[Congressional Record Volume 140, Number 143 (Wednesday, October 5, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 5, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
  CONSUMER REPORTING REFORM ACT OF 1994, CREDIT REPAIR ORGANIZATIONS, 
               TRUTH IN LENDING ACT, AND DISASTER RELIEF

  Mr. KENNEDY. Mr. Speaker, I ask unanimous consent that the Committee 
on Banking, Finance and Urban Affairs be discharged from further 
consideration of the bill (H.R. 5178) to amend the Fair Credit 
Reporting Act, and for other purposes, and ask for its immediate 
consideration in the House.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Massachusetts?
  There was no objection.
  The Clerk read the bill, as follows:

                               H.R. 5178

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Table of contents.

            TITLE I--AMENDMENTS TO FAIR CREDIT REPORTING ACT

Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Furnishing consumer reports; use for employment purposes.
Sec. 104. Amendments relating to use of consumer reports for 
              prescreening; prohibition on unauthorized or uncertified 
              use of information.
Sec. 105. Consumer consent required to furnish consumer report 
              containing medical information.
Sec. 106. Amendments relating to obsolete information and information 
              contained in consumer reports.
Sec. 107. Amendments relating to compliance procedures.
Sec. 108. Amendments relating to consumer disclosures.
Sec. 109. Amendments relating to procedures in case of the disputed 
              accuracy of any information in a consumer's file.
Sec. 110. Amendment relating to charges for disclosure.
Sec. 111. Amendments relating to duties of users of consumer reports 
              and duties of affiliates sharing certain information.
Sec. 112. Amendments relating to civil liability.
Sec. 113. Amendments relating to responsibilities of persons who 
              furnish information to consumer reporting agencies.
Sec. 114. Investigative consumer reports.
Sec. 115. Increased criminal penalties for obtaining information under 
              false pretenses.
Sec. 116. Administrative enforcement.
Sec. 117. State enforcement of Fair Credit Reporting Act.
Sec. 118. Federal Reserve Board authority.
Sec. 119. Preemption of State law.
Sec. 120. Action by FTC and Federal Reserve Board.
Sec. 121. Amendment to Fair Debt Collection Practices Act.
Sec. 122. Furnishing consumer reports for purposes relating to child 
              support.
Sec. 123. Disclosure of information and consumer reports to FBI for 
              counterintelligence purposes.
Sec. 124. Effective dates.
Sec. 125. Relationship to other law.
Sec. 126. Sense of Senate.
Sec. 127. Technical correction to Depository Institutions Management 
              Interlocks Act.

                 TITLE II--CREDIT REPAIR ORGANIZATIONS

Sec. 201. Regulation of credit repair organizations.

                    TITLE III--TRUTH IN LENDING ACT

Sec. 301. Treatment of delivery fees and intangibles taxes.
Sec. 302. Limitations on liability.

                       TITLE IV--DISASTER RELIEF

Sec. 401. Depository institutions disaster relief.
            TITLE I--AMENDMENTS TO FAIR CREDIT REPORTING ACT

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Consumer Reporting Reform 
     Act of 1994''.

     SEC. 102. 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)(1) The term `adverse action' means the following:
       ``(A) A denial or revocation of credit, a denial of an 
     application for an increase of an existing credit limit, an 
     unfavorable 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; except 
     that the term `adverse action' does not include--
       ``(i) a refusal to extend additional credit under an 
     existing credit arrangement if the applicant is delinquent or 
     otherwise in default as to that account, or
       ``(ii) a refusal or failure to authorize an account 
     transaction at a point of sale which would exceed a 
     previously established credit limit.
       ``(B) A denial or cancellation of, an increase in any 
     charge for, or a 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.
       ``(C) A denial of employment or any other decision for 
     employment purposes which adversely affects any current or 
     prospective employee.
       ``(D) A denial or cancellation of, 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).
       ``(E) An action taken or determination made--
       ``(i) in connection with an application which was made by, 
     or a transaction which was initiated by, any consumer, or in 
     connection with a review of account information under section 
     604(a)(3)(E)(ii); and
       ``(ii) which is adverse to the interest of the consumer.
       ``(2) For purposes of any determination of whether an 
     action is an adverse action under paragraph (1)(A), all 
     appropriate final findings, decisions, commentary, and orders 
     issued under section 701(d)(6) of the Equal Credit 
     Opportunity Act by the Board of Governors of the Federal 
     Reserve System or any court shall apply.''.
       (b) Firm Offer of Credit.--Section 603 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a) is further amended by adding 
     after subsection (k) (as added by subsection (a) of this 
     section) the following:
       ``(l) The term `firm offer of credit' means any offer of 
     credit to a consumer that will be honored if the consumer is 
     determined, based on information in a consumer report on the 
     consumer, to meet the specific criteria used to select the 
     consumer for the offer, except that the offer may be further 
     conditioned solely on any combination of the following:
       ``(1) The consumer being determined, based on information 
     in the consumer's application for the credit, to meet 
     specific criteria bearing on creditworthiness that are 
     established--
       ``(A) before selection of the consumer for the offer; and
       ``(B) for the purpose of determining whether to extend 
     credit pursuant to the offer.
       ``(2) Verification--
       ``(A) that the consumer continues to meet the specific 
     criteria used to select the consumer for the offer, by using 
     information in a consumer report on the consumer, information 
     in the consumer's application for the credit, or other 
     information bearing on the creditworthiness of the consumer; 
     or
       ``(B) of the information in the consumer's application for 
     the credit, to determine that the consumer meets the specific 
     criteria bearing on creditworthiness.
       ``(3) The consumer furnishing any collateral that is a 
     requirement for the extension of the credit that was--
       ``(A) established before selection of the consumer for the 
     offer of credit; and
       ``(B) described to the consumer in the offer of credit.''.
       (c) Credit Transaction Which Is Not Initiated by the 
     Consumer.--Section 603 of the Fair Credit Reporting Act (15 
     U.S.C. 1681a) is further amended by adding after subsection 
     (l) (as added by subsection (b) of this section) the 
     following:
       ``(m) The term `credit transaction which is not initiated 
     by the consumer' does not include the use of a consumer 
     report by a person with which the consumer has an account, 
     for purposes of--
       ``(1) reviewing the account; or
       ``(2) collecting the account.''.
       (d) State.--Section 603 of the Fair Credit Reporting Act 
     (15 U.S.C. 1681a) is further amended by adding after 
     subsection (m) (as added by subsection (c) of this section) 
     the following:
       ``(n) The term `State' means any State, the Commonwealth of 
     Puerto Rico, the District of Columbia, and any territory or 
     possession of the United States.''.
       (e) Exclusions From 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 in clause (A)--
       (1) by inserting ``(i)'' after ``(A)'';
       (2) by inserting before the semicolon at the end the 
     following: ``, (ii) any communication of that information 
     among persons related by common ownership or affiliated by 
     corporate control, or (iii) any communication of information 
     from a credit application by a consumer among persons related 
     by common ownership or affiliated by corporate control if it 
     is clearly and conspicuously disclosed that the information 
     may be communicated among such persons and the consumer is 
     given the opportunity, prior to the time that the information 
     is initially communicated, to direct that such information 
     not be communicated among such persons'';
       (3) in clause (B) by striking ``or'' after the semicolon at 
     the end;
       (4) in clause (C) by striking the period and inserting a 
     semicolon; and
       (5) by adding at the end 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 transaction which is 
     not initiated by the consumer, or an insurance transaction 
     which is not initiated by the consumer, if either of those 
     persons has complied with section 615(d)(4)(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, or with respect to existing customers, the 
     consumer has not directed in writing that the report may not 
     be used for the transaction, in accordance with section 
     615(d)(4)(C).''.
       (f) Exclusion of Certain Communications by Employment 
     Agencies From Definition of Consumer Report.--Section 603 of 
     the Fair Credit Reporting Act (15 U.S.C. 1681(a)) is further 
     amended--
       (1) in subsection (d), as amended by subsection (e) of this 
     section, by adding at the end the following: ``The term also 
     does not include a communication described in subsection 
     (o).''; and
       (2) by adding at the end the following:
       ``(o) A communication is described in this subsection if it 
     is a communication--
       ``(1) that, but for the 3rd sentence of subsection (d), 
     would be an investigative consumer report;
       ``(2) that is made to a prospective employer for the 
     purpose of--
       ``(A) procuring an employee for the employer, or
       ``(B) procuring an opportunity for a natural person to work 
     for the employer;
       ``(3) that is made by a person that regularly performs such 
     procurement;
       ``(4) that is not used by any person for any purpose other 
     than a purpose described in paragraph (2) (A) or (B);
       ``(5) with respect to which--
       ``(A) the consumer who is the subject of the 
     communication--
       ``(i) consents orally or in writing to the nature and scope 
     of the communication, before the collection of any 
     information for the purpose of making the communication;
       ``(ii) consents orally or in writing to the making of the 
     communication to a prospective employer, before the making of 
     the communication; and
       ``(iii) in the case of consent under clause (i) or (ii) 
     given orally, is provided written confirmation of that 
     consent by the person making the communication, within 3 
     business days after the receipt of the consent by that 
     person;
       ``(B) the person that makes the communication does not, for 
     the purpose of making the communication, make any inquiry 
     that if made by a prospective employer of the consumer who is 
     the subject of the communication would violate any applicable 
     Federal or State equal employment opportunity law or 
     regulation; and
       ``(C) the person that makes the communication--
       ``(i) discloses in writing to the consumer who is the 
     subject of the communication, within 5 business days after 
     receiving any request from the consumer for such disclosure, 
     the nature and substance of all information in the consumer's 
     file at the time of the request, except that the sources of 
     information that is acquired solely for use in making the 
     communication and actually used for no other purpose need not 
     be disclosed other than under appropriate discovery 
     procedures in the court in which an action is brought; and
       ``(ii) notifies the consumer that is the subject of the 
     communication, in writing, of the consumer's right to request 
     the information described in clause (i).''.
       (g) Consumer Reporting Agency That Compiles and Maintains 
     Files on a Nationwide Basis.--Section 603 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a) is further amended by adding 
     after subsection (o) (as added by subsection (f) of this 
     section) the following:
       ``(p) The term `consumer reporting agency that compiles and 
     maintains files on consumers on a nationwide basis' means a 
     consumer reporting agency that regularly engages in the 
     practice of assembling or evaluating, and maintaining, for 
     the purpose of furnishing consumer reports to third parties 
     bearing on a consumer's creditworthiness, credit standing, or 
     credit capacity, each of the following regarding consumers 
     residing nationwide:
       ``(1) Public record information.
       ``(2) Credit account information from persons who furnish 
     that information regularly and in the ordinary course of 
     business.''.
       (h) Clerical Amendment.--Section 603(d) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a(d)) is amended in the first 
     sentence--
       (1) by inserting ``(1)'' after ``in whole or in part for''; 
     and
       (2) by striking ``(1)'' before ``credit or insurance''.

     SEC. 103. FURNISHING CONSUMER REPORTS; USE FOR EMPLOYMENT 
                   PURPOSES.

