[Congressional Record Volume 149, Number 170 (Friday, November 21, 2003)]
[House]
[Pages H12198-H12224]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 CONFERENCE REPORT ON H.R. 2622, FAIR AND ACCURATE CREDIT TRANSACTIONS 
                              ACT OF 2003

  Mr. OXLEY (during consideration of H. Res. 458) submitted the 
following conference report and statement on the bill (H.R. 2622) 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:

                  Conference Report (H. Rept. 108-396)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2622), 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, having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Fair and 
     Accurate Credit Transactions Act of 2003''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Effective dates.

   TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION

                 Subtitle A--Identity Theft Prevention

Sec. 111. Amendment to 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. 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.
Sec. 157. Study on the use of technology to combat identity theft.

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

Sec. 211. Free consumer reports.
Sec. 212. Disclosure of 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.
Sec. 217. Requirement to disclose communications to a consumer 
              reporting agency.

    TITLE III--ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION

Sec. 311. Risk-based pricing notice.
Sec. 312. Procedures to enhance the accuracy and integrity of 
              information furnished to consumer reporting agencies.
Sec. 313. FTC and consumer reporting agency action concerning 
              complaints.
Sec. 314. Improved disclosure of the results of reinvestigation.
Sec. 315. Reconciling addresses.
Sec. 316. Notice of dispute through reseller.
Sec. 317. Reasonable reinvestigation required.
Sec. 318. FTC study of issues relating to the Fair Credit Reporting 
              Act.
Sec. 319. FTC study of the accuracy of consumer reports.

 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.
Sec. 514. Duties of the Commission.
Sec. 515. Powers of the Commission.
Sec. 516. Commission personnel matters.
Sec. 517. Studies by the Comptroller General.
Sec. 518. The national public service multimedia campaign to enhance 
              the state of financial literacy.
Sec. 519. Authorization of appropriations.

        TITLE VI--PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS

Sec. 611. Certain employee investigation communications excluded from 
              definition of consumer report.

                   TITLE VII--RELATION TO STATE LAWS

Sec. 711. Relation to State laws.

                       TITLE VIII--MISCELLANEOUS

Sec. 811. Clerical amendments.

     SEC. 2. DEFINITIONS.

       As used in this Act--
       (1) the term ``Board'' means the Board of Governors of the 
     Federal Reserve System;
       (2) the term ``Commission'', other than as used in title V, 
     means the Federal Trade Commission;
       (3) 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
       (4) the term ``affiliates'' means persons that are related 
     by common ownership or affiliated by corporate control.

     SEC. 3. EFFECTIVE DATES.

       Except as otherwise specifically provided in this Act and 
     the amendments made by this Act--
       (1) before the end of the 2-month period beginning on the 
     date of enactment of this Act, the Board and the Commission 
     shall jointly prescribe regulations in final form 
     establishing effective dates for each provision of this Act; 
     and
       (2) the regulations prescribed under paragraph (1) shall 
     establish effective dates that are as early as possible, 
     while allowing a reasonable time for the implementation of 
     the provisions of this Act, but in no case shall any such 
     effective date be later than 10 months after the date of 
     issuance of such regulations in final form.
   TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION
                 Subtitle A--Identity Theft Prevention

     SEC. 111. AMENDMENT TO 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.

[[Page H12199]]

       ``(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; and
       ``(B) is presented in a manner that facilitates a clear and 
     conspicuous view of the statement described in subparagraph 
     (A) by any person requesting such consumer report.
       ``(3) Identity theft.--The term `identity theft' means a 
     fraud committed using the identifying information of another 
     person, subject to such further definition as the Commission 
     may prescribe, by regulation.
       ``(4) Identity theft report.--The term `identity theft 
     report' has the meaning given that term by rule of the 
     Commission, and means, at a minimum, a report--
       ``(A) that alleges an identity theft;
       ``(B) that is a copy of an official, valid report filed by 
     a consumer with an appropriate Federal, State, or local law 
     enforcement agency, including the United States Postal 
     Inspection Service, or such other government agency deemed 
     appropriate by the Commission; and
       ``(C) 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.
       ``(5) New credit plan.--The term `new credit plan' means a 
     new account under an open end credit plan (as defined in 
     section 103(i) of the Truth in Lending Act) or a new credit 
     transaction not under an open end credit plan.
       ``(r) Credit and Debit Related Terms--
       ``(1) Card issuer.--The term `card issuer' means--
       ``(A) a credit card issuer, in the case of a credit card; 
     and
       ``(B) a debit card issuer, in the case of a debit card.
       ``(2) Credit card.--The term `credit card' has the same 
     meaning as in section 103 of the Truth in Lending Act.
       ``(3) 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.
       ``(4) 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.
       ``(5) Credit and creditor.--The terms `credit' and 
     `creditor' have the same meanings as in section 702 of the 
     Equal Credit Opportunity Act.
       ``(s) Federal Banking Agency.--The term `Federal banking 
     agency' has the same meaning as in section 3 of the Federal 
     Deposit Insurance Act.
       ``(t) 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 a transaction account (as 
     defined in section 19(b) of the Federal Reserve Act) 
     belonging to a consumer.
       ``(u) 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.
       ``(v) Commission.--The term `Commission' means the Federal 
     Trade Commission.
       ``(w) Nationwide Specialty Consumer Reporting Agency.--The 
     term `nationwide specialty consumer reporting agency' means a 
     consumer reporting agency that compiles and maintains files 
     on consumers on a nationwide basis relating to--
       ``(1) medical records or payments;
       ``(2) residential or tenant history;
       ``(3) check writing history;
       ``(4) employment history; or
       ``(5) insurance claims.''.

     SEC. 112. FRAUD ALERTS AND ACTIVE DUTY ALERTS.

       (a) Fraud 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 direct request of a 
     consumer, or an individual acting on behalf of or as a 
     personal representative 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, 
     and also provide that alert along with any credit score 
     generated in using that file, for a period of not less than 
     90 days, beginning on the date of such request, unless the 
     consumer or such representative 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 direct request of a consumer, 
     or an individual acting on behalf of or as a personal 
     representative 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, 
     and also provide that alert along with any credit score 
     generated in using that file, during the 7-year period 
     beginning on the date of such request, unless the consumer or 
     such representative 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 5-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 or such representative 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) 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 direct request of an 
     active duty military consumer, or an individual acting on 
     behalf of or as a personal representative 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, and also provide that alert 
     along with any credit score generated in using that file, 
     during a period of not less than 12 months, or such longer 
     period as the Commission shall determine, by regulation, 
     beginning on the date of the request, unless the active duty 
     military consumer or such representative 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 2-year 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 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 inform 
     consumers of the availability of initial, extended, and 
     active duty alerts and procedures that allow consumers and 
     active duty military consumers to request initial, extended, 
     or active duty alerts (as applicable) in a simple and easy 
     manner, including by telephone.
       ``(e) Referrals of 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 (2) 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

[[Page H12200]]

     how to contact the Commission and the consumer reporting 
     agencies described in section 603(p) to obtain more detailed 
     information and request alerts under this section.
       ``(h) Limitations on Use of Information for Credit 
     Extensions..--
       ``(1) Requirements for initial and active duty alerts.--
       ``(A) Notification.--Each initial fraud alert and active 
     duty alert under this section shall include information that 
     notifies all prospective users of a consumer report on the 
     consumer to which the alert relates that the consumer does 
     not authorize the establishment of any new credit plan or 
     extension of credit, other than under an open-end credit plan 
     (as defined in section 103(i)), in the name of the consumer, 
     or issuance of an additional card on an existing credit 
     account requested by a consumer, or any increase in credit 
     limit on an existing credit account requested by a consumer, 
     except in accordance with subparagraph (B).
       ``(B) Limitation on users.--
       ``(i) In general.--No prospective user of a consumer report 
     that includes an initial fraud alert or an active duty alert 
     in accordance with this section may establish a new credit 
     plan or extension of credit, other than under an open-end 
     credit plan (as defined in section 103(i)), in the name of 
     the consumer, or issue an additional card on an existing 
     credit account requested by a consumer, or grant any 
     increase in credit limit on an existing credit account 
     requested by a consumer, unless the user utilizes 
     reasonable policies and procedures to form a reasonable 
     belief that the user knows the identity of the person 
     making the request.
       ``(ii) Verification.--If a consumer requesting the alert 
     has specified a telephone number to be used for identity 
     verification purposes, before authorizing any new credit plan 
     or extension described in clause (i) in the name of such 
     consumer, a user of such consumer report shall contact the 
     consumer using that telephone number or take reasonable steps 
     to verify the consumer's identity and confirm that the 
     application for a new credit plan is not the result of 
     identity theft.
       ``(2) Requirements for extended alerts.--
       ``(A) Notification.--Each extended alert under this section 
     shall include information that provides all prospective users 
     of a consumer report relating to a consumer with--
       ``(i) notification that the consumer does not authorize the 
     establishment of any new credit plan or extension of credit 
     described in clause (i), other than under an open-end credit 
     plan (as defined in section 103(i)), in the name of the 
     consumer, or issuance of an additional card on an existing 
     credit account requested by a consumer, or any increase in 
     credit limit on an existing credit account requested by a 
     consumer, except in accordance with subparagraph (B); and
       ``(ii) a telephone number or other reasonable contact 
     method designated by the consumer.
       ``(B) Limitation on users.--No prospective user of a 
     consumer report or of a credit score generated using the 
     information in the file of a consumer that includes an 
     extended fraud alert in accordance with this section may 
     establish a new credit plan or extension of credit, other 
     than under an open-end credit plan (as defined in section 
     103(i)), in the name of the consumer, or issue an additional 
     card on an existing credit account requested by a consumer, 
     or any increase in credit limit on an existing credit account 
     requested by a consumer, unless the user contacts the 
     consumer in person or using the contact method described in 
     subparagraph (A)(ii) to confirm that the application for a 
     new credit plan or increase in credit limit, or request for 
     an additional card is not the result of identity theft.''.
       (b) Rulemaking.--The Commission shall prescribe regulations 
     to define what constitutes appropriate proof of identity for 
     purposes of sections 605A, 605B, and 609(a)(1) of the Fair 
     Credit Reporting Act, as amended by this Act.

     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 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 number or the expiration date 
     upon any receipt provided to the cardholder at the point of 
     the sale or transaction.
       ``(2) Limitation.--This subsection shall apply only to 
     receipts that are electronically printed, and shall 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.

       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 Commission 
     shall jointly, with respect to the entities that are subject 
     to their respective enforcement authority under section 621--
       ``(A) establish and maintain guidelines for use by each 
     financial institution and each creditor 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 creditor to establish reasonable 
     policies and procedures for implementing the guidelines 
     established pursuant to subparagraph (A), to identify 
     possible risks to account holders or customers or to the 
     safety and soundness of the institution or customers; and
       ``(C) prescribe regulations applicable to card issuers to 
     ensure that, if a card issuer receives notification of a 
     change of address for an existing account, and within a short 
     period of time (during at least the first 30 days after such 
     notification is received) receives a request for an 
     additional or replacement card for the same account, the card 
     issuer may not issue the additional or replacement card, 
     unless the card issuer, in accordance with reasonable 
     policies and procedures--
       ``(i) 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;
       ``(ii) notifies the cardholder of the request by such other 
     means of communication as the cardholder and the card issuer 
     previously agreed to; or
       ``(iii) 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 subparagraph (B).
       ``(2) Criteria.--
       ``(A) In general.--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.
       ``(B) Inactive accounts.--In developing the guidelines 
     required by paragraph (1)(A), the agencies described in 
     paragraph (1) shall consider including reasonable guidelines 
     providing that when a transaction occurs with respect to a 
     credit or deposit account that has been inactive for more 
     than 2 years, the creditor or financial institution shall 
     follow reasonable policies and procedures that provide for 
     notice to be given to a consumer in a manner reasonably 
     designed to reduce the likelihood of identity theft with 
     respect to such account.
       ``(3) Consistency with verification requirements.--
     Guidelines established pursuant to paragraph (1) shall not be 
     inconsistent with the policies and procedures required under 
     section 5318(l) of title 31, United States Code.''.

     SEC. 115. 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.--
       (1) Summary.--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 Commission, in consultation with the 
     Federal banking agencies and the National Credit Union 
     Administration, shall prepare a model 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, an electronic fund transfer, or an account 
     or transaction at or with a financial institution or other 
     creditor.
       ``(2) Summary of rights and contact information.--Beginning 
     60 days after the date on which the model summary of rights 
     is prescribed in final form by the Commission pursuant to 
     paragraph (1), 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 or other creditor, the consumer 
     reporting agency shall, in addition to any other action that 
     the agency may take, provide the consumer with a summary of 
     rights that contains all of the information required by the 
     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 30 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

[[Page H12201]]

     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 government 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, otherwise has 
     a high degree of confidence that it knows 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 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;
       ``(B) be mailed to an address specified by the business 
     entity, if any; and
       ``(C) if asked by the business entity, include relevant 
     information about any transaction alleged to be a result of 
     identity theft to facilitate compliance with this section 
     including--
       ``(i) if known by the victim (or if readily obtainable by 
     the victim), the date of the application or transaction; and
       ``(ii) if known by the victim (or if readily obtainable by 
     the victim), any other identifying information such as an 
     account or transaction number.
       ``(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) after reviewing the information provided pursuant to 
     paragraph (2), the business entity does not have a high 
     degree of confidence in knowing the true identity of the 
     individual requesting the information;
       ``(C) 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
       ``(D) 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) Limitation on civil liability.--No business entity 
     may be held civilly liable under any provision of Federal, 
     State, or other law for disclosure, made in good faith 
     pursuant to this subsection.
       ``(8) 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.
       ``(9) Rule of construction.--
       ``(A) In general.--No provision of subtitle A of title V of 
     Public Law 106-102, 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.
       ``(10) 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 reasonably available.
       ``(11) 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, an identity theft or a 
     similar crime.
       ``(12) Effective date.--This subsection shall become 
     effective 180 days after the date of enactment of this 
     subsection.
       ``(13) Effectiveness study.--Not later than 18 months after 
     the date of enactment of this subsection, the Comptroller 
     General of the United States shall submit a report to 
     Congress assessing the effectiveness of this provision.''.
       (2) Relation to state laws.--Section 625(b)(1) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681t(b)(1), as so 
     redesignated) is amended by adding at the end the following 
     new subparagraph:
       ``(G) section 609(e), relating to information available to 
     victims under section 609(e);''.
       (b) Public Campaign To Prevent Identity Theft.--Not later 
     than 2 years after the date of enactment of this Act, the 
     Commission shall establish and implement a media and 
     distribution campaign to teach the public how to prevent 
     identity theft. Such campaign shall include existing 
     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.

     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 4 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;
       ``(3) the identification of such information by the 
     consumer; and
       ``(4) a statement by the consumer that the information is 
     not information relating to any transaction 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 by the consumer 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 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 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 4 business days after receipt of information 
     described in paragraphs (1) through (3) of subsection (a), a 
     check services company shall not

[[Page H12202]]

     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 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 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.--
     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) Duties of furnishers upon notice of identity theft-
     related information.--
       ``(A) Reasonable procedures.--A person that furnishes 
     information to any consumer reporting agency shall 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.
       ``(B) Information alleged to result from identity theft.--
     If a consumer submits an identity theft report to a person 
     who furnishes information to a consumer reporting agency at 
     the address specified by that person for receiving such 
     reports stating that information maintained by such person 
     that purports to relate to the consumer resulted from 
     identity theft, the person may not furnish such information 
     that purports to relate to the consumer to any consumer 
     reporting agency, unless the person subsequently knows or is 
     informed by the consumer that the information is correct.''.
       (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:
       ``(f) 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 the pledging of a 
     portfolio of debt as collateral in connection with a 
     borrowing; 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:
       ``(g) 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.''.

     SEC. 157. STUDY ON THE USE OF TECHNOLOGY TO COMBAT IDENTITY 
                   THEFT.

       (a) Study Required.--The Secretary of the Treasury shall 
     conduct a study of the use of biometrics and other similar 
     technologies to reduce the incidence and costs to society of 
     identity theft by providing convincing evidence of who 
     actually performed a given financial transaction.
       (b) Consultation.--The Secretary of the Treasury shall 
     consult with Federal banking agencies, the Commission, and 
     representatives of financial institutions, consumer reporting 
     agencies, Federal, State, and local government agencies that 
     issue official forms or means of identification, State 
     prosecutors, law enforcement agencies, the biometric 
     industry, and the general public in formulating and 
     conducting the study required by subsection (a).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of the Treasury for 
     fiscal year 2004, such sums as may be necessary to carry out 
     the provisions of this section.
       (d) Report Required.--Before the end of the 180-day period 
     beginning on the date of enactment of this Act, the Secretary 
     shall submit a report to Congress containing the findings 
     and conclusions of the study required under subsection 
     (a), together with such recommendations for legislative or 
     administrative actions as may be appropriate.
    TITLE II--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT 
                              INFORMATION

     SEC. 211. FREE CONSUMER 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) Nationwide consumer reporting agencies.--
       ``(A) In general.--All consumer reporting agencies 
     described in subsections (p) and (w) of section 603 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.
       ``(B) Centralized source.--Subparagraph (A) shall apply 
     with respect to a consumer reporting agency described in 
     section 603(p) only if the request from the consumer is made 
     using the centralized source established for such purpose in 
     accordance with section 211(c) of the Fair and Accurate 
     Credit Transactions Act of 2003.
       ``(C) Nationwide specialty consumer reporting agency.--
       ``(i) In general.--The Commission shall prescribe 
     regulations applicable to each consumer reporting agency 
     described in section 603(w) to require the establishment of a 
     streamlined process for consumers to request consumer reports 
     under subparagraph (A), which shall include, at a minimum, 
     the establishment by each such agency of a toll-free 
     telephone number for such requests.
       ``(ii) Considerations.--In prescribing regulations under 
     clause (i), the Commission shall consider--

       ``(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; and
       ``(III) the ease by which consumers should be able to 
     contact consumer reporting agencies with respect to access to 
     such consumer reports.

       ``(iii) Date of issuance.--The Commission shall issue the 
     regulations required by this subparagraph in final form not 
     later than 6 months after the date of enactment of the Fair 
     and Accurate Credit Transactions Act of 2003.
       ``(iv) Consideration of ability to comply.--The regulations 
     of the Commission under this subparagraph shall establish an 
     effective date by which each nationwide specialty consumer 
     reporting agency (as defined in section 603(w)) shall be 
     required to comply with subsection (a), which effective 
     date--

       ``(I) shall be established after consideration of the 
     ability of each nationwide specialty consumer reporting 
     agency to comply with subsection (a); and
       ``(II) shall be not later than 6 months after the date on 
     which such regulations are issued in final form (or such 
     additional period not to exceed 3 months, as the Commission 
     determines appropriate).

