``(I) no change is made with respect to the interests of 
     the consumer; or
       ``(II) a change is made that is not unfavorable to the 
     interests of the consumer; and

       ``(iii) an action taken with respect to the review of an 
     account under section 604(a)(3)(A), if--

       ``(I) no change is made with respect to the interests of 
     the consumer; or
       ``(II) a change is made that is not unfavorable to the 
     interests of the consumer.

       ``(2) Employment.--A denial of employment or other adverse 
     or less favorable decision relating to employment.
       ``(3) Insurance.--A denial or cancellation of, an increase 
     in any charge for, or reduction or other adverse or 
     unfavorable change in the terms of coverage or amount of, any 
     insurance, existing or applied for, in connection with the 
     underwriting of insurance.
       ``(4) License or benefit.--A denial or cancellation of, or 
     an increase in any charge for, or any other adverse or 
     unfavorable change in the terms of, any license or benefit 
     described in section 604(a)(3)(D).
       ``(5) Consumer initiated business transaction.--A denial or 
     cancellation of, or any other adverse or unfavorable change 
     in the terms of, any business transaction that the consumer 
     has initiated or sought to initiate.''.
       (b) Definition of Consumer Report.--Section 603(d) of the 
     Fair Credit Reporting Act (15 U.S.C. 1681a(d)) is amended in 
     the second sentence--
       (1) by inserting before the semicolon at the end of 
     subparagraph (A) ``, or any communication of that information 
     or information (i) from a credit application by a consumer, 
     provided that it is clearly and conspicuously disclosed to 
     the consumer with the application that the information may be 
     provided to such entities and the consumer does not prohibit 
     such disclosure (in writing, using a signature line that is 
     separate and distinct from that used for the consumer's 
     consent to the extension of credit); or (ii) among the person 
     making the report, an entity related by common ownership to 
     that person, and an entity affiliated by corporate control 
     with that person'';
       (2) in subparagraph (B), by striking ``or'' after the 
     semicolon at the end; and
       (3) in subparagraph (C), by striking the period at the end 
     and inserting the following: ``; or (D) any communication of 
     information about a consumer between persons who are 
     affiliated by common ownership or common corporate control 
     and in connection with a credit or insurance transaction that 
     is not initiated by the consumer, if either person has 
     complied with section 615(d)(2)(B) with respect to a consumer 
     report from which the information is taken and the consumer 
     has consented to use of the report for the transaction in 
     accordance with section 615(d)(2)(C).''.
       (c) Firm Offer.--Section 603 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681a), as amended by subsection (a), is 
     amended by adding at the end the following new subsection:
       ``(l) The term `firm offer' means an offer of credit or 
     insurance to a consumer that will be honored by the offeror 
     if--
       ``(1) based on information in the consumer report on the 
     consumer or other information bearing on the creditworthiness 
     of the consumer, the consumer is determined to meet the 
     criteria used to select consumers for the offer; and
       ``(2) the information provided by the consumer in the 
     application in response to the offer--
       ``(A) is not determined to be incorrect or inadequate; and
       ``(B) meets the criteria established by the offeror in 
     advance of the offer for such extension of credit or 
     insurance.''.
       (d) Credit or Insurance Transaction That Is Not Initiated 
     by the Consumer.--Section 603 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681a), as amended by subsection (c), is 
     amended by adding at the end the following new subsection:
       ``(m) The term `credit or insurance transaction that is not 
     initiated by the consumer' does not include the use of a 
     consumer report by a person with whom the consumer has an 
     account, for purposes of--
       ``(1) reviewing the account; or
       ``(2) collecting the account.''.

     SEC. 102. FURNISHING AND USING REPORTS; USE OF INFORMATION 
                   OBTAINED FROM REPORTS.

       (a) Use of Reports for Employment and Business Purposes.--
     Section 604 of the Fair Credit Reporting Act (15 U.S.C. 
     1681b) is amended--
       (1) by striking ``A consumer reporting agency may furnish'' 
     and inserting the following:
       ``(a) In General.--A consumer reporting agency may 
     furnish'';
       (2) in subsection (a)(3)(A) (as designated by paragraph 
     (1)), by striking ``and involving the'' and all that follows 
     through the semicolon and inserting ``or involving the 
     extension of credit to, or review or collection of a credit 
     or other account of, the consumer;'';
       (3) in subsection (a)(3) (as designated by paragraph (1)), 
     by striking subparagraph (E) and inserting the following:
       ``(E) otherwise has a legitimate business need for the 
     information in connection with a business transaction that--
       ``(i) is initiated by the consumer; or
       ``(ii) is a direct marketing transaction for which the 
     furnishing of a consumer report by the agency is not 
     prohibited under subsection (e).''; and
       (4) by adding at the end the following new subsection:
       ``(b) Conditions for Furnishing and Using Consumer Reports 
     for Employment Purposes.--
       ``(1) Certification from user.--A consumer reporting agency 
     may furnish a consumer report for employment purposes only--
       ``(A) if the person who obtains such report from the agency 
     certifies to the agency that--
       ``(i) the disclosure required under paragraph (2) has been 
     made and, if necessary, the disclosure required under 
     paragraph (3), shall be made; and
       ``(ii) information from the consumer report will not be 
     used in violation of any applicable Federal or State equal 
     employment opportunity law or regulation; and
       ``(B) if the consumer reporting agency provides with the 
     report a summary of the consumer's rights under this title, 
     as prescribed in accordance with section 609(c)(3).
       ``(2) Disclosures to prospective and current employees.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a person may not procure a consumer report, or cause a 
     consumer report to be procured, for employment purposes with 
     respect to a prospective or current employee unless--
       ``(i) the prospective or current employee has received, 
     before the report is procured, a clear and conspicuous 
     disclosure made in writing that consumer reports may be used 
     for employment purposes; and
       ``(ii) the prospective or current employee has provided a 
     general or specific written authorization for the procurement 
     of the report prior to such procurement.
       ``(B) Written material constituting notice.--A written 
     statement that consumer reports may be used for employment 
     purposes which is contained in employee guidelines or manuals 
     available to employees and prospective employees or included 
     in written materials provided to employees or prospective 
     employees shall constitute a written disclosure for purposes 
     of subparagraph (A).
       ``(3) Conditions on use for adverse actions.--Before taking 
     an adverse action based on a consumer report used for 
     employment purposes, a person shall provide to the consumer 
     to whom the report relates--
       ``(A) a copy of the report;
       ``(B) a description of the consumer's rights under this 
     title, as prescribed in accordance with section 609(c)(3); 
     and
       ``(C) a reasonable opportunity (not more than 5 business 
     days following the receipt of the report by the consumer) to 
     respond to any information in the report that is disputed by 
     the consumer, except that if the person has a reasonable 
     belief that the consumer has engaged in fraudulent or 
     criminal activity, no such opportunity to respond shall be 
     required.''.
       (b) Use of Information Obtained From Reports.--Section 604 
     of the Fair Credit Reporting Act (15 U.S.C. 1681b), as 
     amended by subsection (a), is amended by adding at the end 
     the following new subsection:
       ``(c) Certain Use or Obtaining of Information Prohibited.--
     A person shall not use or obtain information from a consumer 
     report for any purpose unless--
       ``(1) it is obtained for a purpose for which the consumer 
     report is authorized to be furnished under subsection (a); 
     and
       ``(2) the purpose is certified in accordance with section 
     607 by a prospective user of the report.''.
       (c) Disclosure of Consumer Reports by Users.--Section 607 
     of the Fair Credit Reporting Act (15 U.S.C. 1681e) is amended 
     by adding at the end the following new subsection:
       ``(c) Disclosure of Consumer Reports by Users Allowed.--A 
     consumer reporting agency may not prohibit a user of a 
     consumer report furnished by the agency on a consumer from 
     disclosing the contents of the report to the consumer if 
     adverse action against the consumer has been taken or is 
     contemplated by the user of the consumer report, based in 
     whole or in part on the report.''.
       (d) Use of Reports To Establish and Enforce Child Support 
     Orders.--Section 604(a) of the Fair Credit Reporting Act (15 
     U.S.C. 1681b), as amended by subsections (a) and (b), is 
     amended by adding at the end the following new paragraph:
       ``(4) In response to a request from the head of the agency, 
     department, or office (or an official authorized by the head 
     of that agency, department, or office) that is responsible 
     under law for obtaining child support orders, in order to 
     establish an individual's obligation to make child support 
     payments or to determine the appropriate level of such 
     payments. Any consumer report obtained pursuant to this 
     paragraph shall be kept confidential (other than for its use 
     in connection with a public hearing related to child support) 
     and shall not be used in connection with any other civil, 
     administrative, or criminal proceeding.''.

     SEC. 103. AMENDMENTS RELATING TO PRESCREENING OF CONSUMER 
                   REPORTS.

       (a) In General.--Section 604 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681b), as amended by section 102, is 
     amended--
       (1) in subsection (a), by striking ``A consumer reporting 
     agency'' and inserting ``Subject to subsection (d), a 
     consumer reporting agency''; and
       (2) by adding at the end the following new subsection:
       ``(d) Limitations on Reports Relating to Credit or 
     Insurance Transactions Not Initiated by the Consumer.--
       ``(1) In general.--A consumer reporting agency may furnish 
     a consumer report relating to a consumer pursuant to 
     subsection (a)(3)(A) to any person referred to in such 
     subsection in connection with any credit or insurance 
     transaction that is not initiated by the consumer only if--
       ``(A) the consumer authorizes the agency to provide such 
     report to such person; or
       ``(B)(i) the transaction consists of a firm offer of credit 
     or insurance;
       ``(ii) the consumer reporting agency has complied with 
     subsection (f); and
       ``(iii) the consumer has not elected in accordance with 
     subsection (f)(1) to have the consumer's name and address 
     excluded from lists provided by the agency.
       ``(2) Limits on information received under paragraph 
     (1)(b).--A person may receive pursuant to paragraph (1)(B) 
     only--
       ``(A) the name and address of a consumer; and
       ``(B) information pertaining to a consumer that is not 
     identified or identifiable with the consumer.
       ``(3) Information regarding inquiries.--Except as provided 
     in section 609(a)(4), a consumer reporting agency shall not 
     furnish to any person a record of inquiries resulting from 
     credit or insurance transactions that are not initiated by a 
     consumer.''.
       (b) Furnishing Consumer Reports for Direct Marketing 
     Transactions.--Section 604 of the Fair Credit Reporting Act 
     (15 U.S.C. 1681b), as amended by subsection (a), is amended 
     by adding at the end the following new subsections:
       ``(e) Furnishing Consumer Reports for Direct Marketing 
     Transactions Not Initiated by Consumer.--
       ``(1) Furnishing reports prohibited.--Except as provided in 
     subsection (d), a consumer reporting agency may not furnish a 
     consumer report for use for a direct marketing transaction 
     that is not initiated by the consumer to whom the report 
     relates, if--
       ``(A) the consumer notifies the agency that the consumer 
     does not consent to that use;
       ``(B) the report includes any information other than the 
     name and address of the consumer; or
       ``(C) furnishing the information would disclose the credit 
     payment history, credit limit, credit balance, or any 
     negative information pertaining to the consumer.
       ``(2) Notification.--A consumer may notify a consumer 
     reporting agency for purposes of paragraph (1)(A) either--
       ``(A) in writing; or
       ``(B) in the case of an agency that compiles and maintains 
     files on consumers on a nationwide basis, by calling the 
     toll-free telephone number established pursuant to subsection 
     (f)(3).
       ``(f) Election of Consumer To Be Excluded From Lists.--
       ``(1) In general.--A consumer may elect to have such 
     consumer's name and address excluded from any list provided 
     by a consumer reporting agency pursuant to subsection 
     (d)(1)(B) or (e)(2), by--
       ``(A) notifying the agency, in writing or through the 
     notification system maintained by the agency under paragraph 
     (3), that the consumer does not consent to any use of 
     consumer reports relating to the consumer in connection with 
     any credit or insurance transaction that is not initiated by 
     the consumer or in connection with a direct marketing 
     transaction that is not initiated by the consumer; or
       ``(B) returning to the agency a signed written notice of 
     the election, as provided by the agency in accordance with 
     paragraph (2).
       ``(2) Provision of written notice to consumer.--A consumer 
     reporting agency shall mail to a consumer a written notice 
     for purposes of paragraph (1)(B), not later than 5 business 
     days after being notified of the election of the consumer in 
     accordance with paragraph (1)(A).
       ``(3) Notification system.--Each consumer reporting agency 
     that furnishes a consumer report pursuant to subsection 
     (d)(1)(B) in connection with any credit or insurance 
     transaction that is not initiated by a consumer or pursuant 
     to subsection (e) in connection with any direct marketing 
     transaction that is not initiated by the consumer, shall 
     establish and maintain a notification system, including a 
     toll-free telephone number, which permits a consumer whose 
     consumer report is maintained by the agency to notify the 
     agency, with appropriate identification, of the consumer's 
     election to have the consumer's name and address excluded 
     from any list of names and addresses provided by the agency 
     or its affiliates pursuant to subsection (d)(1)(B) or (e)(2). 
     Establishment and maintenance of a nationwide notification 
     system and publication by a consumer reporting agency on a 
     nationwide basis in accordance with this paragraph shall be 
     considered to fulfill the requirements of this paragraph with 
     respect to each affiliate of the agency.
       ``(4) Agencies operating nationwide.--Each consumer 
     reporting agency that compiles and maintains files on 
     consumers on a nationwide basis shall establish and maintain 
     a notification system under paragraph (3) jointly with other 
     such consumer reporting agencies.
       ``(5) Effectiveness of election.--An election of a consumer 
     under paragraph (1)--
       ``(A) shall be effective with respect to a consumer 
     reporting agency beginning on the date on which the consumer 
     notifies the agency in accordance with paragraph (1)(A);
       ``(B) shall be effective--
       ``(i) for a period of 2 years after that effective date; or
       ``(ii) permanently, as may be specified by the consumer in 
     his or her notification of election under paragraph (1)(B), 
     except that the consumer may notify the agency at any time of 
     a change of election in accordance with paragraph (1);
       ``(C) shall be effective with respect to each affiliate of 
     the consumer reporting agency; and
       ``(D) shall be effective with respect to any list provided 
     by a consumer reporting agency pursuant to subsection 
     (d)(1)(B) or (e)(2), unless otherwise specified by the 
     consumer.''.
       (c) First Notifications by Consumers.--Not later than 1 
     year after the date of enactment of this Act, each consumer 
     reporting agency that furnishes a consumer report pursuant to 
     subsection (d) or (e) of section 604 shall establish and 
     thereafter maintain a notification system in accordance with 
     section 604(f).

