[Congressional Record Volume 166, Number 19 (Wednesday, January 29, 2020)]
[House]
[Pages H653-H697]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                STUDENT BORROWER CREDIT IMPROVEMENT ACT


                             General Leave

  Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days to revise and extend their remarks and include 
extraneous materials on H.R. 3621.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.
  The SPEAKER pro tempore. Pursuant to House Resolution 811 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the state of the Union for the consideration of the bill, H.R. 3621.
  The Chair appoints the gentleman from the Northern Mariana Islands 
(Mr. Sablan) to preside over the Committee of the Whole.

                              {time}  1314


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the state of the Union for the consideration of the bill 
(H.R. 3621) to amend the Fair Credit Reporting Act to remove adverse 
information for certain defaulted or delinquent private education loan 
borrowers who demonstrate a history of loan repayment, and for other 
purposes, with Mr. Sablan in the chair.
  The Clerk read the title of the bill.
  The CHAIR. Pursuant to the rule, the bill is considered read the 
first time.
  General debate shall be confined to the bill and amendments specified 
in

[[Page H654]]

the first section of House Resolution 811 and shall not exceed 1 hour 
equally divided and controlled by the chair and ranking minority member 
of the Committee on Financial Services.
  The gentlewoman from California (Ms. Waters) and the gentleman from 
North Carolina (Mr. McHenry) each will control 30 minutes.
  The Chair recognizes the gentlewoman from California.
  Ms. WATERS. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I rise today in support of H.R. 3621, the Comprehensive 
Credit Reporting Enhancement, Disclosure, Innovation, and Transparency 
Act, legislation sponsored by Representative Ayanna Pressley of 
Massachusetts. This package of bills builds upon reforms that members 
of the Financial Services Committee have been developing for several 
Congresses.
  Mr. Chairman, credit reporting is unlike any other business. 
Consumers are not customers of credit reporting agencies; they are the 
product. Credit reporting agencies package up consumers' data to sell 
to lenders, employers, and other businesses.
  Unfortunately, our system of consumer credit reporting is badly 
broken, and consumers have little recourse. It is typical for credit 
reports to be filled with unacceptable errors that are difficult for 
consumers to correct. A Federal Trade Commission study found that one 
in five consumers have verified errors in their credit reports, and 1 
in 20 consumers have errors so serious that they would be denied credit 
or need to pay more for it. This means about 42 million consumers have 
errors in their credit reports and 10 million have reports that can be 
life-altering.
  Consumers are frustrated with the current system. In 2018, the 
Consumer Financial Protection Bureau received 126,300 consumer 
complaints on credit reporting, which was more than one-third of all 
complaints submitted. The Consumer Financial Protection Bureau received 
more complaints about credit reporting than any other issue.
  This legislative package makes critical reforms to help consumers by 
addressing problems with the credit reporting system.
  The legislation includes H.R. 3642, the Improving Credit Reporting 
for All Consumers Act, a bill sponsored by Representative Alma Adams, 
which would address burdens consumers experience when trying to remove 
errors from their consumer reports, including by providing a new right 
to appeal the results of initial reviews about the accuracy or 
completeness of disputed items on the report.
  The package also includes H.R. 3622, the Restoring Unfairly Impaired 
Credit and Protecting Consumers Act, a bill sponsored by Representative 
Rashida Tlaib. This part of the bill would limit how long adverse 
credit information stays on consumer reports, and it would protect 
consumer victims by removing adverse information relating to predatory, 
discriminatory, or otherwise unlawful loans made by a financial 
institution. It would also prohibit reporting debt relating to 
medically necessary procedures and delay reporting by 1 year for other 
medical debt.
  In addition, the package includes H.R. 3614, the Restricting Use of 
Credit Checks for Employment Decisions Act, a bill sponsored by 
Representative Al Lawson. This part of the bill would prohibit 
employers from using credit reports for employment decisions, except 
when a credit report is otherwise required to conduct a background 
check by Federal, State, or local law or for a national security 
clearance.
  Then there is H.R. 3621, the Student Borrower Credit Improvement Act, 
a bill sponsored by Representative Pressley, which is also included in 
the legislation. This part of the bill would help student borrowers who 
may have been delinquent on paying their private student loans to 
repair their credit after they demonstrate a history of timely loan 
repayments for these loans, similar to how the credit reports of 
borrowers with Federal student loans can be rehabilitated.
  Another key measure included in this package is H.R. 3629, the 
Clarity in Credit Score Formation Act, sponsored by Representative 
Stephen Lynch. This legislation would direct the CFPB to provide 
oversight and set standards for validating the accuracy and predictive 
value of credit score models, and it would promote innovation by 
requiring a study on how the use of nontraditional data might impact 
the availability and affordability of credit for consumers with limited 
or no traditional credit histories.
  Finally, the package includes H.R. 3618, the Free Credit Scores for 
Consumers Act, sponsored by Representative Joyce Beatty, which would 
direct the nationwide CRAs to give consumers free copies of their 
credit scores that are used by creditors in making credit decisions, as 
determined by the CFPB, whenever consumers obtain their free annual 
consumer reports.

  I am pleased that this bill also includes a provision that I have 
worked on with a range of other Members that excludes from credit 
reports any adverse information about a Federal employee and others who 
are affected by a government shutdown.
  Mr. Chairman, I urge all Members to support these commonsense reforms 
to improve the Nation's consumer reporting system and benefit 
hardworking American consumers.
  Mr. Chairman, I reserve the balance of my time.
  Mr. McHENRY. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I rise in opposition to the bill before us. This is a 
Democrat bill under the guise of consumer protection that will destroy 
the accuracy and completeness of consumer credit files. This will lead 
to a weaker financial system, undermining a great deal of safety and 
soundness that we have built up over decades. This will, in essence, 
socialize credit scoring and, therefore, credit allocation.
  Mr. Chairman, this is an election year. I see that, and I see that 
not just in the rhetoric here in the House but in the legislation that 
is before us today.
  This bill will weaken underwriting standards. It will make extending 
credit a riskier and more expensive activity, ultimately impacting both 
the cost and accessibility of credit for all Americans.
  Let me be clear. For more than 1 year now, I have made the same 
statement on the House floor when the House Financial Services 
Committee has a bill here on the floor. Committee Republicans stand 
ready to work with the Democrats on issues that are important to the 
American people, and this bill is a prime example of this. We support 
policies that create jobs, grow our economy, and make our Nation more 
secure.
  Today is no different. Republicans want to work with Democrats to 
help all consumers, especially consumers who may be struggling to 
access the necessary credit to apply for a home loan or replace a 
broken washing machine or perhaps even start a small business.
  We want to reach a bipartisan compromise to reform the Fair Credit 
Reporting Act, or FCRA. We want to find a compromise that meaningfully 
helps consumers and, at the same time, stands a chance of being signed 
into law.
  This bill is not that. I fear my colleagues have thrown out 
bipartisanship in favor of satisfying political allies in an election 
year.
  This bill socializes credit modeling giving, the CFPB, an 
unaccountable bureau within the government, the ability to develop, 
maintain, and regulate credit modeling and factors used in analysis.
  You will have politicians making the decisions on how credit is 
scored, Mr. Chairman. That is a dangerous thing and something in the 
United States we should not stand for.
  This bill prevents employers from knowing the creditworthiness of 
employees. This creates a situation in which employees who are in 
significant debt could be targets of bribes or extortion or perhaps 
take money that is owed to other people.
  This bill creates a boon for the trial lawyers, creating new 
reinvestigation and appeals processes to be exploited by the trial bar.
  This bill diminishes the value of a credit score as a determining 
factor in extending credit--I don't think that is a secondary fact; I 
think that is the primary goal of this bill--by removing past credit 
scores after 2 years from a report and prohibiting those scores within 
the 2-year period from being used as a factor.
  This bill also arbitrarily changes the time period negative 
information, such as a missed payment, remain on a consumer's credit 
report.

[[Page H655]]

  This bill makes it more difficult for private lenders to compete in 
the student loan industry by allowing delinquent borrowers or a 
borrower who has defaulted on a loan to rehabilitate their credit 
outside of the contractual terms.
  This bill imposes unfunded mandates on the private sector to really 
an unprecedented degree.
  These provisions make clear what Democrats want to accomplish in this 
bill. They want to socialize credit and the models underlying credit 
allocation. This bill takes credit reporting out of the hands of the 
private sector and gives it to the government.
  Let me be clear. I am no fan of the large credit reporting agencies, 
also known as CRAs. In fact, during our one hearing on this topic last 
February, nearly 1 year ago at this point--I use the term loosely--that 
we discussed this bill, because it was just a discussion draft and much 
different from what we have before us. But in that hearing, we didn't 
discuss the implications of this bill or the FCRA. I made it clear at 
that hearing that I share the chairwoman's concerns with the credit 
reporting agencies, their lack of competition, and their oligopoly. In 
fact, there were aspects of the original discussion draft of this bill 
that are not part of what we have today that I thought had merit and 
should be explored in greater detail.
  For example, I have concerns that CRAs' operations are not as 
consumer-friendly as they could be or should be. Moreover, not once 
after that hearing did the committee consult with additional subject 
matter experts on the inefficiencies, ineffectiveness, or improvements 
needed to the Fair Credit Reporting Act. Not once after that February 
hearing did we discuss how to make CRAs work better for the consumer. 
Not once did we have real bipartisan discussions about what we could 
achieve and get signed into law.
  This is something that both Republicans and Democrats actually agree 
on, the need to reform this process. I agree that we should be 
disclosing public record data sources. I agree we should exclude paid 
medically necessary medical debt from consumer credit reports. I agree 
we should prohibit certain adverse information resulting from financial 
abuse or predatory lending from being included in consumer credit 
reports.

  In fact, the substitute amendment I filed with the Rules Committee 
that was not made in order this day includes the bipartisan reform I 
described and more.
  Committee Republicans support reforms such as prohibiting the use of 
Social Security numbers to verify consumers. Now, this is a primary 
source and a primary ingredient for identity fraud. We should take 
action there, and I think we can.
  Committee Republicans also support facilitating online credit freezes 
and the removal of credit files for minors and children. We also 
support studying the use of nontraditional data in credit scoring as 
well as codifying the Consumer Financial Protection Bureau's, or the 
CFPB's, credit reporting registry.
  I think there are things that we can do. Bipartisanship is within our 
grasp. All my colleagues have to do is reach out and grab it.
  As I said, Republicans stand ready to work with Democrats to help 
consumers. But this bill is about socializing credit and credit 
allocation, and this bill is not the answer to the consumers' 
challenge. In fact, the Democrats' bill will only hurt the very 
consumers we are trying to help.
  Mr. Chairman, I urge my colleagues to oppose this socialization of 
credit reporting and vote ``no'' on this bill. I reserve the balance of 
my time.
  Ms. WATERS. Mr. Chairman, this really should be a bipartisan bill, 
but my friends on the opposite side of the aisle have not been willing 
to really work in a bipartisan way. His bill was rejected in the Rules 
Committee because it was not germane. If he agrees with us on all of 
the items he identified, he should be supporting this bill.
  Mr. Chairman, I yield 5 minutes to the gentlewoman from Massachusetts 
(Ms. Pressley), who is a sponsor of this important legislation.

                              {time}  1330

  Ms. PRESSLEY. Mr. Chair, in this country, our credit reports are our 
reputations, determining where you can live, where you can work, and 
how much it will cost you to finance everything from a car to a college 
degree. But our credit reporting system is fundamentally flawed, rife 
with inequities and disparities that stifle the upward mobility of 
millions of hardworking Americans.
  I am proud to rise in support of my Comprehensive Credit Reporting 
Enhancement, Disclosure, Innovation, and Transparency, or Comprehensive 
CREDIT, Act, a critical package of reforms that will improve our 
fundamentally flawed credit reporting system.
  How and what information is shared with credit reporting agencies is 
especially important as Americans take on ever-increasing debt simply 
for trying to afford basic needs: housing, healthcare, and higher 
education.
  Trailing only mortgages, student loan debt is now the second highest 
form of consumer debt, impacting nearly one-fifth of U.S. households 
and totaling over $1.6 trillion. That is trillion with a T. In my home 
State of Massachusetts, alone, over 855,000 borrowers owe a total of 
$33.3 billion in student loan debt.
  That is why I am especially proud the Comprehensive CREDIT Act 
includes reforms originally introduced in my Student Borrower Credit 
Improvement Act, reforms that would establish a credit rehabilitation 
process for private student loan borrowers facing hardship, making 
students eligible to have all associated derogatory remarks removed 
from their credit reports, which can otherwise stay on for 7 years.
  Even if we wipe out all student debt tomorrow, the devastating impact 
on consumers' credit would remain for years to come. For that very 
reason, we must give folks a real chance at recovery and repair.
  It is estimated that one in five Americans has a potential error on 
their credit report; but, for too long, credit reporting agencies have 
kept consumers in the dark and made it difficult to correct errors that 
do come to light. The Comprehensive CREDIT Act will ensure that 
consumers can quickly and easily rectify those errors.
  At a time when wages are stagnant but the cost of housing, childcare, 
and education continue to rise, we should be working to provide our 
constituents pathways to financial stability and success. It is why 
this bill would restrict the use of credit scores for most hiring 
decisions, limit the amount of time that adverse information can remain 
on a person's credit profile, and ban the reporting of any debt as a 
result of medically necessary procedures.
  I urge my colleagues to support the Comprehensive CREDIT Act and 
ensure a more equitable and transparent credit reporting system for 
all.
  Mr. McHENRY. Mr. Chair, I yield 2\1/2\ minutes to the gentleman from 
Missouri (Mr. Luetkemeyer), who is the ranking member of the Consumer 
Protection and Financial Institutions Subcommittee.
  Mr. LUETKEMEYER. Mr. Chair, the bill we are considering today is made 
of six extremely partisan pieces of legislation. This package will not 
receive substantial bipartisan support and is dead on arrival in the 
Senate.
  Unfortunately, instead of working in a bipartisan manner to improve 
credit reporting for consumers, the majority has chosen to advance 
legislation that simply attacks an industry, to the consumers' 
detriment.
  I think the ranking member made a number of points a while ago with 
regard to the willingness of the minority to advance a lot of different 
solutions to some of the concerns that we all have, yet they were not 
heard.
  Each piece of legislation in this package has one of two goals--the 
first goal is to expand the authority of the CFPB over credit modeling; 
the second is to eliminate as much information from the credit report 
as possible--both of which will increase the cost of credit and make it 
even more difficult for low- and moderate-income families to receive a 
loan.
  If the financial institution is unable to analyze a risk, it has to 
increase the cost to be able to cover the additional risk. It is just 
that simple.
  In this Congress, we have had witness after witness come before our 
committee and praise and support the use of alternative credit 
modeling. Using alternative data can increase access to

[[Page H656]]

credit, particularly for low-income consumers and the underbanked.
  Instead of supporting efforts to modernize and increase credit 
access, the majority seems inclined to stifle innovation by requiring 
the CFPB, an unaccountable government agency, to determine what factors 
can be used in credit scoring. Putting the government in charge of 
establishing credit scores for consumers is a dangerous notion that 
strikes at the heart of economic freedom in this country.
  By eliminating the information that appears on the credit report, my 
colleagues on the other side of the aisle are weakening one of the most 
objective and accurate ways to determine creditworthiness of borrowers.
  If lenders can no longer rely on a credit report to reflect the 
actual risk of a borrower, the lender will be forced to increase their 
rates to ensure they are pricing the additional risk they are taking. 
This increased cost of credit will directly affect the individuals who 
are on the margins, notably low- and moderate-income borrowers.
  While I think the majority may have good intentions with this 
legislation, government control of credit modeling and decreased access 
to credit for low-income families sounds like a disastrous recipe for 
our economy. That is why I am opposing the legislation, Mr. Chair, and 
I urge my colleagues to do so as well.
  Ms. WATERS. Mr. Chair, I yield 3 minutes to the gentlewoman from Ohio 
(Mrs. Beatty), who is the chairwoman of the Subcommittee on Diversity 
and Inclusion and a sponsor of legislation that is a part of this bill, 
H.R. 3621.
  Mrs. BEATTY. Mr. Chair, I want to start by thanking Chairwoman Waters 
and the House Democratic Caucus for bringing this package of bills to 
the House Floor, the Comprehensive CREDIT Act, which includes my bill, 
the Free Credit Scores for Consumers Act. This bill would require the 
three national consumer reporting agencies to include a free credit 
score with a consumer's free annual credit report.

  Under the current law, Mr. Chair, every consumer is entitled to a 
free annual credit report from the three national credit reporting 
agencies but not a credit score.
  It is important for consumers to have free access to the three-digit 
number that affects so much of their financial lives; yet too many 
Americans do not actually even know what their credit score is, how it 
is calculated, or where to find it. This bill would help remedy that 
problem.
  Critics may say that consumers can already receive a free credit 
score online, but what they don't tell them is that these products use 
your credit data to sell to third parties so they can, in turn, market 
financial products back to you.
  This bill allows consumers a one-stop shop to get their credit scores 
directly from the credit reporting agencies who hold the information 
that makes up those scores, no strings attached. Moreover, my bill 
would require more financial literacy information about credit scores 
and credit reports to be sent to consumers along with these reports.
  I urge my colleagues on the other side to stand up for this bill, to 
stand up for their constituents, and to allow consumers to take greater 
control of their own financial data.
  And do you know why they can do this? Because their constituents are 
our constituents, and they have asked for this. So we are asking them 
to vote ``yes'' on this piece of legislation.
  Mr. McHENRY. Mr. Chair, I yield 3\1/2\ minutes to the gentleman from 
Kentucky (Mr. Barr), the Republican ranking member of the Oversight and 
Investigations Subcommittee.
  Mr. BARR. Mr. Chair, I rise today in strong opposition to H.R. 3621, 
a bill that has been misnamed as the Comprehensive CREDIT Act of 2020. 
A more appropriate title of the bill would be the ``Incomplete and 
Inaccurate Credit Act,'' because the bill's core purpose is to remove 
critically important predictive data from credit reports.
  Even worse, the bill would give unprecedented authority to the 
Consumer Financial Protection Bureau to control, micromanage, and 
politicize the development of credit scoring models.
  This bill and its authors trust in the abilities of unelected 
Washington bureaucrats to price risk for millions of Americans, which 
will result in higher cost and fewer choices for consumers and will 
harm low- and middle-income borrowers who are trying to build a credit 
profile.
  The accurate pricing of risk is an essential element of a functioning 
economy. Pricing a loan, underwriting an insurance policy, or tailoring 
a line of credit for a borrower all require a reliance on risk-based 
metrics. Credit scores allow for a holistic view of a consumer's 
history with financial products and allow an institution to understand 
that consumer's ability to honor his or her obligations.
  This bill would upend our current system of pricing risk by turning 
over the private sector's creditworthiness models to the government and 
placing a wildly unrealistic confidence in central planning rather than 
free enterprise.
  My Democrat colleagues continue to believe that a centralized 
bureaucratic agency is the best and only option to fully protect 
consumers. The irony is that this bill would result in much less 
accurate credit scoring and would harm the very people my colleagues 
purport to help.
  If you think that private credit scoring is flawed and disadvantages 
the borrowing public, just wait until the government is in charge. We 
continue to see the CFPB's incompetence on full display, and credit 
scoring will not be any different.
  We need a credit reporting system that relies on accurate, risk-
based, predictive metrics. Our goal should be to allow people with good 
credit to have access to financial products at a reasonable price and 
to provide means for people with lower scores to rebuild their credit 
on a path to a more prosperous future.
  Putting credit reporting metrics in the hands of unelected 
bureaucrats and boxing out the private sector will make financial 
products more expensive and less available for all citizens and have 
detrimental downstream effects on our credit-based economy. Worse, it 
risks politicizing credit scores instead of assigning scores based on 
an accurate and fulsome credit history.
  We should not replace the accountability of market forces and free 
enterprise with the unaccountability of government bureaucracy. This 
bill will politicize credit reporting by empowering an inherently 
political agency.
  The question is not whether the CFPB will fail our constituents; it 
is how badly it will fail them.
  Mr. Chair, I urge my colleagues to oppose this bill.
  Ms. WATERS. Mr. Chair, I yield 3 minutes to the gentlewoman from 
North Carolina (Ms. Adams), who is a sponsor of one of the bills in 
this comprehensive legislative package, H.R. 3621.
  Ms. ADAMS. Mr. Chair, I rise today to join my colleagues in support 
of H.R. 3621, the Comprehensive CREDIT Act.
  I commend Chairwoman Waters, Congresswoman Pressley, and my 
colleagues for their leadership and dedication to ensuring that the 
credit reporting system works for everyone.
  Our Nation's credit reporting system has an impact on hundreds of 
millions of Americans. Credit scores and credit reports are 
increasingly relied on for key decisionmaking by creditors, employers, 
insurers, and even law enforcement. However, it has been more than 15 
years since Congress has enacted comprehensive reform of the credit 
reporting system.
  In particular, I would like to focus on the consumers who have 
experienced financial distress due to inaccurate information on their 
credit reports.
  When there is an error on a consumer report, the burden falls on the 
consumer. It can take months and even, in some cases, years to remove 
an error on a consumer's report, all the while the consumer's credit 
continues to suffer, potentially preventing them from receiving a much-
needed loan or financing.

                              {time}  1345

  My bill, the Improving Credit Reporting for All Consumers Act, which 
is part of this larger package, would help consumers by making it 
easier for incorrect information to be removed swiftly and painlessly.
  It would make much-needed improvements to the dispute process for 
consumers by providing a new right to appeal the results of initial 
disputes.

[[Page H657]]

  It would also require furnishers to retain better records of negative 
information and that consumers be provided copies of any documents used 
during the dispute process. All furnishers who regularly report 
negative information would also be required to notify customers about 
this practice and alert customers when they first send derogatory 
information.
  The second portion of my bill prohibits credit reporting agencies 
from providing consumers with misleading and unfair information about 
the various credit monitoring services they offer.
  Credit reporting agencies would also be prohibited from misleading 
consumers by describing certain products and services as free that are, 
in truth, provided at no charge only for a limited trial period before 
automatically converting into a paid subscription service.
  The naysayers will say that my bill is well-meaning but significantly 
flawed because the dispute process would make things more complicated 
and difficult, but they would be wrong. The status quo is difficult and 
cumbersome, and too many consumers' lives, credit, and opportunities 
for healthy financial records hang in the balance.
  Credit scores have a significant bearing on your ability to secure 
access to loans and other opportunities for upward economic mobility. 
This is an issue far too important, life-altering, and impactful. We 
must do all that we can to ensure that consumers are fully 
knowledgeable about their options and that they have the necessary 
protections available to them.
  Mr. Chairman, I urge my colleagues to support this bold package.
  Mr. McHENRY. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman 
from Texas (Mr. Williams), my colleague from Weatherford.
  Mr. WILLIAMS. Mr. Chairman, I rise today in opposition to H.R. 3621.
  As a business owner and lender, I know firsthand the value that 
complete and accurate credit reports have in making sound business 
decisions.
  For any business that relies on financing, risk-based pricing is 
essential in order to offer each customer the lowest rate possible. 
Every time a deal is broken, the cost gets passed along to the next 
customer.
  Your handshake is worth something. When you are trying to get a loan, 
people need to know that your signature is worth something as well.
  In Texas, a deal is a deal, and you must always live up to your end 
of the bargain. For those customers who have been financially 
responsible and always paid their debts on time, they are rewarded with 
lower rates. For those borrowers who have not paid their debts on time, 
financial institutions are forced to price in this inherent risk.
  Whether a person is buying a car, a private jet, or a cow, the lender 
needs to be paid back in order to be able to continue offering lines of 
credit to responsible people in their community.
  Mr. Chair, I am concerned that this bill would take us down a path 
where lenders are receiving incomplete credit reports that have been 
scrubbed of all negative information. In other words, hiding 
information results in greater risk for the lender. This would make 
borrowing money more expensive for all customers since financial 
institutions will have a worse picture about who will be able to repay 
their debts and who will not.
  Again, I remind you we say and always should remember: A deal is a 
deal.
  Mr. Chair, I urge my colleagues to vote ``no'' on this bill.
  Ms. WATERS. Mr. Chair, our next speaker is a sponsor of one of the 
bills in H.R. 3621. She will have an opportunity to correct the ranking 
member, who indicated the bill would remove negative credit after 2 
years. It does not. She will clear that up and make sure that he 
understands the facts of our bill.
  Mr. Chair, I yield 3 minutes to the gentlewoman from Michigan (Ms. 
Tlaib).
  Ms. TLAIB. Mr. Chair, I thank Chairwoman Waters and her intelligent, 
hardworking staff for their leadership on this bill.
  I also thank my sister-in-service, Congresswoman Ayanna Pressley, for 
spearheading this package of bills, the Comprehensive CREDIT Act of 
2020. A new decade, a new way, as our chairwoman would say.
  I am also proud that our package of bills before us today includes 
H.R. 3622, the Restoring Unfairly Impaired Credit and Protecting 
Consumers Act. We are all aware of how expensive medical bills are and 
how easily one sickness or accident can bring families to financial 
ruin. According to the Urban Institute, regardless of age, income, 
insurance status, or ethnicity, one in four individuals are at risk of 
losing their health, homes, credit standing, and financial security 
annually because of the harms of medical debt.
  The bill prohibits the reporting of medically necessary debt often 
incurred for seeking lifesaving treatment and protects the credit 
profile of those struggling with medical debt by stopping the credit 
reporting agency from reporting this debt for 1 year, twice the current 
practice.
  This bill also protects the survivors of financial abuse. A study by 
the Federal Trade Commission shows that 21 percent of consumers had 
verified errors in their credit report; 13 percent had errors that 
affected their credit scores; and 5 percent had errors serious enough 
to cause them to be denied or pay more for credit.
  Our bill would make sure that fellow Americans suffering from 
circumstances beyond their control are not punished or left out of 
future opportunities to responsibly build and rebuild credit because of 
risk factors beyond their control.

  By passing this bill, we will make it easier for our neighbors 
struggling to recover from predatory loans and fraudulent activity by 
requiring that credit reporting agencies remove negative information 
from credit reports relating to loans that are unfair, deceptive, 
abusive, and otherwise illegal.
  Lastly, and probably the most transformative provision, this bill 
shortens the length of time that bad marks stay on your credit report 
from 7 years to 4 years.
  This package will open up doors for economic opportunities for 
millions of people across our country. No one should be stopped from 
becoming a homeowner or bettering their life because of bad debt.
  Mr. Chair, that is why I urge my colleagues to support this bill.
  Mr. McHENRY. Mr. Chairman, I reserve the balance of my time.
  Ms. WATERS. Mr. Chairman, I yield 3 minutes to the gentleman from 
Massachusetts (Mr. Lynch), who is chairman of the Task Force on 
Financial Technology, and a sponsor of H.R. 3629, one of the bills that 
is making up this package.
  Mr. LYNCH. Mr. Chairman, I thank the gentlewoman from California for 
her longtime leadership on this issue. I also thank my colleague, Ms. 
Pressley from Massachusetts, for her work as well.
  I am extremely grateful that the text of my bill, H.R. 3629, the 
Clarity in Credit Score Formation Act, which would require the Consumer 
Financial Protection Bureau to periodically evaluate the models and 
underlying algorithms used to measure consumer creditworthiness, has 
been made part of this measure.
  I also appreciate the opportunity to speak in favor of my colleague's 
work, which is embodied in H.R. 3621, the Comprehensive CREDIT Act, 
which is before us today.
  Mr. Chair, as we have heard throughout debate, credit reports and 
credit scores are an important part of American consumers' financial 
lives. Yet, despite that importance, we continue to see serious 
problems with the way creditworthiness is measured and with the credit 
models that the credit agencies use.
  We know that consumers have consistently faced errors in their credit 
reports and that, oftentimes, those errors are serious enough to impact 
important opportunities in obtaining housing and other major financial 
decisions. These errors can lead directly to consumers being denied 
credit or paying substantially more for the credit that they do 
receive.
  Despite complaints from my Republican colleagues, by expanding the 
pool of information used to make credit decisions, applicants and 
lenders actually won't have to rely solely on often-flawed data in 
credit reports, and consumers can get the credit they deserve for 
regularly paying their rent on time and their bills on time and more, 
without raising the cost to the system of doing so.

[[Page H658]]

  While these new uses of data can allow expanded access to credit, 
sometimes that same data can be misconstrued and result in unfair 
discrimination. We have seen this most clearly in the credit scores of 
our sons and daughters in uniform and military personnel in the Armed 
Forces.
  It is customary that service to our Nation requires military families 
to move around fairly frequently as deployments and unit assignments 
change. Taken by itself and out of context, frequently moving your 
residence year to year can give the false impression to a credit agency 
that an applicant is not in a stable situation and can adversely impact 
their ability to access credit.
  Other uses of data can be closely related to factors such as race or 
gender, or become a proxy for a protected class.
  We have already seen examples of this. The Department of Housing and 
Urban Development has sued Facebook over its use of data-targeting, 
which violates the Fair Housing Act by adversely stereotyping families 
who live in public housing projects. Even Housing Secretary Carson has 
openly stated: ``Facebook is discriminating against people based upon 
who they are and where they live.''
  The CHAIR. The time of the gentleman has expired.
  Ms. WATERS. Mr. Chairman, I yield an additional 1 minute to the 
gentleman from Massachusetts.
  Mr. LYNCH. These charges followed on the heels of charges that 
Facebook entered into a financial settlement after accusations that 
landlords, lenders, and employers improperly used that platform to 
unfairly discriminate against families seeking housing opportunities.
  That is why we need clarity in credit score formation. That is why we 
need this bill.
  Importantly, with the expansion of mobile banking, it requires a 
study on the impact of using nontraditional data on consumer reports 
and the use of alternative data in credit scoring models.
  Much to Chairwoman Waters' and Ms. Pressley's credit, this is a very 
good bill that will help us harness the power of mobile technology and 
alternative data to improve outcomes for consumers.
  Mr. Chair, in closing, I thank my colleagues, Mr. Lawson of Florida, 
Mrs. Beatty of Ohio, Ms. Pressley of Massachusetts, Ms. Tlaib of 
Michigan, and Ms. Adams of North Carolina for their great contribution, 
along with Chairwoman Waters, in making this successful legislation.
  Mr. Chair, I urge a ``yes'' vote.
  Mr. McHENRY. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I submit for the Record page 114 of the bill, and I 
would highlight these sections, line 4, ``Maintenance of Credit 
Scores.''
  ``Subsection A: In General. All consumer credit reporting agencies 
shall maintain the consumer's file credit scores relating to the 
consumer for a period of 2 years from the date on which such 
information is generated.
  ``Subsection B: Disclosure Only to Consumers. A past credit score 
maintained in a consumer's file pursuant to subparagraph A may only be 
provided to the consumer to which the credit score relates and may not 
be included in a consumer report or used as a factor in generating a 
credit score or educational credit score.
  ``Subsection C: Removal of the Past Credit Scores. A past credit 
score maintained in a consumer's file pursuant to subparagraph A shall 
be removed from the consumer's file after the end of the 2-year period 
described under subparagraph A.''
  This is the section of the bill that says that your consumer credit 
report can only be 2 years old--your score. Now, the data can be 
longer, but your score can only use 2 years of past data.
  That is deeply problematic because, as we know, these things are more 
long-run occurrences. Creditworthiness doesn't happen overnight, nor do 
somebody's riskier habits happen overnight.
  So for a 2-year period, we have not seen any testimony why 2 years is 
sufficient. The current industry standard is much longer than that, but 
each different user of this credit information can determine for 
themselves what that appropriate time is, and that is not mandated by 
current law.

                              {time}  1400

  So I find this troublesome, and problematic, and riskier than what we 
currently have in the law; and that is one of the components of this 
bill that I oppose. There are numerous other examples, but I know we 
will have more debate and I will be able to bring up those exact 
details as those on the other side tout the so-called benefits.
  Mr. Chairman, I reserve the balance of my time.
  Ms. WATERS. Mr. Chairman, I yield 3 minutes to the gentleman from 
Florida (Mr. Lawson), who is the sponsor of H.R. 3614, one of the bills 
in this comprehensive package.
  Mr. LAWSON of Florida. Mr. Chairman, I rise to support H.R. 3621, a 
bill that provides strong consumer protection for our Nation's 
borrowers.
  Often, we talk about access to capital and how many communities 
across this country are either underbanked or shut out of the credit 
market altogether. This bill goes further than any other piece of 
legislation we have seen in protecting our Nation's student loan 
borrowers, potential hires from biased credit reporting, and 
guaranteeing that consumers have the necessary information to make 
informed financial decisions.
  I am particularly thankful that this legislation includes my bill, 
H.R. 3614, that will limit the use of credit reports and credit scores 
to make hiring decisions.
  As with access to capital, there are many barriers in accessing 
employment opportunities, particularly for communities of color and 
other marginalized groups based on several factors. One of these 
factors includes an individual's credit history.
  Many people have fallen on hard times, had their identities stolen, 
or have become ill, which have negatively impacted their credit 
reports. But I ask, should that also impact their ability to become 
employed?
  Should an arbitrary number based on obscure algorithms that make up a 
credit score shut someone out of being employed? The answer is no.
  That is why this bill prohibits certain employers from using credit 
history to determine someone's eligibility to be employed. This bill is 
a much-needed solution in removing employment barriers.
  As we move forward, I will continue to work with stakeholders to 
protect job applicants while also guaranteeing that organizations and 
companies can vet potential applicants adequately.
  Mr. Chairman, I thank Congresswoman Pressley, Chairwoman Waters, and 
the committee staff who have worked tirelessly into the night to help 
draft this bill. I thank them for their advocacy on behalf of the 
Nation's consumers.
  It is about time we help people gain greater access to the job 
market.
  Mr. McHENRY. Mr. Chairman, I reserve the balance of my time.
  Ms. WATERS. Mr. Chairman, I yield 2 minutes to the gentlewoman from 
New York (Mrs. Carolyn B. Maloney), who is the chairwoman of the 
Committee on Oversight and Reform.
  Mrs. CAROLYN B. MALONEY of New York. Mr. Chair, I thank the 
chairwoman for yielding and for being such a leader on this issue and 
so many others.
  I rise in strong support of H.R. 3621, and I want to thank my 
colleague, Ms. Pressley, for her hard work on this bill.
  Our credit reporting system is deeply flawed, and it affects millions 
of consumers every day. When there is an error on a consumer's credit 
report, it can harm their credit for years. Maybe their credit report 
says that they didn't pay a bill when they did, or maybe they confused 
them with another person.
  These kinds of basic errors should be easy to fix, but unfortunately, 
they often take years to sort out. And in the meantime, consumers are 
being wrongfully denied credit or paying higher rates than they should.
  This bill will solve these problems by reforming the dispute process 
in order to give consumers more rights and more opportunities to 
challenge bad information on their credit reports.
  It also helps consumers who have burdensome student loans by removing 
negative credit information as soon as they can demonstrate that they 
have a history of timely repayment. This is incredibly important.
  Finally, I want to thank Chairwoman Waters for her tireless efforts 
on this

[[Page H659]]

issue. She has focused on credit reporting for years, and I am very 
proud she was able to shepherd so many bills to the floor.
  I urge a ``yes'' vote on this bill.
  Ms. WATERS. Mr. Chairman, I would like to inquire, through the Chair, 
if my colleague has any remaining speakers on his side.
  I have no further speakers and I am prepared to close.
  Mr. McHENRY. Mr. Chair, I yield myself such time as I may consume.
  I include in the Record three documents in opposition to this bill. 
The first is a letter to Chairwoman Waters and to me from the Consumer 
Data Industry Association expressing their opposition to this bill.