       (a) Furnishing Consumer Reports for Business 
     Transactions.--Section 604 of the Fair Credit Reporting Act 
     (15 U.S.C. 1681b) is amended--
       (1) by inserting ``(a) In General.--'' before ``A consumer 
     reporting agency''; and
       (2) in subsection (a)(3) (as designated by paragraph (1) of 
     this subsection) by striking subparagraph (E) and inserting 
     the following:
       ``(E) otherwise has a legitimate business need for the 
     information--
       ``(i) in connection with a business transaction that is 
     initiated by the consumer; or
       ``(ii) to review an account to determine whether the 
     consumer continues to meet the terms of the account.''.
       (b) Furnishing and Using Consumer Reports for Employment 
     Purposes.--Section 604 of the Fair Credit Reporting Act (15 
     U.S.C. 1681b) is further amended 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 
     if--
       ``(A) the person who obtains such report from the agency 
     certifies to the agency that--
       ``(i) the person has complied with paragraph (2) with 
     respect to the consumer report, and the person will comply 
     with paragraph (3) with respect to the consumer report if 
     paragraph (3) becomes applicable; 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) the consumer reporting agency provides with the 
     report a summary of the consumer's rights under this title, 
     as prescribed by the Federal Trade Commission under section 
     609(c)(3).
       ``(2) Disclosure to consumer.--A person may not procure a 
     consumer report, or cause a consumer report to be procured, 
     for employment purposes with respect to any consumer unless--
       ``(A) a clear and conspicuous disclosure has been made in 
     writing to the consumer at any time before the report is 
     procured or caused to be procured, in a document that 
     consists solely of the disclosure, that a consumer report may 
     be obtained for employment purposes; and
       ``(B) the consumer has authorized in writing the 
     procurement of the report by that person.
       ``(3) Conditions on use for adverse actions.--In using a 
     consumer report for employment purposes, before taking any 
     adverse action based in whole or in part on the report a 
     person shall provide to the consumer to whom the report 
     relates--
       ``(A) a copy of the report;
       ``(B) a description in writing of the consumer's rights 
     under this title, as prescribed by the Federal Trade 
     Commission under section 609(c)(3); and
       ``(C) a reasonable period (not required to exceed 5 
     business days following receipt of the report by the 
     consumer) to respond to any information in the report that is 
     disputed by the consumer and notice in writing of the 
     opportunity for the consumer to respond in that period, 
     except that such an opportunity to respond and notice are not 
     required if the person takes the adverse action based on a 
     reasonable belief that the consumer has engaged in fraudulent 
     or criminal activity that is related to, or that could 
     affect, the consumer's employment.
       ``(4) Limitation on purposes.--Subject to paragraph (1), a 
     consumer reporting agency may furnish information bearing on 
     the creditworthiness of a consumer, and a person may use such 
     information, for employment purposes that do not relate to 
     employment of an individual in an executive or administrative 
     position, only if--
       ``(A) the employment requires or is expected to require a 
     security clearance issued by an agency of the United States 
     or any State as a condition for employment;
       ``(B) the employment requires or is expected to require the 
     individual to be covered by a fidelity bond; or
       ``(C) the employment requires or is expected to require the 
     individual, on a regular basis and as part of the normal 
     duties of employment--
       ``(i) to handle or otherwise have access to substantial 
     amounts of cash or other things of value of the employer: or
       ``(ii) to engage in any conduct or activity with respect to 
     which the employee has a fiduciary duty.
       ``(5) Executive or administrative position defined.--
       ``(A) In general.--For purposes of paragraph (4), the term 
     `executive or administrative position' means any position--
       ``(i) for which compensation is on a salary basis and not 
     an hourly basis; and
       ``(ii) having policy making, managerial, professional, or 
     supervisory responsibilities.
       ``(B) Application of existing findings, etc.--For purposes 
     of determining under subparagraph (A)(ii) whether a position 
     has policy making, managerial, professional, or supervisory 
     responsibilities, all appropriate final administrative and 
     judicial findings, decisions, commentary, and orders issued 
     under the Federal Election Campaign Act of 1971, or the 
     regulations issued under that Act, shall apply.''.

     SEC. 104. AMENDMENTS RELATING TO USE OF CONSUMER REPORTS FOR 
                   PRESCREENING; PROHIBITION ON UNAUTHORIZED OR 
                   UNCERTIFIED USE OF INFORMATION.

       (a) In General.--Section 604 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681b), as amended by section 103, is further 
     amended--
       (1) in subsection (a) by striking ``A consumer reporting 
     agency'' and inserting ``Subject to subsection (c), any 
     consumer reporting agency''; and
       (2) by adding after subsection (b) (as added by section 
     103(b)) the following new subsections:
       ``(c) Furnishing Reports in Connection With Credit 
     Transactions Not Initiated by the Consumer.--
       ``(1) In general.--A consumer reporting agency may furnish 
     a consumer report relating to any consumer pursuant to 
     subsection (a)(3)(A) in connection with any credit 
     transaction which 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;
       ``(ii) the consumer reporting agency has complied with 
     subsection (d); and
       ``(iii) there is not in effect an election by the consumer, 
     made in accordance with subsection (d), to have the 
     consumer's name and address excluded from lists of names 
     provided by the agency pursuant to this paragraph.
       ``(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;
       ``(B) an identifier that is not unique to the consumer and 
     is used by the person solely for the purpose of verifying the 
     identity of the consumer; and
       ``(C) 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)(5), a consumer reporting agency shall not 
     furnish to any person a record of inquiries in connection 
     with credit transactions which are not initiated by a 
     consumer.
       ``(d) Election of Consumer To Be Excluded From Lists.--
       ``(1) In general.--A consumer may elect to have the 
     consumer's name and address excluded from any list provided 
     by a consumer reporting agency in connection with a credit 
     transaction which is not initiated by the consumer, by 
     notifying the agency in accordance with paragraph (2) that 
     the consumer does not consent to any use of consumer reports 
     relating to the consumer in connection with any credit 
     transaction which is not initiated by the consumer.
       ``(2) Manner of notification.--A consumer shall notify a 
     consumer reporting agency under paragraph (1)--
       ``(A) through the notification system maintained by the 
     agency under paragraph (5), or
       ``(B) by submitting to the agency a signed notice of 
     election form issued by the agency for purposes of this 
     subparagraph.
       ``(3) Response of agency after notification through 
     system.--Upon receipt of notification of the election of a 
     consumer under paragraph (1) through the notification system 
     maintained by the agency under paragraph (5), a consumer 
     reporting agency shall--
       ``(A) inform the consumer that the election is effective 
     only for a 2-year period if the consumer does not submit to 
     the agency a signed notice of election form issued by the 
     agency for purposes of paragraph (2)(B); and
       ``(B) provide to the consumer such a form if requested by 
     the consumer, by not later than 5 business days after 
     receiving the notification through the system in the case of 
     a request made at the time the consumer provides notification 
     through the system.
       ``(4) 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 the consumer notifies 
     the agency in accordance with paragraph (2);
       ``(B) shall be effective with respect to a consumer 
     reporting agency--
       ``(i) subject to subparagraph (C), for the 2-year period 
     beginning on the date the consumer notifies the agency of the 
     election, in the case of an election for which a consumer 
     notifies the agency only in accordance with paragraph (2)(A); 
     or
       ``(ii) until the consumer notifies the agency under 
     subparagraph (C), in the case of an election for which a 
     consumer notifies the agency in accordance with paragraph 
     (2)(B);
       ``(C) shall not be effective after the date on which the 
     consumer notifies the agency, through the notification system 
     established by the agency under paragraph (5), that the 
     election is no longer effective; and
       ``(D) shall be effective with respect to each affiliate of 
     the agency.
       ``(5) Notification system, generally.--Each consumer 
     reporting agency which furnishes a consumer report in 
     connection with any credit transaction which is not initiated 
     by a consumer, shall--
       ``(A) establish and maintain a notification system, 
     including a toll-free telephone number, which permits any 
     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 for such a transaction; and
       ``(B) publish by not later than 365 days after the date of 
     the enactment of the Consumer Reporting Reform Act of 1994, 
     and at least annually thereafter, in a publication of general 
     circulation in the area served by the agency--
       ``(i) a notification that information in consumer files 
     maintained by the agency may be used in connection with such 
     transactions; and
       ``(ii) the address and toll-free telephone number for 
     consumers to use to notify the agency of the consumer's 
     election under subparagraph (A).

     Establishment and maintenance of a notification system 
     (including a toll-free telephone number) and publication by a 
     consumer reporting agency on its own behalf and on behalf of 
     any of its affiliates in accordance with this paragraph is 
     deemed to be compliance with this paragraph by each of those 
     affiliates.
       ``(6) Notification system by agencies which operate 
     nationwide.--Each consumer reporting agency which compiles 
     and maintains files on consumers on a nationwide basis shall 
     establish and maintain a notification system for purposes of 
     paragraph (5) jointly with other such consumer reporting 
     agencies.''.
       (b) Use of Information Obtained From Reports.--Section 604 
     of the Fair Credit Reporting Act (15 U.S.C. 1681b) is further 
     amended by adding after subsection (d) (as added by 
     subsection (a) of this section) the following new subsection:
       ``(e) Certain Use or Obtaining of Information Prohibited.--
     A person shall not use or obtain 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 through a general or 
     specific certification.''.

     SEC. 105. CONSUMER CONSENT REQUIRED TO FURNISH CONSUMER 
                   REPORT CONTAINING MEDICAL INFORMATION.

       Section 604 of the Fair Credit Reporting Act (15 U.S.C. 
     1681b), as amended by sections 103 and 104, is further 
     amended by adding at the end the following:
       ``(f) Furnishing Reports Containing Medical Information.--A 
     consumer reporting agency shall not furnish for employment 
     purposes, or in connection with a credit transaction, a 
     consumer report which contains medical information about a 
     consumer, unless the consumer consents to the furnishing of 
     the report.''.

     SEC. 106. AMENDMENTS RELATING TO OBSOLETE INFORMATION AND 
                   INFORMATION CONTAINED IN CONSUMER REPORTS.

       (a) Repeal Large-Dollar Exceptions.--Section 605 of the 
     Fair Credit Reporting Act (15 U.S.C. 1681c) is amended--
       (1) in subsection (a) by striking ``(a) Except as 
     authorized under subsection (b), no'' and inserting
       ``(a) Information Excluded From Consumer Reports.--No''; 
     and
       (2) by striking subsection (b).
       (b) Clarification of Reporting Period.--Section 605 of the 
     Fair Credit Reporting Act (15 U.S.C. 1681c), as amended by 
     subsection (a), is further amended by adding at the end the 
     following new subsection:
       ``(b) Running of Reporting Period.--(1) The 7-year period 
     referred to in paragraphs (4) and (6) of subsection (a) shall 
     begin, with respect to any delinquent account which is placed 
     for collection (internally or by referral to a 3d 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 which immediately preceded the collection 
     activity, charge to profit and loss, or similar action.
       ``(2) Paragraph (1) applies only to items of information 
     added to a consumer report on or after the date that is 455 
     days after the date of the enactment of the Consumer 
     Reporting Reform Act of 1994.''.
       (c) Additional Information on Bankruptcy Filings 
     Required.--Section 605 of the Fair Credit Reporting Act (15 
     U.S.C. 1681c) is further amended by adding after subsection 
     (b) (as added by subsection (b) of this section) the 
     following new subsection:
       ``(c) Information Required To Be Disclosed.--Any consumer 
     reporting agency which furnishes a consumer report which 
     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 title 11, United States Code, 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.''.
       (d) Indication of Closure of Account; Indication of Dispute 
     by Consumer.--Section 605 of the Fair Credit Reporting Act 
     (15 U.S.C. 1681c) is further amended by adding after 
     subsection (c) (as added by subsection (c) of this section) 
     the following new subsections:
       ``(d) Indication of Closure of Account by Consumer.--If a 
     consumer reporting agency is notified pursuant to section 
     623(a)(4) that a credit account of a consumer was voluntarily 
     closed by the consumer, the agency shall indicate that fact 
     in any consumer report that includes information related to 
     the account.
       ``(e) Indication of Dispute by Consumer.--If a consumer 
     reporting agency is notified pursuant to section 623(a)(3) 
     that information regarding a consumer that was furnished to 
     the agency is disputed by the consumer, the agency shall 
     indicate that fact in each consumer report that includes the 
     disputed information.''.
       (e) Notation on Consumer Report.--Section 605 of the Fair 
     Credit Reporting Act (15 U.S.C. 1681c) is further amended by 
     adding at the end the following new subsection:
       ``(f) Certain Account Information.--A consumer reporting 
     agency, upon the written request of a consumer, and subject 
     to the submission of appropriate documentation by the 
     consumer, shall include with any information regarding a 
     failure of the consumer to make any payment on an account of 
     the consumer, a statement (in such form as the Federal Trade 
     Commission shall prescribe) that during the period when the 
     account in question became due, the consumer was receiving 
     assistance pursuant to a declaration of a disaster by the 
     President under the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act, or unemployment compensation under 
     the laws of any State (or, but for the exhaustion of 
     benefits, would be entitled to receive such compensation).''.
       (f) Clerical Amendments.--
       (1) The heading for section 605 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681c) is amended by striking 
     ``Obsolete information'' and inserting ``Requirements 
     relating to information contained in consumer reports''.
       (2) 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. 107. AMENDMENTS RELATING TO COMPLIANCE PROCEDURES.