       ``(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

[[Page H12203]]

     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.
       ``(4) Exception for first 12 months of operation.--This 
     subsection shall not apply to a consumer reporting agency 
     that has not been furnishing consumer reports to third 
     parties on a continuing basis during the 12-month period 
     preceding a request under paragraph (1), with respect to 
     consumers residing nationwide.'';
       (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)(2) 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) Circumvention Prohibited.--The Fair Credit Reporting 
     Act (15 U.S.C. 1681 et seq.) is amended by adding after 
     section 628, as added by section 216 of this Act, the 
     following new section:

     ``Sec. 629. Corporate and technological circumvention 
       prohibited

       ``The Commission shall prescribe regulations, to become 
     effective not later than 90 days after the date of enactment 
     of this section, to prevent a consumer reporting agency from 
     circumventing or evading treatment as a consumer reporting 
     agency described in section 603(p) for purposes of this 
     title, including--
       ``(1) by means of a corporate reorganization or 
     restructuring, including a merger, acquisition, dissolution, 
     divestiture, or asset sale of a consumer reporting agency; or
       ``(2) by maintaining or merging public record and credit 
     account information in a manner that is substantially 
     equivalent to that described in paragraphs (1) and (2) of 
     section 603(p), in the manner described in section 603(p).''.
       (c) 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.--
       ``(1) Commission summary of rights required.--
       ``(A) In general.--The 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;
       ``(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 
     Commission prescribed under section 211(c) of the Fair and 
     Accurate Credit Transactions Act of 2003; and
       ``(vi) the method by which a consumer can contact, and 
     obtain a consumer report from, a consumer reporting agency 
     described in section 603(w), as provided in the regulations 
     of the Commission prescribed under section 612(a)(1)(C).
       ``(C) Availability of summary of rights.--The 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 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.''.
       (d) Rulemaking Required.--
       (1) In general.--The 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 such consumer reporting agency, 
     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 section); and
       (B) a standardized form for a consumer to make such a 
     request for a consumer report by mail or through an Internet 
     website.
       (2) Considerations.--In prescribing regulations under 
     paragraph (1), the Commission shall consider--
       (A) the significant demands that may be placed on consumer 
     reporting agencies in providing such consumer reports;
       (B) 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; and
       (C) the ease by which consumers should be able to contact 
     consumer reporting agencies with respect to access to such 
     consumer reports.
       (3) Centralized source.--The centralized source for a 
     request for a consumer report from a consumer required by 
     this subsection shall provide for--
       (A) a toll-free telephone number for such purpose;
       (B) use of an Internet website for such purpose; and
       (C) a process for requests by mail for such purpose.
       (4) Transition.--The regulations of the Commission under 
     paragraph (1) shall provide for an orderly transition by 
     consumer reporting agencies described in section 603(p) of 
     the Fair Credit Reporting Act to the centralized source for 
     consumer report distribution required by section 
     612(a)(1)(B), as amended by this section, in a manner that--
       (A) does not temporarily overwhelm such consumer reporting 
     agencies with requests for disclosures of consumer reports 
     beyond their capacity to deliver; and
       (B) does not deny creditors, other users, and consumers 
     access to consumer reports on a time-sensitive basis for 
     specific purposes, such as home purchases or suspicions of 
     identity theft, during the transition period.
       (5) 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.
       (6) Scope of regulations.--
       (A) In general.--The Commission shall, by rule, determine 
     whether to require a consumer reporting agency that compiles 
     and maintains files on consumers on substantially a 
     nationwide basis, other than one described in section 603(p) 
     of the Fair Credit Reporting Act, to make free consumer 
     reports available upon consumer request, and if so, whether 
     such consumer reporting agencies should make such free 
     reports available through the centralized source described in 
     paragraph (1)(A).
       (B) Considerations.--Before making any determination under 
     subparagraph (A), the Commission shall consider--
       (i) the number of requests for consumer reports to, and the 
     number of consumer reports generated by, the consumer 
     reporting agency, in comparison with consumer reporting 
     agencies described in subsections (p) and (w) of section 603 
     of the Fair Credit Reporting Act;
       (ii) the overall scope of the operations of the consumer 
     reporting agency;
       (iii) the needs of consumers for access to consumer reports 
     provided by consumer reporting agencies free of charge;
       (iv) the costs of providing access to consumer reports by 
     consumer reporting agencies free of charge; and
       (v) the effects on the ongoing competitive viability of 
     such consumer reporting agencies if such free access is 
     required.

     SEC. 212. DISCLOSURE OF CREDIT SCORES.

       (a) Statement on Availability of Credit Scores.--Section 
     609(a) of the Fair Credit Reporting Act (15 U.S.C. 1681g(a)) 
     is amended by adding at the end the following new paragraph:
       ``(6) If the consumer requests the credit file and not the 
     credit score, a statement that the consumer may request and 
     obtain a credit score.''.
       (b) Disclosure of Credit Scores.--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) Disclosure of Credit Scores.--
       ``(1) In general.--Upon the request of a consumer for a 
     credit score, a consumer reporting agency shall supply to the 
     consumer a statement indicating that the information and 
     credit scoring model may be different than the credit score 
     that may be used by the lender, and a notice which shall 
     include--
       ``(A) the current credit score of the consumer or the most 
     recent credit score of the consumer that was previously 
     calculated by the credit reporting agency for a purpose 
     related to the extension of credit;
       ``(B) the range of possible credit scores under the model 
     used;
       ``(C) all of the key factors that adversely affected the 
     credit score of the consumer in the model used, the total 
     number of which shall not exceed 4, subject to paragraph (9);
       ``(D) the date on which the credit score was created; and

[[Page H12204]]

       ``(E) the name of the person or entity that provided the 
     credit score or credit file upon which the credit score was 
     created.
       ``(2) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Credit score.--The term `credit score'--
       ``(i) means a numerical value or a categorization derived 
     from a statistical tool or modeling system used by a person 
     who makes or arranges a loan to predict the likelihood of 
     certain credit behaviors, including default (and the 
     numerical value or the categorization derived from such 
     analysis may also be referred to as a `risk predictor' or 
     `risk score'); and
       ``(ii) does not include--

       ``(I) any mortgage score or rating of an automated 
     underwriting system that considers one 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) any other elements of the underwriting process or 
     underwriting decision.

       ``(B) Key factors.--The term `key factors' means all 
     relevant elements or reasons adversely affecting the credit 
     score for the particular individual, listed in the order of 
     their importance based on their effect on the credit score.
       ``(3) Timeframe and manner of disclosure.--The information 
     required by this subsection shall be provided in the same 
     timeframe and manner as the information described in 
     subsection (a).
       ``(4) Applicability to certain uses.--This subsection shall 
     not be construed so as to compel a consumer reporting agency 
     to develop or disclose a score if the agency does not--
       ``(A) distribute scores that are used in connection with 
     residential real property loans; or
       ``(B) develop scores that assist credit providers in 
     understanding the general credit behavior of a consumer and 
     predicting the future credit behavior of the consumer.
       ``(5) Applicability to credit scores developed by another 
     person.--
       ``(A) In general.--This subsection shall not be construed 
     to require a consumer reporting agency that distributes 
     credit scores developed by another person or entity to 
     provide a further explanation of them, or to process a 
     dispute arising pursuant to section 611, except that the 
     consumer reporting agency shall provide the consumer with the 
     name and address and website for contacting the person or 
     entity who developed the score or developed the methodology 
     of the score.
       ``(B) Exception.--This paragraph shall not apply to a 
     consumer reporting agency that develops or modifies scores 
     that are developed by another person or entity.
       ``(6) Maintenance of credit scores not required.--This 
     subsection shall not be construed to require a consumer 
     reporting agency to maintain credit scores in its files.
       ``(7) Compliance in certain cases.--In complying with this 
     subsection, a consumer reporting agency shall--
       ``(A) supply the consumer with a credit score that is 
     derived from a credit scoring model that is widely 
     distributed to users by that consumer reporting agency in 
     connection with residential real property loans or with a 
     credit score that assists the consumer in understanding the 
     credit scoring assessment of the credit behavior of the 
     consumer and predictions about the future credit behavior of 
     the consumer; and
       ``(B) a statement indicating that the information and 
     credit scoring model may be different than that used by the 
     lender.
       ``(8) Fair and reasonable fee.--A consumer reporting agency 
     may charge a fair and reasonable fee, as determined by the 
     Commission, for providing the information required under this 
     subsection.
       ``(9) Use of enquiries as a key factor.--If a key factor 
     that adversely affects the credit score of a consumer 
     consists of the number of enquiries made with respect to a 
     consumer report, that factor shall be included in the 
     disclosure pursuant to paragraph (1)(C) without regard to the 
     numerical limitation in such paragraph.''.
       (c) Disclosure of Credit Scores by Certain Mortgage 
     Lenders.--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:
       ``(g) Disclosure of Credit Scores by Certain Mortgage 
     Lenders.--
       ``(1) In general.--Any person who makes or arranges loans 
     and who uses a consumer credit score, as defined in 
     subsection (f), in connection with an application initiated 
     or sought by a consumer for a closed end loan or the 
     establishment of an open end loan for a consumer purpose that 
     is secured by 1 to 4 units of residential real property 
     (hereafter in this subsection referred to as the `lender') 
     shall provide the following to the consumer as soon as 
     reasonably practicable:
       ``(A) Information required under subsection (f).--
       ``(i) In general.--A copy of the information identified in 
     subsection (f) that was obtained from a consumer reporting 
     agency or was developed and used by the user of the 
     information.
       ``(ii) Notice under subparagraph (D).--In addition to the 
     information provided to it by a third party that provided the 
     credit score or scores, a lender is only required to provide 
     the notice contained in subparagraph (D).
       ``(B) Disclosures in case of automated underwriting 
     system.--
       ``(i) In general.--If a person that is subject to this 
     subsection uses an automated underwriting system to 
     underwrite a loan, that person may satisfy the obligation to 
     provide a credit score by disclosing a credit score and 
     associated key factors supplied by a consumer reporting 
     agency.
       ``(ii) Numerical credit score.--However, if a numerical 
     credit score is generated by an automated underwriting system 
     used by an enterprise, and that score is disclosed to the 
     person, the score shall be disclosed to the consumer 
     consistent with subparagraph (C).
       ``(iii) Enterprise defined.--For purposes of this 
     subparagraph, the term `enterprise' has the same meaning as 
     in paragraph (6) of section 1303 of the Federal Housing 
     Enterprises Financial Safety and Soundness Act of 1992.
       ``(C) Disclosures of credit scores not obtained from a 
     consumer reporting agency.--A person that is subject to the 
     provisions of this subsection and that uses a credit score, 
     other than a credit score provided by a consumer reporting 
     agency, may satisfy the obligation to provide a credit score 
     by disclosing a credit score and associated key factors 
     supplied by a consumer reporting agency.
       ``(D) Notice to home loan applicants.--A copy of the 
     following notice, which shall include the name, address, and 
     telephone number of each consumer reporting agency providing 
     a credit score that was used:

                 `` `notice to the home loan applicant

       `` `In connection with your application for a home loan, 
     the lender must disclose to you the score that a consumer 
     reporting agency distributed to users and the lender used in 
     connection with your home loan, and the key factors affecting 
     your credit scores.
       `` `The credit score is a computer generated summary 
     calculated at the time of the request and based on 
     information that a consumer reporting agency or lender has on 
     file. The scores are based on data about your credit history 
     and payment patterns. Credit scores are important because 
     they are used to assist the lender in determining whether you 
     will obtain a loan. They may also be used to determine what 
     interest rate you may be offered on the mortgage. Credit 
     scores can change over time, depending on your conduct, how 
     your credit history and payment patterns change, and how 
     credit scoring technologies change.
       `` `Because the score is based on information in your 
     credit history, it is very important that you review the 
     credit-related information that is being furnished to make 
     sure it is accurate. Credit records may vary from one company 
     to another.
       `` `If you have questions about your credit score or the 
     credit information that is furnished to you, contact the 
     consumer reporting agency at the address and telephone number 
     provided with this notice, or contact the lender, if the 
     lender developed or generated the credit score. The consumer 
     reporting agency plays no part in the decision to take any 
     action on the loan application and is unable to provide you 
     with specific reasons for the decision on a loan application.
       `` `If you have questions concerning the terms of the loan, 
     contact the lender.'.
       ``(E) Actions not required under this subsection.--This 
     subsection shall not require any person to--
       ``(i) explain the information provided pursuant to 
     subsection (f);
       ``(ii) disclose any information other than a credit score 
     or key factors, as defined in subsection (f);
       ``(iii) disclose any credit score or related information 
     obtained by the user after a loan has closed;
       ``(iv) provide more than 1 disclosure per loan transaction; 
     or
       ``(v) provide the disclosure required by this subsection 
     when another person has made the disclosure to the consumer 
     for that loan transaction.
       ``(F) No obligation for content.--
       ``(i) In general.--The obligation of any person pursuant to 
     this subsection shall be limited solely to providing a copy 
     of the information that was received from the consumer 
     reporting agency.
       ``(ii) Limit on liability.--No person has liability under 
     this subsection for the content of that information or for 
     the omission of any information within the report provided by 
     the consumer reporting agency.
       ``(G) Person defined as excluding enterprise.--As used in 
     this subsection, the term `person' does not include an 
     enterprise (as defined in paragraph (6) of section 1303 of 
     the Federal Housing Enterprises Financial Safety and 
     Soundness Act of 1992).
       ``(2) Prohibition on disclosure clauses null and void.--
       ``(A) In general.--Any provision in a contract that 
     prohibits the disclosure of a credit score by a person who 
     makes or arranges loans or a consumer reporting agency is 
     void.
       ``(B) No liability for disclosure under this subsection.--A 
     lender shall not have liability under any contractual 
     provision for disclosure of a credit score pursuant to this 
     subsection.''.
       (d) Inclusion of Key Factor in Credit Score Information in 
     Consumer Report.--Section 605(d) of the Fair Credit Reporting 
     Act (15 U.S.C. 1681c(d)) is amended--
       (1) by striking ``Disclosed.--Any consumer reporting 
     agency'' and inserting ``Disclosed.--
       ``(1) Title 11 information.--Any consumer reporting 
     agency''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Key factor in credit score information.--Any consumer 
     reporting agency that furnishes a consumer report that 
     contains any credit score or any other risk score or 
     predictor on any consumer shall include in the report a clear 
     and conspicuous statement that a key factor (as defined in 
     section 609(f)(2)(B)) that adversely affected such score or 
     predictor was the number of enquiries, if such a predictor 
     was in fact a key factor that adversely affected such score. 
     This paragraph shall not apply to a check services company, 
     acting as such, which issues authorizations for the purpose 
     of approving or processing negotiable instruments, electronic

[[Page H12205]]

     fund transfers, or similar methods of payments, but only to 
     the extent that such company is engaged in such 
     activities.''.
       (e) Technical and Conforming Amendments.--Section 625(b) of 
     the Fair Credit Reporting Act (15 U.S.C. 1681t(b)), as so 
     designated by section 214 of this Act, is amended--
       (1) by striking ``or'' at the end of paragraph (2); and
       (2) by striking paragraph (3) and inserting the following:
       ``(3) with respect to the disclosures required to be made 
     under subsection (c), (d), (e), or (g) of section 609, or 
     subsection (f) of section 609 relating to the disclosure of 
     credit scores for credit granting purposes, except that this 
     paragraph--
       ``(A) shall not apply with respect to sections 1785.10, 
     1785.16, and 1785.20.2 of the California Civil Code (as in 
     effect on the date of enactment of the Fair and Accurate 
     Credit Transactions Act of 2003) and section 1785.15 through 
     section 1785.15.2 of such Code (as in effect on such date);
       ``(B) shall not apply with respect to sections 5-3-106(2) 
     and 212-14.3-104.3 of the Colorado Revised Statutes (as in 
     effect on the date of enactment of the Fair and Accurate 
     Credit Transactions Act of 2003); and
       ``(C) shall not be construed as limiting, annulling, 
     affecting, or superseding any provision of the laws of any 
     State regulating the use in an insurance activity, or 
     regulating disclosures concerning such use, of a credit-based 
     insurance score of a consumer by any person engaged in the 
     business of insurance;
       ``(4) with respect to the frequency of any disclosure under 
     section 612(a), except that this paragraph shall not apply--
       ``(A) with respect to section 12-14.3-105(1)(d) of the 
     Colorado Revised Statutes (as in effect on the date of 
     enactment of the Fair and Accurate Credit Transactions Act of 
     2003);
       ``(B) with respect to section 10-1-393(29)(C) of the 
     Georgia Code (as in effect on the date of enactment of the 
     Fair and Accurate Credit Transactions Act of 2003);
       ``(C) with respect to section 1316.2 of title 10 of the 
     Maine Revised Statutes (as in effect on the date of enactment 
     of the Fair and Accurate Credit Transactions Act of 2003);
       ``(D) with respect to sections 14-1209(a)(1) and 14-
     1209(b)(1)(i) of the Commercial Law Article of the Code of 
     Maryland (as in effect on the date of enactment of the Fair 
     and Accurate Credit Transactions Act of 2003);
       ``(E) with respect to section 59(d) and section 59(e) of 
     chapter 93 of the General Laws of Massachusetts (as in effect 
     on the date of enactment of the Fair and Accurate Credit 
     Transactions Act of 2003);
       ``(F) with respect to section 56:11-37.10(a)(1) of the New 
     Jersey Revised Statutes (as in effect on the date of 
     enactment of the Fair and Accurate Credit Transactions Act of 
     2003); or
       ``(G) with respect to section 2480c(a)(1) of title 9 of the 
     Vermont Statutes Annotated (as in effect on the date of 
     enactment of the Fair and Accurate Credit Transactions Act of 
     2003); or''.

     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 to be simple and easy to understand, as established 
     by the 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 ``5-year 
     period''.
       (d) Public Awareness Campaign.--The 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) of the Fair Credit Reporting Act (15 
     U.S.C. 1681b(e)), and otherwise take measures to increase 
     public awareness regarding the availability of the right to 
     opt out of prescreening.
       (e) Analysis of Further Restrictions on Offers of Credit or 
     Insurance.--
       (1) In general.--The Board shall conduct a study of--
       (A) the ability of consumers to avoid receiving written 
     offers of credit or insurance in connection with transactions 
     not initiated by the consumer; and
       (B) the potential impact that any further restrictions on 
     providing consumers with such written offers of credit or 
     insurance would have on consumers.
       (2) Report.--The Board shall submit a report summarizing 
     the results of the study required under paragraph (1) to the 
     Congress not later than 12 months after the date of enactment 
     of this Act, together with such recommendations for 
     legislative or administrative action as the Board may 
     determine to be appropriate.
       (3) Content of report.--The report described in paragraph 
     (2) shall address the following issues:
       (A) The current statutory or voluntary mechanisms that are 
     available to a consumer to notify lenders and insurance 
     providers that the consumer does not wish to receive written 
     offers of credit or insurance.
       (B) The extent to which consumers are currently utilizing 
     existing statutory and voluntary mechanisms to avoid 
     receiving offers of credit or insurance.
       (C) The benefits provided to consumers as a result of 
     receiving written offers of credit or insurance.
       (D) Whether consumers incur significant costs or are 
     otherwise adversely affected by the receipt of written offers 
     of credit or insurance.
       (E) Whether further restricting the ability of lenders and 
     insurers to provide written offers of credit or insurance to 
     consumers would affect--
       (i) the cost consumers pay to obtain credit or insurance;
       (ii) the availability of credit or insurance;
       (iii) consumers' knowledge about new or alternative 
     products and services;
       (iv) the ability of lenders or insurers to compete with one 
     another; and
       (v) the ability to offer credit or insurance products to 
     consumers who have been traditionally underserved.

     SEC. 214. AFFILIATE SHARING.

