[Congressional Record Volume 149, Number 159 (Wednesday, November 5, 2003)]
[Senate]
[Pages S13980-S13994]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  NATIONAL CONSUMER CREDIT REPORTING SYSTEM IMPROVEMENT ACT OF 2003--
                                Resumed

  The PRESIDING OFFICER. Under the previous order, the clerk will read 
S. 1753 for the third time.
  The bill was ordered to be engrossed for a third reading and was read 
the third time.
  The PRESIDING OFFICER. Under the previous order, the Banking 
Committee is discharged from further consideration of H.R. 2622, and 
the clerk will state the bill by title.
  The assistant legislative clerk read as follows:

       A bill (H.R. 2622) to amend the Fair Credit Reporting Act 
     in order to prevent identity theft, to improve the use of and 
     consumer access to consumer reports, to enhance the accuracy 
     of consumer reports, to limit the sharing of certain consumer 
     information, to improve financial education and literacy, and 
     for other purposes.

  The PRESIDING OFFICER. Under the previous order, all after the 
enacting clause is stricken and the text of S. 1753, as amended, is 
inserted in lieu thereof.
  The clerk will read the bill for the third time.
  The amendment was ordered to be engrossed and the bill to be read the 
third time.
  The bill was read the third time.
  Mrs. FEINSTEIN. Mr. President, I have decided to vote against the 
National Consumer Credit Reporting System Improvement Act because, 
bottom line, this bill reduces the privacy rights of 36 million 
Californians.
  These rights were obtained through the passage of landmark 
legislation sponsored by Senator Jackie Speier earlier this year in 
California, which gave consumers the right to tell financial 
institutions that they don't want their most sensitive personal 
information shared with hundreds or even thousands of affiliated 
companies.
  This practice--affiliate sharing--can include your most sensitive 
information--the stocks you own, the certificates of deposit you hold, 
or the amount of money in your checking account.
  Importantly, California's financial industry signed off on Senator 
Speier's bill, rather than face a ballot initiative, which likely would 
have succeeded.
  Industry executives said at the time that the California bill 
``encompasses all aspects of the workability needed to ensure 
protection of customers' privacy'' and that it is ``a workable, 
reasonable compromise.'' In fact, the only major reservation expressed 
about that provision was that the bill did not represent a national 
standard. But now, given the opportunity to set such a national 
standard, these same companies worked to wipe out such protections--and 
I find this conduct particularly concerning. Attached is a letter from 
Senator Speier that attests to the behavior of California's financial 
industry.
  So in response to calls for a national standard and to protect the 
rights of Californians, Senator Boxer and I developed an amendment that 
would have established a strong national standard on affiliate sharing, 
consistent with California's law, which would have given consumers a 
real voice in how their personal information is used.
  This amendment came up for a vote and, unfortunately, it was 
defeated. I think time will show that this was the wrong vote, and I 
have no doubt that this issue will resurface as consumers learn more 
about the misuse of their most sensitive personal information.
  I am disappointed that we did not achieve our main goal of adopting 
an amendment which would allow consumers to have control over their 
personal data, but I am pleased that the Senate approved two 
amendments, which I sponsored along with Senator Boxer, to protect 
consumers.
  The first amendment, authorized by Senator Boxer, which I 
cosponsored, would give consumers greater protection against unwanted 
marketing.
  Most importantly, the amendment would allow consumers to permanently 
opt-out of marketing by unrelated affiliates, while the underlying bill 
would have only limited the opt-out to 5 years. This means that if a 
consumer asks a corporation not to share information with its 
affiliates for the purpose of marketing, the affiliate cannot solicit 
them--forever. Without this amendment, a consumer would have been 
required to go back to the corporation and reiterate his request after 
5 years.
  Additionally, this amendment clarified what the bill meant by a 
``pre-existing business relationship'', where there was no definition 
before. With this amendment, a company's affiliate would only be able 
to market to consumers who have:
  One, purchased, rented or leased the seller's goods or services or 
completed a financial transaction between the consumer and seller, 
within the 18 months immediately preceding the date of a solicitation; 
or
  Two, inquired about or applied for a product or service offered by 
the seller, within the 3 months immediately preceding the marketing 
contact.
  Without this clarification, companies might have been able to market 
to customers who purchased goods as many as 5 or 10 years earlier, or 
who made the mildest inquiry a few years ago. It is the same definition 
developed by the Federal Trade Commission in creating a national ``Do 
Not Call'' registry for telemarketers.
  The Senate also adopted a second amendment, which I authored and was 
cosponsored by Senators Boxer and Kennedy, that essentially provided a 
far more encompassing definition of medical information than is 
contained in current law.
  Simply put, this amendment will help ensure that consumers aren't 
discriminated against based on their medical or health information when 
they apply for credit, insurance, or employment. The amendment also has 
the support of the American Medical Association, the American Cancer 
Society, and the California Medical Association.
  The Feinstein amendment would broadly expand the definition of 
``medical information'' to read:

       Information or data except age or gender, whether oral or 
     recorded in any form or medium, created by or derived from a 
     health care provider or the consumer that relates to:
       (1) The past, present or future physical, mental or 
     behavioral health or condition of an individual;
       (2) The provision of health care to an individual; or
       (3) Payment for the provision of health care to an 
     individual.

  This is the same definition of medical information established by the 
National Association of Insurance Commissioners in 2002. This 
definition has been implemented in a vast majority of our states.
  Even with these modest amendments, however, I cannot support the 
reauthorization of the Fair Credit Reporting Act.
  The Boxer-Feinstein marketing amendment will help prevent consumers 
from receiving unwanted solicitation, but it will do nothing to limit

[[Page S13981]]

the ability of companies to share information with their affiliates.
  Affiliates, therefore, will continue to be able to use personal 
information to profile consumers in a way that leads to unfair 
increases in premiums or interest rates, to giving certain consumers 
inferior service, or to outrightly deny them credit cards, insurance 
policies, or other products.
  Furthermore, the bill will do nothing to stop the creation of 
``internal credit reports'' by large financial institutions. Unlike 
with traditional credit reports, consumers will continue to have no 
ability to access or correct errors in these documents.
  Most Americans consider their personal information their private 
property. Yet, this bill will continue to deprive ordinary American 
consumers from having any choice over how their information is shared 
in the business world. This is the fundamental issue.
  To give you a sense of the deep support for privacy, I would point to 
a survey of California voters completed on February 7 of this year.
  The statewide survey found that by a 91-to-7 percent margin, 
California voters would favor a ballot proposition that ``would require 
a bank, a credit card company, insurance company, or other financial 
institution to notify a customer and receive a customer's permission 
before selling any financial information to any separate financial or 
non-financial company.''
  This means that 9 out of 10 Californians support even stronger 
protections--where companies would have to gain your prior consent--
opt-in--to share your financial data--than the amendment which Senator 
Boxer and I offered. And polls across the country reflected similar 
levels of support by Americans for stronger privacy laws.
  This only underscores the need for strong federal standards. Clearly, 
businesses should be able to manage customer information in order to 
enhance services. But there must be strong rules that protect 
consumers. That is why Congress should have given consumers a choice--
allowing them to tall companies that they don't want their most 
personal information shared.
  So despite the fact that I support efforts in this legislation to 
combat identity theft and improve consumer access to credit report 
information, I believe that the bill doesn't do enough to protect 
consumer's privacy, and that is why I am voting against it.
  Mr. President, I ask unanimous consent that a letter from Senator 
Jackie Speier be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:


                                      California State Senate,

                                 Sacramento, CA, October 24, 2003.
     Hon. Dianne Feinstein,
     U.S. Senator, California,
     Hart Senate Office Building, Washington, DC.
     Hon. Barbara Boxer,
     U.S. Senator, California,
     Hart Senate Office Building, Washington, DC.
       Dear Senators Feinstein and Boxer: I wish to thank you for 
     your efforts on behalf of consumer privacy rights, and urge 
     you continue to do all that is possible to protect 
     California's hard-fought consumer privacy gains.
       It has recently come to my attention that the financial 
     services industry has been criticizing the contents of your 
     amendment to S. 1753, substituting the newly-enacted and 
     stronger California privacy standard on affiliate sharing in 
     the ``corporate family of companies,'' as unworkable and 
     unreasonable. This same industry recently called my 
     California bill ``workable and reasonable,'' specifically 
     removing their opposition to my measure and lavishing praise 
     on it, even helping to gather votes. Industry made it clear 
     that my bill met their workability concerns, progress made 
     with their active participation. If my bill was workable for 
     industry in California, then why shouldn't it be the national 
     standard? A transcript of their August 14, 2003, public 
     comments bear this out and is attached.
       One industry representative stood with me on that day and 
     said my bill ``encompasses all aspects of the workability 
     needed to ensure protection of customers' privacy,'' while 
     another called it ``a balanced measure that will provide 
     meaningful privacy protections to consumers while also 
     addressing the workability concerns'' that industry had. Now 
     the story is different, as industry sees a political 
     opportunity to preempt California's standard on affiliate 
     sharing with a weaker one.
       The financial services industry appears to be acting in bad 
     faith--it seems willing to say and do anything to erode 
     California's recent progress on behalf of consumers, first to 
     avoid a costly initiative battle and local ordinances 
     limiting third-party sharing, now to pull the wool over 
     Congress' eyes. Does the financial services industry really 
     believe that millions of American consumers don't deserve a 
     choice over what happens when their personal financial 
     information, their financial DNA, is shared with thousands of 
     affiliated companies? The industry's position is flawed 
     public policy, weaker than their own standards abroad, and 
     the kind of business practice that erodes consumer 
     confidence.
       I urge you to continue your efforts in making California's 
     privacy standards those of the nation. California's affiliate 
     standard was good enough for the financial industry two 
     months ago; it certainly is acceptable now. Thank you again 
     for your efforts; I stand ready to help you in any way 
     possible.
           All the best,
                                                    Jackie Speier,
                                         California State Senator.

  Mr. DODD. Mr. President, I rise today to urge my strong support for 
S. 1753, the National Consumer Credit Reporting System Improvement Act 
of 2003. I would like to commend both Chairman Shelby and Ranking 
Member Sarbanes on this legislation and the thoroughness of the 
hearings which preceded this legislation. I applaud their deep 
commitment and thank them for their strong leadership on this issue.
  This legislation is not perfect. It is not the bill that I would have 
written. Nor do I believe that this legislation represents a perfect 
bill from the perspective of the chairman or ranking member. However, I 
believe that it is a bipartisan bill that does a lot of very good 
things, and was put together in a very balanced manner.
  The Banking Committee, both during the hearing process and the mark-
up of this legislation examined the numerous issues surrounding the 
Fair Credit Reporting Act: accuracy, privacy, security, financial 
literacy, among others.
  We learned some critical information during this process. I believe 
that the hearing process shed significant light on the positives of the 
Fair Credit Reporting Act and gave us insight on how to enhance its 
effectiveness. The consumer credit system is critically important to 
our nation's economy, and this legislation attempts to balance the 
greater access to credit for consumers, more efficiency in the credit 
granting process and the needs of consumers to have greater accuracy 
and privacy protections.
  Numerous witnesses testified to the need to improve accuracy in the 
credit reporting process. Concerns were raised that currently the 
critical information that is used in the credit granting process is not 
as timely and accurate as is necessary. Accurate credit reporting is 
essential to the proper functioning of our credit system and to the 
financial security of American consumers. Also, consumers must have a 
clearly articulated remedy for correcting errors when they do occur.
  Additionally, consumers must be given greater knowledge and control 
over their personal financial information. The hearing on affiliate 
sharing shed light on current practices and the positives and negatives 
associated with those practices.
  The committee heard from numerous witnesses that consumers were not 
provided with the tools necessary to fully understand the credit 
reporting process and become adept to using it to their maximum 
advantage. Financial literacy is not a one time event--it is a long 
process--educating more and more Americans as they become consumers.
  Of special concern, we learned about the epidemic of identity theft. 
Identity theft is a growing problem affecting millions of Americans and 
that we must devote our full attention to increasing the security of 
financial information. We heard from a witness named John Harrison, a 
retired Army Captain from Connecticut who was the victim of identity 
theft. His credit reports clearly contained false information--
misinformation that was planted there by a criminal--but Captain 
Harrison has had--and continues to have--enormous difficulty restoring 
his credit worthiness.
  These are just some of the lessons regarding the current operation of 
the Fair Credit Reporting Act.
  This legislation addresses many, if not all, of the concerns raised 
throughout the six hearings conducted by the committee.
  This legislation strengthens consumers' ability to control both their 
personal financial and medical information. I have long supported the 
need to improve the privacy rights of consumers with respect to 
genetic, medical, and financial information. I am a cosponsor of 
legislation which would

[[Page S13982]]

provide greater choices for consumers to prevent sharing of information 
between affiliates and unaffiliated third parties. While this 
legislation does not go far enough to completely protect consumers, I 
believe it is an important step in the right direction.
  This legislation provides consumers with the ability to prohibit 
affiliates from using their personal financial information for 
solicitations and other marketing purposes. In addition, an important 
amendment was adopted on the floor to provide consumers with additional 
protections against the misuse of sensitive medical information. It 
also contains important provisions that will significantly enhance 
consumer protections against the growing problem of identify theft.
  Additionally, it grants consumers with access to one free credit 
report per year from the credit reporting bureaus. This access will 
allow consumers to monitor the accuracy of the information contained in 
their credit files and ensure that information resulting from identity 
theft does not end up destroying their financial reputation.
  And by providing consumers with a free credit report, and access to 
the information used by creditors to judge their creditworthiness, this 
bill equips consumers with the tools to competitively shop for sources 
of financing and will lead consumers to make better informed and more 
judicious, credit-related decisions.
  I believe that we can do more to give consumers better control over 
their personal information and how financial institutions share their 
information with their affiliates, for marketing as well as other 
purposes. This legislation is an important step in the right direction.
  Irrespective of any changes that I, or others, may wish to raise with 
regard to S. 1753, there is no doubt that this legislation 
significantly improves the current privacy and accuracy standards of 
our consumer credit reporting system.
  Again, I would like to thank Senators Sarbanes and Shelby and their 
staffs for their hard work on this legislation. I urge my colleagues to 
support S. 1753.
  Mr. BAUCUS. Mr. President, I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second? There is a 
sufficient second.
  The yeas and nays were ordered.
  The PRESIDING OFFICER. Who yields time? There is 1 minute remaining 
on each side.
  Mr. SHELBY. Mr. President, I yield myself 1 minute or less. We are 
getting ready to vote on the Fair Credit Reporting Act. We were able 
yesterday to move it to where we are today. We believe we have put 
together a bipartisan bill. We expect a heavy vote on both sides of the 
aisle. It is a complicated piece of legislation.
  I commend Senator Sarbanes, my colleague and the ranking Democrat, 
for his leadership in helping us to get where we are today.
  I yield back the remainder of my time.
  Mr. SARBANES. Mr. President, this is the legislation we spent all day 
yesterday on. We worked through the issues, I think, in a reasonable 
and collegial fashion and the measure is now before us for final 
passage. I thank the chairman of the committee for his many courtesies.
  I yield back the remainder of my time.
  The PRESIDING OFFICER. The bill having been read the third time, the 
question is, Shall the bill pass?
  The clerk will call the roll.
  The legislative clerk called the roll.
  Mr. REID. I announce that the Senator from North Carolina (Mr. 
Edwards), the Senator from Massachusetts (Mr. Kerry), and the Senator 
from Connecticut (Mr. Lieberman) are necessarily absent.
  I further announce that, if present and voting, the Senator from 
Massachusetts (Mr. Kerry) would vote ``aye.''
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 95, nays 2, as follows:

                      [Rollcall Vote No. 437 Leg.]

