[Congressional Record Volume 164, Number 39 (Tuesday, March 6, 2018)]
[Senate]
[Pages S1388-S1389]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2067. Ms. WARREN (for herself, Mr. Blumenthal, and Mrs. Shaheen)
submitted an amendment intended to be proposed by her to the bill S.
2155, to promote economic growth, provide tailored regulatory relief,
and enhance consumer protections, and for other purposes; which was
ordered to lie on the table; as follows:
Strike section 301 and insert the following:
SEC. 301. PROTECTING CONSUMERS' CREDIT.
(a) Definition of Credit Freeze.--Section 603(q) of the
Fair Credit Reporting Act (15 U.S.C. 1681a(q)) is amended by
adding at the end the following:
``(6) Credit freeze.--
``(A) In general.--The term `credit freeze' means a
restriction placed at the request of a consumer or a personal
representative of the consumer, on the consumer report of the
consumer, that prohibits a consumer reporting agency from
releasing the consumer report for a purpose relating to the
extension of credit without the express authorization of the
consumer.
``(B) Exception.--A credit freeze shall not apply to the
use of a consumer report by any of the following:
``(i) A person, or the subsidiary, affiliate, agent,
subcontractor, or assignee of the person, with whom the
consumer has, or prior to assignment had, an account,
contract, or debtor-creditor relationship for the purposes of
reviewing the active account or collecting the financial
obligation owed on the account, contract, or debt.
``(ii) A person, or the subsidiary, affiliate, agent,
subcontractor, or assignee of the person, to whom access has
been granted pursuant to a request by the consumer described
under section 605A(i)(1)(B), for purposes of facilitating the
extension of credit or other permissible use.
``(iii) Any person acting pursuant to a court order,
warrant, or subpoena.
``(iv) A Federal, State, or local government, or an agent
or assignee thereof.
``(v) Any person for the sole purpose of providing a credit
monitoring or identity theft protection service to which the
consumer has subscribed.
``(vi) Any person for the purpose of providing a consumer
with a copy of the consumer report or credit score of the
consumer upon request by the consumer.
``(vii) Any person or entity for insurance purposes,
including use in setting or adjusting a rate, adjusting a
claim, or underwriting.
``(viii) Any person acting pursuant to an authorization
from a consumer to use their consumer report for employment
purposes.''.
(b) Enhancement of Fraud Alert Protections.--Section 605A
of the Fair Credit Reporting Act (15 U.S.C. 1681c-1) is
amended--
(1) in subsection (a)--
(A) in the subsection heading, by striking ``One-Call'' and
inserting ``One-Year'';
(B) in paragraph (1)--
(i) in the paragraph heading, by striking ``Initial
alerts'' and inserting ``In general'';
(ii) in the matter preceding subparagraph (A), by inserting
``or harmed by the unauthorized disclosure of the financial
or personally identifiable information of the consumer,''
after ``identity theft,'';
(iii) in subparagraph (A)--
(I) by striking ``90 days'' and inserting ``1 year''; and
(II) by striking ``and'' at the end;
(iv) in subparagraph (B)--
(I) by inserting ``1-year'' before ``fraud alert''; and
(II) by striking the period at the end and inserting ``;
and''; and
(v) by adding at the end the following:
``(C) upon the expiration of the 1-year period described in
subparagraph (A) or a subsequent 1-year period, and in
response to a direct request by the consumer or such
representative, continue the fraud alert for an additional
period of 1 year if the information asserted in this
paragraph remains applicable.''; and
(C) in paragraph (2)--
(i) in the matter preceding subparagraph (A), by inserting
``1-year'' before ``fraud alert''; and
(ii) in subparagraph (B), by striking ``any request
described in subparagraph (A)'' and inserting ``the consumer
reporting agency includes the 1-year fraud alert in the file
of the consumer'';
(2) in subsection (b)--
(A) in the subsection heading, by striking ``Extended'' and
inserting ``Seven-Year'';
(B) in paragraph (1)--
(i) in subparagraph (B)--
(I) by striking ``5-year period beginning on the date of
such request'' and inserting ``the 7-year period described in
subparagraph (A)''; and
(II) by striking ``and'' at the end;