     SEC. 104. AMENDMENTS RELATING TO OBSOLETE INFORMATION AND 
                   INFORMATION CONTAINED IN CONSUMER REPORTS.

       (a) Repeal of Exemption Provisions.--Section 605(a) of the 
     Fair Credit Reporting Act (15 U.S.C. 1681c(a)) is amended in 
     subsection (a), by striking ``(a) Except as authorized under 
     subsection (b) of this section, no'' and inserting ``(a) 
     Obsolete Information.--Except as otherwise specifically 
     authorized, no''.
       (b) Additional Information on Bankruptcy Filings 
     Required.--Section 605(b) of the Fair Credit Reporting Act 
     (15 U.S.C. 1681c(b)) is amended to read as follows:
       ``(b) Information Required To Be Disclosed.--A consumer 
     reporting agency that furnishes a consumer report that 
     contains information regarding any case involving the 
     consumer which arises under title 11, United States Code, 
     shall include in the report an identification of the chapter 
     of such title 11 under which such case arises if provided by 
     the source of the information. If any case arising or filed 
     under such title 11 is withdrawn by the consumer prior to a 
     final judgment, the consumer reporting agency shall include 
     in the report that such case or filing was withdrawn upon 
     receipt of documentation certifying such withdrawal.''.
       (c) Clarification of Reporting Period.--Section 605 of the 
     Fair Credit Reporting Act (15 U.S.C. 1681c) is amended by 
     adding at the end the following new subsection:
       ``(c) Running of Reporting Period.--The 7-year period 
     referred to in paragraphs (4) and (6) of subsection (a) shall 
     begin, with respect to a delinquent account that is placed 
     for collection (internally or by referral to a third party, 
     whichever is earlier), charged to profit and loss, or 
     subjected to any similar action, upon the expiration of the 
     180-day period beginning on the date of the commencement of 
     the delinquency that immediately preceded the collection 
     activity, charge to profit and loss, or similar action. The 
     requirements of this subsection shall apply only to 
     information added to a consumer report beginning 1 year after 
     the date of enactment of the Consumer Reporting Reform Act of 
     1994.''.
       (d) Disclosure of Personal Information.--Section 605 of the 
     Fair Credit Reporting Act (15 U.S.C. 1681c), as amended by 
     subsection (c), is amended by adding at the end the following 
     new subsection:
       ``(d) Disclosure of Personal Information.--A person who 
     prepares a consumer report that includes personal credit 
     information on a consumer shall not include in the report any 
     adverse item of information on the consumer with respect to 
     matters which antedate the report by more than 10 years or 
     which could not be included in any consumer report on the 
     consumer in accordance with this section.''.
       (e) Indication of Closure of Account.--Section 605 of the 
     Fair Credit Reporting Act (15 U.S.C. 1681c), as amended by 
     subsection (d), is amended by adding at the end the following 
     new subsection:
       ``(e) Indication of Closure of Account by Consumer.--If a 
     consumer reporting agency is notified pursuant to section 
     622(a)(4) that a consumer's credit account was voluntarily 
     closed by the consumer, the agency shall indicate that fact 
     in any consumer report that includes information related to 
     that account.''.
       (f) Clerical Amendments.--
       (1) Section heading.--The heading for section 605 of the 
     Fair Credit Reporting Act (15 U.S.C. 1681c) is amended to 
     read as follows:

     ``SEC. 605. REQUIREMENTS RELATING TO INFORMATION CONTAINED IN 
                   CONSUMER REPORTS.''.

       (2) Table of sections.--The table of sections at the 
     beginning of the Fair Credit Reporting Act (15 U.S.C. 1681a 
     et seq.) is amended by striking the item relating to section 
     605 and inserting the following:

  ``605. Requirements relating to information contained in consumer 
              reports.''.

     SEC. 105. AMENDMENTS RELATING TO COMPLIANCE PROCEDURES.

       (a) Notice to Users and Providers of Information To Ensure 
     Compliance.--
       (1) In general.--Section 607 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681e), as amended by section 102(c), is 
     amended by adding at the end the following new subsection:
       ``(d) Notice to Users and Furnishers of Information.--A 
     consumer reporting agency shall provide notice to a person of 
     such person's responsibilities under this title if such 
     person--
       ``(1) regularly and in the ordinary course of business 
     furnishes information to the agency with respect to a 
     consumer; or
       ``(2) is provided by the agency with a consumer report.''.
       (2) Content of notice.--Not later than 1 year after the 
     date of enactment of this Act, the Federal Trade Commission 
     shall prescribe the content of notices required under section 
     607(d) of the Fair Credit Reporting Act, as added by this 
     subsection.
       (b) Record of Identity of Users and Purposes Certified by 
     Users of Reports.--Section 607 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681e), as amended by subsection (a), is 
     amended by adding at the end the following new subsection:
       ``(e) Procurement of Consumer Report for Resale.--
       ``(1) Disclosure.--A person may not procure a consumer 
     report for purposes of reselling the report (or the 
     information contained in the report) unless the person 
     discloses to the consumer reporting agency that originally 
     furnished the report--
       ``(A) the identity of the ultimate user of the report (or 
     the information), and
       ``(B) each permissible purpose under section 604 for which 
     the report will be furnished to the ultimate user of the 
     report (or the information).
       ``(2) Responsibilities of procurers for resale.--A person 
     who procures a consumer report for purposes of reselling the 
     report (or the information contained in the report) shall--
       ``(A) establish and comply with reasonable procedures, 
     which shall be designed to ensure that the report (or the 
     information) is resold by such person only for a purpose for 
     which the report may be furnished under section 604, 
     including--
       ``(i) identifying each prospective user of the resold 
     report (or the information);
       ``(ii) certifying each purpose for which the report (or the 
     information) will be used; and
       ``(iii) certifying that the report (or the information) 
     will be used for no other purpose; and
       ``(B) before reselling the report, make reasonable efforts 
     to verify the identifications and certifications made under 
     subparagraph (A).''.

     SEC. 106. AMENDMENTS RELATING TO CONSUMER DISCLOSURES.

       (a) All Information in Consumer's File Required To Be 
     Disclosed.--Section 609(a)(1) of the Fair Credit Reporting 
     Act (15 U.S.C. 1681g(a)(1)) is amended to read as follows:
       ``(1) All information in the consumer's file at the time of 
     the request.''.
       (b) More Information Concerning Recipients of Reports 
     Required.--Section 609(a)(3) of the Fair Credit Reporting Act 
     (15 U.S.C. 1681g(a)(3)) is amended to read as follows:
       ``(3)(A) Identification of each person who procured a 
     consumer report--
       ``(i) for employment purposes during the 2-year period 
     preceding the request; and
       ``(ii) for any other purpose during the 1-year period 
     preceding the request.
       ``(B) An identification of a person under subparagraph (A) 
     shall include--
       ``(i) the name of the person or, if applicable, the trade 
     name (written in full) under which such person conducts 
     business; and
       ``(ii) upon request of the consumer, the address and 
     telephone number of the person.''.
       (c) Information Regarding Inquiries.--Section 609(a) of the 
     Fair Credit Reporting Act (15 U.S.C. 1681g(a)) is amended by 
     adding at the end the following new paragraph:
       ``(4) A record of all inquiries received by the agency 
     during the 1-year period preceding the request that 
     identified the consumer in connection with a credit or 
     insurance transaction that was not initiated by the 
     consumer.''.
       (d) Summary of Rights Required To Be Included With 
     Disclosure.--
       (1) In general.--Section 609 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681g) is amended by adding at the end the 
     following new subsection:
       ``(c) Summary of Rights Required To Be Included With 
     Disclosure.--
       ``(1) Summary of rights.--A consumer reporting agency shall 
     provide to a consumer, on or with each written disclosure by 
     the agency to the consumer under this section--
       ``(A) a written summary of all rights afforded to the 
     consumer under this title; and
       ``(B) in the case of a consumer reporting agency that 
     compiles and maintains consumer reports on a nationwide 
     basis, a toll-free telephone number that the consumer can use 
     to communicate with the agency.
       ``(2) Specific items required to be included.--The summary 
     of rights required under paragraph (1) shall include--
       ``(A) a brief description of this title and all rights of 
     consumers under this title;
       ``(B) an explanation of how the consumer may exercise the 
     rights of the consumer under this title;
       ``(C) a list of all Federal agencies responsible for 
     enforcing any provision of this title and the address and any 
     appropriate telephone number of each such agency, in a form 
     that will assist the consumer in selecting the appropriate 
     agency; and
       ``(D) a statement that a consumer reporting agency is not 
     required to remove accurate derogatory information from a 
     consumer's file unless the information is outdated, as 
     determined in accordance with section 605, or unless the 
     information cannot be verified.
       ``(3) Form of summary of rights.--The Federal Trade 
     Commission (after consultation with each Federal agency 
     referred to in section 621(b)) shall prescribe the form and 
     content of any disclosure with respect to consumers' rights 
     required to be made by a consumer reporting agency under this 
     title.
       ``(4) State disclosures.--Notwithstanding paragraphs (1) 
     through (3), a State shall retain the authority to require 
     additional disclosures pertaining to State law in connection 
     with a consumer report. Nothing in this subsection shall be 
     construed to limit the authority of a State to mandate the 
     time by which a disclosure shall be made to a consumer.''.
       (2) Technical amendment.--Section 606(a)(1)(B) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681d(a)(1)(B)) is amended by 
     inserting before the semicolon the following: ``and the 
     written summary of the rights of the consumer prepared 
     pursuant to section 609(c)''.
       (e) Form of Disclosures.--
       (1) In general.--Subsections (a) and (b) of section 610 of 
     the Fair Credit Reporting Act (15 U.S.C. 1681h) are amended 
     to read as follows:
       ``(a) Written Disclosure.--The disclosures required to be 
     made under section 609 shall be provided to a consumer in 
     writing.
       ``(b) Other Forms of Disclosure.--
       ``(1) In general.--In addition to the written disclosures 
     required by subsection (a), a consumer reporting agency may 
     make the disclosures required under section 609 other than in 
     written form if--
       ``(A) the consumer authorizes the disclosure;
       ``(B) the consumer furnishes proper identification to the 
     consumer reporting agency;
       ``(C) the consumer specifies the form of disclosure; and
       ``(D) such form of disclosure is available from the agency.
       ``(2) Form.--A consumer may specify, pursuant to paragraph 
     (1), that disclosures under section 609 be made--
       ``(A) in person, upon the appearance of the consumer at the 
     place of business of the consumer reporting agency where 
     disclosures are regularly provided, during normal business 
     hours, and on reasonable notice;
       ``(B) by telephone, if the consumer has made a written 
     request for disclosure by telephone that includes the proper 
     identification of the consumer, as required by paragraph 
     (1)(B);
       ``(C) by electronic means, if available from the agency; or
       ``(D) by any other reasonable means available from the 
     agency.''.
       (2) Simplified disclosure.--Not later than 90 days after 
     the date of enactment of this Act, each consumer reporting 
     agency shall develop a form on which such consumer reporting 
     agency shall make the disclosures required under section 
     609(a) of the Fair Credit Reporting Act, for the purpose of 
     maximizing the comprehensibility and standardization of such 
     disclosures.
       (3) Goals.--The Federal Trade Commission shall take 
     appropriate action to assure that the goals of 
     comprehensibility and standardization are achieved in 
     accordance with paragraph (2).
       (4) Conforming amendments.--
       (A) Section heading.--The section heading for section 610 
     of the Fair Credit Reporting Act (15 U.S.C. 1681h) is amended 
     to read as follows:

     ``SEC. 610. CONDITIONS AND FORM OF DISCLOSURE TO 
                   CONSUMERS.''.