                                YEAS--95

     Akaka
     Alexander
     Allard
     Allen
     Baucus
     Bayh
     Bennett
     Biden
     Bingaman
     Bond
     Breaux
     Brownback
     Bunning
     Burns
     Byrd
     Campbell
     Cantwell
     Carper
     Chafee
     Chambliss
     Clinton
     Cochran
     Coleman
     Collins
     Conrad
     Cornyn
     Corzine
     Craig
     Crapo
     Daschle
     Dayton
     DeWine
     Dodd
     Dole
     Domenici
     Dorgan
     Durbin
     Ensign
     Enzi
     Feingold
     Fitzgerald
     Frist
     Graham (FL)
     Graham (SC)
     Grassley
     Gregg
     Hagel
     Harkin
     Hatch
     Hollings
     Hutchison
     Inhofe
     Inouye
     Jeffords
     Johnson
     Kennedy
     Kohl
     Kyl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lincoln
     Lott
     Lugar
     McCain
     McConnell
     Mikulski
     Miller
     Murkowski
     Murray
     Nelson (FL)
     Nelson (NE)
     Nickles
     Pryor
     Reed
     Reid
     Roberts
     Rockefeller
     Santorum
     Sarbanes
     Schumer
     Sessions
     Shelby
     Smith
     Snowe
     Specter
     Stabenow
     Stevens
     Sununu
     Talent
     Thomas
     Voinovich
     Warner
     Wyden

                                NAYS--2

     Boxer
     Feinstein
       

                             NOT VOTING--3

     Edwards
     Kerry
     Lieberman
  The bill (H.R. 2622), as amended, was passed, as follows:

                               H.R. 2622

         Resolved, That the bill from the House of Representatives 
     (H.R. 2622) entitled ``An Act to amend the Fair Credit 
     Reporting Act, to prevent identity theft, improve resolution 
     of consumer disputes, improve the accuracy of consumer 
     records, make improvements in the use of, and consumer access 
     to, credit information, and for other purposes.'', do pass 
     with the following amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``National 
     Consumer Credit Reporting System Improvement Act of 2003''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

   TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION

                 Subtitle A--Identity Theft Prevention

Sec. 111. Definitions.
Sec. 112. Fraud alerts and active duty alerts.
Sec. 113. Truncation of credit card and debit card account numbers.
Sec. 114. Establishment of procedures for the identification of 
              possible instances of identity theft.
Sec. 115. Amendments to existing identity theft prohibition.
Sec. 116. Authority to truncate social security numbers.

Subtitle B--Protection and Restoration of Identity Theft Victim Credit 
                                History

Sec. 151. Summary of rights of identity theft victims.
Sec. 152. Blocking of information resulting from identity theft.
Sec. 153. Coordination of identity theft complaint investigations.
Sec. 154. Prevention of repollution of consumer reports.
Sec. 155. Notice by debt collectors with respect to fraudulent 
              information.
Sec. 156. Statute of limitations.

    TITLE II--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT 
                              INFORMATION

Sec. 211. Free credit reports.
Sec. 212. Credit scores.
Sec. 213. Enhanced disclosure of the means available to opt out of 
              prescreened lists.
Sec. 214. Affiliate sharing.
Sec. 215. Study of effects of credit scores and credit-based insurance 
              scores on availability and affordability of financial 
              products.
Sec. 216. Disposal of consumer report information and records.

    TITLE III--ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION

Sec. 311. Risk-based pricing notice.
Sec. 312. Procedures to enhance the accuracy and completeness of 
              information furnished to consumer reporting agencies.
Sec. 313. Federal Trade Commission and consumer reporting agency action 
              concerning complaints.
Sec. 314. Ongoing audits of the accuracy of consumer reports.
Sec. 315. Improved disclosure of the results of reinvestigation.
Sec. 316. Reconciling addresses.
Sec. 317. FTC study of issues relating to the Fair Credit Reporting 
              Act.

 TITLE IV--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE 
                            FINANCIAL SYSTEM

Sec. 411. Protection of medical information in the financial system.
Sec. 412. Confidentiality of medical contact information in consumer 
              reports.

         TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT

Sec. 511. Short title.
Sec. 512. Definitions.
Sec. 513. Establishment of Financial Literacy and Education Commission.

[[Page S13983]]

Sec. 514. Duties of the Commission.
Sec. 515. Powers of the Commission.
Sec. 516. Commission personnel matters.
Sec. 517. Study by the Comptroller General.
Sec. 518. Authorization of appropriations.

                    TITLE VI--RELATION TO STATE LAW

Sec. 611. Relation to State law.

                        TITLE VII--MISCELLANEOUS

Sec. 711. Clerical amendments.

   TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION

                 Subtitle A--Identity Theft Prevention

     SEC. 111. DEFINITIONS.

       Section 603 of the Fair Credit Reporting Act (15 U.S.C. 
     1681a) is amended by adding at the end the following:
       ``(q) Definitions Relating to Fraud Alerts.--
       ``(1) Active duty military consumer.--The term `active duty 
     military consumer' means a consumer in military service who--
       ``(A) is on active duty (as defined in section 101(d)(1) of 
     title 10, United States Code) or is a reservist performing 
     duty under a call or order to active duty under a provision 
     of law referred to in section 101(a)(13) of title 10, United 
     States Code; and
       ``(B) is assigned to service away from the usual duty 
     station of the consumer.
       ``(2) Fraud alert; active duty alert.--The terms `fraud 
     alert' and `active duty alert' mean a statement in the file 
     of a consumer that--
       ``(A) notifies all prospective users of a consumer report 
     relating to the consumer that the consumer may be a victim of 
     fraud, including identity theft, or is an active duty 
     military consumer, as applicable;
       ``(B) provides to all prospective users of a consumer 
     report relating to the consumer, a telephone number or other 
     reasonable contact method designated by the consumer for the 
     user to obtain authorization from the consumer before 
     establishing new credit (including providing any increase in 
     a credit limit with respect to an existing credit account) in 
     the name of the consumer; and
       ``(C) is presented in a manner that facilitates a clear and 
     conspicuous view of the statement described in subparagraph 
     (A) or (B) by any person requesting such consumer report.
       ``(r) Credit Card.--The term `credit card' has the same 
     meaning as in section 103 of the Truth in Lending Act.
       ``(s) Debit Card.--The term `debit card' means any card 
     issued by a financial institution to a consumer for use in 
     initiating an electronic fund transfer from the account of 
     the consumer at such financial institution, for the purpose 
     of transferring money between accounts or obtaining money, 
     property, labor, or services.
       ``(t) Account and Electronic Fund Transfer.--The terms 
     `account' and `electronic fund transfer' have the same 
     meanings as in section 903 of the Electronic Fund Transfer 
     Act.
       ``(u) Credit and Creditor--The terms `credit' and 
     `creditor' have the same meanings as in section 702 of the 
     Equal Credit Opportunity Act.
       ``(v) Federal Banking Agencies.--The term `Federal banking 
     agencies' has the same meaning as in section 3 of the Federal 
     Deposit Insurance Act.
       ``(w) Financial Institution.--The term `financial 
     institution' means a State or National bank, a State or 
     Federal savings and loan association, a mutual savings bank, 
     a State or Federal credit union, or any other person that, 
     directly or indirectly, holds an account belonging to a 
     consumer.
       ``(x) Reseller.--The term `reseller' means a consumer 
     reporting agency that--
       ``(1) assembles and merges information contained in the 
     database of another consumer reporting agency or multiple 
     consumer reporting agencies concerning any consumer for 
     purposes of furnishing such information to any third party, 
     to the extent of such activities; and
       ``(2) does not maintain a database of the assembled or 
     merged information from which new consumer reports are 
     produced.
       ``(y) Definitions Relating to Credit Scores.--
       ``(1) Credit score and key factors.--When used in 
     connection with an application for an extension of credit for 
     a consumer purpose that is to be secured by a dwelling--
       ``(A) the term `credit score'--
       ``(i) means a numerical value or categorization derived 
     from a statistical tool or modeling system used to predict 
     the likelihood of certain credit behaviors, including 
     default; and
       ``(ii) does not include--

       ``(I) any mortgage score or rating of an automated 
     underwriting system that considers 1 or more factors in 
     addition to credit information, including the loan-to-value 
     ratio, the amount of down payment, or the financial assets of 
     a consumer; or
       ``(II) other elements of the underwriting process or 
     underwriting decision; and

       ``(B) the term `key factors' means all relevant elements or 
     reasons affecting the credit score for a consumer, listed in 
     the order of their importance, based on their respective 
     effects on the credit score.
       ``(2) Dwelling.--The term `dwelling' has the same meaning 
     as in section 103 of the Truth in Lending Act.
       ``(z) Identity Theft Report.--The term `identity theft 
     report' means a report--
       ``(1) that alleges an identity theft;
       ``(2) that is filed by a consumer with an appropriate 
     Federal, State, or local government agency, including the 
     United States Postal Inspection Service and any law 
     enforcement agency; and
       ``(3) the filing of which subjects the person filing the 
     report to criminal penalties relating to the filing of false 
     information if, in fact, the information in the report is 
     false.''.

     SEC. 112. FRAUD ALERTS AND ACTIVE DUTY ALERTS.

       The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is 
     amended by inserting after section 605 the following:

     ``Sec. 605A. Identity theft prevention; fraud alerts and 
       active duty alerts

       ``(a) One-Call Fraud Alerts.--
       ``(1) Initial alerts.--Upon the request of a consumer who 
     asserts in good faith a suspicion that the consumer has been 
     or is about to become a victim of fraud or related crime, 
     including identity theft, a consumer reporting agency 
     described in section 603(p) that maintains a file on the 
     consumer and has received appropriate proof of the identity 
     of the requester shall--
       ``(A) include a fraud alert in the file of that consumer 
     for a period of not less than 90 days, beginning on the date 
     of such request, unless the consumer requests that such fraud 
     alert be removed before the end of such period, and the 
     agency has received appropriate proof of the identity of the 
     requester for such purpose; and
       ``(B) refer the information regarding the fraud alert under 
     this paragraph to each of the other consumer reporting 
     agencies described in section 603(p), in accordance with 
     procedures developed under section 621(f).
       ``(2) Access to free reports.--In any case in which a 
     consumer reporting agency includes a fraud alert in the file 
     of a consumer pursuant to this subsection, the consumer 
     reporting agency shall--
       ``(A) disclose to the consumer that the consumer may 
     request a free copy of the file of the consumer pursuant to 
     section 612(d); and
       ``(B) provide to the consumer all disclosures required to 
     be made under section 609, without charge to the consumer, 
     not later than 3 business days after any request described in 
     subparagraph (A).
       ``(b) Extended Alerts.--
       ``(1) In general.--Upon the request of a consumer who 
     submits an identity theft report to a consumer reporting 
     agency described in section 603(p) that maintains a file on 
     the consumer, if the agency has received appropriate proof of 
     the identity of the requester, the agency shall--
       ``(A) include a fraud alert in the file of that consumer 
     during the 7-year period beginning on the date of such 
     request, unless the consumer requests that such fraud alert 
     be removed before the end of such period and the agency has 
     received appropriate proof of the identity of the requester 
     for such purpose;
       ``(B) during the 7-year period beginning on the date of 
     such request, exclude the consumer from any list of consumers 
     prepared by the consumer reporting agency and provided to any 
     third party to offer credit or insurance to the consumer as 
     part of a transaction that was not initiated by the consumer, 
     unless the consumer requests that such exclusion be rescinded 
     before the end of such period; and
       ``(C) refer the information regarding the extended fraud 
     alert under this paragraph to each of the other consumer 
     reporting agencies described in section 603(p), in accordance 
     with procedures developed under section 621(f).
       ``(2) Verification of identity theft claim.--For purposes 
     of paragraph (1), a consumer reporting agency shall accept as 
     proof of a claim of identity theft, in lieu of an identity 
     theft report--
       ``(A) a properly completed copy of a standardized affidavit 
     of identity theft developed and made available by the Federal 
     Trade Commission; or
       ``(B) any affidavit of fact that is acceptable to the 
     consumer reporting agency for that purpose.
       ``(3) Access to free reports.--In any case in which a 
     consumer reporting agency includes a fraud alert in the file 
     of a consumer pursuant to this subsection, the consumer 
     reporting agency shall--
       ``(A) disclose to the consumer that the consumer may 
     request 2 free copies of the file of the consumer pursuant to 
     section 612(d) during the 12-month period beginning on the 
     date on which the fraud alert was included in the file; and
       ``(B) provide to the consumer all disclosures required to 
     be made under section 609, without charge to the consumer, 
     not later than 3 business days after any request described in 
     subparagraph (A).
       ``(c) Active Duty Alerts.--Upon the request of an active 
     duty military consumer, a consumer reporting agency described 
     in section 603(p) that maintains a file on the active duty 
     military consumer and has received appropriate proof of the 
     identity of the requester shall--
       ``(1) include an active duty alert in the file of that 
     active duty military consumer during a period of not less 
     than 12 months, beginning on the date of the request, unless 
     the active duty military consumer requests that such fraud 
     alert be removed before the end of such period, and the 
     agency has received appropriate proof of the identity of the 
     requester for such purpose;
       ``(2) during the 12-month period beginning on the date of 
     such request, exclude the active duty military consumer from 
     any list of consumers prepared by the consumer reporting 
     agency and provided to any third party to offer credit or 
     insurance to the consumer as part of a transaction that was 
     not initiated by the consumer, unless the consumer

[[Page S13984]]

     requests that such exclusion be rescinded before the end of 
     such period; and
       ``(3) refer the information regarding the active duty alert 
     to each of the other consumer reporting agencies described in 
     section 603(p), in accordance with procedures developed under 
     section 621(f).
       ``(d) Procedures.--Each consumer reporting agency described 
     in section 603(p) shall establish policies and procedures to 
     comply with this section, including procedures that allow 
     consumers and active duty military consumers to request 
     temporary, extended, or active duty alerts (as applicable) in 
     a simple and easy manner, including by telephone.
       ``(e) Referrals of Fraud Alerts.--Each consumer reporting 
     agency described in section 603(p) that receives a referral 
     of a fraud alert or active duty alert from another consumer 
     reporting agency pursuant to this section shall, as though 
     the agency received the request from the consumer directly, 
     follow the procedures required under--
       ``(1) paragraphs (1)(A) and (2) of subsection (a), in the 
     case of a referral under subsection (a)(1)(B);
       ``(2) paragraphs (1)(A), (1)(B), and (3) of subsection (b), 
     in the case of a referral under subsection (b)(1)(C); and
       ``(3) paragraphs (1) and (2) of subsection (c), in the case 
     of a referral under subsection (c)(3).
       ``(f) Duty of Reseller To Reconvey Alert.--A reseller shall 
     include in its report any fraud alert or active duty alert 
     placed in the file of a consumer pursuant to this section by 
     another consumer reporting agency.
       ``(g) Duty of Other Consumer Reporting Agencies To Provide 
     Contact Information.--If a consumer contacts any consumer 
     reporting agency that is not described in section 603(p) to 
     communicate a suspicion that the consumer has been or is 
     about to become a victim of fraud or related crime, including 
     identity theft, the agency shall provide information to the 
     consumer on how to contact the Federal Trade Commission and 
     the consumer reporting agencies described in section 603(p) 
     to obtain more detailed information and request alerts under 
     this section.''.

