[Congressional Record Volume 140, Number 51 (Tuesday, May 3, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CONSUMER REPORTING REFORM ACT OF 1994
The PRESIDING OFFICER. Under the previous order, the Senate will now
resume consideration of S. 783, which 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 resumed consideration of the bill.
Mr. BRYAN. Mr. President, I ask unanimous consent that the report
accompanying S. 783 be star printed to reflect the changes I now send
to the desk.
The PRESIDING OFFICER. Is there objection?
Mr. BOND. No objection, Mr. President.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BOND. Hold it.
The PRESIDING OFFICER. There is objection.
Mr. BOND. Mr. President, my apologies. I thought we had this cleared.
I believe we may have it cleared within one moment. The staff wanted to
check again. So I would ask that we withhold.
Mr. President, I am now advised that there is no objection to this
unanimous-consent request.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BRYAN. Mr. President, I thank the Chair.
Amendment No. 1667
(Purpose: To make a series of amendments)
Mr. BRYAN. Mr. President, I send to the desk a managers' amendment
and ask unanimous consent that the amendment be agreed to and the
motion to reconsider laid upon the table.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:
The Senator from Nevada [Mr. Bryan], for himself, Mr. Bond,
and Mr. Riegle, proposes an amendment numbered 1667.
Mr. BRYAN. Mr. President, I ask unanimous consent that reading of the
amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
On page 80, line 2, strike ``and''.
On page 80, between lines 2 and 3, insert the following:
``(B) an identifier that is not unique to the consumer and
that is used by the person solely for the purpose of
verifying the identity of the consumer; and
On page 80, line 3, strike ``(B)'' and insert ``(C)''.
On page 80, line 20, strike ``subsection (d)'' and insert
``subsections (a)(2) and (d)''.
On page 105, strike lines 17 through 21 and insert the
following:
``(3) if the consumer certifies in writing that the
consumer--
``(A) is unemployed and intends to apply for employment
during the 60-day period beginning on the date on which such
certification is made;
``(B) is a recipient of public welfare assistance; or
``(C) has been the victim of fraud.
On page 106, line 7, strike the quotation marks and the
final period.
On page 106, between lines 7 and 8, insert the following
new subsection:
``(c) Consumer Reports at Specified Charge.--
``(1) In general.--Upon the written request of a consumer,
a consumer reporting agency that maintains a file on the
consumer shall make all disclosures pursuant to section 609
once during any 12-month period at the applicable charge
described in paragraph (2).
``(2) Applicable charge.--For purposes of paragraph (1),
the applicable charge shall not exceed the lesser of--
``(A) the total costs incurred by the consumer reporting
agency in making the disclosures; and
``(B) $3.''.
On page 107, strike lines 16 through 18 and insert
``paragraph (2); and''.
On page 112, between lines 14 and 15, insert the following
new subsection:
(d) Affiliate Sharing Notice Requirement.--Section 615 of
the Fair Credit Reporting Act (15 U.S.C. 1681m), as amended
by subsections (b) and (c), is amended by adding at the end
the following new subsection:
``(f) Affiliate Sharing Notice Requirement.--Whenever
credit or insurance for personal, family, or household
purposes involving a consumer is denied or the charge for
such credit is increased, either wholly or partly because of
information that is furnished to the user of the information
by a person related to the user by common ownership or
affiliated by corporate control, and that bears upon the
consumer's creditworthiness, credit standing, credit
capacity, character, general reputation, personal
characteristics, or mode of living, the user of such
information shall--
``(1) notify the consumer of the action, and upon a written
request from the consumer for the reasons for such action
that is received by the user not later than 60 days after
transmitting such notice, not later than 30 days after
receiving such request, disclose the nature of the
information to the consumer; and
``(2) provide to the consumer a toll-free telephone number
that is established and maintained by the user and that
enables the consumer to contact the user regarding the
action.''.
On page 112, line 20, strike ``A person'' and insert
``Except as provided in section 622(c), a person''.
On page 112, line 23, strike ``subsection (c)'' and insert
``subsection (b)''.
On page 113, strike lines 1 through 3.
On page 113, line 4, strike ``(c)'' and insert ``(b)''.
On page 113, line 18, strike ``(d)'' and insert ``(c)''.
On page 114, line 6, strike ``A person'' and insert
``Except as provided in section 622(c), a person''.
On page 114, line 9, strike ``subsection (c)'' and insert
``subsection (b)''.
On page 114, strike lines 10 through 12.