       (a) Limitation.--The Fair Credit Reporting Act (15 U.S.C. 
     1601 et seq.) is amended--
       (1) by redesignating sections 624 (15 U.S.C. 1681t), 625 
     (15 U.S.C. 1681u), and 626 (15 U.S.C. 6181v) as sections 625, 
     626, and 627, respectively; and
       (2) 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, but for clauses (i), (ii), and (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 
     solicitations referred to in such paragraph, 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) shall be clear, conspicuous, and 
     concise, and any method provided under paragraph (1)(B) shall 
     be simple. The regulations prescribed to implement this 
     section shall provide specific guidance regarding how to 
     comply with such standards.
       ``(3) Duration.--
       ``(A) In general.--The election of a consumer pursuant to 
     paragraph (1)(B) to prohibit the making of solicitations 
     shall be effective for at least 5 years, beginning on the 
     date on which the person receives the election of the 
     consumer, unless the consumer requests that such election be 
     revoked.
       ``(B) Notice upon expiration of effective period.--At such 
     time as the election of a consumer pursuant to paragraph 
     (1)(B) is no longer effective, a person may not use 
     information that the person receives in the manner described 
     in paragraph (1) to make any solicitation for marketing 
     purposes to the consumer, unless the consumer receives a 
     notice and an opportunity, using a simple method, to extend 
     the opt-out for another period of at least 5 years, pursuant 
     to the procedures described in paragraph (1).
       ``(4) 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 facilitate communications to an 
     individual for whose benefit the person provides employee 
     benefit or other services pursuant to a contract with an 
     employer related to and arising out of the current employment 
     relationship or status of the individual as a participant or 
     beneficiary of an employee benefit plan;
       ``(C) 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 be 
     construed as permitting 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);
       ``(D) using information in response to a communication 
     initiated by the consumer;
       ``(E) using information in response to solicitations 
     authorized or requested by the consumer; or
       ``(F) if compliance with this section by that person would 
     prevent compliance by that person with any provision of State 
     insurance laws pertaining to unfair discrimination in any 
     State in which the person is lawfully doing business.
       ``(5) No retroactivity.--This subsection shall not prohibit 
     the use of information to send a solicitation to a consumer 
     if such information was received prior to the date on which 
     persons are required to comply with regulations implementing 
     this subsection.

[[Page H12206]]

       ``(b) Notice for Other Purposes Permissible.--A notice or 
     other disclosure under this section may be coordinated and 
     consolidated with any other notice required to be issued 
     under any other provision of law by a person that is subject 
     to this section, and 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).
       ``(c) User Requirements.--Requirements with respect to the 
     use by a person of information received from another person 
     related to it by common ownership or affiliated by corporate 
     control, such as the requirements of this section, constitute 
     requirements with respect to the exchange of information 
     among persons affiliated by common ownership or common 
     corporate control, within the meaning of section 625(b)(2).
       ``(d) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Pre-existing business relationship.--The term `pre-
     existing business relationship' means a relationship between 
     a person, or a person's licensed agent, and a consumer, based 
     on--
       ``(A) a financial contract between a person and a consumer 
     which is in force;
       ``(B) the purchase, rental, or lease by the consumer of 
     that person's goods or services, or a financial transaction 
     (including holding an active account or a policy in force or 
     having another continuing relationship) between the consumer 
     and that person during the 18-month period immediately 
     preceding the date on which the consumer is sent a 
     solicitation covered by this section;
       ``(C) 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 
     is sent a solicitation covered by this section; or
       ``(D) any other pre-existing customer relationship defined 
     in the regulations implementing this section.
       ``(2) Solicitation.--The term `solicitation' means the 
     marketing of a product or service initiated by a person to a 
     particular consumer that is based on an exchange of 
     information described in subsection (a), and is intended to 
     encourage the consumer to purchase such product or service, 
     but does not include communications that are directed at the 
     general public or determined not to be a solicitation by the 
     regulations prescribed under this section.''.
       (b) Rulemaking Required.--
       (1) In general.--The Federal banking agencies, the National 
     Credit Union Administration, and the Commission, with respect 
     to the entities that are subject to their respective 
     enforcement authority under section 621 of the Fair Credit 
     Reporting Act and the Securities and Exchange Commission, and 
     in coordination as described in paragraph (2), shall 
     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, each agency referred to in paragraph (1) 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;
       (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; and
       (C) ensure that notices and disclosures may be coordinated 
     and consolidated, as provided in subsection (b) of that 
     section 624.
       (4) Timing.--Regulations required by this subsection 
     shall--
       (A) be issued in final form not later than 9 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.
       (c) Technical and Conforming Amendments.--
       (1) Definitions.--Section 603(d)(2)(A) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681(d)(2)(A)) is amended by 
     inserting ``subject to section 624,'' after ``(A)''.
       (2) Relation to state laws.--Section 625(b)(1) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681t(b)(1)), as so 
     designated by subsection (a) of this section, is amended--
       (A) by striking ``or'' after the semicolon at the end of 
     subparagraph (E); and
       (B) by adding at the end the following new subparagraph:
       ``(H) section 624, relating to the exchange and use of 
     information to make a solicitation for marketing purposes; 
     or''.
       (3) Cross reference correction.--Section 627(d) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681v(d)), as so designated 
     by subsection (a) of this section, is amended by striking 
     ``section 625'' and inserting ``section 626''.
       (4) Table of sections.--The table of sections for title VI 
     of the Consumer Credit Protection Act (15 U.S.C. 1601 et 
     seq.) is amended by striking the items relating to sections 
     624 through 626 and inserting the following:

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

       (e) Studies of Information Sharing Practices.--
       (1) In general.--The Federal banking agencies, the National 
     Credit Union Administration, and the 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;
       (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 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 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 
     consumer reports for such decisions.

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

       (a) Study Required.--The Commission and the Board, in 
     consultation with the Office of Fair Housing and Equal 
     Opportunity of the Department of Housing and Urban 
     Development, 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 statistical relationship, utilizing a multivariate 
     analysis that controls for prohibited factors under the Equal 
     Credit Opportunity Act and other known risk factors, between 
     credit scores and credit-based insurance scores and the 
     quantifiable risks and actual losses experienced by 
     businesses;
       (3) the extent to which, if any, the use of credit scoring 
     models, credit scores, and credit-based insurance scores 
     impact on the availability and affordability of credit and 
     insurance to the extent information is currently available or 
     is available through proxies, by geography, income, 
     ethnicity, race, color, religion, national origin, age, sex, 
     marital status, and creed, including the extent to which the 
     consideration or lack of consideration of certain factors by 
     credit scoring systems could result in negative or 
     differential treatment of protected classes under the Equal 
     Credit Opportunity Act, and the extent to which, if any, the 
     use of underwriting systems relying on these models could 
     achieve comparable results through the use of factors with 
     less negative impact; 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.
       (b) Public Participation.--The Commission shall seek public 
     input about the prescribed methodology and research design of 
     the study described in subsection (a), including from 
     relevant Federal regulators, State insurance regulators, 
     community, civil rights, consumer, and housing groups.
       (c) Report Required.--
       (1) In general.--Before the end of the 24-month period 
     beginning on the date of enactment of this Act, the 
     Commission shall submit a detailed report on the study 
     conducted pursuant to subsection (a) to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate.

[[Page H12207]]

       (2) Contents of report.--The report submitted under 
     paragraph (1) shall include the findings and conclusions of 
     the Commission, recommendations to address specific areas of 
     concerns addressed in the study, and recommendations for 
     legislative or administrative action that the Commission may 
     determine to be necessary to ensure that credit and credit-
     based insurance scores are used appropriately and fairly to 
     avoid negative effects.

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

       (a) In General.--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:

     ``Sec. 628. Disposal of records

       ``(a) Regulations.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Federal banking agencies, the 
     National Credit Union Administration, and the Commission with 
     respect to the entities that are subject to their respective 
     enforcement authority under section 621, and the Securities 
     and Exchange Commission, and in coordination as described in 
     paragraph (2), 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) Coordination.--Each agency required to prescribe 
     regulations under paragraph (1) shall--
       ``(A) consult and coordinate with each other such agency so 
     that, to the extent possible, the regulations prescribed by 
     each such agency are consistent and comparable with the 
     regulations by each such other agency; and
       ``(B) ensure that such regulations are consistent with the 
     requirements and regulations issued pursuant to Public Law 
     106-102 and other provisions of Federal law.
       ``(3) Exemption authority.--In issuing regulations under 
     this section, the Federal banking agencies, the National 
     Credit Union Administration, the Commission, and the 
     Securities and Exchange Commission may exempt any person or 
     class of persons from application of those regulations, as 
     such agency deems appropriate to carry out the purpose of 
     this section.
       ``(b) Rule of Construction.--Nothing in this section shall 
     be construed--
       ``(1) to require a person to maintain or destroy any record 
     pertaining to a consumer that is not imposed under other law; 
     or
       ``(2) to alter or affect any requirement imposed under any 
     other provision of law to maintain or destroy such a 
     record.''.
       (b) Clerical Amendment.--The table of sections for title VI 
     of the Consumer Credit Protection Act (15 U.S.C. 1601 et 
     seq.) is amended by inserting after the item relating to 
     section 627, as added by section 214 of this Act, the 
     following:

``628. Disposal of records.
``629. Corporate and technological circumvention prohibited.''.

     SEC. 217. REQUIREMENT TO DISCLOSE COMMUNICATIONS TO A 
                   CONSUMER REPORTING AGENCY.

       (a) In General.--Section 623(a) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681s-2(a)) as amended by this Act, 
     is amended by inserting after paragraph (6), the following 
     new paragraph:
       ``(7) Negative information.--
       ``(A) Notice to consumer required.--
       ``(i) In general.--If any financial institution that 
     extends credit and regularly and in the ordinary course of 
     business furnishes information to a consumer reporting agency 
     described in section 603(p) furnishes negative information to 
     such an agency regarding credit extended to a customer, the 
     financial institution shall provide a notice of such 
     furnishing of negative information, in writing, to the 
     customer.
       ``(ii) Notice effective for subsequent submissions.--After 
     providing such notice, the financial institution may submit 
     additional negative information to a consumer reporting 
     agency described in section 603(p) with respect to the same 
     transaction, extension of credit, account, or customer 
     without providing additional notice to the customer.
       ``(B) Time of notice.--
       ``(i) In general.--The notice required under subparagraph 
     (A) shall be provided to the customer prior to, or no later 
     than 30 days after, furnishing the negative information to a 
     consumer reporting agency described in section 603(p).
       ``(ii) Coordination with new account disclosures.--If the 
     notice is provided to the customer prior to furnishing the 
     negative information to a consumer reporting agency, the 
     notice may not be included in the initial disclosures 
     provided under section 127(a) of the Truth in Lending Act.
       ``(C) Coordination with other disclosures.--The notice 
     required under subparagraph (A)--
       ``(i) may be included on or with any notice of default, any 
     billing statement, or any other materials provided to the 
     customer; and
       ``(ii) must be clear and conspicuous.
       ``(D) Model disclosure.--
       ``(i) Duty of board to prepare.--The Board shall prescribe 
     a brief model disclosure a financial institution may use to 
     comply with subparagraph (A), which shall not exceed 30 
     words.
       ``(ii) Use of model not required.--No provision of this 
     paragraph shall be construed as requiring a financial 
     institution to use any such model form prescribed by the 
     Board.
       ``(iii) Compliance using model.--A financial institution 
     shall be deemed to be in compliance with subparagraph (A) if 
     the financial institution uses any such model form prescribed 
     by the Board, or the financial institution uses any such 
     model form and rearranges its format.
       ``(E) Use of notice without submitting negative 
     information.--No provision of this paragraph shall be 
     construed as requiring a financial institution that has 
     provided a customer with a notice described in subparagraph 
     (A) to furnish negative information about the customer to a 
     consumer reporting agency.
       ``(F) Safe harbor.--A financial institution shall not be 
     liable for failure to perform the duties required by this 
     paragraph if, at the time of the failure, the financial 
     institution maintained reasonable policies and procedures to 
     comply with this paragraph or the financial institution 
     reasonably believed that the institution is prohibited, by 
     law, from contacting the consumer.
       ``(G) Definitions.--For purposes of this paragraph, the 
     following definitions shall apply:
       ``(i) Negative information.--The term `negative 
     information' means information concerning a customer's 
     delinquencies, late payments, insolvency, or any form of 
     default.
       ``(ii) Customer; financial institution.--The terms 
     `customer' and `financial institution' have the same meanings 
     as in section 509 Public Law 106-102.''.
       (b) Model Disclosure Form.--Before the end of the 6-month 
     period beginning on the date of enactment of this Act, the 
     Board shall adopt the model disclosure required under the 
     amendment made by subsection (a) after notice duly given in 
     the Federal Register and an opportunity for public comment in 
     accordance with section 553 of title 5, United States Code.
    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:
       ``(h) Duties of Users in Certain Credit Transactions.--
       ``(1) In general.--Subject to rules prescribed as provided 
     in paragraph (6), if any person uses a consumer report in 
     connection with an application for, or 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 an oral, written, or 
     electronic notice to the consumer in the form and manner 
     required by regulations prescribed in accordance with this 
     subsection.
       ``(2) Timing.--The notice required under paragraph (1) may 
     be provided at the time of an application for, or a grant, 
     extension, or other provision of, credit or the time of 
     communication of an approval of an application for, or grant, 
     extension, or other provision of, credit, except as provided 
     in the regulations prescribed under paragraph (6).
       ``(3) 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.
       ``(4) 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.
       ``(5) Content and delivery of notice.--A notice under this 
     subsection shall, at a minimum--
       ``(A) include a statement informing the consumer that the 
     terms offered to the consumer are set based on information 
     from a consumer report;
       ``(B) identify the consumer reporting agency furnishing the 
     report;
       ``(C) include 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) include 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)).
       ``(6) Rulemaking.--
       ``(A) Rules required.--The Commission and the Board shall 
     jointly prescribe rules.
       ``(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;
       ``(iv) a model notice that may be used to comply with this 
     subsection; and
       ``(v) the timing of the notice required under paragraph 
     (1), including the circumstances under which the notice must 
     be provided after the terms offered to the consumer were set 
     based on information from a consumer report.
       ``(7) Compliance.--A person shall not be liable for failure 
     to perform the duties required by this section if, at the 
     time of the failure, the person maintained reasonable 
     policies and procedures to comply with this section.
       ``(8) Enforcement.--
       ``(A) No civil actions.--Sections 616 and 617 shall not 
     apply to any failure by any person to comply with this 
     section.
       ``(B) Administrative enforcement.--This section shall be 
     enforced exclusively under section 621 by the Federal 
     agencies and officials identified in that section.''.

[[Page H12208]]

       (b) Relation to State Laws.--Section 625(b)(1) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681t(b)(1)), as so 
     designated by section 214 of this Act, is amended by adding 
     at the end the following:
       ``(I) section 615(h), relating to the duties of users of 
     consumer reports to provide notice with respect to terms in 
     certain credit transactions;''.

     SEC. 312. PROCEDURES TO ENHANCE THE ACCURACY AND INTEGRITY 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 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 integrity 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 integrity 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 
     assure the accuracy and integrity of information furnished 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) Duty of Furnishers To Provide Accurate Information.--
     Section 623(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 
     1681s-2(a)(1)) is amended--
       (1) in subparagraph (A), by striking ``knows or consciously 
     avoids knowing that the information is inaccurate'' and 
     inserting ``knows or has reasonable cause to believe that the 
     information is inaccurate''; and
       (2) by adding at the end the following:
       ``(D) Definition.--For purposes of subparagraph (A), the 
     term `reasonable cause to believe that the information is 
     inaccurate' means having specific knowledge, other than 
     solely allegations by the consumer, that would cause a 
     reasonable person to have substantial doubts about the 
     accuracy of the information.''.
       (c) Ability of Consumer To Dispute Information Directly 
     With Furnisher.--Section 623(a) of the Fair Credit Reporting 
     Act (15 U.S.C. 1681s-2(a)), as amended by this Act, is 
     amended by adding at the end the following:
       ``(8) Ability of consumer to dispute information directly 
     with furnisher.--
       ``(A) In general.--The Federal banking agencies, the 
     National Credit Union Administration, and the Commission 
     shall jointly prescribe regulations that shall identify the 
     circumstances under which a furnisher shall be required to 
     reinvestigate a dispute concerning the accuracy of 
     information contained in a consumer report on the consumer, 
     based on a direct request of a consumer.
       ``(B) Considerations.--In prescribing regulations under 
     subparagraph (A), the agencies shall weigh--
       ``(i) the benefits to consumers with the costs on 
     furnishers and the credit reporting system;
       ``(ii) the impact on the overall accuracy and integrity of 
     consumer reports of any such requirements;
       ``(iii) whether direct contact by the consumer with the 
     furnisher would likely result in the most expeditious 
     resolution of any such dispute; and
       ``(iv) the potential impact on the credit reporting process 
     if credit repair organizations, as defined in section 403(3), 
     including entities that would be a credit repair 
     organization, but for section 403(3)(B)(i), are able to 
     circumvent the prohibition in subparagraph (G).
       ``(C) Applicability.--Subparagraphs (D) through (G) shall 
     apply in any circumstance identified under the regulations 
     promulgated under subparagraph (A).
       ``(D) Submitting a notice of dispute.--A consumer who seeks 
     to dispute the accuracy of information shall provide a 
     dispute notice directly to such person at the address 
     specified by the person for such notices that--
       ``(i) identifies the specific information that is being 
     disputed;
       ``(ii) explains the basis for the dispute; and
       ``(iii) includes all supporting documentation required by 
     the furnisher to substantiate the basis of the dispute.
       ``(E) Duty of person after receiving notice of dispute.--
     After receiving a notice of dispute from a consumer pursuant 
     to subparagraph (D), the person that provided the information 
     in dispute to a consumer reporting agency shall--
       ``(i) conduct an investigation with respect to the disputed 
     information;
       ``(ii) review all relevant information provided by the 
     consumer with the notice;
       ``(iii) complete such person's investigation of the dispute 
     and report the results of the investigation to the consumer 
     before the expiration of the period under section 611(a)(1) 
     within which a consumer reporting agency would be required to 
     complete its action if the consumer had elected to dispute 
     the information under that section; and
       ``(iv) if the investigation finds that the information 
     reported was inaccurate, promptly notify each consumer 
     reporting agency to which the person furnished the inaccurate 
     information of that determination and provide to the agency 
     any correction to that information that is necessary to make 
     the information provided by the person accurate.
       ``(F) Frivolous or irrelevant dispute.--
       ``(i) In general.--This paragraph shall not apply if the 
     person receiving a notice of a dispute from a consumer 
     reasonably determines that the dispute is frivolous or 
     irrelevant, including--

       ``(I) by reason of the failure of a consumer to provide 
     sufficient information to investigate the disputed 
     information; or
       ``(II) the submission by a consumer of a dispute that is 
     substantially the same as a dispute previously submitted by 
     or for the consumer, either directly to the person or through 
     a consumer reporting agency under subsection (b), with 
     respect to which the person has already performed the 
     person's duties under this paragraph or subsection (b), as 
     applicable.

       ``(ii) Notice of determination.--Upon making any 
     determination under clause (i) that a dispute is frivolous or 
     irrelevant, the person shall notify the consumer of such 
     determination not later than 5 business days after making 
     such determination, by mail or, if authorized by the consumer 
     for that purpose, by any other means available to the person.
       ``(iii) Contents of notice.--A notice under clause (ii) 
     shall include--

       ``(I) the reasons for the determination under clause (i); 
     and
       ``(II) identification of any information required to 
     investigate the disputed information, which may consist of a 
     standardized form describing the general nature of such 
     information.