       (a) 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 based in whole or in part on the 
     report.''.
       (b) Notice to Users and Providers of Information To Ensure 
     Compliance.--Section 607 of the Fair Credit Reporting Act (15 
     U.S.C. 1681e) is further amended by adding after subsection 
     (c) (as added by subsection (a) of this section) the 
     following new subsection:
       ``(d) Notice to Users and Furnishers of Information.--
       ``(1) Notice requirement.--A consumer reporting agency 
     shall provide to any person--
       ``(A) who regularly and in the ordinary course of business 
     furnishes information to the agency with respect to any 
     consumer; or
       ``(B) to whom a consumer report is provided by the agency;
     a notice of such person's responsibilities under this title.
       ``(2) Content of notice.--The Federal Trade Commission 
     shall prescribe the content of notices under paragraph 
     (1).''.
       (c) 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) is further amended by adding after 
     subsection (d) (as added by subsection (b) of this section) 
     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 any 
     information in the report) unless the person discloses to the 
     consumer reporting agency which originally furnishes the 
     report--
       ``(A) the identity of the end-user of the report (or 
     information), and
       ``(B) each permissible purpose under section 604 for which 
     the report is furnished to the end-user of the report (or 
     information).
       ``(2) Responsibilities of procurers for resale.--A person 
     which procures a consumer report for purposes of reselling 
     the report (or any information in the report) shall--
       ``(A) establish and comply with reasonable procedures 
     designed to ensure that the report (or information) is resold 
     by the person only for a purpose for which the report may be 
     furnished under section 604, including by requiring that each 
     person to which the report (or information) is resold and 
     which resells or provides the report (or information) to any 
     other person--
       ``(i) identifies each end user of the resold report (or 
     information);
       ``(ii) certifies each purpose for which the report (or 
     information) will be used; and
       ``(iii) certifies that the report (or 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. 108. 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)) is amended to read as follows:
       ``(3)(A) Identification of each person (including each end-
     user identified under section 607(e)(1)) who procured a 
     consumer report--
       ``(i) for employment purposes within the 2-year period 
     preceding the request; or
       ``(ii) for any other purpose within 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) Disclosure of Permissible Purposes.--Section 609(a) of 
     the Fair Credit Reporting Act (15 U.S.C. 1681g(a)) is further 
     amended by adding at the end the following:
       ``(4) The permissible purpose under section 604, by 
     category, for which each person identified under paragraph 
     (3) procured a consumer report.''.
       (d) Information Regarding Inquiries.--Section 609(a) of the 
     Fair Credit Reporting Act (15 U.S.C. 1681g(a)) is amended by 
     adding after paragraph (4) (as added by subsection (c) of 
     this section) the following:
       ``(5) A record of all inquiries received by the agency in 
     the 1-year period preceding the request that identified the 
     consumer in connection with a credit transaction which was 
     not initiated by the consumer.''.
       (e) 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, with each written disclosure by the 
     agency to the consumer under this section--
       ``(A) a written summary of all rights the consumer has 
     under this title; and
       ``(B) in the case of a consumer reporting agency that 
     compiles and maintains files on consumers on a nationwide 
     basis, a toll-free telephone number established by the agency 
     at which personnel are accessible to consumers during normal 
     business hours.
       ``(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 phone number of each such agency, in a form that 
     will assist the consumer in selecting the appropriate agency;
       ``(D) a statement that the consumer may have additional 
     rights under State law and that the consumer may wish to 
     contact a State or local consumer protection agency or a 
     State attorney general to learn of those rights; and
       ``(E) 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 under 
     section 605 or cannot be verified.
       ``(3) Form of summary of rights.--For purposes of this 
     subsection and any disclosure by a consumer reporting agency 
     required under this title with respect to consumers' 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 of the rights of 
     consumers required under this title.''.
       (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 ``and the written summary of the rights of the 
     consumer prepared pursuant to section 609(c)'' before the 
     semicolon.
       (f) 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) In General.--
       ``(1) Proper identification.--A consumer reporting agency 
     shall require, as a condition of making the disclosures 
     required under section 609, that the consumer furnish proper 
     identification.
       ``(2) Disclosure in writing.--Except as provided in 
     subsection (b), the disclosures required to be made under 
     section 609 shall be provided under that section in writing.
       ``(b) Other Forms of Disclosure.--
       ``(1) In general.--If authorized by a consumer, a consumer 
     reporting agency may make the disclosures required under 
     609--
       ``(A) other than in writing; and
       ``(B) in such form as may be--
       ``(i) specified by the consumer in accordance with 
     paragraph (2); and
       ``(ii) available from the agency.
       ``(2) Form.--A consumer may specify pursuant to paragraph 
     (1) that disclosures under section 609 shall 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;
       ``(C) by electronic means, if available from the agency; or
       ``(D) by any other reasonable means that is 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 609(a) of the Fair Credit Reporting Act (15 
     U.S.C. 1681h(a)) is amended in the matter preceding paragraph 
     (1) by striking ``and proper identification of any consumer'' 
     and inserting ``and subject to section 610(a)(1)''.
       (B) Section 610 of the Fair Credit Reporting Act (15 U.S.C. 
     1681h) is amended in the heading for the section by inserting 
     ``and form'' after ``Conditions''.
       (C) The table of sections at the beginning of the Fair 
     Credit Reporting Act (15 U.S.C. 1681a et seq.) is amended in 
     the item relating to section 610 by inserting ``and form'' 
     after ``Conditions''.

     SEC. 109. 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) Reinvestigations of Disputed Information.--
       ``(1) Reinvestigation required.--
       ``(A) In general.--If the completeness or accuracy of any 
     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, or delete the 
     item from the file in accordance with paragraph (5), before 
     the end of the 30-day period beginning on the date the agency 
     receives the notice of the dispute from the consumer.
       ``(B) Extension of period to reinvestigate.--Except as 
     provided in subparagraph (C), the 30-day period described in 
     subparagraph (A) may be extended for up to, but for no more 
     than, 15 additional days if the consumer reporting agency 
     receives information from the consumer within that 30-day 
     period that is relevant to the reinvestigation.
       ``(C) Limitations on extension of period to 
     reinvestigate.--Subparagraph (B) shall not apply to any 
     reinvestigation in which, in the 30-day period described in 
     subparagraph (A), the information that is the subject of the 
     reinvestigation is found to be inaccurate or incomplete or 
     the consumer reporting agency determines that the information 
     cannot be verified.
       ``(2) Prompt notice of dispute to furnisher of 
     information.--
       ``(A) In general.--Before the end of the 5-business-day 
     period beginning on the date a consumer reporting agency 
     receives notice of a dispute from any consumer in accordance 
     with paragraph (1), the agency shall provide notification of 
     the dispute to any person that provided any item of 
     information in dispute, at the address and in the manner 
     established with the person. The notice shall include all 
     relevant information regarding the dispute that the agency 
     has received from the consumer.
       ``(B) Provision of other information from consumer.--The 
     consumer reporting agency shall promptly provide to the 
     person that provided the information in dispute all relevant 
     information regarding the dispute that is received by the 
     agency from the consumer after the period referred to in 
     subparagraph (A) and before the end of the period referred to 
     in paragraph (1)(A).
       ``(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 by the 
     consumer is frivolous or irrelevant, including by reason of a 
     failure by a consumer to provide sufficient information to 
     investigate the disputed information.
       ``(B) Notice of determination.--Upon making any 
     determination in accordance with subparagraph (A) that a 
     dispute is frivolous or irrelevant, a consumer reporting 
     agency shall notify the consumer within 5 business days of 
     such determination, by mail or, if authorized by the consumer 
     for that purpose, by any other means available to the agency.
       ``(C) Contents of notice.--A notice under subparagraph (B) 
     shall include--
       ``(i) the reasons for the determination under subparagraph 
     (A); and
       ``(ii) identification of any information required to 
     investigate the disputed information, which may consist of a 
     standardized form describing the general nature of such 
     information.
       ``(4) Consideration of consumer information.--In conducting 
     any reinvestigation under paragraph (1) with respect to 
     disputed information in the file of any consumer, the 
     consumer reporting agency shall review and consider all 
     relevant information submitted by the consumer in the period 
     described in paragraph (1)(A) with respect to such disputed 
     information.
       ``(5) Treatment of inaccurate or unverifiable 
     information.--
       ``(A) In general.--If, after any reinvestigation under 
     paragraph (1) of any information disputed by a consumer, an 
     item of the information is found to be inaccurate or 
     incomplete or cannot be verified, the consumer reporting 
     agency shall promptly delete that item of information from 
     the consumer's file. The information deleted shall consist 
     solely of the information that was disputed by the consumer 
     and shall not include any portion of the same item that was 
     not disputed.
       ``(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 by the consumer reporting agency unless the person 
     who furnishes the information certifies that the information 
     is complete and accurate.
       ``(ii) Notice to consumer.--If any information which has 
     been deleted from a consumer's file pursuant to subparagraph 
     (A) is reinserted in the file, the consumer reporting agency 
     shall notify the consumer of the reinsertion in writing 
     within 5 business days after the reinsertion or, if 
     authorized by the consumer for that purpose, by any other 
     means available to the agency.
       ``(iii) Additional information.--As part of or in addition 
     to the notice under clause (ii), a consumer reporting agency 
     shall provide to a consumer in writing within 5 business days 
     after the date of the reinsertion--

       ``(I) a statement that the disputed information has been 
     reinserted;
       ``(II) the name, business address, and telephone number of 
     any furnisher of information contacted, or of any furnisher 
     of information which contacted the consumer reporting agency, 
     in connection with the reinsertion of such information; and
       ``(III) a notice that the consumer has the right to add a 
     statement to the consumer's file disputing the accuracy or 
     completeness of the disputed 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 deleted pursuant to this paragraph (other than information 
     that is reinserted in accordance with subparagraph (B)(i)).
       ``(D) Free consumer report during 12-month period after 
     deletion of information.--Upon the request of a consumer, a 
     consumer reporting agency shall make all disclosures pursuant 
     to section 609 without charge to that consumer at least once 
     during the 12-month period after the consumer receives a 
     notification under paragraph (6) or paragraph (8) of the 
     deletion of information that is found to be inaccurate or 
     cannot be verified.
       ``(E) Automated reinvestigation system.--
       ``(i) In general.--Any consumer reporting agency that 
     compiles and maintains files on consumers on a nationwide 
     basis shall implement an automated system through which 
     furnishers of information to that consumer reporting agency 
     may report the results of a reinvestigation that finds 
     incomplete or inaccurate information in a consumer's file to 
     other such consumer reporting agencies.
       ``(ii) Nationwide consumer reporting agencies.--A consumer 
     reporting agency that compiles and maintains files on 
     consumers on a nationwide basis shall report the results of a 
     reinvestigation initiated by a consumer under section 611 
     that finds in the consumer's file information that is 
     incomplete or inaccurate or information that cannot be 
     verified, to any other consumer reporting agency that 
     compiles and maintains files on consumers on a nationwide 
     basis and--

       ``(I) to which a consumer report on the consumer was 
     provided within the preceding 2-year period for purposes of 
     resale by that other agency; or
       ``(II) to which a consumer report on the consumer was 
     provided within the preceding 7-year period for purposes of 
     merging that report to that other agency's proprietary files.

