[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.

                          ____________________