                           Consumer Data Industry Association,

                                 Washington, DC, January 23, 2020.
     Hon. Maxine Waters, Chairwoman,
     Hon. Patrick McHenry, Ranking Member,
     Committee on Financial Services,
     House of Representatives, Washington, DC.
       Dear Chairwoman Waters and Ranking Member McHenry: On 
     behalf of the Consumer Data Industry Association (CDIA), I 
     want to share our opposition to H.R. 3621, the 
     ``Comprehensive CREDIT Act of 2020.'' This approximately 200-
     page bill would impose new costs to consumers and the economy 
     and negatively impact credit underwriting standards. We 
     request that House Members vote no when the bill is 
     considered.
       As the trade association representing companies who provide 
     consumer reporting services, we and our members strive to 
     ensure that consumer credit reports are accurate, the 
     information within them is protected and consumers are 
     empowered to correct inaccurate information in a timely and 
     straightforward fashion. Our member companies work constantly 
     to improve the consumer reporting system by making technology 
     and process improvements to enhance accuracy and improve the 
     consumer experience.


                                Overview

       The negative outcomes of H.R. 3621 would strike consumers, 
     community banks, credit unions, automobile dealers, mortgage 
     lenders, other non-bank lenders, data furnishers, employees 
     and employers, insurers, property owners and consumer 
     reporting agencies (CRAs). This legislation makes extensive 
     and complicated changes to the consumer reporting industry 
     and the rights and obligations established under the Fair 
     Credit Reporting Act (FCRA), and will affect the entire 
     credit allocation and risk management ecosystem; the bill is 
     not solely targeted at CRAs.
       In previous instances when Congress considered major FCRA 
     changes, extensive hearings were held in the House and 
     Senate, featuring consumers, regulators, the consumer 
     reporting industry, data contributors and end users of credit 
     reports, such as banks and retailers. In the past, this has 
     resulted in legislation that was supported by most 
     stakeholders and bi-partisan Congressional majorities. The 
     legislation in this Congress was taken up by Committee after 
     only a single hearing last February, which was not focused on 
     specific legislative issues. We believe proceeding without 
     additional scrutiny is a mistake, given the bill's complexity 
     and its impact.
       Consumer reports are a critical driver of economic growth 
     and opportunity. Our economy relies on the ability of CRAs to 
     interact with lenders, employers, insurers and others to 
     enable consumers to access low-cost credit, employment 
     opportunities and housing. The Federal Reserve noted, for 
     example, that ``[a]vailable evidence indicates that [credit 
     report] data and the credit-scoring models derived from them 
     have substantially improved the overall quality of credit 
     decisions and have reduced the costs of such decision-making. 
     Almost certainly, consumers would receive less credit and the 
     price of the credit they received would be higher, if not for 
     the information provided by credit reporting companies.'' 
     Current law provides consumers with a robust set of 
     protections and rights. Ongoing debates regarding consumer 
     privacy have shown that many, including consumer advocates, 
     identify the FCRA as an example of effective consumer 
     protection legislation and a model for other segments of the 
     economy.
       In 2010, Congress passed the Wall Street Reform and 
     Consumer Protection Act (Dodd-Frank Act), which established 
     the Consumer Financial Protection Bureau (CFPB). That law 
     gave CFPB authority over much of the consumer reporting 
     system, and since then, oversight by the Bureau has resulted 
     in significant improvements within the consumer reporting 
     system; CRAs, furnishers and users of credit reports have 
     adopted multiple changes increasing consumer report accuracy 
     and improving the consumer dispute process.
       If H.R. 3621 were to become law, consumers who pay their 
     bills on time and manage their debts responsibly will pay 
     more for credit than they do today. Consumers who have faced 
     challenges with their credit will be worse off as well, as 
     banks will lose the ability to accurately judge their credit 
     history because key information will no longer appear on 
     reports. The economy will suffer, as credit decisions will be 
     based on fewer facts, and lenders will be forced to increase 
     prices or reduce the amount of consumer credit available.
       The legislation to be considered was passed by the 
     Committee on Financial Services as six bills, now embodied in 
     H.R. 3621. We communicated our concerns in a letter on July 
     6, 2019. Those concerns continue to be valid; the following 
     highlights some of the concerns we raised then.

  Mr. McHENRY. The second document is a letter to Members of the House 
of Representatives expressing opposition to each of the bills that was 
included in this overarching bill, including opposition to: H.R. 3621, 
H.R. 3614, H.R. 3618, H.R. 3622, H.R. 3642, from the United States 
Chamber of Commerce.

                                        Chamber of Commerce of the


                                     United States of America,

                                                 January 27, 2020.
       To the Members of the U.S. House of Representatives: The 
     U.S. Chamber of Commerce strongly opposes H.R. 3621, the 
     ``Comprehensive Credit Act of 2020,'' which is composed of a 
     number of bills regarding credit reporting that were reported 
     out of the House Financial Services Committee in 2019.
       The Chamber has previously expressed opposition to each of 
     the bills below which are now included as part of this 
     comprehensive package:
       H.R. 3621, the ``Student Borrower Credit Improvement Act,'' 
     would arbitrarily remove repayment information regarding 
     student loans issued by private lenders. Reducing the quality 
     of information in credit reports would in the aggregate 
     reduce their utility, making it more difficult for consumers 
     to access credit or other services.
       H.R. 3614, the ``Restricting Use of Credit Checks for 
     Employment Decisions Act,'' would restrict an employer from 
     initiating a credit check of an employee despite the fact 
     that the Fair Credit Reporting Act requires an employee to 
     first provide consent. This legislation would make it more 
     difficult for employers to review the backgrounds of 
     prospective employees, which would make it more difficult to 
     hire for sensitive positions or would otherwise delay the 
     hiring process.
       H.R. 3618, the ``Free Credit Scores for Consumers Act,'' 
     would require credit bureaus to pay for and disclose for free 
     a credit scoring model that is owned by a third party. Credit 
     bureaus already provide ample information to consumers at no 
     charge to assist them with understanding their credit 
     standing. The legislation would make it more difficult for 
     credit bureaus to provide for the accurate flow of useful 
     information between consumers, furnishers, and entities that 
     need to make informed decisions.
       H.R. 3622, the ``Restoring Unfairly Impaired Credit and 
     Protecting Consumers Act,'' would reduce the quality of 
     credit reports by arbitrarily reducing the term of adverse 
     information and instituting redundant remediation mechanisms. 
     Disrupting the utility of information in credit reports would 
     make it more difficult for credit providers, and nonfinancial 
     entities such as telecommunications companies and utilities 
     to efficiently provide their services to consumers.
       H.R. 3642, the ``Improving Credit Reporting for All 
     Consumers Act,'' would create dispute resolution requirements 
     that are redundant to services voluntarily provided by credit 
     bureaus and existing requirements under both the Fair Credit 
     Reporting Act and a recent agreement among 38 State Attorneys 
     General. Additionally, the legislation would frustrate the 
     ability of credit bureaus to provide information to consumers 
     by imposing new restrictions on the marketing of products 
     intended to improve credit standing.
       H.R. 3629, the ``Clarity in Credit Score Formation Act of 
     2019,'' would make the CFPB, not lenders, the de facto 
     underwriter of consumer loans and is redundant to existing 
     supervisory and regulatory authority. The CFPB currently 
     supervises larger participants in consumer reporting under 
     its authority in the Dodd-Frank Act and has broad regulatory 
     authority via enforcement of the Fair Credit Reporting Act. 
     Interference in the proprietary models developed by credit 
     bureaus and used by lenders would increase lenders' risk and 
     decrease their ability to provide objective information.
       The Chamber urges you to oppose the Comprehensive Credit 
     Act.
           Sincerely,
                                                  Neil L. Bradley.

  Mr. McHENRY. And finally, I include in the Record Statement of 
Administration Policy that says that the President would veto this 
bill.

                   Statement of Administration Policy


 H.R. 3621--Comprehensive CREDIT Act of 2020--Rep. Pressley, D-MA, and 
                        Rep. Ocasio-Cortez, D-NY

       The Administration opposes passage of H.R. 3621, the 
     Comprehensive CREDIT Act of 2020. The Administration supports 
     measures to increase access to affordable consumer credit, 
     but H.R. 3621 would do the opposite by reducing the 
     efficiency of consumer lending markets and raising the cost 
     of consumer credit.
       H.R. 3621 would preclude credit reporting agencies from 
     incorporating a range of relevant data into consumer reports, 
     which would reduce their predictive value and raise borrowing 
     costs for responsible borrowers. This legislation would also 
     prevent the Federal Government from reporting information 
     regarding debts arising out of criminal monetary penalties. 
     Additionally, H.R. 3621

[[Page H660]]

     would empower the Bureau of Consumer Financial Protection to 
     control the development of credit-scoring models, which would 
     hinder market competition that drives innovation and improves 
     modeling. Finally, this legislation would interfere with the 
     ability of employers, including executive branch agencies, to 
     make reasonable background investigation determinations with 
     respect to candidates for sensitive positions.
       If H.R. 3621 were presented to the President, his senior 
     advisors would recommend that he veto it.

  Mr. McHENRY. Mr. Chairman, I might offer to the chair of the 
committee at some point to frame the Statement of Administration Policy 
on vetoes of some of her bills this Congress. That may be a badge of 
honor. I say that in a lighthearted manner, not in an aggressive way, 
for sure.
  Mr. Chairman, in closing, this is a partisan bill under the guise of 
consumer protection that will destroy the accuracy and completeness of 
consumer credit files.
  Moreover, this bill continues the Democrats' trend of failing to 
address the underlying causes of the student loan crisis; the 
underlying causes of medical debt; the underlying causes of 
homelessness.
  Instead, this bill will jeopardize credit for low and middle-income 
Americans disproportionately; Americans who fight to pay their bills 
each month; make good on their obligations; and have taken the time to 
improve their financial situations over time and become eligible for 
credit.
  What my colleagues fail to understand is this: This bill will weaken 
underwriting standards. That strikes at safety and soundness. It will 
make extending credit riskier and more expensive for consumers, 
ultimately impacting both the costs and accessibility of credit for all 
Americans.
  This bill alters the very foundation for extending credit in our 
financial system which is the ability to assess risk.
  This bill will drive us to a riskier financial situation and 
financial system. It is a bad bill.
  This bill that we are considering today will fundamentally alter the 
way credit is extended in this country, and not for the better.
  So let's be clear on what this bill does. It socializes credit 
modeling and reporting.
  This bill gives the CFPB the ability to develop, maintain, and 
regulate credit modeling and factors used in analysis.
  This bill prevents employers from knowing the creditworthiness of 
employees.
  This bill is a giveaway to trial attorneys, creating four new re-
investigation and appeals processes to be exploited by the trial bar.
  This bill will make it more difficult for private lenders to compete 
in the student loan industry dominated by the Federal Government by 
allowing delinquent borrowers or borrowers who have defaulted on a loan 
to make changes to their credit outside of the contractual obligations 
and contractual terms they have agreed to.
  As I said earlier, bipartisan compromise was within reach. All my 
colleagues had to do was reach out and grab it. Instead, they chose to 
push through another partisan bill that is going nowhere in the Senate 
and will be vetoed--if it were to even make it through the United 
States Senate--vetoed by the President.
  And this has been a tremendous waste of time for the American people, 
a tremendous waste of time, when we have very important issues to 
wrestle with as a Congress and as a country.
  So I urge my colleagues to vote ``no'' on socializing credit 
reporting.
  Mr. Chairman, I yield back the balance of my time.
  Ms. WATERS. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chair, I include in the Record a letter from the Americans for 
Financial Reform and the 85 undersigned consumer, civil rights, labor, 
and community organizations who wrote to express their support for H.R. 
3621, and a letter from the National Association of Realtors.


                               Americans for Financial Reform,

                                                 January 27, 2020.
       Dear Representative: The 85 undersigned consumer, civil 
     rights, labor, and community organizations write to express 
     our support for HR 3621, the Comprehensive Credit Reporting 
     Enhancement, Disclosure, Innovation, and Transparency Act of 
     2020 (Comprehensive CREDIT Act of 2020).
       Credit reports and credit scores play a critical role in 
     the economic lives of Americans. They are the gatekeeper for 
     affordable credit, insurance, rental housing, and sometimes 
     unfortunately even a job. Yet they suffer from unacceptable 
     rates of inaccuracy. This bill would enact a sea change that 
     would make the American credit reporting system more accurate 
     and fairer to consumers.
       The Federal Trade Commission's definitive study showed that 
     21% of consumers had verified errors in their credit reports, 
     13% had errors that affected their credit scores, and 5% had 
     errors serious enough to cause them to be denied or pay more 
     for credit. Trying to fix these errors can be a Kafka-esque 
     nightmare in which the Big Three nationwide consumer report 
     agencies (CRAs)--Equifax, Experian and TransUnion--
     consistently favor the side of the creditor or debt collector 
     (``the furnisher'') over the consumer.
       The American credit reporting systems suffers from a number 
     of other flaws and defects. Consumers are unfairly penalized 
     by negative credit reporting when they have been the victim 
     of abusive practices, such as predatory mortgages or student 
     loans resulting from for-profit school fraud, or due to 
     circumstances out of their control, such as temporary job 
     loss, illness, or financial abuse by a family member. 
     Healthcare bills contribute greatly to credit reporting 
     harms, with over 50% of debt collection items resulting from 
     medical debt.
       Consumers also lack the right to a free annual credit 
     score. Furthermore, many consumers who attempt to obtain a 
     free annual credit report or to obtain their scores are 
     misled into purchasing high-priced credit monitoring or other 
     subscription services. These services are also marketed to 
     prevent identify theft, yet they are far less effective in 
     doing so than a security freeze. This legislation 
     comprehensively addresses all of these abuses, and more. This 
     bill would:
       Fix the broken system for credit reporting disputes by (1) 
     giving consumers a new right to appeal the results of initial 
     disputes; (2) requiring CRAs and furnishers of information to 
     dedicate sufficient resources and provide well-trained 
     personnel to handle disputes; (3) requiring CRAs to conduct 
     an independent analysis of disputes, separate from that of 
     the furnisher; and (4) requiring furnishers to retain records 
     for the same time period that negative information remains on 
     reports.
       Improve credit reporting accuracy by directing the Consumer 
     Financial Protection Bureau (CFPB) to establish accuracy 
     regulations, including requiring CRAs to better monitor 
     furnishers for high error rates and to use stricter criteria 
     to match information from a lender to a consumer's file, 
     preventing the worst type of credit reporting error, the 
     ``mixed file.''
       Restrict the use of credit information for employment by 
     limiting it to two narrow instances--when required by local, 
     state or federal law or for national security clearances. 
     This will severely limit a practice that discriminates 
     against the long-term unemployed, has a disparate impact on 
     communities of color, and has very little evidence 
     demonstrating its effectiveness in predicting job 
     performance.
       Help victims of abusive lending and overly punitive 
     negative reporting practices by (1) reducing the current 
     overlong retention periods that adverse credit information 
     remains on reports to four years (seven years for 
     bankruptcies); (2) allowing borrowers victimized by the 
     unfair, deceptive or abusive practices of mortgage lenders or 
     servicers to have adverse mortgage-related information 
     removed; and (3) requiring the removal of negative 
     information about private education loans that were obtained 
     to attend for-profit colleges found to have engaged in unfair 
     or deceptive practices.
       Protect consumers from the unfair impact of medical debt by 
     prohibiting CRAs from including medical collections on 
     reports until 365 days from the date of first delinquency and 
     prohibiting the reporting of any debt for medically necessary 
     procedures. This will ensure that consumers have time to 
     resolve their complex, confusing medical bills. The bill also 
     mandates that all paid or settled debt, including medical 
     collections, be removed within 45 days from reports.
       Help consumers understand their creditworthiness by giving 
     consumers the right to a free credit score at the same time 
     that they obtain their free annual consumer report. The bill 
     also creates several new instances in which consumers are 
     entitled to receive both free reports and scores, including 
     requiring auto, private education and mortgage lenders to 
     provide prospective loan borrowers the same free reports and 
     scores that the lenders used in their decision-making before 
     consumers sign those loan agreements.
       Address misleading marketing of credit monitoring 
     subscriptions and increase access for security freezes to 
     prevent identity theft by (1) prohibiting the misleading 
     practice of automatically converting free trial periods into 
     paid, monthly subscription services by requiring CRAs to 
     provide explicit opt-ins at the end of the promotions and (2) 
     providing free credit freezes for security breach victims and 
     vulnerable consumers, and capping the cost for all other 
     consumers.
       Give a second chance to struggling private education loan 
     borrowers by allowing them to rehabilitate impaired credit 
     records through requiring removal of adverse information 
     about delinquent or defaulted loans if they are able to make 
     nine out of ten on-time, monthly payments.

[[Page H661]]

       Correct provisions in last year's deregulatory law, S2155, 
     that unwisely preempted states from further improvements to 
     the credit freeze laws and provided servicemembers with a 
     credit monitoring right without a remedy.
       These credit reporting reforms are urgently needed in order 
     to ensure that consumers are treated fairly and that the 
     credit reporting system that underlies so many daily 
     transactions works better for the public.
       We look forward to working with you to swiftly pass this 
     bill to better protect consumers.
       Thank you for your attention.
           Sincerely,
       Americans for Financial Reform; A2Z Real Estate 
     Consultants; African American Health Alliance; Alaska Public 
     Interest Research Group; Allied Progress; Arkansas Community 
     Organizations; BREAD Organization; CAFE Montgomery MD; Center 
     for Digital Democracy; Cleveland Jobs with Justice; Community 
     Action Human Resources Agency (CAHRA); Congregation of Our 
     Lady of the Good Shepherd, US Provinces; Connecticut Fair 
     Housing Center; Consumer Action; Consumer Federation of 
     America; Consumer Federation of California; Consumer Reports.
       CWA Local 1081; Delaware Community Reinvestment Action 
     Council, Inc.; Demos; Denver Area Labor Federation; East Bay 
     Community Law Center; FAITH IN TEXAS; Famicos Foundation; 
     FLARA; Florida Alliance for Consumer Protection; Greater 
     Longview United Way; Groundcover News; Habitat for Humanity 
     of Camp Co, TX; Hawaiian Community Assets; Housing Action 
     Illinois; Housing and Family Services of Greater New York, 
     Inc.
       Mary House, Inc.; Maryland Consumer Rights Coalition; Miami 
     Valley Fair Housing Center, Inc.; Mobilization for Justice 
     Inc.; Montana Organizing Project; Multi-Cultural Real Estate 
     Alliance For Urban Change; National Advocacy Center of the 
     Sisters of the Good Shepherd; National Association of 
     Consumer Advocates; National Association of Social Workers; 
     National Association of Social Workers West Virginia Chapter; 
     National Center for Law and Economic Justice; National 
     Consumer Law Center (on behalf of its low-income clients); 
     National Consumers League; National Fair Housing Alliance; 
     National Housing Law Project; National Housing Resource 
     Center.
       National Rural Social Work Caucus; New Economics for Women; 
     New Jersey Citizen Action; New Jersey Tenants Organization; 
     New York Legal Assistance Group; North Carolina Council of 
     Churches; Partners In Community Building, Inc.; PathWays PA; 
     Pennsylvania Council of Churches; People Demanding Action; 
     Progressive Leadership Alliance of Nevada; Project IRENE; 
     Prosperity Now; Public Citizen; Public Justice Center; Public 
     Law Center; Public Utility Law Project of New York.
       Rocky Mountain Peace and Justice Center; SC Appleseed Legal 
     Justice Center; Sisters of Mercy South Central Community; 
     Society of St. Vincent de Paul; St. Paul UMC; Tennessee 
     Citizen Action; The Center for Survivor Agency and Justice; 
     The Disaster Law Project; The Greenlining Institute; The 
     Leadership Conference on Civil and Human Rights; THE ONE LESS 
     FOUNDATION; Tzedek DC; U.S. PIRG; Urban Asset Builders, Inc.; 
     Virginia Citizens Consumer Council; Virginia Poverty Law 
     Center; West Virginia Center on Budget and Policy; Wildfire; 
     Woodstock Institute; WV Citizen Action Group.
                                  ____

                                                 January 27, 2020.
     Hon. Maxine Waters,
     Chairwoman, House Committee on Financial Services, 
         Washington, DC.
       Dear Chairwoman Waters and Ranking Member McHenry: On 
     behalf of the 1.4 million members of the National Association 
     of REALTORS (NAR), NAR is pleased to support H.R. 
     3621, the ``Comprehensive Credit Act of 2020.''
       Nearly 70 percent of home sales are financed and a 
     borrower's credit report and credit score form a critical 
     gateway to obtaining a mortgage. Unfortunately, inaccurate 
     credit reports and unfair credit reporting methods raise the 
     cost and/or limit access to mortgage credit for many 
     prospective borrowers. To this end, NAR applauds H.R. 3621, 
     the ``Comprehensive Credit Act of 2020,'' which include the 
     following bills.
       H.R. 3618, the ``Free Credit Scores for Consumers Act of 
     2019''
       H.R. 3621, the ``Student Borrower Credit Improvement Act''
       H.R. 3622, the ``Restoring Unfairly Impaired Credit and 
     Protecting Consumers Act''
       H.R. 3642, the ``Improving Credit Reporting for All 
     Consumers Act''
       H.R. 3629, the ``Clarity in Credit Score Formation Act of 
     2019''
       REALTORS believe that balanced financial 
     regulation and appropriate consumer protection will result in 
     a more vibrant housing market and overall economy. 
     Furthermore, creditor and consumer confidence is critical in 
     the home financing process. REALTORS thank you for 
     your diligent work to improve the accuracy, consistency, and 
     availability of quality credit scoring and appraisal 
     information.
           Sincerely,

                                                  Vince Malta,

                              2020 President, National Association
                                            of REALTORS.

  Ms. WATERS. Mr. Chair, first, I would like to thank all of the 
participants in this comprehensive package. I would like to thank Ms. 
Pressley, as the sponsor of this comprehensive piece of legislation, 
Mr. Lawson, Ms. Adams, Mrs. Beatty, Mr. Lynch, and Ms. Tlaib, for all 
of the work that they put in to ensure that we were covering the years 
of complaints that we have gotten about our credit bureaus and the 
mishandling of our consumers and a lack of protection for consumers who 
have suffered at the hands of our credit bureaus who did not take into 
consideration these very serious complaints.
  So, Mr. Chairman, the Comprehensive Credit Reporting Enhancement, 
Disclosure, Innovation, and Transparency, this act, makes much-needed 
and overdue reforms to improve the credit reporting system. The issues 
addressed by this bill are important for the economic well-being of 
millions of Americans and our economy.
  As we have discussed, the bill is supported by, again, Americans for 
Financial Reform, the National Association of Consumer Advocates, and 
the National Association of Realtors. So, with all of this support, and 
with consumers who have been waiting for years for their 
Representatives to do something about the fact that their data is all 
in the hands of these credit bureaus who are determining whether or not 
they can acquire credit; whether or not they are going to be able to 
get a loan; whether or not they are going to be able to have a decent 
quality of life because they have done everything that they could do to 
have good credit; and that when they have said to the credit bureaus, 
there is an error, they have got me mixed up with someone else, and 
they cannot get this straightened out for them, and they suffer.
  So the time has come, and I am so very pleased that my committee is 
answering all of the requests from our constituents and your 
constituents and all of the constituents of Representatives in this 
body, to do something. The time is now, and we are doing that. This 
comprehensive piece of legislation will absolutely deal with these 
concerns that have been identified for so long.
  I urge all Members who care about their constituency, who have been 
hearing these issues for so many years, I urge them to vote ``yes'' on 
this bill.
  Mr. Chairman, I yield back the balance of my time.
  The Acting CHAIR (Mr. Payne). All time for general debate has 
expired.
  In lieu of the amendment in the nature of a substitute recommended by 
the Committee on Financial Services, printed in the bill, an amendment 
in the nature of a substitute consisting of the text of Rules Committee 
Print 116-47, modified by the amendment printed in part A of House 
Report 116-383, shall be considered as adopted. The bill, as amended, 
shall be considered as an original bill for purpose of further 
amendment under the 5-minute rule, and shall be considered as read.
  The text of the bill, as amended, is as follows:

                               H.R. 3621

       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 ``Comprehensive Credit 
     Reporting Enhancement, Disclosure, Innovation, and 
     Transparency Act of 2020'' or the ``Comprehensive CREDIT Act 
     of 2020''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings.
Sec. 4. Effective date.
Sec. 5. Discretionary surplus fund.

              TITLE I--IMPROVEMENTS TO THE DISPUTE PROCESS

Sec. 101. Dispute procedures and disclosures relating to 
              reinvestigations.
Sec. 102. Consumer awareness of dispute rights.
Sec. 103. Maintenance of records by furnishers.
Sec. 104. Duties of furnishers relating to dispute procedures, notices, 
              and disclosures.
Sec. 105. Right to appeal disputes relating to reinvestigations and 
              investigations.
Sec. 106. Revised consumer reports.
Sec. 107. Indication of dispute by consumers and use of disputed 
              information.
Sec. 108. Accuracy and completeness report duties for consumer 
              reporting agencies and furnishers.
Sec. 109. Inclusion of public record data sources in consumer reports.
Sec. 110. Injunctive relief for victims.

               TITLE II--FREE CREDIT SCORES FOR CONSUMERS

Sec. 201. Definitions.

[[Page H662]]

Sec. 202. Consumer information on calculation of scores.
Sec. 203. Disclosures relating to credit scores and educational credit 
              scores.
Sec. 204. Free credit score disclosures and consumer reports.
Sec. 205. Provision of consumer reports and credit scores by private 
              educational lenders.
Sec. 206. Provision of consumer reports and credit scores by motor 
              vehicle lenders or indirect auto lenders.
Sec. 207. Provision of consumer reports and credit scores by 
              residential mortgage lenders.

           TITLE III--STUDENT BORROWER CREDIT IMPROVEMENT ACT

Sec. 301. Removal of adverse information for certain private education 
              loan borrowers.
Sec. 302. Private education loan definitions.

 TITLE IV--CREDIT RESTORATION FOR VICTIMS OF PREDATORY ACTIVITIES AND 
                  UNFAIR CONSUMER REPORTING PRACTICES

Sec. 401. Adverse credit information.
Sec. 402. Expedited removal of fully paid or settled debt from consumer 
              reports.
Sec. 403. Medical debt collections.
Sec. 404. Credit restoration for victims of predatory mortgage lending 
              and servicing.
Sec. 405. Credit restoration for certain private education loans 
              borrowers.
Sec. 406. Financial abuse prevention.
Sec. 407. Prohibition of certain factors related to Federal credit 
              restoration or rehabilitation.

               TITLE V--CLARITY IN CREDIT SCORE FORMATION

Sec. 501. Consumer Bureau study and report to Congress on the impact of 
              non-traditional data.
Sec. 502. Consumer Bureau oversight of credit scoring models.

    TITLE VI--RESTRICTIONS ON CREDIT CHECKS FOR EMPLOYMENT DECISIONS

Sec. 601. Prohibition on the use of credit information for most 
              employment decisions.

  TITLE VII--PROHIBITION ON MISLEADING AND UNFAIR CONSUMER REPORTING 
                               PRACTICES

Sec. 701. Prohibition on automatic renewals for promotional consumer 
              reporting and credit scoring products and services.
Sec. 702. Prohibition on misleading and deceptive marketing related to 
              the provision of consumer reporting and credit scoring 
              products and services.
Sec. 703. Prohibition on excessive direct-to-consumer sales.
Sec. 704. Fair access to consumer reporting and credit scoring 
              disclosures for nonnative English speakers and the 
              visually and hearing impaired.
Sec. 705. Comparison shopping for loans without harm to credit 
              standing.
Sec. 706. Nationwide consumer reporting agencies registry.
Sec. 707. Protection for certain consumers affected by a shutdown

  TITLE VIII--PROTECTIONS AGAINST IDENTITY THEFT, FRAUD, OR A RELATED 
                                 CRIME

Sec. 801. Identity theft report definition.
Sec. 802. Amendment to protection for files and credit records of 
              protected consumers.
Sec. 803. Enhancement to fraud alert protections.
Sec. 804. Amendment to security freezes for consumer reports.
Sec. 805. Clarification of information to be included with agency 
              disclosures.
Sec. 806. Provides access to fraud records for victims.
Sec. 807. Required Bureau to set procedures for reporting identity 
              theft, fraud, and other related crime.
Sec. 808. Establishes the right to free credit monitoring and identity 
              theft protection services for certain consumers.
Sec. 809. Ensures removal of inquiries resulting from identity theft, 
              fraud, or other related crime from consumer reports.

                        TITLE IX--MISCELLANEOUS

Sec. 901. Definitions.
Sec. 902. Technical correction related to risk-based pricing notices.
Sec. 903. FCRA findings and purpose; voids certain contracts not in the 
              public interest.

     SEC. 3. FINDINGS.

       Congress finds the following:
       (1) General findings on credit reporting.--
       (A) Consumer reporting agencies (``CRAs'') are companies 
     that collect, compile, and provide information about 
     consumers in the form of consumer reports for certain 
     permissible statutory purposes under the Fair Credit 
     Reporting Act (15 U.S.C. 1681 et seq.) (``FCRA''). The three 
     largest CRAs in this country are Equifax, TransUnion, and 
     Experian. These CRAs are referred to as nationwide CRAs and 
     the reports that they prepare are commonly referred to as 
     credit reports. Furnishers, such as creditors, lenders, and 
     debt collection agencies, voluntarily submit information to 
     CRAs about their accounts such as the total amount for each 
     loan or credit limit for each credit card and the consumer's 
     payment history on these products. Reports also include 
     identifying information about a consumer, such as their 
     birthdate, previous mailing addresses, and current and 
     previous employers.
       (B) In a December 2012 paper, ``Key Dimensions and 
     Processes in the U.S. Credit Reporting System: A review for 
     how the nation's largest credit bureaus manage consumer 
     data'', the Bureau of Consumer Financial Protection 
     (``Consumer Bureau'') noted that the three nationwide CRAs 
     maintain credit files on approximately 200 million adults and 
     receive information from about 10,000 furnishers. On a 
     monthly basis, these furnishers provide information on over 
     1.3 billion consumer credit accounts or other trade lines.
       (C) The 10 largest institutions furnishing credit 
     information to each of the nationwide CRAs account for more 
     than half of all accounts reflected in consumers' credit 
     files.
       (D) Consumer reports play an increasingly important role in 
     the lives of American consumers. Most creditors, for example, 
     review these reports to make decisions about whether to 
     extend credit to consumers and what terms and conditions to 
     offer them. As such, information contained in these reports 
     affects whether a person is able to get a private education 
     loan to pay for college costs, to secure a mortgage loan to 
     buy a home, or to obtain a credit card, as well as the terms 
     and conditions under which consumer credit products or 
     services are offered to them.
       (E) Credit reports are also increasingly used for many 
     noncredit decisions, including by landlords to determine 
     whether to rent an apartment to a prospective tenant and by 
     employers to decide whether to hire potential job applicants 
     or to offer a promotion to existing employees.
       (F) CRAs have a statutory obligation to verify 
     independently the accuracy and completeness of information 
     included on the reports that they provide.
       (G) The nationwide CRAs have failed to establish and follow 
     reasonable procedures, as required by existing law, to 
     establish the maximum level of accuracy of information 
     contained on consumer reports. Given the repeated failures of 
     these CRAs to comply with accuracy requirements on their own, 
     legislation is intended to provide them with detailed 
     guidance improving the accuracy and completeness of 
     information contained in consumer reports, including 
     procedures, policies, and practices that these CRAs should 
     already be following to ensure full compliance with their 
     existing obligations.
       (H) The presence of inaccurate or incomplete information on 
     these reports can result in substantial financial and 
     emotional harm to consumers. Credit reporting errors can lead 
     to the loss of a new employment opportunity or a denial of a 
     promotion in an existing job, stop someone from being able to 
     access credit on favorable terms, prevent a person from 
     obtaining rental housing, or even trigger mental distress.
       (I) Current industry practices impose an unfair burden of 
     proof on consumers trying to fix errors on their reports.
       (J) Consumer reports containing inaccurate or incomplete 
     credit information also undermine the ability of creditors 
     and lenders to effectively and accurately underwrite and 
     price credit.
       (K) Recognizing that credit reporting affects the lives of 
     almost all consumers in this country and that the 
     consequences of errors on a consumer report can be 
     catastrophic for a consumer, the Consumer Bureau began 
     accepting consumer complaints about credit reporting in 
     October 2012.
       (L) As of early December 2019, the Consumer Bureau has 
     handled approximately 391,560 credit reporting complaints 
     about the top three CRAs, making credit reporting 
     consistently in the top third most-complained-about subject 
     matter on which the Consumer Bureau accepts consumer 
     complaints. Incorrect information in reports and frustrations 
     about burdensome and time-consuming process to disputing 
     items is are consistently top reported concerns from 
     consumers.
       (M) Other common types of credit reporting complaints 
     submitted to the Consumer Bureau related to the improper use 
     of a report, trouble obtaining a report or credit score, 
     CRAs' investigations, and credit monitoring or identity 
     protection.
       (N) In the fall 2019 ``Supervisory Highlights'', the 
     Consumer Bureau noted that one or more of the largest CRAs 
     continue to struggle to adequately oversee furnishers to 
     ensure that they were adhering to the CRA's vetting policies 
     and to establish proper procedures to verify public record 
     information.
       (O) According to the fall 2016 ``Supervisory Highlights'', 
     Consumer Bureau examiners determined that one or more debt 
     collectors never investigated indirect disputes that lacked 
     detail or were not accompanied by attachments with relevant 
     information from the consumer. Examiners also found that 
     notifications sent to consumers about disputes considered 
     frivolous failed to identify for the consumers the type of 
     material that they could provide in order for the debt 
     collector to complete the investigation of the disputed item.
       (P) A February 2014 Consumer Bureau report titled ``Credit 
     Reporting Complaint Snapshot'' found that consumers are 
     confused about the extent to which the nationwide CRAs are 
     required to provide them with validation and documentation of 
     a debt that appears on their credit report.
       (Q) As evidence that the current system lacks sufficient 
     market incentives for CRAs to develop more robust procedures 
     to increase the accuracy and completeness of information on 
     credit reports, litigation discovery documented by the 
     National Consumer Law Center (``NCLC''), as part of a 
     February 2019 report titled ``Automated Injustice Redux: Ten 
     Years after a Key Report, Consumers Are Still Frustrated 
     Trying to Fix Credit Reporting Errors'', showed that at least 
     two of the three largest CRAs use quota systems to force 
     employees to process disputes