       ``(G) Exclusion of credit repair organizations.--This 
     paragraph shall not apply if the notice of the dispute is 
     submitted by, is prepared on behalf of the consumer by, or is 
     submitted on a form supplied to the consumer by, a credit 
     repair organization, as defined in section 403(3), or an 
     entity that would be a credit repair organization, but for 
     section 403(3)(B)(i).''.
       (d) 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 to a consumer reporting agency 
     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.''.
       (e) 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, including any 
     regulations issued thereunder;
       ``(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; or
       ``(3) subsection (e) of section 615.
       ``(d) Limitation on Enforcement.--The provisions of law 
     described in paragraphs (1) through (3) of subsection (c) 
     (other than with respect to the exception described in 
     paragraph (2) 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.''.

[[Page H12209]]

       (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 (3) of section 623(c)''; and
       (B) in paragraph (5)--
       (i) in each of subparagraphs (A) and (B), by striking ``of 
     section 623(a)(1)'' each place that term appears and 
     inserting ``described in any of paragraphs (1) through (3) of 
     section 623(c)''; and
       (ii) by amending the paragraph heading to read as follows:
       ``(5) Limitations on state actions for certain 
     violations.--''.
       (f) 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. FTC AND CONSUMER REPORTING AGENCY ACTION CONCERNING 
                   COMPLAINTS.

       (a) In General.--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 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 
     Commission pursuant to its investigative authority under the 
     Federal Trade Commission Act shall not be subject to 
     paragraph (1).
       ``(3) Agency responsibilities.--Each consumer reporting 
     agency described in section 603(p) that receives a complaint 
     transmitted by the 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 Commission may prescribe 
     regulations, as appropriate to implement this subsection.
       ``(5) Annual report.--The 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.''.
       (b) Prompt Investigation of Disputed Consumer 
     Information.--
       (1) Study required.--The Board and the Commission shall 
     jointly study the extent to which, and the manner in which, 
     consumer reporting agencies and furnishers of consumer 
     information to consumer reporting agencies are complying with 
     the procedures, time lines, and requirements under the Fair 
     Credit Reporting Act for the prompt investigation of the 
     disputed accuracy of any consumer information, the 
     completeness of the information provided to consumer 
     reporting agencies, and the prompt correction or deletion, in 
     accordance with such Act, of any inaccurate or incomplete 
     information or information that cannot be verified.
       (2) Report required.--Before the end of the 12-month period 
     beginning on the date of enactment of this Act, the Board and 
     the Commission shall jointly submit a progress report to the 
     Congress on the results of the study required under paragraph 
     (1).
       (3) Considerations.--In preparing the report required under 
     paragraph (2), the Board and the Commission shall consider 
     information relating to complaints compiled by the Commission 
     under section 611(e) of the Fair Credit Reporting Act, as 
     added by this section.
       (4) Recommendations.--The report required under paragraph 
     (2) shall include such recommendations as the Board and the 
     Commission jointly determine to be appropriate for 
     legislative or administrative action, to ensure that--
       (A) consumer disputes with consumer reporting agencies over 
     the accuracy or completeness of information in a consumer's 
     file are promptly and fully investigated and any incorrect, 
     incomplete, or unverifiable information is corrected or 
     deleted immediately thereafter;
       (B) furnishers of information to consumer reporting 
     agencies maintain full and prompt compliance with the duties 
     and responsibilities established under section 623 of the 
     Fair Credit Reporting Act; and
       (C) consumer reporting agencies establish and maintain 
     appropriate internal controls and management review 
     procedures for maintaining full and continuous compliance 
     with the procedures, time lines, and requirements under the 
     Fair Credit Reporting Act for the prompt investigation of the 
     disputed accuracy of any consumer information and the prompt 
     correction or deletion, in accordance with such Act, of any 
     inaccurate or incomplete information or information that 
     cannot be verified.

     SEC. 314. 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(a)(5)(A)) 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 information disputed by a consumer is 
     found to be inaccurate or incomplete or cannot be verified 
     after any reinvestigation under paragraph (1), for purposes 
     of reporting to a consumer reporting agency only, as 
     appropriate, based on the results of the reinvestigation 
     promptly--
       ``(i) modify that item of information;
       ``(ii) delete that item of information; or
       ``(iii) permanently block the reporting of that item of 
     information.''.

     SEC. 315. 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 Commission 
     shall jointly, with respect to the entities that are subject 
     to their respective enforcement authority under section 621, 
     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) 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. 316. NOTICE OF DISPUTE THROUGH RESELLER.

       (a) Requirement for Reinvestigation of Disputed Information 
     Upon Notice From a Reseller.--Section 611(a) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681i(a)(1)(A)) is amended--
       (1) in paragraph (1)(A)--
       (A) by striking ``If the completeness'' and inserting 
     ``Subject to subsection (f), if the completeness'';
       (B) by inserting ``, or indirectly through a reseller,'' 
     after ``notifies the agency directly''; and
       (C) by inserting ``or reseller'' before the period at the 
     end;
       (2) in paragraph (2)(A)--
       (A) by inserting ``or a reseller'' after ``dispute from any 
     consumer''; and
       (B) by inserting ``or reseller'' before the period at the 
     end; and
       (3) in paragraph (2)(B), by inserting ``or the reseller'' 
     after ``from the consumer''.
       (b) Reinvestigation Requirement Applicable to Resellers.--
     Section 611 of the Fair Credit Reporting Act (15 U.S.C. 
     1681i), as amended by this Act, is amended by adding at the 
     end the following:
       ``(f) Reinvestigation Requirement Applicable to 
     Resellers.--
       ``(1) Exemption from general reinvestigation requirement.--
     Except as provided in paragraph (2), a reseller shall be 
     exempt from the requirements of this section.
       ``(2) Action required upon receiving notice of a dispute.--
     If a reseller receives a notice from a consumer of a dispute 
     concerning the completeness or accuracy of any item of 
     information contained in a consumer report on such consumer 
     produced by the reseller, the reseller shall, within 5 
     business days of receiving the notice, and free of charge--
       ``(A) determine whether the item of information is 
     incomplete or inaccurate as a result of an act or omission of 
     the reseller; and
       ``(B) if--
       ``(i) the reseller determines that the item of information 
     is incomplete or inaccurate as a result

[[Page H12210]]

     of an act or omission of the reseller, not later than 20 days 
     after receiving the notice, correct the information in the 
     consumer report or delete it; or
       ``(ii) if the reseller determines that the item of 
     information is not incomplete or inaccurate as a result of an 
     act or omission of the reseller, convey the notice of the 
     dispute, together with all relevant information provided by 
     the consumer, to each consumer reporting agency that provided 
     the reseller with the information that is the subject of the 
     dispute, using an address or a notification mechanism 
     specified by the consumer reporting agency for such notices.
       ``(3) Responsibility of consumer reporting agency to notify 
     consumer through reseller.--Upon the completion of a 
     reinvestigation under this section of a dispute concerning 
     the completeness or accuracy of any information in the file 
     of a consumer by a consumer reporting agency that received 
     notice of the dispute from a reseller under paragraph (2)--
       ``(A) the notice by the consumer reporting agency under 
     paragraph (6), (7), or (8) of subsection (a) shall be 
     provided to the reseller in lieu of the consumer; and
       ``(B) the reseller shall immediately reconvey such notice 
     to the consumer, including any notice of a deletion by 
     telephone in the manner required under paragraph (8)(A).
       ``(4) Reseller reinvestigations.--No provision of this 
     subsection shall be construed as prohibiting a reseller from 
     conducting a reinvestigation of a consumer dispute 
     directly.''.
       (c) Technical and Conforming Amendment.--Section 
     611(a)(2)(B) of the Fair Credit Reporting Act (15 U.S.C. 
     1681i(a)(2)(B)) is amended in the subparagraph heading, by 
     striking ``from consumer''.

     SEC. 317. REASONABLE REINVESTIGATION REQUIRED.

       Section 611(a)(1)(A) of the Fair Credit Reporting Act (15 
     U.S.C. 1681i(a)(1)(A)) is amended by striking ``shall 
     reinvestigate free of charge'' and inserting ``shall, free of 
     charge, conduct a reasonable reinvestigation to determine 
     whether the disputed information is inaccurate''.

     SEC. 318. FTC STUDY OF ISSUES RELATING TO THE FAIR CREDIT 
                   REPORTING ACT.

       (a) Study Required.--
       (1) In general.--The 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 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 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 1 year after the date 
     of enactment of this Act, the chairman of the 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.

     SEC. 319. FTC STUDY OF THE ACCURACY OF CONSUMER REPORTS.

       (a) Study Required.--Until the final report is submitted 
     under subsection (b)(2), the Commission shall conduct an 
     ongoing study of the accuracy and completeness of information 
     contained in consumer reports prepared or maintained by 
     consumer reporting agencies and methods for improving the 
     accuracy and completeness of such information.
       (b) Biennial Reports Required.--
       (1) Interim reports.--The Commission shall submit an 
     interim report to the Congress on the study conducted under 
     subsection (a) at the end of the 1-year period beginning on 
     the date of enactment of this Act and biennially thereafter 
     for 8 years.
       (2) Final report.--The Commission shall submit a final 
     report to the Congress on the study conducted under 
     subsection (a) at the end of the 2-year period beginning on 
     the date on which the final interim report is submitted to 
     the Congress under paragraph (1).
       (3) Contents.--Each report submitted under this subsection 
     shall contain a detailed summary of the findings and 
     conclusions of the Commission with respect to the study 
     required under subsection (a) and such recommendations for 
     legislative and administrative action as the Commission may 
     determine to 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) the information to be furnished pertains solely to 
     transactions, accounts, or balances relating to debts arising 
     from the receipt of medical services, products, or devises, 
     where such information, other than account status or amounts, 
     is restricted or reported using codes that do not identify, 
     or do not provide information sufficient to infer, the 
     specific provider or the nature of such services, products, 
     or devices, as provided in section 605(a)(6).
       ``(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 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 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 (and which shall include 
     permitting actions necessary for administrative verification 
     purposes), 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

[[Page H12211]]

     beginning on the date of enactment of the Fair and Accurate 
     Credit Transactions 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--
       ``(A) medical information;
       ``(B) an individualized list or description based on the 
     payment transactions of the consumer for medical products or 
     services; or
       ``(C) 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'--
       ``(1) means information or data, whether oral or recorded, 
     in any form or medium, created by or derived from a health 
     care provider or the consumer, that relates to--
       ``(A) the past, present, or future physical, mental, or 
     behavioral health or condition of an individual;
       ``(B) the provision of health care to an individual; or
       ``(C) the payment for the provision of health care to an 
     individual.
       ``(2) does not include the age or gender of a consumer, 
     demographic information about the consumer, including a 
     consumer's residence address or e-mail address, or any other 
     information about a consumer that does not relate to the 
     physical, mental, or behavioral health or condition of a 
     consumer, including the existence or value of any insurance 
     policy.''.
       (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) 
     of this section) 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) 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)), as amended by this Act, is amended by adding at the 
     end the following:
       ``(9) 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 
     Commission determines that a person described in paragraph 
     (9) 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 through development of a national strategy to promote 
     financial literacy and education.
       (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 Federal 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 
     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;
       (H) increase awareness of the particular financial needs 
     and financial transactions (such as the sending of 
     remittances) of consumers who are targeted in multilingual 
     financial literacy and education programs and improve the 
     development and distribution of multilingual financial 
     literacy and education materials;
       (I) promote bringing individuals who lack basic banking 
     services into the financial mainstream by opening and 
     maintaining an account with a financial institution; and
       (J) improve financial literacy and education through all 
     other related skills, including personal finance and related 
     economic education,

[[Page H12212]]

     with the primary goal of programs not simply to improve 
     knowledge, but rather to improve consumers' financial choices 
     and outcomes.
       (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, the Strategy for 
     Assuring Financial Empowerment (``SAFE Strategy''), 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) the national strategy for financial literacy and 
     education, as described under subsection (f);
       (B) information concerning the implementation of the duties 
     of the Commission under subsections (a) through (g);
       (C) an assessment of the success of the Commission in 
     implementing the national strategy developed under subsection 
     (f);
       (D) an assessment of the availability, utilization, and 
     impact of Federal financial literacy and education materials;
       (E) 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);
       (F) 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 decisionmaking;
       (G) a brief summary of any hearings conducted by the 
     Commission, including a list of witnesses who testified at 
     such hearings;
       (H) information about the activities of the Commission 
     planned for the next fiscal year;
       (I) 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
       (J) 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 annually provide 
     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.--
       (1) In general.--The Commission shall hold such hearings, 
     sit and act at such times and places, take such testimony, 
     and receive such evidence as the Commission deems appropriate 
     to carry out this title.
       (2) Participation.--In hearings held under this subsection, 
     the Commission shall consider inviting witnesses from, among 
     other groups--
       (A) other Federal Government officials;
       (B) State and local government officials;
       (C) consumer and community groups;
       (D) nonprofit financial literacy and education groups (such 
     as those involved in personal finance and economic 
     education); and
       (E) the financial services industry.
       (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.
       (d) Multilingual.--The Commission may take any action to 
     develop and promote financial literacy and education 
     materials in languages other than English, as the Commission 
     deems appropriate, including for the website established 
     under section 514(b), at the toll-free number established 
     under section 514(c), and in the materials developed and 
     disseminated under section 514(d).

     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. STUDIES BY THE COMPTROLLER GENERAL.

       (a) Effectiveness Study.--Not later than 3 years after the 
     date of enactment of this Act, the Comptroller General of the 
     United States shall submit a report to Congress assessing the 
     effectiveness of the Commission in promoting financial 
     literacy and education.
       (b) Study and Report on the Need and Means for Improving 
     Financial Literacy Among Consumers.--
       (1) Study required.--The Comptroller General of the United 
     States shall conduct a study to assess the extent of 
     consumers' knowledge and awareness of credit reports, credit 
     scores, and the dispute resolution process, and on methods 
     for improving financial literacy among consumers.
       (2) Factors to be included.--The study required under 
     paragraph (1) shall include the following issues:
       (A) The number of consumers who view their credit reports.
       (B) Under what conditions and for what purposes do 
     consumers primarily obtain a copy of their consumer report 
     (such as for the purpose of ensuring the completeness and 
     accuracy of the contents, to protect against fraud, in 
     response to an adverse action based on the report, or in 
     response to suspected identity theft) and approximately what 
     percentage of the total number of consumers who obtain a copy 
     of their consumer report do so for each such primary purpose.
       (C) The extent of consumers' knowledge of the data 
     collection process.
       (D) The extent to which consumers know how to get a copy of 
     a consumer report.
       (E) The extent to which consumers know and understand the 
     factors that positively or negatively impact credit scores.
       (3) Report required.--Before the end of the 12-month period 
     beginning on the date of enactment of this Act, the 
     Comptroller General shall submit a report to Congress on the 
     findings and conclusions of the Comptroller General pursuant 
     to the study conducted under this subsection, together with 
     such recommendations for legislative or administrative action 
     as the Comptroller General may determine to be appropriate, 
     including recommendations on methods for improving financial 
     literacy among consumers.

[[Page H12213]]

     SEC. 518. THE NATIONAL PUBLIC SERVICE MULTIMEDIA CAMPAIGN TO 
                   ENHANCE THE STATE OF FINANCIAL LITERACY.

       (a) In General.--The Secretary of the Treasury (in this 
     section referred to as the ``Secretary''), after review of 
     the recommendations of the Commission, as part of the 
     national strategy, shall develop, implement, and conduct a 
     pilot national public service multimedia campaign to enhance 
     the state of financial literacy and education in the United 
     States.
       (b) Program Requirements.--
       (1) Public service campaign.--The Secretary, after review 
     of the recommendations of the Commission, shall select and 
     work with a nonprofit organization or organizations that are 
     especially well-qualified in the distribution of public 
     service campaigns, and have secured private sector funds to 
     produce the pilot national public service multimedia 
     campaign.
       (2) Development of multimedia campaign.--The Secretary, 
     after review of the recommendations of the Commission, shall 
     develop, in consultation with nonprofit, public, or private 
     organizations, especially those that are well qualified by 
     virtue of their experience in the field of financial literacy 
     and education, to develop the financial literacy national 
     public service multimedia campaign.
       (3) Focus of campaign.--The pilot national public service 
     multimedia campaign shall be consistent with the national 
     strategy, and shall promote the toll-free telephone number 
     and the website developed under this title.
       (c) Multilingual.--The Secretary may develop the multimedia 
     campaign in languages other than English, as the Secretary 
     deems appropriate.
       (d) Performance Measures.--The Secretary shall develop 
     measures to evaluate the effectiveness of the pilot national 
     public service multimedia campaign, as measured by improved 
     financial decision making among individuals.
       (e) Report.--For each fiscal year for which there are 
     appropriations pursuant to the authorization in subsection 
     (e), the Secretary shall submit a report to the Committee on 
     Banking, Housing, and Urban Affairs and the Committee on 
     Appropriations of the Senate and the Committee on Financial 
     Services and the Committee on Appropriations of the House of 
     Representatives, describing the status and implementation of 
     the provisions of this section and the state of financial 
     literacy and education in the United States.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary, not to exceed $3,000,000 
     for fiscal years 2004, 2005, and 2006, for the development, 
     production, and distribution of a pilot national public 
     service multimedia campaign under this section.

     SEC. 519. 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--PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS

     SEC. 611. CERTAIN EMPLOYEE INVESTIGATION COMMUNICATIONS 
                   EXCLUDED FROM DEFINITION OF CONSUMER REPORT.

       (a) In General.--Section 603 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681a), as amended by this Act is amended by 
     adding at the end the following:
       ``(x) Exclusion of Certain Communications for Employee 
     Investigations.--
       ``(1) Communications described in this subsection.--A 
     communication is described in this subsection if--
       ``(A) but for subsection (d)(2)(D), the communication would 
     be a consumer report;
       ``(B) the communication is made to an employer in 
     connection with an investigation of--
       ``(i) suspected misconduct relating to employment; or
       ``(ii) compliance with Federal, State, or local laws and 
     regulations, the rules of a self-regulatory organization, or 
     any preexisting written policies of the employer;
       ``(C) the communication is not made for the purpose of 
     investigating a consumer's credit worthiness, credit 
     standing, or credit capacity; and
       ``(D) the communication is not provided to any person 
     except--
       ``(i) to the employer or an agent of the employer;
       ``(ii) to any Federal or State officer, agency, or 
     department, or any officer, agency, or department of a unit 
     of general local government;
       ``(iii) to any self-regulatory organization with regulatory 
     authority over the activities of the employer or employee;
       ``(iv) as otherwise required by law; or
       ``(v) pursuant to section 608.
       ``(2) Subsequent disclosure.--After taking any adverse 
     action based in whole or in part on a communication described 
     in paragraph (1), the employer shall disclose to the consumer 
     a summary containing the nature and substance of the 
     communication upon which the adverse action is based, except 
     that the sources of information acquired solely for use in 
     preparing what would be but for subsection (d)(2)(D) an 
     investigative consumer report need not be disclosed.
       ``(3) Self-regulatory organization defined.--For purposes 
     of this subsection, the term `self-regulatory organization' 
     includes any self-regulatory organization (as defined in 
     section 3(a)(26) of the Securities Exchange Act of 1934), any 
     entity established under title I of the Sarbanes-Oxley Act of 
     2002, any board of trade designated by the Commodity Futures 
     Trading Commission, and any futures association registered 
     with such Commission.''.
       (b) Technical and Conforming Amendment.--Section 
     603(d)(2)(D) of the Fair Credit Reporting Act (15 U.S.C. 
     1681a(d)(2)(D)) is amended by inserting ``or (x)'' after 
     ``subsection (o)''.
                   TITLE VII--RELATION TO STATE LAWS

     SEC. 711. RELATION TO STATE LAWS.