       (B) Table of sections.--The table of sections at the 
     beginning of the Fair Credit Reporting Act (15 U.S.C. 1681a 
     et seq.) is amended by striking the item relating to section 
     610 by inserting the following:

  ``610. Conditions and form of disclosure to consumers.''.

     SEC. 107. AMENDMENTS RELATING TO PROCEDURES IN CASE OF THE 
                   DISPUTED ACCURACY OF ANY INFORMATION IN A 
                   CONSUMER'S FILE.

       (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) Reinvestigation of Disputed Information.--
       ``(1) In general.--If the completeness or accuracy of an 
     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 directly of such dispute, the 
     agency shall reinvestigate free of charge and record the 
     current status of the disputed information before the later 
     of--
       ``(A) the expiration of the 30-day period beginning on the 
     date the agency receives the notice of the dispute from the 
     consumer; or
       ``(B) the expiration of the 15-day period beginning on the 
     last date on which the agency receives relevant information 
     submitted by the consumer in accordance with paragraph (4).
       ``(2) Prompt notice of dispute to furnisher of 
     information.--Not later than 5 business days after the date 
     on which a consumer reporting agency receives notice of a 
     dispute from a consumer in accordance with paragraph (1), the 
     agency shall notify any person who provided any item of 
     information in dispute at the address and in the manner 
     established with the person.
       ``(3) Determination that dispute is frivolous or 
     irrelevant.--
       ``(A) In general.--Notwithstanding paragraph (1), a 
     consumer reporting agency may terminate a reinvestigation of 
     information disputed by a consumer under that paragraph if 
     the agency reasonably determines that the dispute raised by 
     the consumer is frivolous or irrelevant, including by reason 
     of a failure to provide sufficient information to investigate 
     the dispute.
       ``(B) Notice of determination.--Not later than 5 business 
     days after making a determination in accordance with 
     subparagraph (A) that a dispute is frivolous or irrelevant, a 
     consumer reporting agency shall mail to the consumer a 
     written notification of such determination (including the 
     reasons for the determination), and, if authorized by the 
     consumer for that purpose, notification by any other means 
     available to the agency.
       ``(4) Consideration of consumer information.--In conducting 
     any reinvestigation under paragraph (1) with respect to 
     disputed information in the file of a consumer, the consumer 
     reporting agency shall review and consider all relevant 
     information submitted by the consumer during the 30-day 
     period beginning on the date the agency receives the notice 
     of the dispute from the consumer.
       ``(5) Deletion of inaccurate or unverifiable information.--
       ``(A) In general.--If, in the course of a reinvestigation 
     under paragraph (1) of any information disputed by a 
     consumer, an item of the information is found to be 
     inaccurate or cannot be verified, the consumer reporting 
     agency shall delete that item of information from the 
     consumer's file.
       ``(B) Requirements relating to reinsertion of previously 
     deleted material.--
       ``(i) Certification of accuracy of information.--If any 
     information is deleted from a consumer's file pursuant to 
     subparagraph (A), the information may not be reinserted in 
     the file after the deletion unless the person who furnishes 
     the information certifies that the information is complete 
     and accurate.
       ``(ii) Notice to consumer.--If any information that has 
     been deleted from a consumer's file pursuant to subparagraph 
     (A) is reinserted in the file in accordance with clause (i), 
     the consumer reporting agency shall, not later than 5 
     business days after such reinsertion, mail to the consumer 
     written notification of the reinsertion, and, if authorized 
     by the consumer for that purpose, shall provide such notice 
     by any other means available to the agency.
       ``(iii) Contents.--The notice of reinsertion required under 
     clause (ii) shall include--

       ``(I) all information prescribed in clauses (iii) and (v) 
     of paragraph (6)(B);
       ``(II) a description of the procedure used to make the 
     finding that the information should be reinserted; and
       ``(III) the name, business address, and telephone number of 
     any furnisher of information contacted in connection with 
     such information.

       ``(C) Procedures to prevent reappearance.--A consumer 
     reporting agency shall maintain reasonable procedures 
     designed to prevent the reappearance in a consumer's file, 
     and in consumer reports on the consumer, of information that 
     is required to be deleted pursuant to this paragraph (other 
     than information that is reinserted in accordance with 
     subparagraph (B)(i)).
       ``(6) Notice of results of reinvestigation.--
       ``(A) In general.--A consumer reporting agency shall mail 
     to the consumer written notification of the results of a 
     reinvestigation under this subsection not later than 5 
     business days after the completion of the reinvestigation, 
     and, if authorized by the consumer for that purpose, shall 
     provide notification by other means available to the agency.
       ``(B) Contents.--As part of or in addition to the notice 
     under subparagraph (A), a consumer reporting agency shall 
     provide to a consumer in writing during the 5-business-day 
     period referred to in subparagraph (A)--
       ``(i) a statement that the reinvestigation is completed;
       ``(ii) a consumer report that is based upon the consumer's 
     file as that file is revised as a result of the 
     reinvestigation;
       ``(iii) a description or indication of any changes made in 
     the consumer report as a result of those revisions to the 
     consumer's file;
       ``(iv) in any case in which disputed information is found 
     to be accurate and complete (and in any other case upon 
     request by the consumer), a description of the procedure used 
     to make the finding and the name, business address, and 
     telephone number of any furnisher of information contacted in 
     connection with such information;
       ``(v) a notification that the consumer has the right to 
     insert a statement in such consumer's file disputing the 
     accuracy or completeness of the information in the file; and
       ``(vi) a clear and conspicuous notification of the right of 
     the consumer to request under subsection (d) that the 
     consumer reporting agency furnish notifications under that 
     subsection.
       ``(7) Description of reinvestigation procedure.--Not later 
     than 15 days after receiving a request from the consumer for 
     a description referred to in paragraph (6)(B)(iv), the 
     consumer reporting agency shall provide such description to 
     the consumer.
       ``(8) Exception.--If the dispute is resolved by the 
     deletion of the disputed information not later than 3 
     business days after the date on which the consumer reporting 
     agency receives notice of the dispute in accordance with 
     paragraph (1), the consumer reporting agency shall be exempt 
     from the requirements of paragraphs (2) and (6) if the 
     consumer reporting agency--
       ``(A) provides prompt notification of the deletion to the 
     consumer by telephone;
       ``(B) provides written confirmation of the deletion, upon 
     request by the consumer; and
       ``(C) maintains reasonable procedures designed to prevent 
     the reappearance in the consumer's file, and in reports on 
     the consumer, of information deleted pursuant to paragraph 
     (5).
       ``(9) Consideration of consumer documentation.--
       ``(A) In general.--Reinvestigation under this section shall 
     include an acceptance of the consumer's version of the 
     disputed information and correction or deletion of the 
     disputed information, if the consumer submits to the consumer 
     reporting agency documentation obtained from the source of 
     the information in dispute confirming that the disputed 
     information in the consumer report is inaccurate or 
     incomplete.
       ``(B) Exception.--Notwithstanding subparagraph (A), the 
     consumer reporting agency need not accept the consumer's 
     version of the disputed information if the consumer reporting 
     agency, acting in good faith--
       ``(i) has reason to doubt the authenticity of the 
     documentation submitted by the consumer;
       ``(ii) reinvestigates the dispute by contacting the source 
     of the disputed item; and
       ``(iii) verifies that the documentation is not authentic.
       ``(10) Information from consumer.--Nothing in paragraph 
     (1)(B) or paragraph (4) shall be construed to require a 
     consumer to provide information in connection with a 
     reinvestigation under this section.''.
       (b) Conforming Amendment.--Section 611(d) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681i(d)) is amended by 
     striking ``The consumer reporting agency shall clearly'' and 
     all that follows through the end of the subsection.

     SEC. 108. AMENDMENT RELATING TO CHARGES FOR DISCLOSURE.

       (a) In General.--Section 612 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681j) is amended to read as follows:

     ``SEC. 612. CHARGES FOR DISCLOSURES AND CERTAIN NOTICES 
                   PROHIBITED.

       ``(a) Free Consumer Reports.--Each consumer reporting 
     agency that maintains a file on a consumer shall make all 
     disclosures pursuant to section 609 without charge to the 
     consumer--
       ``(1) if the consumer makes a request under section 609 not 
     later than 60 days after receipt by such consumer of a 
     notification pursuant to section 615 or of a notification 
     from a debt collection agency affiliated with that consumer 
     reporting agency stating that the consumer's credit rating 
     may be or has been adversely affected;
       ``(2) upon written request by the consumer not later than 1 
     year after the consumer receives a notification under 
     subsection (b)(2); and
       ``(3) in the case of a consumer reporting agency that 
     compiles and maintains files on consumers on a nationwide 
     basis, upon the written request of the consumer, not more 
     often than once in any 2-year period.
       ``(b) Charge for Certain Notices Prohibited.--A consumer 
     reporting agency shall not impose any charge on the consumer 
     for--
       ``(1) providing a notice required under section 604(f)(2), 
     607(d), or 611(a); or
       ``(2) notifying a person pursuant to section 611(d) of the 
     deletion of information that is found to be inaccurate or 
     that can no longer be verified, if the consumer designates 
     that person to the agency before the end of the 30-day period 
     beginning on the date of the notification of the consumer 
     under section 611(a)(6).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of the Fair Credit Reporting Act (15 U.S.C. 1681a 
     et seq.) is amended by striking the item relating to section 
     612 and inserting the following:

  ``612. Charges for disclosures and certain notices prohibited.''.

     SEC. 109. AMENDMENTS RELATING TO DUTIES OF USERS OF CONSUMER 
                   REPORTS.