     SEC. 113. TRUNCATION OF CREDIT CARD AND DEBIT CARD ACCOUNT 
                   NUMBERS.

       Section 605 of the Fair Credit Reporting Act (15 U.S.C. 
     1681c) is amended by adding at the end the following:
       ``(g) Truncation of Credit Card and Debit Card Numbers.--
       ``(1) In general.--Except as otherwise specifically 
     provided in this subsection, no person that accepts credit 
     cards or debit cards for the transaction of business shall 
     print more than the last 5 digits of the card account number 
     or the expiration date upon any receipt provided to the 
     cardholder at the point of the sale or transaction.
       ``(2) Limitation.--This subsection applies only to receipts 
     that are electronically printed, and does not apply to 
     transactions in which the sole means of recording a credit 
     card or debit card account number is by handwriting or by an 
     imprint or copy of the card.
       ``(3) Effective date.--This subsection shall become 
     effective--
       ``(A) 3 years after the date of enactment of this 
     subsection, with respect to any cash register or other 
     machine or device that electronically prints receipts for 
     credit card or debit card transactions that is in use before 
     January 1, 2005; and
       ``(B) 1 year after the date of enactment of this 
     subsection, with respect to any cash register or other 
     machine or device that electronically prints receipts for 
     credit card or debit card transactions that is first put into 
     use on or after January 1, 2005.''.

     SEC. 114. ESTABLISHMENT OF PROCEDURES FOR THE IDENTIFICATION 
                   OF POSSIBLE INSTANCES OF IDENTITY THEFT.

       (a) In General.--Section 615 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681m) is amended--
       (1) by striking ``(e)'' at the end; and
       (2) by adding at the end the following:
       ``(e) Red Flag Guidelines and Regulations Required.--
       ``(1) Guidelines.--The Federal banking agencies, the 
     National Credit Union Administration, and the Federal Trade 
     Commission shall, with respect to the entities that are 
     subject to their respective enforcement authority under 
     section 621, and in coordination as described in paragraph 
     (2)--
       ``(A) establish and maintain guidelines for use by each 
     financial institution and each other person that is a 
     creditor or other user of a consumer report regarding 
     identity theft with respect to account holders at, or 
     customers of, such entities, and update such guidelines as 
     often as necessary;
       ``(B) prescribe regulations requiring each financial 
     institution and each other person that is a creditor or other 
     user of a consumer report to establish reasonable policies 
     and procedures for implementing the guidelines established 
     pursuant to paragraph (1), to identify possible risks to 
     account holders or to the safety and soundness of the 
     institution or customers; and
       ``(C) prescribe regulations requiring each financial 
     institution and each other person that is a creditor or other 
     user of a consumer report to notify the Federal Trade 
     Commission (and any other agency or person that such 
     rulemaking agency determines appropriate) in any case in 
     which there has been, or is reasonably believed to have been 
     unauthorized access to computerized or physical records which 
     compromises the security, confidentiality, or integrity of 
     consumer information maintained by or on behalf of that 
     entity, except that such regulations shall not apply to a 
     good faith acquisition of information by an employee or agent 
     of such entity for a business purpose of that entity, if the 
     information is not subject to further unauthorized access.
       ``(2) Coordination.--Each agency required to prescribe 
     regulations under paragraph (1) shall consult and coordinate 
     with each other such agency so that, to the extent possible, 
     the regulations prescribed by each such entity are consistent 
     and comparable with the regulations prescribed by each other 
     such agency.
       ``(3) Criteria.--In developing the guidelines required by 
     paragraph (1)(A), the agencies described in paragraph (1) 
     shall identify patterns, practices, and specific forms of 
     activity that indicate the possible existence of identity 
     theft.
       ``(4) Consistency with verification requirements.--Policies 
     and procedures established pursuant to paragraph (1) shall 
     not be inconsistent with, or duplicative of, the policies and 
     procedures required under section 5318(l) of title 31, United 
     States Code.
       ``(f) Investigation of Changes of Address.--
       ``(1) In general.--The Federal banking agencies, the 
     National Credit Union Administration, and the Federal Trade 
     Commission, in carrying out the responsibilities of such 
     agencies under subsection (e) shall, with respect to the 
     entities that are subject to their respective enforcement 
     authority under section 621, and in coordination as described 
     in paragraph (2), prescribe regulations applicable to card 
     issuers to ensure that, if any such card issuer receives a 
     request for an additional or replacement card for an existing 
     account not later than 30 days after the card issuer has 
     received notification of a change of address for the same 
     account, the card issuer will follow reasonable policies and 
     procedures that prohibit, as appropriate, the card issuer 
     from issuing the additional or replacement card, unless the 
     card issuer--
       ``(A) notifies the cardholder of the request at the former 
     address of the cardholder and provides to the cardholder a 
     means of promptly reporting incorrect address changes;
       ``(B) notifies the cardholder of the request by such other 
     means of communication as the cardholder and the card issuer 
     previously agreed to; or
       ``(C) uses other means of assessing the validity of the 
     change of address, in accordance with reasonable policies and 
     procedures established by the card issuer in accordance with 
     the regulations prescribed under subsection (e).
       ``(2) Coordination.--Each agency required to prescribe 
     regulations under paragraph (1) shall consult and coordinate 
     with each other such agency so that, to the extent possible, 
     the regulations prescribed by each such entity are consistent 
     and comparable with the regulations prescribed by each other 
     such agency.
       ``(3) Definition of card issuer.--For purposes of this 
     subsection, the term `card issuer' means--
       ``(A) any person who issues a credit card, or the agent of 
     such person with respect to such card; and
       ``(B) any person who issues a debit card.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect 1 year after the date of enactment of this 
     Act.

     SEC. 115. AMENDMENTS TO EXISTING IDENTITY THEFT PROHIBITION.

       Section 1028 of title 18, United States Code, is amended--
       (1) in subsection (a)(7)--
       (A) by striking ``transfers'' and inserting ``transfers, 
     possesses,''; and
       (B) by striking ``abet,'' and inserting ``abet, or in 
     connection with,'';
       (2) in subsection (b)(1)(D), by striking ``transfer'' and 
     inserting ``transfer, possession,''; and
       (3) in subsection (b)(2), by striking ``three years'' and 
     inserting ``5 years''.

     SEC. 116. AUTHORITY TO TRUNCATE SOCIAL SECURITY NUMBERS.

       Section 609(a)(1) of the Fair Credit Reporting Act (15 
     U.S.C. 1681g(a)(1)) is amended by striking ``except that 
     nothing'' and inserting the following: ``except that--
       ``(A) if the consumer to whom the file relates requests 
     that the first 5 digits of the social security number (or 
     similar identification number) of the consumer not be 
     included in the disclosure and the consumer reporting agency 
     has received appropriate proof of the identity of the 
     requester, the consumer reporting agency shall so truncate 
     such number in such disclosure; and
       ``(B) nothing''.

Subtitle B--Protection and Restoration of Identity Theft Victim Credit 
                                History

     SEC. 151. SUMMARY OF RIGHTS OF IDENTITY THEFT VICTIMS.

       (a) In General.--Section 609 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681g) is amended by adding at the end the 
     following:
       ``(d) Summary of Rights of Identity Theft Victims.--
       ``(1) In general.--The Federal Trade Commission, in 
     consultation with the Federal banking agencies and the 
     National Credit Union Administration, shall prescribe the 
     form and content of a summary of the rights of consumers 
     under this title with respect to the procedures for remedying 
     the effects of fraud or identity theft involving credit, 
     electronic fund transfers, or accounts or transactions at or 
     with a financial institution.

[[Page S13985]]

       ``(2) Summary of rights and contact information.--If any 
     consumer contacts a consumer reporting agency and expresses a 
     belief that the consumer is a victim of fraud or identity 
     theft involving credit, an electronic fund transfer, or an 
     account or transaction at or with a financial institution, 
     the consumer reporting agency shall, in addition to any other 
     action that the agency may take, provide the consumer with 
     the model summary of rights prepared by the Federal Trade 
     Commission under paragraph (1) and information on how to 
     contact the Commission to obtain more detailed information.
       ``(e) Information Available to Victims.--
       ``(1) In general.--For the purpose of documenting 
     fraudulent transactions resulting from identity theft, not 
     later than 20 days after the date of receipt of a request 
     from a victim in accordance with paragraph (3), and subject 
     to verification of the identity of the victim and the claim 
     of identity theft in accordance with paragraph (2), a 
     business entity that has provided credit to, provided for 
     consideration products, goods, or services to, accepted 
     payment from, or otherwise entered into a commercial 
     transaction for consideration with, a person who has 
     allegedly made unauthorized use of the means of 
     identification of the victim, shall provide a copy of 
     application and business transaction records in the control 
     of the business entity, whether maintained by the business 
     entity or by another person on behalf of the business entity, 
     evidencing any transaction alleged to be a result of identity 
     theft to--
       ``(A) the victim;
       ``(B) any Federal, State, or local governing law 
     enforcement agency or officer specified by the victim in such 
     a request; or
       ``(C) any law enforcement agency investigating the identity 
     theft and authorized by the victim to take receipt of records 
     provided under this subsection.
       ``(2) Verification of identity and claim.--Before a 
     business entity provides any information under paragraph (1), 
     unless the business entity, at its discretion, is otherwise 
     able to verify the identity of the victim making a request 
     under paragraph (1), the victim shall provide to the business 
     entity--
       ``(A) as proof of positive identification of the victim, at 
     the election of the business entity--
       ``(i) the presentation of a government-issued 
     identification card;
       ``(ii) personally identifying information of the same type 
     as was provided to the business entity by the unauthorized 
     person; or
       ``(iii) personally identifying information that the 
     business entity typically requests from new applicants or for 
     new transactions, at the time of the victim's request for 
     information, including any documentation described in clauses 
     (i) and (ii); and
       ``(B) as proof of a claim of identity theft, at the 
     election of the business entity--
       ``(i) a copy of a police report evidencing the claim of the 
     victim of identity theft; and
       ``(ii) a properly completed--

       ``(I) copy of a standardized affidavit of identity theft 
     developed and made available by the Federal Trade Commission; 
     or
       ``(II) an affidavit of fact that is acceptable to the 
     business entity for that purpose.

       ``(3) Procedures.--The request of a victim under paragraph 
     (1) shall--
       ``(A) be in writing; and
       ``(B) be mailed to an address specified by the business 
     entity, if any.
       ``(4) No charge to victim.--Information required to be 
     provided under paragraph (1) shall be so provided without 
     charge.
       ``(5) Authority to decline to provide information.--A 
     business entity may decline to provide information under 
     paragraph (1) if, in the exercise of good faith, the business 
     entity determines that--
       ``(A) this subsection does not require disclosure of the 
     information;
       ``(B) the request for the information is based on a 
     misrepresentation of fact by the individual requesting the 
     information relevant to the request for information; or
       ``(C) the information requested is Internet navigational 
     data or similar information about a person's visit to a 
     website or online service.
       ``(6) Limitation on liability.--Except as provided in 
     section 621, sections 616 and 617 do not apply to any 
     violation of this subsection.
       ``(7) No new recordkeeping obligation.--Nothing in this 
     subsection creates an obligation on the part of a business 
     entity to obtain, retain, or maintain information or records 
     that are not otherwise required to be obtained, retained, or 
     maintained in the ordinary course of its business or under 
     other applicable law.
       ``(8) Rule of construction.--
       ``(A) In general.--No provision of Federal or State law 
     (except a law involving the nondisclosure of information 
     related to a pending Federal criminal investigation) 
     prohibiting the disclosure of financial information by a 
     business entity to third parties shall be used to deny 
     disclosure of information to the victim under this 
     subsection.
       ``(B) Limitation.--Except as provided in subparagraph (A), 
     nothing in this subsection permits a business entity to 
     disclose information, including information to law 
     enforcement under subparagraphs (B) and (C) of paragraph (1), 
     that the business entity is otherwise prohibited from 
     disclosing under any other applicable provision of Federal or 
     State law.
       ``(9) Affirmative defense.--In any civil action brought to 
     enforce this subsection, it is an affirmative defense (which 
     the defendant must establish by a preponderance of the 
     evidence) for a business entity to file an affidavit or 
     answer stating that--
       ``(A) the business entity has made a reasonably diligent 
     search of its available business records; and
       ``(B) the records requested under this subsection do not 
     exist or are not available.
       ``(10) Definition of victim.--For purposes of this 
     subsection, the term `victim' means a consumer whose means of 
     identification or financial information has been used or 
     transferred (or has been alleged to have been used or 
     transferred) without the authority of that consumer, with the 
     intent to commit, or to aid or abet, identity theft or any 
     other violation of law.''.
       (b) Public Campaign To Prevent Identity Theft.--Not later 
     than 2 years after the date of enactment of this Act, the 
     Federal Trade Commission shall establish and implement a 
     media and distribution campaign to teach the public how to 
     prevent identity theft. Such campaign shall include existing 
     Federal Trade Commission education materials, as well as 
     radio, television, and print public service announcements, 
     video cassettes, interactive digital video discs (DVD's) or 
     compact audio discs (CD's), and Internet resources.
       (c) Conforming Amendment.--Section 624(b)(3) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681t(b)(3), regarding 
     relation to State laws) is amended by striking ``section 
     609(c)'' and inserting ``subsection (c) or (d) of section 
     609''.

     SEC. 152. BLOCKING OF INFORMATION RESULTING FROM IDENTITY 
                   THEFT.