[[Page H663]]

     hastily and without the opportunity for conducting meaningful 
     investigations. At least one nationwide CRA only allowed 
     dispute resolution staff five minutes to handle a consumer's 
     call. Furthermore, these CRAs were found to have awarded 
     bonuses for meeting quotas and punished those who didn't meet 
     production numbers with probation.
       (R) Unlike most other business relationships, where 
     consumers can register their satisfaction or unhappiness with 
     a particular credit product or service simply by taking their 
     business elsewhere, consumers have no say in whether their 
     information is included in the CRAs databases and limited 
     legal remedies to hold the CRAs accountable for inaccuracies 
     or poor service.
       (S) Accordingly, despite the existing statutory mandate for 
     CRAs to follow reasonable procedures to assure the maximum 
     possible accuracy of the information whenever they prepare 
     consumer reports, numerous studies, the high volume of 
     consumer complaints submitted to the Consumer Bureau about 
     incorrect information on consumer reports, and supervisory 
     activities by the Consumer Bureau demonstrate that CRAs 
     continue to skirt their obligations under the law.
       (2) Incorrect information on consumer reports.--
       (A) Consumers are entitled to dispute errors on their 
     consumer reports with either the CRA, who issued the report, 
     or directly with furnishers, who supplied the account 
     information to the CRA, and request that mistakes be deleted 
     or removed. Consumers, who believe an investigation has not 
     correctly resolved their dispute, however, have few options, 
     other than requesting that a statement about the dispute be 
     included with their future reports.
       (B) CRAs have a statutory obligation under the FCRA to 
     perform a reasonable investigation by conducting a 
     substantive and searching inquiry when a consumer disputes an 
     item on their report. In doing so, CRAs must conduct an 
     independent review about the accuracy of any disputed item 
     and cannot merely rely on a furnisher's ``rubber-stamp'' 
     verification of the integrity of the information they have 
     provided to CRAs.
       (C) In ``Report to Congress Under Section 319 of the Fair 
     and Accurate Credit Transactions Act of 2003'' released by 
     the Federal Government in December 2012, found that 26 
     percent of survey participants identified at least one 
     potentially material error on their consumer reports, and 13 
     percent experienced a change in their credit score once the 
     error was fixed.
       (D) Consumer Bureau examiners have identified repeated 
     deficiencies with the nationwide CRAs' information 
     collection. In the fall 2019 ``Supervisory Highlights'', the 
     Consumer Bureau noted continued weaknesses with CRAs' methods 
     and processes for assuring maximum possible accuracy in their 
     reports. Examiners also found, with certain exceptions, no 
     quality control policies and procedures in place to test 
     consumer reports for accuracy.
       (E) In its ``Credit Reporting Complaint Snapshot'' released 
     in February 2014, the Consumer Bureau found that consumers 
     were uncertain about the depth and validity of the 
     investigations performed about a disputed item. Consumers 
     also expressed frustration that, even though they provided 
     supporting materials that they believed demonstrated the 
     inaccuracy of the information provided by furnishers, errors 
     continued to remain on their reports.
       (F) In the winter 2015 ``Supervisory Highlights'' released 
     in March 2015, the Consumer Bureau reported that one or more 
     nationwide CRAs failed to adequately fulfill their dispute-
     handling obligations, including by not forwarding to 
     furnishers all relevant information found in letters and 
     supporting documents supplied by consumers when they 
     submitted disputes failing to notify consumers that they had 
     completed investigations, and not providing consumers with 
     the results of the CRAs' reviews about their disputes.
       (G) Consumer Bureau examiners also noted in the fall 2016 
     ``Supervisory Highlights'' released in October 2016 that one 
     or more entities failed to provide adequate guidance and 
     training to staff about how to differentiate FCRA disputes 
     from general customer inquiries, complaints, or debt 
     validation requests. Consumer Bureau supervisors also 
     directed one or more entities to develop and implement 
     reasonable procedures to ensure that direct and indirect 
     disputes are appropriately logged, categorized, and resolved.
       (H) Consumers' increasing frustration about the 
     difficulties of trying to fix credit reporting errors, 
     evidenced through the volume of consumer complaints related 
     to errors submitted to the Consumer Bureau, are also echoed 
     in another Federal Government study issued in January 2015. 
     In the ``Report to Congress under Section 319 for the Fair 
     and Accurate Credit Transactions Act of 2003'', the study 
     found that nearly 70 percent (84 people) of participants from 
     a previous survey that had filed disputes with CRAs continued 
     to believe that at least some of the disputed information 
     remained inaccurate at the time of the follow-up survey. 
     Despite these views, 50 percent (42 people) of the survey 
     participants decided to just give up trying to fix the 
     errors, with only 45 percent (38 people) of them planning to 
     continue to try to resolve their disputes.
       (I) The consistently high volume of consumer complaints 
     submitted to the Consumer Bureau about credit reporting 
     errors, coupled with the largest CRAs' repeated quality 
     control weaknesses found by Consumer Bureau examiners, show 
     that the nationwide CRAs have failed to establish and follow 
     reasonable procedures to assure maximum accuracy of 
     information and to conduct independent investigations of 
     consumers' disputes. These ongoing problems demonstrate the 
     need for legislation to--
       (i) enhance obligations on furnishers to substantiate 
     information and require furnishers to keep records for the 
     same amount of time that adverse information about these 
     accounts may appear on a person's consumer report;
       (ii) eliminate CRAs' discretion to determine the relevancy 
     of materials provided by consumers to support their dispute 
     claims by instead requiring them to pass all material onto 
     furnishers and eliminating CRA's discretion to deem some 
     disputes frivolous or irrelevant when a consumer resubmits a 
     claim that they believe has been inadequately resolved;
       (iii) enhance educational content on CRAs' websites to 
     improve consumers' understanding of the dispute process and 
     to make it easier for all consumers to initiate claims, 
     including by providing these disclosures in other languages 
     besides English; and
       (iv) create a new consumer right to appeal reviews by CRAs 
     and furnishers of the initial disputes.
       (3) Injunctive relief.--
       (A) Despite the fact that the FCRA currently provides 
     implicit authority for injunctive relief, consumers have been 
     prevented from exercising this right against CRAs. 
     Legislation explicitly clarifying this right is intended to 
     underscore congressional intent that injunctive relief should 
     be viewed as a remedy available to consumers.
       (B) Myriad findings by the courts, regulators, consumers, 
     and consumer advocates make clear that CRAs have failed to 
     establish adequate standards for the accuracy and 
     completeness of consumer reports, yet the nationwide CRAs 
     have demonstrated little willingness to voluntarily retool 
     their policies and procedures to fix the problems.
       (C) Providing courts with explicit authority to issue 
     injunctive relief, by telling the CRAs to remedy unlawful 
     practices and procedures, would further CRAs' mandate under 
     the FCRA to assure the maximum possible accuracy and 
     completeness of information contained on credit reports.
       (D) Absent explicit authority to issue injunctions, history 
     suggests that the nationwide CRAs are likely to continue 
     conducting business as usual in treating any monetary 
     settlements with individual consumers and fines imposed by 
     State attorneys general and Federal regulators, simply as the 
     ``cost of doing business''.
       (4) Credit scores.--
       (A) While nationwide CRAs are required by law to supply 
     consumers with a free copy of their credit report annually, 
     they can charge consumers to obtain a credit score 
     disclosure.
       (B) Many consumers do not realize that they have more than 
     just ``one'' credit score. Because the submission of credit 
     information to CRAs is voluntary and not all furnishers 
     submit information to every CRA, the information contained in 
     a report also varies among CRAs. As a result, the credit 
     score generated by each CRA is also likely to vary, resulting 
     in potentially different credit decisions based on an 
     evaluation of different credit reports obtained from 
     different CRAs.
       (C) A February 2015 Consumer Bureau report titled 
     ``Consumer Voices on Credit Reports and Scores'' found that 
     consumers had questions about what actions to take to improve 
     their scores once they had seen them, suggesting that 
     additional disclosures and educational content would be 
     helpful to consumers. The Consumer Bureau found that 
     consumers were confused by conflicting advice on how to 
     improve their scores.
       (D) That report also noted that consumers found the process 
     for obtaining consumer reports and credit scores confusing. 
     Consumers also were uncertain about whether, and under what 
     circumstances, they could obtain a consumer report for free.
       (5) Private education loans.--
       (A) The Consumer Bureau's October 2014 report titled 
     ``Annual Report of the CFPB Student Loan Ombudsman'' noted 
     many private education loan borrowers, who sought to 
     negotiate a modified repayment plan when they were 
     experiencing a period of financial distress, were unable to 
     get assistance from their loan holders, which often resulting 
     in them defaulting on their loans. This pattern resembles the 
     difficulty that a significant number of mortgage loan 
     borrowers experienced when they sought to take responsible 
     steps to work with their mortgage loan servicer to avoid 
     foreclosure during the Great Recession.
       (B) Although private student loan holders may allow a 
     borrower to postpone payments while enrolled in school full-
     time, many limit this option to a certain time period, 
     usually 48 to 66 months. This limited time period may not be 
     sufficient for those who need additional time to obtain their 
     degree or who want to continue their education by pursing a 
     graduate or professional degree. The Consumer Bureau found 
     that borrowers who were unable to make payments often 
     defaulted or had their accounts sent to collections before 
     they were even able to graduate.
       (6) Deceptive practices at certain proprietary education 
     institutions and career education programs.--
       (A) NCLC cited the proliferation of law enforcement actions 
     against many for-profit schools in its June 2014 report, 
     titled ``Ensuring Educational Integrity: 10 Steps to Improve 
     State Oversight of For-profit Schools'', to demonstrate the 
     pervasive problem in this sector of targeting low-income 
     students with deceptive high-pressure sales techniques 
     involving inflated job placement rates and misleading data on 
     graduate wages, and false representations about the 
     transferability of credits and the employability of graduates 
     in occupations that require licensure. Student loan borrowers 
     at these schools may be left with nothing but worthless 
     credentials and large debt. Those who default on their 
     student loans face years with damaged credit that will 
     adversely impact their ability to rent or buy homes, purchase 
     cars, and find employment.

[[Page H664]]

       (B) The closure and bankruptcy of Corinthian Colleges, 
     which was found to have deceived students by steering them 
     into high-interest student loans based on misleading 
     graduation rates and employment data, is a good example of 
     the problem. Even after its closure, many Corinthian students 
     remained saddled with student loan debt, worthless degrees, 
     and few prospects for employment.
       (C) Attending a two-year, for-profit college costs, on 
     average, four times as much as attending a community college. 
     Students at for-profit colleges represent only about 11 
     percent of the total higher education population but a 
     startling 44 percent of all Federal student loan defaults, 
     according to the United States Department of Education 
     (``DOE'').
       (D) According to NCLC, a disproportionate number of for-
     profit students are low-income and people of color. These 
     schools target veterans, working parents, first-generation 
     students, and non-English speaking students, who may be more 
     likely than their public or private nonprofit school 
     counterparts to drop out, incur enormous student debt, and 
     default on this debt. In the 2011-2012 school year, 28 
     percent of African Americans and 15 percent of Latinos 
     attending four-year institutions were enrolled in a for-
     profit school, compared to 10 percent of Whites.
       (E) As highlighted in a press release titled ``Obama 
     Administration Announces Final Rules to Protect Students from 
     Poor-Performing Career College Programs'', that was issued by 
     the DOE on October 30, 2014, ``[t]oo often, students at 
     career colleges--including thousands of veterans--are charged 
     excessive costs, but don't get the education they paid for. 
     Instead, students in such programs are provided with poor 
     quality training, often for low-wage jobs or in occupations 
     where there are simply no job opportunities. They find 
     themselves with large amounts of debt and, too often, end up 
     in default. In many cases, students are drawn into these 
     programs with confusing or misleading information.''.
       (7) Medical debt.--
       (A) Research by the Consumer Bureau has found that the 
     inclusion of medical collections on consumer reports has 
     unfairly reduced consumers' credit scores.
       (B) The Consumer Bureau's review of 5 million anonymized 
     credit files from September 2011 to September 2013, for 
     example, found that credit scores may underestimate a 
     person's creditworthiness by up to 10 points for those who 
     owe medical debt, and may underestimate a person's 
     creditworthiness by up to 22 points after the medical debt 
     has been paid. For consumers with lower credit scores, 
     especially those on the brink of what is considered subprime, 
     a 10 to 22 point decrease in their credit scores can have a 
     significant impact on their lives, including by affecting 
     whether they are able to qualify for credit and, if so, the 
     terms and conditions under which it is extended to them.
       (C) The Consumer Bureau found that half of all collections 
     trade lines that appear on consumer reports are related to 
     medical bills claimed to be owed to hospitals and other 
     medical providers. These trade lines affect the reports of 
     nearly 1/5 of all consumers in the credit reporting system.
       (D) The Consumer Bureau has found that there are no 
     objective or enforceable standards that determine when a debt 
     can or should be reported as a collection trade line. Because 
     debt buyers and collectors determine whether, when, and for 
     how long to report a collection account, there is only a 
     limited relationship between the time period reported, the 
     severity of a delinquency, and when or whether a collection 
     trade line appears on a consumer's credit report.
       (E) Medical bills can be complex and confusing for many 
     consumers, which results in consumers' uncertainty about what 
     they owe, to whom, when, or for what, that may cause some 
     people, who ordinarily pay their bills on time, to delay or 
     withhold payments on their medical debts. This uncertainty 
     can also result in medical collections appearing on consumer 
     reports. In a December 2014 report titled ``Consumer Credit 
     Reports: A Study of Medical and Non-Medical Collections'', 
     the Consumer Bureau found that a large portion of consumers 
     with medical collections show no other evidence of financial 
     distress and are consumers who ordinarily pay their other 
     financial obligations on time. Unlike with most credit 
     products or services, such as credit cards, installment 
     loans, utilities, or wireless or cable services that have 
     contractual account disclosures describing the terms and 
     conditions of use, most consumers are not told what their 
     out-of-pocket medical costs will be in advance. Consumers 
     needing urgent or emergency care rarely know, or are 
     provided, the cost of a medical treatment or procedure before 
     the service is rendered.
       (F) The Consumer Bureau concluded that the presence of 
     medical collections is less predictive of future defaults or 
     serious delinquencies than the presence of a nonmedical 
     collection in a study titled ``Data Point: Medical Debt and 
     Credit Scores'', issued in May 2014.
       (G) FICO's latest credit scoring model, ``FICO 9'', changes 
     the treatment of paid collections to disregard any collection 
     matters that the consumer has paid in full. FICO 9, however, 
     is not yet widely used by lenders.
       (H) VantageScore's latest credit scoring model, 
     ``VantageScore 4.0'', will be available in the fall of 2017. 
     This model will penalize medical collections less than non-
     medical ones.
       (I) The three nationwide CRAs entered into a settlement 
     agreement with the New York State attorney general in 2015 to 
     address deficiencies in their dispute resolution process and 
     enhance the accuracy of items on reports. These policy 
     changes will be implemented in a three-phrased rollout, 
     culminating by June 2018. Subsequently, these CRAs entered 
     into a cooperative agreement with 31 State Attorneys General, 
     which was the basis of the creation of the National Consumer 
     Assistance Plan (``NCAP'') to change some of their business 
     practices.
       (J) While the CRAs appear to be voluntarily adopting policy 
     changes on a nationwide basis, they are not obligated to do 
     so for consumers who reside in States that are not party to 
     any of the consent orders.
       (K) As a result of the settlement agreements, the three 
     nationwide CRAs will set a 180-day waiting period before 
     including medical collections on a report and will remove a 
     medical collection from a report once it is paid by an 
     insurance company. While this change will benefit many, once 
     a medical collection appears on a report, it will only be 
     deleted or suppressed if it is found to have been the 
     insurance company's obligation to pay and the insurer pays 
     it. Given the research showing there is little predictive 
     value in medical debt information, medical collections that 
     are paid or settled should quickly be removed from a report, 
     regardless of who pays or settles this debt.
       (8) Financial abuse by known persons.--
       (A) Financial abuse and exploitation are frequently 
     associated with domestic violence. This type of abuse may 
     result in fraudulent charges to a credit card or having 
     fraudulent accounts created by the abuser in the survivor's 
     name that could affect ratings by CRAs. Financial abuse may 
     also result in the survivor's inability to make timely 
     payments on their valid obligations due to loss or changes in 
     income that can occur when their abuser steals from or 
     coerces the survivor to relinquish their paychecks or savings 
     that could affect ratings by CRAs.
       (B) By racking up substantial debts in the survivor's name, 
     abusers are able to exercise financial control over their 
     survivors to make it economically difficult for the survivor, 
     whose credit is often destroyed, to escape the situation.
       (C) Domestic abuse survivors with poor credit are likely to 
     face significant obstacles in establishing financial 
     independence from their abusers. This can be due, in part, 
     because consumer reports may be used when a person attempts 
     to obtain a checking account, housing, insurance, utilities, 
     employment, and even a security clearance as required for 
     certain jobs.
       (D) Providing documentation of identity (``ID'') theft in 
     order to dispute information on one's consumer report can be 
     particularly challenging for those who know their financial 
     abuser.
       (E) While it is easier for consumers who obtain a police 
     report to remove fraudulent information from their consumer 
     report and prevent it from reappearing in the future, 
     according to the Empire Justice Center, safety and other 
     noncredit concerns may impact the capacity of a survivor of 
     financial abuse committed by a known person to turn to law 
     enforcement to get a police report.
       (F) According to the Legal Aid Society in New York, 
     domestic abuse survivors, seeking to remove adverse 
     information stemming from financial abuse by contacting their 
     furnishers directly, are likely to face skepticism about 
     claims of ID theft perpetrated by a partner because of an 
     assumption that they are aware of, and may have been 
     complicit in, the activity which the survivor alleges stems 
     from financial abuse.
       (9) Deceptive and misleading marketing practices.--
       (A) The Consumer Bureau's February 2015 report titled 
     ``Consumer Voices on Credit Reports and Scores'' found that 
     some consumers did not obtain a copy of their consumer report 
     due to concerns about security or of being trapped into 
     purchasing unwanted products like an additional report or a 
     credit monitoring service.
       (B) In January 2017, the Consumer Bureau fined TransUnion 
     and Equifax for deceptively marketing credit scores for 
     purchase by consumers as the same credit scores typically 
     used by lenders to determine creditworthiness and for luring 
     consumers into costly subscription services that were 
     advertised as ``free'' or ``$1'' that automatically charged 
     recurring fees unless cancelled by consumers. The Consumer 
     Bureau also found that Equifax was illegally advertising its 
     products on webpages that consumers accessed through 
     AnnualCreditReport.com before consumers obtained their free 
     disclosures. Because of these troubling practices, TransUnion 
     was ordered to pay $13.9 million in restitution to harmed 
     consumers and a civil penalty of $3 million to the Consumer 
     Bureau. Equifax was ordered to pay more than $3.7 million to 
     affected consumers as well as a civil money penalty of $2.5 
     million to the Consumer Bureau. As part of the consent 
     orders, the CRAs are also supposed to change the way that 
     they sell their products to consumers. The CRAs must also 
     obtain consumers' express consent before enrolling them into 
     subscription services as well as make it easer for consumers 
     to cancel these programs.
       (C) The Consumer Bureau fined the other nationwide CRA--
     Experian--in March 2017 for deceiving consumers about the use 
     of credit scores that it marketed and sold to consumers as 
     credit scores that were used by lenders and for illegally 
     advertising its products on web pages that consumers accessed 
     through AnnualCreditReport.com before they obtained their 
     free annual disclosures. Experian was ordered to pay more 
     than $3.7 million in restitution to harmed consumers and a 
     civil monetary penalty of $2.5 million to the Consumer 
     Bureau.
       (D) The Consumer Bureau's January and March 2017 consent 
     orders with the three nationwide CRAs show that these CRAs 
     have enticed consumers into purchasing products and services 
     that they may not want or need, in some instances by 
     advertising products or services ``free'' that automatically 
     converted into an ongoing subscription service at the regular 
     price unless cancelled by the consumer. Although these CRAs 
     must now change their deceptive marketing practices, 
     codifying these duties is an appropriate way to ensure that 
     these companies never revert back to such misleading tactics.

[[Page H665]]

       (E) Given the ubiquitous use of consumer reports in 
     consumers' lives and the fact that consumers' participation 
     in the credit reporting system is involuntary, CRAs should 
     also prioritize providing consumers with the effective means 
     to safeguard their personal and financial information and 
     improve their credit standing, rather than seeking to exploit 
     consumers' concerns and confusion about credit reporting and 
     scoring, to boost their companies' profits.
       (F) Vulnerable consumers, who have legitimate concerns 
     about the security of their personal and financial 
     information, deserve clear, accurate, and transparent 
     information about the credit reporting tools that may be 
     available to them, such as fraud alerts and freezes.
       (10) Clarity in credit scoring.--
       (A) The February 2015 report of the Bureau of Consumer 
     Financial Protection titled ``Consumer Voices on Credit 
     Reports and Scores'' found that some consumers are reluctant 
     to comparison shop for loans and other types of consumer 
     credit products out of fear that they will lower their credit 
     scores by doing so.
       (B) The Consumer Bureau found that one of the most common 
     barriers for people in reviewing their own credit reports and 
     shopping for the best credit terms was a lack of 
     understanding of the differences between ``soft'' and 
     ``hard'' inquiries and whether requesting a copy of their own 
     report would adversely impact their credit standing.
       (C) The Bureau of Consumer Financial Protection revealed 
     that consumers with accurate perceptions of their 
     creditworthiness may be better equipped to shop for favorable 
     credit terms.
       (11) Credit checks and employment decisions.--
       (A) The use of consumer reports as a factor in making 
     hiring decisions has been found to be prevalent in a diverse 
     array of occupations, and is not limited to certain high-
     level management or executive positions.
       (B) According to the California Labor Federation, only 25 
     percent of employers researched the credit history of job 
     applicants in 1998. However, this practice had increased to 
     43 percent by 2006 and to 60 percent by 2011.
       (C) A study titled ``Do Job Applicant Credit Histories 
     Predict Job Performance Appraisal Ratings or Termination 
     Decisions?'', published in 2012, found that, while credit 
     history might conceptually measure a person's level of 
     responsibility, ability to meet deadlines, dependability, or 
     integrity, it does not, in practice, actually predict an 
     employee's performance or likelihood to quit. Credit reports 
     contain many inaccuracies and credit history can be 
     contaminated by events that are sometimes outside a person's 
     control, such as a sudden medical expense after an accident 
     or the loss of a job during an economic downturn. The study 
     found that there is no benefit from using credit history to 
     predict job performance or turnover.
       (D) Despite the absence of data showing a correlation 
     between job performance and credit-worthiness, employers 
     continue to use credit checks as a proxy for assessing 
     character and integrity. According to a 2012 Society for 
     Human Resource Management survey, organizations indicated 
     that they used credit checks on job candidates primarily to 
     reduce or prevent theft and embezzlement and to minimize 
     legal liability for negligent hiring.
       (E) The use of credit checks for employment purposes 
     creates a true ``catch-22'' for unemployed people with 
     impaired credit. For example, the financial hardship caused 
     by losing a job may cause some unemployed individuals to make 
     late or partial payments on their bills, but their poor 
     credit standing caused by this negative information on their 
     consumer report can also impede their chances of obtaining a 
     new job to end their financial distress.
       (F) A September 2014 report by the New York City Council's 
     Committee on Civil Rights noted that, for those who have been 
     unemployed for an extended period of time and whose credit 
     has suffered as they fell behind on bills, the use of credit 
     reports in the hiring process can exacerbate and perpetuate 
     an already precarious situation.
       (G) In a March 2013 Demos report titled ``Discredited: How 
     Employment Credit Checks Keep Out Qualified Workers Out of a 
     Job'', one in four survey participants who were unemployed 
     said that a potential employer had requested to check their 
     credit report as part of a job application. Among job 
     applicants with blemished credit histories in the survey, one 
     in seven had been told that they were not being hired because 
     of their credit history.
       (H) While job applicants must give prior approval for a 
     prospective employer to pull their credit reports under the 
     FCRA, this authorization, as a practical matter, does not 
     constitute an effective consumer protection because an 
     employer may reject any job applicant who refuses a credit 
     check.
       (I) Some negative information on a report may stem from 
     uncontrollable circumstances, or significant life events in a 
     consumer's life, such as a medical crisis or a divorce. Demos 
     found that poor credit is associated with household 
     unemployment, lack of health coverage, and medical debt, 
     which are factors that reflect economic conditions in the 
     country and personal misfortune that have little relationship 
     with how well a job applicant would perform at work.
       (J) In October 2011, FICO noted that from 2008 to 2009 
     approximately 50 million people experienced a 20-point drop 
     in their credit scores and about 21 million saw their scores 
     decline by more than 50 points. While the Great Recession 
     reduced many consumers' credit scores due to foreclosures and 
     other financial hardships, the financial crisis had a 
     particularly harsh impact on African Americans and Latinos, 
     as racial and ethnic minorities and communities of color were 
     frequently targeted by predatory mortgage lenders who steered 
     borrowers into high-cost subprime loans, even when these 
     borrowers would have qualified for less costly prime credit.
       (K) A May 2006 Brookings Institution report titled ``Credit 
     Scores, Reports, and Getting Ahead in America'' found that 
     counties with a relatively higher proportion of racial and 
     ethnic minorities in the United States tended to have lower 
     credit scores compared with counties that had a lower 
     concentration of communities of color.
       (L) Studies have consistently found that African American 
     and Latino households tend, on average, to have lower credit 
     scores than White households. The growing use of credit 
     checks, therefore, may disproportionately screen otherwise 
     qualified racial and ethnic minorities out of jobs, leading 
     to discriminatory hiring practices, and further exacerbating 
     the trend where unemployment for African American and Latino 
     communities is elevated well above the rate of Whites.
       (M) A 2012 Demos survey found that 65 percent of White 
     respondents reported having good or excellent credit scores 
     while over half of African American households reported only 
     having fair or bad credit.
       (12) Deceptive and misleading marketing practices.--
       (A) The Consumer Bureau's February 2015 report titled 
     ``Consumer Voices on Credit Reports and Scores'' found that 
     some consumers did not obtain a copy of their consumer report 
     due to concerns about security or of being trapped into 
     purchasing unwanted products like an additional report or a 
     credit monitoring service.
       (B) In January 2017, the Consumer Bureau fined TransUnion 
     and Equifax for deceptively marketing credit scores for 
     purchase by consumers as the same credit scores typically 
     used by lenders to determine creditworthiness and for luring 
     consumers into costly subscription services that were 
     advertised as ``free'' or ``$1'' that automatically charged 
     recurring fees unless cancelled by consumers. The Consumer 
     Bureau also found that Equifax was illegally advertising its 
     products on webpages that consumers accessed through 
     AnnualCreditReport.com before consumers obtained their free 
     disclosures. Because of these troubling practices, TransUnion 
     was ordered to pay $13.9 million in restitution to harmed 
     consumers and a civil penalty of $3 million to the Consumer 
     Bureau. Equifax was ordered to pay more than $3.7 million to 
     affected consumers as well as a civil money penalty of $2.5 
     million to the Consumer Bureau. As part of the consent 
     orders, the CRAs are also supposed to change the way that 
     they sell their products to consumers. The CRAs must also 
     obtain consumers' express consent before enrolling them into 
     subscription services as well as make it easer for consumers 
     to cancel these programs.
       (C) The Consumer Bureau fined the other nationwide CRA--
     Experian--in March 2017 for deceiving consumers about the use 
     of credit scores that it marketed and sold to consumers as 
     credit scores that were used by lenders and for illegally 
     advertising its products on web pages that consumers accessed 
     through AnnualCreditReport.com before they obtained their 
     free annual disclosures. Experian was ordered to pay more 
     than $3.7 million in restitution to harmed consumers and a 
     civil monetary penalty of $2.5 million to the Consumer 
     Bureau.
       (D) The Consumer Bureau's January and March 2017 consent 
     orders with the three nationwide CRAs show that these CRAs 
     have enticed consumers into purchasing products and services 
     that they may not want or need, in some instances by 
     advertising products or services ``free'' that automatically 
     converted into an ongoing subscription service at the regular 
     price unless cancelled by the consumer. Although these CRAs 
     must now change their deceptive marketing practices, 
     codifying these duties is an appropriate way to ensure that 
     these companies never revert back to such misleading tactics.
       (E) Given the ubiquitous use of consumer reports in 
     consumers' lives and the fact that consumers' participation 
     in the credit reporting system is involuntary, CRAs should 
     also prioritize providing consumers with the effective means 
     to safeguard their personal and financial information and 
     improve their credit standing, rather than seeking to exploit 
     consumers' concerns and confusion about credit reporting and 
     scoring, to boost their companies' profits.
       (F) Vulnerable consumers, who have legitimate concerns 
     about the security of their personal and financial 
     information, deserve clear, accurate, and transparent 
     information about the credit reporting tools that may be 
     available to them, such as fraud alerts and freezes.
       (13) Protections for consumers' credit information.--
       (A) Despite heightened awareness, incidents of ID theft 
     continue to rise. In February 2015, the Federal Government 
     reported that ID theft was the top consumer complaint that it 
     received for the 15th consecutive year. As these incidents 
     increase, consumers experience significant financial loss and 
     emotional distress from the inability to safeguard 
     effectively and inexpensively their credit information from 
     bad actors.
       (B) According to a Carnegie Mellon study, children are 50 
     times more likely than adults to have their identities 
     stolen. Child identities are valuable to thieves because most 
     children do not have existing files, and their parents may 
     not notice fraudulent activity until their child applies for 
     a student loan, a job, or a credit card. As a result, the 
     fraudulent activity of the bad actors may go undetected for 
     years.
       (C) Despite the increasing incidents of children's ID 
     theft, parents who want to proactively prevent their children 
     from having their identity stolen, may not be able to do so. 
     Only one of the three nationwide CRAs currently allows 
     parents from any State to set up a freeze for a minor child. 
     At the other two nationwide CRAs, parents can only obtain a 
     freeze after a child has become an ID theft victim because, 
     it is only at this point, that these CRAs have an existing

[[Page H666]]

     credit file for the child. While many States have enacted 
     laws to address this problem, there is no existing Federal 
     law.
       (D) According to Javelin Strategy & Research's 2015 
     Identity Fraud study, $16 billion was stolen by fraudsters 
     from 12.7 million American consumers in 2014. Similarly, the 
     United States Department of Justice found an estimated 7 
     percent of all residents age 16 or older (about 17.6 million 
     persons) in this country were victims of one or more 
     incidents of ID theft in 2014, and the number of elderly 
     victims age 65 or older (about 86 percent) increased from 2.1 
     million in 2012 to 2.6 million in 2014.
       (E) Consumers frequently express concern about the security 
     of their financial information. According to a 2015 
     MasterCard survey, a majority of consumers (77 percent) have 
     anxiety about the possibility that their financial 
     information and Social Security numbers may be stolen or 
     compromised, with about 55 percent of consumers indicating 
     that they would rather have naked pictures of themselves 
     leaked online than have their financial information stolen.
       (F) That survey also revealed that consumers' fears about 
     the online security of their financial information even 
     outweighed consumers' worries about other physical security 
     dangers such as having their houses robbed (59 percent) or 
     being pickpocketed (46 percent).
       (G) According to Consumer Reports, roughly 50 million 
     American consumers spent about $3.5 billion in 2010 to 
     purchase products aimed at protecting their identity, with 
     the annual cost of these services ranging from $120 to $300. 
     As risks to consumers' personal and financial information 
     continue to grow, consumers need additional protections to 
     ensure that they have fair and reasonable access to the full 
     suite of ID theft and fraud prevention measures that may be 
     right for them.

     SEC. 4. EFFECTIVE DATE.

       Except as otherwise specified, the amendments made by this 
     Act shall take effect 2 years after the date of the enactment 
     of this Act.

     SEC. 5. DISCRETIONARY SURPLUS FUND.

       (a) In General.--The dollar amount specified under section 
     7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 
     289(a)(3)(A)) is reduced by $26,000,000.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on September 30, 2029.

              TITLE I--IMPROVEMENTS TO THE DISPUTE PROCESS

     SEC. 101. DISPUTE PROCEDURES AND DISCLOSURES RELATING TO 
                   REINVESTIGATIONS.

       (a) In General.--Section 611(a) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681i(a)) is amended to read as 
     follows:
       ``(a) Reinvestigations of Disputed Information by a 
     Consumer Reporting Agency.--
       ``(1) Reinvestigations required.--
       ``(A) In general.--Subject to subsection (f), if the 
     completeness or accuracy of any item of information contained 
     in a consumer's file at a consumer reporting agency is 
     disputed by the consumer and the consumer notifies the agency 
     (either directly or indirectly through a reseller or an 
     authorized third party) of such dispute, the agency shall, 
     free of charge--
       ``(i) conduct a reasonable reinvestigation using the 
     process described in paragraph (3) to determine whether the 
     disputed information is inaccurate, incomplete, or cannot be 
     verified;
       ``(ii) notify the consumer that a notation described in 
     section 605(e) will be added to the consumer's file until the 
     reinvestigation has been completed and that such notation can 
     be removed at the request of the consumer; and
       ``(iii) before the end of the 30-day period beginning on 
     the date on which the consumer reporting agency receives the 
     notice of the dispute from the consumer or the reseller--

       ``(I) record the current status of the disputed 
     information; or
       ``(II) delete or modify the item in accordance with 
     paragraph (3)(D).