       Section 625 of the Fair Credit Reporting Act (15 U.S.C. 
     1681t), as so designated by section 214 of this Act, is 
     amended--
       (1) in subsection (a), by inserting ``or for the prevention 
     or mitigation of identity theft,'' after ``information on 
     consumers,'';
       (2) in subsection (b), by adding at the end the following:
       ``(5) with respect to the conduct required by the specific 
     provisions of--
       ``(A) section 605(g);
       ``(B) section 605A;
       ``(C) section 605B;
       ``(D) section 609(a)(1)(A);
       ``(E) section 612(a);
       ``(F) subsections (e), (f), and (g) of section 615;
       ``(G) section 621(f);
       ``(H) section 623(a)(6); or
       ``(I) section 628.''; and
       (3) in subsection (d)--
       (A) by striking paragraph (2);
       (B) by striking ``(c)--'' and all that follows through ``do 
     not affect'' and inserting ``(c) do not affect''; and
       (C) by striking ``1996; and'' and inserting ``1996.''.
                       TITLE VIII--MISCELLANEOUS

     SEC. 811. 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.
       And the Senate agreed to the same.

     For consideration of the House bill and the Senate amendment, 
     and modifications committed to conference:
     Michael G. Oxley,
     Doug Bereuter,
     Spencer Bachus,
     Mike Castle,
     Ed Royce,
     Robert W. Ney,
     Sue Kelly,
     Paul Gillmor,
     Steven C. LaTourette,
     Judy Biggert,
     Pete Sessions,
     Barney Frank,
     Paul E. Kanjorski,
     Melvin L. Watt,
     Luis V. Gutierrez,
     Darlene Hooley,
     Dennis Moore,
                                Managers on the Part of the House.

     Richard Shelby,
     Robert F. Bennett,
     Wayne Allard,
     Michael B. Enzi,
     Paul Sarbanes,
     Christopher J. Dodd,
     Tim Johnson,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the House to the bill (H.R. 2622) 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, submit the following joint statement to the House 
     and the Senate in explanation of the effect of the action 
     agreed upon by the managers and recommended in the 
     accompanying conference report:
       The Senate amendment to the text of the bill struck all of 
     the House bill after the enacting clause and inserted a 
     substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The Committee of 
     Conference met on November

[[Page H12214]]

     21, 2003 (the Senate Chairing) and resolved their 
     differences. The differences between the House bill, the 
     Senate amendment, and the substitute agreed to in conference 
     are noted below, except for clerical corrections, conforming 
     changes made necessary by agreements reached by the 
     conferees, and minor drafting and clerical changes.
       The Fair Credit Reporting Act was enacted in 1970, and 
     substantially amended in 1996. The amendments made at that 
     time were necessary to make the law relevant in an 
     information age. Included in the 1996 amendment were a number 
     of provisions that explicitly preempt state laws. These 
     preemptions expire on January 1, 2004.
       Since 1996, the national credit markets have undergone 
     significant change. Most of these changes were the result of 
     technological innovations. Technology has expanded the 
     availability of credit, and permitted instant credit 
     decisions. Mortgage financing that once took weeks now takes 
     hours, and home ownership rates are at historic highs. 
     Consumer credit can be obtained at the point of sale for 
     major items like automobiles. Technology and the prudently-
     regulated free flow of consumer information under the FCRA 
     has made much of this possible. We live in a mobile society 
     in which 40 million Americans move annually. The FCRA permits 
     consumers to transport their credit with them wherever they 
     go. Both Committees of jurisdiction have developed detailed 
     records regarding the benefits that our national credit 
     reporting system has visited upon consumers of financial 
     products.
       Despite the myriad benefits of technology to the American 
     consumer, there has been one drawback. Namely, the free flow 
     information has enabled the explosive growth of a new crime--
     identity theft. Both Committees developed comprehensive 
     hearing records regarding the growth of this crime, and the 
     havoc it visits upon the lives of its victims. Law 
     enforcement professionals are cognizant of the growth of this 
     crime, and have worked with the affected industries to combat 
     it. While criminal prosecutions and strict fraud detection 
     protocols can curtail identity theft, and punish the 
     wrongdoers, not enough had been done heretofore to aid the 
     real victims of this crime--the consumer whose identity is 
     assumed, and can spend months or years trying to rehabilitate 
     their credit and re-order their affairs.
       The House bill and the Senate amendment contain a number of 
     identical provisions. In other instances, the provisions in 
     the respective bills addressed the same issue in a slightly 
     different manner. Both the House bill and the Senate 
     amendment addressed the provisions of the FCRA that preempted 
     state laws, and are due to expire on January 1, 2004. Both 
     bills addressed identity theft, medical information privacy 
     and promote greater consumer access to their credit reports.
       The House bill, H.R. 2622, and the bill that served as the 
     core of the Senate amendment (S. 1753) are each the result of 
     an extensive deliberative and legislative process with a 
     three-fold purpose: to assist the victims of identity theft; 
     modernize the FCRA and; enhance the national credit reporting 
     system. Readers should refer to the Committee Reports for the 
     respective bills for further elaboration. The conference 
     agreement contains provisions to accomplish these goals. It 
     is the conferees' belief that this legislation will assist 
     the victims of identity theft, and ensure the operational 
     efficiency of our national credit system by creating a number 
     of preemptive national standards.

     For consideration of the House bill and the Senate amendment, 
     and modifications committed to conference:
     Michael G. Oxley,
     Doug Bereuter,
     Spencer Bachus,
     Mike Castle,
     Ed Royce,
     Robert W. Ney,
     Sue Kelly,
     Paul Gillmor
     Steven C. LaTourette,
     Judy Biggert,
     Pete Sessions,
     Barney Frank,
     Paul E. Kanjorski,
     Melvin L. Watt,
     Luis V. Gutierrez,
     Darlene Hooley,
     Dennis Moore,
                                Managers on the Part of the House.

     Richard Shelby,
     Robert F. Bennett,
     Wayne Allard,
     Michael B. Enzi,
     Paul Sarbanes,
     Christopher J. Dodd,
     Tim Johnson,
                               Managers on the Part of the Senate.
  Mr. OXLEY. Mr. Speaker, I move to suspend the rules and agree to the 
conference report on the bill (H.R. 2622) 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.
  The Clerk read the title of the bill.
  (For conference report and statement, see prior proceedings of the 
House of today.)
  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Ohio (Mr. Oxley) and the gentleman from Massachusetts (Mr. Frank) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Ohio (Mr. Oxley).


                             General Leave

  Mr. OXLEY. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on the conference report and insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Ohio?
  There was no objection.
  Mr. OXLEY. Mr. Speaker, I yield myself 6 minutes.
  Mr. Speaker, I am proud to bring before the House today the 
conference report on H.R. 2622, the Fair and Accurate Credit 
Transactions Act of 2003. This is a bipartisan bill that will foster 
economic growth and development throughout this country. When 9/11 hit 
our country, Congress responded quickly with the passage of the USA 
PATRIOT Act and the Terrorism Risk Insurance Act. When corporate 
scandals threatened to undermine the integrity of the stock market, we 
responded with the passage of the Sarbanes-Oxley Act. And today, as the 
laws governing our national credit markets are set to expire, we must 
again respond swiftly and responsibly with the passage of this 
bipartisan solution to keep the American economy stable and growing and 
assure that the American consumer continues to enjoy the benefits of a 
robust national credit granting system.

                              {time}  1800

  One of the hallmarks of the modern U.S. economy is quick and 
convenient access to consumer credit. Though it would seem unimaginable 
a generation ago, consumers can now qualify for a mortgage over the 
telephone, walk into a showroom and finance the purchase of a car in 
one sitting, and get department store credit within minutes. As the 
distinguished Federal Trade Commission chairman Tim Muris has stated, 
the ``miracle of instant credit'' created by our national credit 
reporting system has given American consumers a level of access to 
financial services and products that is unrivaled anywhere in the 
world. The protection and growth of these services, as provided for in 
this legislation, are critical to the success of our economy.
  Since the Fair Credit Reporting Act's uniform national standards were 
established in 1996, we have achieved some of the lowest mortgage rates 
and credit rates on record, with more competition and more offerings 
for consumers than ever before. This has led to the record level of 
credit available today to all Americans, regardless of income level. 
Over the past 30 years, the availability of nonmortgage credit to 
households in the lowest income bracket has increased by nearly 70 
percent, including a nearly threefold increase in the number of low-
income households owning credit cards just in this last decade. The 
increase of available credit, coupled with the declining price of this 
credit, has also fueled the record homeownership levels we are 
experiencing today, again with the largest gains achieved by low- and 
moderate-income groups. These improvements in the credit and mortgage 
systems have saved consumers nearly $100 billion annually, according to 
some estimates.
  In addition to preserving our vital national credit system, this 
legislation is an extremely comprehensive consumer protection bill. The 
protections are designed to meet head-on the growing crime of identity 
theft which has accompanied the expanding credit market in our country. 
The FTC released a study in early September which revealed the damaging 
extent of this crime in our country. Ten million Americans were 
victimized by identity thieves last year alone, costing consumers and 
businesses over $55 billion, not counting the 300 million hours spent 
by victims to try to repair damaged credit records. The financial costs 
are staggering, with over $10,000 stolen in the average fraud.
  The Committee on Financial Services has worked tirelessly to explore 
and find solutions to this destructive crime. Over 100 witnesses have 
come before the committee since last April to discuss the renewal of 
the Fair Credit Reporting Act, and many of them focused their 
statements on the urgent

[[Page H12215]]

need to increase safeguards designed to protect consumers and 
businesses alike from this crime. With the bipartisan support in the 
House, as well as valuable input and assistance from our friends in the 
Senate, we have a bill before us today that empowers both consumers and 
businesses as we attempt to eliminate this terrible crime. Congress 
needs to pass strong, uniform identity theft protection; and it needs 
to do it now.
  This conference report preserves many key elements designed to fight 
identity theft from the bill that passed the House with close to 400 
votes. These strong new identity theft provisions standards established 
by the bill will be national, ensuring uniform protection for consumers 
in all 50 States.
  This legislation includes provisions that allow consumers to place 
fraud alerts, allowing consumers to block information from being given 
to a credit bureau, providing identity theft victims with a summary of 
their rights, giving consumers the right to see their credit scores, 
giving all consumers the right to a free copy of their credit report, 
restricting access to consumers' sensitive health information, 
simplifying the way consumers can limit unsolicited marketing offers, 
ensuring improved accuracy of credit reporting procedures, and 
providing consumers with one-call-for-all protection by requiring 
credit bureaus to share consumer calls on identity theft, including 
requested fraud alert blocking.
  This legislation also provides valuable tools and resources to 
financial institutions to ensure accuracy and prevent identity theft. 
These provisions include requiring creditors to take certain 
precautions before extending credit to consumers who have placed fraud 
alerts in their files; prohibiting merchants from printing more than 
the last five digits of a payment card on an electronic receipt, and 
others.
  Mr. Speaker, this is a rather lengthy and long statement, and I will 
submit this for the Record.
  I want to thank my ranking member, the gentleman from Massachusetts, 
for taking on this challenging and important legislation. Also to the 
chairman of our Subcommittee on Financial Institutions, the gentleman 
from Alabama (Mr. Bachus), who sat through hours of hearings, over 100 
witnesses in eight separate hearings; to Chairman Shelby who chaired 
the conference committee and also, of course, is the chairman of the 
Banking Committee in the Senate, as well as Ranking Member Sarbanes for 
working in good faith on this effort.
  Mr. Speaker, this was indeed truly a bipartisan, bicameral effort. We 
worked very closely with the White House and the Treasury to put 
together this conference report. This is good public policy. It is good 
for the country's economy, maintaining this constant flow of credit 
that we have come to take for granted. This is positive legislation, 
and I urge all Members to give it their strong support.
  This legislation also provides valuable tools and resources to 
financial institutions to ensure accuracy and prevent identity theft. 
These provisions include:
  Requiring creditors to take certain precautions before extending 
credit to consumers who have placed ``fraud alerts'' in their files; 
prohibiting merchants from printing more than the last 5 digits of a 
payment card on an electronic receipt; requiring banks to develop 
policies and procedures to identify potential instances of identity 
theft; and requiring financial institutions to reconcile potentially 
fraudulent consumer address information.
  It is our duty to protect our national credit system and the economic 
growth that this system promotes by continuing to provide Americans 
with the most affordable and accessible credit market in the world 
today. We must ensure that the U.S. remains the engine of growth for 
the global economy.
  I want to thank my ranking member from Massachusetts, Mr. Frank, for 
taking on this challenging and imperative legislative project and for 
engaging all the major stakeholders in crafting a bipartisan piece of 
well balanced, highly effective legislation. I would also like to thank 
my friends from the Senate Banking Committee, Chairman Shelby and 
Ranking Member Sarbanes, for working in good faith to resolve 
differences between the House and Senate products. And finally, a huge 
debt of gratitude is owed by Members of this body to the gentleman from 
Alabama, Spencer Bachus, who wrote the House version of this bill; 
presided over countless hearings in his capacity as Chairman of the 
Financial Institutions and Consumer Credit Subcommittee; and helped 
lead the House conferees to a successful outcome in our negotiations 
with the Senate. Without the gentleman from Alabama, we would not be 
standing on the House floor today about to pass this historic consumer 
protection legislation.
  The final FCRA legislation states that no requirement or prohibition 
may be imposed under the laws of any State with respect to the conduct 
required under the nine specific provisions included in the new 
identity theft preemption provision of the law. Accordingly, States 
cannot act to impose any requirements or prohibitions with respect to 
the conduct addressed by any of these provisions or the conduct 
addressed by any of the federal regulations adopted under these nine 
provisions. All of the rules and requirements governing the conduct of 
any person in these areas are governed solely by federal law and any 
State that attempts to impose requirements or prohibitions in these 
areas would be preempted.
  I should note that the legislation lists the provisions to be 
preempted. However, to the extent such provisions would enjoy 
preemption under another provision in the FCRA, the other provision 
would control.
  One of the central elements of the approach taken by the bill that 
the House passed overwhelmingly last September was to make the new 
fraud prevention and mitigation provisions contained in the legislation 
the new uniform national standards on those subject matters. The bill 
was drafted in this way because identity theft is a national concern, 
not only because of its impact on our system of granting credit, but 
because it knows no boundaries. The consumer victim may be in one 
State, the financial institution victim in another State, and the 
perpetrator may be in a third State. The credit bureaus that receive 
and report information relating to a fraudulent account may be in yet a 
fourth State.
  In drafting the House bill, we were careful to stipulate--and to 
clarify in a colloquy on the House floor among the gentleman from 
Massachusetts, Mr. Frank, the gentleman from Alabama, Mr. Bachus, and 
myself--that the uniform national standards for identity theft were 
limited to the subject matters that the bill's provisions actually 
address, such as fraud alerts, blocking bad credit information, and 
truncating credit card account numbers at the point of sale. Thus, for 
example, this national uniformity would not affect State criminal 
statutes, or State laws governing the public display of social security 
numbers.
  The conference committee further refined this standard, by providing 
that the new uniform national standards on identity theft created by 
this legislation apply with respect to the conduct required by those 
specific provisions.
  I strongly urge my colleagues to vote for this Conference Report.
  Mr. Speaker, I reserve the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Speaker, I am glad to yield 2\1/2\ 
minutes to the gentlewoman from Oregon (Ms. Hooley), a member of this 
committee who really did extraordinarily good work here and who early 
on became our task force head on identity theft, and this bill is 
really path-breaking in what it does for identity theft.
  Ms. HOOLEY of Oregon. Mr. Speaker, I thank my good friend, the 
gentleman from Massachusetts, for yielding me this time.
  During floor debate of the Fair and Accurate Credit Transaction Act 
back in September, I told a story of a constituent who had her purse 
stolen and ended up spending hours trying to clean up her credit files 
as a result. It got so bad, in fact, that the police officer suggested 
it would be easier for her to change her name than to deal with the 
damage caused by the result of a theft. At that time, I continued on to 
say that something is wrong with the law when a law enforcement 
official suggests changing your identity in order to protect yourself 
from identity theft.
  Well, I am ecstatic to report to everyone that after 4 years' 
struggle, the law is changing. Today the House and Senate conferees met 
and approved the Fair and Accurate Credit Transaction Act, a bill that 
will do many things to protect consumers and safeguard our Nation's 
credit system. Above all, however, this legislation will put in place 
landmark protections against identity theft, the fastest-growing crime 
in the United States.
  This legislation has been a long time coming and is the result of a 
lot of hard work by a number of Members of Congress. I would especially 
like to thank the gentleman from Massachusetts (Mr. Frank) and the 
gentleman from Ohio (Mr. Oxley) for all of their incredible work; 
Senator Sarbanes and Senator Shelby for the leadership they have shown 
through a bipartisan conference process; and a special thanks to

[[Page H12216]]

the gentleman from Alabama (Mr. Bachus) and the gentleman from Ohio 
(Mr. LaTourette) for the long hours they put in on this piece of 
legislation. Because of these leaders' work and the incredible staff 
that worked with us, we have a conference report that takes the best 
provisions from the Senate and the best provisions from the House to 
pass this piece of legislation.
  I will share a few of the consumer protections it provides, and I 
will insert the remainder of this list in the Congressional Record.
  First of all, it provides consumers with a free credit report, gives 
consumers the right to see their credit scores, provides consumers with 
broad new medical privacy rights, gives the consumers the ability to 
opt out of information-sharing between affiliated companies for 
marketing purposes, and establishes a financial literacy commission. 
Those are just a few.
  I am proud of how the committee worked together. I think we were the 
poster child of how this process should be run. I am proud of the 
substance of this conference report that is good for consumers and good 
for businesses. I urge all of my colleagues on both sides of the aisle 
to support our Nation's consumers by voting ``yes'' for the conference 
report.
       The agreement reached by conferees today will:
       General Provisions:
       Provide consumers with a free credit report every year from 
     each of the three national credit bureaus, from a single 
     centralized source;
       Give consumers the right to see their credit scores;
       Provide consumers with broad new medical privacy rights;
       Give consumers the ability to opt-out of information 
     sharing between affiliated companies for marketing purposes;
       Establish a financial literacy commission and a national 
     financial literacy campaign;
       Ensure that consumers are notified if merchants are going 
     to report negative information to the credit bureaus about 
     them; and
       Extend the seven expiring provisions of the Fair Credit 
     Reporting Act.
       Identify Theft Provisions:
       Allow consumers to place ``fraud alerts'' in their credit 
     reports to prevent identify thieves from opening accounts in 
     their names; including special provisions to protect active 
     duty military personnel;
       Require creditors to take certain precautions before 
     extending credit to consumers who have placed ``fraud 
     alerts'' in their files;
       Allow consumers to block information from being given to a 
     credit bureau and from being reported by a credit bureau if 
     such information results from identify theft;
       Provide identify theft victims with a summary of their 
     rights;
       Provide consumers with one-call-for-all protection by 
     requiring credit bureaus to share consumer calls on identify 
     theft, including requested fraud alert blocking.
       Prohibiting merchants from printing more than the last 5 
     digits of a payment care on an electronic receipt;
       Require banks to develop policies and procedures to 
     identify potential instances of identify theft;
       Require financial institutions to reconcile potentially 
     fraudulent consumer address information; and
       Require lenders to disclose their contact information on 
     consumer reports.

