[Congressional Record Volume 140, Number 142 (Tuesday, October 4, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 4, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
           THE CONSUMER REPORTING REFORM ACT OF 1994, S. 783

  Mr. BOND. Mr. President, I rise today to stress how critical it is 
that we reform the Fair Credit Reporting Act [FCRA] before Congress 
recesses to finally bring relief to American consumers. As many of you 
know, I have been working for the last 4 years to pass legislation to 
revamp credit reporting laws.
  This bill is one of the most significant pieces of consumer 
legislation to be considered by the Congress this year. We have victory 
within our sights. The House has already acted and all that remains is 
Senate approval before being sent to the President for signature. What 
we will have accomplished with passage of S. 783 is consumer 
protections against the devastation of mistaken credit reports.
  If we are to be successful in correcting this situation, then S. 783 
needs to clear the Senate without ornamentation. Far too often, in the 
last minute rush that occurs at the end of a Congress when everyone 
tries to get their own legislation passed, crucial measures get lost. 
Or worse, are in danger of becoming a Christmas tree. If that happens, 
there is no hope of final passage by the House this year.
  The Fair Credit Reporting Act is ripe for revision. I have heard 
horror stories from many of my constituents who have tried to fix 
mistakes on their credit reports. They have encountered the same 
obstacles as millions of other consumers--months of waiting for credit 
reports to be fixed, credit grantors who are unresponsive and no one to 
listen to their complaints. These are not new problems.
  While it traditionally takes an inordinate amount of time for credit 
bureaus to fix credit reports, this bill will speed up the process by 
requiring action be completed in 30 days. If information in a report 
cannot be verified by the creditor who submitted it within 30 days, it 
will be removed from the report. In addition, it cannot be reinserted 
later unless the consumer is notified. And, if a consumer goes through 
the reinvestigation process and the errors remain, the consumer now has 
the right to sue the creditor for not correcting the information it 
submitted to the credit bureau.
  To ensure that consumers can reach someone at the credit bureaus to 
talk to them, our bill requires that credit bureaus establish toll-free 
numbers and have people available for consumers to talk to about their 
reports. In addition, consumers are provided three free reports 
throughout the reinvestigation process. And, free reports are available 
for people who are unemployed, on welfare, or have reason to believe 
that there is inaccurate information in their report due to fraud. All 
other consumers may get their report once a year for the lesser of cost 
or $3 each.
  Everyone wins by reforming credit reporting laws. The free flow of 
accurate information will help all sides by promoting good economic 
decisions in our free market economy. Consumers get increased 
disclosure and a time limit of 30 days for reinvestigations and the 
credit industry gets a limited Federal preemption, the ability to share 
information among affiliates, broader prescreening abilities and the 
certainty that only comes in law.
  Consumers need this legislation and I believe that the only 
responsible course for this body is to move quickly to passage. I urge 
my colleagues to put aside any political infighting and act on S. 783 
immediately.
  Thank you, Mr. President.

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