       (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.) is amended by inserting after section 605A, as 
     added by this Act, the following:

     ``Sec. 605B. Block of information resulting from identity 
       theft

       ``(a) Block.--Except as otherwise provided in this section, 
     a consumer reporting agency shall block the reporting of any 
     information in the file of a consumer that the consumer 
     identifies as information that resulted from an alleged 
     identity theft, not later than 3 business days after the date 
     of receipt by such agency of--
       ``(1) appropriate proof of the identity of the consumer;
       ``(2) a copy of an identity theft report; and
       ``(3) the identification of such information by the 
     consumer.
       ``(b) Notification.--A consumer reporting agency shall 
     promptly notify the furnisher of information identified by 
     the consumer under subsection (a)--
       ``(1) that the information may be a result of identity 
     theft;
       ``(2) that an identity theft report has been filed;
       ``(3) that a block has been requested under this section; 
     and
       ``(4) of the effective dates of the block.
       ``(c) Authority To Decline or Rescind.--
       ``(1) In general.--A consumer reporting agency may decline 
     to block, or may rescind any block, of information relating 
     to a consumer under this section, if the consumer reporting 
     agency reasonably determines that--
       ``(A) the information was blocked in error or a block was 
     requested by the consumer in error;
       ``(B) the information was blocked, or a block was requested 
     by the consumer, on the basis of a material misrepresentation 
     of fact relevant to the request to block; or
       ``(C) the consumer obtained possession of goods, services, 
     or money as a result of the blocked transaction or 
     transactions.
       ``(2) Notification to consumer.--If a block of information 
     is declined or rescinded under this subsection, the affected 
     consumer shall be notified promptly, in the same manner as 
     consumers are notified of the reinsertion of information 
     under section 611(a)(5)(B).
       ``(3) Significance of block.--For purposes of this 
     subsection, if a consumer reporting agency rescinds a block, 
     the presence of information in the file of a consumer prior 
     to the blocking of such information is not evidence of 
     whether the consumer knew or should have known that the 
     consumer obtained possession of any goods, services, or money 
     as a result of the block.
       ``(d) Exception for Resellers.--
       ``(1) No reseller file.--This section shall not apply to a 
     consumer reporting agency, if the consumer reporting agency--
       ``(A) is a reseller;
       ``(B) is not, at the time of the request of the consumer 
     under subsection (a), otherwise furnishing or reselling a 
     consumer report concerning the information identified by the 
     consumer; and
       ``(C) informs the consumer, by any means, that the consumer 
     may report the identity theft to the Federal Trade Commission 
     to obtain consumer information regarding identity theft.
       ``(2) Reseller with file.--The sole obligation of the 
     consumer reporting agency under this section, with regard to 
     any request of a consumer under this section, shall be to 
     block the consumer report maintained by the consumer 
     reporting agency from any subsequent use, if--
       ``(A) the consumer, in accordance with the provisions of 
     subsection (a), identifies, to a consumer reporting agency, 
     information in the file of the consumer that resulted from 
     identity theft; and
       ``(B) the consumer reporting agency is a reseller of the 
     identified information.
       ``(3) Notice.--In carrying out its obligation under 
     paragraph (2), the reseller shall

[[Page S13986]]

     promptly provide a notice to the consumer of the decision to 
     block the file. Such notice shall contain the name, address, 
     and telephone number of each consumer reporting agency from 
     which the consumer information was obtained for resale.
       ``(e) Exception for Verification Companies.--The provisions 
     of this section do not apply to a check services company, 
     acting as such, which issues authorizations for the purpose 
     of approving or processing negotiable instruments, electronic 
     fund transfers, or similar methods of payments, except that, 
     beginning 3 business days after receipt of information 
     described in paragraphs (1) through (3) of subsection (a), a 
     check services company shall not report to a national 
     consumer reporting agency described in section 603(p), any 
     information identified in the subject identity theft report 
     as resulting from identity theft.
       ``(f) Access to Blocked Information by Law Enforcement 
     Agencies.--No provision of this section shall be construed as 
     requiring a consumer reporting agency to prevent a Federal, 
     State, or local law enforcement agency from accessing blocked 
     information in a consumer file to which the agency could 
     otherwise obtain access under this title.''.
       (b) Clerical Amendment.--The table of sections for the Fair 
     Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended by 
     inserting after the item relating to section 605 the 
     following new items:

``605A. Identity theft prevention; fraud alerts and active duty alerts.
``605B. Block of information resulting from identity theft.''.

     SEC. 153. COORDINATION OF IDENTITY THEFT COMPLAINT 
                   INVESTIGATIONS.

       Section 621 of the Fair Credit Reporting Act (15 U.S.C. 
     1681s) is amended by adding at the end the following:
       ``(f) Coordination of Consumer Complaint Investigations.--
       ``(1) In general.--Each consumer reporting agency described 
     in section 603(p) shall develop and maintain procedures for 
     the referral to each other such agency of any consumer 
     complaint received by the agency alleging identity theft, or 
     requesting a fraud alert under section 605A or a block under 
     section 605B.
       ``(2) Model form and procedure for reporting identity 
     theft.--The Federal Trade Commission, in consultation with 
     the Federal banking agencies and the National Credit Union 
     Administration, shall develop a model form and model 
     procedures to be used by consumers who are victims of 
     identity theft for contacting and informing creditors and 
     consumer reporting agencies of the fraud.
       ``(3) Annual summary reports.--Each consumer reporting 
     agency described in section 603(p) shall submit an annual 
     summary report to the Federal Trade Commission on consumer 
     complaints received by the agency on identity theft or fraud 
     alerts.''.

     SEC. 154. PREVENTION OF REPOLLUTION OF CONSUMER REPORTS.

       (a) Prevention of Reinsertion of Erroneous Information.--
       (1) Duties of furnishers upon notice of identity theft-
     related disputes.--Section 623(b) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681s-2(b)) is amended--
       (A) by redesignating paragraph (2) as paragraph (3);
       (B) by inserting after paragraph (1) the following:
       ``(2) Duties of furnishers upon notice of identity theft-
     related disputes.--A person that furnishes information to any 
     consumer reporting agency shall--
       ``(A) have in place reasonable procedures to respond to any 
     notification that it receives from a consumer reporting 
     agency under section 605B relating to information resulting 
     from identity theft, to prevent that person from refurnishing 
     such blocked information; and
       ``(B) take the actions described in subparagraphs (A) 
     through (D) of paragraph (1), if such person receives 
     directly from a consumer, an identity theft report or a 
     properly completed copy of a standardized affidavit of 
     identity theft developed and made available by the Federal 
     Trade Commission.''; and
       (C) in paragraph (3), as redesignated, by striking 
     ``paragraph (1)'' and inserting ``this subsection''.
       (2) Conforming amendments relating to notice of identity 
     theft directly from consumers.--Section 623(b)(1) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681s-2(b)(1)) is amended--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``or as described in paragraph (2)(B),'' after ``agency,'';
       (B) subparagraph (B), by inserting before the semicolon the 
     following: ``, and by the consumer, and other documentation 
     reasonably available to the person that is necessary to 
     conduct a reasonable investigation''; and
       (C) in subparagraph (C), by inserting before the semicolon 
     at the end the following: ``, and to the consumer, if notice 
     of the dispute was received directly from the consumer, as 
     described in paragraph (2)(B)''.
       (b) Prohibition on Sale or Transfer of Debt Caused by 
     Identity Theft.--Section 615 of the Fair Credit Reporting Act 
     (15 U.S.C. 1681m), as amended by this Act, is amended by 
     adding at the end the following:
       ``(g) Prohibition on Sale or Transfer of Debt Caused by 
     Identity Theft.--
       ``(1) In general.--No person shall sell, transfer for 
     consideration, or place for collection a debt that such 
     person has been notified under section 605B has resulted from 
     identity theft.
       ``(2) Applicability.--The prohibitions of this subsection 
     shall apply to all persons collecting a debt described in 
     paragraph (1) after the date of a notification under 
     paragraph (1).
       ``(3) Rule of construction.--Nothing in this subsection 
     shall be construed to prohibit--
       ``(A) the repurchase of a debt in any case in which the 
     assignee of the debt requires such repurchase because the 
     debt has resulted from identity theft;
       ``(B) the securitization of a debt; or
       ``(C) the transfer of debt as a result of a merger, 
     acquisition, purchase and assumption transaction, or transfer 
     of substantially all of the assets of an entity.''.

     SEC. 155. NOTICE BY DEBT COLLECTORS WITH RESPECT TO 
                   FRAUDULENT INFORMATION.

       Section 615 of the Fair Credit Reporting Act (15 U.S.C. 
     1681m), as amended by this Act, is amended by adding at the 
     end the following:
       ``(h) Debt Collector Communications Concerning Identity 
     Theft.--If a person acting as a debt collector (as that term 
     is defined in title VIII) on behalf of a third party that is 
     a creditor or other user of a consumer report is notified 
     that any information relating to a debt that the person is 
     attempting to collect may be fraudulent or may be the result 
     of identity theft, that person shall--
       ``(1) notify the third party that the information may be 
     fraudulent or may be the result of identity theft; and
       ``(2) upon request of the consumer to whom the debt 
     purportedly relates, provide to the consumer all information 
     to which the consumer would otherwise be entitled if the 
     consumer were not a victim of identity theft, but wished to 
     dispute the debt under provisions of law applicable to that 
     person.''.

     SEC. 156. STATUTE OF LIMITATIONS.

       Section 618 of the Fair Credit Reporting Act (15 U.S.C. 
     1681p) is amended to read as follows:

     ``Sec. 618. Jurisdiction of courts; limitation of actions

       ``An action to enforce any liability created under this 
     title may be brought in any appropriate United States 
     district court, without regard to the amount in controversy, 
     or in any other court of competent jurisdiction, not later 
     than the earlier of--
       ``(1) 2 years after the date of discovery by the plaintiff 
     of the violation that is the basis for such liability; or
       ``(2) 5 years after the date on which the violation that is 
     the basis for such liability occurs.''.

    TITLE II--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT 
                              INFORMATION

     SEC. 211. FREE CREDIT REPORTS.

       (a) In General.--Section 612 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681j) is amended--
       (1) by redesignating subsection (a) as subsection (f), and 
     transferring it to the end of the section;
       (2) by inserting before subsection (b) the following:
       ``(a) Free Annual Disclosure.--
       ``(1) In general.--A consumer reporting agency described in 
     section 603(p) shall make all disclosures pursuant to section 
     609 once during any 12-month period upon request of the 
     consumer and without charge to the consumer, only if the 
     request is made by mail or through an Internet website using 
     the centralized system and the standardized form established 
     for such requests in accordance with section 211(c) of the 
     National Consumer Credit Reporting System Improvement Act of 
     2003.
       ``(2) Timing.--A consumer reporting agency shall provide a 
     consumer report under paragraph (1) not later than 15 days 
     after the date on which the request is received under 
     paragraph (1).
       ``(3) Reinvestigations.--Notwithstanding the time periods 
     specified in section 611(a)(1), a reinvestigation under that 
     section by a consumer reporting agency upon a request of a 
     consumer that is made after receiving a consumer report under 
     this subsection shall be completed not later than 45 days 
     after the date on which the request is received.'';
       (3) by redesignating subsection (d) as subsection (e);
       (4) by inserting before subsection (e), as redesignated, 
     the following:
       ``(d) Free Disclosures in Connection With Fraud Alerts.--
     Upon the request of a consumer, a consumer reporting agency 
     described in section 603(p) shall make all disclosures 
     pursuant to section 609 without charge to the consumer, as 
     provided in subsections (a)(2) and (b)(3) of section 605A, as 
     applicable.'';
       (5) in subsection (e), as redesignated, by striking 
     ``subsection (a)'' and inserting ``subsection (f)''; and
       (6) in subsection (f), as redesignated, by striking 
     ``Except as provided in subsections (b), (c), and (d), a'' 
     and inserting ``In the case of a request from a consumer 
     other than a request that is covered by any of subsections 
     (a) through (d), a''.
       (b) Summary of Rights To Obtain and Dispute Information in 
     Consumer Reports and To Obtain Credit Scores.--Section 609(c) 
     of the Fair Credit Reporting Act (15 U.S.C. 1681g) is amended 
     to read as follows:
       ``(c) Summary of Rights To Obtain and Dispute Information 
     in Consumer Reports and To Obtain Credit Scores.--

[[Page S13987]]

       ``(1) Commission summary of rights required.--
       ``(A) In general.--The Federal Trade Commission shall 
     prepare a model summary of the rights of consumers under this 
     title.
       ``(B) Content of summary.--The summary of rights prepared 
     under subparagraph (A) shall include a description of--
       ``(i) the right of a consumer to obtain a copy of a 
     consumer report under subsection (a) from each consumer 
     reporting agency;
       ``(ii) the frequency and circumstances under which a 
     consumer is entitled to receive a consumer report without 
     charge under section 612;
       ``(iii) the right of a consumer to dispute information in 
     the file of the consumer under section 611;
       ``(iv) the right of a consumer to obtain a credit score 
     from a consumer reporting agency, and a description of how to 
     obtain a credit score; and
       ``(v) the method by which a consumer can contact, and 
     obtain a consumer report from, a consumer reporting agency 
     without charge, as provided in the regulations of the Federal 
     Trade Commission prescribed under section 211(c) of the 
     National Consumer Credit Reporting System Improvement Act of 
     2003.
       ``(C) Availability of summary of rights.--The Federal Trade 
     Commission shall--
       ``(i) actively publicize the availability of the summary of 
     rights prepared under this paragraph;
       ``(ii) conspicuously post on its Internet website the 
     availability of such summary of rights; and
       ``(iii) promptly make such summary of rights available to 
     consumers, on request.
       ``(2) Summary of rights required to be included with agency 
     disclosures.--A consumer reporting agency shall provide to a 
     consumer, with each written disclosure by the agency to the 
     consumer under this section--
       ``(A) the summary of rights prepared by the Federal Trade 
     Commission under paragraph (1);
       ``(B) in the case of a consumer reporting agency described 
     in section 603(p), a toll-free telephone number established 
     by the agency, at which personnel are accessible to consumers 
     during normal business hours;
       ``(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 (or the equivalent thereof) to learn 
     of those rights; and
       ``(E) a statement that a consumer reporting agency is not 
     required to remove accurate derogatory information from the 
     file of a consumer, unless the information is outdated under 
     section 605 or cannot be verified.''.
       (c) Rulemaking Required.--
       (1) In general.--The Federal Trade Commission shall 
     prescribe regulations applicable to consumer reporting 
     agencies described in section 603(p) of the Fair Credit 
     Reporting Act to require the establishment of--
       (A) a centralized source, through which consumers may 
     obtain a consumer report from each consumer reporting agency 
     described in that section 603(p) using a single request and 
     without charge to the consumer, as provided in section 612(a) 
     of the Fair Credit Reporting Act (as amended by this Act);
       (B) a standardized form for a consumer to make such a 
     request for a consumer report by mail or through an Internet 
     website; and
       (C) streamlined methods by which such a consumer reporting 
     agency shall provide such consumer reports, after 
     consideration of--
       (i) the significant demands that may be placed on consumer 
     reporting agencies in providing such consumer reports;
       (ii) appropriate means to ensure that consumer reporting 
     agencies can satisfactorily meet those demands, including the 
     efficacy of a system of staggering the availability to 
     consumers of such consumer reports using a quarterly method 
     based on the birth month of the consumer; and
       (iii) the ease by which consumers should be able to contact 
     consumer reporting agencies with respect to access to such 
     consumer reports.
       (2) Timing.--Regulations required by this subsection 
     shall--
       (A) be issued in final form not later than 6 months after 
     the date of enactment of this Act; and
       (B) become effective not later than 6 months after the date 
     on which they are issued in final form.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) shall become effective on the effective date of the 
     regulations prescribed by the Federal Trade Commission in 
     accordance with subsection (c).

     SEC. 212. CREDIT SCORES.