  Mr. OXLEY. Mr. Speaker, I yield 3 minutes to the distinguished 
gentleman from Alabama (Mr. Bachus), the chairman of the Subcommittee 
on Financial Institutions and Consumer Credit, who has done such a 
wonderful job on this bill.
  Mr. BACHUS. Mr. Speaker, I thank the chairman for yielding me this 
time.
  I am going to limit my time to thanking Members, because this 
legislation I think more than anything is a testimony of what we as 
Members do when we all work in the best interests of the American 
public.
  This bill contains sweeping new protections against identity fraud. 
It also will enable consumers, which make up 70 percent of our economy, 
to have available more credit and more choices. And as important as 
that is, it does a third thing. It has many different tools to ensure 
that our credit information is accurately reported and that our private 
information and confidential information such as medical records are 
not shared.
  At this time, I would like to thank the cosponsors. This bill was 
introduced by me; the gentlewoman from Oregon (Ms. Hooley), whom we 
have heard from; the gentlewoman from Illinois (Mrs. Biggert); and the 
gentleman from Kansas (Mr. Moore). The gentlewoman from Oregon (Ms. 
Hooley), the gentlewoman from Illinois (Mrs. Biggert), and the 
gentleman from Kansas (Mr. Moore) all had significant input into this 
legislation. The gentleman from Ohio (Mr. LaTourette), a lot of the 
fraud provisions were drafted by him or the gentlewoman from Oregon 
(Ms. Hooley). The gentleman from Pennsylvania (Mr. Kanjorski), the 
gentleman from Delaware (Mr. Castle), the gentlewoman from New York 
(Mrs. Maloney), the gentleman from Arizona (Mr. Shadegg), the gentleman 
from Tennessee (Mr. Ford), the gentleman from Ohio (Mr. Tiberi), the 
gentleman from Texas (Mr. Hinojosa), the gentleman from Texas (Mr. 
Hensarling), the gentleman from New York (Mr. Crowley), the gentleman 
from Texas (Mr. Sessions), the gentleman from Arizona (Mr. Ross), the 
gentleman from Utah (Mr. Matheson), the gentleman from Alabama (Mr. 
Davis), the gentleman from Louisiana (Mr. Baker), the gentleman from 
New York (Mr. King), the gentleman from Oklahoma (Mr. Lucas), and the 
gentleman from Kentucky (Mr. Lucas), the gentleman from Ohio (Mr. Ney), 
the gentlewoman from New York (Mrs. Kelly), the gentleman from North 
Carolina (Mr. Jones), the gentleman from New York (Mr. Israel), the 
gentlewoman from Pennsylvania (Ms. Hart), the gentleman from North 
Carolina (Mr. Miller), the gentlewoman from West Virginia (Mrs. 
Capito), the gentlewoman from New York (Mrs. McCarthy), the gentleman 
from South Carolina (Mr. Barrett), the gentleman from Florida (Mr. 
Feeney), and the gentlewoman from Florida (Ms. Harris).
  All of these Members participated in this process, and the bill, 
which was passed almost unanimously by the House, went over to the 
Senate; and I would like to credit the other body for working, I think, 
in a professional manner and improving what we thought was a wonderful 
bill. And then, in conference, I would finally like to salute the 
gentleman from Ohio (Chairman Oxley), first, for giving me the 
opportunity of working on this legislation; and secondly, I would like 
to salute him and the gentleman from Massachusetts (Mr. Frank), our 
conferees, Mr. Sarbanes and Chairman Shelby. All of the people I have 
named deserve particular praise for a wonderful piece of legislation.
  Mr. Speaker, I rise in strong support of the conference report to 
H.R. 2622, the Fair and Accurate Credit Transactions Act (``FACT 
Act''). H.R. 2622 represents the culmination of my efforts, and those 
of my colleagues, to craft legislation to strengthen our economy and to 
provide consumers with meaningful identity theft protections. The FACT 
Act is the bi-partisan product of a thorough review of the Fair Credit 
Reporting Act (``FCRA''), identity theft, and related issues, Indeed, 
the legislation was approved overwhelmingly in the House by a vote of 
392-30 and in the Senate by a vote of 95-2.
  I want to express my deepest sense of gratitude to Chairman Oxley who 
gave me the opportunity to introduce this landmark piece of legislation 
and then skillfully guided it through the legislative process. In my 
career as a legislator, it is only on a rare occasion when you get the 
chance to draft legislation in such a bipartisan and cooperative 
atmosphere. The Chairman deserves a lot of credit for establishing such 
a collegial process, and I think our legislative product is better 
because of his efforts.
  As Chairman of the Subcommittee on Financial Institutions and 
Consumer Credit. I conducted 8 hearings on the FCRA and related issues 
over the past year, receiving testimony from nearly one hundred 
witnesses including consumer groups, businesses, law enforcement, and 
various government regulators. On June 26, 2003, I introduced H.R. 2622 
with Representatives Hooley, Biggert, and Moore. The FACT Act--a 
byproduct of our hearings and bipartisan cooperation--passed its 
version of FCRA legislation--S. 1753--by a vote of 95-2. This week, the 
conference report to H.R. 2622 was approved almost unanimously by the 
conferees from both the House and Senate. H.R. 2622 is supported by a 
broad coalition of interested parties, including large financial 
institutions, community banks, credit unions, retailers as well as the 
Administration.
  H.R. 2622 will benefit consumers and our economy by ensuring the 
continuity of our national uniform credit system. Indeed, our economy 
depends on several national delivery systems--each represented by 
incredible amounts of investment and infrastructure. For example, the 
national interstate highway system and our telecommunications networks 
are all critical to our national economy. Today we can drive from state 
to state without worrying

[[Page H12217]]

about whether a road will come to an abrupt end at the state line. Our 
consumer credit system is similar to these examples--we do not really 
think about it, we just expect that it will work. Although not perfect, 
our consumer credit system makes life better, easier, and cheaper for 
American consumers.
  Just as our highway and telecommunications networks have improved and 
become more efficient over the years, so has our credit system. 
Creditors have always needed to evaluate the likelihood that a borrower 
would repay a loan. As a result of the framework established by the 
FCRA, creditors, no longer need to ``eyeball'' an applicant and review 
application materials for days or weeks. Rather, our national credit 
system has produced a virtually seamless system whereby consumers can 
apply for, and receive a decision on, credit within minutes. The 
national uniform system has also lowered costs and increased choice and 
convenience for American consumers. By far the most striking result of 
our national credit system is the dramatically increased availability 
of credit--or the ``democratization'' of credit. However, this system 
could be put in jeopardy if the state law uniform standards in the FCRA 
were permitted to expire on January 1, 2004. H.R. 2622 would ensure the 
continuity of our national credit system by making these standards 
permanent.
  The conference report also directly addresses the problem of identity 
theft.
  Sec. 151 of the conference report requires that the FTC and the 
federal banking regulators provide identify theft victims with a 
summary of their rights. It is important for the agencies to let 
consumers know that identity thieves target home computers because they 
contain a goldmine of personal financial information about individuals. 
In educating the public about how to avoid becoming a victim of 
identity theft, the FTC and the federal banking regulators should 
inform consumers about the risks associated with having an `always on' 
Internet connection not secured by a firewall, not protecting against 
viruses or other malicious codes, using peer-to-peer file trading 
software that might expose diverse contents of their hard drives 
without their knowledge, or failing to use safe computing practices in 
general.
  Identity theft occurs when a criminal obtains enough information 
about an individual to allow the criminal to ``assume'' that 
individual's identity for nefarious purposes. My Subcommittee heard 
from two identity theft victims. Their stories were truly nightmarish, 
and we need to work to prevent countless others from joining the ranks 
of identity theft victims. Not only does identity theft harm the direct 
victims, but it also has an impact on all consumers. Financial 
institutions lose millions of dollars each year as a result of identity 
theft. This increased cost on financial institutions is absorbed, at 
least in part, through increased costs of financial products and 
services to all consumers.
  H.R. 2622 will also improve consumers' access and understanding of 
their credit information by allowing consumers to request a free credit 
report annually from each credit bureau. In addition, consumers will 
have the opportunity to obtain their credit scores from credit bureaus. 
Transparency in the credit granting and reporting process will increase 
consumers' financial literacy and improve their confidence in the 
financial services system in general.
  I want to commend Chairman Oxley for the tremendous leadership he has 
shown in steering this complex bill through the legislative process. I 
also want to thank the Ranking Member of the Committee, Mr. Frank, for 
his support of this important piece of legislation. In addition, let me 
commend Ms. Hooley, Ms. Biggert, Mr. Moore, Mr. LaTourette and the 
Members of the Financial Services Committee on each of their efforts. I 
also appreciate the efforts of Mr. Sanders, the Ranking Member on my 
subcommittee, for his work on this issue. Lastly, I want to mention my 
appreciation for the input we received from the Administration, 
particularly from Treasury Secretary John Snow and Treasury Assistant 
Secretary for Financial Institutions Wayne Abernathy.
  Let me also take this opportunity to thank the staff members on the 
House Financial Services Committee who worked on this legislation. Both 
Chairman Oxley and Ranking Member Frank are to be commended for 
assembling such a talented group of staff to work on H.R. 2622. On the 
majority side, I would like to thank Bob Foster, Hugh Halpern, Carter 
McDowell, Jim Clinger; Robert Gordon, Charles Symington, Karen Lynch--
who no longer works for the committee but did a lot of work on this 
issue before leaving--and Dina Ellis, my designee on the Committee. I 
would also like to thank Warren Tryon of my staff for his work on this 
issue. On the minority staff, I would like to thank the following staff 
members: Jeanne Roslanowick, Jaime Lizarraga, Ken Swab, Erika Jeffers, 
Dean Sagar and Warren Gunnels.
  In conclusion, I would like to note that I am proud of the work we 
have done in crafting H.R. 2622. This has been, by necessity, a long 
and thorough process. I believe H.R. 2622 presents a solid achievement 
in protecting the security of consumers' personal information, 
enhancing the transparency of the credit reporting process, and 
ensuring continued access to a wide variety of financial products at 
low cost.
  Mr. Speaker, our economy today is important to all of us. That goes 
without saying. But what a lot of people do not realize is that two-
thirds of our economy is consumer spending. That is the driver in our 
economy today. And consumer spending today is contingent upon 
maintaining a national uniform credit reporting system. I urge all of 
my colleagues to support our economy by voting for H.R. 2622.


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (Mr. Thornberry). The Chair would remind all 
Members it is inappropriate to characterize the other body, even in 
positive terms.
  Mr. FRANK of Massachusetts. Mr. Speaker, I yield 2\1/2\ minutes to 
the gentleman from Vermont (Mr. Sanders), the ranking member of the 
subcommittee from which this bill came.
  Mr. SANDERS. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  Mr. Speaker, this bill has a number of important and positive 
provisions. The idea that consumers will receive free credit reports is 
important. The provision strengthening identity theft is also very 
important.
  But basically, the positive provisions in this bill do not outweigh 
the negative. And, in my view, this bill should be defeated. It should 
be defeated because it preempts States throughout this country from 
going forward with stronger consumer protections. And to my mind, 
States, in fact, are the laboratories of democracy; and it is a bad 
idea, especially from our conservative friends, who year after year 
have told us how bad it was for the Federal Government to have all this 
power, to now give power to the Federal Government and tell the State 
of Vermont, the State of California, that if you have specific needs 
dealing with consumer issues, you may not go forward. That is wrong. 
And for that reason alone, this legislation should be defeated, sent 
back, and strengthened in terms of consumer needs.
  I would point out that virtually every consumer organization in 
America, the Consumer Federation of America, U.S. Public Interest 
Research Group, et cetera, oppose the preemption aspects of this 
legislation.
  Second of all, Mr. Speaker, one of the great rip-offs that is taking 
place in America now deals with credit cards which, at a time of very, 
very low interest rates, are charging people up to 25 or 29 percent 
interest. And one way they do it, Mr. Speaker, is they send out notices 
and they say, come in and sign up: zero interest rate. What they forget 
to tell the consumer is that for any reason whatsoever, through a bait-
and-switch scam, they can raise interest rates. So 5 years before, you 
were late on a student loan, you were late on an automobile payment, 
suddenly, you are going to be paying 15, 20 percent interest, and you 
do not know it.
  This legislation rejected any effort to protect consumers in that 
way, not only outlawing this bait-and-switch scam, but even preventing 
strong disclosure. This legislation should be defeated, sent back, and 
improved.

                              {time}  1815

  Mr. OXLEY. Mr. Speaker, I yield 2 minutes to the gentlewoman from New 
York (Mrs. Kelly), the chairwoman of the Subcommittee on Oversight and 
Investigations.
  (Mrs. KELLY asked and was given permission to revise and extend her 
remarks.)
  Mrs. KELLY. Mr. Speaker, it happens I do not agree with the previous 
speaker. I rise in strong support of the conference report before us. I 
would like to commend the gentleman from Ohio (Chairman Oxley) and the 
gentleman from Massachusetts (Ranking Member Frank) and their 
counterparts in the Senate for moving this legislation with great 
thoroughness, deliberation, and really in a strong spirit of 
bipartisanship.
  At the heart of the legislation is the permanent reauthorization of 
the Fair Credit Reporting Act. It has provided a national uniform 
credit reporting system that has effectively lowered the cost of 
credit. And it has increased the choice and convenience for millions of 
Americans across the country.

[[Page H12218]]

  The FCRA has helped to address other vital security issues such as 
combating identity theft and blocking terrorist financing under the 
U.S.A. Patriot Act, both issues that I have held hearings on in my 
subcommittee.
  Combating identity theft and drying up terrorist financing requires a 
collaborative effort of law enforcement and regulatory agencies, 
consumers, and financial institutions, all with access to appropriate 
information.
  We have also made some other important improvements to the FCRA in 
order to protect the sanctity of privacy for the American people 
throughout the credit granting process. I believe that one of the most 
important pieces of that is medical information. The medical 
information of consumers should be kept private. It does not need to be 
shared or be distributed by creditors or listed on credit reports.
  Individuals should know that their personal medical information 
belongs to them and it is not released for any other purposes, whether 
it is for the credit-granting process or employee background checks. 
And we have done that with our legislation by coding the information.
  I would like to thank the gentleman from Arkansas (Mr. Ross) and the 
gentleman from North Carolina (Mr. Watt) for working with me on this 
amendment that will protect medical information of individuals without 
disrupting the access to low-cost credit and the security of 
information.
  By allowing consumers to benefit from reporting the financial aspects 
of their transactions to credit bureaus while maintaining the sanctity 
of their medical privacy, this legislation is a real win for all 
Americans.
  Finally, I am pleased we were able to include a new title in the 
legislation, which creates a Commission on Financial Literacy and 
Education, or the SAFE Act. As a result of that strategy, we will have 
a clear vision of the future financial literacy that will be the 
benefit of all Americans.
  Mr. Speaker, I strongly support this legislation.
  Mr. Speaker, I rise in strong support of the Conference Report before 
us.
  I would like to commend Chairman Oxley and Ranking Member Frank--and 
their counterparts in the Senate--for moving this legislation with 
great thoroughness and deliberation and in the spirit of 
bipartisanship.
  The legislation, ``The FACT Act'', is the result of a dozen hearings, 
one hundred witnesses, and months of deliberations by my colleagues on 
both sides of the aisle, and both sides of the Capitol.
  At the heart of the legislation is the permanent reauthorization of 
the Fair Credit Reporting Act, or FCRA. FCRA has provided a national 
uniform credit reporting system that has effectively lowered the cost 
of credit, and increased choice and convenience for millions of 
Americans across the country.
  As a conferee on this report, I can tell you that we worked with many 
diverse interests before we reached a unified, solid product. And in 
this product, we have built on the framework of FCRA to ensure that the 
legislation continues to lower the cost of credit and help fuel our 
economy--while also creating new opportunities for populations who have 
never had access. That's why this legislation has overwhelmingly 
bipartisan support.
  FCRA has also helped address other vital security issues, such as 
combating identity theft and blocking of terrorist financing under the 
USA PATRIOT Act--both issues which I have held numerous hearings on in 
my Oversight Subcommittee. Combating identity theft and drying up 
terrorist financing requires the collaborative effort of law 
enforcement and regulatory agencies, consumers and financial 
institutions--all with access to appropriate information.
  I am extremely pleased that this conference report addresses these 
important issues, and improves our ability to combat identity theft and 
help law enforcement officials track down illicit money. The 
information-sharing under this legislation is essential to protecting 
the American people by detecting suspicious activity and weeding out 
wrongdoers.
  The national uniform standards under FCRA have also facilitated a 
financial institution's ability to utilize additional authentications 
and identity verifications to protect consumer security. And the 
increased protections incorporated in this legislation are critically 
important in enabling victims to correct the damage to their credit 
histories created by identity thieves.
  This legislation will further help law enforcement combat financial 
fraud and track down criminals and terrorists. And it adds new 
protections that are important to achieving these goals.
  We have also made other important improvements to FCRA in order to 
protect the sanctity of privacy for the American people throughout the 
credit-granting process.
  I believe the medical information of consumers should be kept 
private, and it does not need to be shared or distributed by creditors 
or listed on credit reports. Individuals should know that their 
personal medical information belongs to them and is not released for 
other purposes, whether it is for the credit granting process or 
employee background checks. And we have done this in our legislation by 
coding this information.
  I would like to thank Reps. Ross and Watt for working with me on an 
amendment that will protect the medical information of individuals 
without disrupting access to low cost credit and the security of 
information.
  By allowing consumers to benefit from reporting the financial aspects 
of their transactions to credit bureaus while maintaining the sanctity 
of their medical privacy, this legislation is a real win for all 
Americans.
  Finally, I am pleased that we were able to include a new title in the 
legislation, which creates a Commission on Financial Literacy and 
Education to improve the financial literacy of millions of Americans of 
all ages.
  At the crux of this language is the creation of the first ever 
national strategy for financial literacy--which will facilitate new 
public, private and nonprofit partnerships to help educate all 
Americans in financial literacy. The national strategy, and its 
subsequent report to Congress, will be known as ``The Strategy for 
Assuring Financial Empowerment'' or ``SAFE strategy'', based on 
legislation that I introduced--H.R. 3520, ``The SAFE Act''.
  As as result, the ``SAFE strategy'' will provide a clear vision for 
the future of financial literacy. The vision will provide a systematic 
approach to identify effective ways to increase the general education 
level of current, and future, consumers of financial services and 
products. The Commission and the ``SAFE strategy'' will be goal-
oriented and subject to reviews by Congress through annual testimony.
  Mr. Speaker, I strongly support this legislation that is crucial to 
the economy and the security of the American people.
  I thank you for addressing these important issues and urge my 
colleagues to support this conference report.
  Mr. FRANK of Massachusetts. Mr. Speaker, I yield 1\1/2\ minutes to 
the gentleman from Pennsylvania (Mr. Kanjorski), who is the second 
ranking member of the full committee and the ranking member of the 
Subcommittee on Capital Markets, Insurance and Government Sponsored 
Enterprises and who has a major input to this bill.
  (Mr. KANJORSKI asked and was given permission to revise and extend 
his remarks, and include extraneous material.)
  Mr. KANJORSKI. Mr. Speaker, just as an aside, if I may, I urge all my 
colleagues on this side of the aisle and on the other side of the aisle 
to support one of the most bipartisan pieces of legislation. I want to 
congratulate the chairman of the committee, the gentleman from Ohio 
(Mr. Oxley), the ranking member of the committee, the gentleman from 
Massachusetts (Mr. Frank), and the chairman of the subcommittee, the 
gentleman from Alabama (Mr. Bachus), and the ranking member of the 
subcommittee on our side of the aisle for a job well done.
  And the fact that we set a new course of activity here in the House 
as to how this function of legislation should be done from not only the 
subcommittee, the full committee, the House and Senate, and the 
conference committee, but now as they work back today, I urge all my 
colleagues to support the legislation.
  Mr. Speaker, I would like to enter into a colloquy with the gentleman 
from Alabama (Mr. Bachus) on the Federal FTC advertising campaign.
  Section 213 of the bill directs the Federal Trade Commission to 
increase public awareness regarding the availability of consumer rights 
to opt out of receiving prescreened credit offer solicitations. Is that 
his understanding as well?
  I yield to the gentleman from Alabama.
  Mr. BACHUS. Mr. Speaker, it is, yes.
  Mr. KANJORSKI. Mr. Speaker, does the gentleman share with me the 
understanding that the FTC's public awareness campaign is to be 
designed to increase public awareness, not only of the right to opt out 
of receiving prescreened solicitations, but also of the benefits and 
consequences of opting out?
  Mr. BACHUS. Mr. Speaker, yes, I share that understanding. Not only