       (a) Duties of Users Taking Adverse Actions.--Section 615(a) 
     of the Fair Credit Reporting Act (15 U.S.C. 1681m(a)) is 
     amended to read as follows:
       ``(a) Duties of Users Taking Adverse Actions on the Basis 
     of Information Contained in Consumer Reports.--If a person 
     takes any adverse action with respect to a consumer in 
     connection with credit, employment purposes, insurance 
     underwriting, any license or benefit described in section 
     604(a)(3)(D), or any business transaction involving the 
     consumer that is based, in whole or in part, on any 
     information contained in a consumer report, the person 
     shall--
       ``(1) provide written notice of the adverse action to the 
     consumer;
       ``(2) provide to the consumer--
       ``(A) the name, address, and telephone number (including 
     any available toll-free telephone number) of the consumer 
     reporting agency that furnished the report to the person; and
       ``(B) a statement that the consumer reporting agency did 
     not make the decision to take the adverse action;
       ``(3) provide to the consumer a written notice of the 
     consumer's right--
       ``(A) to obtain, under section 612, a free copy of a 
     consumer report on the consumer, from the consumer reporting 
     agency referred to in paragraph (2) and from any other 
     consumer reporting agency that compiles and maintains files 
     on consumers on a nationwide basis; and
       ``(B) to dispute, under section 611, with a consumer 
     reporting agency the accuracy or completeness of any 
     information in a consumer report furnished by the agency; and
       ``(4) in the case of an adverse action involving credit, 
     provide the consumer with the principal reasons for the 
     adverse action, in accordance with section 701(d)(3) of the 
     Equal Credit Opportunity Act.''.
       (b) Duties of Users Who Make Certain Solicitations.--
     Section 615 of the Fair Credit Reporting Act (15 U.S.C. 
     1681m) is amended by adding at the end the following new 
     subsection:
       ``(d) Duties of Users Who Make Written Credit or Insurance 
     Solicitations on the Basis of Information Contained in 
     Consumer Files.--
       ``(1) In general.--A person who uses a consumer report of a 
     consumer in connection with any credit or insurance 
     transaction that is not initiated by the consumer and that 
     consists of a firm offer of credit or insurance shall provide 
     on or with any written solicitation made to the consumer 
     regarding the transaction a clear and conspicuous statement 
     that--
       ``(A) information contained in the consumer's consumer 
     report was used in connection with the transaction;
       ``(B) the consumer received the offer of credit or 
     insurance because the consumer satisfied the criteria for 
     creditworthiness under which the consumer was selected for 
     the offer;
       ``(C) if applicable, the credit or insurance may not be 
     extended if, after the consumer responds to the offer by 
     submitting an application, the consumer--
       ``(i) fails to provide correct and adequate information in 
     such application; or
       ``(ii) does not meet the criteria established in advance of 
     the offer for such extension of credit or insurance;
       ``(D) no criteria for creditworthiness will be imposed on 
     the consumer other than the criteria established in advance 
     of the offer for such extension of credit or insurance;
       ``(E) the consumer has a right to prohibit information 
     contained in the consumer's file with a consumer reporting 
     agency to be used in connection with any credit or insurance 
     transaction that is not initiated by the consumer; and
       ``(F) the consumer may exercise the right referred to in 
     subparagraph (E) by using the joint notification system 
     established under section 604(f)(4) or the toll-free 
     telephone number established pursuant to section 604(f)(3).
       ``(2) Limitation on application.--Paragraph (1) does not 
     apply to the use of a consumer report by a person if--
       ``(A) the person is affiliated by common ownership or by 
     common corporate control with the person who procured the 
     report;
       ``(B) the person who procured the report clearly and 
     conspicuously disclosed to the consumer to whom the report 
     relates, before the report is provided to the person who will 
     use the report, that the report might be provided to and used 
     by other persons who are affiliated in the manner described 
     in subparagraph (A) to the person who procured the report; 
     and
       ``(C) the provision and use of the report is consented to 
     by the consumer in writing.
       ``(3) False and misleading statements.--No statement 
     accompanying a credit or insurance transaction that is not 
     initiated by the consumer shall contain any false or 
     misleading information concerning any condition or criteria 
     for the extension or offer of credit or insurance to the 
     consumer.
       ``(4) Maintaining criteria on file.--A person who makes an 
     offer of credit or insurance to a consumer under a credit or 
     insurance transaction described in paragraph (1) shall 
     maintain on file the criteria established in advance of the 
     offer for such extension of credit or insurance until the 
     expiration of the 3-year period beginning on the date on 
     which the offer is made to the consumer.''.
       (c) Duties of Users for Direct Marketing Transactions Not 
     Initiated by Consumers.--Section 615 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681m), as amended by subsection 
     (b), is amended by adding at the end the following new 
     subsection:
       ``(e) Duties of Users for Direct Marketing Transactions Not 
     Initiated by Consumers.--A person who, in connection with a 
     direct marketing transaction that is not initiated by a 
     consumer, uses information concerning the consumer that is 
     provided by a consumer reporting agency to that person under 
     section 604(e) shall provide to the consumer with each 
     communication regarding the transaction made to the consumer 
     a clear and conspicuous written statement--
       ``(1) that information concerning the consumer that was 
     provided by a consumer reporting agency was used in 
     connection with the transaction;
       ``(2) that the consumer has the right under section 604(e) 
     to prohibit any information concerning the consumer from 
     being provided by the consumer reporting agency for use in 
     connection with any direct marketing transaction that is not 
     initiated by the consumer;
       ``(3) that the consumer may exercise the right referred to 
     in paragraph (2) by notifying the consumer reporting agency 
     in writing or, in the case of a consumer reporting agency 
     required to establish a toll-free telephone number pursuant 
     to section 604(f)(4), by calling that number; and
       ``(4) disclosing the name, address, and, in the case of a 
     consumer reporting agency required to establish a toll-free 
     telephone number pursuant to section 604(f)(4), the toll-free 
     telephone number at which the agency may be notified.''.

     SEC. 110. AMENDMENTS RELATING TO CIVIL LIABILITY.

       (a) Willful Failure To Comply.--Section 616 of the Fair 
     Credit Reporting Act (15 U.S.C. 1681n) is amended to read as 
     follows:

     ``SEC. 616. CIVIL LIABILITY FOR WILLFUL NONCOMPLIANCE.

       ``(a) In General.--A person who willfully fails to comply 
     with any requirement imposed under this title with respect to 
     a consumer is liable to that consumer in an amount prescribed 
     under subsection (c).
       ``(b) Exception.--A person has no liability to a consumer 
     under this section for a violation of section 622(a)(1).
       ``(c) Damages.--Liability for a willful failure to comply 
     described in subsection (a) shall be in an amount equal to 
     the sum of--
       ``(1) any actual damages sustained by the consumer as a 
     result of the failure;
       ``(2) an amount not less than $300 nor greater than $1,000;
       ``(3) such punitive damages as the court may allow; and
       ``(4) in the case of a successful action to enforce any 
     liability under this section--
       ``(A) the costs of the action; and
       ``(B) reasonable attorney's fees, as determined by the 
     court.
       ``(d) Attorney's Fees.--On a finding by the court that an 
     unsuccessful pleading, motion, or other paper filed in 
     connection with an action under this section was filed in bad 
     faith or for purposes of harassment, the court shall award to 
     the prevailing party attorney's fees reasonable in relation 
     to the work expended in responding to such pleading, motion, 
     or other paper.''.
       (b) Negligent Failure To Comply.--Section 617 of the Fair 
     Credit Reporting Act (15 U.S.C. 1681o) is amended to read as 
     follows:

     ``SEC. 617. CIVIL LIABILITY FOR NEGLIGENT NONCOMPLIANCE.

       ``(a) In General.--A person who is negligent in failing to 
     comply with any requirement of this title with respect to a 
     consumer shall be liable to that consumer in an amount 
     prescribed in subsection (c).
       ``(b) Exception.--A person has no liability to a consumer 
     under this section for a violation of section 622(a)(1).
       ``(c) Damages.--Liability for a negligent failure to comply 
     described in subsection (a) shall be in an amount equal to 
     the sum of--
       ``(1) any actual damage sustained by a consumer as a result 
     of the failure; and
       ``(2) in the case of any successful action to enforce 
     liability under this section--
       ``(A) the costs of the action; and
       ``(B) reasonable attorney's fees, as determined by the 
     court.
       ``(d) Attorney's Fees.--On a finding by the court that an 
     unsuccessful pleading, motion, or other paper filed in 
     connection with an action under this section was filed in bad 
     faith or for purposes of harassment, the court shall award to 
     the prevailing party attorney's fees reasonable in relation 
     to the work expended in responding to such pleading, motion, 
     or other paper.''.

     SEC. 111. AMENDMENTS RELATING TO RESPONSIBILITIES OF PERSONS 
                   WHO FURNISH INFORMATION TO CONSUMER REPORTING 
                   AGENCIES.

       (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.) is amended--
       (1) by redesignating sections 622 and 623 as sections 623 
     and 624; and
       (2) by inserting after section 621 the following new 
     section:

     ``SEC. 622. RESPONSIBILITIES OF FURNISHERS OF INFORMATION TO 
                   CONSUMER REPORTING AGENCIES.

       ``(a) Duty of Furnishers of Information To Provide Complete 
     and Accurate Information.--
       ``(1) In general.--A person shall not furnish any 
     information to a consumer reporting agency if the person 
     knows or should know the information is incomplete or 
     inaccurate.
       ``(2) Duty to correct and update information.--A person who 
     furnishes information to a consumer reporting agency that the 
     person determines is not complete or accurate shall--
       ``(A) promptly notify the consumer reporting agency of that 
     determination; and
       ``(B) provide to the agency any corrections to that 
     information, or any additional information, that is necessary 
     to make the information provided by the person to the agency 
     complete and accurate.
       ``(3) Duty to provide notice of continuing dispute.--If the 
     completeness or accuracy of any information furnished by any 
     person to a consumer reporting agency continues to be 
     disputed by the consumer to such person, that person shall 
     not furnish the information to a consumer reporting agency 
     without notice that such information is disputed by the 
     consumer.
       ``(4) Duty to provide notice of closed accounts.--A person 
     who regularly furnishes information to a consumer reporting 
     agency regarding a consumer who has a credit account with 
     that person shall notify the agency of the closure of that 
     account by the consumer in information regularly furnished 
     for the period in which the account is closed.
       ``(5) Duty to provide notice of delinquency of accounts.--A 
     person who furnishes information to a consumer reporting 
     agency regarding a delinquent account being placed for 
     collection, charged to profit or loss, or subjected to any 
     similar action shall, not later than 90 days after the 
     commencement of the action, notify the agency of the 
     commencement date of the delinquency immediately preceding 
     the action.
       ``(b) Notice to Consumers of Information Furnished to 
     Consumer Reporting Agencies.--
       ``(1) Notice required.--A person who in the ordinary course 
     of business regularly and on a routine basis furnishes 
     information about that person's transactions or experiences 
     with a consumer to a consumer reporting agency, shall give 
     notice of that fact in writing to the consumer before first 
     providing any information about the consumer to a consumer 
     reporting agency.
       ``(2) Contents of notice.--Written notice provided to a 
     consumer by a person pursuant to paragraph (1) shall 
     contain--
       ``(A) a brief description of the type of information that 
     may be furnished regularly to a consumer reporting agency; 
     and
       ``(B) a brief description of the frequency with which or 
     the circumstances under which information is furnished to a 
     consumer reporting agency.
       ``(3) Notice by certain persons.--A person who furnishes 
     information about checks offered as payment by consumers may 
     give notice for purposes of paragraph (1) by posting the 
     notice in a conspicuous manner at each location where checks 
     are accepted by the person.
       ``(c) Duties of Furnishers of Information Upon Notice of 
     Dispute.--Upon receiving notice pursuant to section 611(a)(2) 
     of a dispute with regard to the completeness or accuracy of 
     any information provided by a person to a consumer reporting 
     agency, the person shall--
       ``(1) complete an investigation with respect to the 
     disputed information and report to the consumer reporting 
     agency the results of that investigation before the end of 
     the 25-day period beginning on the date the agency receives 
     notice of a dispute from the consumer in accordance with 
     section 611(a)(1); and
       ``(2) review relevant information submitted to the consumer 
     reporting agency by the consumer in accordance with section 
     611(a)(4).
       ``(d) Limitations.--
       ``(1) Enforcement.--Subsection (a) shall be enforced 
     exclusively under section 621 by the agencies identified in 
     that section.
       ``(2) Injunctive relief.--In an action alleging a violation 
     of subsection (a)(1), the court shall have jurisdiction to 
     enjoin the violation only where the action is brought by the 
     Federal Trade Commission or the attorney general of a 
     State.''.
       (b) Clerical Amendment.--The table of sections for title VI 
     of the Consumer Credit Protection Act is amended--
       (1) by redesignating the items relating to sections 622 and 
     623 as sections 623 and 624, respectively; and
       (2) inserting after the item relating to section 621 the 
     following new item:

``622. Responsibilities of furnishers of information to consumer 
              reporting agencies.''.

     SEC. 112. STATE ACTION TO ENFORCE ACT.