       ``(iii) Action required upon receipt of report.--If a 
     consumer reporting agency receives a report under clause 
     (ii), the agency shall--

       ``(I) change the data in its files in accordance with the 
     report;
       ``(II) delete data from its proprietary files in accordance 
     with the report; or
       ``(III) reinvestigate the disputed data that is the subject 
     of the report in accordance with section 611, with the source 
     of that data.

       ``(6) Notice of results of reinvestigation.--
       ``(A) In general.--A consumer reporting agency shall 
     provide written notice to a consumer of the results of a 
     reinvestigation under this subsection within 5 business days 
     after the completion of the reinvestigation, by mail or, if 
     authorized by the consumer for that purpose, 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 within the 5-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) a notice that, if requested by the consumer, a 
     description of the procedure used to determine the accuracy 
     and completeness of the information shall be provided to the 
     consumer by the agency, including the name, business address, 
     and telephone number of any furnisher of information 
     contacted in connection with such information;
       ``(v) a notice that the consumer has the right to add a 
     statement to the consumer's file disputing the accuracy or 
     completeness of the information; and
       ``(vi) a notice that the consumer has the right to request 
     under subsection (d) that the consumer reporting agency 
     furnish notifications under that subsection.
       ``(7) Description of reinvestigation procedure.--A consumer 
     reporting agency shall provide to a consumer a description 
     referred to in paragraph (6)(B)(iv) by not later than 15 days 
     after receiving a request from the consumer for that 
     description.
       ``(8) Expedited dispute resolution.--If a dispute regarding 
     an item of information in a consumer's file at a consumer 
     reporting agency is resolved in accordance with paragraph 
     (5)(A) by the deletion of the disputed information by not 
     later than 3 business days after the date on which the agency 
     receives notice of the dispute from the consumer in 
     accordance with paragraph (1)(A), then the agency shall not 
     be required to comply with paragraphs (2), (6), and (7) with 
     respect to that dispute if the agency--
       ``(A) provides prompt notice of the deletion to the 
     consumer by telephone;
       ``(B) includes in that notice, or in a written notice that 
     accompanies a confirmation and consumer report provided in 
     accordance with subparagraph (C), a statement of the 
     consumer's right to request under subsection (d) that the 
     agency furnish notifications under that subsection; and
       ``(C) provides written confirmation of the deletion and a 
     copy of a consumer report on the consumer which is based on 
     the consumer's file after the deletion, within 5 business 
     days after making the deletion.''.
       (b) Conforming Amendment.--Subsection (d) of section 611 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. 110. AMENDMENT RELATING TO CHARGES FOR DISCLOSURE.

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

     ``Sec. 612. Charges for certain disclosures

       ``(a) Reasonable Charges Allowed for Certain Disclosures.--
     Except as provided in subsections (b), (c), (d), and (e), a 
     consumer reporting agency may impose a reasonable charge on a 
     consumer--
       ``(1) for making a disclosure to the consumer pursuant to 
     section 609, which--
       ``(A) shall not exceed $8; and
       ``(B) shall be indicated to the consumer prior to making 
     disclosure; and
       ``(2) for furnishing pursuant to section 611(d), following 
     a reinvestigation under section 611(a), a statement, 
     codification, or summary to a person designated by the 
     consumer under that section after the 30-day period beginning 
     on the date of notification of the consumer under section 
     611(a)(6) or (8) with respect to the reinvestigation, which--
       ``(A) shall not exceed the charge that the agency would 
     impose on each designated recipient for a consumer report; 
     and
       ``(B) shall be indicated to the consumer prior to 
     furnishing such information.
       ``(b) Free Consumer Report After Adverse Notice to 
     Consumer.--Each consumer reporting agency that maintains a 
     file on a consumer shall make all disclosures pursuant to 
     section 609 without charge to the consumer if, within 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, the consumer makes a request under 
     section 609.
       ``(c) Free Consumer Report Under Certain Other 
     Circumstances.--Upon the request of the consumer, a consumer 
     reporting agency shall make all disclosures pursuant to 
     section 609 without charge to that consumer if the consumer 
     certifies in writing that the consumer--
       ``(1) is unemployed and intends to apply for employment in 
     the 60-day period beginning on the date the certification is 
     made;
       ``(2) is a recipient of public welfare assistance; or
       ``(3) has reason to believe that the file on the consumer 
     at the agency contains inaccurate information due to fraud.
       ``(d) Other Charges Prohibited.--A consumer reporting 
     agency shall not impose any charge on a consumer for 
     providing any notification required by this Act or making any 
     disclosure required by this Act, except as authorized by 
     subsection (a).
       ``(e) Annual Consumer Report Upon Request 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 in any 12-month period, at the charge specified in 
     paragraph (2).
       ``(2) Charge specified.--The charge for disclosures under 
     paragraph (1) shall be an amount that does not exceed the 
     lesser of--
       ``(A) the total cost incurred by the consumer reporting 
     agency in making the disclosures; or
       ``(B) $3.''.

     SEC. 111. AMENDMENTS RELATING TO DUTIES OF USERS OF CONSUMER 
                   REPORTS AND DUTIES OF AFFILIATES SHARING 
                   CERTAIN INFORMATION.

       (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 any person 
     takes any adverse action with respect to any consumer which 
     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 in writing--
       ``(A) the name, address, and telephone number of the 
     consumer reporting agency (including a toll-free telephone 
     number established by the agency if the agency compiles and 
     maintains files on consumers on a nationwide basis) which 
     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 and is 
     unable to provide the consumer the specific reasons why the 
     adverse action was taken; and
       ``(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), which notice shall 
     include an indication of the 60-day period under that section 
     for obtaining such a copy; 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.''.
       (b) Duties of Users Who Make Certain Credit 
     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 Solicitations 
     on the Basis of Information Contained in Consumer Files.--
       ``(1) In general.--Any person who uses a consumer report on 
     any consumer in connection with any credit transaction which 
     is not initiated by the consumer and which consists of a firm 
     offer of credit shall provide 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 because the 
     consumer satisfied the criteria for creditworthiness under 
     which the consumer was selected for the offer;
       ``(C) if applicable, the credit may not be extended if, 
     after the consumer responds to the offer, the consumer does 
     not meet the criteria used to select the consumer for the 
     offer or any applicable criteria bearing on creditworthiness 
     or does not furnish any required collateral;
       ``(D) the consumer has a right to prohibit information 
     contained in the consumer's file with any consumer reporting 
     agency from being used in connection with any credit 
     transaction which is not initiated by the consumer; and
       ``(E) the consumer may exercise the right referred to in 
     subparagraph (D) by notifying a notification system 
     established under section 604(d).
       ``(2) Disclosure of address and telephone number.--A 
     statement under paragraph (1) shall include the address and 
     toll-free telephone number of the appropriate notification 
     system established under section 604(d).
       ``(3) Maintaining criteria on file.--A person who makes an 
     offer of credit to a consumer under a credit transaction 
     described in paragraph (1) shall maintain on file the 
     criteria used to select the consumer to receive the offer, 
     all criteria bearing on creditworthiness that are the basis 
     for determining whether or not to extend credit pursuant to 
     the offer, and any requirement for the furnishing of 
     collateral as a condition of the extension of credit, until 
     the end of the 3-year period beginning on the date on which 
     the offer is made to the consumer.
       ``(4) 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 using 
     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--
       ``(i) consented to by the consumer in writing, or
       ``(ii) with respect to existing customers, the consumer has 
     been afforded the opportunity to direct in writing that the 
     report may not be provided to or used by persons who are 
     affiliated in the manner described in subparagraph (A) and 
     has not done so.
       ``(5) Authority of federal agencies regarding unfair or 
     deceptive acts or practices not affected.--This title is not 
     intended to affect the authority of any Federal agency to 
     enforce a prohibition against unfair or deceptive acts or 
     practices, including the making of false or misleading 
     statements in connection with credit transactions not 
     initiated by the consumer.''.
       (c) Duties of Person Taking Certain Actions Based on 
     Information Provided by Affiliate.--Section 615 of the Fair 
     Credit Reporting Act (15 U.S.C. 1681m) is further amended by 
     adding after subsection (d), as added by subsection (b) of 
     this section, the following new subsection:
       ``(e) Duties of Person Taking Certain Actions Based on 
     Information Provided by Affiliate.--
       ``(1) Duties, generally.--If a person takes an action 
     described in paragraph (2) with respect to a consumer based 
     in whole or in part on information described in paragraph 
     (3), the person shall--
       ``(A) notify the consumer in writing of the action, 
     including a statement that the consumer may obtain the 
     information in accordance with subparagraph (B) and may 
     contact the toll-free telephone number required by 
     subparagraph (C);
       ``(B) upon a written request from the consumer received 
     within 60 days after transmittal of the notice required by 
     subparagraph (A), disclose to the consumer in writing the 
     nature of the information upon which the action is based by 
     not later than 30 days after receipt of the request; and
       ``(C) make available a toll-free telephone number at which 
     personnel are available to communicate with the consumer 
     regarding the action during normal business hours.
       ``(2) Action described.--An action referred to in paragraph 
     (1) is--
       ``(A) an adverse action described in section 603(k)(1)(A) 
     taken in connection with a transaction initiated by the 
     consumer, or any adverse action described in section 
     603(k)(1) (B) or (C);
       ``(B) a denial of any other transaction initiated by the 
     consumer for personal, family, or household purposes; or
       ``(C) an increase in any charge for a transaction described 
     in subparagraph (B).
       ``(3) Information described.--Information referred to in 
     paragraph (1)--
       ``(A) except as provided in subparagraph (B), is 
     information that--
       ``(i) is furnished to the person taking the action by a 
     person related by common ownership or affiliated by common 
     corporate control to the person taking the action; and
       ``(ii) bears on the consumer's credit worthiness, credit 
     standing, credit capacity, character, general reputation, 
     personal characteristics, or mode of living; and
       ``(B) does not include--
       ``(i) information solely as to transactions or experiences 
     between the consumer and the person furnishing the 
     information; or
       ``(ii) information in a consumer report.''.
       (d) Conforming Amendment.--Section 615(c) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681m(c)) is amended by 
     striking ``subsections (a) and (b)'' and inserting ``this 
     section''.

     SEC. 112. AMENDMENTS RELATING TO CIVIL LIABILITY.

       (a) Civil Liability for Willful Noncompliance, Generally.--
     Section 616 of the Fair Credit Reporting Act (15 U.S.C. 
     1681n) is amended by striking ``Any consumer reporting agency 
     or user of information which'' and inserting ``(a) In 
     General.--Any person who''.
       (b) Minimum Civil Liability for Willful Noncompliance.--
     Section 616(1) of the Fair Credit Reporting Act (15 U.S.C. 
     1681n(1)) is amended to read as follows:
       ``(1)(A) any actual damages sustained by the consumer as a 
     result of the failure or damages of no less than $100 and no 
     more than $1,000; or
       ``(B) in the case of liability of a natural person for 
     obtaining a consumer report under false pretenses or 
     knowingly without a permissible purpose, actual damages 
     sustained by the consumer as a result of the failure or 
     $1,000, whichever is greater;''.
       (c) Civil Liability for Negligent Noncompliance.--Section 
     617 of the Fair Credit Reporting Act (15 U.S.C. 1681o) is 
     amended by striking ``Any consumer reporting agency or user 
     of information which'' and inserting ``(a) In General.--Any 
     person who''.
       (d) Attorney's Fees.--
       (1) Willful noncompliance.--Section 616 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681n) is amended by adding at the 
     end the following:
       ``(b) 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 the pleading, motion, 
     or other paper.''.
       (2) Negligent noncompliance.--Section 617 of the Fair 
     Credit Reporting Act (15 U.S.C. 1681o) is amended by adding 
     at the end the following:
       ``(b) 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 the pleading, motion, 
     or other paper.''.