On page 114, line 13, strike ``(c)'' and insert ``(b)''.
On page 114, line 23, strike ``(d)'' and insert ``(c)''.
On page 115, strike line 23 and all that follows through
page 116, line 2, and insert the following:
``(2) Duty to correct and update information after
reinvestigation.--A person who furnishes to a consumer
reporting agency information that is disputed by a consumer
in accordance with section 611 and that, as a result of an
investigation conducted in accordance with subsection (b), is
determined by the person to be inaccurate or incomplete
shall--''.
On page 116, between lines 9 and 10, insert the following
new paragraph:
``(3) Duty to correct information otherwise determined to
be inaccurate or incomplete.--A person who regularly and in
the ordinary course of business furnishes to a consumer
reporting agency information that, other than as a result of
an investigation conducted in accordance with subsection (b),
is determined by the person to be inaccurate or incomplete
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, necessary to make
the information provided by the person to the agency complete
and accurate.
On page 116, line 10, strike ``(3)'' and insert ``(4)''.
On page 116, line 18, strike ``(4)'' and insert ``(5)''.
On page 117, line 1, strike ``(5)'' and insert ``(6)''.
On page 117, strike line 9 and all that follows through
page 118, line 10.
On page 118, line 11, strike ``(c)'' and insert ``(b)''.
On page 118, line 19, strike ``25-day'' and all that
follows through ``611(a)(1)'' and insert the following:
``applicable period under section 611(a), during which the
consumer reporting agency is required to complete actions
required by that section regarding that information''.
On page 118, line 25, strike ``(d)'' and insert ``(c)''.
On page 119, strike lines 1 through 3 and insert the
following:
``(1) Limitation on liability.--Sections 616 and 617 do not
apply to any failure to comply with paragraph (1), (3), (4),
(5), or (6) of subsection (a).
``(2) Enforcement.--Paragraphs (1), (3), (4), (5), and (6)
of subsection (a) shall be enforced exclusively under section
621 by the agencies identified in that section.
On page 119, line 4, strike ``(2)'' and insert ``(3)''.
On page 120, line 9, insert ``except in the case of a
violation of section 622(a)(1),'' after ``(D)''.
On page 121, line 23, insert ``, except that no civil
penalty may be imposed for a violation of section 622(a)(1)''
before the quotation marks.
On page 123, between lines 18 and 19, insert the following:
``(ii) section 605, relating to obsolete information,
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;
On page 123, line 19, strike ``(ii)'' and insert ``(iii)''.
On page 124, line 3, strike ``(iii)'' and insert ``(iv)''.
On page 124, line 8, strike ``(iv)'' and insert ``(v)''.
On page 124, line 18, strike ``under--'' and all that
follows through ``622(b)(2)'' and insert ``under section
609(c)''.
On page 126, line 6, strike ``under--'' and all that
follows through line 8 and insert the following: ``under
section 609(c).
``(4) Applicability.--Notwithstanding any other provision
of this subsection, beginning 6 years after the date of
enactment of the Consumer Reporting Reform Act of 1994, a
State may adopt a law, or certify that the voters of the
State have voted in favor of a constitutional or other
provision, which states explicitly and by its terms that the
law or provision is intended to supplement this Act, if the
law or provision gives greater protection to the consumer
than is provided under this Act.''.
On page 133, line 7, strike ``You have'' and all that
follows through the period on line 10.
On page 133, line 10, strike ``also''.
On page 133, line 14, insert the following after the
period: ``You are also entitled to receive a free copy of
your credit report if you are unemployed and intend to apply
for employment during the next 60 days, if you are a
recipient of public welfare assistance, or if you have been
the victim of fraud.''.
Mr. BRYAN. Mr. President, I ask unanimous consent that a summary of
the managers' amendment be printed in the Record.
There being no objection, the summary was ordered to be printed in
the Record, as follows:
Summary of Managers' Amendment to S. 783
SUNSET
Sunset Section 624 concerning Preemption. Sunset effective
6 years after date of enactment. Following the sunset, states
must enact new laws. Old laws will not go back into effect
automatically.
CIVIL LIABILITY
Clarify Section 622(a), the Duties of Furnishers, so that
there is no private cause of action against furnishers for
failure to furnish accurate information. In such instances,
only FTC and State Attorneys General may enforce the Act, but
they may not seek civil money penalties. The legislation
creates a private cause of action only for failure to
properly reinvestigate information and correct mistakes once
the furnisher has been formally notified of a problem under
the Act.