       Section 621 of the Fair Credit Reporting Act (15 U.S.C. 
     1681s) is amended by adding at the end the following new 
     subsection:
       ``(d) State Action To Enforce Title.--
       ``(1) In general.--If a person violates any requirement 
     imposed under this title, the chief law enforcement officer 
     of the State in which such violation occurred (or an official 
     or agency designated by that State) may bring an action--
       ``(A) to restrain such violation;
       ``(B) to recover amounts for which such person is liable 
     under this title to each consumer on whose behalf the action 
     is brought;
       ``(C) to seek such remedies as are allowed under the laws 
     of such State; or
       ``(D) to collect a civil penalty of not more than $1,000 
     for each such violation.
       ``(2) Notice.--The State shall serve prior written notice 
     of any civil action under this subsection upon the Commission 
     and provide the Commission with a copy of the complaint. If 
     prior notice is not feasible, the State attorney general 
     shall provide notice immediately upon initiating the action. 
     Upon receiving notice of a civil action under this section, 
     the Commission shall have the right--
       ``(A) to intervene in the action;
       ``(B) upon so intervening, to be heard on all matters 
     arising therein; and
       ``(C) to file petitions for appeal.''.

     SEC. 113. ADMINISTRATIVE ENFORCEMENT.

       (a) In General.--Section 621(a) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681s(a)) is amended in the second 
     sentence--
       (1) by striking ``Act and shall be subject to enforcement 
     by the Federal Trade Commission under section 5(b) thereof 
     with respect to a consumer reporting agency or person subject 
     to enforcement by the Federal Trade Commission pursuant to 
     this subsection, irrespective'' and inserting ``Act. All 
     functions and powers of the Federal Trade Commission under 
     the Federal Trade Commission Act shall be available to the 
     Federal Trade Commission to enforce compliance with this 
     title by any person subject to enforcement by the Federal 
     Trade Commission pursuant to this subsection and not subject 
     to enforcement pursuant to section 8 of the Federal Deposit 
     Insurance Act, irrespective''; and
       (2) by inserting before the period ``, including the power 
     to enforce the provisions of this title in the same manner as 
     if the violation had been a violation of any Federal Trade 
     Commission trade regulation rule''.
       (b) Federal Reserve Board Interpretive Authority.--Section 
     621 of the Fair Credit Reporting Act (15 U.S.C. 1681s), as 
     amended by section 112, is amended by adding at the end the 
     following new subsection:
       ``(e) Interpretive Authority.--The Board of Governors of 
     the Federal Reserve System may issue an interpretation of any 
     provision of this title as it may apply to any person 
     identified in paragraph (1), (2), or (3) of subsection (b), 
     and the holding companies and affiliates of such person, in 
     consultation with the Federal agencies identified in 
     paragraph (1), (2), or (3) of subsection (b).''.

     SEC. 114. ESTABLISHMENT OF TOLL-FREE TELEPHONE NUMBER.

       Not later than 1 year after the date of enactment of this 
     Act, each consumer reporting agency that compiles and 
     maintains consumer reports on a nationwide basis shall 
     establish, and thereafter maintain, a toll-free telephone 
     number for the purpose of making agency personnel accessible 
     to consumers pursuant to section 609(c)(1)(B) of the Fair 
     Credit Reporting Act.

     SEC. 115. ACTION BY FTC.

       Not later than 270 days after the date of enactment of this 
     Act, the Federal Trade Commission shall prescribe all matters 
     required to be prescribed by the Federal Trade Commission 
     under this title and the amendments made by this title.

     SEC. 116. RELATION TO STATE LAWS.

       Section 624 of the Fair Credit Reporting Act (15 U.S.C. 
     1681t) (as redesignated by section 111 of this Act) is 
     amended--
       (1) by striking ``This title'' and inserting the following:
       ``(a) In General.--This title'';
       (2) by inserting ``, and except as provided in subsection 
     (b)'' before the period at the end; and
       (3) by adding at the end the following new subsection:
       ``(b) Exceptions.--
       ``(1) State law.--No requirement or prohibition may be 
     imposed under the laws of any State--
       ``(A) with respect to any subject matter regulated under--
       ``(i) section 604(d), relating to the prescreening of 
     consumer reports;
       ``(ii) section 611, relating to the time by which a 
     consumer reporting agency must take any action, including the 
     provision of notification to a consumer or other person, in 
     any procedure related to the disputed accuracy of information 
     in a consumer's file, except that this clause does not affect 
     the applicability of any State law in effect on the date of 
     enactment of the Consumer Reporting Reform Act of 1994;
       ``(iii) section 615(a), relating to the duties of a person 
     who takes any adverse action with respect to a consumer on 
     the basis of information contained in a consumer report; or
       ``(iv) section 615(d), relating to the duties of persons 
     who use a consumer report of a consumer in connection with 
     any credit or insurance transaction that is not initiated by 
     the consumer and that consists of a firm offer of credit or 
     insurance;
       ``(B) with respect to the exchange of information among 
     persons affiliated by common ownership or common corporate 
     control; or
       ``(C) with respect to the form and content of any 
     disclosure required to be made under--
       ``(i) section 609(c); or
       ``(ii) section 622(b)(2).
       ``(2) Definition of `firm offer of credit'.--
     Notwithstanding the definition of the term `firm offer of 
     credit' (or any equivalent term) under the laws of any State, 
     the definition of that term contained in section 603(l) shall 
     be construed to apply in the enforcement and interpretation 
     of the laws of any State governing consumer reports.
       ``(3) FTC modification permitted.--If it considers such 
     action necessary for the protection of consumers, the Federal 
     Trade Commission may, after consultation with each Federal 
     agency referred to in section 621(b) and with appropriate 
     State regulatory and law enforcement agencies, promulgate 
     regulations in accordance with section 553 of title 5, United 
     States Code, to impose requirements--
       ``(A) that are more stringent than those imposed under--
       ``(i) section 611, relating to the time by which a consumer 
     reporting agency must take any action, including the 
     provision of notification to a consumer or other person, in 
     any procedure related to the disputed accuracy of information 
     in a consumer's file;
       ``(ii) section 615(a), relating to the duties of a person 
     who takes any adverse action with respect to a consumer on 
     the basis of information contained in a consumer report; or
       ``(iii) section 615(d), relating to the duties of persons 
     who use a consumer report of a consumer in connection with 
     any credit or insurance transaction that is not initiated by 
     the consumer and that consists of a firm offer of credit or 
     insurance; and
       ``(B) with respect to the form and content of any 
     disclosure required to be made under--
       ``(i) section 609(c); or
       ``(ii) section 622(b)(2).''.

     SEC. 117. FAIR DEBT COLLECTION PRACTICES.

       Section 807(11) of the Fair Debt Collection Practices Act 
     (15 U.S.C. 1692e(11)) is amended to read as follows:
       ``(11) Except as otherwise provided for communications to 
     acquire location information under section 804, the failure 
     to disclose clearly in the initial written communication with 
     a consumer in connection with the collection of a debt or to 
     obtain information about a consumer, that the debt collector 
     is attempting to collect a debt and that any information 
     obtained will be used for that purpose.''.

     SEC. 118. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsection (b), the 
     amendments made by this title shall become effective 1 year 
     after the date of enactment of this Act.
       (b) Exceptions.--Notwithstanding the provisions of 
     subsection (a), the Federal Trade Commission may prescribe 
     regulations, as required by this title and the amendments 
     made by this title.
                 TITLE II--CREDIT REPAIR ORGANIZATIONS

     SEC. 201. REGULATION OF CREDIT REPAIR ORGANIZATIONS.

       Title IV of the Consumer Credit Protection Act is amended 
     to read as follows:
                ``TITLE IV--CREDIT REPAIR ORGANIZATIONS
``Sec.
``401. Short title.
``402. Findings and purposes.
``403. Definitions.
``404. Prohibited practices by credit repair organizations.
``405. Disclosures.
``406. Credit repair organizations contracts.
``407. Right to cancel contract.
``408. Noncompliance with this title.
``409. Civil liability.
``410. Administrative enforcement.

     ``SEC. 401. SHORT TITLE.

       ``This title may be cited as the `Credit Repair 
     Organizations Act'.

     ``SEC. 402. FINDINGS AND PURPOSES.

       ``(a) Findings.--The Congress finds that--
       ``(1) consumers have a vital interest in establishing and 
     maintaining their creditworthiness and credit standing in 
     order to obtain and use credit. As a result, consumers who 
     have experienced credit problems may seek assistance from 
     credit repair organizations that offer to improve the credit 
     standing of such consumers; and
       ``(2) certain advertising and business practices of some 
     companies engaged in the business of credit repair services 
     have worked a financial hardship upon consumers, particularly 
     consumers who have limited economic means and who are 
     inexperienced in credit matters.
       ``(b) Purposes.--The purposes of this title are--
       ``(1) to ensure that prospective buyers of the services of 
     credit repair organizations are provided with the information 
     necessary to make an informed decision regarding the purchase 
     of such services; and
       ``(2) to protect the public from unfair or deceptive 
     advertising and business practices by credit repair 
     organizations.

     ``SEC. 403. DEFINITIONS.

       ``For purposes of this title, the following definitions 
     shall apply:
       ``(1) Consumer.--The term `consumer' means an individual.
       ``(2) Consumer credit transaction.--The term `consumer 
     credit transaction' means any transaction in which credit is 
     offered or extended to an individual for personal, family, or 
     household purposes.
       ``(3) Credit repair organization.--The term `credit repair 
     organization'--
       ``(A) means a person who uses any instrumentality of 
     interstate commerce or the mails to sell, provide, or perform 
     (or represent that such person can or will sell, provide, or 
     perform) any service, in return for the payment of money or 
     other valuable consideration, for the express or implied 
     purpose of--
       ``(i) improving a consumer's credit record, credit history, 
     or credit rating;
       ``(ii) removing adverse credit information that is accurate 
     and not obsolete from the consumer's record, history, or 
     rating;
       ``(iii) altering the consumer's identification to prevent 
     the display of the consumer's credit record, history, or 
     rating for the purpose of concealing adverse credit 
     information that is accurate and not obsolete; or
       ``(iv) providing advice or assistance to a consumer with 
     regard to any activity or service described in clause (i), 
     (ii), or (iii); and
       ``(B) does not include--
       ``(i) a nonprofit organization that is exempt from taxation 
     under section 501(c)(3) of the Internal Revenue Code of 1986; 
     or
       ``(ii) an attorney at law who is a member of the bar of the 
     highest court of any State or otherwise licensed under the 
     laws of any State, with respect to services rendered that are 
     within the scope of regulations applicable to members of such 
     bar or such licensees.
       ``(4) Credit.--The term `credit' has the same meaning as in 
     section 103 of the Truth in Lending Act.

     ``SEC. 404. PROHIBITED PRACTICES BY CREDIT REPAIR 
                   ORGANIZATIONS.

       ``No credit repair organization, and no officer, employee, 
     agent, or other person participating in the conduct of the 
     affairs of a credit repair organization, may--
       ``(1) charge or receive any money or other valuable 
     consideration for the performance of any service that the 
     credit repair organization has agreed to perform for a 
     consumer before such service is fully performed;
       ``(2) make any statement, or counsel or advise a consumer 
     to make any statement, that is untrue or misleading (or that, 
     upon the exercise of reasonable care, should be known by the 
     credit repair organization, officer, employee, agent, or 
     other person to be untrue or misleading) with respect to the 
     consumer's credit history, credit rating, or credit standing 
     to--
       ``(A) any consumer reporting agency (as defined in section 
     603(f)); or
       ``(B) any person--
       ``(i) who has extended credit to the consumer; or
       ``(ii) to whom the consumer has applied or is applying for 
     an extension of credit;
       ``(3) make any statement, or counsel or advise a consumer 
     to make any statement, the intended effect of which is to 
     alter the consumer's identification to prevent the display of 
     the consumer's credit record, history, or rating for the 
     purpose of concealing adverse credit information that is 
     accurate and not obsolete to--
       ``(A) any consumer reporting agency; or
       ``(B) any person--
       ``(i) who has extended credit to the consumer; or
       ``(ii) to whom the consumer has applied or is applying for 
     an extension of credit;
       ``(4) make or use any untrue or misleading representation 
     of the services of the credit repair organization; or
       ``(5) engage, directly or indirectly, in any act, practice, 
     or course of business that constitutes or results in the 
     commission of, or an attempt to commit, a fraud or deception 
     on a person in connection with the offer or sale of the 
     services of the credit repair organization.