     SEC. 113. 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 by redesignating section 623 as 
     section 624 and inserting after section 622 the following new 
     section:

     ``Sec. 623. Responsibilities of furnishers of information to 
       consumer reporting agencies

       ``(a) Duty of Furnishers of Information To Provide Complete 
     and Accurate Information.--
       ``(1) Prohibitions.--A person shall not furnish any 
     information to any consumer reporting agency if the person 
     knows or should have known the information is incomplete or 
     inaccurate.
       ``(2) Duty to correct and update information.--A person 
     who--
       ``(A) regularly and in the ordinary course of business 
     furnishes information to one or more consumer reporting 
     agencies about the person's transactions or experiences with 
     any consumer; and
       ``(B) has furnished to a consumer reporting agency 
     information that the person determines is not complete or 
     accurate;

     shall promptly notify the consumer reporting agency of that 
     determination and 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, and shall not thereafter 
     furnish to the agency any of the information that remains not 
     complete or accurate.
       ``(3) Duty to provide notice of dispute.--If the 
     completeness or accuracy of any information furnished by any 
     person to any consumer reporting agency is disputed to such 
     person by a consumer, the person may not furnish the 
     information to any 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 and in the ordinary course of business 
     furnishes information to a consumer reporting agency 
     regarding a consumer who has a credit account with that 
     person shall notify the agency of the voluntary closure of 
     the 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, by not later than 90 days after 
     furnishing the information, notify the agency of the month 
     and year of the commencement of the delinquency which 
     immediately preceded the action.
       ``(b) Duties of Furnishers of Information Upon Notice of 
     Dispute.--
       ``(1) In general.--After 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--
       ``(A) complete an investigation with respect to the 
     disputed information;
       ``(B) review all relevant information provided by the 
     consumer reporting agency pursuant to section 611(a)(2);
       ``(C) report the results of the investigation to the 
     consumer reporting agency; and
       ``(D) if the investigation finds that the information is 
     incomplete or inaccurate, report those results to all other 
     consumer reporting agencies to which the person furnished the 
     information and that compile and maintain files on consumers 
     on a nationwide basis.
       ``(2) Deadline.--A person shall complete all 
     investigations, reviews, and reports required under paragraph 
     (1) regarding information provided by the person to a 
     consumer reporting agency, before the end of the period under 
     section 611(a)(1) within which the consumer reporting agency 
     is required to complete actions required by that section 
     regarding that information.
       ``(c) Limitation on Liability.--Sections 616 and 617 do not 
     apply to any failure to comply with subsection (a), except as 
     provided in section 621(c)(1)(B).
       ``(d) Limitation on Enforcement.--Subsection (a) may be 
     enforced exclusively under section 621 by the Federal 
     agencies and officials and the State officials identified in 
     that section.''.
       (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 
     623 and inserting the following:

``623. Responsibilities of furnishers of information to consumer 
              reporting agencies.
``624. Relation to State laws.''.

     SEC. 114. INVESTIGATIVE CONSUMER REPORTS.

       Section 606 of the Fair Credit Reporting Act (15 U.S.C. 
     1681d) is amended--
       (1) in subsection (a)(1) by striking ``or'' after the 
     semicolon at the end and inserting ``and'';
       (2) by striking subsection (a)(2) and inserting the 
     following:
       ``(2) the person certifies or has certified to the consumer 
     reporting agency that--
       ``(A) the person has made the disclosures to the consumer 
     required by paragraph (1); and
       ``(B) the person will comply with subsection (b).'';
       (3) in subsection (b) by striking ``shall'' the second 
     place it appears; and
       (4) by adding at the end the following:
       ``(d) Prohibitions.--
       ``(1) Certification.--A consumer reporting agency shall not 
     prepare or furnish an investigative consumer report unless 
     the agency has received a certification under subsection 
     (a)(2) from the person who requested the report.
       ``(2) Inquiries.--A consumer reporting agency shall not 
     make an inquiry for the purpose of preparing an investigative 
     consumer report on a consumer for employment purposes if the 
     making of the inquiry by an employer or prospective employer 
     of the consumer would violate any applicable Federal or State 
     equal employment opportunity law or regulation.
       ``(3) Certain public record information.--Except as 
     otherwise provided in section 613, a consumer reporting 
     agency shall not furnish an investigative consumer report 
     which includes information which is a matter of public record 
     and which relates to an arrest, indictment, conviction, civil 
     judicial action, tax lien, or outstanding judgment, unless 
     the agency has verified the accuracy of the information 
     within the 30-day period ending on the date the report is 
     furnished.
       ``(4) Certain adverse information.--A consumer reporting 
     agency shall not prepare or furnish an investigative consumer 
     report on a consumer that contains information that is 
     adverse to the interest of the consumer and that is obtained 
     through a personal interview with a neighbor, friend, or 
     associate of the consumer or with another person with whom 
     the consumer is acquainted or who has knowledge of such item 
     of information, unless--
       ``(A) the agency has followed reasonable procedures to 
     obtain confirmation of the information, from an additional 
     source that has independent and direct knowledge of the 
     information; or
       ``(B) the person interviewed is the best possible source of 
     the information.''.

     SEC. 115. INCREASED CRIMINAL PENALTIES FOR OBTAINING 
                   INFORMATION UNDER FALSE PRETENSES.

       (a) Obtaining Information Under False Pretenses.--Section 
     619 of the Fair Credit Reporting Act (15 U.S.C. 1681q) is 
     amended by striking ``fined not more than $5,000 or 
     imprisoned not more than one year, or both'' and inserting 
     ``fined under title 18, United States Code, imprisoned for 
     not more than 2 years, or both''.
       (b) Unauthorized Disclosures by Officers or Employees.--
     Section 620 of the Fair Credit Reporting Act (15 U.S.C. 
     1681r) is amended by striking ``fined not more than $5,000 or 
     imprisoned not more than one year, or both'' and inserting 
     ``fined under title 18, United States Code, imprisoned for 
     not more than 2 years, or both''.

     SEC. 116. ADMINISTRATIVE ENFORCEMENT.

       (a) Available Enforcement Powers.--Section 621(a) of the 
     Fair Credit Reporting Act (15 U.S.C. 1681s(a))--
       (1) is amended in the second sentence by striking ``Act and 
     shall be subject to enforcement by the Federal Trade 
     Commission under section 5(b) thereof with respect to any 
     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 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'';
       (2) as amended by paragraph (1), is further amended by 
     inserting before the 3rd period the following: ``, 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''; and
       (3) as amended by paragraph (1), is further amended by 
     adding after the 3rd period the following: ``Notwithstanding 
     the preceding sentence, a court may not impose any civil 
     penalty on a person for a violation of section 623(a)(1) 
     unless the person has been enjoined from committing the 
     violation, or ordered not to commit the violation, in an 
     action or proceeding brought by or on behalf of the Federal 
     Trade Commission and has violated the injunction or order, 
     and the court may not impose any civil penalty for any 
     violation occurring before the date of the violation of the 
     injunction or order.''.
       (b) Agencies Responsible for Enforcement.--Section 621 of 
     the Fair Credit Reporting Act (15 U.S.C. 1681s) is amended--
       (1) in subsection (a), by inserting ``Enforcement by 
     Federal Trade Commission.--'' before ``Compliance with the 
     requirements''; and
       (2) in subsection (b), by striking the matter preceding 
     paragraph (1) and inserting the following:
       ``(b) Enforcement by Other Agencies.--Compliance with the 
     requirements imposed under this title with respect to 
     consumer reporting agencies, persons who use consumer reports 
     from such agencies, persons who furnish information to such 
     agencies, and users of information who are subject to section 
     615(e) shall be enforced under--''.

     SEC. 117. STATE ENFORCEMENT OF FAIR CREDIT REPORTING ACT.

       Section 621 of the Fair Credit Reporting Act (15 U.S.C. 
     1681s) is amended by redesignating subsection (c) as 
     subsection (d) and inserting after subsection (b) the 
     following new subsection:
       ``(c) State Action for Violations.--
       ``(1) Authority of states.--In addition to such other 
     remedies as are provided under State law, whenever the chief 
     law enforcement officer of a State, or an official or agency 
     designated by a State, has reason to believe that any person 
     has violated or is violating this title, the State--
       ``(A) may bring an action to enjoin such violation in any 
     appropriate United States district court or in any other 
     court of competent jurisdiction;
       ``(B) subject to paragraph (5), may bring an action on 
     behalf of its residents to recover--
       ``(i) damages for which the person is liable to such 
     residents under sections 616 and 617 as a result of the 
     violation;
       ``(ii) in the case of a violation of section 623(a), 
     damages for which the person would, but for section 623(c), 
     be liable to such residents as a result of the violation; or
       ``(iii) damages of not more than $1,000 for each willful or 
     negligent violation; and
       ``(C) in the case of any successful action under 
     subparagraph (A) or (B), shall be awarded the costs of the 
     action and reasonable attorney fees as determined by the 
     court.
       ``(2) Rights of federal regulators.--The State shall serve 
     prior written notice of any such action upon the Federal 
     Trade Commission or the appropriate Federal regulator 
     determined under subsection (b) and provide the Commission or 
     appropriate Federal regulator with a copy of its complaint, 
     except in any case where such prior notice is not feasible, 
     in which case the State shall serve such notice immediately 
     upon instituting such action. The Federal Trade Commission or 
     appropriate Federal regulator shall have the right (A) to 
     intervene in the action, (B) upon so intervening, to be heard 
     on all matters arising therein, (C) to remove the action to 
     the appropriate United States district court, and (D) to file 
     petitions for appeal.
       ``(3) Investigatory powers.--For purposes of bringing any 
     action under this subsection, nothing in this subsection 
     shall prevent the chief law enforcement officer, or an 
     official or agency designated by a State, from exercising the 
     powers conferred on the chief law enforcement officer or such 
     official by the laws of such State to conduct investigations 
     or to administer oaths or affirmations or to compel the 
     attendance of witnesses or the production of documentary and 
     other evidence.
       ``(4) Limitation on state action while federal action 
     pending.--Whenever the Federal Trade Commission or the 
     appropriate Federal regulator has instituted a civil action 
     or an administrative action under section 8 of the Federal 
     Deposit Insurance Act for a violation of this title, no State 
     may, during the pendency of such action, bring an action 
     under this section against any defendant named in the 
     complaint of the Commission or the appropriate Federal 
     regulator for any violation of this title that is alleged in 
     that complaint.
       ``(5) Limitations on state actions for violation of section 
     621(a)(1).--
       ``(A) Violation of injunction required.--A State may not 
     bring an action against a person under paragraph (1)(B) for a 
     violation of section 623(a)(1), unless--
       ``(i) the person has been enjoined from committing the 
     violation, in an action brought by the State under paragraph 
     (1)(A); and
       ``(ii) the person has violated the injunction.
       ``(B) Limitation on damages recoverable.--In an action 
     against a person under paragraph (1)(B) for a violation of 
     section 623(a)(1), a State may not recover any damages 
     incurred before the date of the violation of an injunction on 
     which the action is based.''.

     SEC. 118. FEDERAL RESERVE BOARD AUTHORITY.

       Section 621 of the Fair Credit Reporting Act (15 U.S.C. 
     1681s), is further amended by adding after subsection (d) (as 
     redesignated by section 117) the following new subsection:
       ``(e) Interpretive Authority.--The Board of Governors of 
     the Federal Reserve System may issue interpretations of any 
     provision of this title as it may apply to any persons 
     identified under paragraph (1), (2), and (3) of subsection 
     (b), or to the holding companies and affiliates of such 
     persons, in consultation with Federal agencies identified in 
     paragraphs (1), (2), and (3) of subsection (b).''.

