[Congressional Record Volume 153, Number 170 (Monday, November 5, 2007)]
[House]
[Pages H12471-H12472]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NATIONAL HEROES CREDIT PROTECTION ACT
Mr. FILNER. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 513) to amend the Servicemembers Civil Relief Act to enhance
the protection of credit ratings of active duty military personnel who
are activated for military service, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 513
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Heroes Credit
Protection Act''.
SEC. 2. PROTECTION OF CREDIT RATINGS OF MEMBERS OF THE
RESERVE COMPONENTS DEPLOYED IN SUPPORT OF
CONTINGENCY OPERATIONS.
(a) In General.--Title II of the Servicemembers Civil
Relief Act (50 U.S.C. App. 521 et seq.) is amended by adding
at the end the following new section:
``SEC. 208. PROTECTION OF CREDIT RATINGS OF MEMBERS OF
RESERVE COMPONENTS DEPLOYED IN SUPPORT OF
CONTINGENCY OPERATIONS.
``(a) Request for Military Service Deployment
Explanation.--At any time during or after serving on active
duty in support of a contingency operation, an eligible
servicemember may request that a consumer reporting agency
include a military service deployment explanation with
respect to a qualifying account in the file of that
servicemember at the consumer reporting agency.
``(b) Responsibilities of Consumer Reporting Agencies.--
Upon receiving a request from an eligible servicemember under
subsection (a), a consumer reporting agency shall--
``(1) include a military service deployment explanation
with respect to a qualifying account in the file of that
servicemember and provide the military service deployment
explanation to each person who requests the credit score or
consumer report of the servicemember;
``(2) develop and maintain procedures for the referral to
other such agencies of any military service deployment
explanation received by the agency; and
``(3) notify the servicemember in writing that the
inclusion of any explanation or notation in the file of the
servicemember could potentially negatively affect the credit
rating of the servicemember and may not mitigate a low credit
score.
``(c) Duty of Reseller to Reconvey Military Service
Deployment Explanation.--A reseller shall include in any
report of the reseller on a servicemember any military
service deployment explanation placed in the file of that
servicemember by another consumer reporting agency pursuant
to this section.
``(d) Acknowledgment of Military Service Deployment
Explanation.--Any prospective user of a consumer credit
report containing a military service deployment explanation
shall acknowledge such military service deployment
explanation.
``(e) Definitions.--For the purposes of this section:
``(1) The term `eligible servicemember' means a member of a
reserve component who serves on active duty outside the
continental United States in support of a contingency
operation under a call or order specifying a period of such
service of not less than 180 days (or who enters such service
under a call or order specifying a period of 180 days or less
and who, without a break in service, receives orders
extending the period of such service to a period of not less
than 180 days).
``(2) The term `military service deployment explanation'
means a code generated by a consumer reporting agency that is
delivered in conjunction with a consumer report or credit
score to a user of the consumer report or credit score to
indicate that the consumer report or credit score of the
consumer was adversely affected during a period in which the
consumer was a servicemember serving on active duty outside
the continental United States in support of a contingency
operation.
``(3) The term `contingency operation' has the meaning
given that term under section 101(a)(13) of title 10, United
States Code.
``(4) The term `active duty' has the meaning given that
term under section 101(d)(1) of title 10, United States Code.
``(5) The term `consumer reporting agency' has the meaning
given that term under section 603 of the Fair Credit
Reporting Act.
``(6) The term `reseller' has the meaning given that term
under section 603 of the Fair Credit Reporting Act.
``(7) The term `qualifying account' means an account that
was opened by a servicemember before the date on which the
servicemember was deployed outside the continental United
States in support of a contingency operation, but only with
respect to obligations incurred before such date.''.
(b) Clerical Amendment.--The table of contents in section
1(b) of such Act is amended by inserting after the item
relating to section 207 the following new item:
``Sec. 208. Protection of credit ratings of certain servicemembers.''.