     ``SEC. 405. DISCLOSURES.

       ``(a) Disclosure Required.--Before any contract or 
     agreement between a consumer and a credit repair organization 
     is executed, the credit repair organization shall provide the 
     consumer with the following written statement:
       ```Consumer Credit File Rights Under State and Federal Law
       ```You have a right to dispute inaccurate information in 
     your consumer report by contacting the credit bureau 
     directly. However, neither you nor any ``credit repair'' 
     company or credit repair organization has the right to have 
     accurate, current, and verifiable information removed from 
     your consumer report. The credit bureau must remove accurate, 
     negative information from your report only if it is over 7 
     years old. Bankruptcy information can be reported for 10 
     years.
       ```You have a right to obtain a copy of your consumer 
     report from a credit bureau. You have the right to receive 1 
     free copy of your credit report upon written request during 
     any 2-year period from any consumer reporting agency 
     operating on a nationwide basis. You are also entitled to 
     receive a free copy of your credit report if you have been 
     turned down for credit, employment, insurance, or a rental 
     dwelling because of information in your consumer report 
     during the preceding 60 days. Otherwise, you may be charged a 
     reasonable fee. The credit bureau must provide someone to 
     help you interpret the information in your credit file.
       ```You have a right to sue a credit repair company that 
     violates the Credit Repair Organization Act. This law 
     prohibits deceptive practices by credit repair companies.
       ```You have the right to cancel your contract with any 
     credit repair organization for any reason not later than 3 
     business days from the date you signed it.
       ```Credit bureaus are required to follow reasonable 
     procedures to ensure that creditors report information 
     accurately. However, mistakes may occur.
       ```You may, on your own, notify a credit bureau in writing 
     that you dispute the accuracy of information in your credit 
     file. The credit bureau must then reinvestigate and modify or 
     remove inaccurate information. The credit bureau may not 
     charge any fee for this service. Any pertinent information 
     and copies of all documents you have concerning an error 
     should be given to the credit bureau.
       ```If reinvestigation does not resolve the dispute to your 
     satisfaction, you may send a brief statement to the credit 
     bureau, to be kept in your file, explaining why you think the 
     record is inaccurate. The credit bureau must include your 
     statement about disputed information with any report it 
     issues about you.
       ```The Federal Trade Commission regulates credit bureaus 
     and credit repair organizations. For more information 
     contact:

                       ```Public Reference Branch

                        Federal Trade Commission

                       Washington, D.C. 20580.'.

       ``(b) Separate Statement Requirement.--The written 
     statement required under this section shall be provided as a 
     document that is separate from any written contract or other 
     agreement between the credit repair organization and the 
     consumer or any other written material provided to the 
     consumer.
       ``(c) Retention of Compliance Records.--
       ``(1) In general.--The credit repair organization shall 
     maintain a copy of the statement signed by the consumer 
     acknowledging receipt of the statement.
       ``(2) Maintenance for 2 years.--The copy of the consumer's 
     statement shall be maintained in the organization's files for 
     2 years after the date on which the statement is provided to 
     the consumer.

     ``SEC. 406. CREDIT REPAIR ORGANIZATIONS CONTRACTS.

       ``(a) Written Contracts Required.--A credit repair 
     organization may not provide services for a consumer unless a 
     written and dated contract for the purchase of such services 
     that meets the requirements of subsection (b) has been signed 
     by the consumer.
       ``(b) Terms and Conditions of Contract.--No contract 
     referred to in subsection (a) meets the requirements of this 
     subsection unless such contract includes the following 
     information (in writing):
       ``(1) The terms and conditions of payment, including the 
     total amount of all payments to be made by the consumer to 
     the credit repair organization or to any other person.
       ``(2) A full and detailed description of the services to be 
     performed by the credit repair organization for the consumer, 
     including--
       ``(A) all guarantees and all promises of full or partial 
     refunds; and
       ``(B) an estimate of--
       ``(i) the date by which the performance of the services (to 
     be performed by the credit repair organization or any other 
     person) will be complete; or
       ``(ii) the length of the period necessary to perform such 
     services.
       ``(3) The credit repair organization's name and principal 
     business address.
       ``(4) A conspicuous statement in boldface type, in 
     immediate proximity to the space reserved for the consumer's 
     signature on the contract, which reads as follows: `You may 
     cancel this contract without penalty or obligation at any 
     time before midnight of the third business day after the date 
     on which you signed the contract. See the attached notice of 
     cancellation form for an explanation of this right.'.

     ``SEC. 407. RIGHT TO CANCEL CONTRACT.

       ``(a) In General.--A consumer may cancel any contract with 
     a credit repair organization without penalty or obligation by 
     notifying the credit repair organization of the consumer's 
     intention to do so at any time before midnight of the third 
     business day which begins on the date on which the contract 
     or agreement between the consumer and the credit repair 
     organization is executed or would, but for this subsection, 
     become enforceable against the parties.
       ``(b) Cancellation Form and Other Information.--Each 
     contract shall be accompanied by a form, in duplicate, which 
     has the heading `Notice of Cancellation' and contains in 
     boldface type the following statement:
       ```You may cancel this contract, without any penalty or 
     obligation, at any time before midnight of the third business 
     day which begins after the date the contract is signed by 
     you.
       ```If you cancel, any payment you made under this contract 
     will be returned before the end of the 10-day period 
     beginning on the date the seller receives your cancellation 
     notice.
       ```To cancel this contract, mail or deliver a signed, dated 
     copy of this cancellation notice, or any other written notice 
     to [insert name of credit repair organization] at [insert 
     address of credit repair organization] before midnight on 
     [insert date].
       ```I hereby cancel this transaction.
       ```__________________(purchaser's signature)
       ```______________(date)'.
       ``(c) Consumer Copy of Contract Required.--A consumer who 
     enters into any contract with a credit repair organization 
     shall be given, by the organization--
       ``(1) a copy of the completed contract and the disclosure 
     statement required under section 405; and
       ``(2) a copy of any other document the credit repair 
     organization requires the consumer to sign,

     at the time the contract or the other document is signed.

     ``SEC. 408. NONCOMPLIANCE WITH THIS TITLE.

       ``(a) Consumer Waivers Invalid.--Any waiver by a consumer 
     of any protection provided by or any right of the consumer 
     under this title--
       ``(1) shall be treated as void; and
       ``(2) may not be enforced by a Federal or State court or 
     any other person.
       ``(b) Attempt To Obtain Waiver.--An attempt by any credit 
     repair organization to obtain a waiver from a consumer of any 
     protection provided by or any right of the consumer under 
     this title shall be treated as a violation of this title.
       ``(c) Contracts Not in Compliance.--A contract for services 
     that does not comply with the applicable provisions of this 
     title--
       ``(1) shall be treated as void; and
       ``(2) may not be enforced by a Federal or State court or by 
     any other person.

     ``SEC. 409. CIVIL LIABILITY.

       ``(a) Liability Established.--A credit repair organization 
     that fails to comply with any provision of this title with 
     respect to any person shall be liable to such person in an 
     amount equal to the sum of the amounts determined under each 
     of the following paragraphs:
       ``(1) Actual damages.--The greater of--
       ``(A) the amount of any actual damage sustained by such 
     person as a result of such failure; or
       ``(B) any amount paid by the person to the credit repair 
     organization.
       ``(2) Punitive damages.--
       ``(A) Individual actions.--In the case of an action by an 
     individual, such additional amounts as the court may allow.
       ``(B) Class actions.--In the case of a class action, the 
     sum of--
       ``(i) the aggregate of the amount that the court may allow 
     for each named plaintiff; and
       ``(ii) the aggregate of the amount that the court may allow 
     for each other class member, without regard to any minimum 
     individual recovery.
       ``(3) Attorneys' fees.--In the case of a successful action 
     to enforce any liability under paragraph (1) or (2), the 
     costs of the action, together with reasonable attorneys' 
     fees.
       ``(b) Factors To Be Considered in Awarding Punitive 
     Damages.--In determining the amount of any liability of any 
     credit repair organization under subsection (a)(2), the court 
     shall consider, among other relevant factors--
       ``(1) the frequency and persistence of noncompliance by the 
     credit repair organization;
       ``(2) the nature of the noncompliance;
       ``(3) the extent to which such noncompliance was 
     intentional; and
       ``(4) in the case of any class action, the number of 
     consumers adversely affected.
       ``(c) Jurisdiction.--An action under this section may be 
     brought in any United States district court, or in any other 
     court of competent jurisdiction, before the later of--
       ``(1) the end of the 2-year period beginning on the date of 
     the occurrence of the violation involved; or
       ``(2) in any case in which a credit repair organization has 
     materially and willfully misrepresented any information 
     that--
       ``(A) the credit repair organization is required, by any 
     provision of this title, to disclose to a consumer; and
       ``(B) is material to the establishment of the credit repair 
     organization's liability to the consumer under this section,

     the end of the 2-year period beginning on the date of the 
     discovery by the consumer of the misrepresentation.

     ``SEC. 410. ADMINISTRATIVE ENFORCEMENT.