(ii) in subparagraph (C)--
(I) by striking ``extended'' and inserting ``7-year''; and
(II) by striking the period at the end and inserting ``;
and''; and
(iii) by adding at the end the following:
``(D) upon the expiration of the 7-year period described in
subparagraph (A) or a subsequent 7-year period, and in
response to a direct request by the consumer or such
representative, continue the fraud alert for an additional
period of 7 years if the consumer or such representative
submits an updated identity theft report.''; and
(C) in paragraph (2), by amending subparagraph (A) to read
as follows:
``(A) disclose to the consumer that the consumer may
request a free copy of the file of the consumer pursuant to
section 612(d) during each 12-month period beginning on the
date on which the 7-year fraud alert was included in the file
and ending on the date of the last day that the 7-year fraud
alert applies to the file of the consumer; and'';
(3) in subsection (c)--
(A) by redesignating paragraphs (1), (2), and (3), as
subparagraphs (A), (B), and (C), respectively, and adjusting
the margins accordingly;
(B) in the matter preceding subparagraph (A), as so
redesignated, by striking ``Upon the direct request'' and
inserting the following:
[[Page S1389]]
``(1) In general.--Upon the direct request''; and
(C) by adding at the end the following:
``(2) Access to free reports.--If a consumer reporting
agency includes an active duty alert in the file of an active
duty military consumer, the consumer reporting agency shall--
``(A) disclose to the active duty military consumer that
the active duty military consumer may request a free copy of
the file of the active duty military consumer pursuant to
section 612(d), during each 12-month period beginning on the
date on which the activity duty military alert is requested
and ending on the date of the last day that the active duty
alert applies to the file of the active duty military
consumer; and
``(B) not later than 3 business days after the date on
which the active duty military consumer makes a request
described in subparagraph (A), provide to the active duty
military consumer all disclosures required to be made under
section 609, without charge to the active duty military
consumer.'';
(4) by amending subsection (d) to read as follows:
``(d) Procedures.--Each consumer reporting agency described
in section 603(p) shall establish and make available to the
public on the Internet website of the consumer reporting
agency policies and procedures to comply with this section,
including policies and procedures--
``(1) that inform consumers of the availability of 1-year
fraud alerts, 7-year fraud alerts, active duty alerts, and
credit freezes, as applicable;
``(2) that allow consumers to request 1-year fraud alerts,
7-year fraud alerts, and active duty alerts, as applicable,
and to place, temporarily lift, or fully remove a credit
freeze in a simple and easy manner; and
``(3) for asserting in good faith a suspicion that the
consumer has been or is about to become a victim of identity
theft, fraud, or a related crime, or harmed by the
unauthorized disclosure of the financial or personally
identifiable information of the consumer, for a consumer
seeking a 1-year fraud alert or credit freeze.'';
(5) in subsection (e), in the matter preceding paragraph
(1), by inserting ``1-year or 7-year'' before ``fraud
alert'';
(6) in subsection (f), by striking ``or active duty alert''
and inserting ``active duty alert, or credit freeze, as
applicable,'';
(7) in subsection (g)--
(A) by inserting ``or has been harmed by the unauthorized
disclosure of the financial or personally identifiable
information of the consumer,'' after ``identity theft,''; and
(B) by inserting ``or credit freezes'' after ``request
alerts''; and
(8) in subsection (h)--
(A) in paragraph (1)--
(i) in the paragraph heading, by striking ``initial'' and
inserting ``1-year'';
(ii) in subparagraph (A), by striking ``initial'' and
inserting ``1-year''; and
(iii) in subparagraph (B)(i), by striking ``an initial''
and inserting ``a 1-year''; and
(B) in paragraph (2)--
(i) in the paragraph heading, by striking ``extended'' and
inserting ``7-year'';
(ii) in subparagraph (A), in the matter preceding clause
(i), by striking ``extended'' and inserting ``7-year''; and
(iii) in subparagraph (B), by striking ``an extended'' and
inserting ``a 7-year''.