       ``(B) Extension of period to reinvestigate.--Except as 
     provided in subparagraph (C), the 30-day period described in 
     subparagraph (A) may be extended for period not to exceed 15 
     days if the consumer reporting agency receives additional 
     information from the consumer or the reseller regarding the 
     dispute after the date on which the consumer reporting agency 
     notified any person who provided any item of information in 
     dispute under paragraph (2)(A).
       ``(C) Limitations on extension of period to 
     reinvestigate.--Subparagraph (B) shall not apply to any 
     reinvestigation in which, during the 30-day period described 
     in subparagraph (A), the disputed information is found to be 
     inaccurate or incomplete, or the consumer reporting agency 
     determines that the disputed information cannot be verified.
       ``(2) Prompt notice of dispute to furnisher of information; 
     provision of information regarding dispute provided by the 
     consumer or reseller.--
       ``(A) In general.--Before the end of the period of 5 
     business days beginning on the date on which a consumer 
     reporting agency receives notice of a dispute from any 
     consumer or reseller under paragraph (1)(A), the consumer 
     reporting agency shall provide notification of the dispute to 
     any person who provided any item of information in dispute, 
     at the address and in the manner established with such 
     person. The notice shall include all information, including 
     substantiating documents, regarding the dispute that was 
     submitted to the consumer reporting agency.
       ``(B) Provision of additional information regarding dispute 
     after notification to the furnisher of information.--If a 
     consumer reporting agency receives additional information 
     regarding the dispute from the consumer or reseller after the 
     agency provides the notification described under subparagraph 
     (A) and before the end of the 30-day period described in 
     paragraph (1)(A), the consumer reporting agency shall, not 
     later than 3 business days after receiving such information, 
     provide such information to the person who provided the 
     information in dispute.
       ``(3) Reasonable standards for consumer reporting agencies 
     for conducting reinvestigations and resolving disputes 
     submitted by consumers.--
       ``(A) In general.--In conducting a reinvestigation of 
     disputed information, a consumer reporting agency shall, at a 
     minimum--
       ``(i) maintain sufficient resources and trained staff, 
     commensurate with the volume and complexity of disputes 
     received or reasonably anticipated to be received, to 
     determine whether the disputed information is accurate, 
     complete, or can be verified by the person who provided the 
     information;
       ``(ii) ensure that all staff involved at any level of the 
     reinvestigation process, including any individual with 
     ultimate authority over determining whether the disputed 
     information is inaccurate, incomplete, or cannot be verified, 
     are located within the United States;
       ``(iii) verify that the personally identifiable information 
     of the consumer submitting the dispute matches the personally 
     identifiable information contained in the consumer's file, 
     and that such information is accurate and complete;
       ``(iv) verify that the consumer reporting agency has a 
     record of the information being disputed; and
       ``(v) conduct a reasonable review that considers all 
     information, including substantiating documents, provided by 
     the consumer or reseller.
       ``(B) Consumer reporting.--The consumer reporting agency 
     shall not impose any limitation or otherwise impede the 
     ability of a consumer to submit information about the 
     disputed item.
       ``(C) Independent analysis.--The reinvestigation conducted 
     under subparagraph (A) shall be an independent analysis, 
     separate from any investigation by a reseller or a person who 
     provided the disputed information.
       ``(D) Deletion or modification of information contained in 
     a consumer file.--If the disputed information is found to be 
     inaccurate, incomplete, or cannot be verified, the dispute 
     resolution staff of the consumer reporting agency shall have 
     the direct authority to delete or modify such information in 
     the consumer's file, as appropriate, during the 30-day period 
     described in paragraph (1)(A), shall promptly notify the 
     consumer of the results of the reinvestigation as described 
     in paragraph (4), and shall promptly notify any person who 
     provided such information to the consumer reporting agency of 
     the modification or deletion made to the consumer's file.
       ``(4) Notice to consumer of results of reinvestigation.--
       ``(A) In general.--Not later than 5 business days after the 
     conclusion of a reinvestigation conducted under this 
     subsection, the consumer reporting agency shall provide 
     written notice to the consumer of the results of the 
     reinvestigation by postal mail or, if authorized by the 
     consumer for that purpose, by other means available to the 
     agency.
       ``(B) Contents of notice to consumer of results of 
     reinvestigation.--The notice described in subparagraph (A) 
     shall include--
       ``(i) a statement that the reinvestigation of the disputed 
     information has been completed;
       ``(ii) a statement informing the consumer as to whether the 
     disputed information was determined to be inaccurate, 
     incomplete, or unverifiable, including a statement of the 
     specific reasons supporting the determination;
       ``(iii) if information in the consumer's file has been 
     deleted or modified as a result of the reinvestigation--

       ``(I) a copy of the consumer report and credit score or 
     educational score (if applicable) that is based upon the 
     consumer's revised file;
       ``(II) a statement identifying the specific information 
     from the consumer's file that was deleted or modified because 
     such information was determined to be inaccurate, incomplete, 
     or unverifiable by the consumer reporting agency;
       ``(III) a statement that the consumer has the right, free 
     of charge, to obtain an additional consumer report and credit 
     score or educational credit score (if applicable) within the 
     12-month period following the date of the conclusion of the 
     reinvestigation, regardless of whether the consumer obtained 
     or will obtain a free annual consumer report and credit score 
     or educational score (if applicable) under section 612; and
       ``(IV) a statement that the consumer has the right, free of 
     charge, to request under subsection (d) that the consumer 
     reporting agency furnish notifications of the consumer's 
     revised report;

       ``(iv) a description of the procedure used by the dispute 
     resolution staff of the consumer reporting agency to 
     determine the accuracy or completeness of the information, 
     including the business name, mailing address, telephone 
     number, and Internet website address (if available) of any 
     person who provided information who was contacted by the 
     staff in connection with the determination;
       ``(v) a statement that the consumer has the right, free of 
     charge, to add a narrative statement to the consumer's file 
     disputing the accuracy or completeness of the information, 
     regardless of the results of the reinvestigation by the 
     agency, and the process for submitting such a narrative 
     pursuant to subsection (b);
       ``(vi) a copy of all information relating to the consumer 
     that was used by the consumer reporting agency in carrying 
     out the reinvestigation and relied upon as the basis for the 
     determination about the accuracy and completeness of the 
     disputed information;
       ``(vii) a statement that a consumer may, free of charge, 
     challenge the results of the reinvestigation by appeal within 
     120 days after the date the notice of the results of the 
     reinvestigation was provided to the consumer and the process 
     for submitting an appeal;

[[Page H667]]

       ``(viii) a statement informing the consumer that a notation 
     described in section 605(e) will be added to the file of the 
     consumer during the period in which the consumer appeals the 
     results of a reinvestigation and that such notation can be 
     removed at the request of the consumer; and
       ``(ix) any other information, as determined by the Bureau.
       ``(5) Requirements relating to reinsertion of previously 
     deleted or modified material.--
       ``(A) Certification of new determination that item is 
     accurate or complete.--A consumer reporting agency may not 
     reinsert into a consumer's file any information that was 
     previously deleted or modified pursuant to paragraph (3)(D), 
     unless the person who provided the information--
       ``(i) requests that the consumer reporting agency reinsert 
     such information;
       ``(ii) submits a written certification that the information 
     is accurate and complete; and
       ``(iii) provides a statement describing the specific 
     reasons why the information should be inserted.
       ``(B) Notice to consumer before reinsertion can occur.--
     Upon receipt of a request for reinsertion of disputed 
     information under subparagraph (A), the consumer reporting 
     agency shall, not later than 5 business days before the 
     consumer reporting agency reinserts the information into the 
     consumer's file, notify the consumer in writing of such 
     request for reinsertion. Such notice shall include--
       ``(i) the business name, mailing address, telephone number, 
     and Internet website address (if available) of any person who 
     provided information to or contacted the consumer reporting 
     agency in connection with the reinsertion;
       ``(ii) a copy of the information relating to the consumer, 
     the certification that the information is accurate or 
     complete, and the statement of the reasons supporting 
     reinsertion provided by the person who provided the 
     information to the consumer reporting agency under 
     subparagraph (A);
       ``(iii) a statement that the consumer may obtain, free of 
     charge and within the 12-month period following the date the 
     notice under this subparagraph was issued, a consumer report 
     and credit score or educational score (if applicable) from 
     the consumer reporting agency that includes the reinserted 
     information, regardless of whether the consumer obtained or 
     will obtain a free annual consumer report and credit score or 
     educational credit score (if applicable) under section 612;
       ``(iv) a statement that the consumer may appeal the 
     determination that the previously deleted or modified 
     information is accurate or complete and a description of the 
     procedure for the consumer to make such an appeal pursuant to 
     subsection (i); and
       ``(v) a statement that the consumer has the right to add a 
     narrative statement, free of charge, to the consumer's file 
     disputing the accuracy or completeness of the disputed 
     information and a description of the process to add such a 
     narrative statement pursuant to subsection (b).
       ``(6) Expedited dispute resolution.--If a consumer 
     reporting agency determines that the information provided by 
     the consumer is sufficient to substantiate that the item of 
     information is inaccurate, incomplete, or cannot be verified 
     by the person who furnished such information, and the 
     consumer reporting agency deletes or modifies such 
     information within 3 business days of receiving notice of the 
     dispute, the consumer reporting agency shall be exempt from 
     the requirements of paragraph (4), if the consumer reporting 
     agency provides to the consumer--
       ``(A) prompt notice confirming the deletion or modification 
     of the information from the consumer's file in writing or by 
     other means, if agreed to by the consumer when the 
     information is disputed;
       ``(B) a statement of the consumer's right to request that 
     the consumer reporting agency furnish notifications of a 
     revised consumer report pursuant to subsection (d);
       ``(C) not later than 5 business days after deleting or 
     modifying the information, a copy of the consumer report and 
     credit score or educational score (if applicable) that is 
     based upon the consumer's revised file; and
       ``(D) a statement that the consumer may obtain, free of 
     charge and within the 12-month period following the date the 
     notice under this paragraph was sent to the consumer, a 
     consumer report and credit score or educational score (if 
     applicable) from the consumer reporting agency, regardless of 
     whether the consumer obtained or will obtain their free 
     annual consumer report and credit score or educational score 
     (if applicable) under section 612.
       ``(7) No excuse for failure to conduct reinvestigation.--A 
     consumer reporting agency may not refuse to conduct a 
     reinvestigation under this subsection because the agency 
     determines that the dispute was submitted by an authorized 
     third party, unless the agency has clear and convincing 
     evidence that the third party is not authorized to submit the 
     dispute on the consumer's behalf. If the consumer reporting 
     agency refuses to reinvestigate a dispute for these reasons, 
     it shall provide a clear and conspicuous notice to the 
     consumer explaining the reasons for the refusal and 
     describing the specific information the consumer is required 
     to provide for the agency to conduct the reinvestigation.''.
       (b) Ensuring Consumer Reporting Agencies Furnish Certain 
     Notifications Without Charge.--Section 611(d) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681i(d)) is amended by 
     inserting ``and without charge'' after ``request of the 
     consumer''.
       (c) Including Specialty Consumer Reporting Agencies in 
     Reports.--
       (1) In general.--Section 611(e) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681i(e)) is amended by inserting 
     ``or 603(x)'' after ``section 603(p)''.
       (2) Technical amendment.--Section 611(e)(1) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681i(e)(1)) is amended by 
     striking ``The Commission'' and inserting ``The Bureau''.
       (d) Conforming Amendments.--The Fair Credit Reporting Act 
     (15 U.S.C. 1681 et seq.) is further amended--
       (1) in section 605B(c)(2), by striking ``section 
     611(a)(5)(B)'' and inserting ``section 611(a)(5)'';
       (2) in section 611--
       (A) in subsection (c), by striking ``unless there is 
     reasonable grounds to believe that it is frivolous or 
     irrevelant,''; and
       (B) in subsection (f)(3)--
       (i) in subparagraph (A), by striking ``paragraph (6), (7), 
     or (8) of subsection (a)'' and inserting ``paragraph (4) or 
     (5) of subsection (a)''; and
       (ii) in subparagraph (B), by striking ``in the manner 
     required under paragraph (8)(A)''; and
       (3) in section 623(b)(1)(B), by striking ``relevant'' 
     before ``information''.
       (e) Global Technical Corrections to References to 
     Nationwide Specialty Consumer Reporting Agency.--The Fair 
     Credit Reporting Act (15 U.S.C. 1681 et seq.) is further 
     amended--
       (1) by striking ``section 603(w)'' and inserting ``section 
     603(x)'' each place such term appears; and
       (2) in section 612(a)(1)(A), by striking ``(w)'' and 
     inserting ``(x)''.

     SEC. 102. CONSUMER AWARENESS OF DISPUTE RIGHTS.

       Section 611 of the Fair Credit Reporting Act (15 U.S.C. 
     1681i) is amended by adding at the end the following new 
     subsection:
       ``(h) Increased Consumer Awareness of Dispute Rights.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this subsection, each consumer reporting 
     agency described under subsection (p) or (x) of section 603 
     shall--
       ``(A) establish an Internet website accessible to 
     consumers; and
       ``(B) post on the home page of such website a hyperlink to 
     a separate webpage established and maintained solely for the 
     purpose of providing information to a consumer about how to 
     dispute an item of information in the consumer report of the 
     consumer.
       ``(2) Dispute webpage requirements.--For a consumer 
     reporting agency described under subsection (p) or (x) of 
     section 603, the separate dispute webpage described in 
     paragraph (1)(B)--
       ``(A) may not include any type or form of marketing, 
     advertising, information, or material associated with any 
     products or services offered or sold to consumers;
       ``(B) shall clearly and conspicuously disclose a concise 
     statement regarding how to file a dispute through the agency, 
     free of charge, in the manner and format prescribed by the 
     Bureau;
       ``(C) shall describe the types of documents that will be 
     used by the agency in resolving the dispute, including the 
     business name and mailing address to which a consumer may 
     send such documents;
       ``(D) shall include a clear and concise explanation of and 
     the process for using electronic or other means to submit 
     such documents, free of charge, and without any character or 
     data limitation imposed by the agency;
       ``(E) shall include a statement that the consumer may 
     submit information, free of charge, that the consumer 
     believes will assist the consumer reporting agency in 
     determining the results of the reinvestigation of the 
     dispute;
       ``(F) shall clearly and conspicuously disclose a statement 
     describing the procedure likely to be used by the consumer 
     reporting agency in carrying out a reinvestigation to 
     determine the accuracy or completeness of the disputed item 
     of information, including the time period in which the 
     consumer will be notified of the results of the 
     reinvestigation, and a statement that the agency may extend 
     the reinvestigation period by an additional 15 days if the 
     consumer submits additional information after a certain date; 
     and
       ``(G) shall provide translations of all information on the 
     webpage in each of the 10 most commonly spoken languages, 
     other than English, in the United States, as determined by 
     the Bureau of the Census on an ongoing basis, and in formats 
     accessible to individuals with hearing or vision 
     impairments.''.

     SEC. 103. MAINTENANCE OF RECORDS BY FURNISHERS.

       Section 623 of the Fair Credit Reporting Act (15 U.S.C. 
     1681s-2) is amended by adding at the end the following new 
     subsection:
       ``(f) Duty of Furnishers to Maintain Records of 
     Consumers.--
       ``(1) In general.--A person who furnishes information to a 
     consumer reporting agency relating to a consumer who has an 
     account with that person shall maintain all information 
     necessary to substantiate the accuracy and completeness of 
     the information furnished, including any records establishing 
     the liability and terms and conditions under which credit was 
     extended to a consumer and any payment history with respect 
     to such credit.
       ``(2) Retention period.--Records described under paragraph 
     (1) shall be maintained until the information with respect to 
     which the records relate may no longer be included in a 
     consumer report pursuant to section 605.
       ``(3) Transfer of ownership.--If a person providing 
     information to a consumer reporting agency is acquired by 
     another person, or if another person acquires the right to 
     repayment connected to such information, the acquiring person 
     shall be subject to the requirements of this subsection with 
     respect to such information to the same extent as the person 
     who initially provided such information to the consumer 
     reporting agency. The person selling or transferring the 
     right to repayment shall provide the information described in 
     paragraph (1) to the transferee or the acquirer.''.

[[Page H668]]

  


     SEC. 104. DUTIES OF FURNISHERS RELATING TO DISPUTE 
                   PROCEDURES, NOTICES, AND DISCLOSURES.

       (a) Duty to Provide Accurate and Complete Information.--
     Section 623(a) of the Fair Credit Reporting Act (15 U.S.C. 
     1681s-2(a)) is amended--
       (1) in the subsection heading, by inserting ``and 
     Complete'' after ``Accurate'';
       (2) in paragraph (1)--
       (A) by inserting ``or incomplete'' after ``inaccurate'' 
     each place that term appears; and
       (B) in subparagraph (D), by inserting ``or completeness'' 
     after ``accuracy''; and
       (3) in paragraph (8)--
       (A) in subparagraph (A), by inserting ``and completeness'' 
     after ``accuracy''; and
       (B) in subparagraph (D), by inserting ``or completeness'' 
     after ``accuracy''.
       (b) Negative Information Notices to Consumers.--Section 
     623(a)(7) of the Fair Credit Reporting Act (15 U.S.C. 1681s-
     2(a)(7)) is amended to read as follows:
       ``(7) Duty of furnishers to inform consumers about 
     reporting negative information.--
       ``(A) General negative information warning notice to all 
     consumers prior to furnishing such information.--
       ``(i) In general.--Any person that regularly furnishes 
     negative information to a consumer reporting agency described 
     in subsection (p) or (x) of section 603 about activity on any 
     accounts of a consumer held by such person or transactions 
     associated with credit extended to a consumer by such person 
     shall provide a written general negative information warning 
     notice to each such consumer before such person may furnish 
     any negative information relating to such a consumer.
       ``(ii) Content.--Such notice shall--

       ``(I) be clear and conspicuous;
       ``(II) describe the types of activities that constitute 
     negative information;
       ``(III) inform the consumer that the person may report 
     negative information relating to any such accounts or 
     transactions to a consumer reporting agency described in 
     subsection (p) or (x) of section 603;
       ``(IV) state that the negative information may appear on a 
     consumer report of the consumer for the periods described in 
     section 605 and that during such periods, the negative 
     information may adversely impact the consumer's credit score;
       ``(V) state that in some limited circumstances, the 
     negative information may result in other adverse actions, 
     including a denial of a new job or a promotion from existing 
     employment; and
       ``(VI) state that the consumer has right to--

       ``(aa) obtain a copy of their consumer report and credit 
     score or educational score (if applicable), which in some 
     instances can be obtained free of charge, from any consumer 
     reporting agency to which negative information may be been 
     sent; and
       ``(bb) dispute, free of charge, any errors on a consumer 
     report relating to the consumer.
       ``(iii) Timing of notice.--Such person shall provide such 
     notice to a consumer not later than 90 days before the date 
     on which the person furnishes negative information relating 
     to such consumer.
       ``(B) Specific negative information notice to a consumer.--
       ``(i) In general.--Any person described in subparagraph (A) 
     that has furnished negative information relating to activity 
     on any accounts of a consumer held by such person or 
     transactions associated with credit extended to a consumer by 
     such person to a consumer reporting agency described in 
     subsection (p) or (x) of section 603 shall send a written 
     notice to each such consumer.
       ``(ii) Content.--Such notice shall--

       ``(I) be clear and conspicuous;
       ``(II) inform the consumer that the person has furnished 
     negative information relating to such accounts or 
     transactions to a consumer reporting agency described in 
     subsection (p) or (x) of section 603;
       ``(III) identify any consumer reporting agency to which the 
     negative information was furnished, including the name of the 
     agency, mailing address, Internet website address, and toll-
     free telephone number; and
       ``(IV) include the statements described in subclauses (IV), 
     (V), and (VI) of subparagraph (A)(ii).

       ``(iii) Time of notice.--Such person shall provide such 
     notice to a consumer not later than 5 business days after the 
     date on which the person furnished negative information 
     relating to such consumer.
       ``(C) Notice effective for subsequent submissions.--After 
     providing the notice described in subparagraph (B), the 
     person may submit additional negative information to a 
     consumer reporting agency described in subsection (p) or (x) 
     of section 603 without providing additional notice to the 
     consumer, unless another person acquires the right to 
     repayment connected to the additional negative information. 
     The acquiring person shall be subject to the requirements of 
     this paragraph and shall be required to send consumers the 
     written notices described in this paragraph, if applicable.
       ``(D) Non-traditional data furnishers.--Any person that 
     furnishes negative information to a consumer reporting agency 
     described in subsection (p) or (x) of section 603 relating to 
     any accounts of, or transactions associated with, a consumer 
     by such person involving non-traditional data shall be 
     subject to the requirements described in subparagraphs (A), 
     (B), and (C).
       ``(E) Model notices.--
       ``(i) Duty of bureau.--Not later than 6 months after date 
     of the enactment of this paragraph, the Bureau shall issue 
     model forms for the notices described in subparagraphs (A) 
     and (B) that a person may use to comply with the requirements 
     of this paragraph.
       ``(ii) Use of model notice not required.--No provision of 
     this paragraph may be construed to require a person to use 
     the model notices prescribed by the Bureau.
       ``(iii) Compliance using model notices.--A person shall be 
     deemed to be in compliance with the requirements of 
     subparagraph (A)(ii) or (B)(ii) (as applicable) if the person 
     uses the model notice prescribed by the Bureau.
       ``(F) Issuance of general negative warning notice without 
     submitting negative information.--No provision of this 
     paragraph may be construed to require a person described in 
     subparagraph (A) or (D) to furnish negative information about 
     a consumer to a consumer reporting agency described in 
     subsection (p) or (x) of section 603.
       ``(G) Safe harbor.--A person shall not be liable for 
     failure to perform the duties required by this paragraph if 
     the person reasonably believes that the person is prohibited, 
     by law, from contacting the consumer.
       ``(H) Effective date.--The requirements of subparagraphs 
     (A), (B), (C), and (D) shall not take effect until the date 
     that is 6 months after the date of the issuance of model 
     forms for notices under subparagraph (E).
       ``(I) Definitions.--In this paragraph, the following 
     definitions shall apply:
       ``(i) Negative information.--The term `negative 
     information' means information concerning a consumer's 
     delinquencies, late payments, insolvency, or any form of 
     default.
       ``(ii) Non-traditional data.--The term `non-traditional 
     data' relates to telecommunications payments, utility 
     payments, rent payments, remittances, wire transfers, and 
     such other items as determined by the Bureau.''.
       (c) Duties of Furnishers After Receiving Notice of Dispute 
     From a Consumer.--Section 623(a)(8)(E) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681s-2(a)(8)(E)) is amended to read 
     as follows:
       ``(E) Duties of furnishers after receiving notice of 
     dispute from a consumer.--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) promptly provide to each consumer reporting agency to 
     which the person furnished the disputed information the 
     notice of dispute;
       ``(ii) review all information, including any substantiating 
     documents, provided by the consumer about the disputed 
     information and conduct an investigation, separate from any 
     reinvestigation by a consumer reporting agency or a reseller 
     conducted with respect to the disputed information;
       ``(iii) 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, complete an 
     investigation of the disputed information pursuant to the 
     standards described in subparagraph (G);
       ``(iv) notify the consumer, in writing, of the receipt of 
     the dispute that includes--

       ``(I) a statement about any information additional to the 
     information that the person is required to maintain under 
     subsection (f) that would support the person's ability to 
     carry out an investigation to resolve the consumer's dispute; 
     and
       ``(II) a statement that the consumer reporting agency to 
     which the disputed information was provided will include a 
     notation described in section 605(e) in the consumer's file 
     until the investigation has been completed, and information 
     about how a consumer may request that such notation is 
     removed by the agency;

       ``(v) if the investigation determines the disputed 
     information is inaccurate, incomplete, or unverifiable, 
     promptly notify each consumer reporting agency to which the 
     person furnished such information in accordance with 
     paragraph (2); and
       ``(vi) notify the consumer of the results of the 
     investigation, in writing, in accordance with subparagraph 
     (H).''.
       (d) Eliminating Furnishers' Authority to Dismiss Disputes 
     as Frivolous or Irrelevant.--Section 623(a)(8) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681s-2(a)(8)) is amended by 
     striking subparagraph (F) and redesignating subparagraph (G) 
     as subparagraph (F).
       (e) Additional Duties.--Section 623(a)(8) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681s-2(a)(8)), as amended by 
     subsection (d), is further amended by adding at the end the 
     following new subparagraphs:
       ``(G) Reasonable standards for furnishers for conducting 
     investigations and resolving disputes submitted by 
     consumers.--In any investigation conducted by a person who 
     furnishes information to a consumer reporting agency of an 
     item of information being disputed by a consumer, the person, 
     at a minimum--
       ``(i) shall maintain sufficient resources and trained 
     staff, commensurate with the volume and complexity of 
     disputes received or reasonably anticipated to be received, 
     to conduct investigations;
       ``(ii) shall verify that the person has a record of the 
     particular information being disputed, consistent with the 
     requirements of subsection (f);
       ``(iii) shall verify that the personally identifiable 
     information of the consumer submitting the dispute matches 
     the personally identifiable information contained on such 
     records;
       ``(iv) shall conduct a reasonable review to determine 
     whether the disputed information is accurate, complete, and 
     can be verified that considers all the information, including 
     any substantiating documents, provided by the consumer about 
     the disputed information;
       ``(v) shall ensure that the investigation is an independent 
     analysis that is separate from any reinvestigation by a 
     consumer reporting agency

[[Page H669]]

     or a reseller conducted with respect to the disputed 
     information; and
       ``(vi) may not impose any limitations or otherwise impede 
     the ability of a consumer to submit information, including 
     any substantiating documents, about the disputed information.
       ``(H) Contents of the notice to the consumer about the 
     results of the investigation by the furnisher.--The notice of 
     the results of the investigation described in subparagraph 
     (E) shall include--
       ``(i) a statement informing the consumer as to whether the 
     disputed information was determined to be inaccurate, 
     incomplete, or unverifiable;
       ``(ii) a statement of the specific reasons supporting the 
     results of the investigation;
       ``(iii) a description of the procedure used by the dispute 
     resolution staff of the person who furnishes information to a 
     consumer reporting agency to determine the accuracy or 
     completeness of the information, including the business name, 
     mailing address, telephone number, and Internet website 
     address (if available) of any person who was contacted by the 
     staff in connection with the determination;
       ``(iv) a copy of all information relating to the consumer 
     that was used in carrying out the investigation and was the 
     basis for any determination about the accuracy or 
     completeness of the disputed information;
       ``(v) a statement that consumer will receive, free of 
     charge, a copy of their consumer report and credit score or 
     educational credit score (if applicable), from any consumer 
     reporting agency to which the disputed information had been 
     provided, regardless of whether the consumer obtained or will 
     obtain a free consumer report and credit score or educational 
     credit score (if applicable) in the 12-month period preceding 
     receipt of the notice described in this subparagraph pursuant 
     to section 612(a)(1);
       ``(vi) if the disputed information was found to be 
     inaccurate, incomplete, or unverifiable, a statement that the 
     consumer report of the consumer shall be revised to reflect 
     the change to the consumer's file as a result of the 
     investigation;
       ``(vii) a statement that the consumer has the right to 
     appeal the results of the investigation under paragraph (10), 
     free of charge, within 120 days after the date of the notice 
     of the results of the investigation was provided to the 
     consumer and the process for submitting an appeal;
       ``(viii) a statement that the consumer may add a narrative 
     statement, free of charge, to the consumer's file held by the 
     consumer reporting agency to which the information has been 
     furnished disputing the accuracy or completeness of the 
     information, regardless of the results of the investigation 
     by the person, and the process for contacting any agency that 
     received the consumer's information from the person to submit 
     a narrative statement;
       ``(ix) a statement informing the consumer that a notation 
     described in section 605(e) will be added to the consumer's 
     file during the period in which the consumer appeals the 
     results of an investigation and that such notation can be 
     removed at the request of the consumer; and
       ``(x) a statement that the consumer has the right to 
     request a copy of their consumer report and credit score or 
     educational credit score (if applicable), free of charge, 
     within the 12-month period following the date of the 
     conclusion of the investigation from any consumer reporting 
     agency in which the disputed information had been provided, 
     regardless of whether the consumer obtained or will obtain a 
     free annual consumer report and credit score or educational 
     credit score (if applicable) under this subparagraph or 
     section 612(a)(1).''.
       (f) Conforming Amendment.--Section 615(a)(4)(B) is 
     amended--
       (1) by striking ``, under section 611, with a consumer 
     reporting agency''; and
       (2) by striking ``furnished by the agency'' and inserting 
     ``to a consumer reporting agency under section 611 or to a 
     person who furnished information to an agency under section 
     623''.

     SEC. 105. RIGHT TO APPEAL DISPUTES RELATING TO 
                   REINVESTIGATIONS AND INVESTIGATIONS.

       (a) Appeals of Reinvestigations Conducted by a Consumer 
     Reporting Agency.--Section 611 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681i) is amended--
       (1) in subsection (b), by inserting ``or if the consumer is 
     unsatisfied with the results of an appeal conducted under 
     subsection (i),'' after ``resolve the dispute,''; and
       (2) by inserting after subsection (h) (as added by section 
     102) the following new subsection:
       ``(i) Consumer Right To Appeal Results of a Consumer 
     Reporting Agency Reinvestigation.--
       ``(1) In general.--Within 120 days after the date of 
     receipt of the results of a reinvestigation conducted under 
     subsection (a), a consumer (or authorized third party) may, 
     free of charge, appeal the results of such reinvestigation by 
     submitting a notice of appeal to the consumer reporting 
     agency.
       ``(2) Notice of appeal.--
       ``(A) Requirements.--A notice of appeal described in 
     paragraph (1) may be submitted in writing, or through a toll-
     free telephone number or other electronic means established 
     by the consumer reporting agency (including on the Internet 
     website described in subsection (h)), and--
       ``(i) shall identify the information contained in the 
     consumer's file that is the subject of the appeal;
       ``(ii) shall describe the specific reasons for submitting 
     the notice of appeal; and
       ``(iii) may provide any information the consumer believes 
     is relevant to substantiate the validity of the dispute.
       ``(B) Consumer reporting agency notice to consumer.--Upon 
     receipt of such notice of appeal, the consumer reporting 
     agency shall promptly provide to the consumer a statement 
     confirming the receipt of the consumer's notice of appeal 
     that shall include--
       ``(i) an approximate date on which the consumer's appeal 
     review will be completed;
       ``(ii) the process and procedures by which such review will 
     be conducted; and
       ``(iii) an employee reference number or other employee 
     identifier for each of the specific individuals designated by 
     the consumer reporting agency who, upon the request of the 
     consumer, may discuss the substance and status of the appeal.
       ``(3) Consumer reporting agency requirements upon receipt 
     of notice of appeal.--
       ``(A) In general.--Not later than 20 days after receiving a 
     notice of appeal, the consumer reporting agency shall review 
     the appeal. If the consumer reporting agency determines the 
     information is inaccurate, incomplete, or cannot be verified, 
     the consumer reporting agency shall delete or modify the item 
     of information being disputed by the consumer from the file 
     of the consumer before the end of the 20-day period beginning 
     on the date on which the consumer reporting agency receives a 
     notice of an appeal from the consumer.
       ``(B) Notice of appeal to furnisher; information regarding 
     dispute provided by the consumer.--
       ``(i) In general.--Before the end of the period of 3 
     business days beginning on the date on which a consumer 
     reporting agency receives a notice of appeal, the consumer 
     reporting agency shall provide notice of the appeal, 
     including all information relating to the specific appeal 
     that the consumer reporting agency has received from the 
     consumer, to any person who provided any information in 
     dispute.
       ``(ii) Provision of additional information regarding the 
     dispute.--If the consumer reporting agency receives 
     additional information from the consumer after the agency 
     provides the notice required under clause (i) and before the 
     end of the 20-day period described in subparagraph (A), the 
     consumer reporting agency shall, not later than 3 business 
     days after receiving such information, provide such 
     information to any person who provided the information in 
     dispute and shall have an additional 10 business days to 
     complete the appeal review.
       ``(C) Minimum standards for appeals employees.--
       ``(i) Designation.--Upon receipt of a notice of appeal 
     under paragraph (1), a consumer reporting agency shall 
     designate one or more specific employees who--

       ``(I) shall be assigned an employee reference number or 
     other employee identifier that can be used by the consumer to 
     discuss the appeal with the specific individuals handling the 
     appeal;
       ``(II) shall have direct authority to resolve the dispute 
     that is the subject of the notice of appeal from the review 
     stage to its completion;
       ``(III) shall meet minimum training and ongoing 
     certification requirements at regular intervals, as 
     established by the Bureau;
       ``(IV) shall be located within the United States;
       ``(V) may not have been involved in the reinvestigation 
     conducted or terminated pursuant to subsection (a); and
       ``(VI) may not be subject to any requirements linking 
     incentives, including promotion, to the number of appeals 
     processed within a certain time period.

       ``(ii) Requirements.--Such employees shall conduct a robust 
     review of the appeal and make a determination regarding the 
     accuracy and completeness of the disputed information by--

       ``(I) conducting an independent analysis, separate from any 
     investigation by a reseller or person who provided the 
     disputed information, and separate from any prior 
     reinvestigation conducted by the consumer reporting agency of 
     the disputed information;
       ``(II) verifying that the personally identifiable 
     information of the consumer submitting the dispute matches 
     the personally identifiable information contained on the 
     consumer's file;
       ``(III) analyzing the notice of appeal and all information, 
     including any substantiating documents, provided by the 
     consumer with the notice of appeal;
       ``(IV) evaluating the validity of any information submitted 
     by any person that was used by the consumer reporting agency 
     in the reinvestigation of the initial dispute;
       ``(V) verifying that the consumer reporting agency has a 
     record of the information being disputed; and
       ``(VI) applying any additional factors or investigative 
     processes, as specified by the Bureau.