[[Page H12219]]

should consumers know they can opt out of getting these offers, they 
should also know that opting out or not affects their chances of 
getting additional credit offers with competitive terms.
  Mr. KANJORSKI. Mr. Speaker, and if the FTC's public awareness 
campaign increases their understanding of the opt-out, consumers will 
make more informed better decisions. Does the gentleman agree?
  Mr. BACHUS. Mr. Speaker, yes, I agree.
  Mr. KANJORSKI. Mr. Speaker, I thank the gentleman from Alabama (Mr. 
Bachus).
  Mr. Speaker, I rise in very strong support of the conference report 
for H.R. 2622, the Fair and Accurate Credit Transactions Act.
  The bill before us is an excellent piece of legislation. It advances 
consumer protection. It combats identity theft. And it allows 
businesses to operate efficiently when offering credit.
  Moreover, the bill before us is a model of how the legislative 
process should work on a bipartisan basis. We held numerous hearings on 
the legislation. We deliberated on these matters thoroughly. We worked 
with one another on a bipartisan basis. The results of our efforts 
produced a bill that originally passed the House overwhelmingly.
  If we fail to extend the expiring provisions of the Fair Credit 
Reporting Act before the end of this year, conflicting state laws could 
place financial institutions in a difficult compliance position, and 
the current efficiencies in obtaining credit could significantly 
decrease. We would, moreover, create more difficulties for our already 
struggling economy.
  The Fair Credit Reporting Act and its 1996 amendments, in my view, 
have created a nationwide consumer credit system that works 
increasingly well. This law has expanded access to credit, lowered the 
price of credit, and accelerated decisions to grant credit. One reason 
that the law works so well is the establishment of a uniform system of 
national standards for credit reporting. As my colleagues may recall, 
Mr. Speaker, I strongly supported creating these state preemptions in 
the early 1990s. I also believe that we should extend them now.
  In addition to extending the expiring preemptions of state law, H.R. 
2622 will make a number of important improvements to current law with 
respect to consumer protection. These provisions, among other things, 
will improve the accuracy of and correction process for credit reports, 
and establish strong privacy protections for consumers' sensitive 
medical information.
  Furthermore, identity theft is a growing problem in our country. A 
recent report by the Federal Trade Commission found that 27.3 million 
Americans have been victims of identity theft in the last five years. I 
am therefore particularly pleased that H.R. 2622 includes several 
provisions designed to combat these crimes and aid consumers.
  Before I close, Mr. Speaker, I want to again commend the Ranking 
Member of the Committee [Mr. Frank] for his work leading to a very 
strong bill, as well as the gentlelady from Oregon [Ms. Hooley] for her 
important work on identity theft. As I have already noted, we also 
worked on a bipartisan basis and in a pragmatic way with the Chairman 
of the Committee [Mr. Oxley] and the Chairman of the Subcommittee [Mr. 
Bachus] to produce a very worthwhile legislative product in the House 
and in the conference with the Senate on which I served.
  Mr. Speaker, H.R. 2622 contains many important consumer protection 
provisions in a framework of uniform national standards. It is a good 
bill. I encourage my colleagues to support its passage.
  Mr. OXLEY. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
Illinois (Mrs. Biggert).
  Mrs. BIGGERT. Mr. Speaker, I would like to commend the hard work that 
the gentleman from Ohio (Chairman Oxley) and the gentleman from Alabama 
(Mr. Bachus), subcommittee chairman, the gentleman from Massachusetts 
(Ranking Member Frank), and the committee staff have done on this 
extremely important piece of legislation.
  Mr. Speaker, to its sponsors and its cosponsors, every bill is an 
important bill. But there are few bills that we will take up this 
session or this Congress that are as critically important to our 
economy as reauthorizing and making permanent the expiring protections 
contained in the Fair Credit Reporting Act.
  The FCRA may not be a household word, but it nonetheless touches 
virtually every aspect of our lives and our economy.
  Without this reauthorization, there can be no national credit system, 
without a national credit system there will be less credit, slower 
credit, inaccurate credit, inefficient credit, and in some cases, no 
credit at all. Less, slower, inefficient and no credit will lead 
inevitably to less spending, slower growth, lower incomes, and fewer 
jobs.
  That would be noticed by the American consumer and it would be a 
disaster for the American economy. That is why FCRA is a must-pass bill 
for this session.
  This conference report addresses the challenges and problems created 
by new technologies as well. Chief among these are the provisions 
addressing identity theft. I am particularly pleased that this 
conference report contains language addressing the challenges of 
financial literacy.
  As a member of the Committee on Financial Services and the Committee 
on Education and the Workforce, I have come to recognize the positive 
impact that a marriage of financial literacy and basic economics can 
have on millions of future investors.
  I especially want to thank Senators Enzi and Sarbanes for working 
with me to perfect this language included in this conference report. 
H.R. 2622 is a good bill that provides important new protections for 
consumers and stops identity theft before it happens. I urge my 
colleagues to support this legislation and yield back the balance of my 
time.
  Mr. FRANK of Massachusetts. Mr. Speaker, I yield 1\1/2\ minutes to 
the gentleman from Illinois (Mr. Emanuel), who was very active 
particularly with regard to the medical privacy provision of this bill.
  Mr. EMANUEL. Mr. Speaker, I would like to commend the Members on both 
sides of the aisle who worked in a bipartisan way to draft a good, 
strong bill with new identity theft protections and consumer 
protection. A special thanks to the gentleman from Ohio (Chairman 
Oxley), to the gentleman from Massachusetts (Mr. Frank), and to my 
colleague, the gentleman from California (Mr. Ose) for cosponsoring the 
amendment ensuring that this conference report has landmark provisions 
preventing banks and insurance companies from accessing and using the 
most sensitive private information of a consumer, medical information.
  This medical privacy bill gives consumers a safe harbor they deserve 
by blacking out the use of medical information and making it off limits 
to banks and insurance companies. They cannot access it, period. This 
agreement makes that the law.
  These new protections should go a long way to addressing America's 
concerns that their medical, mental health, or DNA information could be 
shared or used against them by banks and credit bureaus, when they 
apply for a mortgage, rent an apartment, or join a club. No one 
applying for a home should have to worry about a bank using their past 
cancer treatments against them. When this becomes law, they will not 
have to. This is a win for consumers and for the financial services 
industry.
  Mr. OXLEY. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
Florida (Ms. Harris).
  Ms. HARRIS. Mr. Speaker, I want to discuss some of the exciting 
opportunities in the FCRA, specifically the aspects that Florida has 
engaged in. And I would like to enter a colloquy with the gentleman 
from Alabama (Mr. Bachus) to discuss those.
  Mr. Speaker, I would yield to the gentleman from Alabama (Mr. 
Bachus).
  Mr. BACHUS. Mr. Speaker, if the gentlewoman would yield, I would be 
glad to engage in a colloquy. I think what the gentlewoman from Florida 
(Ms. Harris) was inquiring into was that the Florida Banking 
Association has created a system that permits banks to combat identity 
theft, check fraud, and other criminal activity. And as I understand 
it, this system it produces reports that banks use exclusively to fight 
fraud not for the purpose, either in whole or part, of determining an 
individual's eligibility for credit insurance and employment.
  And she has asked me to confirm that information that is provided for 
the exclusive purpose of detecting, preventing, or deterring a 
financial crime identity theft, or the funding of a criminal activity 
does not constitute a consumer report under the Fair Credit Reporting 
Act, even as amended by

[[Page H12220]]

this bill. And my response to that is that is correct. Such information 
was not a consumer report under the Fair Credit Reporting Act as it 
existed before this legislation, nor will it constitute a consumer 
report as amended by this bill.
  Ms. HARRIS. Mr. Speaker, reclaiming my time, I think that many people 
were confused by that, so I really appreciate the clarification that 
this information is not a consumer report under the Fair Credit Act 
neither before it was passed nor after it has been amended. So I really 
appreciate that clarification.
  In fact, I think one of the biggest problems has been that the fraud 
and identity theft has created billions of dollars of losses in the 
U.S. economy and continues to create serious problems for individuals. 
The technology allows criminals to perpetuate this fraud with 
increasing rapidity.
  Financial institutions and law enforcement need to fight the 
increases in fraud and identity theft with technology. So the proposed 
amendment would free the antifraud networks from compliance with 
certain requirements of the Fair Credit Reporting Act. But the 
amendment preserves the consumer protection features in the Fair Credit 
Reporting Act because it requires a notice to consumers and an 
opportunity to respond.
  What is exciting about the Florida bankers is they actually created 
something called Fraud Net in 2000 and it was implemented in 2002. This 
is really sort of a neighborhood watch for bankers, if you will. 
Because banks post alerts when they experience a fraudulent or criminal 
act. It does not deal with individual transactions, opening accounts, 
credit insurance, or employment. Today 14 States are employing the 
specific program, and they expect 10 additional users next year.
  So I thank the gentleman from Alabama (Mr. Bachus) for clarifying.
  Mr. FRANK of Massachusetts. Mr. Speaker, I yield 2 minutes to the 
gentlewoman from Indiana (Ms. Carson), one of our most active and 
energetic members of our committee.
  Ms. CARSON of Indiana. Mr. Speaker, I would like to thank the 
gentleman from Massachusetts (Mr. Frank) and the gentleman from Alabama 
(Mr. Bachus) for the bipartisan spirit to move the bill to the floor.
  Mr. Speaker, the Fair Credit Reporting Act has been crucial to 
extending credit services to underserved populations and in protecting 
consumers from egregious abuses of their financial and personal 
privacy. However, the violations and abuses continue to persist. I have 
assisted a number of constituents who have had credit problems because 
of inaccurate credit reporting. In many instances, people have no idea 
there is a problem until they try to secure a loan or credit.
  What I found especially troubling is larger than expected numbers of 
inaccuracies credit reporting agencies have on consumers. So H.R. 2622 
provides a number of new important consumer protections that will make 
credit reports less frustrating for our consumers. The bill would give 
every person in America the ability to consider request an annual free 
credit report.
  I certainly hope every American takes advantage of this. The bill 
deals a tremendous blow to identity thieves whose crimes are rising 
rapidly. Consumers will be able to place fraud alerts on their credit 
report when erroneous information is present. I applaud the leadership 
on this bill, a very needed bill. I encourage the Members to support 
it.
  Mr. OXLEY. Mr. Speaker, I yield 1 minute to the gentleman from Texas 
(Mr. Sessions), a distinguished member of the Committee on Rules, who 
has an important measure in this legislation.
  Mr. SESSIONS. Mr. Speaker, I wish to thank the great chairman of the 
committee, the gentleman from Ohio (Mr. Oxley), and also the gentleman 
from Massachusetts (Mr. Frank) for working with me on an important 
aspect of this Fair Credit Reporting Act.
  I learned, Mr. Speaker, from one of my constituents, Bill Asher back 
in Dallas, Texas, during a town hall meeting about how the Federal 
Trade Commission had applied privacy rules to workplace misconduct 
which meant that in a workplace misconduct circumstance, a person who 
violated another person or who broke the law would actually have to be 
given information about any investigation that might take place against 
that individual under privacy rules and regulations passed by and 
supported by the Federal Trade Commission.

                              {time}  1830

  This Federal Trade Commission now will be reversed; their ruling will 
be reversed by this Fair Credit Reporting Act to make sure that 
misconduct in a workplace, privacy rules do not apply.
  I want to thank the gentleman from Massachusetts (Mr. Frank) for his 
work on this, to ensure this became law, and also our great chairman, 
the gentleman from Alabama (Mr. Bachus), and our great chairman, the 
gentleman from Ohio (Mr. Oxley).
  Mr. FRANK of Massachusetts. Mr. Speaker, I yield 1\1/2\ minutes to 
the gentleman from New York (Mr. Crowley), another member of our 
committee who played a very active role in this.
  Mr. CROWLEY. Mr. Speaker, I would like to call this the comity before 
the storm. It is interesting that we have such comity here in the House 
on the floor dealing with the FACT Act, the Fair Credit Reporting Act. 
This has been a bipartisan piece of legislation.
  It is interesting that we will take up a bill later on this evening 
that will not be as bipartisan, and it certainly will be a more 
partisan bill. I want to thank the gentleman from Ohio (Mr. Oxley) for 
his extension of his arm. I wish the other committee, the Committee on 
Ways and Means, would act in kind; and hopefully that will happen at 
some point.
  I want to thank the ranking member, the gentleman from Massachusetts 
(Mr. Frank), for his work on this bill; the gentleman from Alabama (Mr. 
Bachus), the subcommittee chairman; the ranking member, the gentleman 
from Vermont (Mr. Sanders). Although he has indicated he will not 
support the bill, he certainly acted in a very bipartisan manner in 
helping to craft the legislation.
  This bill represents the best of the House where Democrats, 
Republicans, and Independents work together to craft a bill that 
addresses real problems. But besides good procedure, this bill is also 
good policy.
  It will provide permanency to our Nation's credit grantors to ensure 
the easy and available flow of capital to our constituents. It toughens 
up the law with respect to identity theft and ensures that health 
information is walled off and cannot be used in any credit-making 
decisions, ensuring the integrity of one's health privacy.
  This bill is good for American consumers, and I am pleased to support 
it. I only wish that later on this evening I could also support a 
Medicare bill that was bipartisan as well.
  Mr. OXLEY. Mr. Speaker, I yield 1 minute to the gentleman from Ohio 
(Mr. Gillmor), a valuable member of the committee.
  (Mr. GILLMOR asked and was given permission to revise and extend his 
remarks.)
  Mr. GILLMOR. Mr. Speaker, I thank the gentleman for yielding me time.
  I want to commend both the chairman and the subcommittee chairman, as 
well as the ranking members, for the great job they did on this bill.
  I rise in strong support of the conference report. Passage of this 
legislation is essential to maintaining our current national credit 
reporting system. This legislation maintains the free flow of credit 
reporting information to lenders, financial services providers, while 
it also creates some strong new consumer protections.
  It also includes a provision that I introduced, H.R. 2622, to improve 
the transparency of the credit scoring systems by mandating that if the 
number of credit inquiries on a consumers account negatively affect 
their score, it must be disclosed in their consumer report. This 
ensures a consumer and a prospective lender are fully informed; and 
this important new requirement will allow conscientious consumers to 
shop around for the best loans and rates.
  I urge my colleagues to support the report.
  Mr. FRANK of Massachusetts. Mr. Speaker, I yield 1\1/2\ minutes to 
the gentlewoman from New York (Mrs. Maloney), who played an important 
role in this bill.
  (Mrs. MALONEY asked and was given permission to revise and extend her 
remarks.)

[[Page H12221]]