     SEC. 119. PREEMPTION OF STATE LAW.

       Section 624 of the Fair Credit Reporting Act, as 
     redesignated by section 113(a) of this Act, is further 
     amended--
       (1) by striking ``This title'' and inserting ``(a) In 
     General.--Except as provided in subsections (b) and (c), this 
     title''; and
       (2) by adding at the end the following:
       ``(b) General Exceptions.--No requirement or prohibition 
     may be imposed under the laws of any State--
       ``(1) with respect to any subject matter regulated under--
       ``(A) subsection (c) or (d) of section 604, relating to the 
     prescreening of consumer reports;
       ``(B) 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 subparagraph does not 
     apply to any State law in effect on the date of the enactment 
     of the Consumer Reporting Reform Act of 1994;
       ``(C) 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;
       ``(D) section 615(d), relating to the duties of persons who 
     use a consumer report of a consumer in connection with any 
     credit transaction which is not initiated by the consumer and 
     which consists of a firm offer of credit;
       ``(E) section 605, relating to obsolete information, except 
     that this subparagraph does not apply to any State law in 
     effect on the date of the enactment of the Consumer Reporting 
     Reform Act of 1994; or
       ``(F) section 623(b)(2), relating to the time by which a 
     person must take any action required under section 623(b)(1) 
     with respect to an investigation of information furnished by 
     the person to a consumer reporting agency, except that this 
     subparagraph does not apply to any State law in effect on the 
     date of the enactment of the Consumer Reporting Reform Act of 
     1994;
       ``(2) with respect to the exchange of information among 
     persons affiliated by common ownership or common corporate 
     control, except that this paragraph does not apply to section 
     2480e (a) and (c)(1) of title 9, Vermont Statutes Annotated 
     (as in effect on the date of the enactment of the Consumer 
     Reporting Reform Act of 1994); or
       ``(3) with respect to the form and content of any 
     disclosure required to be made under section 609(c).
       ``(c) Definition of Firm Offer of Credit.--Notwithstanding 
     any 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.
       ``(d) Limitations.--Subsections (b) and (c)--
       ``(1) do not affect any settlement, agreement, or consent 
     judgment between any State Attorney General and any consumer 
     reporting agency in effect on the date of the enactment of 
     the Consumer Reporting Reform Act of 1994; and
       ``(2) do not apply to any provision of State law (including 
     any provision of a State constitution) that--
       ``(A) is enacted after January 1, 2003;
       ``(B) states explicitly that the provision is intended to 
     supplement this Act; and
       ``(C) gives greater protection to consumers than is 
     provided under this Act.''.

     SEC. 120. ACTION BY FTC AND FEDERAL RESERVE BOARD.

       (a) Modification of Requirements by FTC and Federal Reserve 
     Board Authorized.--
       (1) In general.--Section 621 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681s), is further amended by adding after 
     subsection (e) (as added by section 118 of this Act) the 
     following new subsection:
       ``(f) Modification of Requirements by FTC Authorized.--
       ``(1) In general.--If the Federal Trade Commission 
     considers such action necessary for the protection of 
     consumers, the Commission may, after consultation with 
     appropriate State regulatory and law enforcement agencies, 
     promulgate regulations in accordance with section 553 of 
     title 5, United States Code, to impose, with respect to 
     consumer reporting agencies and all other persons subject to 
     this title other than any person described in paragraph (1), 
     (2), or (3) of subsection (b), 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;
       ``(iii) section 615(d), relating to the duties of persons 
     who use a consumer report on a consumer in connection with 
     any credit transaction which is not initiated by the consumer 
     and that consists of a firm offer of credit; or
       ``(iv) section 623(b)(2), relating to the time by which a 
     person must take any action required under section 623(b)(1) 
     with respect to an investigation of information furnished by 
     the person to a consumer reporting agency; and
       ``(B) with respect to the form and content of any 
     disclosure required to be made under section 609(c).
       ``(2) Federal reserve board authority.--If the Board of 
     Governors of the Federal Reserve System determines such 
     action to be necessary for the protection of consumers, the 
     Board may prescribe regulations imposing on persons described 
     in paragraph (1), (2), or (3) of subsection (b), or to the 
     holding companies and affiliates of such persons, any 
     requirement described in paragraph (1) of this subsection.''.
       (2) Clerical amendments.--
       (A) The heading for section 621 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681s) is amended to read as 
     follows:

     ``Sec. 621. Administrative enforcement and authorities; State 
       actions''.

       (B) The table of contents at the beginning of the Fair 
     Credit Reporting Act is amended by striking the item relating 
     to section 621 and inserting the following new item:

``621. Administrative enforcement and authorities; State actions.''.
       (b) Deadline to Prescribe Matters.--The Federal Trade 
     Commission shall prescribe all matters required by this title 
     (including the amendments made by this title) to be 
     prescribed by that Commission, before the end of the 300-day 
     period beginning on the date of the enactment of this Act.

     SEC. 121. AMENDMENT TO FAIR DEBT COLLECTION PRACTICES ACT.

       Section 807(11) of the Fair Debt Collection Practices Act 
     (15 U.S.C. 1692e), relating to certain practices constituting 
     prohibited representations, is amended to read as follows:
       ``(11) The failure to disclose clearly, in any written 
     communication made to collect 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, except that this paragraph does not apply 
     to a communication--
       ``(A) to acquire location information in accordance with 
     section 804;
       ``(B) made solely to acknowledge receipt of monies or 
     payments; or
       ``(C) that consists solely of information requested by the 
     consumer or the consumer's attorney.''.

     SEC. 122. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES 
                   RELATING TO CHILD SUPPORT.

       Section 604(a) of the Fair Credit Reporting Act (15 U.S.C. 
     1681b) is amended in subsection (a) (as designated by section 
     103(a)(1) of this Act) by adding at the end the following:
       ``(4) In response to a request by the head of a department, 
     agency, or office of any State or any political subdivision 
     of any State that is responsible under law for enforcing 
     child support orders (or an official authorized by the head 
     of any such department, agency, or office), if the person 
     making the request certifies to the consumer reporting agency 
     that--
       ``(A) the consumer report is needed to establish an 
     individual's capacity to make child support payments, or to 
     determine the appropriate level of such payments;
       ``(B) the person has provided at least 10 days prior 
     written notice to the consumer whose report is requested, by 
     certified or registered mail to the last known address of the 
     consumer, that the report will be requested; and
       ``(C) the consumer report obtained pursuant to this 
     paragraph will be kept confidential, will be used solely for 
     establishing child support payment obligations, and will not 
     be used in connection with any other civil, administrative, 
     or criminal proceeding or for any other purpose.''.

     SEC. 123. DISCLOSURE OF INFORMATION AND CONSUMER REPORTS TO 
                   FBI FOR COUNTERINTELLIGENCE PURPOSES.

       (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.) is amended by adding after section 624, as 
     redesignated by section 113(a) of this Act, the following new 
     section:

     ``Sec. 625. Disclosures to FBI for counterintelligence 
       purposes

       ``(a) Identity of Financial Institutions.--Notwithstanding 
     section 604 or any other provision of this title, a consumer 
     reporting agency shall furnish to the Federal Bureau of 
     Investigation the names and addresses of all financial 
     institutions (as that term is defined in section 1101 of the 
     Right to Financial Privacy Act of 1978) at which a consumer 
     maintains or has maintained an account, to the extent that 
     information is in the files of the agency, when presented 
     with a written request for that information, signed by the 
     Director of the Federal Bureau of Investigation, or the 
     Director's designee, which certifies compliance with this 
     section. The Director or the Director's designee may make 
     such a certification only if the Director or the Director's 
     designee has determined in writing that--
       ``(1) such information is necessary for the conduct of an 
     authorized foreign counterintelligence investigation; and
       ``(2) there are specific and articulable facts giving 
     reason to believe that the consumer--
       ``(A) is a foreign power (as defined in section 101 of the 
     Foreign Intelligence Surveillance Act of 1978) or a person 
     who is not a United States person (as defined in such section 
     101) and is an official of a foreign power; or
       ``(B) is an agent of a foreign power and is engaging or has 
     engaged in international terrorism (as that term is defined 
     in section 101(c) of the Foreign Intelligence Surveillance 
     Act of 1978) or clandestine intelligence activities that 
     involve or may involve a violation of criminal statutes of 
     the United States.
       ``(b) Identifying information.--Notwithstanding the 
     provisions of section 604 or any other provision of this 
     title, a consumer reporting agency shall furnish identifying 
     information respecting a consumer, limited to name, address, 
     former addresses, places of employment, or former places of 
     employment, to the Federal Bureau of Investigation when 
     presented with a written request, signed by the Director or 
     the Director's designee, which certifies compliance with this 
     subsection. The Director or the Director's designee may make 
     such a certification only if the Director or the Director's 
     designee has determined in writing that--
       ``(A) such information is necessary to the conduct of an 
     authorized counterintelligence investigation; and
       ``(B) there is information giving reason to believe that 
     the consumer has been, or is about to be, in contact with a 
     foreign power or an agent of a foreign power (as defined in 
     section 101 of the Foreign Intelligence Surveillance Act of 
     1978).
       ``(c) Court Order for Disclosure of Consumer Reports.--
     Notwithstanding section 604 or any other provision of this 
     title, if requested in writing by the Director of the Federal 
     Bureau of Investigation, or a designee of the Director, a 
     court may issue an order ex parte directing a consumer 
     reporting agency to furnish a consumer report to the Federal 
     Bureau of Investigation, upon a showing in camera that--
       ``(1) the consumer report is necessary for the conduct of 
     an authorized foreign counterintelligence investigation; and
       ``(2) there are specific and articulable facts giving 
     reason to believe that the consumer whose consumer report is 
     sought--
       ``(A) is an agent of a foreign power; and
       ``(B) is engaging or has engaged in international terrorism 
     (as that term is defined in section 101(c) of the Foreign 
     Intelligence Surveillance Act of 1978) or clandestine 
     intelligence activities that involve or may involve a 
     violation of criminal statutes of the United States.