       ``(D) Notice of appeal results.--Not later than 5 days 
     after the end of the 20-day period described under 
     subparagraph (A) (or the 10-day extension period, as 
     applicable) the consumer reporting agency shall provide the 
     consumer with written notice of the results of the appeal by 
     postal mail or, if requested by the consumer, by other means. 
     The contents of such notice shall include--
       ``(i) a statement that the appeal is completed and the date 
     on which it was completed, the results of the appeal, and the 
     specific reasons supporting the results of the appeal;
       ``(ii) a copy of all information relating to the consumer 
     that was used as a basis for deciding the results of the 
     appeal;
       ``(iii) a consumer report that is based upon the consumer's 
     file as that file may have been revised as a result of the 
     appeal;
       ``(iv) a description of the procedure used to determine the 
     accuracy and completeness of the information, including the 
     business name, telephone number, mailing address, and 
     Internet website address (if applicable) of any person who 
     provided information that was contacted in connection with 
     such information, if reasonably available;
       ``(v) information describing that the consumer may submit a 
     statement, without charge, disputing the accuracy or 
     completeness of information in the consumer's file that was 
     the subject

[[Page H670]]

     of an appeal under this subsection by submitting a statement 
     directly to each consumer reporting agency that received the 
     information;
       ``(vi) a description of the consumer's rights pursuant to 
     subsection (d) (relating to furnishing notifications to 
     certain users of consumer reports); and
       ``(vii) any other information, as determined by the Bureau.
       ``(E) No excuse for failure to conduct appeal.--A consumer 
     reporting agency may not refuse to conduct a review of an 
     appeal under this subsection because the agency determines 
     that the notice of appeal was submitted by an authorized 
     third party, unless the agency has clear and convincing 
     evidence that the third party is not authorized to submit the 
     notice of appeal on the consumer's behalf. If the consumer 
     reporting agency refuses to conduct a review of the appeal 
     for these reasons, it shall provide a clear and conspicuous 
     written notice to the consumer explaining the reasons for the 
     refusal and describing any information the consumer is 
     required to provide for the agency to conduct a review of the 
     appeal.''.
       (b) Appeals of Investigations Conducted by Furnishers of 
     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 new paragraph:
       ``(10) Duty of furnishers of information upon notice of 
     appeal of investigation.--
       ``(A) In general.--Within 120 days of the date of receipt 
     of the results of an investigation conducted under paragraph 
     (8)(E), a consumer may, free of charge, appeal such results 
     by submitting a notice of appeal to the person who provided 
     the information in the dispute to a consumer reporting agency 
     (hereafter in this paragraph referred to as the `furnisher').
       ``(B) Notice of appeal.--A notice of appeal described in 
     subparagraph (A) may be submitted in writing, through a toll-
     free telephone number, or by other electronic means 
     established by the furnisher, and--
       ``(i) shall identify the information contained in the 
     consumer's file that is the subject of the appeal;
       ``(ii) shall describe the specific reasons for submitting 
     the notice of appeal; and
       ``(iii) may include any information, including 
     substantiating documents, the consumer believes is relevant 
     to the appeal.
       ``(C) Furnisher actions.--Upon receipt of such notice of 
     appeal, the furnisher shall--
       ``(i) before the end of the period of 3 business days 
     beginning on the date on which the furnisher receives the 
     notice of appeal, notify each consumer reporting agency to 
     which the person furnished such information a statement 
     identifying the items of information that a consumer is 
     appealing; and
       ``(ii) notify the consumer confirming the receipt of the 
     consumer's notice of appeal, including an approximate date 
     when the consumer's appeal will be completed, the process and 
     procedures by which a review of the appeal will be conducted, 
     and the specific individual designated by the consumer 
     reporting agency who, upon the request of the consumer, may 
     discuss the substance and status of the appeal.
       ``(D) Furnisher requirements upon receipt of notice of 
     appeal.--Not later than 20 days after receiving a notice of 
     appeal, the furnisher shall determine whether the item of 
     information being disputed by the consumer is inaccurate, 
     incomplete, or cannot be verified, and shall notify the 
     consumer reporting agency of the determination. If the 
     furnisher cannot verify the accuracy or completeness of the 
     disputed information, the furnisher shall, before the end of 
     the 20-day period beginning on the date on which the 
     furnisher receives notice of an appeal from the consumer, 
     submit instructions to the consumer reporting agency that the 
     item of information being disputed by the consumer should be 
     deleted from the file of the consumer.
       ``(E) Minimum standards for appeals employees.--Upon 
     receipt of a notice of appeal under subparagraph (A), a 
     furnisher shall designate one or more specific employees 
     who--
       ``(i) shall be assigned an employee reference number or 
     other employee identifier that can be used by the consumer to 
     discuss the appeal with the specific individuals handling the 
     appeal;
       ``(ii) shall have direct authority to resolve the dispute 
     that is the subject of the notice of appeal on behalf of the 
     furnisher from the review stage to its completion;
       ``(iii) shall meet minimum training and ongoing 
     certification requirements at regular intervals, as 
     established by the Bureau;
       ``(iv) may not have been involved in an investigation 
     conducted pursuant to paragraph (8); and
       ``(v) may not be subject to any requirements linking 
     incentives, including promotion, to the number of appeals 
     processed within a certain time period.
       ``(F) Requirements for appeals process.--Such employees 
     shall conduct a robust review of the appeal and make a 
     determination regarding the accuracy and completeness of the 
     disputed information by--
       ``(i) conducting an independent analysis, separate from any 
     reinvestigation by a reseller or consumer reporting agency, 
     of the disputed information;
       ``(ii) verifying that the personally identifiable 
     information related to the dispute is accurate and complete;
       ``(iii) analyzing the notice of appeal and all information, 
     including substantiating documents, provided by the consumer 
     with the notice of appeal;
       ``(iv) evaluating the validity of any information submitted 
     by any person that was used by the furnisher in the initial 
     investigation into the dispute;
       ``(v) verifying that the information being disputed relates 
     to the consumer in whose file the information is located;
       ``(vi) verifying that the furnisher has a record of the 
     information being disputed; and
       ``(vii) applying any additional factors or investigative 
     processes, as specified by the Bureau.
       ``(G) Extension of review period.--If a consumer submits 
     additional information related to the appeal after the period 
     of 3 business days described in subparagraph (C)(i) and 
     before the end of the 20-day period described in subparagraph 
     (D), the furnisher shall have an additional 10 business days 
     to complete the review of the appeal.
       ``(H) Notice of appeal results.--Not later than 5 days 
     after the end of the 20-day period described in subparagraph 
     (D) (or the 10-day extension described under subparagraph 
     (G), as applicable) the furnisher shall provide the consumer 
     with written notice of the results of the appeal by mail or, 
     if requested by the consumer, by other means. The contents of 
     such notice shall include--
       ``(i) a statement that the appeal is completed and the date 
     on which it was completed, the results of the appeal, and the 
     specific reasons supporting the results of the appeal;
       ``(ii) a copy of all information relating to the consumer 
     that was used as a basis for deciding the results of the 
     appeal;
       ``(iii) if the appeal results in any change to the consumer 
     report, a notification that the consumer shall receive a 
     copy, free of charge, of a revised consumer report (based 
     upon the consumer's file as that file was changed as a result 
     of the appeal) and a credit score or educational credit score 
     (if applicable) from each consumer reporting agency that had 
     been furnished incorrect information;
       ``(iv) a description of the procedure used to determine the 
     accuracy and completeness of the information, including the 
     business name, telephone number, mailing address, and 
     Internet website address (if applicable), of any person who 
     provided information that was contacted in connection with 
     such information, if reasonably available;
       ``(v) information describing that the consumer may submit a 
     statement, without charge, disputing the accuracy or 
     completeness of information in the consumer's file that was 
     the subject of an appeal under this paragraph by submitting a 
     statement directly to each consumer reporting agency that 
     received the information; and
       ``(vi) a notification that the consumer may request the 
     furnisher to submit to each consumer reporting agency the 
     consumer's request to furnish notifications pursuant to 
     section 611(d) (relating to furnishing notifications to 
     certain users of consumer reports).''.
       (c) Technical Amendment.--Section 623(a)(8)(A) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681s-2(a)(8)(A)) is amended 
     by striking ``reinvestigate'' and inserting ``investigate''.
       (d) Conforming Amendments.--Section 609 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681g) is amended--
       (1) in subsection (c)--
       (A) by striking ``Commission'' and inserting ``Bureau'' 
     each place that term appears;
       (B) in the subsection heading, by striking ``Rights to 
     Obtain and Dispute Information in Consumer Reports and to 
     Obtain Credit Scores'' and inserting ``Key Consumer Reporting 
     Rights''; and
       (C) in paragraph (1)--
       (i) in the heading, by striking ``Commission'' and 
     inserting ``Bureau'';
       (ii) in subparagraph (B)--

       (I) in clause (ii), by striking ``a consumer report without 
     charge under section 612'' and inserting ``consumer reports 
     and credit scores or educational credit scores (as 
     applicable) without charge under section 612'';
       (II) in clause (iii), by inserting ``or section 623'' after 
     ``section 611'';
       (III) by striking clauses (iv) and (vi);
       (IV) by inserting after clause (iii) the following new 
     clause:

       ``(iv) the right of a consumer to appeal a determination of 
     a reinvestigation conducted by a consumer reporting agency 
     under section 611(i) or an investigation conducted by a 
     furnisher of information under section 623(a)(10);''; and

       (V) by adding at the end the following new clause:

       ``(vi) the method and circumstances under which consumers 
     can obtain a 1-year fraud alert, 7-year fraud alert, active 
     duty alert, or security freeze as described in section 605A 
     through a consumer reporting agency described under section 
     603(p).'';
       (iii) in subparagraph (C) (as amended by subparagraph (A)) 
     by inserting ``and the Commission'' after ``Bureau''; and
       (iv) by adding at the end the following new subparagraph:
       ``(D) Publication of summary rights.--A consumer reporting 
     agency described under subsection (p) or (x) of section 603 
     shall display in a clear and conspicuous manner, including on 
     the Internet website of the consumer reporting agency, the 
     summary of rights prepared by the Bureau under this 
     paragraph.''; and
       (2) in subsection (d), by inserting ``Bureau and the'' 
     before ``Commission''.

     SEC. 106. REVISED CONSUMER REPORTS.

       Section 611 of the Fair Credit Reporting Act (15 U.S.C. 
     1681i), as amended by section 105(a)(2), is further amended 
     by adding at the end the following new subsection:
       ``(j) Requirement to Send Revised Consumer Report to 
     Consumer.--Upon receiving a notice described in section 
     623(a)(8)(E)(iv), each consumer reporting agency shall send 
     to the consumer a revised consumer report and credit score or 
     education credit score (if applicable) based upon the 
     consumer's file as that file was changed as a result of the 
     investigation.''.

     SEC. 107. INDICATION OF DISPUTE BY CONSUMERS AND USE OF 
                   DISPUTED INFORMATION.

       Section 605(f) of the Fair Credit Reporting Act (15 U.S.C. 
     1681c(f)) is amended to read as follows:

[[Page H671]]

       ``(f) Indication of Dispute.--
       ``(1) In general.--A consumer reporting agency shall 
     include in any consumer report based on the consumer's file a 
     notation identifying any item of information that is 
     currently in dispute by the consumer if--
       ``(A) a consumer disputes the completeness or accuracy of 
     any item of information contained in a consumer's file 
     pursuant to section 611(a)(1);
       ``(B) a consumer files with a consumer reporting agency an 
     appeal of a reinvestigation pursuant to section 611(i); or
       ``(C) the consumer reporting agency is notified by a person 
     that furnished any items of information that are currently in 
     dispute by the consumer that--
       ``(i) a consumer disputes the completeness or accuracy of 
     any information furnished by a person to any consumer 
     reporting agency pursuant to paragraph (3) or (8) of section 
     623(a); or
       ``(ii) a consumer submits a notice of appeal under section 
     623(a)(10).
       ``(2) Opt out.--A consumer may submit a request to a 
     consumer reporting agency or a person who furnished the 
     information in dispute, as applicable, to have the notation 
     described in paragraph (1) omitted from the consumer report. 
     Upon receipt of such a request--
       ``(A) by a consumer reporting agency, such agency shall 
     remove the notation within 1 business day; and
       ``(B) by a person who furnished the information in dispute, 
     such person shall submit such request to each consumer 
     reporting agency to which the person furnished such 
     information within 1 business day and such agency shall 
     remove the notation within 1 business day of receipt of such 
     request.''.

     SEC. 108. ACCURACY AND COMPLETENESS REPORT DUTIES FOR 
                   CONSUMER REPORTING AGENCIES AND FURNISHERS.

       Section 607(b) of the Fair Credit Reporting Act (15 U.S.C. 
     1681e) is amended to read as follows:
       ``(b) Accuracy and Completeness of Report.--
       ``(1) In general.--In preparing a consumer report, a 
     consumer reporting agency shall maintain reasonable 
     procedures to ensure maximum possible accuracy and 
     completeness of the information concerning the individual to 
     whom the consumer report relates.
       ``(2) Bureau rule to assure maximum possible accuracy and 
     completeness with credit reporting practices.--
       ``(A) Rule.--Not later than 18 months after the date of 
     enactment of this subsection, the Bureau shall issue a final 
     rule establishing the procedures described in paragraph (1).
       ``(B) Requirements.--In formulating the rule required under 
     subparagraph (A), the Bureau shall--
       ``(i) develop standards for matching the personally 
     identifiable information included in the consumer's file with 
     the personally identifiable information furnished by the 
     person who provided the information to the consumer reporting 
     agency (hereafter in this subsection referred to as the 
     `furnisher'), including the full name of a consumer, the date 
     of birth of a consumer, the full social security number of a 
     consumer, and any other information that the Bureau 
     determines would aid in assuring maximum possible accuracy 
     and completeness of such consumer reports;
       ``(ii) establish processes for a consumer reporting agency 
     to monitor the integrity of the data provided by furnishers 
     and the compliance of furnishers with the requirements of 
     this title;
       ``(iii) establish processes for a consumer reporting agency 
     to regularly reconcile data relating to accounts in 
     collection, including those that have not been paid in full, 
     by specifying the circumstances under which the consumer 
     reporting agency shall remove or suppress negative or adverse 
     information from a consumer's file that has not been updated 
     by a furnisher who is also a debt collector (as defined in 
     section 803 of the Fair Debt Collection Practices Act) within 
     the time period established by the Bureau;
       ``(iv) establish procedures to require each consumer 
     reporting agency to review and monitor the quality of 
     information received from any source, including information 
     from public records, by regularly and on an ongoing basis 
     comparing the information received to the information 
     available from the original source and ensuring that the 
     information received is the most current information;
       ``(v) develop standards and procedures for consumer 
     reporting agencies to identify furnishers that repeatedly 
     fail to provide accurate and complete information, to take 
     corrective action against such furnishers, and to reject 
     information submitted by such furnishers;
       ``(vi) develop standards and procedures for consumer 
     reporting agencies to adopt regarding collection of public 
     record data, including standards and procedures to consider 
     the ultimate data source, how the public record information 
     is filed and its availability and accessibility, and whether 
     information relating to the satisfaction of judgments or 
     other updates to the public record are available on a 
     reasonably timely basis from a particular source; and
       ``(vii) establish any other factors, procedures, or 
     processes determined by the Bureau to be necessary to assist 
     consumer reporting agencies in achieving maximum possible 
     accuracy and completeness of the information in consumer 
     reports.
       ``(3) Corrective action for furnishers that repeatedly 
     furnish inaccurate or incomplete information.--Upon 
     identifying a furnisher that repeatedly fails to furnish 
     accurate, complete, or verifiable information to consumer 
     reporting agencies, the Bureau shall--
       ``(A) ensure the prompt removal of any adverse information 
     relating to a consumer's accounts submitted by such 
     furnisher; and
       ``(B) take corrective action, which may include--
       ``(i) mandatory revised training and training materials for 
     the staff of the furnisher regarding the furnishing of 
     accurate and complete information;
       ``(ii) sharing industry best practices and procedures 
     regarding accuracy and completeness; or
       ``(iii) temporarily prohibiting a furnisher from providing 
     information to a consumer reporting agency.''.

     SEC. 109. INCLUSION OF PUBLIC RECORD DATA SOURCES IN CONSUMER 
                   REPORTS.

       Section 605(d) of the Fair Credit Reporting Act (15 U.S.C. 
     1681c(d)) is amended by adding at the end the following:
       ``(3) Public record data source.--Any consumer reporting 
     agency that furnishes a consumer report that contains public 
     record data shall also include in such report the source from 
     which that data was obtained, including the particular court, 
     if any, and the date that the data was initially reported or 
     publicized.''.

     SEC. 110. INJUNCTIVE RELIEF FOR VICTIMS.

       (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.) is amended--
       (1) in section 616--
       (A) in subsection (a), by amending the subsection heading 
     to read as follows: ``Damages'';
       (B) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (C) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Injunctive Relief.--In addition to any other remedy 
     set forth in this section, a court may award injunctive 
     relief to require compliance with the requirements imposed 
     under this title with respect to any consumer. In the event 
     of any successful action for injunctive relief under this 
     subsection, the court may award to the prevailing party costs 
     and reasonable attorney fees (as determined by the court) 
     incurred during the action by such party.''; and
       (2) in section 617--
       (A) in subsection (a), by amending the subsection heading 
     to read as follows: ``Damages'';
       (B) by redesignating subsection (b) as subsection (c); and
       (C) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Injunctive Relief.--In addition to any other remedy 
     set forth in this section, a court may award injunctive 
     relief to require compliance with the requirements imposed 
     under this title with respect to any consumer. In the event 
     of any successful action for injunctive relief under this 
     subsection, the court may award to the prevailing party costs 
     and reasonable attorney fees (as determined by the court) 
     incurred during the action by such party.''.
       (b) Enforcement by Federal Trade Commission.--Section 
     621(a)(2)(A) of the Fair Credit Reporting Act (15 U.S.C. 
     1681s(a)(2)(A)) is amended--
       (1) by amending the subparagraph heading to read as 
     follows: ``Negligent, willful, or knowing violations''; and
       (2) by inserting ``negligent, willful, or'' before 
     ``knowing''.

               TITLE II--FREE CREDIT SCORES FOR CONSUMERS

     SEC. 201. DEFINITIONS.

       (a) In General.--Section 603 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681a) is amended by adding at the end the 
     following new subsection:
       ``(bb) Credit Score and Educational Credit Score 
     Definitions.--
       ``(1) Credit score.--The term `credit score' 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 or extends credit to predict the 
     likelihood of certain credit behaviors, including default, as 
     determined by the Bureau.
       ``(2) Educational credit score.--The term `educational 
     credit score' means a numerical value or categorization 
     derived from a statistical tool or modeling system based upon 
     information from a consumer report that assists consumers in 
     understanding how a lender or creditor may view the 
     consumer's creditworthiness in deciding whether to make a 
     loan or extend credit to that consumer.
       ``(3) Key factors.--The term `key factors' means any 
     relevant elements or reasons affecting the credit score for 
     the particular individual, listed in the order of importance 
     based on the effect of each element or reason on the credit 
     score or educational credit score.
       ``(4) Credit scoring model.--The term `credit scoring 
     model' means a scoring algorithm, formula, model, program, or 
     mechanism used to generate a credit score or an educational 
     credit score.''.
       (b) Conforming Amendments.--The Fair Credit Reporting Act 
     (15 U.S.C. 1681 et seq.) is amended--
       (1) in section 605(d)(2), by striking ``(as defined in 
     section 609(f)(2)(B))''; and
       (2) in section 615--
       (A) by striking ``as defined in section 609(f)(2)(A)'' each 
     place that term appears; and
       (B) in subsection (a)(2)(B), by striking ``set forth in 
     subparagraphs (B) through (E) of section 609(f)(1)'' and 
     inserting ``with respect to a credit score described in 
     section 609(f)(2), if available''.

     SEC. 202. CONSUMER INFORMATION ON CALCULATION OF SCORES.

       Section 609(f) of the Fair Credit Reporting Act (15 U.S.C. 
     1681g(f)) is amended to read as follows:
       ``(f) Disclosure of Credit Score and Educational Credit 
     Score by Consumer Reporting Agencies.--
       ``(1) In general.--Upon the request of a consumer for a 
     credit score or educational credit score, a consumer 
     reporting agency shall supply to the consumer a statement--
       ``(A) containing--

[[Page H672]]

       ``(i) a current credit score at the time of the request 
     generated using a commonly used credit scoring model to 
     generate credit scores, subject to regulations of the Bureau;
       ``(ii) an educational credit score at the time of the 
     request, if it is not practicable to generate such a credit 
     score, as determined by the Bureau; or
       ``(iii) an explanation that the consumer's file does not 
     have sufficient information from which to generate such a 
     credit score or educational credit score; and
       ``(B) with respect to each previous credit score in the 
     file of the consumer--
       ``(i) the date on which the credit score was generated;
       ``(ii) the name of any entity that the credit score was 
     provided to; and
       ``(iii) the credit score itself.
       ``(2) Requirements.--A statement provided under clause (i) 
     or (ii) of paragraph (1)(A) shall include--
       ``(A) a minimum of 4 key factors, if available, that 
     adversely affected the credit score or educational credit 
     score, except that if one of the key factors consists of the 
     number of enquiries made with respect to a consumer report, 
     that factor shall be provided to the consumer in addition to 
     the factors required by this subparagraph;
       ``(B) to the extent possible, specific actions a consumer 
     could take with respect to each key factor listed in 
     subparagraph (A) to improve the consumer's credit score or 
     educational credit score;
       ``(C) a minimum of 4 key factors, if available, that 
     positively affected the credit score or educational credit 
     score;
       ``(D) the range of possible credit scores or educational 
     credit scores under the credit scoring model used;
       ``(E) the distribution of credit scores or educational 
     credit scores among consumers who are scored under the same 
     credit scoring model by the consumer reporting agency, and 
     using the same scale as that of the score that is provided to 
     a creditor or consumers--
       ``(i) in the form of a bar graph containing a minimum of 6 
     bars that illustrates the percentage of consumers with credit 
     scores or educational credit scores within the range of 
     scores represented by each bar; or
       ``(ii) by another clear and readily understandable 
     graphical depiction, statement, or illustration comparing the 
     consumer's credit score or educational credit score to the 
     scores of other consumers, as determined by the Bureau;
       ``(F) the date on which the credit score or educational 
     credit score was created; and
       ``(G) the name of the person that developed the credit 
     scoring model on which the credit score or educational credit 
     score was based.
       ``(3) Applicability to certain uses.--This subsection shall 
     not be construed so as to compel a consumer reporting agency 
     to--
       ``(A) develop or disclose a credit score if the agency does 
     not distribute credit scores used by a person who makes or 
     arranges a loan or extends credit to predict the likelihood 
     of certain credit behaviors; or
       ``(B) develop or disclose an educational credit score if 
     the agency does not develop educational credit scores that 
     assist in understanding the general credit behavior of a 
     consumer and predicting the future credit behavior of the 
     consumer.
       ``(4) Maintenance of credit scores.--
       ``(A) In general.--All consumer reporting agencies shall 
     maintain in the consumer's file credit scores relating to the 
     consumer for a period of 2 years from the date on which such 
     information is generated.
       ``(B) Disclosure only to consumers.--A past credit score 
     maintained in a consumer's file pursuant to subparagraph (A) 
     may only be provided to the consumer to which the credit 
     score relates and may not be included in a consumer report or 
     used as a factor in generating a credit score or educational 
     credit score.
       ``(C) Removal of past credit scores.--A past credit score 
     maintained in a consumer's file pursuant to subparagraph (A) 
     shall be removed from the consumer's file after the end of 
     the 2-year period described under subparagraph (A).''.

     SEC. 203. DISCLOSURES RELATING TO CREDIT SCORES AND 
                   EDUCATIONAL CREDIT SCORES.

       Section 609(f) of the Fair Credit Reporting Act (15 U.S.C. 
     1681g(f)), as amended by section 202, is further amended by 
     adding at the end the following new paragraphs:
       ``(5) Website disclaimer.--A consumer reporting agency that 
     generates or provides credit scores or educational credit 
     scores shall clearly and conspicuously display on the home 
     page of the agency's Internet website, and as part of any 
     application, solicitation, or marketing material or media 
     providing information related to a credit score or 
     educational credit score, the following notice, in boldface 
     type of 18-point font or larger and in a text box with 
     boldface outer borders:

     `` `CREDIT SCORE DISCLAIMER. `` `

       There is no ``one'' credit score. There are many scoring 
     formulas derived from a wide variety of models available to a 
     consumer and used by lenders and creditors. Different lenders 
     and creditors use different scoring formulas to determine 
     whether to extend credit or make a loan to you, and the terms 
     of the credit or loan. An educational credit score is not a 
     credit score that a person who makes a loan or extends credit 
     to you is likely to use. Educational credit scores are merely 
     intended to be used as an educational tool to help consumers 
     understand how the information contained in a consumer report 
     may affect the terms and conditions of a loan or extension of 
     credit that may be available to a consumer. Lenders and 
     creditors may also rely on information not contained in your 
     consumer report and not reflected in the calculation of your 
     credit score.'.
       ``(6) Additional requirements for educational credit 
     scores.--
       ``(A) Disclaimer.--If an educational credit score is 
     provided pursuant to paragraph (1), a consumer reporting 
     agency shall clearly and conspicuously include in a prominent 
     location on the statement, in boldface type of 18-point font 
     or larger, and in a text box with boldface outer borders, the 
     following notice:

     `` `EDUCATIONAL CREDIT SCORE DISCLAIMER. `` `

       The educational credit score provided to you is not a 
     credit score that a lender or creditor is likely to use to 
     make a loan or extend credit to you. There are many different 
     credit scores derived from a wide variety of models used by 
     lenders and creditors. An educational credit score is merely 
     an educational tool. It is intended to provide consumers with 
     a basic understanding of how the information contained in a 
     consumer report may affect the terms and conditions of credit 
     that are available. The credit scores you receive directly 
     from different lenders and creditors may not be the same as 
     an educational credit score. There are a number of reasons 
     for this:
       `` `(1) Each company may use a different formula for 
     calculating credit scores and the differences in the formulas 
     may lead to differences in your scores.
       `` `(2) Companies may produce scores that give results on 
     different scales.
       `` `(3) Not all lenders or creditors report to every 
     consumer reporting agency, and therefore the information 
     contained in your consumer report that the consumer reporting 
     agencies use to calculate your educational credit score may 
     differ among agencies.'.
       ``(B) Prohibition on misleading representations.--A 
     consumer reporting agency may not refer to an educational 
     credit score as a credit score in any application, 
     solicitation, marketing, or other informational materials or 
     media.
       ``(7) Modification of disclaimers.--The Bureau may modify 
     the content, format, and manner of the disclaimers required 
     under paragraphs (5) and (6), if warranted, after conducting 
     consumer testing or research.''.

     SEC. 204. FREE CREDIT SCORE DISCLOSURES AND CONSUMER REPORTS.

       (a) In General.--Section 612 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681j) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by inserting after ``section 609'' 
     the following: ``(including the disclosure of a credit score 
     or educational credit score under subsection (f) of such 
     section)''; and
       (ii) in subparagraph (C)--

       (I) by striking ``Commission'' and inserting ``Bureau''; 
     and
       (II) by inserting ``, credit scores, and educational credit 
     scores (as applicable)'' after ``consumer reports'' each 
     place that term appears;

       (B) in paragraph (2)--
       (i) by striking ``15 days'' and inserting ``3 business 
     days''; and
       (ii) by inserting ``, credit score, or educational credit 
     score'' after ``consumer report'';
       (C) in paragraph (3), by inserting ``, credit score, or 
     educational credit score'' after ``consumer report''; and
       (D) in paragraph (4), by inserting ``, credit scores, or 
     educational credit scores'' after ``consumer reports'';
       (2) in subsection (b), by inserting ``(including the 
     disclosure of a credit score or educational credit score, as 
     applicable, under subsection (f) of such section)'' after the 
     first instance of ``section 609'';
       (3) in subsection (c)--
       (A) by inserting ``(including the disclosure of a credit 
     score or educational credit score under subsection (f) of 
     such section)'' after ``pursuant to section 609'';
       (B) in paragraph (2), by striking ``; or'' and inserting a 
     semicolon;
       (C) in paragraph (3), by striking the period at the end and 
     inserting a semicolon; and
       (D) by adding at the end the following new paragraphs:
       ``(4) has disputed information, or submitted an appeal of 
     an investigation or reinvestigation of such information, 
     under section 611 or 623, regardless of whether the consumer 
     has already received a credit report, credit score, or 
     educational credit score under section 611 or 623; or
       ``(5) has had information that was previously deleted under 
     section 611(a)(5) reinserted into the consumer's file, 
     regardless of whether the consumer has already received a 
     credit report, credit score, or educational credit score 
     under such section.'';
       (4) in subsection (d), by inserting ``(including the 
     disclosure of a credit score or educational credit score 
     under subsection (f) of such section)'' after ``section 
     609'';
       (5) in subsection (f)(1)--
       (A) by striking ``reasonable charge'' and all that follows 
     through ``section 609'' and inserting ``reasonable charge on 
     a consumer for providing a consumer report to a consumer'';
       (B) by striking subparagraph (B);
       (C) by redesignating clauses (i) and (ii) as subparagraphs 
     (A) and (B), respectively (and conforming the margins 
     accordingly); and
       (D) in subparagraph (B) (as so redesignated), by striking 
     ``disclosure; and'' and inserting ``disclosure.''; and
       (6) by adding at the end the following new subsections:
       ``(h) Centralized Source for Obtaining Free Copy of 
     Consumer Report and Scores.--
       ``(1) Nationwide consumer reporting agencies.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this subsection, each consumer reporting 
     agency described under subsection (p) of section 603 shall 
     prominently

[[Page H673]]

     display on the home page of the agency's website--
       ``(i) a hyperlink labeled `Get Your Free Annual Credit 
     Reports along with either your Credit Scores or Educational 
     Credit Scores provided for under Federal Law' or 
     substantially similar text, as determined by the Bureau; and
       ``(ii) a disclosure titled `Consumer's Right to Free Credit 
     Scores, Educational Credit Scores, and Reports under Federal 
     Law' or substantially similar text, as determined by the 
     Bureau that includes the following statement:
       `` `All consumers are entitled to obtain a free copy of 
     their consumer report and credit score or educational credit 
     score annually from each of the nationwide consumer reporting 
     agencies. Under Federal law, a consumer is entitled to obtain 
     additional free copies of their consumer reports, along with 
     a copy of either the consumer's credit score or educational 
     credit score (under certain circumstances), including:
       `` `(1) When a consumer is unemployed and intends to apply 
     for employment within 60 days.
       `` `(2) When a consumer is a recipient of public welfare 
     assistance.
       `` `(3) When a consumer has a reasonable belief that their 
     report contains inaccuracies as a result of fraud.
       `` `(4) When a consumer asserts 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 consumer's financial or 
     personally identifiable information.
       `` `(5) When a consumer files a dispute or an appeal of the 
     results of a dispute with a consumer reporting agency or a 
     person who furnished information to the consumer reporting 
     agency regarding the accuracy or completeness of the 
     information contained on their report.
       `` `(6) After a furnisher of information discovers it has 
     furnished inaccurate or incomplete information to a consumer 
     reporting agency, and the furnisher notifies the agency of 
     the error.
       `` `(7) After an adverse action is taken against a consumer 
     or a consumer receives a risk-based pricing notice.
       `` `(8) When a mortgage lender, private educational lender, 
     indirect auto lender, or motor vehicle lender obtains and 
     uses a consumer's reports or scores for underwriting 
     purposes.'.
       ``(B) Hyperlink requirements.--The hyperlink described in 
     subparagraph (A)(i) shall be prominently located on the top 
     of the home page and should link directly to the website of 
     the centralized source established pursuant to section 211(d) 
     of the Fair and Accurate Credit Transactions Act of 2003 (15 
     U.S.C. 1681j note).
       ``(C) Modifications.--The Bureau may modify the disclosure 
     described in subparagraph (A)(ii) as necessary to include 
     other circumstances under which a consumer has the right to 
     receive a free consumer report, credit score, or educational 
     credit score.
       ``(2) Nationwide specialty consumer reporting agencies.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this subsection, each nationwide specialty 
     consumer reporting agency shall prominently display on the 
     Internet home webpage of the agency a disclosure titled 
     `Consumer's Right to Free Consumer Reports and Credit Score 
     or Educational Credit Score (as applicable) under Federal 
     Law'. Such disclosure shall include the following statement:
       `` `Upon request, all consumers are entitled to obtain a 
     free copy of their consumer report and credit score or 
     educational credit score (as applicable) during any 12-month 
     period from each of the nationwide specialty consumer 
     reporting agencies. Federal law also provides further 
     circumstances under which a consumer is entitled to obtain 
     additional free copies of their consumer report and credit 
     score or educational credit score (as applicable) including:
       `` `(1) When a consumer is unemployed and intends to apply 
     for employment within 60 days.
       `` `(2) When a consumer is a recipient of public welfare 
     assistance.
       `` `(3) When a consumer has a reasonable belief that their 
     report contains inaccuracies as a result of fraud.
       `` `(4) When a consumer files a dispute or an appeal of the 
     results of a dispute with a consumer reporting agency or a 
     person who furnished information to the consumer reporting 
     agency regarding the accuracy or completeness of the 
     information contained on their report.
       `` `(5) After a furnisher of information discovers it has 
     furnished inaccurate or incomplete information to a consumer 
     reporting agency, and the furnisher notifies the agency of 
     the error.
       `` `(6) After an adverse action is taken against a consumer 
     or a consumer receives a risk-based pricing notice.
       `` `(7) When a mortgage lender, private educational lender, 
     indirect auto lender, or motor vehicle lender obtains and 
     uses a consumer's reports or scores for underwriting 
     purposes.'.
       ``(B) Modifications.--The Bureau may modify the disclosure 
     described in subparagraph (A) as necessary to include other 
     circumstances under which a consumer has the right to receive 
     a free consumer report and credit score or educational credit 
     score (as applicable).
       ``(C) Toll-free telephone access.--The information 
     described in this paragraph shall also be made available via 
     a toll-free telephone number. Such number shall be 
     prominently displayed on the home page of the website of each 
     nationwide specialty consumer reporting agency. Each of the 
     circumstances under which a consumer may obtain a free 
     consumer report and credit score or educational credit score 
     (as applicable) shall be presented in an easily 
     understandable format and consumers shall be directed to an 
     individual who is a customer service representative not later 
     than 2 minutes after the initial phone connection is made by 
     the consumer. Information provided through such telephone 
     number shall comply with the requirements of section 633.
       ``(D) Online consumer reports; exemption.--Upon receipt of 
     a request by a consumer for a consumer report, each 
     nationwide specialty consumer reporting agency shall provide 
     access to such report electronically on the Internet website 
     described in section 611(h).
       ``(i) Automatic Provision of Free Consumer Reports and 
     Credit Scores or Educational Credit Scores.--A consumer 
     reporting agency shall provide to a consumer a free copy of 
     the file and credit score or educational credit score of the 
     consumer who--
       ``(1) obtains a 1-year fraud alert, 7-year fraud alert, 
     active duty alert, or security freeze as described in section 
     605A; or
       ``(2) has disputed information, or submitted an appeal of 
     an investigation or reinvestigation of such information, 
     under section 611 or 623.''.
       (b) Technical Amendment.--Section 615(h)(7) of such Act (15 
     U.S.C. 1681m(h)(7)) is amended by striking ``section'' each 
     place such term appears and inserting ``subsection''.

     SEC. 205. PROVISION OF CONSUMER REPORTS AND CREDIT SCORES BY 
                   PRIVATE EDUCATIONAL LENDERS.

       Section 609 of the Fair Credit Reporting Act (15 U.S.C. 
     1681g) is amended by adding at the end the following new 
     subsection:
       ``(h) Disclosure of Consumer Reports and Credit Scores by 
     Private Educational Lenders.--
       ``(1) In general.--If a private educational lender obtains 
     a copy of any consumer reports or credit scores and uses such 
     reports or scores in connection with an application of a 
     consumer for a private education loan, the private 
     educational lender shall provide to the consumer, not later 
     than 3 business days after obtaining such reports or scores 
     and before the date on which the consumer enters into a loan 
     agreement with the private educational lender, a copy of any 
     such reports or scores, along with the statement described 
     under subsection (f)(2).
       ``(2) Costs.--None of the costs to the private educational 
     lender associated with procuring consumer reports or credit 
     scores under this subsection may be charged, directly or 
     indirectly, to the consumer.
       ``(3) Rule of construction.--Nothing in this subsection 
     shall be construed to eliminate any requirement for creditors 
     and lenders to provide credit score disclosures, including 
     the statement described under subsection (f)(2), to consumers 
     as part of an adverse action or risk-based pricing notice.''.

     SEC. 206. PROVISION OF CONSUMER REPORTS AND CREDIT SCORES BY 
                   MOTOR VEHICLE LENDERS OR INDIRECT AUTO LENDERS.

       Section 609 of the Fair Credit Reporting Act (15 U.S.C. 
     1681g), as amended by section 205, is further amended by 
     adding at the end the following new subsection:
       ``(i) Disclosure of Consumer Reports and Credit Scores Used 
     by Motor Vehicle Lenders or Indirect Auto Lenders.--
       ``(1) In general.--If a motor vehicle lender or indirect 
     auto lender obtains a copy of any consumer reports or credit 
     scores and uses such reports or scores in connection with an 
     application of a consumer for a motor vehicle loan or lease, 
     the motor vehicle lender or indirect auto lender shall 
     provide to the consumer a document, separate from the 
     consumer's lease or purchase agreement and before the 
     consumer enters into a lease or purchase agreement, 
     disclosing any consumer reports and credit scores, including 
     the statement described in subsection (f)(2), used by the 
     lender to determine whether to extend credit to the consumer.
       ``(2) Costs.--None of the costs to the motor vehicle lender 
     or indirect auto lender associated with procuring consumer 
     reports or credit scores under this subsection may be 
     charged, directly or indirectly, to the consumer.
       ``(3) Rule of construction.--Nothing in this subsection 
     shall be construed to eliminate any requirement for creditors 
     and lenders to provide credit score disclosures, including 
     the statement described under subsection (f)(2), to consumers 
     as part of an adverse action or risk-based pricing notice.
       ``(4) Definitions.--
       ``(A) Indirect auto lender.--The term `indirect auto 
     lender' has the meaning given the term by the Bureau, and 
     shall include a person extending a loan made with respect to 
     a car, boat, motorcycle, recreational vehicle, or other 
     similar vehicle used primarily for personal or household 
     purposes.
       ``(B) Motor vehicle lender.--The term `motor vehicle 
     lender' has the meaning given the term by the Board of 
     Governors of the Federal Reserve System, and shall include a 
     person extending a loan made with respect to a car, boat, 
     motorcycle, recreational vehicle, or other similar vehicle 
     used primarily for personal or household purposes.''.