  Mrs. MALONEY. Mr. Speaker, I thank the gentleman for yielding me 
time. I thank our ranking member and chair and my colleagues.
  I rise in support of this legislation that permanently reauthorizes 
the Fair Credit and Reporting Act, which is extremely important to our 
economy and our national credit system. It also greatly enhances legal 
protections for identity theft victims, protects medical information, 
and provides groundbreaking new limits on the sharing of private 
consumer information among the affiliates of financial services 
companies.
  My constituents need this legislation because New York City claims 
the sad distinction of having the largest number of identity theft 
cases of any city in the entire country. The FACT Act helps break the 
cycle of identity theft with new consumer protections including the 
right to a free annual credit report, a new consumer-initiated fraud 
alert system, new protections that will prevent the recycling or 
repollution of consumer information that is known to be the product of 
fraud, mandatory truncation of credit and debt card numbers to prevent 
theft.
  In addition to identity theft, this bill contains groundbreaking 
limits on how financial services companies can share the sensitive 
consumer financial information among affiliates. These are important 
consumer protections given that some of today's largest financial 
companies have more than 1,000 affiliates. While the identity theft and 
privacy provisions will have the most direct impact on our 
constituents, the FACT Act also ensures the long-term viability of our 
national credit market by extending the FCRA beyond the end of the 
year.
  Today I rise in support of legislation that permanently reauthorizes 
the Fair Credit Reporting Act (FCRA) which is very important to our 
economy and our national credit system. It also greatly enhances legal 
protections for identity theft victims, protects medical information, 
and provides groundbreaking new limits on the sharing of private 
consumer information among the affiliates of financial services 
companies.
  My constituents need this legislation because New York City claims 
the sad distinction of having the largest number of identity theft 
cases of any city in the country.
  In addition, this bill contains groundbreaking limits on how 
financial services companies can share their sensitive customer 
financial information among affiliates.
  These are important consumer protections given that some of today's 
largest financial companies have more than 1,000 affiliates.
  Finally, while the identity theft and privacy provisions will have 
the most direct impact on our constituents, the FACT Act also ensures 
the long-term viability of our national credit market by extending the 
FCRA beyond the end of this year.
  Mr. OXLEY. Mr. Speaker, I yield 1 minute to the gentleman from Ohio 
(Mr. LaTourette), a former prosecutor, who has done such great work, 
particularly in the identity theft part of the legislation.
  (Mr. LaTOURETTE asked and was given permission to revise and extend 
his remarks.)
  Mr. LaTOURETTE. Mr. Speaker, I want to first begin by commending the 
gentleman from Ohio (Mr. Oxley) and the ranking member, the gentleman 
from Massachusetts (Mr. Frank), for their hard work together with the 
conferees. I think the gentlewoman from Illinois (Mrs. Biggert) said 
earlier that this is the most important piece of legislation to come 
out of this committee this year, and I agree.
  I also want to pay special tribute to the gentlewoman from Oregon 
(Ms. Hooley). When we began working in the 106th Congress on identity 
theft, some people had not heard of it. Today, I think every Member has 
a horror story about identity theft. In my district it was Maureen 
Mitchell. She and her husband found out that they owned not one, but 
two, luxury SUVs in the period of a couple of hours in Chicago, 
Illinois, that they had not participated in or purchased.
  I think the conferees have produced a good bill. They have not only 
produced a good bill; they have produced a bill that does not have a 
one-size-fits-all remedy, and it still gives the regulators flexibility 
to deal with the ever-evolving strategies that identify thieves come up 
with.
  Lastly, I want to pay tribute to the gentleman from Alabama (Mr. 
Bachus), the chairman of the subcommittee, because he sat through hours 
and hours of hearings to make sure that we got it right; and, lastly, 
the ranking member, the gentleman from Vermont (Mr. Sanders), I think 
he had some excellent ideas on bait and switch. I hope we revisit that 
in the next Congress.
  Mr. FRANK of Massachusetts. Mr. Speaker, I yield 1\1/2\ minutes to 
the gentleman from Texas (Mr. Hinojosa), another active member of our 
committee.
  Mr. HINOJOSA. Mr. Speaker, I rise in strong support of the conference 
report to accompany the Fair and Accurate Transactions Act of 2003. And 
I congratulate the gentleman from Ohio (Mr. Oxley) and the ranking 
member, the gentleman from Massachusetts (Mr. Frank), the subcommittee 
chairman, the gentleman from Alabama (Mr. Bachus), and the ranking 
member, the gentleman from Vermont (Mr. Sanders), and all the committee 
staff for the wonderful work they did in completing this conference 
report.
  This conference report will strengthen the provisions of the Fair 
Credit Reporting Act. I am proud to have been an original co-sponsor of 
this legislation, to have supported it in committee, and to have voted 
in favor of it on the House floor.
  Let me take this opportunity to thank the conferees for including in 
the financial literacy provision of the legislation language that will 
allow the financial literacy commission the bill creates to take any 
action to develop and promote financial literacy and educational 
materials in languages other than English. This will apply to the hot 
line, Web site, and educational materials the commission produces or 
recommends.
  It is imperative that financial literacy materials be created and 
disseminated in languages other than English to recognize the diversity 
of our great Nation. I especially want to thank the ranking member, the 
gentleman from Massachusetts (Mr. Frank), for his assistance with this 
language and Jaime Lizarraga of his staff.
  Rest assured that the Congressional Hispanic Caucus and the Hispanic 
community appreciate your efforts and the language you inserted into 
the conference report.
  Mr. Speaker, I rise in strong support of the conference report to 
accompany The Fair and Accurate Transactions Act of 2003. I 
congratulate Chairman Oxley and Ranking Member Frank, Subcommittee 
Chairman Bachus and Ranking Member Sanders and all the House and Senate 
conferees on completing this conference report.
  This conference report will strengthen the provisions of the Fair 
Credit Reporting Act. I am proud to have been an original cosponsor of 
this legislation, to have supported it in Committee and to have voted 
in favor of it on the House floor.
  I want to read at this time a portion of a letter Federal Reserve 
Board Chairman Alan Greenspan sent to me dated February 28, 2003. 
Chairman Greenspan was responding to a question I submitted to him in 
writing asking what would happen to the U.S. economy if the exceptions 
to the Fair Credit Reporting Act were allowed to expire after January 
1, 2004. In his letter, Chairman Greenspan warned that: ``Limits on the 
flow of information among financial market participants, or increased 
costs resulting form restrictions that differ based on geography, may 
lead to an increase in the price or a reduction in the availability of 
credit, as well as a reduction in the optimal sharing of risk and 
reward.''
  I am very pleased that this conference report heeded Chairman 
Greenspan's warning, and I believe that its passage will help our 
struggling economy to improve.
  Let me take this opportunity to thank the conferees for including in 
the financial literacy provision of the legislation language that will 
allow the Financial Literacy Commission the bill creates to ``take any 
action to develop and promote financial literacy and education 
materials in languages other than English.'' This will apply to the 
hotline, website, and educational materials the Commission produces or 
recommends. It is imperative that financial literacy materials be 
created and disseminated in languages other than English to recognize 
the diversity of our great nation.
  I especially want to thank Ranking Member Frank for his assistance 
with this language and Jaime Lizarraga of his staff. Rest assured that 
the Congressional Hispanic Caucus and the Hispanic community appreciate 
your efforts and the language you inserted into the conference report.
  The SPEAKER pro tempore (Mr. Thornberry). The gentleman from Ohio 
(Mr. Oxley) has 1 minute remaining. The gentleman from Massachusetts 
(Mr. Frank) has 6 minutes remaining.

[[Page H12222]]

  Mr. OXLEY. Mr. Speaker, does the gentleman have any further speakers?
  Mr. FRANK of Massachusetts. Mr. Speaker, I have several.
  Mr. OXLEY. Mr. Speaker, I reserve the balance of my time.
  I have the right to close, is that correct, Mr. Speaker?
  The SPEAKER pro tempore. The gentleman is correct.
  Mr. FRANK of Massachusetts. Mr. Speaker, I yield 1\1/4\ minutes to 
the gentleman from Massachusetts (Mr. Markey), who has been so active 
on the privacy issue.
  Mr. MARKEY. Mr. Speaker, I thank my friend, and I congratulate him 
for all the good things that are in this bill, all the credit report 
and the negative statement issues that are dealt with.
  But there is one concern which I have which is consumers are, by this 
bill, going to see the California privacy law preempted, as they are 
going to see as well other States who want to make stronger privacy 
protection for their constituents something that is part of the law.
  My concern is that increasingly what we see with companies like 
TransUnion and Equifax is that they are sending the records off shore. 
For example, TransUnion, one of the three major credit reporting 
agencies' spokesman said last month, 100 percent of our mail regarding 
customer disputes is going to India at some point. We expect to sign 
that contract by the end of the year.
  My hope is that as the years go by we will be able to return to this 
issue because the globalization of the information marketplace is going 
to make clear that Americans are going to want more protection as their 
information is going to be put in the hands of foreigners with no laws 
on the books or the ability to police them.
  I rise to opposition to this legislation.
  I understand that some good things have been done in this bill, such 
as the provisions granting consumers free access to copies of their 
credit report, notice of negative statements being added to their 
credit reports, or adverse credit decisions being made based on their 
credit report. I support these provisions, and I also support stronger 
protections against identify theft.
  The problem is that consumers are being asked to pay a price for 
these provisions--their privacy. As I read this bill, we are 
permanently pre-empting any stronger state privacy laws, such as the 
California law, in favor of a federal standard that provides consumers 
with only a very narrow ``opt-out'' right to block affiliate sharing of 
the consumer's information for marketing purposes. I do not believe 
that an ``Opt Out'' is appropriate. Companies should have to obtain the 
affirmative consent of the consumer--an ``Opt In'' before they share 
information about their transactions or experiences with the consumer 
with other affiliates or with unaffiliated third parties.
  Moreover, I am concerned that by limiting the ability of a consumer 
to exercise their Opt-Out solely to marketing, this bill allows 
affiliates to share information about the consumers for other purposes 
without any consumer right to say ``No.'' I am also concerned that even 
after a consumer has ``opted out,'' their decision to do so gets 
sunsetted after 5 years and they have to ``opt out'' again. If the 
consumer has said no, that should mean no illness and until the 
consumer says yes.
  I also want to raise a concern about some statements I have seen in 
the press from the credit reporting agencies suggesting that if these 
companies are forced to provide consumers with free credit reports, 
they will accelerate their current efforts to transfer their databases 
and back office operations off-shore.
  TransUnion and Equifax, two out of the three major credit reporting 
agencies already are in the process of offshoring the processing of 
detailed credit files on 220 million U.S. consumers.
  Earlier this month, a TransUnion spokesman said that ``A hundred 
percent of our mail regarding customer disputes is going to go to India 
at some point. We expect to sign that contract by the end of the 
year.''
  Equifax has had a vendor in Jamaica for four years, where Jamacian 
workers handle data entry at the beginning of the reinvestigation 
process for disputed credit reports.

  Experian, the third of the three major credit reporting agencies, is 
considering whether to offshore some of its operations: ``We definitely 
are evaluating every option on the table, and offshoring is one of 
them. I don't want to be quoted as saying we'll never do it.''
  Privacy experts are concerned about offshoring of the Social Security 
numbers, addresses and other personal information contained in credit 
reports:
  ``Consumers should be worried. The infrastructure to protect 
information just isn't there in a lot of these places.'' (Beth Givens, 
director, Privacy Rights Clearing House)
  ``The problem is not that they're in India, the problem is that 
American laws are not going to be enforced in India.'' (Chris 
Hoofnagle, Electronic Privacy Information Center)
  ``If you're an international crime ring, and you want Social Security 
numbers for identity theft, you're going to look at the weakest link, 
and that's quite possibly these overseas companies.'' (Beth Givens)
  In October, a Pakistani woman threatened to post UCSF patient files 
on the Internet, unless she was paid for the medical transcription 
services she had performed. In the email she sent to UCSF, the woman 
wrote: ``Your patient records are out in the open to be exposed, so you 
better track that person and make him pay my dues or otherwise I will 
expose all the voice files and patient records on the Internet.''
  That is the future that we are looking at with the credit reporting 
agencies. Consumers may be able to call up to get a free copy of their 
credit report, but the person on the other end of the line may be in 
Karachi or New Delhi, where U.S. privacy standards do not apply.
  Indeed, this bill may provide Americans with the most expensive 
``free'' credit report they'll ever get. They'll pay with their 
privacy.
  That is why I think that we need to put the consumer back in control 
of their own information. We need an ``opt-in'' not a limited ``opt-
out'', and we need to ensure that American's privacy does not get 
offshored at the same time that their jobs are getting offshored.
  I urge the defeat of this legislation.
  Mr. FRANK of Massachusetts. Mr. Speaker, I yield myself the balance 
of my time.
  Mr. Speaker, I want to begin by saying that if we on the Democratic 
side were in the majority, this would be a different bill. We are not, 
so we have the bill that we have here.
  Given that, given that there are some differences, I must tell you 
that this is a better bill than I had hoped we would see. And I am very 
appreciative of my colleagues on the other side. They did not give in 
on any issues of principle that are important to them. We have on both 
sides of the aisle a strong commitment to making sure that the free-
market system in this country can work.
  These credit allocations have become a very important part of that 
free-mark system. And this bill, I believe, preserves that system, the 
credit allocation system for individuals as well as need be.
  We also, though, have, as we often do with the free market, a 
situation where the market does well what it is supposed to do, but it 
does not do everything. There are areas where we need to step in and 
help the market. What is important is for us to do that in ways that do 
not impinge on the market function.
  I believe that working together we have come closer in doing that in 
this bill than I had thought. I would like if there had been fewer 
preemptions in the field, for instance, of identity theft; but as a 
result of a meeting which we had this morning, I think we agreed to 
preserve the integrity of the identity theft provisions that we have in 
there, to make sure that they can function without interference and 
without distraction, but did not unduly preempt if the States want to 
be additive in other areas. So there is, in fact, room for States to do 
something as long as the scheme that has been set forward in this bill 
is not interfered with, detracted from, and in particular, companies 
are not subjected to conflicting or confusing multiple requirements.
  We have done other things. People, as a result of this, will be able 
to get a lot more information. Until recently, credit and credit 
scoring have been kind of mystical things to a lot of people. 
Consumers, home buyers, automobile buyers, others have found their 
lives affected financially by factors of which they were only dimly 
aware. As a result of several provisions in this bill, the system will 
be allowed to work, but consumers will have a lot more information 
about it. And they will get that information in many cases early enough 
to act on it.
  Frankly, one of the things that some of our friends in the business 
community were skeptical of I think will wind up helping them. A 
requirement that people be notified if something they have either done 
or failed to do will cause them to have a negative comment on the 
credit report, I think that will have an incentivizing effect. I think 
the first time someone is late unneccessarily with a payment for a 
mortgage and is notified that this will

[[Page H12223]]

be on your credit report, you are likely to see much less lateness. We 
also took steps to improve the accuracy of the data.
  The system on the whole works very well, but no system works 
perfectly. I think this credit system was a little bit flawed in that 
it did not adequately give people a chance to correct errors. We do a 
much better job of this. I would have liked there to have been a sunset 
on the preemptions.
  I think this bill benefits from the fact that it was here today. 
Congress did this 7 years ago. There was a sunset. And as a result, we 
are here today doing what everybody agrees is improving the bill. I 
would have liked, and my colleague from Pennsylvania (Mr. Kanjorski) 
offered an amendment to give us a chance to do that again. We lost on 
the floor, and that is the way the votes went. But I do hope and I 
believe that we may very well from experience learn that more has to be 
done or things have to be done differently.

                              {time}  1845

  When this bill was passed in 1996, identity theft was not a big 
issue. The fact that it was sunsetted gave us a chance to deal with 
identity theft I think in a very effective way. This will not be the 
last time that the crooked people in this world will think of a way to 
swindle the great majority of the honest ones.
  So I just want to make it clear that while we will not have this 
automatically coming up, I hope we are all committed, and I believe we 
are, that as new problems come up we will be able to deal with them.
  Given the fact that the majority is the majority, I believe that we 
did a good job, not a perfect one, in adding consumer protections and 
safety factors to this general system of allowing the credit allocation 
to individuals to work, and for that reason, I would urge Members to 
vote for the bill.
  Mr. OXLEY. Mr. Speaker, I yield myself the remaining time.
  First of all, I want to thank the staff. I always tend to forget to 
do that, and we have been through a lot on this bill. This is a 
complicated piece of legislation that got more complicated as we took 
on this whole issue of identity theft, and throughout this process, the 
staff on both sides of the aisle have been just superb, working late 
nights and early mornings to get us where we are today, and I want to 
personally thank them for their efforts. They know who they are, and I 
know who they are and we most appreciate it, and also to the Members, I 
think this is, Mr. Speaker, perhaps a textbook example of how the 
legislative process ought to work in terms of hearings, in terms of 
everybody having an opportunity to have their say, involving Members on 
both sides of the aisle, many of them newer Members, freshmen Members, 
to really get their feet wet on an important piece of legislation that 
we bring to the floor today and this conference report that will close 
it out.
  This is truly a historic day, and I think in the real traditional way 
that we have started in the Committee on Financial Services of turning 
out good legislation in a bipartisan manner, and for that, I am very 
thankful to all concerned.
  Mr. BEREUTER. Mr. Speaker, as a member of the Financial Services 
Committee and a conferee, this member rises today to express his strong 
support for the conference report of H.R. 2622, the Fair and Accurate 
Credit Transactions Act of 2003 (FACT Act). This important legislation 
permanently extends those provisions in the Fair Credit Reporting Act 
(FCRA) which relate to the preemption of State laws--a very necessary 
step in this instance. The current provisions in the FCRA are set to 
expire on December 31, 2003. Thus when this conference report is 
enacted into law, it will continue the nationwide credit system while 
providing important consumer protections.
  This member would like to thank the distinguished gentleman from 
Alabama, Mr. Bachus, the chairman of the House Financial Services 
Subcommittee on Financial Institutions and Consumer Credit on which 
this member serves, for introducing the legislation on which this 
conference report is largely based. Furthermore, this member would like 
to thank both the distinguished gentleman from Ohio, Mr. Oxley, the 
chairman of the House Financial Services Committee, and the 
distinguished gentleman from Massachusetts, Mr. Frank, the ranking 
member of this committee, for their outstanding effort in bringing this 
excellent conference report to the House floor. As was suggested at the 
conclusion of the conference, this may be an instance where most of the 
conferees from both the House and Senate believe the conference report 
is better than either original Chamber's product.
  The FCRA is the Federal law which governs the furnishing of reports 
on the credit worthiness of consumers. This member supports this 
conference report which would permanently extend the FCRA for many 
reasons. However, he would like to focus on the following three 
reasons.
  First, this conference report provides for a free credit report 
annually for consumers. Typically, credit reporting agencies charge 
consumers up to $9 for the disclosure of the information in their 
credit files. Under current law, a consumer may receive a free consumer 
report from a reporting agency only under certain circumstances, such 
as when a consumer receives a notice of an adverse action by a 
reporting agency. The FACT Act would provider a free credit report 
annually for consumers for any reason. This member believes that this 
provision will promote consumer awareness of a person's credit history 
as well as provide an opportunity for the consumer to correct any 
inaccurate information on one's credit report.
  Second, this conference report provides important provisions to curb 
identity theft. To illustrate the need for these provisions, the 
Federal Trade Commission (FTC) released a survey at the beginning of 
September of this year which showed that a staggering 27.3 million 
Americans had been victims of identity theft in the last 5 years, 
including 9.9 million people in the last year alone. This conference 
report, among other things, allows consumers to place ``fraud alerts'' 
in their credit reports to prevent identity thieves from opening 
accounts in their names.
  Lastly, this conference report continues the Federal preemption of 
State laws as it relates to the corporate affiliate sharing of 
financial information. During the consideration of the 1996 amendments 
to the FCRA, this member authored a provision, which was signed into 
law, that required a consumer opt-out when nontransactional information 
is shared among corporate affiliates. Examples of nontransaction 
information include data from a consumer credit report and information 
on an application such as a consumer's income or assets. This provision 
on consumer notice is very important as it was the first consumer ``opt 
out'' on the sharing of financial information that this member is aware 
of that was signed into Federal Law.
  Mr. Speaker, in conclusion, for the reasons stated above and many 
others, this member encourages his colleagues to support the conference 
report of H.R. 2622.
  Mr. CANTOR. Mr. Speaker, I rise today on behalf of the Fair and 
Accurate Credit Transactions Act, H.R. 2622. This sound piece of 
legislation will aid in the prevention of identity theft. Additionally, 
it will guarantee that consumers have access to affordable credit.
  I do have one concern, and I would like to clarify congressional 
intent in regard to this legislation. It is vitally important for 
consumers that the information reported about them to credit bureaus is 
accurate. When errors occur, they must be corrected. The overwhelming 
majority of disputes are properly handled through existing procedures 
as defined in section 611 of the Fair Credit Reporting Act. 
Nevertheless, a very small percentage of unusual disputes are not 
completely resolved through the reinvestigation process. Section 312 of 
the conference report for the bill provides a means by which some of 
these cases could be submitted directly to the furnisher for possible 
resolution.
  I recognize that there are potential risks in the adoption of this 
section. For example, I am very concerned that any mechanism designed 
to address these few cases is not burdensome. If it becomes burdensome, 
furnishers may become discouraged from reporting complete and accurate 
information in the first instance. Additionally, this could lead to 
misuse by credit repair clinics to overwhelm furnishers in an attempt 
to cause them to change accurate information.
  The conference report for H.R. 2622 has charged the relevant agencies 
with issuing rules only after they have determined the benefits of a 
direct resolution process. Congress has provided the agencies with four 
criteria to review in connection with any rulemaking pertaining to the 
direct reinvestigation of consumer disputes with furnishers. This 
criteria must be satisfied before any rules are to be issued.
  I believe it is a positive piece of legislation that will give 
consumers the tools to fight identity theft and continue to access 
affordable credit.
  Mr. Speaker, I urge passage of this legislation.
  The SPEAKER pro tempore (Mr. Thornberry). The question is on the 
motion offered by the gentleman from Ohio (Mr. Oxley) that the House 
suspend the rules and agree to the conference report on the bill, H.R. 
2622.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of

[[Page H12224]]

those present have voted in the affirmative.
  Mr. SANDERS. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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