(c) Providing Free Access to Credit Freezes.--Section 605A
of the Fair Credit Reporting Act (15 U.S.C. 1681c-1) is
amended by adding at the end the following:
``(i) Credit Freezes.--
``(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, a consumer reporting agency
that maintains a file on the consumer and has received
appropriate proof of the identity of the requester (as
described in section 1022.123 of title 12, Code of Federal
Regulations, or any successor thereto) shall--
``(A)(i) not later than 1 business day after receiving the
request sent by postal mail, toll-free telephone, or secure
electronic means as established by the agency, place a credit
freeze on the file of the consumer;
``(ii) not later than 5 business days after placing a
credit freeze described in clause (i), provide the consumer
with written confirmation of the credit freeze and a unique
personal identification number or password (other than the
social security number of the consumer) for use to authorize
the release of the file of the consumer for a specific period
of time; and
``(iii) disclose all relevant information to the consumer
relating to the procedures for temporarily lifting and fully
removing a credit freeze, including a statement about the
maximum amount of time given to an agency to conduct those
actions;
``(B) if the consumer provides a correct personal
identification number or password, temporarily lift an
existing credit freeze from the file of the consumer for a
period of time specified by the consumer for a specific user
or category of users, as determined by the consumer--
``(i) not later than 1 business day after receiving the
request by postal mail; or
``(ii) not later than 15 minutes after receiving the
request by toll-free telephone number or secure electronic
means established by the agency, if the request is received
during regular business hours, except if the ability of the
consumer reporting agency to temporarily lift the credit
freeze is prevented by--
``(I) an act of God, including earthquakes, hurricanes,
storms, or similar natural disaster or phenomenon, or fire;
``(II) unauthorized or illegal acts by a third party
including terrorism, sabotage, riot, vandalism, labor strikes
or disputes disrupting operations, or a similar occurrence;
``(III) an operational interruption, including electrical
failure, unanticipated delay in equipment or replacement part
delivery, computer hardware or software failures inhibiting
response time, or a similar disruption;
``(IV) governmental action, including emergency orders or
regulations, judicial or law enforcement action, or a similar
directive;
``(V) regularly scheduled maintenance or updates to the
systems of the consumer reporting agency occurring outside of
normal business hours; or
``(VI) commercially reasonable maintenance of, or repair
to, the systems of the consumer reporting agency that is
unexpected or unscheduled; or
``(C) if the consumer provides a correct personal
identification number or password, fully remove an existing
credit freeze from the file of the consumer not later than 21
business days after receiving the request by postal mail,
toll-free telephone, or secure electronic means established
by the consumer reporting agency.
``(2) No fee.--A consumer reporting agency may not charge a
consumer a fee to place, temporarily lift, or fully remove a
credit freeze.
``(3) Exclusion from third-party lists.--During the period
beginning on the date on which a consumer or a representative
of the consumer requests to place a credit freeze and ending
the date on which the consumer or representative requests to
fully remove a credit freeze, a consumer reporting agency
shall 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 that representative requests that the
exclusion be rescinded before end of the period.''.
(d) Additional Free Consumer Report.--Section 612 of the
Fair Credit Reporting Act (15 U.S.C. 1681j) is amended--
(1) in subsection (f)(1), in the matter preceding
subparagraph (A), by inserting ``or subsection (h)'' after
``through (d)''; and
(2) by adding at the end the following:
``(h) Free Disclosures in Connection With Credit Freeze.--
In addition to the free annual disclosure required under
subsection (a)(1)(A), each consumer reporting agency that
maintains a file on a consumer who requests a credit freeze
under section 605A(i) shall make all disclosures pursuant to
section 609 once during any 12-month period without charge to
the consumer if the consumer makes a request under section
609.''.
(e) Refunds.--
(1) Definitions.--In this section, the terms ``consumer'',
``consumer reporting agency'', and ``credit freeze'' have the
meanings given those terms in section 603 of the Fair Credit
Reporting Act (15 U.S.C. 1681a), as amended by subsection
(a).
(2) Refunds.--With respect to any consumer who requested a
credit freeze from a consumer reporting agency during the
period beginning on September 7, 2017, and ending on the day
before the date of enactment of this Act, the consumer
reporting agency--
(A) shall issue a refund to the consumer for any fees
charged to the consumer relating to the request for a credit
freeze; and
(B) may not impose a fee on the consumer to temporarily
lift or fully remove the credit freeze.
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