     SEC. 207. PROVISION OF CONSUMER REPORTS AND CREDIT SCORES BY 
                   RESIDENTIAL MORTGAGE LENDERS.

       Section 609(g) of the Fair Credit Reporting Act (15 U.S.C. 
     1681g(g)) is amended--
       (1) by redesignating paragraph (2) as paragraph (5);
       (2) in paragraph (1)--
       (A) by striking ``a consumer credit score'' and inserting 
     ``any consumer reports or credit scores'';
       (B) by striking ``, as defined in subsection (f),'';
       (C) by striking ``the following to the consumer as soon as 
     reasonably practicable:'' and inserting ``, not later than 3 
     business days after using such reports or scores, a document 
     disclosing any consumer reports and credit scores used by the 
     lender to determine whether to extend credit to the consumer 
     along with the statement described in subsection (f)(2).'';
       (D) by striking subparagraphs (A), (B), (C), (E), and (F);

[[Page H674]]

       (E) by redesignating subparagraph (D) as paragraph (3) (and 
     adjusting the margins accordingly); and
       (F) by redesignating subparagraph (G) as paragraph (4) (and 
     adjusting the margins accordingly);
       (3) by inserting before paragraph (3) (as so designated) 
     the following new paragraph:
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed to eliminate any requirement for lenders 
     to provide credit score disclosures, including the statement 
     described under subsection (f)(2), to consumers as part of an 
     adverse action or risk-based pricing notice.'';
       (4) in paragraph (3) (as so designated), in the quoted 
     material--
       (A) by inserting ``, free of charge,'' after ``disclose to 
     you''; and
       (B) by striking ``affecting your credit scores'' and 
     inserting ``affecting your credit score or scores'';
       (5) in paragraph (5) (as so redesignated) by inserting ``or 
     scores'' after ``credit score'' each place such term appears; 
     and
       (6) by adding at the end the following new paragraphs:
       ``(6) Actions not required.--This subsection shall not 
     require any person to disclose any credit score or related 
     information obtained by the person after a loan has closed.
       ``(7) No procurement costs.--None of the costs to the 
     creditor or lender associated with procuring any consumer 
     reports or scores under this subsection may be charged, 
     directly or indirectly, to the consumer.''.

           TITLE III--STUDENT BORROWER CREDIT IMPROVEMENT ACT

     SEC. 301. REMOVAL OF ADVERSE INFORMATION FOR CERTAIN PRIVATE 
                   EDUCATION LOAN BORROWERS.

       (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.), as amended by section 405, is further amended 
     by inserting after section 605D the following new section:

     ``Sec. 605E. Credit rehabilitation for distressed private 
       education loan borrowers.

       ``(a) In General.--A consumer reporting agency may not 
     furnish any consumer report containing any adverse item of 
     information relating to a delinquent or defaulted private 
     education loan of a borrower if the borrower has 
     rehabilitated the borrower's credit with respect to such loan 
     by making 9 on-time monthly payments (in accordance with the 
     terms and conditions of the borrower's original loan 
     agreement or any other repayment agreement that antedates the 
     original agreement) during a period of 10 consecutive months 
     on such loan after the date on which the delinquency or 
     default occurred.
       ``(b) Interruption of 10-month Period for Certain 
     Consumers.--
       ``(1) Permissible interruption of the 10-month period.--A 
     borrower may stop making consecutive monthly payments and be 
     granted a grace period after which the 10-month period 
     described in subsection (a) shall resume. Such grace period 
     shall be provided under the following circumstances:
       ``(A) With respect to a borrower who is a member of the 
     Armed Forces entitled to incentive pay for the performance of 
     hazardous duty under section 301 of title 37, United States 
     Code, hazardous duty pay under section 351 of such title, or 
     other assignment or special duty pay under section 352 of 
     such title, the grace period shall begin on the date on which 
     the borrower begins such assignment or duty and end on the 
     date that is 6 months after the completion of such assignment 
     or duty.
       ``(B) With respect to a borrower who resides in an area 
     affected by a major disaster or emergency declared under the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act, the grace period shall begin on the date on which the 
     major disaster or emergency was declared and end on the date 
     that is 3 months after such date.
       ``(2) Other circumstances.--
       ``(A) In general.--The Bureau may allow a borrower 
     demonstrating hardship to stop making consecutive monthly 
     payments and be granted a grace period after which the 10-
     month period described in subsection (a) shall resume.
       ``(B) Borrower demonstrating hardship defined.--In this 
     paragraph, the term `borrower demonstrating hardship' means a 
     borrower or a class of borrowers who, as determined by the 
     Bureau, is facing or has experienced unusual extenuating life 
     circumstances or events that result in severe financial or 
     personal barriers such that the borrower or class of 
     borrowers does not have the capacity to comply with the 
     requirements of subsection (a).
       ``(c) Procedures.--The Bureau shall establish procedures to 
     implement the credit rehabilitation described in this 
     section, including--
       ``(1) the manner, content, and form for requesting credit 
     rehabilitation;
       ``(2) the method for validating that the borrower is 
     satisfying the requirements of subsection (a);
       ``(3) the manner, content, and form for notifying the 
     private educational loan holder of--
       ``(A) the borrower's participation in credit rehabilitation 
     under subsection (a);
       ``(B) the requirements described in subsection (d); and
       ``(C) the restrictions described in subsection (f);
       ``(4) the manner, content, and form for notifying a 
     consumer reporting agency of--
       ``(A) the borrower's participation in credit rehabilitation 
     under subsection (a); and
       ``(B) the requirements described in subsection (d);
       ``(5) the method for verifying whether a borrower qualifies 
     for the grace period described in subsection (b);
       ``(6) the manner, content, and form of notifying a consumer 
     reporting agency and private educational loan holder that a 
     borrower was granted a grace period.
       ``(d) Standardized Reporting Codes.--A consumer reporting 
     agency shall develop standardized reporting codes for use by 
     any private educational loan holder to identify and report a 
     borrower's status of making and completing 9 on-time monthly 
     payments during a period of 10 consecutive months on a 
     delinquent or defaulted private education loan, including 
     codes specifying the grace period described in subsection (b) 
     and any agreement to modify monthly payments. Such codes 
     shall not appear on any report provided to a third party, and 
     shall be removed from the consumer's credit report upon the 
     consumer's completion of the rehabilitation period under this 
     section.
       ``(e) Elimination of Barriers to Credit Rehabilitation.--A 
     consumer report in which a private educational loan holder 
     furnishes the standardized reporting codes described in 
     subsection (d) to a consumer reporting agency, or in which a 
     consumer reporting agency includes such codes, shall be 
     deemed to comply with the requirements for accuracy and 
     completeness under sections 607(b), 623(a)(1), and 632.
       ``(f) Prohibition on Civil Actions for Consumers Pursuing 
     Rehabilitation.--A private educational loan holder may not 
     commence or proceed with any civil action against a borrower 
     with respect to a delinquent or defaulted loan during the 
     period of rehabilitation if the private educational loan 
     holder has been notified, in accordance with the procedures 
     established by the Bureau pursuant to subsection (c)--
       ``(1) of such borrower's intent to participate in 
     rehabilitation;
       ``(2) that such borrower has satisfied the requirements 
     under subsection (a); or
       ``(3) that such borrower was granted a grace period.
       ``(g) Impact on Statute of Limitations for Prior Debt.--
     Payments by a borrower on a private education loan that are 
     made during and after a period of rehabilitation under this 
     section shall have no effect on the statute of limitations 
     with respect to payments that were due on such private 
     education loan before the beginning of the period of 
     rehabilitation.
       ``(h) Payment Plans.--If a private educational loan holder 
     enters into a payment plan with a borrower on a private 
     education loan during a period of rehabilitation, such 
     payment plan shall be reasonable and affordable, as 
     determined by the Bureau.
       ``(i) Rules of Construction.--
       ``(1) Application to subsequent default or delinquency.--A 
     borrower who satisfies the requirements under subsection (a) 
     shall be eligible for additional credit rehabilitation 
     described in subsection (a) with respect to any subsequent 
     default or delinquency of the borrower on the rehabilitated 
     private education loan.
       ``(2) Interruption of consecutive payment period 
     requirement.--The grace period described in subsection 
     (b)(1)(A) shall not apply if any regulation promulgated under 
     section 987 of title 10, United States Code (commonly known 
     as the Military Lending Act), or the Servicemembers Civil 
     Relief Act (50 U.S.C. App. 501 et seq.) allows for a grace 
     period or other interruption of the 10-month period described 
     in subsection (a) and such grace period or other interruption 
     is longer than the period described in subsection (b)(1)(A) 
     or otherwise provides greater protection or benefit to the 
     borrower who is a member of the Armed Forces.''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Fair Credit Reporting Act, as amended by section 405, is 
     further amended by inserting after the item relating to 
     section 605D the following new item:

``605E. Credit rehabilitation for distressed private education loan 
              borrowers who demonstrate a history of loan repayment.''.
       (c) Conforming Amendment.--Section 623(a)(1) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681s-2(a)(1)) is amended by 
     striking subparagraph (E).

     SEC. 302. PRIVATE EDUCATION LOAN DEFINITIONS.

       Section 603 of the Fair Credit Reporting Act (15 U.S.C. 
     1681a), as amended by section 201(a), is further amended by 
     adding at the end the following new subsection:
       ``(cc) Private Education Loan Definitions.--The terms 
     `private education loan' and `private educational lender' 
     have the meanings given such terms, respectively, in section 
     140(a) of the Truth in Lending Act.''.

 TITLE IV--CREDIT RESTORATION FOR VICTIMS OF PREDATORY ACTIVITIES AND 
                  UNFAIR CONSUMER REPORTING PRACTICES

     SEC. 401. ADVERSE CREDIT INFORMATION.

       (a) In General.--Section 605 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681c), as amended by sections 107, 109, and 
     201, is further amended--
       (1) in subsection (a)--
       (A) by striking ``Except as authorized under subsection 
     (b), no'' and inserting ``No'';
       (B) in paragraph (1), by striking ``10 years'' and 
     inserting ``7 years'';
       (C) in paragraph (2), by striking ``Civil suits, civil 
     judgments, and records'' and inserting ``Records'';
       (D) in paragraph (3), by striking ``seven years'' and 
     inserting ``4 years'';
       (E) in paragraph (4), by striking ``seven years'' and 
     inserting ``4 years'';
       (F) in paragraph (5)--
       (i) by striking ``, other than records of convictions of 
     crimes''; and
       (ii) by striking ``seven years'' and inserting ``4 years''; 
     and
       (G) by adding at the end the following new paragraphs:
       ``(9) Civil suits and civil judgments (except as provided 
     in paragraph (8)) that, from date of entry, antedate the 
     report by more than 4 years

[[Page H675]]

     or until the governing statute of limitations has expired, 
     whichever is the longer period.
       ``(10) A civil suit or civil judgment--
       ``(A) brought by a private education loan holder that, from 
     the date of successful completion of credit restoration or 
     rehabilitation in accordance with the requirements of section 
     605D or 605E, antedates the report by 45 calendar days; or
       ``(B) brought by a lender with respect to a covered 
     residential mortgage loan (as defined in section 605C(b)) 
     that antedates the report by 45 calendar days.
       ``(11) Records of convictions of crimes which antedate the 
     report by more than 7 years.
       ``(12) Any other adverse item of information relating to 
     the collection of debt that did not arise from a contract or 
     an agreement to pay by a consumer, including fines, tickets, 
     and other assessments, as determined by the Bureau, excluding 
     tax liability.'';
       (2) by striking subsection (b) and redesignating 
     subsections (c) through (h) as subsections (b) through (g), 
     respectively; and
       (3) in subsection (b) (as so redesignated), by striking 
     ``7-year period referred to in paragraphs (4) and (6)'' and 
     inserting ``4-year period referred to in paragraphs (4) and 
     (5)''.
       (b) Conforming Amendments.--The Fair Credit Reporting Act 
     (15 U.S.C. 1681) is amended--
       (1) in section 616(e) (as redesignated by section 
     110(a)(1)(B)), by striking ``section 605(g)'' each place that 
     term appears and inserting ``section 605(f)''; and
       (2) in section 625(b)(5)(A), by striking ``section 605(g)'' 
     and inserting ``section 605(f)''.

     SEC. 402. EXPEDITED REMOVAL OF FULLY PAID OR SETTLED DEBT 
                   FROM CONSUMER REPORTS.

       Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 
     1681c(a)), as amended by section 401, is further amended by 
     adding at the end the following new paragraph:
       ``(13) Any other adverse item of information related to a 
     fully paid or settled debt that had been characterized as 
     delinquent, charged off, or in collection which, from the 
     date of payment or settlement, antedates the report by more 
     than 45 calendar days.''.

     SEC. 403. MEDICAL DEBT COLLECTIONS.

       (a) Removal of Fully Paid or Settled Medical Debt From 
     Consumer Reports.--Section 605(a) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681c(a)), as amended by section 
     402, is further amended by adding at the end the following 
     new paragraph:
       ``(14) Any other adverse item of information related to a 
     fully paid or settled debt arising from the receipt of 
     medical services, products, or devices that had been 
     characterized as delinquent, charged off, or in collection 
     which, from the date of payment or settlement, antedates the 
     report by more than 45 calendar days.''.
       (b) Establishing an Extended Time Period Before Certain 
     Medical Debt Information May Be Reported.--Section 605(a) of 
     the Fair Credit Reporting Act (15 U.S.C. 1681c(a)), as 
     amended by subsection (a), is further amended by adding at 
     the end the following new paragraph:
       ``(15) Any information related to a debt arising from the 
     receipt of medical services, products, or devices, if the 
     date on which such debt was placed for collection, charged to 
     profit or loss, or subjected to any similar action antedates 
     the report by less than 365 calendar days.''.
       (c) Prohibition on Reporting Medically Necessary 
     Procedures.--Section 605(a) of the Fair Credit Reporting Act 
     (15 U.S.C. 1681c(a)), as amended by subsection (b), is 
     further amended by adding at the end the following new 
     paragraph:
       ``(16) Any information related to a debt arising from a 
     medically necessary procedure.''.
       (d) Medically Necessary Procedure Defined.--Section 603 of 
     the Fair Credit Reporting Act (15 U.S.C. 1681a), as amended 
     by section 901, is further amended by adding at the end the 
     following:
       (ee) Medically Necessary Procedure.--The term `medically 
     necessary procedure' means--
       ``(1) health care services or supplies needed to diagnose 
     or treat an illness, injury, condition, disease, or its 
     symptoms and that meet accepted standards of medicine; and
       ``(2) health care to prevent illness or detect illness at 
     an early stage, when treatment is likely to work best 
     (including preventive services such as pap tests, flu shots, 
     and screening mammograms).''.
       (e) Technical Amendment.--Section 604(g)(1)(C) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681b(g)(1)(C)) is further 
     amended by striking ``devises'' and inserting ``devices''.

     SEC. 404. CREDIT RESTORATION FOR VICTIMS OF PREDATORY 
                   MORTGAGE LENDING AND SERVICING.

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

     ``Sec. 605C. Credit restoration for victims of predatory 
       mortgage lending

       ``(a) In General.--A consumer reporting agency may not 
     furnish any consumer report containing any adverse item of 
     information relating to a covered residential mortgage loan 
     (including the origination and servicing of such a loan, any 
     loss mitigation activities related to such a loan, and any 
     foreclosure, deed in lieu of foreclosure, or short sale 
     related to such a loan), if the action or inaction to which 
     the item of information relates--
       ``(1) resulted from an unfair, deceptive, or abusive act or 
     practice, or a fraudulent, discriminatory, or illegal 
     activity of a financial institution, as determined by the 
     Bureau or a court of competent jurisdiction; or
       ``(2) is related to an unfair, deceptive, or abusive act, 
     practice, or a fraudulent, discriminatory, or illegal 
     activity of a financial institution that is the subject of a 
     settlement agreement initiated on behalf of a consumer or 
     consumers and that is between the financial institution and 
     an agency or department of a local, State, or Federal 
     Government, regardless of whether such settlement includes an 
     admission of wrongdoing.
       ``(b) Covered Residential Mortgage Loan Defined.--In this 
     section, the term `covered residential mortgage loan' means 
     any loan primarily for personal, family, or household use 
     that is secured by a mortgage, deed of trust, or other 
     equivalent consensual security interest on a dwelling (as 
     defined in section 103(w) of the Truth in Lending Act), 
     including a loan in which the proceeds will be used for--
       ``(1) a manufactured home (as defined in section 603 of the 
     Housing and Community Development Act of 1974);
       ``(2) any installment sales contract, land contract, or 
     contract for deed on a residential property; or
       ``(3) a reverse mortgage transaction (as defined in section 
     103 of the Truth in Lending Act).''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Fair Credit Reporting Act is amended by inserting after 
     the item relating to section 605B the following new item:

``605C. Credit restoration for victims of predatory mortgage 
              lending.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect at the end of the 18-month period beginning 
     on the date of the enactment of this Act.

     SEC. 405. CREDIT RESTORATION FOR CERTAIN PRIVATE EDUCATION 
                   LOANS BORROWERS.

       (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.), as amended by section 404, is further amended 
     by inserting after section 605C the following new section:

     ``Sec. 605D. Credit restoration for certain private education 
       loans borrowers

       ``(a) Process for Certification as a Qualifying Private 
     Education Loan Borrower.--
       ``(1) In general.--A consumer may submit a request to the 
     Bureau, along with a defraudment claim, to be certified as a 
     qualifying private education loan borrower with respect to a 
     private education loan.
       ``(2) Certification.--The Bureau shall certify a consumer 
     described in paragraph (1) as a qualifying private education 
     loan borrower with respect to a private education loan if the 
     Bureau or a court of competent jurisdiction determines that 
     the consumer has a valid defraudment claim with respect to 
     such loan.
       ``(b) Removal of Adverse Information.--Upon receipt of a 
     notice described in subsection (d)(5), a consumer reporting 
     agency shall remove any adverse information relating to any 
     private education loan with respect to which a consumer is a 
     qualifying private education loan borrower from any consumer 
     report within 45 calendar days of receipt of such 
     notification.
       ``(c) Disclosure.--The Bureau shall disclose the results of 
     a certification determination in writing to the consumer that 
     provides a clear and concise explanation of the basis for the 
     determination of whether such consumer is a qualifying 
     private education loan borrower with respect to a private 
     education loan and, as applicable, an explanation of the 
     consumer's right to have adverse information relating to such 
     loan removed from their consumer report by a consumer 
     reporting agency.
       ``(d) Procedures.--The Bureau shall--
       ``(1) establish procedures for a consumer to submit a 
     request described in subsection (a);
       ``(2) establish procedures to efficiently review, accept, 
     and process such a request;
       ``(3) develop ongoing outreach initiatives and education 
     programs to inform consumers of the circumstances under which 
     such consumer may be eligible to be certified as a qualifying 
     private education loan borrower with respect to a private 
     education loan;
       ``(4) establish procedures, including the manner, form, and 
     content of the notice informing a private educational loan 
     holder of the prohibition on reporting any adverse 
     information relating to a private education loan with respect 
     to which a consumer is a qualifying private education loan 
     borrower; and
       ``(5) establish procedures, including the manner, form, and 
     content of the notice informing a consumer reporting agency 
     of the obligation to remove any adverse information as 
     described in subsection (c).
       ``(e) Standardized Reporting Codes.--A consumer reporting 
     agency shall develop standardized reporting codes for use by 
     private education loan holders to identify and report a 
     qualifying private education loan borrower's status of a 
     request to remove any adverse information relating to any 
     private education loan with respect to which such consumer is 
     a qualifying private education loan borrower. A consumer 
     report in which a person furnishes such codes shall be deemed 
     to comply with the requirements for accuracy and completeness 
     required under sections 607(b), 623(a)(1), and 632. Such 
     codes shall not appear on any report provided to a third 
     party, and shall be removed from the consumer's credit report 
     upon the successful restoration of the consumer's credit 
     under this section.
       ``(f) Defraudment Claim Defined.--For purposes of this 
     section, the term `defraudment claim' means a claim made with 
     respect to a consumer who is a borrower of a private 
     education loan with respect to a proprietary educational 
     institution or career education program in which the consumer 
     alleges that--
       ``(1) the proprietary educational institution or career 
     education program--
       ``(A) engaged in an unfair, deceptive, or abusive act or 
     practice, or a fraudulent, discriminatory, or illegal 
     activity--

[[Page H676]]

       ``(i) as defined by State law of the State in which the 
     proprietary educational institution or career education 
     program is headquartered or maintains or maintained 
     significant operations; or
       ``(ii) under Federal law;
       ``(B) is the subject of an enforcement order, a settlement 
     agreement, a memorandum of understanding, a suspension of 
     tuition assistance, or any other action relating to an 
     unfair, deceptive, or abusive act or practice that is between 
     the proprietary educational institution or career education 
     program and an agency or department of a local, State, or 
     Federal Government; or
       ``(C) misrepresented facts to students or accrediting 
     agencies or associations about graduation or gainful 
     employment rates in recognized occupations or failed to 
     provide the coursework necessary for students to successfully 
     obtain a professional certification or degree from the 
     proprietary educational institution or career education 
     program; or
       ``(2) the consumer has submitted a valid defense to 
     repayment claim with respect to such loan, as determined by 
     the Secretary of Education.''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Fair Credit Reporting Act, as amended by section 404, is 
     further amended by inserting after the item relating to 
     section 605C the following new item:

``605D. Credit restoration for certain private education loans 
              borrowers.''.

     SEC. 406. FINANCIAL ABUSE PREVENTION.

       (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.), as amended by section 301, is further amended 
     by inserting after section 605E the following new section:

     ``Sec. 605F. Financial abuse prevention

       ``For a consumer who is the victim of intentionally abusive 
     or harmful financial behavior, as determined by a court of 
     competent jurisdiction including a family court, juvenile 
     court, or other court with personal jurisdiction, that was 
     conducted by a spouse, family or household member, caregiver, 
     or person with whom such consumer had a dating relationship 
     in a manner which resulted in the inclusion of an adverse 
     item of information on the consumer report of the consumer, 
     and the consumer did not participate in or consent to such 
     behavior, the consumer may apply to a court of competent 
     jurisdiction, including a family court, juvenile court, or 
     other court with personal jurisdiction, for an order to 
     require the removal of such adverse information from the 
     consumer's file maintained by any consumer reporting 
     agency.''.
       (b) Table of Contents Amendment.--The table of contents of 
     the Fair Credit Reporting Act, as amended by section 301, is 
     further amended by inserting after the item relating to 
     section 605E the following new item:

``605F. Financial abuse prevention.''.

     SEC. 407. PROHIBITION OF CERTAIN FACTORS RELATED TO FEDERAL 
                   CREDIT RESTORATION OR REHABILITATION.

       The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as 
     amended by section 502, is further amended--
       (1) by adding at the end the following new section:

     ``Sec. 632. Prohibition of certain factors related to Federal 
       credit restoration or rehabilitation

       ``(a) Restriction on Credit Scoring Models.--A credit 
     scoring model may not--
       ``(1) take into consideration, in a manner adverse to a 
     consumer's credit score or educational credit score, any 
     information in a consumer report concerning the consumer's 
     participation in credit restoration or rehabilitation under 
     section 605C, 605D, or 605E; or
       ``(2) treat negatively, in a manner adverse to a consumer's 
     credit score or educational credit score, the absence of 
     payment history data for an existing account, whether the 
     account is open or closed, where the absence of such 
     information is the result of a consumer's participation in 
     credit restoration or rehabilitation under section 605C, 
     605D, or 605E.
       ``(b) Restriction on Persons Obtaining Consumer Reports.--A 
     person who obtains a consumer report may not--
       ``(1) take into consideration, in a manner adverse to a 
     consumer, any information in a consumer report concerning the 
     consumer's participation in credit restoration or 
     rehabilitation under section 605C, 605D, or 605E; or
       ``(2) treat negatively the absence of payment history data 
     for an existing account, whether the account is open or 
     closed, where the absence of such information is the result 
     of a consumer's participation in credit restoration or 
     rehabilitation under section 605C, 605D, or 605E.
       ``(c) Accuracy and Completeness.--If a person who furnishes 
     information to a consumer reporting agency requests the 
     removal of information from a consumer report or a consumer 
     reporting agency removes information from a consumer report 
     in compliance with the requirements under section 605C, 605D, 
     or 605E, or such information was removed pursuant at section 
     605(a)(11), such report shall be deemed to satisfy the 
     requirements for accuracy and completeness with respect to 
     such information.
       ``(d) Prohibition Related to Adverse Actions and Risk-Based 
     Pricing Decisions.--No person shall use information related 
     to a consumer's participation in credit restoration or 
     rehabilitation under section 605C, 605D, or 605E in 
     connection with any determination of--
       ``(1) the consumer's eligibility or continued eligibility 
     for an extension of credit;
       ``(2) the terms and conditions offered to a consumer 
     regarding an extension of credit; or
       ``(3) an adverse action made for employment purposes.''; 
     and
       (2) in the table of contents for such Act, by inserting 
     after the item relating to section 631 the following new 
     item:

``632. Prohibition of certain factors related to Federal credit 
              restoration or rehabilitation.''.

               TITLE V--CLARITY IN CREDIT SCORE FORMATION

     SEC. 501. CONSUMER BUREAU STUDY AND REPORT TO CONGRESS ON THE 
                   IMPACT OF NON-TRADITIONAL DATA.

       (a) Study.--The Bureau of Consumer Financial Protection 
     shall carry out a study to assess the impact (including the 
     availability and affordability of credit and other noncredit 
     decisions, the potential positive and negative impacts on 
     consumer credit scores, and any unintended consequences) of 
     using traditional modeling techniques or alternative modeling 
     techniques to analyze non-traditional data from a consumer 
     report and of including non-traditional data on consumer 
     reports on the following:
       (1) Consumers with no or minimal traditional credit 
     history.
       (2) Traditionally underserved communities and populations.
       (3) Consumers residing in rural areas.
       (4) Consumers residing in urban areas.
       (5) Racial and ethnic minorities and women.
       (6) Consumers across various income strata, particularly 
     consumers earning less than 120 percent of the area median 
     income (as defined by the Secretary of Housing and Urban 
     Development).
       (7) Immigrants, refugees, and non-permanent residents.
       (8) Minority financial institutions (as defined under 
     section 308(b) of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note)) 
     and community financial institutions.
       (9) Consumers residing in federally assisted housing, 
     including consumers receiving Federal rental subsidies.
       (b) Additional Considerations.--In assessing impacts under 
     subsection (a), the Bureau of Consumer Financial Protection 
     shall also consider impacts on--
       (1) the privacy, security, and confidentiality of the 
     financial, medical, and personally identifiable information 
     of consumers;
       (2) the control of consumers over how such information may 
     or will be used or considered;
       (3) the understanding of consumers of how such information 
     may be used or considered and the ease with which a consumer 
     may decide to restrict or prohibit such use or consideration 
     of such information;
       (4) potential discriminatory effects; and
       (5) disparate outcomes the use or consideration of such 
     information may cause.
       (c) Consideration of Recent Government Studies.--In 
     assessing impacts under subsection (a), the Bureau of 
     Consumer Financial Protection shall also consider recent 
     Government studies on alternative data, including--
       (1) the report of the Bureau of Consumer Financial 
     Protection titled ``CFPB Data Point: Becoming Credit 
     Visible'' (published June 2017); and
       (2) the report of the Comptroller General of the United 
     States titled ``Financial Technology: Agencies Should Provide 
     Clarification on Lenders' Use of Alternative Data'' 
     (published December 2018).
       (d) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Bureau of Consumer Financial 
     Protection shall issue a report to the Committee on Financial 
     Services of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate containing 
     all findings and determinations, including any 
     recommendations for any legislative or regulatory changes, 
     made in carrying out the study required under subsection (a).
       (e) Definitions.--In this section:
       (1) Alternative modeling techniques.--The term 
     ``alternative modeling techniques'' means statistical and 
     mathematical techniques that are not traditional modeling 
     techniques, including decision trees, random forests, 
     artificial neutral networks, nearest neighbor, genetic 
     programming, and boosting algorithms.
       (2) Consumer report.--The term ``consumer report'' has the 
     meaning given such term in section 603 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a).
       (3) Non-traditional data.--The term ``non-traditional 
     data'' means data related to telecommunications, utility 
     payments, rent payments, remittances, wire transfers, data 
     not otherwise regularly included in consumer reports issued 
     by consumer reporting agencies described under section 
     603(p), and such other items as the Bureau of Consumer 
     Financial Protection deems appropriate.
       (4) Traditional modeling techniques.--The term 
     ``traditional modeling techniques'' means statistical and 
     mathematical techniques (including models, algorithms, linear 
     and logistic regression methods, and their outputs) that are 
     traditionally used in automated underwriting processes.

     SEC. 502. CONSUMER BUREAU OVERSIGHT OF CREDIT SCORING MODELS.

       The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as 
     amended by section 701, is further amended--
       (1) by adding at the end the following new section:

     ``Sec. 631. Credit scoring models

       ``(a) Validated Credit Scoring Models.--Not later than 1 
     year after the date of the enactment of this section, the 
     Bureau shall (in consultation with the Board of Governors of 
     the Federal Reserve System, the Comptroller of the Currency, 
     the Board of Directors of the Federal Deposit Insurance 
     Corporation, and the National Credit Union Administration 
     Board) issue final regulations applicable to any person that

[[Page H677]]

     creates, maintains, utilizes, or purchases credit scoring 
     models used in making credit decisions to establish standards 
     for validating the accuracy and predictive value of all such 
     credit scoring models, both before release for initial use 
     and at regular intervals thereafter, for as long as such 
     credit scoring models are made available for purchase or use 
     by such person.
       ``(b) Prohibition.--At least once every 2 years, the Bureau 
     shall conduct a review of credit scoring models to determine 
     whether the use of any particular factors, or the weight or 
     consideration given to certain factors by credit scoring 
     models, is inappropriate, including if such factors do not 
     enhance or contribute to the accuracy and predictive value of 
     the models. Upon the conclusion of its review, the Bureau may 
     prohibit a person described in subsection (a) from weighing, 
     considering, or including certain factors in, or making 
     available for purchase or use, certain credit scoring models 
     or versions, as the Bureau determines appropriate.''; and
       (2) in the table of contents for such Act, as amended by 
     section 701, by adding after the item relating to section 630 
     the following new item:

``631. Credit scoring models.''.

    TITLE VI--RESTRICTIONS ON CREDIT CHECKS FOR EMPLOYMENT DECISIONS

     SEC. 601. PROHIBITION ON THE USE OF CREDIT INFORMATION FOR 
                   MOST EMPLOYMENT DECISIONS.

       (a) In General.--Section 604 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681b) is amended--
       (1) in subsection (a)(3)(B), by inserting ``, subject to 
     the requirements of subsection (b)'' after ``purposes''; and
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) by amending the paragraph heading to read as follows: 
     ``Use of Consumer Reports for Employment Purposes'';
       (ii) in subparagraph (A), by redesignating clauses (i) and 
     (ii) as subclauses (I) and (II), respectively (and conforming 
     the margins accordingly);
       (iii) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively (and conforming the margins 
     accordingly);
       (iv) by striking the period at the end of clause (ii) (as 
     so redesignated) and inserting ``; and'';
       (v) by striking ``agency may furnish'' and inserting 
     ``agency--
       ``(A) may furnish''; and
       (vi) by adding at the end the following new subparagraph:
       ``(B) except as provided in paragraph (5), may not furnish 
     a consumer report for employment purposes with respect to any 
     consumer in which any information contained in the report 
     bears on the consumer's creditworthiness, credit standing, or 
     credit capacity.''; and
       (B) by adding at the end the following new paragraphs:
       ``(5) Requirements for consumer reports bearing on the 
     consumer's creditworthiness, credit standing, or credit 
     capacity.--
       ``(A) In general.--A person may use a consumer report for 
     employment purposes with respect to any consumer in which any 
     information contained in the report bears on the consumer's 
     creditworthiness, credit standing, or credit capacity only 
     if--
       ``(i) either--

       ``(I) the person is required to obtain the report by a 
     Federal, State, or local law or regulation; or
       ``(II) the information contained in the report is being 
     used with respect to a national security investigation (as 
     defined in paragraph (4)(D));

       ``(ii) none of the cost associated with obtaining the 
     consumer report will be passed on to the consumer to whom the 
     report relates; and
       ``(iii) the information contained in the consumer report 
     will not be disclosed to any other person other than--

       ``(I) in an aggregate format that protects a consumer's 
     personally identifiable information; or
       ``(II) as may be necessary to comply with any applicable 
     Federal, State, or local equal employment opportunity law or 
     regulation.

       ``(B) Disclosures.--A person who procures, or causes to be 
     procured, a consumer report described in subparagraph (A) for 
     employment purposes shall, in the disclosure made pursuant to 
     paragraph (2), include--
       ``(i) an explanation that a consumer report is being 
     obtained for employment purposes;
       ``(ii) the reasons for obtaining such a report; and
       ``(iii) the citation to the applicable Federal, State, or 
     local law or regulation described in subparagraph (A)(i)(I).
       ``(C) Adverse actions.--In using a consumer report 
     described in subparagraph (A) for employment purposes and 
     before taking an adverse action based in whole or in part on 
     the report, the person intending to take such adverse action 
     shall, in addition to the information described in paragraph 
     (3), provide to the consumer to whom the report relates--
       ``(i) the name, address, and telephone number of the 
     consumer reporting agency that furnished the report 
     (including, for a consumer reporting agency that compiles and 
     maintains files on consumers on a nationwide basis, a toll-
     free telephone number established by such agency);
       ``(ii) the date on which the report was furnished; and
       ``(iii) the specific factors from the report upon which the 
     adverse action (as defined in section 603(k)(1)(B)(ii)) was 
     based.
       ``(D) National security investigations.--The requirements 
     of paragraph (4) shall apply to a consumer report described 
     under subparagraph (A).
       ``(E) Non-circumvention.--With respect to a consumer report 
     in which any information contained in the report bears on the 
     consumer's creditworthiness, credit standing, or credit 
     capacity, if a person is prohibited from using the consumer 
     report pursuant to subparagraph (A), such person may not, 
     directly or indirectly, either orally or in writing, require, 
     request, suggest, or cause any employee or prospective 
     employee to submit such information to the person as a 
     condition of employment.
       ``(F) Non-waiver.--A consumer may not waive the 
     requirements of this paragraph with respect to a consumer 
     report.
       ``(6) Rule of construction.--Nothing in this subsection 
     shall be construed to require a consumer reporting agency to 
     prevent a Federal, State, or local law enforcement agency 
     from accessing information in a consumer report to which the 
     law enforcement agency could otherwise obtain access.''.
       (b) Technical Amendment.--The Fair Credit Reporting Act (15 
     U.S.C. 1681 et seq.) is amended by striking ``section 
     604(b)(4)(E)(i)'' each place such term appears and inserting 
     ``section 604(b)(4)(D)(i)''.
       (c) Rule of Construction.--The amendments made by this Act 
     may not be construed as limiting the ability of a person to 
     use non-financial or non-credit related consumer report 
     information.

  TITLE VII--PROHIBITION ON MISLEADING AND UNFAIR CONSUMER REPORTING 
                               PRACTICES

     SEC. 701. PROHIBITION ON AUTOMATIC RENEWALS FOR PROMOTIONAL 
                   CONSUMER REPORTING AND CREDIT SCORING PRODUCTS 
                   AND SERVICES.