       ``(a) In General.--Compliance with the requirements imposed 
     under this title with respect to credit repair organizations 
     shall be enforced under the Federal Trade Commission Act by 
     the Federal Trade Commission.
       ``(b) Violations of This Title Treated as Violations of 
     Federal Trade Commission Act.--
       ``(1) In general.--For the purpose of the exercise by the 
     Federal Trade Commission of the Federal Trade Commission's 
     functions and powers under the Federal Trade Commission Act, 
     any violation of any requirement or prohibition imposed under 
     this title with respect to credit repair organizations shall 
     constitute an unfair or deceptive act or practice in commerce 
     in violation of section 5(a) of the Federal Trade Commission 
     Act.
       ``(2) Enforcement authority under other law.--All functions 
     and powers of the Federal Trade Commission under the Federal 
     Trade Commission Act shall be available to the Federal Trade 
     Commission to enforce compliance with this title by any 
     person subject to enforcement by the Federal Trade Commission 
     pursuant to this subsection, including the power to enforce 
     the provisions of this title in the same manner as if the 
     violation had been a violation of any Federal Trade 
     Commission trade regulation rule, without regard to whether 
     the credit repair organization--
       ``(A) is engaged in commerce; or
       ``(B) meets any other jurisdictional tests in the Federal 
     Trade Commission Act.
       ``(c) State Enforcement of Title.--
       ``(1) In general.--The attorney general of any State, or an 
     official or agency designated under the law of any State, may 
     enforce compliance with this title in Federal or State court.
       ``(2) Civil enforcement actions.--A State may bring a civil 
     action in any Federal or State court to enjoin any violation 
     of this title and to recover damages under this title for 
     consumers who reside in such State.''.
  The PRESIDING OFFICER. The Senator from Nevada.
  Mr. BRYAN. Mr. President, today the Senate is debating one of the 
most significant pieces of consumer legislation to come before this 
session of the Congress. Over the past several years, I have expended, 
personally, a great deal of time working with all the interested 
parties on the subject matter of fair credit reporting. I take great 
pride in the legislative product that we offer for the Senate's 
consideration today.
  Before elaborating on the contents of the bill, I want to take a 
moment to thank several of my colleagues--the distinguished junior 
Senator from Missouri [Mr. Bond], who serves on the Banking Committee 
has worked tirelessly, effectively, and constructively with me and 
others, bringing this legislative compromise to fruition. He has been 
inconvenienced this afternoon by reason of some complications of his 
flight schedule or he would be on the floor at this moment. But I do, 
in his absence, want to express to him my personal appreciation, as 
well as to his very able staff. They have worked for hours and hours 
with us on this.
  I also thank the distinguished chairman and ranking member of the 
Senate Committee on Banking, Housing, and Urban Affairs, for their 
contributions in moving this bill forward. Chairman Riegle and Senator 
D'Amato have been extremely helpful at the hearings, at the markup, and 
now in bringing this bill to the floor.
  When the original Fair Credit Reporting Act was passed in 1970, it 
provided a number of important consumer protections. In the intervening 
24 years, the credit reporting industry has undergone fundamental 
changes, dramatic changes, from keeping consumer information on 
handwritten file cards to computer tapes that are updated today with 
billions--billions of entries each and every month. The time has now 
come to update this law to reflect the changes that have occurred in 
this industry.
  Credit bureaus now maintain 450 million credit files on individual 
consumers. They process almost 2 billion pieces of data per month, and 
they sell to their customers 1.5 million credit reports every day.
  Over the last 4 years, the number one complaint to the Federal Trade 
Commission has been lodged against credit bureaus--1-in-5 complaints to 
the FTC is against a credit bureau.
  In my State of Nevada, the attorney general's office shares a similar 
concern and indicates that complaints about inaccuracies, 
misinformation contained in credit reports, runs extremely high. In 
hearings I have chaired in my own State of Nevada, I heard firsthand 
from a number of individuals who, through no fault of their own, 
totally blameless, have suffered because of mistakes that are included 
in their credit files.
  Let me just cite a couple of instances. One case involved a young 
woman in Las Vegas named Mary Lou Mobley. She was at the time of our 
hearing a clerk, law clerk, for a Federal district court judge in 
Nevada, Judge Philip Pro.
  She first discovered problems with her credit report when she was 
turned down for a law school student loan even though she was in fact 
an excellent credit risk with no history of credit problems. She was 
forced at that time to reapply for another loan at a higher interest 
rate, a substantially higher interest rate. And she had to secure a 
cosigner.
  Had she not been able to obtain the signature of a cosigner, it is 
very, very doubtful she would have been able to get her student loan 
and perhaps would not have been able to continue in law school.
  After graduating from law school and believing that the problem had 
been corrected at the time that the erroneous information was first 
called to her attention, she applied, now for a car loan--this is about 
3 years later--only to be told she would have to pay 17.9 percent as 
the interest rate for her automobile instead of the normal 8.9 percent 
rate because she was ``a high risk'' based upon bad credit history.
  She was finally able to track down the source of the misinformation 
and the confusion, and she was told by one of the credit bureaus that 
she had been married to a man with the same last name in Arizona who 
had a number of bad debts.
  She was told that under Arizona law--Arizona being a community 
property State--that his bad debts were her responsibility and, 
therefore, by implication, his bad credit record was her bad credit 
record.
  I think we only have to ask our colleagues, how do you handle a 
situation like that? How do you prove the negative, that you had not 
been married to someone who you never met, let alone never married? It 
is a burden that caused Ms. Mobley considerable frustration, 
aggravation and time.
  Finally, after expending an enormous amount of time--and she detailed 
it with great particularity--she was able to get her credit record 
cleared.
  Remember, this is a person who is totally blameless, never met this 
individual, she had never been married, and now she has gone through 
this frustration of trying to get her record clarified.
  There is one other example that I might cite, Mr. President, that is 
different in focus but equally frustrating. One of my constituents is a 
fellow by the name of Bill Kinkade who lives in McDermitt, NV. That is 
in a very remote area in our State, virtually on the Idaho State line. 
Mr. Kinkade drove 5 hours to our committee hearing in Reno to share his 
story.
  Mr. Kinkade had a mortgage that was being paid through an automatic 
debit system at his bank. Unbeknown to him, the mortgagee transferred 
the mortgage to another company. There was nothing improper about that. 
But Mr. Kinkade was not made aware of that situation. And in reviewing 
his own bank account over a couple of months period of time, he noticed 
that the balance was higher than it should have been. And upon more 
carefully examining it, he noted that, indeed, the debiting of the 
mortgage payment that he had authorized was not being made.
  Ultimately, he made contact with the new mortgagee in the State of 
Maryland and made arrangements to correct the difficulty. The mortgagee 
was accommodating, and the situation was straightened out and the 
payments were transferred to the new bank.
  Mr. Kinkade assumed this story had a happy ending. He certainly had 
tried to do the responsible thing. Unfortunately for him, this mixup 
started to affect his credit history, and he did not know that.
  He went in to buy a satellite dish with his wife, as I recall, in 
Winnemucca, not too many miles away. If you live in McDermitt, Mr. 
President, you need a satellite dish. You do not have the diversity of 
activities that other parts of our great State and the Nation have. So 
this satellite dish was very important to Mr. Kinkade and his wife.
  He entered into the transaction, and he was rejected. He was told he 
was a bad credit risk, and then it came to light, this episode which I 
just related, Mr. President, to you and my colleagues who join us on 
the Senate floor and who are watching this proceeding that, again, this 
transaction, as it related to his mortgage, now becomes indelibly part 
of his credit record. He is having all kinds of difficulty.
  Let me just say as an aside, that is not only a problem for the 
consumer who seeks credit, but there was a legitimate business person 
in this transaction, an individual who was involved in selling 
satellite dishes. So this individual is also frustrated from 
consummating a sale and generating the kind of profit which is 
essential to our free enterprise system.
  For too long, these kinds of problems have been ignored and have not 
been corrected. The point to be made here, Mr. President, is that it is 
not my contention that businesses are engaged in disreputable or 
irresponsible efforts to damage somebody's credit. That is simply not 
the record. But with 2 billion data entries made every month, there are 
bound to be mistakes. I think every fair-minded person acknowledges 
that those mistakes can occur when you are dealing with that kind of 
volume.
  So the issue that confronts us and what brings us to our legislative 
response is how do we keep those mistakes to a minimum, and how do we 
correct them once they are found? That is where this legislation comes 
into play.
  The Consumer Reporting Reform Act of 1994, S. 783, was introduced by 
myself and the distinguished cosponsors, Senator Bond and Senator 
Riegle, on the 7th of April 1993. The Banking Committee held hearings 
examining the credit reporting system in both 1991 and 1993.
  In May of last year, the committee heard testimony from David Medine 
for the Federal Trade Commission; J. Joseph Curran, Jr., the attorney 
general of the State of Maryland; Barry Connelly for the Associated 
Credit Bureaus; Michelle Meier, the Consumers Union; Robert Hunter, 
testifying on behalf of the American Bankers Association; Ed 
Mierzwinski for the U.S. Public Interest Research Group; and Donald 
Prill, testifying on behalf of the National Retail Federation.
  In October of last year, the Senate Committee on Banking, Housing and 
Urban Affairs marked up and reported out of committee this piece of 
legislation by a vote of 15 to 4. This legislation seeks to improve the 
accuracy of those 450 million credit reports kept in this country by 
making several fundamental changes in the credit reporting system.
  First, the burden of proof is shifted so that credit bureaus, not 
consumers, must prove the accuracy of information in their files. 
Harking back to the proof of the negative: ``I did not know the 
gentleman with whom I was supposed to have been married; I never met 
him. How do I prove that we were never married and never lived in 
Arizona?'' The situation Ms. Mobley faced or the situation that so many 
others who testified before our committee faced.
  Second, the businesses that furnish information to the credit 
bureaus--those are banks, retailers and other creditors--are held, for 
the first time, responsible for data which they provide, under some 
very limited and special circumstances. This legislation, for the first 
time, would make those who provide this information to the credit 
bureaus a part of the system and, under very carefully crafted 
language, would be held responsible for information that was inaccurate 
under certain circumstances, as I will explain in a bit more detail in 
a moment.
  The bill attempts to safeguard the privacy of information contained 
in a consumer's credit file by requiring users of consumer reports to 
identify a permissible purpose under the law before acquiring a report.
  Mr. President, if you have never had occasion to examine your own 
credit report, may I say, with all due respect, and the great respect 
that I have for the distinguished Presiding Officer who serves as 
chairman of the committee I serve under, I think you would find it a 
rather fascinating document.
  I had occasion to review my own in the context of a refinancing of my 
home. It had a good bit of misinformation, innocently--let me emphasize 
that--innocently incorporated into that report, but I was absolutely 
stunned to see entries in there that had no reference to me or my wife 
or our business or financial dealings. I want to emphasize that that 
information was corrected when I called it to their attention. I am not 
unmindful of the fact that perhaps as a U.S. Senator, perhaps they were 
a little more attentive to the concerns that I articulated. Some of the 
information there dated back to my days as Governor, where I was sued 
by virtually everyone whoever served a period of time in the Nevada 
penitentiary system, a defendant position that I take with some honor 
since I, frankly, thought most of those lawsuits were totally devoid of 
merit and the State's position was absolutely correct.
  But the point I am trying to make is that lots and lots of 
information is contained in that. There is a lot of information that is 
oftentimes inaccurate.
  I think we are a little bit troubled, too, as citizens with our right 
of privacy, with who has access to these reports, how broadly is that. 
This piece of legislation corrects some of the vagaries of the existing 
law in terms of who has access to our reports.
  Pretty clearly, it is essential for our credit system that generates, 
I think, about $700 billion--in that neighborhood--of credit, that a 
credit granting community have access so that you and I, when we buy a 
car or seek a loan or something which we desire, that we want to have, 
that good and timely information is present. That information needs to 
be available to those who are reviewing our credit history so we can 
buy those items.
  Nevertheless, there should be some limits in terms of the access to 
that information because of its extraordinarily private nature. These 
two fundamental changes are the essence of the legislation that we have 
talked about.