(c) Military Service Deployment Explanation Not to Affect
Certain Future Transactions.--Section 108 of such Act (50
U.S.C. App. 518) is amended in the matter preceding paragraph
(1), by inserting after ``liability of that servicemember''
the following: ``, or the inclusion of a military service
deployment explanation in a file of the servicemember at a
consumer reporting agency pursuant to section 208,''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California (Mr. Filner) and the gentleman from Florida (Mr. Stearns)
each will control 20 minutes.
The Chair recognizes the gentleman from California.
Mr. FILNER. Mr. Speaker, I yield myself such time as I may consume.
As we approach Veterans Day in another week, it is important that we,
as Members of the House, not just give our speeches and ride in the
parades on Veterans Day but we actually do things that will help our
veterans, say thank you for their service, and make sure they get the
benefits that are due them when they return home, and that they also
avoid pitfalls that come about because they are serving their Nation
abroad. There are many examples of this, and we are going to correct a
few today.
The first and most important, I think, is to assure that when our
service men and women are abroad, when they are in active duty, that
they do not face credit problems as a result of that duty if they miss
some payments on bills back home. Our colleague, Mr. Brady from
Philadelphia, chairman also of our House Administration Committee, has
looked at this problem and has come up with a solution.
Mr. Speaker. I rise in strong support of H.R. 513, as amended.
I would like to thank my distinguished colleague, Congressman Robert
Brady of Pennsylvania, for crafting this important bill to help protect
our Nations veterans. I'd also like to thank the Subcommittee on
Economic Opportunity Chairwoman, Stephanie Herseth Sandlin, and Ranking
Member John Boozman for the strong bipartisan leadership they
demonstrated in working on this legislation.
When called to duty, servicemembers across our Nation leave their
loved ones, school, and work behind.
Unfortunately as we are witnessing today, some of these
servicemembers are returning to letters of delinquency from credit
lenders and credit bureaus due to their extended military service
abroad.
Mr. Speaker, we must honor our servicemembers' sacrifice by providing
them with the resources and financial security needed to protect what
they have left behind, so that they may have the peace of mind that
their financial interests are protected while serving our Nation.
Mr. Speaker, as you know, a credit score impacts all aspects of your
life. It represents you as a consumer and indicates to the potential
lender if you are trustworthy of repaying your debt. It also determines
whether you will qualify for a good interest for a home loan, buying a
car, or even school loans.
H.R. 513, as amended, would protect these men and women while they
are at war, by providing an explanation in their credit report. This
explanation would be generated by a consumer reporting agency, and
delivered in conjunction with a consumer report or credit score.
It will indicate in the consumer report, or credit score, that the
consumer was adversely affected during a period in which the
servicemember was on active duty outside the continental United States
in support of a contingency operation.
[[Page H12472]]
To qualify, a person would have to be a member of the National Guard
or Reserve, have the account open prior to deployment, and served a
specifying period of service of no less than 180 days. By including a
military service deployment explanation, any person who requests the
credit score or consumer report of the servicemember will be informed
of a potential reason of non-payment or missed payments.
Currently, there is no credit protection offered to the men and women
in the National Guard and Reserve.
Furthermore, this legislation alleviates the servicemembers' concerns
over negative financial implications of their deployment.
Regardless of your view on the war, we all stand united in caring for
our veterans. I urge all my colleagues to join me in support of H.R.
513, as amended.
Mr. Speaker, I yield such time as he may consume to the gentleman
from Pennsylvania (Mr. Brady) to explain how this bill will help our
active duty forces when they return home.
(Mr. BRADY of Pennsylvania asked and was given permission to revise
and extend his remarks.)
{time} 1515
Mr. BRADY of Pennsylvania. I thank the gentleman for yielding me
time.
I rise in support of H.R. 513, the National Heroes Credit Protection
Act.
Just after the start of the Iraq war, I met a lady who served in
Operation Desert Storm. This young lady told me that problems in
notifying her creditors of deployment had almost cost her to lose her
home. Her problems are all too common. This simple piece of legislation
was written with those heroes in mind.
H.R. 513 would amend the Servicemembers Civil Relief Act to require
credit reporting agencies, when asked, to include a notation in a
consumer report or credit score for reserved members of the U.S. Armed
Forces when they are called up or deployed. The bill would also require
consumer reporting agencies to refer the explanations to other consumer
reporting agencies.