       The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is 
     amended--
       (1) by adding at the end the following new section:

     ``Sec. 630. Promotional periods

       ``(a) Termination Notice.--With respect to any product or 
     service related to a consumer report or a credit score that 
     is provided to a consumer under promotional terms, the seller 
     or provider of such product or service shall provide clear 
     and conspicuous notice to the consumer within a reasonable 
     period of time before the promotional period ends.
       ``(b) Opt-In.--With respect to any such product or service, 
     the seller or provider may not continue to sell or provide 
     such product or service to the consumer after the end of the 
     promotional period unless the consumer specifically agrees at 
     the end of the promotional period to continue receiving the 
     product or service.''; and
       (2) in the table of contents for such Act, by inserting 
     after the item relating to section 629 the following new 
     item:

``630. Promotional periods.''.

     SEC. 702. PROHIBITION ON MISLEADING AND DECEPTIVE MARKETING 
                   RELATED TO THE PROVISION OF CONSUMER REPORTING 
                   AND CREDIT SCORING PRODUCTS AND SERVICES.

       Section 609 of the Fair Credit Reporting Act (15 U.S.C. 
     1681g), as amended by section 206, is further amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``request, except'' and all that follows 
     through ``consumer to whom'' and inserting ``request, unless 
     the consumer to whom'';
       (ii) by striking ``disclosure; and'' and inserting 
     ``disclosure.''; and
       (iii) by striking subparagraph (B); and
       (B) in paragraph (6), by inserting ``or educational credit 
     score (if applicable) under subsection (f) or section 612'' 
     before the period at the end; and
       (2) by adding at the end the following new subsection:
       ``(j) Disclosures on Products and Services.--The Bureau, in 
     consultation with the Federal Trade Commission, shall issue 
     regulations within 18 months of the date of the enactment of 
     this subsection requiring each consumer reporting agency and 
     reseller to clearly and conspicuously disclose all material 
     terms and conditions, including any fee and pricing 
     information associated with any products or services offered, 
     advertised, marketed, or sold to consumers by the agency or 
     reseller. Such disclosures shall be made in all forms of 
     communication to consumers and displayed prominently on the 
     agency or reseller's website and all other locations where 
     products or services are offered, advertised, marketed, or 
     sold to consumers.''.

     SEC. 703. PROHIBITION ON EXCESSIVE DIRECT-TO-CONSUMER SALES.

       The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as 
     amended by section 407, is further amended--
       (1) by adding after section 632 the following new section:

     ``Sec. 633. Fair and reasonable fees for products and 
       services

       ``The Bureau may, with respect to any product or service 
     offered by a consumer reporting agency to a consumer, set a 
     fair and reasonable maximum fee that may be charged for such 
     product or service, except where such maximum fee is 
     otherwise provided under this title.''; and
       (2) in the table of contents for such Act, by adding at the 
     end the following new item:

``633. Fair and reasonable fees for products and services.''.

     SEC. 704. FAIR ACCESS TO CONSUMER REPORTING AND CREDIT 
                   SCORING DISCLOSURES FOR NONNATIVE ENGLISH 
                   SPEAKERS AND THE VISUALLY AND HEARING IMPAIRED.

       The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as 
     amended by section 903, is further amended--
       (1) by adding at the end the following new section:

     ``Sec. 635. Fair access to information for nonnative English 
       speakers and the visually and hearing impaired

       ``(a) In General.--Not later than 180 days after the date 
     of the enactment of this section, the Bureau shall issue a 
     rule to require consumer reporting agencies and persons who 
     furnish information to consumer reporting agencies

[[Page H678]]

     under this title, to the maximum extent reasonably 
     practicable--
       ``(1) to provide any information, disclosures, or other 
     communication with consumers--
       ``(A) in each of the 10 most commonly spoken languages, 
     other than English, in the United States, as determined by 
     the Bureau of the Census on an ongoing basis; and
       ``(B) in formats accessible to individuals with hearing or 
     vision impairments; and
       ``(2) to ensure that--
       ``(A) customer service representatives, including employees 
     assigned to handle disputes or appeals under sections 611 and 
     623, who are available to assist consumers are highly 
     familiar with the requirements of this title;
       ``(B) such representatives are available during regular 
     business hours and outside of regular business hours, 
     including evenings and weekends; and
       ``(C) at least one among such representatives is fluent in 
     each of the 10 most commonly spoken languages, other than 
     English, in the United States, as determined by the Bureau of 
     the Census on an ongoing basis.
       ``(b) Bureau Consultation.--The Bureau shall consult with 
     advocates for civil rights, consumer groups, community 
     groups, and organizations that serve traditionally 
     underserved communities and populations in issuing the rule 
     described in subsection (a).''; and
       (2) in the table of contents for such Act, by adding at the 
     end the following new item:

``635. Fair access to information for nonnative English speakers and 
              the visually and hearing impaired.''.

     SEC. 705. COMPARISON SHOPPING FOR LOANS WITHOUT HARM TO 
                   CREDIT STANDING.

       Section 605 of the Fair Credit Reporting Act (15 U.S.C. 
     1681c), as amended by section 401, is further amended by 
     adding at the end the following new subsection:
       ``(h) Encouraging Comparison Shopping for Loans.--
       ``(1) In general.--With respect to multiple enquiries of 
     the same type made to a consumer reporting agency for a 
     consumer report or credit score with respect to a consumer, 
     any credit scoring model shall treat such enquiries as a 
     single enquiry if the enquiries are made within a 120-day 
     period.
       ``(2) Definition of enquiries of the same type.--With 
     respect to multiple enquiries made to a consumer reporting 
     agency for a consumer report or credit score with respect to 
     a consumer, such enquiries are `of the same type' if the 
     consumer reporting agency has reason to believe that the 
     enquiries are all made for the purpose of determining the 
     consumer's creditworthiness for an extension of credit 
     described in one of the following:
       ``(A) A covered residential mortgage loan (as defined in 
     section 605C).
       ``(B) A motor vehicle loan or lease (as described in 
     section 609(i)).
       ``(C) A private education loan.
       ``(D) Any other consumer financial product or service, as 
     determined by the Bureau.''.

     SEC. 706. NATIONWIDE CONSUMER REPORTING AGENCIES REGISTRY.

       The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as 
     amended by section 704, is further amended--
       (1) by adding at the end the following new section:

     ``Sec. 636. Nationwide consumer reporting agencies registry

       ``(a) In General.--Not later than 1 year after the date of 
     enactment of this section, the Bureau shall establish and 
     maintain a publicly accessible registry of consumer reporting 
     agencies described in subsection (p) or (x) of section 603 
     (and any other agencies the Bureau determines provide similar 
     services to such consumer reporting agencies) that includes 
     current contact information of each such agency, including 
     the Internet website address of the Internet website 
     described under section 611(h), and information on how 
     consumers can obtain their consumer report, credit scores, or 
     educational credit scores (as applicable) by toll-free 
     telephone, postal mail, or electronic means.
       ``(b) Registry Requirements.--The registry described in 
     subsection (a) shall--
       ``(1) identify the largest agencies and the markets and 
     demographics covered by such agencies; and
       ``(2) disclose, with respect to each agency, whether the 
     agency is subject to the supervisory authority of the Bureau 
     under this title.
       ``(c) Information Updates.--Each agency described under 
     subsection (a) shall submit to the Bureau contact information 
     for the registry, including any updates to such information. 
     The Bureau shall--
       ``(1) independently verify information submitted by each 
     agency; and
       ``(2) update the registry not less frequently than 
     annually.''; and
       (2) in the table of contents for such Act by adding at the 
     end the following new item:

       ``636. Nationwide consumer reporting agencies registry.''.

     SEC. 707. PROTECTION FOR CERTAIN CONSUMERS AFFECTED BY A 
                   SHUTDOWN.

       (A) Definition of Employee Affected by a Shutdown.--Section 
     603 of the Fair Credit Reporting Act (15 U.S.C. 1681a), as 
     amended by section 901, is further amended by adding at the 
     end the following:
       ``(ee) Employee Affected by a Shutdown.--With respect to a 
     shutdown, the term `employee affected by a shutdown' means a 
     consumer who--
       ``(1) is an employee of--
       ``(A) the Federal Government, and who is furloughed or 
     excepted from a furlough during the shutdown;
       ``(B) the District of Columbia, and who is furloughed or 
     excepted from a furlough during the shutdown;
       ``(C) the District of Columbia Courts, and who is 
     furloughed or excepted from a furlough during the shutdown;
       ``(D) the Public Defender Service for the District of 
     Columbia, and who is furloughed or excepted from a furlough 
     during the shutdown; or
       ``(E) a Federal contractor (as defined under section 710 of 
     title 41, United States Code) or other business, and who has 
     experienced a substantial reduction in pay (directly or 
     indirectly) due to the shutdown; and
       (2) who--
       ``(A) is listed in the database established under section 
     63; or
       ``(B) has self-certified pursuant to such section.
       ``(ff) Shutdown.--The term `shutdown' means any period in 
     which there is more than a 24-hour lapse in appropriations as 
     a result of a failure to enact a regular appropriations bill 
     or continuing resolution.
       (gg) Covered Shutdown Period.--The term `covered shutdown 
     period' means, with respect to a shutdown, the period 
     beginning on the first day of the shutdown and ending on the 
     date that is 90 days after the last day of the shutdown.''.
       (b) Exclusion for Employees Affected by a Shutdown.--
     Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 
     1681c(a)), as amended by section 809, is further amended by 
     adding at the end the following:
       ``(18) Any adverse item of information with respect to an 
     action or inaction taken during a covered shutdown period by 
     an employee affected by a shutdown.''.
       (c) Amendment to Summary of Rights for Employees Affected 
     by a Shutdown.--Secgtion 609(a) of the Fair Credit Reporting 
     Act (15 U.S.C. 1681g(a)) is amended by adding at the end the 
     following:
       ``(7) Information on the rights of an employee affected by 
     a shutdown, including which consumers may be an employee 
     affected by a shutdown and the process for a consumer to 
     self-certify as an employee affected by a shutdown under 
     section 637.''.
       (d) Database and Self-certification for Employees Affected 
     by a Shutdown.--
       (1) In general.--The Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.), as amended by section 706, is further amended 
     by adding at the end the following new section:

     ``Sec. 637. DATABASE AND SELF-CERTIFICATION FOR EMPLOYEES 
                   AFFECTED BY A SHUTDOWN

       ``(a) Database.--
       ``(1) In general.--With respect to each shutdown, the 
     consumer reporting agencies described in section 603(p) shall 
     jointly establish a database that includes employees affected 
     by the shutdown as reported pursuant to paragraph (2).
       ``(2) Contents of database.--
       ``(A) Furloughed employees and contractors.--Each authority 
     of the executive, legislative, or judicial branch of the 
     Federal Government or District of Columbia shall provide to 
     the consumer reporting agencies described in section 603(p) a 
     list identifying--
       ``(i) employees of such authority that are furloughed, 
     excepted from furlough, or not receiving pay because of a 
     shutdown; and
       ``(ii) to the extent practicable, employees of contractors 
     of such authority.
       ``(B) Self-certified consumers.--A consumer that self-
     certifies as an employee affected by a shutdown pursuant to 
     subsection (b) shall be included in the database, unless the 
     Bureau determines such consumer is not an employee affected 
     by a shutdown.
       ``(3) Access to database.--The consumer reporting agencies 
     described in section 603(p) shall make the database 
     established under this subsection available to the Bureau, 
     other consumer reporting agencies, furnishers of information 
     to consumer reporting agencies, and users of consumer 
     reports. A consumer reporting agency described in section 
     603(x) shall periodically access the database to confirm the 
     accuracy of information such an agency has that identifies a 
     consumer as an employee affected by a shutdown.
       ``(B) Self-Certification Process.--A consumer shall be 
     deemed to be an employee affected by a shutdown if such 
     consumer self-certifies through--
       ``(1) the website established under subsection (c); or
       ``(2) a toll-free telephone number established by a 
     consumer reporting agency.
       ``(c) Website.--The consumer reporting agencies described 
     in section 603(p) shall jointly establish a website for a 
     consumer to self-certify as an employee affected by a 
     shutdown. Such website may not include any advertisement or 
     other solicitation.
       ``(d) Opt-out.--The consumer reporting agencies described 
     in section 603(p) shall provided a process through the 
     website described under subsection (c) for consumers to opt-
     out of having their name included in the database established 
     under this section.''.
       (2) Table of contents amendment.--The table of contents of 
     the Fair Credit Reporting Act, as amended by section 706, if 
     further amended by adding at the end the following new item:
``637. Database and self-certification for employees affected by a 
              shutdown.''.
       (e) Prohibition on Adverse Actions Against Employees 
     Affected by a Shutdown.--Section 604 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681b) is amended by adding at the 
     end the following:
       ``(h) Prohibition on Adverse Actions Against Employees 
     Affected by a Shutdown.--If a user of a consumer report knows 
     that a consumer is an employee affected by a shutdown, such 
     user may not take an adverse action based on--

[[Page H679]]

       ``(1) an adverse item of information contained in such 
     report with respect to an action or inaction taken during a 
     covered shutdown period by the employee; or
       ``(2) information on the consumer included in the database 
     established under section 637.''.
       (f) Bureau Regulations or Guidance.--Not later than 30 days 
     after the date of the enactment of this Act, the Director of 
     the Bureau of Consumer Financial Protection shall issue rules 
     or guidance, as appropriate, to carry out the requirements of 
     this Act.

  TITLE VIII--PROTECTIONS AGAINST IDENTITY THEFT, FRAUD, OR A RELATED 
                                 CRIME

     SEC. 801. IDENTITY THEFT REPORT DEFINITION.

       Paragraph (4) of section 603(q) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a(q)(4)) is amended to read as 
     follows:
       ``(4) Identity theft report.--The term `identity theft 
     report' has the meaning given that term by rule of the 
     Bureau, and means, at a minimum, a report--
       ``(A) that is a standardized affidavit that alleges that a 
     consumer has been a victim of identity theft, fraud, or a 
     related crime, or has been harmed by the unauthorized 
     disclosure of the consumer's financial or personally 
     identifiable information, that was developed and made 
     available by the Bureau; or
       ``(B)(i) that alleges an identity theft, fraud, or a 
     related crime, or alleges harm from the unauthorized 
     disclosure of the consumer's financial or personally 
     identifiable information;
       ``(ii) 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 Bureau; and
       ``(iii) the filing of which subjects the person filing the 
     report to criminal penalties relating to the filing of false 
     information if the information in the report is actually 
     false.''.
       (b) Rulemaking.--Not later than the end of the 2-year 
     period beginning on the date of enactment of this Act, the 
     Director of the Bureau of Consumer Financial Protection shall 
     issue final rules to carry out the amendment made by 
     subsection (a).

     SEC. 802. AMENDMENT TO PROTECTION FOR FILES AND CREDIT 
                   RECORDS OF PROTECTED CONSUMERS.

       (a) Amendment to Definition of ``File''.--Section 603(g) of 
     the Fair Credit Reporting Act (15 U.S.C. 1681a(g)) is amended 
     by inserting ``, except that such term excludes a record 
     created pursuant to section 605A(j)'' after ``stored''.
       (b) Amendment to Protection for Files and Credit Records.--
     Section 605A(j) of the Fair Credit Reporting Act (15 U.S.C. 
     1681c-1(j)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B)(ii), by striking ``an incapacitated 
     person or a protected person'' and inserting ``a person''; 
     and
       (B) by amending subparagraph (E) to read as follows:
       ``(E) The term `security freeze'--
       ``(i) has the meaning given in subsection (i)(1)(C); and
       ``(ii) with respect to a protected consumer for whom the 
     consumer reporting agency does not have a file, means a 
     record that is subject to a security freeze that a consumer 
     reporting agency is prohibited from disclosing to any person 
     requesting the consumer report for the purpose of opening a 
     new account involving the extension of credit.''; and
       (2) in paragraph (4)(D), by striking ``a protected consumer 
     or a protected consumer's representative under subparagraph 
     (A)(i)'' and inserting ``a protected consumer described under 
     subparagraph (A)(ii) or a protected consumer's 
     representative''.

     SEC. 803. ENHANCEMENT TO 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) by inserting ``or has been or is about to be harmed by 
     the unauthorized disclosure of the consumer's financial or 
     personally identifiable information,'' after ``identity 
     theft,'';
       (iii) in subparagraph (A)--

       (I) by inserting ``(which period may be extended upon 
     request of the consumer or such representative)'' after ``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 new subparagraph:
       ``(C) upon the expiration of the period described in 
     subparagraph (A) or any extension of such period, and in 
     response to a direct request by the consumer or such 
     representative, continue the fraud alert for a period of 1 
     additional year if the information asserted in this paragraph 
     remains applicable.''; and
       (C) in paragraph (2)--
       (i) in the paragraph heading, by inserting ``and credit or 
     educational credit scores'' after ``reports'';
       (ii) by inserting ``1-year'' before ``fraud alert'';
       (iii) in subparagraph (A), by inserting ``and credit score 
     or educational credit score'' after ``file''; and
       (iv) 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 a consumer'';
       (2) in subsection (b)--
       (A) in the subsection heading, by striking ``Extended'' and 
     inserting ``Seven-Year'';
       (B) in paragraph (1)--
       (i) in subparagraph (A), by inserting ``(which period may 
     be extended upon request of the consumer or such 
     representative)'' after ``7-year period beginning on the date 
     of such request'';
       (ii) in subparagraph (B)--

       (I) by striking ``the 5-year period beginning on the date 
     of such request'' and inserting ``such 7-year period 
     (including any extension of such period)''; and
       (II) by striking ``and'' at the end;

       (iii) in subparagraph (C)--

       (I) by striking ``extended'' and inserting ``7-year''; and
       (II) by striking the period at the end and inserting ``; 
     and''; and

       (iv) by adding at the end the following new subparagraph:
       ``(D) upon the expiration of such 7-year period or any 
     extension of such period, and in response to a direct request 
     by the consumer or such representative, continue the fraud 
     alert for a period of 7 additional years if the consumer or 
     such representative submits an updated identity theft 
     report.''; and
       (C) in paragraph (2)--
       (i) in the paragraph heading, by inserting ``and credit or 
     educational credit scores'' after ``reports''; and
       (ii) by amending subparagraph (A) to read as follows:
       ``(A) disclose to the consumer that the consumer may 
     request a free copy of the file and credit score or 
     educational credit score 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 consumer's file; and'';
       (3) in subsection (c)--
       (A) in paragraph (1), by inserting ``or educational credit 
     score'' after ``credit score'';
       (B) by redesignating paragraphs (1), (2), and (3), as 
     subparagraphs (A), (B), and (C), respectively (and conforming 
     the margins accordingly);
       (C) by striking ``Upon the direct request'' and inserting:
       ``(1) In general.--Upon the direct request''; and
       (D) by adding at the end the following new paragraph:
       ``(2) Access to free reports and credit or educational 
     credit scores.--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 and credit score or educational credit score of the 
     active duty military consumer pursuant to section 612(d), 
     during each 12-month period beginning on the date that the 
     activity duty military alert is requested and ending on the 
     date of the last day the active duty alert applies to the 
     file of the active duty military consumer; and
       ``(B) provide to the active duty military 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).'';
       (4) by amending subsection (d) to read as follows:
       ``(d) Procedures.--Each consumer reporting agency described 
     in section 603(p) shall include on the webpage required under 
     subsection (i) 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 
     security 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 security 
     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 consumer's financial or 
     personally identifiable information, for a consumer seeking a 
     1-year fraud alert or security freeze.'';
       (5) in subsection (e), 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 security freeze (as 
     applicable)'';
       (7) in subsection (g)--
       (A) by inserting ``or has been harmed by the unauthorized 
     disclosure of the consumer's financial or personally 
     identifiable information, or to inform such agency of the 
     consumer's participation in credit restoration or 
     rehabilitation under section 605C, 605D, or 605E,'' after 
     ``identity theft,''; and
       (B) by inserting ``or security freezes'' after ``request 
     alerts'';
       (8) in subsection (h)--
       (A) in paragraph (1)--
       (i) in the paragraph heading, by striking ``initial'' and 
     inserting ``1-year''; and
       (ii) by striking ``initial'' and inserting ``1-year'' each 
     place such term appears; and
       (B) in paragraph (2)--
       (i) in the paragraph heading, by striking ``extended'' and 
     inserting ``7-year''; and
       (ii) by striking ``extended'' and inserting ``7-year'' each 
     place such term appears; and
       (9) in subsection (i)(4)--
       (A) by striking subparagraphs (E) and (I); and
       (B) by redesignating subparagraphs (F), (G), (H), and (J) 
     as subparagraphs (E), (F), (G), and (H), respectively.

     SEC. 804. AMENDMENT TO SECURITY FREEZES FOR CONSUMER REPORTS.

       (a) In General.--Section 605A(i) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681c-1(i)) is amended--

[[Page H680]]

       (1) by amending the subsection heading to read as follows: 
     ``Security Freezes for Consumer Reports'';
       (2) in paragraph (3)(E), by striking ``Upon receiving'' and 
     all that follows through ``subparagraph (C),'' and inserting 
     ``Upon receiving a direct request from a consumer for a 
     temporary removal of a security freeze, a consumer reporting 
     agency shall'';
       (3) by adding at the end the following:
       ``(7) Relation to state law.--This subsection does not 
     modify or supersede the laws of any State relating to 
     security freezes or other similar actions, except to the 
     extent those laws are inconsistent with any provision of this 
     title, and then only to the extent of the inconsistency. For 
     purposes of this subsection, a term or provision of a State 
     law is not inconsistent with the provisions of this 
     subsection if the term or provision affords greater 
     protection to the consumer than the protection provided under 
     this subsection as determined by the Bureau.''.
       (b) Amendment to Webpage Requirements.--Section 
     605A(i)(6)(A) of the Fair Credit Reporting Act (15 U.S.C. 
     1681c-1(i)(6)(A)) is amended--
       (1) in clause (ii), by striking ``initial fraud alert'' and 
     inserting ``1-year fraud alert'';
       (2) in clause (iii), by striking ``extended fraud alert'' 
     and inserting ``7-year fraud alert''; and
       (3) in clause (iv), by striking ``fraud''.
       (c) Amendment to Exceptions for Certain Persons.--Section 
     605A(i)(4)(A) of the Fair Credit Reporting Act (15 U.S.C. 
     1681c-1(i)(4)(A)) is amended to read as follows:
       ``(A) A person, or the person's subsidiary, affiliate, 
     agent, subcontractor, or assignee with whom the consumer has, 
     or prior to assignment had, an authorized 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.''.
       (e) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the date of the enactment of this Act.

     SEC. 805. CLARIFICATION OF INFORMATION TO BE INCLUDED WITH 
                   AGENCY DISCLOSURES.

       Section 609(c)(2) of the Fair Credit Reporting Act (15 
     U.S.C. 1681g(c)(2)) is amended--
       (1) in subparagraph (B)--
       (A) by striking ``consumer reporting agency described in 
     section 603(p)'' and inserting ``consumer reporting agency 
     described in subsection (p) or (x) of section 603'';
       (B) by striking ``the agency'' and inserting ``such an 
     agency''; and
       (C) by inserting ``and an Internet website address'' after 
     ``hours''; and
       (2) in subparagraph (E), by striking ``outdated under 
     section 605 or'' and inserting ``outdated, required to be 
     removed, or''.

     SEC. 806. PROVIDES ACCESS TO FRAUD RECORDS FOR VICTIMS.

       Section 609(e) of the Fair Credit Reporting Act (15 U.S.C. 
     1681g(e)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``resulting from identity theft'';
       (B) by striking ``claim of identity theft'' and inserting 
     ``claim of fraudulent activity''; and
       (C) by striking ``any transaction alleged to be a result of 
     identity theft'' and inserting ``any fraudulent 
     transaction'';
       (2) in paragraph (2)(B)--
       (A) by striking ``identity theft, at the election of the 
     business entity'' and inserting ``fraudulent activity'';
       (B) by amending clause (i) to read as follows:
       ``(i) a copy of an identity theft report; or''; and
       (C) by amending clause (ii) to read as follows:
       ``(ii) an affidavit of fact that is acceptable to the 
     business entity for that purpose.'';
       (3) in paragraph (3), by striking ``identity theft'' and 
     inserting ``fraudulent activity'';
       (4) by striking paragraph (8) and redesignating paragraphs 
     (9) through (13) as paragraphs (8) through (12), 
     respectively; and
       (5) in paragraph (10) (as so redesignated), by striking 
     ``or a similar crime'' and inserting ``, fraud, or a related 
     crime''.

     SEC. 807. REQUIRED BUREAU TO SET PROCEDURES FOR REPORTING 
                   IDENTITY THEFT, FRAUD, AND OTHER RELATED CRIME.

       Section 621(f)(2) of the Fair Credit Reporting Act (15 
     U.S.C. 1681s(f)(2)) is amended--
       (1) in the paragraph heading, by striking ``Model form'' 
     and inserting ``Standardized affidavit'';
       (2) by striking ``The Commission'' and inserting ``The 
     Bureau'';
       (3) by striking ``model form'' and inserting ``standardized 
     affidavit'';
       (4) by inserting after ``identity theft'' the following: 
     ``, fraud, or a related crime, or otherwise are harmed by the 
     unauthorized disclosure of the consumer's financial or 
     personally identifiable information,''; and
       (5) by striking ``fraud.'' and inserting ``identity theft, 
     fraud, or other related crime. Such standardized affidavit 
     and procedures shall not include a requirement that a 
     consumer obtain a police report.''.

     SEC. 808. ESTABLISHES THE RIGHT TO FREE CREDIT MONITORING AND 
                   IDENTITY THEFT PROTECTION SERVICES FOR CERTAIN 
                   CONSUMERS.

       (a) Enforcement of Credit Monitoring for Servicemembers.--
       (1) In general.--Subsection (k) of section 605A (15 U.S.C. 
     1681c-1(a)) is amended by striking paragraph (4).
       (2) Effective date.--This subsection and the amendment made 
     by this subsection shall take effect on the date of the 
     enactment of this Act.
       (b) Free Credit Monitoring and Identity Theft Protection 
     Services for Certain Consumers.--Subsection (k) of section 
     605A (15 U.S.C. 1681c-1), is amended to read as follows:
       ``(k) Credit Monitoring and Identity Theft Protection 
     Services.--
       ``(1) In general.--Upon the direct request of a consumer, 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 (as described in 
     section 1022.123 of title 12, Code of Federal Regulations) 
     shall provide the consumer with credit monitoring and 
     identity theft protection services not later than 1 business 
     day after receiving such request sent by postal mail, toll-
     free telephone, or secure electronic means as established by 
     the agency.
       ``(2) Fees.--
       ``(A) Classes of consumers.--The Bureau may establish 
     classes of consumers eligible to receive credit monitoring 
     and identity theft protection services free of charge.
       ``(B) No fee.--A consumer reporting agency described in 
     section 603(p) may not charge a consumer a fee to receive 
     credit monitoring and identity theft protection services if 
     the consumer or a representative of the consumer--
       ``(i) asserts 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 consumer's financial or personally 
     identifiable information;
       ``(ii) is unemployed and intends to apply for employment in 
     the 60-day period beginning on the date on which the request 
     is made;
       ``(iii) is a recipient of public welfare assistance;
       ``(iv) is an active duty military consumer or a member of 
     the National Guard (as defined in section 101(c) of title 10, 
     United States Code);
       ``(v) is 65 years of age or older; or
       ``(vi) is a member of a class established by the Bureau 
     under subparagraph (A).
       ``(3) Bureau rulemaking.--The Bureau shall issue 
     regulations--
       ``(A) to define the scope of credit monitoring and identity 
     theft protection services required under this subsection; and
       ``(B) to set a fair and reasonable fee that a consumer 
     reporting agency may charge a consumer (other than a consumer 
     described under paragraph (2)(B)) for such credit monitoring 
     and identity theft protection services.
       ``(4) Relation to state law.--This subsection does not 
     modify or supersede of the laws of any State relating to 
     credit monitoring and identity theft protection services or 
     other similar actions, except to the extent those laws are 
     inconsistent with any provision of this title, and then only 
     to the extent of the inconsistency. For purposes of this 
     subsection, a term or provision of a State law is not 
     inconsistent with the provisions of this subsection if the 
     term or provision affords greater protection to the consumer 
     than the protection provided under this subsection as 
     determined by the Bureau.''.
       (c) Rulemaking.--Not later than the end of the 2-year 
     period beginning on the date of enactment of this Act, the 
     Director of the Bureau of Consumer Financial Protection shall 
     issue final rules to carry out the amendment made by 
     subsection (b).

     SEC. 809. ENSURES REMOVAL OF INQUIRIES RESULTING FROM 
                   IDENTITY THEFT, FRAUD, OR OTHER RELATED CRIME 
                   FROM CONSUMER REPORTS.

       Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 
     1681c(a)), as amended by section 403, is further amended by 
     adding at the end the following:
       ``(17) Information about inquiries made for a credit report 
     based on requests that the consumer reporting agency verifies 
     were initiated as the result of identity theft, fraud, or 
     other related crime.''.

                        TITLE IX--MISCELLANEOUS

     SEC. 901. DEFINITIONS.

       Section 603 of the Fair Credit Reporting Act (15 U.S.C. 
     1681a), as amended by section 302, is further amended by 
     adding at the end the following:
       ``(dd) Definitions Related to Days.--
       ``(1) Calendar day; day.--The term `calendar day' or `day' 
     means a calendar day, excluding any federally recognized 
     holiday.
       ``(2) Business day.--The term `business day' means a day 
     between and including Monday to Friday, and excluding any 
     federally recognized holiday.''.

     SEC. 902. TECHNICAL CORRECTION RELATED TO RISK-BASED PRICING 
                   NOTICES.

       Section 615(h)(8) of the Fair Credit Reporting Act (15 
     U.S.C. 1681m) is amended--
       (1) in subparagraph (A), by striking ``this section'' and 
     inserting ``this subsection''; and
       (2) in subparagraph (B), by striking ``This section'' and 
     inserting ``This subsection''.

     SEC. 903. FCRA FINDINGS AND PURPOSE; VOIDS CERTAIN CONTRACTS 
                   NOT IN THE PUBLIC INTEREST.

       (a) FCRA Findings and Purpose.--Section 602 of the Fair 
     Credit Reporting Act (15 U.S.C. 1681(a)) is amended--
       (1) in subsection (a)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) Many financial and non-financial decisions affecting 
     consumers' lives depend upon fair, complete, and accurate 
     credit reporting. Inaccurate and incomplete credit reports 
     directly impair the efficiency of the financial system and 
     undermine the integrity of using credit reports in other 
     circumstances, and unfair credit reporting and credit scoring 
     methods undermine the public confidence which is essential to 
     the continued functioning of the financial services system 
     and the provision of many other consumer products and 
     services.''; and
       (B) in paragraph (4), by inserting after ``agencies'' the 
     following: ``, furnishers, and credit scoring developers''; 
     and
       (2) in subsection (b)--
       (A) by striking ``It is the purpose of this title to 
     require'' and inserting the following: ``The purpose of this 
     title is the following:

[[Page H681]]

       ``(1) To require''; and
       (B) by adding at the end the following:
       ``(2) To prohibit any practices and procedures with respect 
     to credit reports and credit scores that are not in the 
     public interest.''.
       (b) Voiding of Certain Contracts Not in the Public 
     Interest.--
       The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as 
     amended by section 703, is further amended--
       (1) by adding at the end the following new section:

     ``Sec. 634. Voiding of certain contracts not in the public 
       interest

       ``(a) In General.--Any provision contained in a contract 
     that requires a person to not follow a provision of this 
     title, that is against the public interest, or that otherwise 
     circumvents the purposes of this title shall be null and 
     void.
       ``(b) Rule of Construction.--Nothing in subsection (a) 
     shall be construed as affecting other provisions of a 
     contract that are not described under subsection (a).''; and
       (2) in the table of contents for such Act, by inserting 
     after the item relating to section 633 the following new 
     item:

``634. Voiding of certain contracts not in the public interest.''.

  The Acting CHAIR. No further amendment to the bill, as amended, shall 
be in order except those printed in part B of House Report 116-383. 
Each such further amendment may be offered only in the order printed in 
the report, by a Member designated in the report, shall be considered 
read, shall be debatable for the time specified in the report, equally 
divided and controlled by the proponent and an opponent, shall not be 
subject to amendment, and shall not be subject to a demand for division 
of the question.

                              {time}  1415


               Amendment No. 1 Offered by Mr. DeSaulnier

  The Acting CHAIR. It is now in order to consider amendment No. 1 
printed in part B of House Report 116-383.
  Mr. DeSAULNIER. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       In title IX, add at the end the following:

     SEC. 904. GAO STUDY ON THE USE OF CREDIT IN HOUSING 
                   DETERMINATIONS.

       (a) Study.--The Comptroller General of the United States 
     shall carry out a study of the use of consumer reports and 
     credit scores in housing determinations to determine whether 
     consumer reports or credit scores are being used as tools to 
     perform the equivalent of banned red-lining.
       (b) Contents of Study.--In carrying out the study required 
     under subsection (a), the Comptroller General shall--
       (1) examine both rental applications and mortgage 
     applications; and
       (2) include a demographic breakdown by race, gender, age, 
     sexual orientation, city/suburban/rural, socioeconomic 
     status, and any other demographic that the Comptroller 
     General determines appropriate.
       (c) Report.--The Comptroller General shall issue a report 
     to the Congress containing all findings and determinations 
     made in carrying out the study required under subsection (a).