OBSOLETE INFORMATION
Preempt Section 605, regarding the time periods for which
information may be maintained on a consumer report. This
provision grandfathers all existing state laws.
AFFILIATE SHARING
Clarify Section 603(d) so that when credit is denied based
on information obtained from an affiliate, the credit grantor
must notify the consumer of such adverse action and provide a
toll-free number.
ONE-TIME NOTICE
Delete Section 622(b), the furnishers' one-time notice
requirement to the consumer that information on that consumer
is furnished to consumer reporting agencies.
IDENTIFIER
Expand Section 604(d)(2) to allow a person to receive with
the prescreen list an identifier that is not unique to the
consumer.
REINVESTIGATION TIME PERIOD FOR FURNISHER
Amend Section 622(c) to allow the furnisher time to
consider information submitted by the consumer in accordance
with Section 611(a).
FREE REPORT
Replace the provision in S. 783 requiring credit bureaus to
provide the consumers a free report every other year with
requirement that a free report be provided for people who are
unemployed, people who are on welfare, and people who have
been the victim of fraud. All consumers are entitled to one
report per year, upon written request at the lesser of cost
or $3.
The PRESIDING OFFICER. Without objection, the amendment is agreed to
and the motion to reconsider is laid on the table.
So the amendment (No. 1667) was agreed to.
Mr. COVERDELL. I rise today to express my appreciation to Senator
Bryan and Senator Bond for their willingness to address my concerns
regarding S. 783 and the free credit report requirements of the bill.
S. 783, as originally reported out of the Banking Committee, provided
for four instances in which a consumer could obtain a copy of his or
her credit report free of charge. First, a consumer was entitled to
receive a free credit report upon being turned down for credit or
otherwise adversely affected and again after the disputed information
has been reinvestigated. Additionally, a consumer was further entitled
to a free report 1 year after the reinvestigation report is provided,
as well as a free credit report every other year upon written request.
Mr. President, I was particularly troubled by the provision of S.
783, as it was reported out of the Banking Committee, which required
credit bureaus to give away free credit reports upon written request by
a consumer. I believe that it is simply wrong for the Congress of the
United States to require a private business to give its product away
for free. School registrars, hospitals, motor vehicle agencies and
other State and Federal Government agencies charge fees for providing
information to individuals, yet S. 783 as originally reported would
have prohibited credit reporting agencies from recovering the costs
associated with preparing and reproducing this report. Though the
provision as drafted tried to limit its scope to nationwide credit
reporting companies, the cost of the free report would have ultimately
been passed onto the 700 independently owned credit bureaus which may
or may not be affiliated with a nationwide credit reporting system.
This would have amounted to a mandate on small business.
That is why I am very glad that I was able to work with Senators Bond
and Bryan to reach an agreement, which is included in the managers'
amendment to this bill, which allows the credit reporting agencies to
charge $3 for credit reports issued to consumers upon their request. As
part of the agreement, consumers who are either unemployed and
intending to seek employment, receiving public welfare assistance or
who have been the victim of fraud will be entitled to receive their
credit report free of charge. While I have agreed to including these
exceptions in the managers' amendment, I wanted to make it clear that
these exceptions should be narrowly construed, so as not to be the
exceptions that swallowed the rule. It is my friend from Missouri's
opinion that this legislation would not prohibit credit reporting
agencies from establishing reasonable procedures to ensure that persons
receiving free reports meet the criteria set forth in the legislation?
Mr. BOND. I want to assure the Senator from Georgia that it is the
managers' intent that these exceptions should be construed narrowly,
and that credit reporting agencies would be permitted to institute
safeguards to ensure the reasonable use of these exceptions. The
exceptions were included as a way to ensure the disadvantaged persons
would be able to obtain copies of their credit report without incurring
prohibitive costs. The exceptions are not intended to require credit
reporting agencies to provide free credit reports upon request on a
widespread basis.
Mr. COVERDELL. Would the Senator from Missouri think it reasonable
that a person who is ``unemployed'' within the meaning of the manager's
amendment would have to show some written proof from an unemployment
office or other entity proving that he or she is unemployed and looking
for a job? Or that a person who has been the ``victim of fraud'' would
be required to show some written proof of the fraud? Like credit card
records showing that someone used his or her credit cards?
Mr. BOND. I would think that those sorts of requirements would be
reasonable and appropriate.