     The terms of an order issued under this subsection shall not 
     disclose that the order is issued for purposes of a 
     counterintelligence investigation.
       ``(d) Confidentiality.--No consumer reporting agency or 
     officer, employee, or agent of a consumer reporting agency 
     shall disclose to any person, other than those officers, 
     employees, or agents of a consumer reporting agency necessary 
     to fulfill the requirement to disclose information to the 
     Federal Bureau of Investigation under this section, that the 
     Federal Bureau of Investigation has sought or obtained the 
     identity of financial institutions or a consumer report 
     respecting any consumer under subsection (a), (b), or (c) and 
     no consumer reporting agency or officer, employee, or agent 
     of a consumer reporting agency shall include in any consumer 
     report any information that would indicate that the Federal 
     Bureau of Investigation has sought or obtained such 
     information or a consumer report.
       ``(e) Payment of Fees.--The Federal Bureau of Investigation 
     shall, subject to the availability of appropriations, pay to 
     the consumer reporting agency assembling or providing reports 
     or information in accordance with procedures established 
     under this section, a fee for reimbursement for such costs as 
     are reasonably necessary and which have been directly 
     incurred in searching, reproducing, or transporting books, 
     papers, records, or other data required or requested to be 
     produced under this section.
       ``(f) Limit on Dissemination.--The Federal Bureau of 
     Investigation may not disseminate information obtained 
     pursuant to this section outside of the Federal Bureau of 
     Investigation, except to the Department of Justice as may be 
     necessary for the approval or conduct of a foreign 
     counterintelligence investigation, or, where the information 
     concerns a person subject to the Uniform Code of Military 
     Justice, to appropriate investigative authorities within the 
     military department concerned as may be necessary for the 
     conduct of a joint foreign counterintelligence investigation.
       ``(g) Rules of Construction.--Nothing in this section shall 
     be construed to prohibit information from being furnished by 
     the Federal Bureau of Investigation pursuant to a subpoena or 
     court order, or in connection with a judicial or 
     administrative proceeding to enforce the provisions of this 
     Act. Nothing in this section shall be construed to authorize 
     or permit the withholding or information from the Congress.
       ``(h) Reports to Congress.--On a semiannual basis, the 
     Attorney General of the United States shall fully inform the 
     Permanent Select Committee on Intelligence and the Committee 
     on Banking, Finance and Urban Affairs of the House of 
     Representatives, and the Select Committee on Intelligence and 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate concerning all requests made pursuant to subsections 
     (a), (b), and (c).
       ``(i) Damages.--Any agency or department of the United 
     States obtaining or disclosing any consumer reports, records, 
     or information contained therein in violation of this section 
     is liable to the consumer to whom such consumer reports, 
     records, or information relate in an amount equal to the sum 
     of--
       ``(1) $100, without regard to the volume of consumer 
     reports, records, or information involved;
       ``(2) any actual damages sustained by the consumer as a 
     result of the disclosure;
       ``(3) if the violation is found to have been willful or 
     intentional, such punitive damages as a court may allow; and
       ``(4) in the case of any successful action to enforce 
     liability under this subsection, the costs of the action, 
     together with reasonable attorney fees, as determined by the 
     court.
       ``(j) Disciplinary Actions for Violations.--If a court 
     determines that any agency or department of the United States 
     has violated any provision of this section and the court 
     finds that the circumstances surrounding the violation raise 
     questions of whether or not an officer or employee of the 
     agency or department acted willfully or intentionally with 
     respect to the violation, the agency or department shall 
     promptly initiate a proceeding to determine whether or not 
     disciplinary action is warranted against the officer or 
     employee who was responsible for the violation.
       ``(k) Good-Faith Exception.--Notwithstanding any other 
     provision of this title, any consumer reporting agency or 
     agent or employee thereof making disclosure of consumer 
     reports or identifying information pursuant to this 
     subsection in good-faith reliance upon a certification of the 
     Federal Bureau of Investigation pursuant to provisions of 
     this section shall not be liable to any person for such 
     disclosure under this title, the constitution of any State, 
     or any law or regulation of any State or any political 
     subdivision of any State.
       ``(l) Limitation of Remedies.--Notwithstanding any other 
     provision of this title, the remedies and sanctions set forth 
     in this section shall be the only judicial remedies and 
     sanctions for violation of this section.
       ``(m) Injunctive Relief.--In addition to any other remedy 
     contained in this section, injunctive relief shall be 
     available to require compliance with the procedures of this 
     section. In the event of any successful action under this 
     subsection, costs together with reasonable attorney fees, as 
     determined by the court, may be recovered.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of the Fair Credit Reporting Act (15 U.S.C. 1681a 
     et seq.), as amended by section 114(b) of this Act, is 
     further amended by adding after the item relating to section 
     624 the following:

``625. Disclosures to FBI for counterintelligence purposes.''.
       (c) Repeal of Provisions.--The following provisions of the 
     Fair Credit Reporting Act, as amended by this section, are 
     repealed:
       (1) Section 625.
       (2) In the table of contents at the beginning of the Fair 
     Credit Reporting Act, the item relating to section 625.

     SEC. 124. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsection (b), the 
     amendments and repeals made by this title shall take effect 
     365 days after the date of the enactment of this Act.
       (b) Exceptions.--
       (1) The amendment made by section 121 shall take effect 90 
     days after the date of the enactment of this Act.
       (2) The amendments made by subsections (a) and (b) of 
     section 123 shall take effect on the date of the enactment of 
     this Act.
       (3) Subsection (c) of section 123 shall take effect on the 
     date that is 5 years after the date of the enactment of this 
     Act.

     SEC. 125. RELATIONSHIP TO OTHER LAW.

       Nothing in this title or the amendments made by this Act 
     shall be considered to supersede or otherwise affect section 
     2721 of title 18, United States Code, with respect to motor 
     vehicle records for surveys, marketing, or solicitations.

     SEC. 126. SENSE OF SENATE.

       It is the sense of the Senate that--
       (1) individuals should generally be judged for credit 
     worthiness based on their own credit worthiness and not on 
     the zip code or neighborhood in which they live; and
       (2) the Federal Trade Commission after consultation with 
     the appropriate Federal banking agencies shall report to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate within 6 months as to whether and how the location of 
     the residence of an applicant for unsecured credit is 
     considered by many companies and financial institutions in 
     deciding whether an applicant should be granted credit.

     SEC. 127. TECHNICAL CORRECTION TO DEPOSITORY INSTITUTIONS 
                   MANAGEMENT INTERLOCKS ACT.

       Section 209(c)(1)(C) of the Depository Institution 
     Management Interlocks Act (12 U.S.C. 3207(c)(1)(C), as added 
     by section 338(b) of the Riegle Community Development and 
     Regulatory Improvement Act of 1994) is amended by inserting 
     ``or institutions'' after ``newly chartered institutions''.
                 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.
``405. Disclosures.
``406. Credit repair organizations contracts.
``407. Right to cancel contract.
``408. Noncompliance with this title.
``409. Civil liability.
``410. Administrative enforcement.
``411. Statute of limitations.
``412. Relation to State law.
``413. Effective date.

     ``SEC. 401. SHORT TITLE.

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

     ``SEC. 402. FINDINGS AND PURPOSES.

       ``(a) Findings.--The Congress makes the following findings:
       ``(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 which offer to improve the credit 
     standing of such consumers.
       ``(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 
     those of limited economic means and who are inexperienced in 
     credit matters.
       ``(b) Purposes.--The purposes of this title are as follows:
       ``(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.
       ``(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--
       ``(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 any 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 any consumer's credit record, credit 
     history, or credit rating; or
       ``(ii) providing advice or assistance to any consumer with 
     regard to any activity or service described in clause (i); 
     and
       ``(B) does not include--
       ``(i) any nonprofit organization which is exempt from 
     taxation under section 501(c)(3) of the Internal Revenue Code 
     of 1986;
       ``(ii) any 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 
     which are within the scope of regulations applicable to 
     members of such bar or such licensees; or
       ``(iii) any creditor (as defined in section 103 of the 
     Truth in Lending Act), with respect to any consumer, to the 
     extent the creditor is assisting the consumer to restructure 
     any debt owed by the consumer to the creditor.
       ``(4) Credit.--The term `credit' has the meaning given to 
     such term in section 103(e) of this Act.

     ``SEC. 404. PROHIBITED PRACTICES.

       ``(a) In General.--No person may--
       ``(1) make any statement, or counsel or advise any consumer 
     to make any statement, which is untrue or misleading (or 
     which, 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 
     any consumer's creditworthiness, credit standing, or credit 
     capacity to--
       ``(A) any consumer reporting agency (as defined in section 
     603(f) of this Act); 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;
       ``(2) make any statement, or counsel or advise any 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 information that is accurate 
     and not obsolete to--
       ``(A) any consumer reporting agency;
       ``(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 or use any untrue or misleading representation 
     of the services of the credit repair organization; or
       ``(4) 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 any person in connection with the offer or sale of the 
     services of the credit repair organization.
       ``(b) Payment in Advance.--No credit repair organization 
     may charge or receive any money or other valuable 
     consideration for the performance of any service which the 
     credit repair organization has agreed to perform for any 
     consumer before such service is fully performed.

     ``SEC. 405. DISCLOSURES.

       ``(a) Disclosure Required.--Any credit repair organization 
     shall provide any consumer with the following written 
     statement before any contract or agreement between the 
     consumer and the credit repair organization is executed:
       ```Consumer Credit File Rights Under State and Federal Law
       ```You have a right to dispute inaccurate information in 
     your credit 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 credit 
     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 credit report 
     from a credit bureau. You may be charged a reasonable fee. 
     There is no fee, however, if you have been turned down for 
     credit, employment, insurance, or a rental dwelling because 
     of information in your credit report within the preceding 60 
     days. The credit bureau must provide someone to help you 
     interpret the information in your credit file. You are 
     entitled to receive a free copy of your credit report if you 
     are unemployed and intend to apply for employment in the next 
     60 days, if you are a recipient of public welfare assistance, 
     or if you have reason to believe that there is inaccurate 
     information in your credit report due to fraud.
       ```You have a right to sue a credit repair organization 
     that violates the Credit Repair Organization Act. This law 
     prohibits deceptive practices by credit repair organizations.
       ```You have the right to cancel your contract with any 
     credit repair organization for any reason within 3 business 
     days from the date you signed it.
       ```Credit bureaus are required to follow reasonable 
     procedures to ensure that the information they report is 
     accurate. 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 or incomplete 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 the credit bureau's 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 a summary of 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:

                      The 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 which 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 any consumer's 
     statement shall be maintained in the organization's files for 
     2 years after the date on which the statement is signed by 
     the consumer.

     ``SEC. 406. CREDIT REPAIR ORGANIZATIONS CONTRACTS.

       ``(a) Written Contracts Required.--No services may be 
     provided by any credit repair organization for any consumer--
       ``(1) unless a written and dated contract (for the purchase 
     of such services) which meets the requirements of subsection 
     (b) has been signed by the consumer; or
       ``(2) before the end of the 3-business-day period beginning 
     on the date the contract is signed.
       ``(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 of performance; 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 bold face 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 3rd 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.--Any consumer may cancel any contract 
     with any 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 3rd business day which begins after 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 bold 
     face type the following statement:
       ```You may cancel this contract, without any penalty or 
     obligation, at any time before midnight of the 3rd day which 
     begins after the date the contract is signed by you.
       ```To cancel this contract, mail or deliver a signed, dated 
     copy of this cancellation notice, or any other written notice 
     to [ name of credit repair organization ] at [ address of 
     credit repair organization ] before midnight on [ date ]
       ```I hereby cancel this transaction,
       [ date ]
       [ purchaser's signature ].'.
       ``(c) Consumer Copy of Contract Required.--Any consumer who 
     enters into any contract with any 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 any 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 any Federal or State court or 
     any other person.
       ``(b) Attempt To Obtain Waiver.--Any attempt by any person 
     to obtain a waiver from any 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.--Any contract for 
     services which does not comply with the applicable provisions 
     of this title--
       ``(1) shall be treated as void; and
       ``(2) may not be enforced by any Federal or State court or 
     any other person.

     ``SEC. 409. CIVIL LIABILITY.

       ``(a) Liability Established.--Any person who fails to 
     comply with any provision of this title with respect to any 
     other 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 any action by an 
     individual, such additional amount as the court may allow.
       ``(B) Class actions.--In the case of a class action, the 
     sum of--
       ``(i) the aggregate of the amount which the court may allow 
     for each named plaintiff; and
       ``(ii) the aggregate of the amount which the court may 
     allow for each other class member, without regard to any 
     minimum individual recovery.
       ``(3) Attorneys' fees.--In the case of any 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.