       (a) Duties of Consumer Reporting Agencies To Disclose 
     Credit Scores.--
       (1) In general.--Section 609(a) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681g(a)) is amended by adding at 
     the end the following:
       ``(6) In connection with an application for an extension of 
     credit for a consumer purpose that is to be secured by a 
     dwelling--
       ``(A) the current, or most recent, credit score of the 
     consumer that was previously calculated by the agency;
       ``(B) the range of possible credit scores under the model 
     used;
       ``(C) the key factors, if any, not to exceed 4, that 
     adversely affected the credit score of the consumer in the 
     model used;
       ``(D) the date on which the credit score was created; and
       ``(E) the name of the person or entity that provided the 
     credit score or the credit file on the basis of which the 
     credit score was created.''.
       (2) Limitations on required provision of credit score.--
     Section 609 of the Fair Credit Reporting Act (15 U.S.C. 
     1681g), as amended by this Act, is amended by adding at the 
     end the following:
       ``(f) Limitations on Required Provision of Credit Score.--
       ``(1) In general.--Subsection (a)(6) may not be construed--
       ``(A) to compel a consumer reporting agency to develop or 
     disclose a credit score if the agency does not, in the 
     ordinary course of its business--
       ``(i) distribute scores that are used in connection with 
     extensions of credit secured by residential real property; or
       ``(ii) develop credit scores that assist creditors in 
     understanding the general credit behavior of the consumer and 
     predicting future credit behavior;
       ``(B) to require a consumer reporting agency that 
     distributes credit scores developed by another person or 
     entity to provide a further explanation of those scores, or 
     to process a dispute arising pursuant to section 611(a), 
     except that the consumer reporting agency shall be required 
     to provide to the consumer the name and information for 
     contacting the person or entity that developed the score;
       ``(C) to require a consumer reporting agency to maintain 
     credit scores in its files; or
       ``(D) to compel disclosure of a credit score, except upon 
     specific request of the consumer, except that if a consumer 
     requests the credit file and not the credit score, then the 
     consumer shall be provided with the credit file and a 
     statement that the consumer may request and obtain a credit 
     score.
       ``(2) Provision of scoring model.--In complying with 
     subsection (a)(6) and this subsection, a consumer reporting 
     agency shall supply to the consumer--
       ``(A) a credit score that is derived from a credit scoring 
     model that is widely distributed to users of credit scores by 
     that consumer reporting agency in connection with any 
     extension of credit secured by a dwelling; or
       ``(B) a credit score that assists the consumer in 
     understanding the credit scoring assessment of the credit 
     behavior of the consumer and predictions about future credit 
     behavior.''.
       (3) Conforming amendment.--Section 609(a)(1)(B) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681g(a)(1)(B)), as so 
     designated by section 116, is amended by inserting before the 
     period ``, other than as provided in paragraph (6)''.
       (b) Duties of Users of Credit Scores.--
       (1) In general.--Section 615 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681m), as amended by this Act, is amended by 
     adding at the end the following:
       ``(i) Duties of Users of Credit Scores.--
       ``(1) Disclosures.--Any person that makes or arranges 
     extensions of credit for consumer purposes that are to be 
     secured by a dwelling and that uses credit scores for that 
     purpose, shall be required to provide to the consumer to whom 
     the credit score relates, as soon as is reasonably 
     practicable after such use--
       ``(A) a copy of the information described in section 
     609(a)(6) that was obtained from a consumer reporting agency 
     or that was developed and used by that user of the credit 
     score information; or
       ``(B) if the user of the credit score information obtained 
     such information from a third party that developed such 
     information (other than a consumer reporting agency or the 
     user itself), only--
       ``(i) a copy of the information described in section 
     609(a)(6) provided to the user by the person or entity that 
     developed the credit score; and
       ``(ii) a notice that generally describes credit scores, 
     their use, and the sources and kinds of data used to generate 
     credit scores.
       ``(2) Rule of construction.--This subsection may not be 
     construed to require the user of a credit score described in 
     paragraph (1)--
       ``(A) to explain to the consumer the information provided 
     pursuant to section 609(a)(6), unless that information was 
     developed by the user;
       ``(B) to disclose any information other than a credit score 
     or the key factors required to be disclosed under section 
     609(a)(6)(C);
       ``(C) to disclose any credit score or related information 
     obtained by the user after a transaction occurs; or
       ``(D) to provide more than 1 disclosure under this 
     subsection to any 1 consumer per credit transaction.
       ``(3) Limitation.--Except as otherwise provided in this 
     subsection, the obligation of a user of a credit score under 
     this subsection shall be limited solely to providing a copy 
     of the information that was received from the consumer 
     reporting agency or other person. A user of a credit score 
     has no liability under this subsection for the content of 
     credit score information received from a consumer reporting 
     agency or for the omission of any

[[Page S13988]]

     information within the report provided by the consumer 
     reporting agency.''.
       (2) Conforming amendment.--Section 615 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681m) is amended in the section 
     heading, by adding at the end the following: ``and credit 
     scores''.
       (c) Contractual Liability.--Section 616 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681n) is amended by adding at the 
     end the following:
       ``(d) Use of Credit Scores.--Any provision of any contract 
     that prohibits the disclosure of a credit score by a consumer 
     reporting agency or a person who makes or arranges extensions 
     of credit to the consumer to whom the credit score relates is 
     void. A user of a credit score shall not have liability under 
     any such contractual provision for disclosure of a credit 
     score.''.
       (d) Relation to State Laws.--Section 624(b)(1) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681t(b)(1), regarding 
     relation to State laws) is amended--
       (1) in subparagraph (E), by striking ``or'' at the end; and
       (2) by adding at the end the following:
       ``(G) subsections (a)(6) and (f) of section 609, relating 
     to the disclosure of credit scores by consumer reporting 
     agencies in connection with an application for an extension 
     of credit that is to be secured by a dwelling;
       ``(H) section 615(i), relating to the duties of users of 
     credit scores to disclose credit score information to 
     consumers in connection with an application for an extension 
     of credit that is to be secured by a dwelling; or''.
       (e) Effective Date.--The amendments made by this section 
     shall become effective 180 days after the date of enactment 
     of this Act.

     SEC. 213. ENHANCED DISCLOSURE OF THE MEANS AVAILABLE TO OPT 
                   OUT OF PRESCREENED LISTS.

       (a) Notice and Response Format for Users of Reports.--
     Section 615(d)(2) of the Fair Credit Reporting Act (15 U.S.C. 
     1681m(d)(2)) is amended to read as follows:
       ``(2) Disclosure of address and telephone number; format.--
     A statement under paragraph (1) shall--
       ``(A) include the address and toll-free telephone number of 
     the appropriate notification system established under section 
     604(e); and
       ``(B) be presented in such format and in such type size and 
     manner as is established by the Federal Trade Commission, by 
     rule, in consultation with the Federal banking agencies and 
     the National Credit Union Administration.''.
       (b) Rulemaking Schedule.--Regulations required by section 
     615(d)(2) of the Fair Credit Reporting Act, as amended by 
     this section, shall be issued in final form not later than 1 
     year after the date of enactment of this Act.
       (c) Duration of Elections.--Section 604(e) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681b(e)) is amended in each 
     of paragraphs (3)(A) and (4)(B)(i)), by striking ``2-year 
     period'' each place that term appears and inserting ``7-year 
     period''.
       (d) Public Awareness Campaign.--The Federal Trade 
     Commission shall actively publicize and conspicuously post on 
     its website any address and the toll-free telephone number 
     established as part of a notification system for opting out 
     of prescreening under section 604(e), and otherwise take 
     measures to increase public awareness regarding the 
     availability of the right to opt out of prescreening.

     SEC. 214. AFFILIATE SHARING.

       (a) Limitation.--The Fair Credit Reporting Act (15 U.S.C. 
     1601 et seq.) is amended--
       (1) by redesignating section 624 (regarding relation to 
     State laws), as so designated by section 2413(b) of the 
     Consumer Credit Reporting Reform Act of 1996 (110 Stat. 3009-
     447), as section 625;
       (2) by redesignating section 624 (regarding disclosures to 
     FBI for counterintelligence purposes), as added by section 
     601(a) of the Intelligence Authorization Act for Fiscal Year 
     1996 (Public Law 104-93; 109 Stat. 974) (15 U.S.C. 1681u)), 
     as section 626; and
       (3) by inserting after section 623 the following:

     ``SEC. 624. AFFILIATE SHARING.

       ``(a) Special Rule for Solicitation for Purposes of 
     Marketing.--
       ``(1) Notice.--Any person that receives from another person 
     related to it by common ownership or affiliated by corporate 
     control a communication of information that would be a 
     consumer report, except for clauses (i) through (iii) of 
     section 603(d)(2)(A), may not use the information to make a 
     solicitation for marketing purposes to a consumer about its 
     products or services, unless--
       ``(A) it is clearly and conspicuously disclosed to the 
     consumer that the information may be communicated among such 
     persons for purposes of making such solicitations to the 
     consumer; and
       ``(B) the consumer is provided an opportunity and a simple 
     method to prohibit the making of such solicitations to the 
     consumer by such person.
       ``(2) Consumer choice.--
       ``(A) In general.--The notice required under paragraph (1) 
     shall allow the consumer the opportunity to prohibit all such 
     solicitations, and may allow the consumer to choose from 
     different options when electing to prohibit the sending of 
     such solicitations, including options regarding the types of 
     entities and information covered, and which methods of 
     delivering solicitations the consumer elects to prohibit.
       ``(B) Format.--Notwithstanding subparagraph (A), the notice 
     required under paragraph (1) must be clear, conspicuous, and 
     concise, and any method provided under paragraph (1)(B) must 
     be simple. The regulations prescribed to implement this 
     section shall provide specific guidance regarding how to 
     comply with such standards.
       ``(3) Duration.--The election of a consumer pursuant to 
     paragraph (1)(B) to prohibit the sending of solicitations 
     shall be effective permanently, beginning on the date on 
     which the person receives the election of the consumer, 
     unless the consumer requests that such election be revoked.
       ``(4) Definition.--For purposes of this section, the term 
     `pre-existing business relationship' means a relationship 
     between a person and a consumer, based on--
       ``(A) the purchase, rental, or lease by the consumer of 
     that person's goods or services, or a financial transaction 
     between the consumer and that person during the 18-month 
     period immediately preceding the date on which the consumer 
     receives the notice required under this section; or
       ``(B) an inquiry or application by the consumer regarding a 
     product or service offered by that person, during the 3-month 
     period immediately preceding the date on which the consumer 
     receives the notice required under this section.
       ``(5) Scope.--This section shall not apply to a person--
       ``(A) using information to make a solicitation for 
     marketing purposes to a consumer with whom the person has a 
     pre-existing business relationship;
       ``(B) using information to perform services on behalf of 
     another person related by common ownership or affiliated by 
     corporate control, except that this subparagraph shall not 
     permit a person to send solicitations on behalf of another 
     person if such other person would not be permitted to send 
     the solicitation on its own behalf as a result of the 
     election of the consumer to prohibit solicitations under 
     paragraph (1)(B);
       ``(C) using information in direct response to a 
     communication initiated by the consumer in which the consumer 
     has requested information about a product or service; or
       ``(D) using information to directly respond to 
     solicitations authorized or requested by the consumer.
       ``(b) Notice for Other Purposes Permissible.--A notice or 
     other disclosure that is equivalent to the notice required by 
     subsection (a), and that is provided by a person described in 
     subsection (a) to a consumer together with disclosures 
     required by any other provision of law shall satisfy the 
     requirements of subsection (a).''.
       (b) Rulemaking Required.--
       (1) In general.--The Federal banking agencies, the National 
     Credit Union Administration, and the Federal Trade Commission 
     shall, with respect to the entities that are subject to their 
     respective enforcement authority under section 621 of the 
     Fair Credit Reporting Act, and in coordination as described 
     in paragraph (2), prescribe regulations to implement section 
     624 of the Fair Credit Reporting Act, as added by this 
     section.
       (2) Coordination.--Each agency required to prescribe 
     regulations under paragraph (1) shall consult and coordinate 
     with each other such agency so that, to the extent possible, 
     the regulations prescribed by each such entity are consistent 
     and comparable with the regulations prescribed by each other 
     such agency.
       (3) Considerations.--In promulgating regulations under this 
     subsection, the Federal Trade Commission shall--
       (A) ensure that affiliate sharing notification methods 
     provide a simple means for consumers to make determinations 
     and choices under section 624 of the Fair Credit Reporting 
     Act, as added by this section; and
       (B) consider the affiliate sharing notification practices 
     employed on the date of enactment of this Act by persons that 
     will be subject to that section 624.
       (4) Timing.--Regulations required by this subsection 
     shall--
       (A) be issued in final form not later than 6 months after 
     the date of enactment of this Act; and
       (B) become effective not later than 3 months after the date 
     on which they are issued in final form.
       (c) Conforming Amendment.--Section 603(d)(2)(A) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681a(d)(2)(A)) is amended by 
     inserting ``subject to section 624,'' after ``(A)''.
       (d) Clerical Amendment.--The Fair Credit Reporting Act (15 
     U.S.C. 1681 et seq.) is amended in the table of sections, by 
     striking the items following the item relating to section 623 
     and inserting the following:

``624. Affiliate sharing.
``625. Relation to State laws.
``626. Disclosures to FBI for counterintelligence purposes.''.

       (e) Studies of Information Sharing Practices.--
       (1) In general.--The Federal banking agencies, the National 
     Credit Union Administration, and the Federal Trade Commission 
     shall jointly conduct regular studies of the consumer 
     information sharing practices by financial institutions and 
     other persons that are creditors or users of consumer reports 
     with their affiliates.
       (2) Matters for study.--In conducting the studies required 
     by paragraph (1), the agencies described in paragraph (1) 
     shall--
       (A) identify--
       (i) the purposes for which financial institutions and other 
     creditors and users of consumer reports share consumer 
     information;

[[Page S13989]]

       (ii) the types of information shared by such entities with 
     their affiliates;
       (iii) the number of choices provided to consumers with 
     respect to the control of such sharing, and the degree to and 
     manner in which consumers exercise such choices, if at all; 
     and
       (iv) whether such entities share or may share personally 
     identifiable transaction or experience information with 
     affiliates for purposes--

       (I) that are related to employment or hiring, including 
     whether the person that is the subject of such information is 
     given notice of such sharing, and the specific uses of such 
     shared information; or
       (II) of general publication of such information; and

       (B) specifically examine the information sharing practices 
     that financial institutions and other creditors and users of 
     consumer reports and their affiliates employ for the purpose 
     of making underwriting decisions or credit evaluations of 
     consumers.
       (3) Reports.--
       (A) Initial report.--Not later than 3 years after the date 
     of enactment of this Act, the Federal banking agencies, the 
     National Credit Union Administration, and the Federal Trade 
     Commission shall jointly submit a report to the Congress on 
     the results of the initial study conducted in accordance with 
     this subsection, together with any recommendations for 
     legislative or regulatory action.
       (B) Followup reports.--The Federal banking agencies, the 
     National Credit Union Administration, and the Federal Trade 
     Commission shall, not less frequently than once every 3 years 
     following the date of submission of the initial report under 
     subparagraph (A), jointly submit a report to the Congress 
     that, together with any recommendations for legislative or 
     regulatory action--
       (i) documents any changes in the areas of study referred to 
     in paragraph (2)(A) occurring since the date of submission of 
     the previous report;
       (ii) identifies any changes in the practices of financial 
     institutions and other creditors and users of consumer 
     reports in sharing consumer information with their affiliates 
     for the purpose of making underwriting decisions or credit 
     evaluations of consumers occurring since the date of 
     submission of the previous report; and
       (iii) examines the effects that changes described in clause 
     (ii) have had, if any, on the degree to which such affiliate 
     sharing practices reduce the need for financial institutions, 
     creditors, and other users of consumer reports to rely on 
     credit reports for such decisions.
       (f) Definitions.--As used in this section--
       (1) the terms ``consumer'', ``consumer report'', ``consumer 
     reporting agency'', ``creditor'', ``Federal banking 
     agencies'', and ``financial institution'', have the same 
     meanings as in section 603 of the Fair Credit Reporting Act, 
     as amended by this Act; and
       (2) the term ``affiliates'' means persons that are related 
     by common ownership or affiliated by corporate control.