Mr. COVERDELL. I thank the Senator from Missouri for his thoughts on
the meaning of the language in the managers' amendment, and again, I
thank him and the Senator from Nevada for their work in reaching this
compromise.
Mr. D'AMATO. Mr. President, today the Senate continues consideration
of S. 783, the Consumer Credit Reform Act. S. 783 was introduced by
Senator Bryan and cosponsored by Senator Bond and Chairman Riegle. This
bill was reported by the Banking Committee on a bipartisan 15-4 vote.
This committee support for S. 783 is a tribute to the hard work that
Chairman Riegle and Senators Bryan and Bond have invested in this
issue. They have demonstrated great dedication in tackling the many
tough issues surrounding the Fair Credit Reporting Act, the law that S.
783 substantially amends.
The Banking Committee markup produced a bill that goes a far way
toward striking a proper balance between the legitimate consumer
protection concerns raised by the current law's operation, and the very
real operational concerns of the industries that must comply with the
FCRA. The committee markup produced a bill that provides certain
statutory uniformity that will allow businesses to develop consistent
compliance guidelines on key operational issues.
During the committee markup, I expressed my concern with respect to
two issues. First, I was concerned about the civil liability that S.
783 would impose on industries that provide credit history information
to credit bureaus. Second, I was concerned about the provision that
required credit bureaus to provide consumers a free copy of their
consumer report upon request every 2 years. I was uncomfortable
requiring any business to provide its work-product without proper
remuneration.
Nevertheless, I felt that the total package, as revised through the
efforts of Chairman Riegle and Senators Bryan and Bond, struck a
practical balance between privacy, accuracy, and bottom-line business
sense, and I was able to support the hard work of my colleagues, as
reported by the Banking Committee.
Today we will consider the committee-reported bill, as well as a
floor manager's amendment to be offered by Chairman Riegle and Senators
Bryan and Bond. Again, our colleagues should be congratulated for their
hard work. I am pleased that the floor manager's amendment addresses
the civil liability and free report problems that I had previously
expressed concern about.
Again, I congratulate Chairman Riegle and Senators Bond and Bryan for
their diligence and hard work. I will leave it to them to describe the
details of their floor amendment. I would also like to congratulate
Chairman Riegle on his continued leadership. S. 783 is the third bill
reported by the Banking Committee to be considered on the floor this
session. The chairman is to be commended for completing this
legislative agenda.
Mr. BRYAN. I thank the Chair.
I advise my colleagues that we are now available to consider any
amendments they may have. I would want to acknowledge my able
colleague, who has worked so dutifully over the last 4 years, in trying
to fashion a piece of legislation that addresses the problems of
consumers and responsibly deals with the concerns of the business
community, together with Senator Bennett, who had some concerns earlier
about one of the provisions. We have addressed that. I thank the
Senator from Utah for his cooperation. And the distinguished Senator
from Missouri, who is a cosponsor of this legislation with me, his
efforts I wish to note as well. I express my appreciation.
Mr. BOND addressed the Chair.
The PRESIDING OFFICER. The Chair recognizes the Senator from Missouri
[Mr. Bond].
Mr. BOND. Mr. President, again, I said yesterday how important the
leadership of my colleague from Nevada, Mr. Bryan, has been on this
bill. He has labored long and hard.
This is a very technical bill. There are some very controversial
issues in it. We have spent a great deal of time trying to work out
what we believe is a reasonable compromise so that consumers' interests
are protected and so that credit supplying and utilizing industries can
move forward.
As I discussed with my colleagues at the regular policy meeting
today, it required a great deal of compromise, but I am, indeed,
grateful for the excellent leadership that Senator Bryan has displayed
on this bill. That is the reason we are at this point.
I, too, wish to express thanks to Senator Bennett, from Utah, who
raised with us some very legitimate concerns. Through his guidance, I
think we have been able to make some further improvements. We may have
even more improvements before we are finished voting on the amendment,
but I urge all my colleagues to look carefully at the bill, to
recognize that a great deal of compromise has gone into this effort. We
are always willing to find ways to improve it. But at the end of the
day or shortly thereafter, we hope to be able to pass this bill and
send it to the House because there are some very real needs for the
protection of consumers, for the effective functioning of the credit
information system in our country today that are addressed in this
bill. Without these provisions, I do not think consumers' interests are
well served nor is the credit industry.
So with that, Mr. President, I yield the floor. 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. PRESSLER. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Order of Procedure
Mr. PRESSLER. Mr. President, I ask unanimous consent to speak for 5
minutes as if in morning business.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________