     ``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 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 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 Action For Violations.--
       ``(1) Authority of states.--In addition to such other 
     remedies as are provided under State law, whenever the chief 
     law enforcement officer of a State, or an official or agency 
     designated by a State, has reason to believe that any person 
     has violated or is violating this title, the State--
       ``(A) may bring an action to enjoin such violation;
       ``(B) may bring an action on behalf of its residents to 
     recover damages for which the person is liable to such 
     residents under section 409 as a result of the violation; and
       ``(C) in the case of any successful action under 
     subparagraph (A) or (B), shall be awarded the costs of the 
     action and reasonable attorney fees as determined by the 
     court.
       ``(2) Rights of commission.--
       ``(A) Notice to commission.--The State shall serve prior 
     written notice of any civil action under paragraph (1) upon 
     the Federal Trade Commission and provide the Commission with 
     a copy of its complaint, except in any case where such prior 
     notice is not feasible, in which case the State shall serve 
     such notice immediately upon instituting such action.
       ``(B) Intervention.--The Commission shall have the right--
       ``(i) to intervene in any action referred to in 
     subparagraph (A);
       ``(ii) upon so intervening, to be heard on all matters 
     arising in the action; and
       ``(iii) to file petitions for appeal.
       ``(3) Investigatory powers.--For purposes of bringing any 
     action under this subsection, nothing in this subsection 
     shall prevent the chief law enforcement officer, or an 
     official or agency designated by a State, from exercising the 
     powers conferred on the chief law enforcement officer or such 
     official by the laws of such State to conduct investigations 
     or to administer oaths or affirmations or to compel the 
     attendance of witnesses or the production of documentary and 
     other evidence.
       ``(4) Limitation.--Whenever the Federal Trade Commission 
     has instituted a civil action for violation of this title, no 
     State may, during the pendency of such action, bring an 
     action under this section against any defendant named in the 
     complaint of the Commission for any violation of this title 
     that is alleged in that complaint.

     ``SEC. 411. STATUTE OF LIMITATIONS.

       ``Any action to enforce any liability under this title may 
     be brought 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 any credit repair organization 
     has materially and willfully misrepresented any information 
     which--
       ``(A) the credit repair organization is required, by any 
     provision of this title, to disclose to any consumer; and
       ``(B) is material to the establishment of the credit repair 
     organization's liability to the consumer under this title,

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

     ``SEC. 412. RELATION TO STATE LAW.

       ``This title shall not annul, alter, affect, or exempt any 
     person subject to the provisions of this title from complying 
     with any law of any State except to the extent that such law 
     is inconsistent with any provision of this title, and then 
     only to the extent of the inconsistency.

     ``SEC. 413. EFFECTIVE DATE.

       ``This title shall apply after the end of the 6-month 
     period beginning on the date of the enactment of the Credit 
     Repair Organizations Act, except with respect to contracts 
     entered into by a credit repair organization before the end 
     of such period.''.
                    TITLE III--TRUTH IN LENDING ACT

     SEC. 301. TREATMENT OF DELIVERY FEES AND INTANGIBLES TAXES.

       (a) In General.--Section 106(a) of the Truth in Lending Act 
     (15 U.S.C. 1605) is amended by adding at the end the 
     following new paragraph:
       ``(6) Taxes levied on security instruments or on documents 
     evidencing indebtedness if such taxes must be paid as a 
     precondition to recording the instrument securing the 
     evidence of indebtedness.''.
       (b) Excluded Fees.--Section 106(e) of the Truth in Lending 
     Act (15 U.S.C. 1605(e)) is amended by inserting ``, if bona 
     fide and reasonable'' before the colon.
       (c) Fees for Delivery Charges.--Section 106(e) of the Truth 
     in Lending Act (15 U.S.C. 1605(e)) is amended by adding at 
     the end the following new paragraph:
       ``(7) Fees for delivery charges imposed by third parties 
     (including settlement agents, attorneys, and escrow and title 
     companies) if the creditor does not retain the charges and 
     the fees do not exceed $20 per delivery, or $50 per consumer 
     transaction.''.
       (d) Applicability.--The amendments made by this section 
     shall apply to all consumer credit transactions consummated 
     on or after February 1, 1995.

     SEC. 302. LIMITATIONS ON LIABILITY.

       (a) In General.--Chapter 2 of the Truth in Lending Act (15 
     U.S.C. 1631 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 139. CERTAIN LIMITATIONS ON LIABILITY.

       ``(a) In General.--For transactions consummated prior to 
     February 1, 1995, a creditor or assignee shall have no civil 
     or criminal liability under this title, nor shall a consumer 
     have extended rescission rights under section 125, due to a 
     creditor's improper disclosure of--
       ``(1) delivery charges actually and reasonably imposed by 
     the creditor, or any delivery charges imposed by third 
     parties (including settlement agents, attorneys, and escrow 
     and title companies), if the creditor does not retain the 
     charges; or
       ``(2) taxes levied on security instruments or documents 
     evidencing indebtedness.
       ``(b) Applicability.--Subsection (a) does not apply to--
       ``(1) any individual action or counterclaim brought under 
     this title filed prior to October 1, 1994, that alleged 
     (prior to such date) improper disclosure of delivery charges 
     or taxes;
       ``(2) any class action brought under this title in which a 
     class was certified prior to October 1, 1994, that alleged 
     (prior to such date) improper disclosure of delivery charges 
     or taxes;
       ``(3) the named individual plaintiffs in any class action 
     filed under this title prior to October 1, 1994, that alleged 
     (prior to such date) improper disclosure of delivery charges 
     or taxes; or
       ``(4) any consumer credit transaction in which a notice of 
     rescission was sent to the creditor prior to October 1, 
     1994.''.
       (b) Amendment to the Table of Sections.--The table of 
     sections for chapter 2 of the Truth in Lending Act is amended 
     by inserting after the item relating to section 138 the 
     following:

``139. Certain limitations on liability.''.
                       TITLE IV--DISASTER RELIEF

     SEC. 401. DEPOSITORY INSTITUTIONS DISASTER RELIEF.

       (a) Truth in Lending Act; Expedited Funds Availability 
     Act.--
       (1) Truth in lending act.--During the 240-day period 
     beginning on the date of enactment of this Act, the Board of 
     Governors of the Federal Reserve System may make exceptions 
     to the Truth in Lending Act for transactions within an area 
     in which the President, pursuant to section 401 of the Robert 
     T. Stafford Disaster Relief and Emergency Assistance Act, has 
     determined, on or after July 1, 1994, that a major disaster 
     exists, or within an area determined to be eligible for 
     disaster relief under other Federal law by reason of damage 
     related to the 1994 flooding in Georgia, Alabama, and Florida 
     resulting from Tropical Storm Alberto, if the Board 
     determines that the exception can reasonably be expected to 
     alleviate hardships to the public resulting from such 
     disaster that outweigh possible adverse effects.
       (2) Expedited funds availability act.--During the 240-day 
     period beginning on the date of enactment of this Act, the 
     Board of Governors of the Federal Reserve System may make 
     exceptions to the Expedited Funds Availability Act for 
     depository institution offices located within any area 
     referred to in paragraph (1) of this section if the Board 
     determines that the exception can reasonably be expected to 
     alleviate hardships to the public resulting from such 
     disaster that outweigh possible adverse effects.
       (3) Time limit on exceptions.--Any exception made under 
     this subsection shall expire not later than July 1, 1995.
       (4) Publication required.--The Board of Governors of the 
     Federal Reserve System shall publish in the Federal Register 
     a statement that--
       (A) describes any exception made under this subsection; and
       (B) explains how the exception can reasonably be expected 
     to produce benefits to the public that outweigh possible 
     adverse effects.
       (b) Deposit of Insurance Proceeds.--
       (1) In general.--The appropriate Federal banking agency 
     may, by order, permit an insured depository institution to 
     subtract from the institution's total assets, in calculating 
     compliance with the leverage limit prescribed under section 
     38 of the Federal Deposit Insurance Act, an amount not 
     exceeding the qualifying amount attributable to insurance 
     proceeds, if the agency determines that--
       (A) the institution--
       (i) had its principal place of business within an area in 
     which the President, pursuant to section 401 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act, has 
     determined, on or after July 1, 1994, that a major disaster 
     exists, or within an area determined to be eligible for 
     disaster relief under other Federal law by reason of damage 
     related to the 1994 flooding in Georgia, Alabama, and Florida 
     resulting from Tropical Storm Alberto, on the day before the 
     date of any such determination;
       (ii) derives more than 60 percent of its total deposits 
     from persons who normally reside within, or whose principal 
     place of business is normally within, areas of intense 
     devastation caused by the major disaster;
       (iii) was adequately capitalized (as defined in section 38 
     of the Federal Deposit Insurance Act) before the major 
     disaster; and
       (iv) has an acceptable plan for managing the increase in 
     its total assets and total deposits; and
       (B) the subtraction is consistent with the purpose of 
     section 38 of the Federal Deposit Insurance Act.
       (2) Time limit on exceptions.--Any exception made under 
     this subsection shall expire not later than July 1, 1995.
       (3) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       (A) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency'' has the same meaning 
     as in section 3 of the Federal Deposit Insurance Act.
       (B) Insured depository institution.--The term ``insured 
     depository institution'' has the same meaning as in section 3 
     of the Federal Deposit Insurance Act.
       (C) Leverage limit.--The term ``leverage limit'' has the 
     same meaning as in section 38 of the Federal Deposit 
     Insurance Act.
       (D) Qualifying amount attributable to insurance proceeds.--
     The term ``qualifying amount attributable to insurance 
     proceeds'' means the amount (if any) by which the 
     institution's total assets exceed the institution's average 
     total assets during the calendar quarter ending before the 
     date of any determination referred to in paragraph (1)(A)(i), 
     because of the deposit of insurance payments or governmental 
     assistance made with respect to damage caused by, or other 
     costs resulting from, the major disaster.
       (c) Banking Agency Publication Requirements.--
       (1) In general.--A qualifying regulatory agency may take 
     any of the following actions with respect to depository 
     institutions or other regulated entities whose principal 
     place of business is within, or with respect to transactions 
     or activities within, an area in which the President, 
     pursuant to section 401 of the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act, has determined, on or 
     after July 1, 1994, that a major disaster exists, or within 
     an area determined to be eligible for disaster relief under 
     other Federal law by reason of damage related to the 1994 
     flooding in Georgia, Alabama, and Florida resulting from 
     Tropical Storm Alberto, if the agency determines that the 
     action would facilitate recovery from the major disaster:
       (A) Procedure.--Exercising the agency's authority under 
     provisions of law other than this subsection without 
     complying with--
       (i) any requirement of section 553 of title 5, United 
     States Code; or
       (ii) any provision of law that requires notice or 
     opportunity for hearing or sets maximum or minimum time 
     limits with respect to agency action.
       (B) Publication requirements.--Making exceptions, with 
     respect to institutions or other entities for which the 
     agency is the primary Federal regulator, to--
       (i) any publication requirement with respect to 
     establishing branches or other deposit-taking facilities; or
       (ii) any similar publication requirement.
       (2) Publication required.--A qualifying regulatory agency 
     shall publish in the Federal Register a statement that--
       (A) describes any action taken under this subsection; and
       (B) explains the need for the action.
       (3) Qualifying regulatory agency defined.--For purposes of 
     this subsection, the term ``qualifying regulatory agency'' 
     means--
       (A) the Board of Governors of the Federal Reserve System;
       (B) the Comptroller of the Currency;
       (C) the Director of the Office of Thrift Supervision;
       (D) the Federal Deposit Insurance Corporation;
       (E) the Financial Institutions Examination Council;
       (F) the National Credit Union Administration; and
       (G) with respect to chapter 53 of title 31, United States 
     Code, the Secretary of the Treasury.
       (4) Expiration.--Any exception made under this subsection 
     shall expire not later than July 1, 1995.
       (d) Sense of the Congress.--It is the sense of the Congress 
     that the Board of Governors of the Federal Reserve System, 
     the Comptroller of the Currency, the Director of the Office 
     of Thrift Supervision, the Federal Deposit Insurance 
     Corporation, and the National Credit Union Administration 
     should encourage depository institutions to meet the 
     financial services needs of their communities and customers 
     located in areas affected by the 1994 flooding in Georgia, 
     Alabama, and Florida resulting from Tropical Storm Alberto.
       (e) Other Authority Not Affected.--No provision of this 
     section shall be construed as limiting the authority of any 
     department or agency under any other provision of law.
  The bill was ordered to be engrossed and read a third time, was read 
the third time, and passed, and a motion to reconsider was laid on the 
table.

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