     SEC. 215. STUDY OF EFFECTS OF CREDIT SCORES AND CREDIT-BASED 
                   INSURANCE SCORES ON AVAILABILITY AND 
                   AFFORDABILITY OF FINANCIAL PRODUCTS.

       (a) Defined Term.--As used in this section, the term 
     ``credit score'' means a numerical value or a categorization 
     derived from a statistical tool or modeling system used to 
     predict the likelihood of certain credit or insurance 
     behaviors, including default.
       (b) Study Required.--The Federal Trade Commission shall 
     conduct a study of--
       (1) the effects of the use of credit scores and credit-
     based insurance scores on the availability and affordability 
     of financial products and services, including credit cards, 
     mortgages, auto loans, and property and casualty insurance;
       (2) the degree of correlation between the factors 
     considered by credit score systems and the quantifiable risks 
     and actual losses experienced by businesses, including the 
     extent to which each of the factors considered or otherwise 
     taken into account by such systems correlated to risk or 
     loss;
       (3) the extent to which the use of credit scoring models, 
     credit scores and credit-based insurance scores benefit or 
     negatively impact persons based on geography, income, 
     ethnicity, race, color, religion, national origin, age, sex, 
     marital status, or creed; and
       (4) the extent to which credit scoring systems are used by 
     businesses, the factors considered by such systems, and the 
     effects of variables which are not considered by such 
     systems.
       (c) Public Participation.--The Federal Trade Commission 
     shall seek public input about the prescribed methodology and 
     research design of the study required by subsection (b).
       (d) Report.--
       (1) In general.--Before the end of the 18-month period 
     beginning on the date of enactment of this Act, the Federal 
     Trade Commission shall submit a detailed report on the study 
     conducted under this section to the Committee on Financial 
     Services of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate.
       (2) Contents.--The report submitted under paragraph (1) 
     shall include--
       (A) the findings and conclusions of the Commission;
       (B) recommendations to address specific areas of concern 
     that were identified in the study; and
       (C) recommendations for legislative or administrative 
     action that the Commission may determine to be necessary to 
     ensure that credit and credit-based insurances score are used 
     appropriately and fairly.

     SEC. 216. DISPOSAL OF CONSUMER REPORT INFORMATION AND 
                   RECORDS.

       (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
     1681m) is amended by adding at the end the following:

     ``Sec. 627. Disposal of records

       ``(a) Regulations.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Federal Trade Commission shall 
     issue final regulations requiring any person that maintains 
     or otherwise possesses consumer information or any 
     compilation of consumer information derived from consumer 
     reports for a business purpose to properly dispose of any 
     such information or compilation.
       ``(2) Exemption authority.--In issuing regulations under 
     this section, the Federal Trade Commission may exempt any 
     person or class of persons from application of those 
     regulations, as the Commission deems appropriate to carry out 
     the purpose of this section.
       ``(b) Rule of Construction.--Nothing in this section may be 
     construed to alter or affect any requirement imposed under 
     any other provision of law to maintain any record.''.
       (b) Clerical Amendment.--The table of sections for the Fair 
     Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended by 
     this Act, is amended by adding at the end the following:

``627. Disposal of records.''.

    TITLE III--ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION

     SEC. 311. RISK-BASED PRICING NOTICE.

       (a) Duties of Users.--Section 615 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681m), as amended by this Act, is 
     amended by adding at the end the following:
       ``(j) Duties of Users in Certain Credit Transactions.--
       ``(1) In general.--Subject to rules prescribed as provided 
     in paragraph (5), if any person uses a consumer report in 
     connection with a grant, extension, or other provision of 
     credit on material terms that are materially less favorable 
     than the most favorable terms available to a substantial 
     proportion of consumers from or through that person, based in 
     whole or in part on a consumer report, the person shall 
     provide a notice to the consumer in the form and manner 
     required by regulations prescribed in accordance with this 
     subsection.
       ``(2) Exceptions.--No notice shall be required from a 
     person under this subsection if--
       ``(A) the consumer applied for specific material terms and 
     was granted those terms, unless those terms were initially 
     specified by the person after the transaction was initiated 
     by the consumer and after the person obtained a consumer 
     report; or
       ``(B) the person has provided or will provide a notice to 
     the consumer under subsection (a) in connection with the 
     transaction.
       ``(3) Other notice not sufficient.--A person that is 
     required to provide a notice under subsection (a) cannot meet 
     that requirement by providing a notice under this subsection.
       ``(4) Content and delivery of notice.--A notice under this 
     subsection shall include, at a minimum--
       ``(A) a statement informing the consumer that the terms 
     offered to the consumer were set based on information from a 
     consumer report;
       ``(B) identification of the consumer reporting agency that 
     furnished that report;
       ``(C) a statement informing the consumer that the consumer 
     may obtain a copy of a consumer report from that consumer 
     reporting agency without charge; and
       ``(D) the contact information specified by that consumer 
     reporting agency for obtaining such consumer reports 
     (including a toll-free telephone number established by the 
     agency in the case of a consumer reporting agency described 
     in section 603(p)).
       ``(5) Rulemaking.--
       ``(A) Rules required.--The Federal Trade Commission and the 
     Board of Governors of the Federal Reserve System shall 
     jointly prescribe rules, in accordance with section 553 of 
     title 5, United States Code, to carry out this subsection.
       ``(B) Content.--Rules required by subparagraph (A) shall 
     address, but are not limited to--
       ``(i) the form, content, time, and manner of delivery of 
     any notice under this subsection;
       ``(ii) clarification of the meaning of terms used in this 
     subsection, including what credit terms are material, and 
     when credit terms are materially less favorable;
       ``(iii) exceptions to the notice requirement under this 
     subsection for classes of persons or transactions regarding 
     which the agencies determine that notice would not 
     significantly benefit consumers; and
       ``(iv) a model notice that may be used to comply with this 
     subsection.''.
       (b) Relation to State Laws.--Section 625(b)(1) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681t(b)(1), regarding 
     relation to State laws), as so designated and amended by this 
     Act, is amended by adding at the end the following:
       ``(I) section 615(j), relating to the duties of users of 
     consumer reports to provide notice with respect to terms in 
     certain credit transactions;''.

[[Page S13990]]

     SEC. 312. PROCEDURES TO ENHANCE THE ACCURACY AND COMPLETENESS 
                   OF INFORMATION FURNISHED TO CONSUMER REPORTING 
                   AGENCIES.

       (a) Accuracy Guidelines and Regulations.--Section 623 of 
     the Fair Credit Reporting Act (15 U.S.C. 15 U.S.C. 1681s-2) 
     is amended by adding at the end the following:
       ``(e) Accuracy Guidelines and Regulations Required.--
       ``(1) Guidelines.--The Federal banking agencies, the 
     National Credit Union Administration, and the Federal Trade 
     Commission shall, with respect to the entities that are 
     subject to their respective enforcement authority under 
     section 621, and in coordination as described in paragraph 
     (2)--
       ``(A) establish and maintain guidelines for use by each 
     person that furnishes information to a consumer reporting 
     agency regarding the accuracy and completeness of the 
     information relating to consumers that such entities furnish 
     to consumer reporting agencies, and update such guidelines as 
     often as necessary; and
       ``(B) prescribe regulations requiring each person that 
     furnishes information to a consumer reporting agency to 
     establish reasonable policies and procedures for implementing 
     the guidelines established pursuant to subparagraph (A).
       ``(2) Coordination.--Each agency required to prescribe 
     regulations under paragraph (1) shall consult and coordinate 
     with each other such agency so that, to the extent possible, 
     the regulations prescribed by each such entity are consistent 
     and comparable with the regulations prescribed by each other 
     such agency.
       ``(3) Criteria.--In developing the guidelines required by 
     paragraph (1)(A), the agencies described in paragraph (1) 
     shall--
       ``(A) identify patterns, practices, and specific forms of 
     activity that can compromise the accuracy and completeness of 
     information furnished to consumer reporting agencies;
       ``(B) review the methods (including technological means) 
     used to furnish information relating to consumers to consumer 
     reporting agencies;
       ``(C) determine whether persons that furnish information to 
     consumer reporting agencies maintain and enforce policies to 
     provide complete and accurate information to consumer 
     reporting agencies; and
       ``(D) examine the policies and processes that persons that 
     furnish information to consumer reporting agencies employ to 
     conduct reinvestigations and correct inaccurate information 
     relating to consumers that has been furnished to consumer 
     reporting agencies.''.
       (b) Furnisher Liability Exception.--Section 623(a)(5) of 
     the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)(5)) is 
     amended--
       (1) by striking ``A person'' and inserting the following:
       ``(A) In general.--A person'';
       (2) by inserting ``date of delinquency on the account, 
     which shall be the'' before ``month'';
       (3) by inserting ``on the account'' before ``that 
     immediately preceded''; and
       (4) by adding at the end the following:
       ``(B) Rule of construction.--For purposes of this paragraph 
     only, and provided that the consumer does not dispute the 
     information, a person that furnishes information on a 
     delinquent account that is placed for collection, charged for 
     profit or loss, or subjected to any similar action, complies 
     with this paragraph, if--
       ``(i) the person reports the same date of delinquency as 
     that provided by the creditor to which the account was owed 
     at the time at which the commencement of the delinquency 
     occurred, if the creditor previously reported that date of 
     delinquency to a consumer reporting agency;
       ``(ii) the creditor did not previously report the date of 
     delinquency to a consumer reporting agency, and the person 
     establishes and follows reasonable procedures to obtain the 
     date of delinquency from the creditor or another reliable 
     source and reports that date as the date of delinquency; or
       ``(iii) the creditor did not previously report the date of 
     delinquency to a consumer reporting agency and the date of 
     delinquency cannot be reasonably obtained as provided in 
     clause (ii), the person establishes and follows reasonable 
     procedures to ensure the date reported as the date of 
     delinquency precedes the date on which the account is placed 
     for collection, charged to profit or loss, or subjected to 
     any similar action, and reports such date to the credit 
     reporting agency.''.
       (c) Liability and Enforcement.--
       (1) Civil liability.--Section 623 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681s-2) is amended by striking 
     subsections (c) and (d) and inserting the following:
       ``(c) Limitation on Liability.--Except as provided in 
     section 621(c)(1)(B), sections 616 and 617 do not apply to 
     any violation of--
       ``(1) subsection (a) of this section;
       ``(2) subsection (e) of this section, except that nothing 
     in this paragraph shall limit, expand, or otherwise affect 
     liability under section 616 or 617, as applicable, for 
     violations of subsection (b) of this section;
       ``(3) subsection (e) or (f) of section 615; or
       ``(4) subparagraph (A) of subsection (b)(2) of this section 
     that is based on the development of procedures required by 
     that subparagraph, except that refurnishing information 
     otherwise in violation of subsection (b) shall be subject to 
     liability under sections 616 and 617, as applicable, to the 
     same extent as such a refurnishing violation was subject to 
     such liability on the day before the date of enactment of the 
     National Consumer Credit Reporting System Improvement Act of 
     2003.
       ``(d) Limitation on Enforcement.--The provisions of law 
     described in paragraphs (1) through (4) of subsection (c) 
     (other than with respect to the exceptions described in 
     paragraphs (2) and (4) of subsection (c)) shall be enforced 
     exclusively as provided under section 621 by the Federal 
     agencies and officials and the State officials identified in 
     section 621.''.
       (2) State actions.--Section 621(c) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681s(c)) is amended--
       (A) in paragraph (1)(B)(ii), by striking ``of section 
     623(a)'' and inserting ``described in any of paragraphs (1) 
     through (4) of section 623(c) (other than with respect to the 
     exception described in paragraph (4) of section 623(c))''; 
     and
       (B) in paragraph (5)--
       (i) in each of subparagraphs (A) and (B), by inserting 
     after ``section 623(a)(1)'' each place that term appears the 
     following: ``or a violation described in any of paragraphs 
     (2) through (4) of section 623(c) (other than with respect to 
     the exception described in paragraph (4) of section 
     623(c))''; and
       (ii) by amending the paragraph heading to read as follows:
       ``(5) Limitations on state actions for certain 
     violations.--''.
       (d) Rule of Construction.--Nothing in this section, the 
     amendments made by this section, or any other provision of 
     this Act shall be construed to affect any liability under 
     section 616 or 617 of the Fair Credit Reporting Act (15 
     U.S.C. 1681n, 1681o) that existed on the day before the date 
     of enactment of this Act.

     SEC. 313. FEDERAL TRADE COMMISSION AND CONSUMER REPORTING 
                   AGENCY ACTION CONCERNING COMPLAINTS.

       Section 611 of the Fair Credit Reporting Act (15 U.S.C. 
     1681i) is amended by adding at the end the following:
       ``(e) Treatment of Complaints and Report to Congress.--
       ``(1) In general.--The Federal Trade Commission shall--
       ``(A) compile all complaints that it receives that a file 
     of a consumer that is maintained by a consumer reporting 
     agency described in section 603(p) contains incomplete or 
     inaccurate information, with respect to which, the consumer 
     appears to have disputed the completeness or accuracy with 
     the consumer reporting agency or otherwise utilized the 
     procedures provided by subsection (a); and
       ``(B) transmit each such complaint to each consumer 
     reporting agency involved.
       ``(2) Exclusion.--Complaints received or obtained by the 
     Federal Trade Commission pursuant to its investigative 
     authority under the Federal Trade Commission Act shall not be 
     subject to this paragraph (1).
       ``(3) Agency responsibilities.--Each consumer reporting 
     agency described in section 603(p) that receives a complaint 
     transmitted by the Federal Trade Commission pursuant to 
     paragraph (1) shall--
       ``(A) review each such complaint to determine whether all 
     legal obligations imposed on the consumer reporting agency 
     under this title (including any obligation imposed by an 
     applicable court or administrative order) have been met with 
     respect to the subject matter of the complaint;
       ``(B) provide reports on a regular basis to the Commission 
     regarding the determinations of and actions taken by the 
     consumer reporting agency, if any, in connection with its 
     review of such complaints; and
       ``(C) maintain, for a reasonable time period, records 
     regarding the disposition of each such complaint that is 
     sufficient to demonstrate compliance with this subsection.
       ``(4) Rulemaking authority.--The Federal Trade Commission 
     may prescribe regulations in accordance with the requirements 
     of section 553 of title 5, United States Code, as appropriate 
     to implement this subsection.
       ``(5) Annual report.--The Federal Trade Commission shall 
     submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives an annual report regarding 
     information gathered by the Commission under this 
     subsection.''.