  Additionally, the bill provides consumers with an affirmative right 
to opt out--for example, those who seek prescreened lists of 
individuals with certain income level or part of a direct marketing 
campaign, all of which we acknowledge to be part of our business system 
in America--there is a provision in this legislation which allows a 
consumer to opt out, that is, that consumer does not want to be a part 
of that system. And that is provided with the use of a toll-free 
number; a consumer could call to get his or her name removed from the 
call list. And with the ever-increasing amount of mail solicitations, 
this is a welcome change.
  The bill also seeks to improve the accuracy in consumer reporting. 
For the first time the bill will apply the Federal Credit Reporting Act 
to businesses which provide the information contained in credit 
reports. Under the current law, those businesses providing the 
information, essentially the data that is relied upon by the credit 
bureaus, are not covered by the 1970 legislation. This leaves the 
consumer in a very helpless situation when a creditor mistakenly places 
adverse information in his or her credit file. Our bill requires 
businesses that furnish information to do so accurately and, moreover, 
to investigate disputes promptly.
  To keep mistakes to a minimum, the bill gives the firms that furnish 
information to credit bureaus--the retailers, credit card companies, 
and mortgage companies--the incentive to supply as accurate information 
as possible. The legislation does that by authorizing the Federal Trade 
Commission or State attorneys general to take action against businesses 
that have a practice or pattern--those are operative words, and they 
are words of art, Mr. President. We are not talking about innocent 
mistakes. We recognize that when you are talking about billions of 
pieces of information, mistakes are going to be made. We are talking 
about a practice that is part of a pattern, and so that is not just an 
isolated mistake.
  Second, that where those mistakes do occur--and they will occur--to 
fix the mistakes after they are discovered. In this sense we set up a 
process that is decidedly more consumer friendly than the situation 
that our friends who testified out there in Nevada, Miss Mobley and Mr. 
Kinkade, faced as they were trying to correct their problems.
  I think most of us are sympathetic to the fact that credit bureaus 
and those who supply this vast information are going to make some 
honest mistakes. With a common last name such as my own, I can relate, 
as I have previously, some inaccuracies that occurred in my own credit 
history report.
  I think what really gets people fired up, Mr. President, is the 
inconvenience, the time, and the utter frustration--and I wish every 
one of my colleagues could have heard the two highly responsible 
citizens in my State share their stories, what they went through trying 
to get this information corrected after the mistake was discovered. In 
one instance, it took 3 years for it to be corrected. In another one, 
the mistake that was originally detected 4 years previous was still a 
problem when Mr. Kinkade was trying to buy his satellite dish. This is 
just an intolerable situation.
  In our hearings in Nevada, we heard from many people who were put 
through the wringer trying to get inaccurate information removed from 
the files. People do get angry. They get mad when they are forced to 
spend countless hours calling and writing to get these mistakes 
removed. As lawyers, some of us know how difficult it is to prove a 
negative.
  If our legislation accomplishes nothing else, I intend that it will 
turn around the burden of proof so that credit bureaus and furnishers 
of information will be responsible for verifying the accuracy of 
information when an individual points out the mistake in that credit 
report. This is an extraordinarily important feature of this 
legislation, and its significance, Mr. President, cannot be 
underestimated.
  Another recurring problem is that mistakes keep reappearing on a 
person's report even after the individual has brought the inaccuracy to 
the credit bureau's attention. Our bill would require the agency to 
notify the individual before that data can be reinserted into the 
credit history. Individuals would also be able to request a free copy 
of their report for 1 year afterwards to verify that, indeed, the 
mistake has not crept back into the credit history.
  While we are trying to put the onus on the furnishers to improve the 
data they provide and promptly correct mistakes, this legislation has 
been carefully balanced so that it will not inhibit the flow of 
information to credit bureaus. And I might just say, Mr. President, 
nobody would benefit with a system in which this information was not 
available to credit bureaus: Consumers would be denied the credit to 
which they would be entitled, and businesses would be unable to 
consummate sales, which is part of the business activity that is 
important to every community in America.
  That is why a delicate balance has been crafted to provide incentives 
to businesses to supply accurate information while not discouraging 
them from furnishing it. Furnishers of information will not be liable--
let me emphasize that for those of my colleagues who are listening in--
will not be liable for routine mistakes that naturally occur with the 
processing of these millions of data entries literally every day.
  So this bill does not establish nor contemplate a standard of 
perfection, just a good-faith effort to supply accurate information 
and, when notified, to properly correct those mistakes.
  Accurate credit reports, as I have indicated, are in everyone's best 
interest--the consumer, the credit bureau, and the business which bases 
its credit approval on these reports.
  Mr. President, it is my belief the best way to improve the accuracy 
of credit reports is for individuals to review their own files. Under 
the managers' amendment the bill provides for a free report for people 
who are unemployed, on welfare, or who have been victims of fraud. 
Additionally, all other consumers are entitled to one report per year 
at a small cost of $3. Individuals in our society who are less well off 
will get free copies of their reports, and the rest will have a rather 
modest charge to get that information. That is an important change 
because credit bureaus have in the past charged for these reports 
between $15 and $25 a report.
  As a former attorney general and Governor, I take very seriously 
States' rights and believe there is a high threshold before State law 
should be preempted by the Congress. However, when the operation of 
businesses in interstate commerce can be improved without--and I 
emphasize ``without''--disadvantaging consumers or causing undue harm 
to State efforts, I believe that Federal uniformity should be tried.
  In this bill specific provisions that lend themselves to Federal 
uniformity have been preempted. By way of example, this bill sets a 
national standard for timetables in terms of internal deadlines for 
compliance of certain corrective information and also the nature of 
disclosure forms.
  Consumers, in my judgment, are not disadvantaged by having a Federal 
timetable for reinvestigation, or a uniform disclosure form with 
respect to their rights, while businesses are greatly assisted and 
benefited by not having to meet 50 different timetables established by 
50 different States or 50 different forms established by 50 different 
States.
  Additionally, Mr. President, the FTC is given the authority to 
shorten the timetables should the technology warrant. And I would fully 
expect over the years the FTC will find that some of the technology 
that is making its way into the business--as I observed, 24 years ago a 
lot of these entries were done by hand, literally, as I guess they had 
been done since Biblical times in terms of relating to business 
transactions. The system now is much, much more sophisticated with the 
accessibility to enormous information retrieval systems.
  In our managers' amendment, this limited preemption is sunsetted at 
the end of 5 years.
  When representatives of the business community approached us about 
the need for uniformity in this area, they stressed the need to preempt 
multiple States' laws while a new Federal law demonstrated its 
effectiveness. This 5-year preemption period should provide adequate 
time to demonstrate whether these Federal standards are sufficient. And 
I believe with the authority provided the Federal Trade Commission in 
updating them, that will in fact be the case.
  Finally, Mr. President, our credit reporting reform bill provides 
protection against an abuse that has arisen under the generic of credit 
repair businesses--outfits that represent to consumers who have 
experienced problems with credit bureaus that they can have their 
problems solved and their credit records cleaned up.
  The record reflects that all too often the representations made by 
these so-called ``credit doctors'' prove to be misleading, deceiving 
consumers who pay high front-end fees. Our legislation requires that 
these credit repair clinics actually provide the service before seeking 
compensation. In effect, if they do not deliver, they do not get paid.
  Almost every American is impacted by the information contained in his 
or her credit reports, although most of us have little or no knowledge 
to the extent to which these files actually impact us.
  Our lifestyles, our livelihood, our reputations can be seriously 
affected by a bad credit report, often without our knowledge. Reforming 
credit reporting is one of the most significant actions we can take in 
Congress to benefit consumers nationwide. And if you do not think there 
are serious problems with credit reports, I suggest to my colleagues, 
ask around. I guarantee that you will find a lot of very angry, 
frustrated consumers who have dealt with this problem firsthand.
  Bear in mind that the No. 1 complaint at the Federal Trade Commission 
concerns credit bureaus. There are too many lives that are being 
adversely affected by inaccurate credit reports for us not to make 
every effort to improve the system.
  Student loans, car loans, and mortgages, even jobs and job 
promotions, often hang in the balance because of faulty information on 
credit reports.
  While we will never eliminate human error entirely, or computer error 
for that matter, the credit reporting process must be greatly improved. 
And S. 783 is a milestone in seeking that improvement.
  Mr. President, I thank the Chair.
  I yield the floor.
  Mr. BENNETT addressed the Chair.
  The PRESIDING OFFICER (Mr. Heflin). The Senator from Utah.


                     Right to Make a Point of Order

  Mr. BENNETT. Mr. President, I ask unanimous consent that my right to 
make a point of order under rule XXVI, paragraph 11(b), be preserved so 
that I might make that point of order at any time prior to final 
passage of S. 783.
  The PRESIDING OFFICER. Is there objection? Without objection, it is 
so ordered.
  Mr. BENNETT. Mr. President, thank you.
  Mr. President, I was one of the four on the committee who voted 
against this bill, and I am here today on behalf of the Republicans on 
the committee to see that it is handled in a proper and expeditious 
fashion. So I will not take advantage of my assignment from the 
committee to press my particular individual views on the matter. I 
realize that once the Senate has more of a full compliment of its 
Members on a day when we have rollcall votes that the distinguished 
Senator from Missouri [Mr. Bond], who is a cosponsor of the bill, will 
be sitting in this chair and carrying the responsibility on behalf of 
the Republican side of the committee.
  I do not want to, as I say, abuse my opportunity to be here in his 
place. His plane is late, and that is why the duty, if you will, has 
fallen to me.
  At the same time, Mr. President, I would like to express some general 
concerns about this legislation and make some general comments about 
the efforts of the majority.
  I agree completely that this is an area of great frustration and 
great challenge for many consumers. I have had the experience of 
personally reviewing my own credit report and seeing things there that 
I did not like. I have had the experience of having my credit turned 
down by a car dealer after looking at my report and deciding that I was 
not creditworthy. It was with some satisfaction that I resolved the 
issue by paying cash for the car and leaving the car dealer wondering 
what was valid about the credit report.
  So I understand from a personal circumstance how inaccurate and how 
frustrating these things can be. And I pay tribute to the Senator from 
Nevada and the Senator from Missouri for their effort to clean up the 
situation. I do have some amendments, however, that I will press upon 
the Senator from Nevada and the Senator from Missouri. And if I cannot 
work it out with them, then I will offer them on the floor, because I 
think there are some problems in the way the final bill has been 
drafted.
  I need to stress the structure of this system, which many people 
perhaps do not understand. The information that keeps the system 
flowing is voluntarily provided. There is no requirement under the law 
that a retailer or an auto dealer or a furniture store or that a bank 
make this information available. Those who feel that the liability 
provisions of this bill would affect them adversely have the right to 
simply stay out of the system by not putting in any information.
  A larger organization might very well exercise that right. By 
``larger organization'', I would mean one of the great national 
retailers with operations in all 50 States, stores and catalog 
operations scattered around the country, and a customer base in the 
tens if not hundreds of millions. Such an organization could just 
decide ``We will keep our records to ourselves. We will know who is 
creditworthy and who is not among our own customers, and we will not 
share that information with anybody else.'' That would be their right 
under this bill.
  If several retailers were to decide to do that, some interesting 
things would happen on the credit reports of the individuals who 
shopped with those retailers. A bank looking at the credit report of 
such an individual would notice that there was no report from retailer 
A and no report from retailer B. And the bank would say, ``It may well 
be that the reason these reports are not there is because the retailer 
has decided that individual is not creditworthy, and to avoid liability 
under S. 783 it has simply deleted that name. That being the case, I, 
the bank, had better be careful about granting credit to this 
individual.''
  So the bank could then adopt a policy that says the credit card that 
we would grant to this individual will have a credit limit of $300 
instead of $600, of $200 instead of $1,000, or whatever. Credit would 
then be restricted in a way that could not find remedy under this bill. 
There is nothing in this bill that says that a bank or a retailer or 
financial institution has to extend credit of a certain amount. The 
banks would say, ``Yes, we have given credit to the individual based on 
his or her credit report. And we have made the decision which is 
entirely within our rights to keep the limit down. We will not raise 
the limit until we have had enough personal experience with this 
individual so that we are comfortable with our own credit record and 
not dependent upon the credit report.''
  I realize this is a theoretical scenario. It may well not happen. By 
the same token, it may well happen. Who gets hurt under this kind of a 
circumstance if that is the result of this bill? Obviously, the 
consumer gets hurt because the consumer does not have the opportunity 
to receive as much credit as would otherwise be available. The credit 
crunch that we hear a great deal about in the Banking Committee would 
be exacerbated.
  But there is another group in America that would get hurt if this 
particular scenario were to come to pass, and that is the small 
retailer who does not have the bank of computers that can give him or 
her credit information on tens if not hundreds of millions of 
customers--the small retailer who has a relatively small territory, a 
relatively small operation, and who is completely dependent upon the 
credit reports from the credit bureau to make his or her decision about 
where credit should be extended. The opportunity is there for a 
customer to take advantage of a faulty report--faulty because the 
omissions are much greater. There the small businessman runs a much 
greater risk than he would than if some of the problems that I see in 
this bill could be corrected.
  So, Mr. President, I voted against the bill in committee. I think the 
bill can be fixed. I will have, as I say, some amendments to address 
some of these concerns. But I do again commend the Senator from Nevada, 
and the Senator from Missouri for their leadership in trying to fix 
these problems.
  I want to make it clear that my concern in the areas that are covered 
by my amendment does not send the message that I am unaware of the 
problems behind this legislation and of the desire of the two sponsors 
to get these problems corrected.
  We will debate this for the balance of this day, and we will be 
dealing with it tomorrow. With my rights reserved to raise the point of 
order, I will raise what arguments and parliamentary maneuvers I have 
to in order to try to get the situation resolved. But I do feel we can 
get it resolved because of the good faith of the individuals involved.
  With that, I yield the floor.
  Mr. BRYAN. Mr. President, I thank my friend and colleague from the 
State of Utah for his generous comments about the efforts Senator Bond 
and I have expended on this piece of legislation. I want to assure him 
that neither I nor Senator Bond are unmindful of the concerns which he 
has raised about the ongoing stream of information that must be made 
available by those who are in the business of furnishing credit, so 
that the overall system by which the consumer accesses credit is not in 
any way disadvantaged.
  He has shared with me privately, as he has on the floor just moments 
ago, his concern about this issue. I reassure my friend and welcome the 
opportunity to engage in conversation with him and his staff as we look 
at some of these things he has asked us to consider, and we are very 
conscious of the fact that if you go too far, you indeed restrict the 
flow of this information, which is not in the consumers' best interest, 
not in the business community's best interest, or in the economy's best 
interest. We recognize that, and I think we are in agreement, at least 
in terms of the principles he has espoused.
  It is for that reason that no private cause of action is provided to 
an individual for information that is provided initially that is 
erroneous, and that indeed before a liability attaches to the provider 
of a credit, there must be an affirmative determination by either the 
Federal Trade Commission or a State's attorney's general office that 
there has been a pattern and practice, which indicates a very egregious 
series of events, which would take it out of the area that I think is 
the concern of my friend from Utah--and it is a legitimate concern--
that, with the volume of information engendered, which is literally 
billions of bits of information each month--millions of reports are 
literally sold each day; I think it is 1.5 million each and every day--
you are going to have information in there that would be inaccurate. I 
assure my colleague that it was not our intention to impose liability 
when the inaccurate information is innocently done. I welcome the 
opportunity to visit with him and tell him that, in terms of preparing 
the language used, we are conscious of that and have talked to a number 
of those involved in the business of providing information to make sure 
that we address those legitimate concerns.
  Mr. President, I do not see anybody seeking recognition, so I suggest 
the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. HATCH. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Mathews). Without objection, it is so 
ordered.

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