More than 300,000 guardsmen and reservists have been called up since
September 11. They are doing more missions and activations with fewer
personnel. They shouldn't have to worry about protecting their credit
while they're keeping us safe.
This bill is revenue neutral. CBO estimates that it would have no
significant effect on the Federal budget and minimal costs to the
private sector. My staff have discussed this report with
representatives of the credit and credit reporting agencies. They have
been helpful in suggesting ways to improve the bill's protection for
our troops and support the purpose and intent of the measure.
This legislation protects creditors by continuing to require
repayment of a soldier's debts, but it provides important new
protections for our troops by making it easier for them to take
advantage of rights they already have.
I know that Chairman Filner and Chairwoman Herseth Sandlin have
worked closely with the minority on their committee, and we are happy
to include provisions suggested by the minority. I want to thank them
as well as Ranking Members Buyer and Boozman.
Mr. Speaker, the bill will make a major difference in the lives of
our heroes and their families. I urge all my colleagues to support the
National Heroes Credit Protection Act.
Mr. FILNER. Mr. Speaker, I reserve the balance of my time.
Mr. STEARNS. Mr. Speaker, I think we've talked about this bill, and
it's a very good bill. I thought I might take from my colleagues and
just read the summary of it just to remind ourselves that H.R. 513 is
to amend the Servicemembers Civil Relief Act to enhance the protection
of credit ratings of active duty military personnel who are activated
for military service.
And the question usually comes up on some of these bills, what do
they cost. Mr. Brady, the gentleman from Pennsylvania, talked about
that. So we have a Congressional Budget Office cost estimate that I
would share with my colleagues, and it says, ``The requirements imposed
on credit reporting agencies would be private sector mandates as
defined in the Unfunded Mandates Reform Act, the UMRA. CBO suspects the
cost of the mandates would be minimal and unlikely to exceed the
threshold for private sector mandates established in the UMRA.''
So, I think we have a bill that we can all support. So, obviously on
this side, we do support it.
The bill, as amended, will improve the protections of the
Servicemembers Civil Relief Act by providing the opportunity for
certain servicemembers experiencing financial difficulties, while
deployed, to simply request that their credit record be annotated to
reflect simply that deployment. It also requires the credit industry to
take such deployment into consideration.
This new protection, my colleagues, would cover credit accounts
opened before the servicemember was deployed. While these protections
are important, it is also critical that Members understand that such an
annotation may have adverse effects on their credit rating, despite all
the existing laws prohibiting such actions. Therefore, my colleagues,
the bill also requires the National Credit Bureau to inform applicants
of that potential in writing.
So, Mr. Speaker, I think that, in terms of its strong support for
veterans, and in their case, when they're deployed, I urge support for
the bill.
Mr. Speaker, I reserve the balance of my time.
Mr. FILNER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this war in Iraq has involved our National Guard and
Reserve units to an extent that has never before been the case. And
many of our laws simply do not reflect the new force structure that you
see in Iraq. And that is what we, as a committee, are working to
change. For example, the National Guard and Reserve units, even if they
are in active duty, as they are in Iraq, are not eligible for the same
benefits from the GI Bill as our active duty troops. We are going to
change that. We are going to change a number of things. And I thank Mr.
Brady, the gentleman from Philadelphia, for making sure that the Guard
and Reserve groups have the protections in law that our active duty
troops already have. We must protect their jobs, their credit ratings,
and their quality of life as they are away from home in active duty
supporting our Nation.
The laws have not kept up with this force structure. This is one of
the ways that we're going to change that. So we're going to make sure
that when they come home, they are recognized and not penalized for
their active duty.
Mr. STEARNS. Mr. Speaker, I yield back the balance of my time.
General Leave
Mr. FILNER. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks and
include extraneous material on H.R. 513, as amended.
The SPEAKER pro tempore (Mr. Ruppersberger). Is there objection to
the request of the gentleman from California?
There was no objection.
Mr. FILNER. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from California (Mr. Filner) that the House suspend the rules
and pass the bill, H.R. 513, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. FILNER. 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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