     SEC. 314. ONGOING AUDITS OF THE ACCURACY OF CONSUMER REPORTS.

       (a) Audits Required.--The Board of Governors of the Federal 
     Reserve System (in this section referred to as ``the Board'') 
     shall conduct ongoing audits of the accuracy and completeness 
     of information contained in consumer reports prepared or 
     maintained by consumer reporting agencies. The Board shall 
     independently verify the accuracy and completeness of 
     information contained in consumer reports by evaluating 
     information and data provided by consumer reporting agencies 
     (as defined in section 603 of the Fair Credit Reporting Act).
       (b) Subject Matters.--In conducting audits under this 
     section, the Board shall examine--
       (1) the accuracy and completeness of information contained 
     in consumer reports, including an analysis of the type of 
     inaccurate or incomplete information, if any, that may have 
     the most significant impact on the availability and terms of 
     various credit products offered to borrowers; and

[[Page S13991]]

       (2) the impact, if any, of incomplete and inaccurate 
     information on the credit and credit-based insurance scores 
     that are most widely used to determine borrower credit 
     worthiness and to make insurance underwriting and rating 
     decisions, including an analysis of how, if at all, changes 
     to credit scores resulting from inaccurate or incomplete 
     credit reporting information affect the availability and 
     terms of various credit products offered to borrowers.
       (c) Biennial Reports Required.--
       (1) In general.--The Board shall submit a report to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives at the end of the 2-year period beginning 
     on the date of enactment of this Act. Thereafter, the Board 
     shall conduct additional audits and submit additional reports 
     once every 2 years.
       (2) Contents.--Each report submitted under this subsection 
     shall contain a detailed summary of the findings and 
     conclusions of the Board with respect to the audits required 
     by this section, and such recommendations for legislative and 
     administrative action as the Board may determine to be 
     appropriate.
       (d) Provision of Reports to the Board for Purposes of 
     Analysis.--Section 604(d) of the Fair Credit Reporting Act 
     (12 U.S.C. 1681b(d)) is amended to read as follows:
       ``(d) Furnishing Consumer Reports for Accuracy or 
     Compliance Audits.--A consumer reporting agency shall provide 
     consumer reports to the Board of Governors of the Federal 
     Reserve System, upon request, for the purpose of conducting 
     an accuracy or compliance audit in accordance with section 
     314 of the National Consumer Credit Reporting System 
     Improvement Act of 2003.''.

     SEC. 315. IMPROVED DISCLOSURE OF THE RESULTS OF 
                   REINVESTIGATION.

       (a) In General.--Section 611(a)(5)(A) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681i) is amended by striking 
     ``shall'' and all that follows through the end of the 
     subparagraph, and inserting the following: ``shall--
       ``(i) promptly delete that item of information from the 
     file of the consumer, or modify that item of information, as 
     appropriate, based on the results of the reinvestigation; and
       ``(ii) promptly notify the furnisher of that information 
     that the information has been modified or deleted from the 
     file of the consumer.''.
       (b) Furnisher Requirements Relating to Inaccurate, 
     Incomplete, or Unverifiable Information.--Section 623(b)(1) 
     of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(b)(1)) is 
     amended--
       (1) in subparagraph (C), by striking ``and'' at the end; 
     and
       (2) in subparagraph (D), by striking the period at the end 
     and inserting the following: ``; and
       ``(E) if an item of any information disputed by a consumer 
     is found to be inaccurate or incomplete or cannot be verified 
     after any reinvestigation under paragraph (1), promptly 
     delete that item of information from the furnisher's records 
     or modify that item of information, as appropriate, based on 
     the results of the reinvestigation.''.

     SEC. 316. RECONCILING ADDRESSES.

       Section 605 of the Fair Credit Reporting Act (15 U.S.C. 
     1681c), as amended by this Act, is amended by adding at the 
     end the following:
       ``(h) Notice of Discrepancy in Address.--
       ``(1) In general.--If a person has requested a consumer 
     report relating to a consumer from a consumer reporting 
     agency described in section 603(p), the request includes an 
     address for the consumer that substantially differs from the 
     addresses in the file of the consumer, and the agency 
     provides a consumer report in response to the request, the 
     consumer reporting agency shall notify the requester of the 
     existence of the discrepancy.
       ``(2) Regulations.--
       ``(A) Regulations required.--The Federal banking agencies, 
     the National Credit Union Administration, and the Federal 
     Trade Commission shall, with respect to the entities that are 
     subject to their respective enforcement authority under 
     section 621, and in coordination as described in subparagraph 
     (B), prescribe regulations providing guidance regarding 
     reasonable policies and procedures that a user of a consumer 
     report should employ when such user has received a notice of 
     discrepancy under paragraph (1).
       ``(B) Coordination.--Each agency required to prescribe 
     regulations under subparagraph (A) shall consult and 
     coordinate with each other such agency so that, to the extent 
     possible, the regulations prescribed by each such entity are 
     consistent and comparable with the regulations prescribed by 
     each other such agency.
       ``(C) Policies and procedures to be included.--The 
     regulations prescribed under subparagraph (A) shall describe 
     reasonable policies and procedures for use by a user of a 
     consumer report--
       ``(i) to form a reasonable belief that the user knows the 
     identity of the person to whom the consumer report pertains; 
     and
       ``(ii) if the user establishes a continuing relationship 
     with the consumer, and the user regularly and in the ordinary 
     course of business furnishes information to the consumer 
     reporting agency from which the notice of discrepancy 
     pertaining to the consumer was obtained, to reconcile the 
     address of the consumer with the consumer reporting agency by 
     furnishing such address to such consumer reporting agency as 
     part of information regularly furnished by the user for the 
     period in which the relationship is established.''.

     SEC. 317. FTC STUDY OF ISSUES RELATING TO THE FAIR CREDIT 
                   REPORTING ACT.

       (a) Study Required.--
       (1) In general.--The Federal Trade Commission shall conduct 
     a study on ways to improve the operation of the Fair Credit 
     Reporting Act.
       (2) Areas for study.--In conducting the study under 
     paragraph (1), the Federal Trade Commission shall review--
       (A) the efficacy of increasing the number of points of 
     identifying information that a credit reporting agency is 
     required to match to ensure that a consumer is the correct 
     individual to whom a consumer report relates before releasing 
     a consumer report to a user, including--
       (i) the extent to which requiring additional points of such 
     identifying information to match would--

       (I) enhance the accuracy of credit reports; and
       (II) combat the provision of incorrect consumer reports to 
     users;

       (ii) the extent to which requiring an exact match of the 
     first and last name, social security number, and address and 
     ZIP Code of the consumer would enhance the likelihood of 
     increasing credit report accuracy; and
       (iii) the effects of allowing consumer reporting agencies 
     to use partial matches of social security numbers and name 
     recognition software on the accuracy of credit reports;
       (B) requiring notification to consumers when negative 
     information has been added to their credit reports, 
     including--
       (i) the potential impact of such notification on the 
     ability of consumers to identify errors on their credit 
     reports; and
       (ii) the potential impact of such notification on the 
     ability of consumers to remove fraudulent information from 
     their credit reports;
       (C) the effects of requiring that a consumer who has 
     experienced an adverse action based on a credit report 
     receives a copy of the same credit report that the creditor 
     relied on in taking the adverse action, including--
       (i) the extent to which providing such reports to consumers 
     would increase the ability of consumers to identify errors in 
     their credit reports; and
       (ii) the extent to which providing such reports to 
     consumers would increase the ability of consumers to remove 
     fraudulent information from their credit reports;
       (D) any common financial transactions that are not 
     generally reported to the consumer reporting agencies, but 
     would provide useful information in determining the credit 
     worthiness of consumers; and
       (E) any actions that might be taken within a voluntary 
     reporting system to encourage the reporting of the types of 
     transactions described in subparagraph (D).
       (3) Costs and benefits.--With respect to each area of study 
     described in paragraph (2), the Federal Trade Commission 
     shall consider the extent to which such requirements would 
     benefit consumers, balanced against the cost of implementing 
     such provisions.
       (b) Report Required.--Not later than 270 days after the 
     date of enactment of this Act, the chairman of the Federal 
     Trade Commission shall submit a report to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives containing a detailed summary of the findings 
     and conclusions of the study under this section, together 
     with such recommendations for legislative or administrative 
     actions as may be appropriate.

 TITLE IV--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE 
                            FINANCIAL SYSTEM

     SEC. 411. PROTECTION OF MEDICAL INFORMATION IN THE FINANCIAL 
                   SYSTEM.

       (a) In General.--Section 604(g) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681b(g)) is amended to read as 
     follows:
       ``(g) Protection of Medical Information.--
       ``(1) Limitation on consumer reporting agencies.--A 
     consumer reporting agency shall not furnish for employment 
     purposes, or in connection with a credit or insurance 
     transaction, a consumer report that contains medical 
     information about a consumer, unless--
       ``(A) if furnished in connection with an insurance 
     transaction, the consumer affirmatively consents to the 
     furnishing of the report;
       ``(B) if furnished for employment purposes or in connection 
     with a credit transaction--
       ``(i) the information to be furnished is relevant to 
     process or effect the employment or credit transaction; and
       ``(ii) the consumer provides specific written consent for 
     the furnishing of the report that describes in clear and 
     conspicuous language the use for which the information will 
     be furnished; or
       ``(C) such information is restricted or reported using 
     codes that do not identify, or provide information sufficient 
     to infer, the specific provider or the nature of such 
     services, products, or devices to a person other than the 
     consumer, unless the report is being provided to an insurance 
     company for a purpose relating to engaging in the business of 
     insurance, other than property and casualty insurance.
       ``(2) Limitation on creditors.--Except as permitted 
     pursuant to paragraph (3)(C) or regulations prescribed under 
     paragraph (5)(A), a creditor shall not obtain or use medical 
     information pertaining to a consumer in

[[Page S13992]]

     connection with any determination of the consumer's 
     eligibility, or continued eligibility, for credit.
       ``(3) Actions authorized by federal law, insurance 
     activities and regulatory determinations.--Section 603(d)(3) 
     shall not be construed so as to treat information or any 
     communication of information as a consumer report if the 
     information or communication is disclosed--
       ``(A) in connection with the business of insurance or 
     annuities, including the activities described in section 18B 
     of the model Privacy of Consumer Financial and Health 
     Information Regulation issued by the National Association of 
     Insurance Commissioners (as in effect on January 1, 2003);
       ``(B) for any purpose permitted without authorization under 
     the Standards for Individually Identifiable Health 
     Information promulgated by the Department of Health and Human 
     Services pursuant to the Health Insurance Portability and 
     Accountability Act of 1996, or referred to under section 1179 
     of such Act, or described in section 502(e) of Public Law 
     106-102; or
       ``(C) as otherwise determined to be necessary and 
     appropriate, by regulation or order and subject to paragraph 
     (6), by the Federal Trade Commission, any Federal banking 
     agency or the National Credit Union Administration (with 
     respect to any financial institution subject to the 
     jurisdiction of such agency or Administration under paragraph 
     (1), (2), or (3) of section 621(b), or the applicable State 
     insurance authority (with respect to any person engaged in 
     providing insurance or annuities).
       ``(4) Limitation on redisclosure of medical information.--
     Any person that receives medical information pursuant to 
     paragraph (1) or (3) shall not disclose such information to 
     any other person, except as necessary to carry out the 
     purpose for which the information was initially disclosed, or 
     as otherwise permitted by statute, regulation, or order.
       ``(5) Regulations and effective date for paragraph (2).--
       ``(A) Regulations required.--Each Federal banking agency 
     and the National Credit Union Administration shall, subject 
     to paragraph (6) and after notice and opportunity for 
     comment, prescribe regulations that permit transactions under 
     paragraph (2) that are determined to be necessary and 
     appropriate to protect legitimate operational, transactional, 
     risk, consumer, and other needs, consistent with the intent 
     of paragraph (2) to restrict the use of medical information 
     for inappropriate purposes.
       ``(B) Final regulations required.--The Federal banking 
     agencies and the National Credit Union Administration shall 
     issue the regulations required under subparagraph (A) in 
     final form before the end of the 6-month period beginning on 
     the date of enactment of the National Consumer Credit 
     Reporting System Improvement Act of 2003.
       ``(6) Coordination with other laws.--No provision of this 
     subsection shall be construed as altering, affecting, or 
     superseding the applicability of any other provision of 
     Federal law relating to medical confidentiality.''.
       (b) Restriction on Sharing of Medical Information.--Section 
     603(d) of the Fair Credit Reporting Act (15 U.S.C. 1681a(d)) 
     is amended--
       (1) in paragraph (2), by striking ``The term'' and 
     inserting ``Except as provided in paragraph (3), the term''; 
     and
       (2) by adding at the end the following new paragraph:
       ``(3) Restriction on sharing of medical information.--
     Except for information or any communication of information 
     disclosed as provided in section 604(g)(3), the exclusions in 
     paragraph (2) shall not apply with respect to information 
     disclosed to any person related by common ownership or 
     affiliated by corporate control, if the information is 
     medical information, including information that is an 
     individualized list or description based on the payment 
     transactions of the consumer for medical products or 
     services, or an aggregate list of identified consumers based 
     on payment transactions for medical products or services.
       (c) Definition.--Section 603(i) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a(i)) is amended to read as 
     follows:
       ``(i) Medical Information.--The term `medical information' 
     means information or data, other than age or gender, whether 
     oral or recorded, in any form or medium, created by or 
     derived from a health care provider or the consumer, that 
     relates to--
       ``(1) the past, present, or future physical, mental, or 
     behavioral health or condition of an individual;
       ``(2) the provision of health care to an individual; or
       ``(3) the payment for the provision of health care to an 
     individual.''.
       (d) Effective Dates.--This section shall take effect at the 
     end of the 180-day period beginning on the date of enactment 
     of this Act, except that paragraph (2) of section 604(g) of 
     the Fair Credit Reporting Act (as amended by subsection (a)) 
     shall take effect on the later of--
       (1) the end of the 90-day period beginning on the date on 
     which the regulations required under paragraph (5)(B) of such 
     section 604(g) (as added by subsection (a) of this section) 
     are issued in final form; or
       (2) the date specified in the regulations referred to in 
     paragraph (1).

     SEC. 412. CONFIDENTIALITY OF MEDICAL CONTACT INFORMATION IN 
                   CONSUMER REPORTS.

       (a) Duties of Medical Information Furnishers.--Section 
     623(a) of the Fair Credit Reporting Act (15 U.S.C. 1681s-
     2(a)) is amended by adding at the end the following:
       ``(6) Duty to provide notice of status as medical 
     information furnisher.--A person whose primary business is 
     providing medical services, products, or devices, or the 
     person's agent or assignee, who furnishes information to a 
     consumer reporting agency on a consumer shall be considered a 
     medical information furnisher for purposes of this title, and 
     shall notify the agency of such status.''.
       (b) Restriction of Dissemination of Medical Contact 
     Information.--Section 605(a) of the Fair Credit Reporting Act 
     (15 U.S.C. 1681c(a)) is amended by adding at the end the 
     following:
       ``(6) The name, address, and telephone number of any 
     medical information furnisher that has notified the agency of 
     its status, unless--
       ``(A) such name, address, and telephone number are 
     restricted or reported using codes that do not identify, or 
     provide information sufficient to infer, the specific 
     provider or the nature of such services, products, or devices 
     to a person other than the consumer; or
       ``(B) the report is being provided to an insurance company 
     for a purpose relating to engaging in the business of 
     insurance other than property and casualty insurance.''.
       (c) No Exceptions Allowed for Dollar Amounts.--Section 
     605(b) of the Fair Credit Reporting Act (15 U.S.C. 1681c(b)) 
     is amended by striking ``The provisions of subsection (a)'' 
     and inserting ``The provisions of paragraphs (1) through (5) 
     of subsection (a)''.
       (d) Coordination With Other Laws.--No provision of any 
     amendment made by this section shall be construed as 
     altering, affecting, or superseding the applicability of any 
     other provision of Federal law relating to medical 
     confidentiality.
       (e) FTC Regulation of Coding of Trade Names.--Section 621 
     of the Fair Credit Reporting Act (15 U.S.C. 1681s), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(g) FTC Regulation of Coding of Trade Names.--If the 
     Federal Trade Commission determines that a person described 
     in paragraph (6) of section 623(a) has not met the 
     requirements of such paragraph, the Commission shall take 
     action to ensure the person's compliance with such paragraph, 
     which may include issuing model guidance or prescribing 
     reasonable policies and procedures as necessary to ensure 
     that such person complies with such paragraph.''.
       (f) Technical and Conforming Amendments.--Section 604(g) of 
     the Fair Credit Reporting Act (15 U.S.C. 1681b(g)), as 
     amended by section 411 of this Act, is amended--
       (1) in paragraph (1), by inserting ``(other than medical 
     contact information treated in the manner required under 
     section 605(a)(6))'' after ``a consumer report that contains 
     medical information''; and
       (2) in paragraph (2), by inserting ``(other than medical 
     information treated in the manner required under section 
     605(a)(6))'' after ``a creditor shall not obtain or use 
     medical information''.
       (g) Effective Date.--The amendments made by this section 
     shall take effect at the end of the 15-month period beginning 
     on the date of enactment of this Act.

         TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT

     SEC. 511. SHORT TITLE.

       This title may be cited as the ``Financial Literacy and 
     Education Improvement Act''.

     SEC. 512. DEFINITIONS.

       As used in this title--
       (1) the term ``Chairperson'' means the Chairperson of the 
     Financial Literacy and Education Commission; and
       (2) the term ``Commission'' means the Financial Literacy 
     and Education Commission established under section 513.

     SEC. 513. ESTABLISHMENT OF FINANCIAL LITERACY AND EDUCATION 
                   COMMISSION.

       (a) In General.--There is established a commission to be 
     known as the ``Financial Literacy and Education Commission''.
       (b) Purpose.--The Commission shall serve to improve the 
     financial literacy and education of persons in the United 
     States.
       (c) Membership.--
       (1) Composition.--The Commission shall be composed of--
       (A) the Secretary of the Treasury;
       (B) the respective head of each of the Federal banking 
     agencies (as defined in section 3 of the Federal Deposit 
     Insurance Act), the National Credit Union Administration, the 
     Securities and Exchange Commission, each of the Departments 
     of Education, Agriculture, Defense, Health and Human 
     Services, Housing and Urban Development, Labor, and Veterans 
     Affairs, the Federal Trade Commission, the General Services 
     Administration, the Small Business Administration, the Social 
     Security Administration, the Commodity Futures Trading 
     Commission, and the Office of Personnel Management; and
       (C) at the discretion of the President, not more than 5 
     individuals appointed by the President from among the 
     administrative heads of any other Federal agencies, 
     departments, or other Government entities, whom the President 
     determines to be engaged in a serious effort to improve 
     financial literacy and education.
       (2) Alternates.--Each member of the Commission may 
     designate an alternate if the member is unable to attend a 
     meeting of the Commission. Such alternate shall be an

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     individual who exercises significant decisionmaking 
     authority.
       (d) Chairperson.--The Secretary of the Treasury shall serve 
     as the Chairperson.
       (e) Meetings.--The Commission shall hold, at the call of 
     the Chairperson, at least 1 meeting every 4 months. All such 
     meetings shall be open to the public. The Commission may 
     hold, at the call of the Chairperson, such other meetings as 
     the Chairperson sees fit to carry out this title.
       (f) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (g) Initial Meeting.--The Commission shall hold its first 
     meeting not later than 60 days after the date of enactment of 
     this Act.

     SEC. 514. DUTIES OF THE COMMISSION.

       (a) Duties.--
       (1) In general.--The Commission, through the authority of 
     the members referred to in section 513(c), shall take such 
     actions as it deems necessary to streamline, improve, or 
     augment the financial literacy and education programs, 
     grants, and materials of the Federal Government, including 
     curricula for all Americans.
       (2) Areas of emphasis.--To improve financial literacy and 
     education, the Commission shall emphasize, among other 
     elements, basic personal income and household money 
     management and planning skills, including how to--
       (A) create household budgets, initiate savings plans, and 
     make strategic investment decisions for education, 
     retirement, home ownership, wealth building, or other savings 
     goals;
       (B) manage spending, credit, and debt, including credit 
     card debt, effectively;
       (C) increase awareness of the availability and significance 
     of credit reports and credit scores in obtaining credit, the 
     importance of their accuracy (and how to correct 
     inaccuracies), their effect on credit terms, and the effect 
     common financial decisions may have on credit scores;
       (D) ascertain fair and favorable credit terms;
       (E) avoid abusive, predatory, or deceptive credit offers 
     and financial products;
       (F) understand, evaluate, and compare financial products, 
     services, and opportunities;
       (G) understand resources that ought to be easily accessible 
     and affordable, and that inform and educate investors as to 
     their rights and avenues of recourse when an investor 
     believes his or her rights have been violated by 
     unprofessional conduct of market intermediaries; and
       (H) improve financial literacy and education through all 
     other related skills.
       (b) Website.--
       (1) In general.--The Commission shall establish and 
     maintain a website, such as the domain name 
     ``FinancialLiteracy.gov'', or a similar domain name.
       (2) Purposes.--The website established under paragraph (1) 
     shall--
       (A) serve as a clearinghouse of information about Federal 
     financial literacy and education programs;
       (B) provide a coordinated entry point for accessing 
     information about all Federal publications, grants, and 
     materials promoting enhanced financial literacy and 
     education;
       (C) offer information on all Federal grants to promote 
     financial literacy and education, and on how to target, apply 
     for, and receive a grant that is most appropriate under the 
     circumstances;
       (D) as the Commission considers appropriate, feature 
     website links to efforts that have no commercial content and 
     that feature information about financial literacy and 
     education programs, materials, or campaigns; and
       (E) offer such other information as the Commission finds 
     appropriate to share with the public in the fulfillment of 
     its purpose.
       (c) Toll-Free Hotline.--The Commission shall establish a 
     toll-free telephone number that shall be made available to 
     members of the public seeking information about issues 
     pertaining to financial literacy and education.
       (d) Development and Dissemination of Materials.--The 
     Commission shall--
       (1) develop materials to promote financial literacy and 
     education; and
       (2) disseminate such materials to the general public.
       (e) Coordination of Efforts.--The Commission shall take 
     such steps as are necessary to coordinate and promote 
     financial literacy and education efforts at the State and 
     local level, including promoting partnerships among Federal, 
     State, and local governments, nonprofit organizations, and 
     private enterprises.
       (f) National Strategy.--
       (1) In general.--The Commission shall--
       (A) not later than 18 months after the date of enactment of 
     this Act, develop a national strategy to promote basic 
     financial literacy and education among all American 
     consumers; and
       (B) coordinate Federal efforts to implement the strategy 
     developed under subparagraph (A).
       (2) Strategy.--The strategy to promote basic financial 
     literacy and education required to be developed under 
     paragraph (1) shall provide for--
       (A) participation by State and local governments and 
     private, nonprofit, and public institutions in the creation 
     and implementation of such strategy;
       (B) the development of methods--
       (i) to increase the general financial education level of 
     current and future consumers of financial services and 
     products; and
       (ii) to enhance the general understanding of financial 
     services and products;
       (C) review of Federal activities designed to promote 
     financial literacy and education, and development of a plan 
     to improve coordination of such activities; and
       (D) the identification of areas of overlap and duplication 
     among Federal financial literacy and education activities and 
     proposed means of eliminating any such overlap and 
     duplication.
       (3) National strategy review.--The Commission shall, not 
     less than annually, review the national strategy developed 
     under this subsection and make such changes and 
     recommendations as it deems necessary.
       (g) Consultation.--The Commission shall actively consult 
     with a variety of representatives from private and nonprofit 
     organizations and State and local agencies, as determined 
     appropriate by the Commission.
       (h) Reports.--
       (1) In general.--Not later than 18 months after the date of 
     the first meeting of the Commission, and annually thereafter, 
     the Commission shall issue a report to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives on the progress of the Commission in carrying 
     out this title.
       (2) Contents.--The report required under paragraph (1) 
     shall include--
       (A) information concerning the implementation of the duties 
     of the Commission under subsections (a) through (g);
       (B) an assessment of the success of the Commission in 
     implementing the national strategy developed under subsection 
     (f);
       (C) an assessment of the availability, utilization, and 
     impact of Federal financial literacy and education materials;
       (D) information concerning the content and public use of--
       (i) the website established under subsection (b); and
       (ii) the toll-free telephone number established under 
     subsection (c);
       (E) a brief survey of the financial literacy and education 
     materials developed under subsection (d), and data regarding 
     the dissemination and impact of such materials, as measured 
     by improved financial decision making;
       (F) a brief summary of any hearings conducted by the 
     Commission, including a list of witnesses who testified at 
     such hearings;
       (G) information about the activities of the Commission 
     planned for the next fiscal year;
       (H) a summary of all Federal financial literacy and 
     education activities targeted to communities that have 
     historically lacked access to financial literacy materials 
     and education, and have been underserved by the mainstream 
     financial systems; and
       (I) such other materials relating to the duties of the 
     Commission as the Commission deems appropriate.
       (3) Initial report.--The initial report under paragraph (1) 
     shall include information regarding all Federal programs, 
     materials, and grants which seek to improve financial 
     literacy, and assess the effectiveness of such programs.
       (i) Testimony.--The Commission shall provide, upon request, 
     testimony by the Chairperson to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives.

     SEC. 515. POWERS OF THE COMMISSION.

       (a) Hearings.--The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out this title.
       (b) Information From Federal Agencies.--The Commission may 
     secure directly from any Federal department or agency such 
     information as the Commission considers necessary to carry 
     out this title. Upon request of the Chairperson, the head of 
     such department or agency shall furnish such information to 
     the Commission.
       (c) Periodic Studies.--The Commission may conduct periodic 
     studies regarding the state of financial literacy and 
     education in the United States, as the Commission determines 
     appropriate.

     SEC. 516. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the Commission 
     shall serve without compensation in addition to that received 
     for their service as an officer or employee of the United 
     States.
       (b) Travel Expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (c) Assistance.--
       (1) In general.--The Director of the Office of Financial 
     Education of the Department of the Treasury shall provide 
     assistance to the Commission, upon request of the Commission, 
     without reimbursement.
       (2) Detail of government employees.--Any Federal Government 
     employee may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.

     SEC. 517. STUDY BY THE COMPTROLLER GENERAL.

       Not later than 3 years after the date of enactment of this 
     Act, the Comptroller General

[[Page S13994]]

     of the United States shall submit a report to Congress 
     assessing the effectiveness of the Commission in promoting 
     financial literacy and education.

     SEC. 518. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Commission 
     such sums as may be necessary to carry out this title, 
     including administrative expenses of the Commission.

                    TITLE VI--RELATION TO STATE LAW

     SEC. 611. RELATION TO STATE LAW.

       Section 625(d) of the Fair Credit Reporting Act (15 U.S.C. 
     1681t(d), regarding relation to State laws), as so designated 
     by section 214 of this Act, is amended--
       (1) by striking paragraph (2);
       (2) by striking ``(c)--'' and all that follows through ``do 
     not affect'' and inserting ``(c) do not affect''; and
       (3) by striking ``1996; and'' and inserting ``1996.''.

                        TITLE VII--MISCELLANEOUS

     SEC. 711. CLERICAL AMENDMENTS.

       (a) Short Title.--Section 601 of the Fair Credit Reporting 
     Act (15 U.S.C. 1601 note) is amended by striking ``the Fair 
     Credit Reporting Act.'' and inserting ``the `Fair Credit 
     Reporting Act'.''.
       (b) Section 604.--Section 604(a) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681b(a)) is amended in paragraphs 
     (1) through (5), other than subparagraphs (E) and (F) of 
     paragraph (3), by moving each margin 2 ems to the right.
       (c) Section 605.--
       (1) Section 605(a)(1) of the Fair Credit Reporting Act (15 
     U.S.C. 1681c(a)(1)) is amended by striking ``(1) cases'' and 
     inserting ``(1) Cases''.
       (2)(A) Section 5(1) of Public Law 105-347 (112 Stat. 3211) 
     is amended by striking ``Judgments which'' and inserting 
     ``judgments which''.
       (B) The amendment made by subparagraph (A) shall be deemed 
     to have the same effective date as section 5(1) of Public Law 
     105-347 (112 Stat. 3211).
       (d) Section 609.--Section 609(a) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681g(a)) is amended--
       (1) in paragraph (2), by moving the margin 2 ems to the 
     right; and
       (2) in paragraph (3)(C), by moving the margins 2 ems to the 
     left.
       (e) Section 617.--Section 617(a)(1) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681o(a)(1)) is amended by adding 
     ``and'' at the end.
       (f) Section 621.--Section 621(b)(1)(B) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681s(b)(1)(B)) is amended by 
     striking ``25(a)'' and inserting ``25A''.
       (g) Title 31.--Section 5318 of title 31, United States 
     Code, is amended by redesignating the second item designated 
     as subsection (l) (relating to applicability of rules) as 
     subsection (m).
       (h) Conforming Amendment.--Section 2411(c) of Public Law 
     104-208 (110 Stat. 3009-445) is repealed.

  Mr. SHELBY. Mr. President, I move to reconsider the vote.
  Mr. BENNETT. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  The PRESIDING OFFICER. Under the previous order, the Senate insists 
on its amendments, requests a conference with the House on the 
disagreeing votes of the two Houses, and the Chair is authorized to 
appoint the following conferees:
  The Presiding Officer appointed Mr. Shelby, Mr. Bennett, Mr. Allard, 
Mr. Enzi, Mr. Sarbanes, Mr. Dodd, and Mr. Johnson, conferees on the 
part of the Senate.
  The PRESIDING OFFICER. Under the previous order, S. 1753 is returned 
to the calendar.

                          ____________________