  The Acting CHAIR. Pursuant to House Resolution 811, the gentleman 
from California (Mr. DeSaulnier) and a Member opposed each will control 
5 minutes.
  The Chair recognizes the gentleman from California.
  Mr. DeSAULNIER. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I first state my admiration for the chair of the 
committee and Ms. Pressley and everyone who has worked on this piece of 
legislation.
  Mr. Chairman, credit scores and credit reports impact our daily 
lives, often in ways that we don't realize. They determine whether you 
can get a loan for a car that you need to get to work every day. They 
determine whether you can get a loan to buy a home or rent an apartment 
and how much interest you are going to pay on your home loan. They 
impact your insurance premium and your cell phone. In many States, 
these scores can even determine whether you get a job or not.
  Unfortunately, even though they can have an enormous consequence on a 
person's life, these reports have very little oversight and can easily 
be inaccurate. Even when inaccuracies are spotted by consumers, the 
process for removing or correcting the mistakes is perhaps 
intentionally complicated and time consuming for the average American. 
A person with multiple jobs or no knowledge of credit reporting systems 
could very well give up--and often does--because the system is too 
complex for them.
  This is not only a frustrating cycle but is also damaging to a 
person's financial reputation. We need to know more about how mistakes 
are made, who is responsible for fixing them, and what the impacts of 
those mistakes are on individual Americans' lives.
  For too long, financial stability has been used as an excuse to keep 
lower income people out of traditionally wealthy and middle-class 
neighborhoods. This process, known as ``redlining,'' has been banned, 
but we continue to see the segregation of our neighborhoods along 
demographic and economic lines. Credit scores are being weaponized to 
exclude and separate communities.
  To address this problem, we need reliable data. That is why this 
amendment would require the nonpartisan GAO to study how credit scores 
are used in housing decisions and examine whether individuals are being 
discriminated against in those decisions based on race, gender, age, 
sexual orientation, geographic location, socioeconomic status, and 
more.
  Our society cannot continue to be broken into neighborhoods and 
communities based on the color of our skin or the amount of money in 
our bank accounts. This amendment will help us right this wrong and 
encourage housing decisions that are more equitable and fair for all 
Americans.
  Mr. Chairman, I encourage my colleagues to join me in support of this 
amendment, and I reserve the balance of my time.
  Mr. McHENRY. Mr. Chairman, I claim the time in opposition, although I 
am not opposed to this amendment.
  The Acting CHAIR. Without objection, the gentleman from North 
Carolina is recognized for 5 minutes.
  There was no objection.
  Mr. McHENRY. Mr. Chairman, let me first say I oppose any disparate 
treatment of any person or population. That has no place in our society 
or our communities.
  To that end, the data derived from this study would have been helpful 
to have had before we drafted a bill or we brought it to the House 
floor. I think it is important data for us to consider here as we make 
law.
  The underlying bill removes important predictive information from 
consumer credit reports that helps lenders in assessing a borrower's 
ability to repay. Undermining this responsibility makes it riskier and 
more expensive for lenders to extend credit, which, ultimately, 
increases the cost for consumers. Now, that is problematic; but that is 
the bill, and the bill is problematic.
  Buying a home is the biggest purchase that most Americans will make 
in their lifetime. And while the study is fine and will give us more 
data, it does nothing to make mortgages more affordable or available 
for those consumers who desire homeownership. The fact is the 
underlying bill will make mortgages even more expensive for consumers 
and consumer credit more expensive for those who seek it.
  As I said, I am not opposed to this amendment, but more data is 
obviously always useful.
  Mr. Chairman, I reserve the balance of my time.
  Mr. DeSAULNIER. Mr. Chairman, I yield myself such time as I may 
consume.
  I agree, and as a former small business owner, I see the value of 
credit reports if done fairly and equitably. It should be balanced 
against the need for the lenders and the people who are seeking credit.
  In my area in northern California, I hear stories over and over again 
about people who are working two jobs, and, through no mistake of their 
own, their credit report is not perfect. They don't have the time or 
the expertise to hire someone or to go back in and correct the 
problems. Often, problems can be left on even when they go through the 
process.
  As somebody who was in the retail business, I see this as another 
example of customer service being put on the customer.
  Twenty, 30 years ago, to the credit agencies and retailers--at least, 
in theory--customer service meant you reached out to the client and 
tried to figure out what the problem is. My experience and the 
experience I get anecdotally and the research that I see is that, 
particularly in difficult housing markets, the ability for people to 
get into the housing market either for

[[Page H682]]

rental or for purchase is inhibited and is an obstacle to current 
reporting.
  So, for this amendment, it is about getting more knowledge in a 
dynamic that only 10 years ago was almost disastrous to the economy 
when the housing implosion happened and is happening in many ways again 
as we, as researchers say, in urban areas resegregate based on 
ethnicity and demographics.
  So, in order to get a better understanding, I think this amendment is 
a minimal standard of understanding how the situation has changed and 
how we can protect both the people who are the lenders and also the 
people who may not be lenders but are just trying to get to a point 
where they can rent an apartment or own a home.
  Mr. Chairman, I reserve the balance of my time.
  Mr. McHENRY. Mr. Chairman, I yield back the balance of my time.
  Mr. DeSAULNIER. Mr. Chairman, I urge my colleagues to support this 
commonsense amendment, and I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from California (Mr. DeSaulnier).
  The amendment was agreed to.


                 Amendment No. 2 Offered by Ms. Shalala

  The Acting CHAIR. It is now in order to consider amendment No. 2 
printed in part B of House Report 116-383.
  Ms. SHALALA. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       In title IX, add at the end the following:

     SEC. 904. GAO STUDY ON THE EFFECTS OF CREDIT SCORES IMPACTED 
                   BY A STUDENT BORROWER'S DEFAULTED OR DELINQUENT 
                   PRIVATE EDUCATION LOAN.

       (a) Study.--The Comptroller General of the United States 
     shall carry out a study on how credit scores impacted by a 
     student borrower's defaulted or delinquent private education 
     loan impacts applying for future loans, including information 
     on the treatment of different demographic populations.
       (b) Report.--The Comptroller General shall issue a report 
     to the Congress containing all findings and determinations 
     made in carrying out the study required under subsection (a).

  The Acting CHAIR. Pursuant to House Resolution 811, the gentlewoman 
from Florida (Ms. Shalala) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from Florida.
  Ms. SHALALA. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, when you default on a student loan, you impact your 
credit score. Indeed, your credit score with all three credit agencies 
will most likely drop. That means that buying or renting a house, 
purchasing or leasing a vehicle, going back to school, or receiving 
competitive offers for credit cards will be very difficult.
  Each year, more than 1 million student loan borrowers go into 
default. Nearly 40 percent of borrowers today are expected to default 
on their student loans by 2023.
  We know that people most at risk of defaulting on their student loans 
are more likely to be Hispanic or African American. Defaulters are more 
likely to be older, to be Pell grant recipients, and to come from a 
nontraditional educational background when compared to borrowers who 
never default.
  Research also tells us that people of color are more burdened by 
their educational debt. They have less parental wealth to draw on, as 
well as higher rates of unemployment.
  By the time their loan falls into default, a typical borrower will 
see their score drop around 60 points, to an average of 550, which is 
considered very poor.
  Entering default makes it harder to obtain future loans and prevents 
borrowers from receiving any additional Federal student aid until their 
loans return to good standing. Loan providers can then begin to garnish 
their wages, to impose restrictions on earnings, and to take their tax 
refund.
  A student loan default stays on your credit report for 7 years--even 
if you pay off the loan in full. Having that notification on your 
credit report will make lenders nervous about working with you and hurt 
your economic stability for years.
  Mr. Chairman, my amendment instructs the GAO to carry out a thorough 
review on how credit scores impacted by a student loan default can 
destroy people's lives. The amendment also asks the GAO to examine how 
multiple delinquencies on private student loans can hurt borrowers, 
including a demographic breakdown by race, gender, age, sexual 
orientation, and socioeconomic status.
  Allowing student loans to enter delinquency can often have a negative 
effect on a borrower's credit score and in credit reports due to the 
fact that each loan is reported individually.
  Mr. Chairman, Congress has a vested interest in ensuring that we 
expand the middle class, we grow the economy, and we protect consumers 
from irreversible financial damage to their credit. I believe that H.R. 
3621, with the inclusion of this amendment, will establish parity for 
student borrowers and provide Congress with the necessary tools to 
craft meaningful legislation that will help avoid the tragedy of 
student loan default.
  I thank Congresswoman Kendra Horn for sharing my concerns on this 
issue and for cosponsoring this amendment.
  Mr. Chairman, I urge my colleagues to support the amendment, and I 
yield back the balance of my time.
  Mr. McHENRY. Mr. Chairman, I claim the time in opposition, although I 
am not opposed to the amendment.
  The Acting CHAIR. Without objection, the gentleman from North 
Carolina is recognized for 5 minutes.
  There was no objection.
  Mr. McHENRY. Mr. Chairman, as I said in the previous statement, this 
study would have been helpful to have informed our analysis prior to 
drafting and debating this bill.
  But there is a broader theme fundamental to this amendment and many 
of the amendments that will be offered later in this debate: My 
Democrat colleagues are not fully satisfied with their effort back in 
2010 that nationalized the student loan program. They are coming back 
for the final 8 percent.
  It was the Democrat Congress and Democrat President that nationalized 
the student loan marketplace, and now they want to do away with this 
small portion, the 8 percent of the marketplace, that is private 
student lending.
  In fact, the private educational loans, while only 8 percent of the 
market, if you look at how they perform, they have a 98 percent 
repayment rate, which is far better than the nationalized 92 percent of 
the student loan marketplace. Meanwhile, Federal student loan default 
rates are in the double digits.
  This is simply an attempt to gather data to be used to make it more 
difficult for private lenders to compete in the student loan market.
  The fact is the underlying bill still removes important predictive 
information from consumer credit reports that helps lenders assess a 
borrower's ability to repay.

                              {time}  1430

  The underlying bill will weaken underwriting standards and make 
credit more expensive, especially for those who are on the margins, 
ultimately harming the very consumers we want to help.
  As I said, I am not opposed to the amendment. More data is useful and 
good, and the GAO provides a wonderful resource for Congress in this 
data collection. So with that, as I said, more data is useful.
  Mr. Chair, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentlewoman from Florida (Ms. Shalala).
  The amendment was agreed to.


                 Amendment No. 3 Offered by Mr. Timmons

  The Acting CHAIR. It is now in order to consider amendment No. 3 
printed in part B of House Report 116-383.
  Mr. TIMMONS. Mr. Chair, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       In title IX, add at the end the following:

     SEC. 904. GAO STUDY ON CONSUMER REPORTING AGENCY COMPLIANCE 
                   WITH CONSENT ORDERS.

       (a) Study.--The Comptroller General of the United States 
     shall carry out a study of the compliance by consumer 
     reporting agencies that compile and maintain files on 
     consumers on a nationwide basis with consent orders, and the 
     impact such compliance has on consumers.
       (b) Report.--Not later than the end of the 180-day period 
     beginning on the date of enactment of this Act, the 
     Comptroller General

[[Page H683]]

     shall issue a report to the Committee on Financial Services 
     of the House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate containing all 
     findings and determinations made in carrying out the study 
     required under subsection (a).
       (c) Definitions.--In this section, the terms ``consumer'' 
     and ``consumer reporting agency that compiles and maintains 
     files on consumers on a nationwide basis'' have the meaning 
     given those terms, respectively, under section 603 of the 
     Fair Credit Reporting Act.

  The Acting CHAIR. Pursuant to House Resolution 811, the gentleman 
from South Carolina (Mr. Timmons) and a Member opposed each will 
control 5 minutes.
  The Chair recognizes the gentleman from South Carolina.
  Mr. TIMMONS. Mr. Chair, my amendment is simple. It would require the 
GAO to carry out a study on the compliance of consumer reporting 
agencies with the underlying legislation proposed by my colleague from 
Massachusetts. It would also study what effect the compliance of 
reporting agencies would have on consumers.
  This is important because if this bill were somehow able to become 
law, the results would be disastrous not only for reporting agencies 
but also for the average consumer.
  The purpose of a credit score is to show an individual's 
creditworthiness. This bill would significantly water down the 
integrity of these credit scores.
  If you are removing predictive data, if you are drastically 
shortening the amount of time adverse yet accurate information remains 
on a report, and if you remove medical debt from a report, then what 
exactly is the purpose of a credit score? What will a credit score be 
good for if this bill were to become law?
  The bottom line is this bill would significantly weaken the process 
for determining creditworthiness and would enable individuals to obtain 
loans that they do not have the means to pay back.
  It would also give the CFPB, an unaccountable government agency, 
control over private credit scoring models.
  It is imperative that we know exactly how compliance with this bill 
would affect reporting agencies and, as a result, consumers.
  Mr. Chair, I urge all of my colleagues to support this amendment, and 
I reserve the balance of my time.
  Mr. LAWSON of Florida. Mr. Chair, I claim the time in opposition to 
the amendment, even though I am not opposed to it.
  The Acting CHAIR. Without objection, the gentleman from Florida is 
recognized for 5 minutes.
  There was no objection.
  Mr. LAWSON of Florida. Mr. Chair, I urge my colleagues to support 
this amendment.
  As we know, the three major credit rating agencies, Equifax, 
Experian, and TransUnion, retain credit profile information on more 
than 200 million Americans.
  The underlying bill represents a comprehensive reform of our Nation's 
credit reporting system. This amendment would direct the GAO to review 
just how well the credit reporting agencies are complying with these 
new requirements and how that affects consumers.
  We know that the credit reporting agencies have not been complying 
with the law today. For example, the Fair Credit Reporting Act contains 
provisions requiring credit reports to be accurate, but it is estimated 
that more than 42 million Americans have inaccurate credit reports.
  The credit reporting agencies need to do better by consumers, and if 
they did, perhaps consumer reporting problems would not consistently 
rank in the top three of consumer complaints to the Consumer Financial 
Protection Bureau.
  Mr. Chair, I support this study. If adopted, I hope that Mr. Timmons 
would also support the underlying bill.
  Mr. Chair, I reserve the balance of my time.
  Mr. TIMMONS. Mr. Chair, I would inquire how much time is remaining.
  The Acting CHAIR. The gentleman from South Carolina has 3\1/2\ 
minutes remaining.
  Mr. TIMMONS. Mr. Chair, I yield 1\1/2\ minutes to the gentleman from 
North Carolina (Mr. McHenry), the ranking member.
  Mr. McHENRY. Mr. Chair, I thank my colleague from South Carolina, the 
second newest member of the Financial Services Committee, for offering 
this good, thoughtful amendment.
  This amendment will give us a better picture of the consent orders 
that impact credit reporting agencies, including the CFPB's consent 
orders related to marketing and sale of services.
  This is a good amendment in what is otherwise a bad bill.
  Often in legislating, we try to make bad bills less bad or not-so-
good bills good, but I am grateful that Mr. Timmons offered this 
amendment and grateful for his participation representing upstate South 
Carolina and being a sound policymaker.
  Mr. Chair, I ask my colleagues to support the amendment.
  Mr. LAWSON of Florida. Mr. Chair, I yield myself the balance of my 
time.
  Mr. Chair, in closing, I urge all of my colleagues to support this 
amendment, and I yield back the balance of my time.
  Mr. TIMMONS. Mr. Chair, in closing, I would again urge all of my 
colleagues to support this amendment, and I yield back the balance of 
my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from South Carolina (Mr. Timmons).
  The amendment was agreed to.


                  Amendment No. 4 Offered by Mr. Clay

  The Acting CHAIR. It is now in order to consider amendment No. 4 
printed in part B of House Report 116-383.
  Mr. CLAY. Mr. Chair, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Page 44, line 18, before the period insert ``(increased by 
     $1,000,000)''.
       In title IX, add at the end the following:

     SEC. 904. POSITIVE CREDIT REPORTING PERMITTED.

       (a) In General.--Section 623 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681s-2), as amended by section 103, is 
     further amended by adding at the end the following new 
     subsection:
       ``(g) Full-file Credit Reporting.--
       ``(1) In general.--Subject to the requirements of 
     paragraphs (2) through (5) and notwithstanding any other 
     provision of law, a person that has obtained the written 
     authorization of a consumer may furnish to a consumer 
     reporting agency information relating to the performance of a 
     consumer in making payments--
       ``(A) under a lease agreement with respect to a dwelling; 
     or
       ``(B) pursuant to a contract for services provided by a 
     utility or telecommunication firm.
       ``(2) Limitations.--
       ``(A) Withheld payments due to habitability or sanitary 
     conditions.--No person shall furnish or threaten to furnish 
     negative information relating to the performance of a 
     consumer in making payments under a lease agreement with 
     respect to a dwelling if the consumer has withheld payment 
     pursuant to--
       ``(i) any right or remedy for breach of the warranty of 
     habitability; or
       ``(ii) any violation of a Federal, State, or municipal law, 
     code, or regulation regarding sanitary conditions.
       ``(B) Services provided by a utility or telecommunication 
     firm.--Information about a consumer's usage of any services 
     provided by a utility or telecommunication firm may be 
     furnished to a consumer reporting agency only to the extent 
     that such information relates to--
       ``(i) payment by the consumer for such services; or
       ``(ii) other terms of the provision of such services to the 
     consumer, including any deposit, discount, or conditions for 
     interruption or termination of such services.
       ``(3) Payment plan.--A utility or telecommunication firm 
     may not report payment information to a consumer reporting 
     agency with respect to an outstanding balance of a consumer 
     as late if--
       ``(A) the utility or telecommunication firm and the 
     consumer have entered into a payment plan (including a 
     deferred payment agreement, an arrearage management program, 
     or a debt forgiveness program) with respect to such 
     outstanding balance; and
       ``(B) the consumer is meeting the obligations of the 
     payment plan, as determined by the utility or 
     telecommunication firm.
       ``(4) Prohibition on use by debt collectors.--A debt 
     collector (as defined in section 803(6) of the Fair Debt 
     Collection Practices Act) may not use the information 
     described in paragraph (1).
       ``(5) Relation to state law.--Notwithstanding section 625, 
     this subsection shall not preempt any law of a State with 
     respect to furnishing to a consumer reporting agency 
     information relating to the performance of a consumer in 
     making payments pursuant to a lease agreement with respect to 
     a dwelling or a contract for a utility or telecommunications 
     service. For purposes of this paragraph, the term `law of a 
     State' shall include all laws, decisions, rules, regulations,

[[Page H684]]

     or other State action having the effect of law, as issued by 
     a State, any political subdivisions thereof, or any agency or 
     instrumentality of either the State or a political 
     subdivision thereof.
       ``(6) Utility or telecommunication firm defined.--In this 
     subsection, the term `utility or telecommunication firm'--
       ``(A) means an entity that provides utility services to the 
     public through pipe, wire, landline, wireless, cable, or 
     other connected facilities, or radio, electronic, or similar 
     transmission (including the extension of such facilities); 
     and
       ``(B) includes an entity that provides natural gas or 
     electric service to consumers.''.
       (b) GAO Study and Report.--Not later than 2 years after the 
     date of enactment of this Act, the Comptroller General of the 
     United States shall submit to Congress a report on the impact 
     on consumers of furnishing information pursuant to subsection 
     (g) of section 623 of the Fair Credit Reporting Act (15 
     U.S.C. 1681s-2), as added by subsection (a).

  The Acting CHAIR. Pursuant to House Resolution 811, the gentleman 
from Missouri (Mr. Clay) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Missouri.
  Mr. CLAY. Mr. Chair, I rise in support of my amendment.
  This amendment would clarify the law for reporting certain positive 
consumer credit information to the credit reporting agencies and seeks 
to expand access to credit through the use of alternative data.
  In addition, this amendment addresses several concerns identified by 
consumer advocates, including removing a provision that would have 
preempted State laws and ensuring consumers provide written consent if 
their utility or rental history is to be considered.
  Also, the bill requires a 2-year study and report from GAO on the 
impact of furnishing additional information, which will help us gather 
data to further ensure that American consumers have the tools they need 
to obtain and improve credit and that policymakers can continue to work 
to make improvements to the law.
  The way in which alternative data is used is important. One of the 
most important factors is consumer choice. If the use of alternative 
data is truly voluntary--that is, consumers make knowing and voluntary 
decisions to allow the use of the data, and the information is used 
only for that limited purpose and in ways that consumers would expect--
then it is much more likely to be helpful.
  I am pleased to have the support of the National Consumer Law Center 
on this important provision. They support it because, unlike prior 
versions, it would permit the reporting of utility and rental payment 
information only when the consumer has provided written authorization, 
that is, only when the consumer chooses to.
  In the critical area of lending, it is estimated that the use of 
alternative data by lenders could expand access to credit to over 40 
million consumers in the United States. Imagine the economic activity 
that would generate.
  As internet access increases and data becomes more readily available, 
marketplace or fintech leaders mostly rely on online platforms and 
frequently underwrite loans using alternative data. Despite fintech 
lending serving a small part of the consumer lending market, it 
continues to grow at a rapid rate. That is why it is critical that 
consumers have as much control over the use of their data as possible. 
In fact, according to the GAO, since 2013, personal loans provided by 
fintech lenders tripled to about $17.7 billion by 2017.
  Alternative data used in credit scoring could potentially increase 
accuracy, visibility, and scorability in credit reporting by including 
additional information beyond that which is conventionally used by loan 
officers.
  I would add that my amendment does not preempt State consumer 
protection laws protecting the privacy of utility customers and 
hindering States from regulating tenant screening agencies. This is 
important to the regulation and monitoring of traditional and fintech 
firms. At times, States have a better view than the Federal regulators.
  Lastly, the two largest populations of credit invisibles and 
unscorables are either African American or Hispanic millennials who 
live in lower income neighborhoods like those that I represent in north 
St. Louis. These populations are especially vulnerable to predatory 
lenders and other unscrupulous lenders.
  Mr. Chair, it is time we try this new method to help millions of 
Americans improve their credit scores.
  Mr. Chair, I reserve the balance of my time.
  Mr. HILL of Arkansas. Mr. Chair, I claim the time in opposition to 
the amendment.
  The Acting CHAIR. The gentleman from Arkansas is recognized for 5 
minutes.
  Mr. HILL of Arkansas. Mr. Chair, it doesn't bring me pleasure to 
claim the time in opposition to my good friend from Missouri, and he 
knows how much I appreciate the work he has done on this matter.
  The amendment is certainly, Mr. Chair, well intentioned, but as 
currently drafted, I would argue that this language does more harm to 
consumers than good.
  Let me step back and say that, unrelated to Mr. Clay's amendment, I 
introduced H.R. 4231, the Credit Access and Inclusion Act, which 
expands consumers' access to credit by allowing them to use their rent, 
utility, and telecom payments to help build their credit scores. In 
other words, it would help more people have access to credit with those 
additional facts.
  As my friend noted, and as we have heard in our Task Force on 
Financial Technology and in the Financial Services Committee's Consumer 
Protection and Financial Institutions Subcommittee, additional data 
allows millions more to have access to the credit they need.
  This bill, the Credit Access and Inclusion Act, was introduced in the 
114th Congress and the 115th Congress by my friend, former 
Representative Keith Ellison of Minnesota. I joined in the last 
Congress with him and cosponsored it, and in the 116th, I have 
introduced it.
  So I find it interesting that in the last two Congresses, my bill was 
the appropriate way to handle additional data, but in this Congress, it 
is not.
  Mr. Chair, I would also raise the point that there is a bipartisan 
Senate companion to my bill introduced by Senators Scott and Manchin.

                              {time}  1445

  Furthermore, the language I have introduced was offered as an 
amendment to this bill by Gwen Moore but was ruled out of order in the 
Rules Committee.
  As I have outlined, H.R. 4231, my legislation, has strong, 
bipartisan, bicameral support. I believe Mr. Clay is trying to do 
something similar with the text he has offered today. But in my view, 
his version makes it more difficult for consumers to establish a credit 
history which is underscored by the lack of bipartisan and bicameral 
support for this text.
  As drafted, Mr. Clay's amendment creates a new barrier because it 
requires written consumer authorization before furnishing a customer's 
payment information to a consumer reporting agency for a lease, for a 
utility, or for a telecom service. This is in stark contrast with how 
the current credit reporting methodology works.
  This amendment requires consumers to opt-in to have their rental, 
utility, or telecommunication payments included in their credit 
reports. I believe that is a defective viewpoint.
  Mr. Chair, I reserve the balance of my time.
  Mr. CLAY. Mr. Speaker, just in quick response to my friend from 
Arkansas, some consumer advocates have expressed concern that consumers 
may be evaluated as higher risk for using alternative data than they 
would be with no reports at all; so we worked on this language to try 
to find the sweet spot.
  The Acting CHAIR. The time of the gentleman has expired.
  Mr. HILL of Arkansas. Mr. Chair, may I ask how much time remains.
  The Acting CHAIR. The gentleman from Arkansas has 2 minutes 
remaining.
  Mr. HILL of Arkansas. Mr. Chair, let me thank Mr. Clay for his work 
on this. Requiring an opt-in and excluding data that would not allow 
lenders to get the full picture of a consumer's financial health, in my 
view, makes it more difficult for consumers to access credit because 
practically no rental, utility, or telecommunication companies would 
actually furnish the Expanded Access program.
  Therein lies the conundrum here. Therein lies the challenge with Mr. 
Clay's approach compared to my approach. But it doesn't stop me from

[[Page H685]]

thanking my friend for his work on this. I know it is an area that we 
share an interest in. I know that this area is keenly important to him.
  However, this amendment, as it is currently drafted, I cannot support 
it.
  I urge my colleagues to vote ``no.'' But I hope my colleague would be 
open to working together to finding a better solution that truly 
benefits consumers, expands additional data, and allows people to offer 
these products because it will qualify more credit-needy Americans for 
badly needed credit.
  I think in the case of Mr. Clay's approach, ``perfect is the enemy of 
the good.'' I think we ought to work within the system that we have and 
make it better. That is why I support my measure I have introduced in 
the House and oppose this amendment.
  Mr. Chair, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Missouri (Mr. Clay).
  The question was taken; and the Acting Chair announced that the ayes 
appeared to have it.
  Mr. CLAY. Mr. Chair, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Missouri 
will be postponed.


                  Amendment No. 5 Offered by Mr. Steil

  The Acting CHAIR. It is now in order to consider amendment No. 5 
printed in part B of House Report 116-383.
  Mr. STEIL. Mr. Chair, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Page 163, beginning on line 5, strike ``(i) either--'' and 
     all that follows through ``(I) the person'' and insert 
     ``(i)(I) the person'' (and adjust the margin of the 
     subsequent subclause accordingly).
       Page 163, line 8, strike ``or'' at the end.
       Page 163, line 12, add ``or'' at the end.
       Page 163, after line 12, insert the following:
       ``(III) the report is necessary for a background check or 
     related investigation of financial information that is 
     required by a Federal, State, or local law or regulation;''.

  The Acting CHAIR. Pursuant to House Resolution 811, the gentleman 
from Wisconsin (Mr. Steil) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Wisconsin.
  Mr. STEIL. Mr. Chair, I rise to urge support for my amendment to H.R. 
3621.
  Mr. Chair, I want to start by thanking Chairwoman Waters, Ranking 
Member McHenry, Representative Lawson, and Representative McAdams for 
working with me to reach this commonsense agreement on this amendment.
  As my colleagues know, for certain jobs, employers are required by 
law to review the financial history of prospective employees. For 
instance, in some States, insurance commissioners require companies to 
review an agent's financial condition and history prior to granting a 
license.
  This is a consumer protection issue. It is important to ensure that 
the professionals who consumers trust to carry out major financial 
transactions on their behalf aren't themselves in financial distress.
  This amendment clarifies that an employer may use a credit report 
when it is necessary for a financial background check, required by 
Federal, State, or local laws or regulations.
  By clarifying this issue, my amendment ensures that the underlying 
bill does not conflict with important consumer protection laws that are 
already on the books. Failing to address this conflict will be bad for 
workers and consumers.
  I again urge support on this amendment, and I reserve the balance of 
my time.
  Mr. LAWSON of Florida. Mr. Chair, I claim the time in opposition to 
the amendment, although I am not opposed to it.
  The Acting CHAIR. Without objection, the gentleman is recognized for 
5 minutes.
  There was no objection.
  Mr. LAWSON of Florida. Mr. Chair, I rise to support Mr. Steil's and 
Mr. McAdams' amendment.
  Mr. Chairman, this bipartisan amendment would add clarity to title VI 
of the bill that addresses restricting the use of credit reports in 
most employment decisions.
  As we know, in many cases, the use of credit reports unnecessarily 
exposes consumers' financial information and potentially puts existing 
employees and job applicants in an uncomfortable position of having to 
discuss private matters such as: divorce; domestic abuse; or health and 
genetic conditions in explaining their impaired credit history.
  While financial events that cause diverse information to land on the 
credit profile do not determine alone what value the person can bring 
to an employer, there are some circumstances where financial background 
is more relevant to a job.
  While this bill already contains exemptions that address this, such 
as exemptions when the credit file is needed for national security, or 
is otherwise required for Federal or State or local laws or 
regulations, we were able to draft a bipartisan compromise that adds a 
tailored exemption if Federal, State, or local laws or regulations 
require an investigation for financial information of an employee.
  This compromise strikes the right balance of commonsense solutions 
without creating loopholes that would hurt consumers.
  I want to thank Representative Steil and Representative McAdams for 
their work on this, and hope Mr. Steil will vote for the underlying 
bill if the amendment is adopted.
  Mr. Chair, I yield back the balance of my time.
  Mr. STEIL. Mr. Chair, I appreciate my colleague's remarks regarding 
this amendment. I think this is the commonsense solution that we need 
to make sure that employers are protected as they are looking for their 
employees as it relates to this.
  I appreciate the gentleman's work and Mr. McAdams' work on this 
amendment, and I urge my colleagues' support.
  Mr. Chair, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Wisconsin (Mr. Steil).
  The amendment was agreed to.


               Amendment No. 6 Offered by Mr. Gottheimer

  The Acting CHAIR. It is now in order to consider amendment No. 6 
printed in part B of House Report 116-383.
  Mr. GOTTHEIMER. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       In title V, add at the end the following:

     SEC. 503. REVIEW OF CHANGES TO CREDIT SCORING MODELS.

       Section 631 of the Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.), as added by section 502, is amended by adding 
     at the end the following:
       ``(c) Review of Changes to Credit Scoring Models.--With 
     respect to a person that creates credit scoring models used 
     in making credit decisions, if such person creates a new 
     credit scoring model (including a revision to an existing 
     scoring model) that would, when compared to previous credit 
     scoring models created by such person, lower the credit 
     scores of a class of consumers, the Director of the Bureau 
     may review such new credit scoring model and, if the Director 
     determines that such new credit scoring model is 
     inappropriate (including, with respect to a revision to an 
     existing scoring model, if such revision does not enhance or 
     contribute to the accuracy and predictive value of the 
     existing scoring model), the Director may prohibit such new 
     credit scoring model.''.

  The Acting CHAIR. Pursuant to House Resolution 811, the gentleman 
from New Jersey (Mr. Gottheimer) and a Member opposed each will control 
5 minutes.
  The Chair recognizes the gentleman from New Jersey.
  Mr. GOTTHEIMER. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I rise today in support of my amendment to H.R. 3621, 
the Comprehensive CREDIT Act of 2020.
  According to my good friend from New Jersey Tom Bracken, who is the 
president and CEO of the New Jersey Chamber of Commerce: ``Everyone 
needs to be evaluated properly regarding their ability to secure 
credit.'' Individuals want to be confident that the due diligence 
involved in evaluating their credit worthiness is accurate.
  Now, here is the problem that my amendment is trying to solve, a 
problem Americans face every single day. There are a handful of credit 
bureaus

[[Page H686]]

in the United States that are deciding Americans' fate in a black box 
on whether they should get access to credit or not--whether they should 
get, or how much they should be paying for a car, a house, a loan to 
send their children to college, a rate on a credit card, and how much 
they can receive for a small business loan.
  Houdini himself couldn't figure out how these scores are calculated. 
And here is the rub: Each of these companies comes up with a magic 
number, your credit score.
  Last week, The New York Times reported that one of the controllers of 
that black box is developing a new credit model to decide our financial 
fates in, and that this new model may lower the scores for 40 million 
Americans.
  Yes, this new model--just to say this again--may lower the scores for 
40 million Americans who work every single day to keep their credit 
scores high. These are hardworking people in our communities who are 
going to be penalized after spending years doing everything right. But 
they are going to change those scores based on external factors that 
have nothing to do with them and how hard they have worked to keep 
their credit scores up.
  Not only does your score determine your ability to obtain credit at a 
fair price, but they are also used by countless sectors, from insurance 
companies to landlords and even employers, to decide if you are welcome 
or not.
  These changes could harm 40 million Americans, again, even though 
they have done absolutely nothing wrong. These changes could cost 
people thousands of dollars in higher-priced credit, or worse yet, 
result in the denial of a job, apartment rental, or ability to buy a 
home.
  I am focusing on working to expand credit access to the millions of 
credit-invisible Americans, consumers who have no credit history.
  Now, many of these new creditworthy consumers are going to wake up 
and find that the rules they thought they were playing by are changing 
because of economic forecasts that they have no control over.
  My amendment is simple. It will allow for a level of oversight to 
review any potential model changes to ensure that they are not being 
done arbitrarily, if the changes decrease the credit scores for 
Americans. If it is found that there is no justification for the 
changes, the models can be blocked from deployment.
  The review is not mandatory, giving flexibility for the market to 
work on their own approach to make sure that Americans who work hard 
and care about their credit health are not being whacked for doing the 
right thing.
  This amendment is an important safeguard for consumers who all too 
often are left holding the bag when it comes to their credit scores.
  I am proud to offer this amendment today that will protect consumers 
and make sure that no one's credit scores get docked arbitrarily after 
they have played by the rules.
  I urge my colleagues to support this commonsense amendment. Again, 
this is not about being able to price for risk and make sure that we 
don't set the right scores and rates. This is about arbitrarily 
changing someone's score simply because there is macro outside 
externalities that have nothing to do with them or their behavior, and 
suddenly, they wake up one day and their credit scores are really 
changing their lives and having a significant impact on them.
  Mr. Chair, I reserve the balance of my time.
  Mr. McHENRY. Mr. Chairman, I claim the time in opposition to the 
amendment.
  The Acting CHAIR. The gentleman from North Carolina is recognized for 
5 minutes.
  Mr. McHENRY. Mr. Chair, this amendment epitomizes what is wrong with 
the approach taken by the majority in this bill.
  This amendment is about socializing credit score models and putting 
that power within the government, and clearance from the government in 
order to use different models.
  In short, this amendment says, if you don't like the outcome of 
something, we will just have the CFPB lean in and deem it 
inappropriate.
  That is what it is about.
  This amendment directs the CFPB to review the reasons a class of 
consumers may have been negatively impacted by a newly introduced 
credit scoring model and determine whether the model is inappropriate.
  I would say to my colleague, this amendment appears to be duplicative 
of the authority already given, already vested in the CFPB's 
organizational statute and in the underlying bill for the CFPB to 
intervene in private-sector decisions.
  I would also further ask the House: Do we really want to give a 
government agency veto power over new credit models?

                              {time}  1500

  As I raised in our committee markup, as I raised in our hearing back 
in February, and as I have raised on this day here on the House floor 
and many times before, I have concerns about the consumer credit 
reporting agencies and their structure. I think there is a way for us 
to have a bipartisan consensus.
  While I respect my colleague on the other side of the aisle, and 
there are times when we can work together, this is not one of those 
times. I see this is as further vesting governmental power in something 
that the private sector should be deciding in the private-sector 
allocation of risk, rather than socializing credit models.
  Mr. Chairman, I urge a ``no'' vote, and I reserve the balance of my 
time.
  Mr. GOTTHEIMER. Mr. Chairman, I want to thank the ranking member for 
his leadership. We work together quite often, and I know we disagree on 
this one.
  The challenge I have here is you have just a couple companies that 
control, through this black box, all this information that no one can 
figure out how they get your score and how the score is developed. It 
is completely arbitrary.
  People are working really hard to try to get their scores up so they 
can get a loan, so they can get a mortgage, and just to make their 
lives better. They work really hard at it. It just doesn't make any 
sense to me to have this arbitrary change in the number that no one can 
understand. Again, you just have a few people sitting in a room 
somewhere making this decision.
  The idea would be to make sure there is some sort of review, so that 
if a few people just go make this decision without any real 
competition--I am a pro-business Democrat--they go off and make this 
decision in this room somewhere, it really can affect every aspect of 
your life. Suddenly your credit goes down, and now they want to bring 
your credit down again, these credit scores down and change the number, 
with nothing to do with your own behavior at all. It is just that they 
decided this on externalities.
  So I agree with the ranking member that we should always make sure 
that we are circumspect here and we allow the markets to play out. But 
in this case, this isn't the market with competition.
  In this case it is arbitrary, and there should be review. In the 
review you can have a perfect review and in the end it would be that, 
okay, this makes sense. I can see why we need to make these changes. I 
understand why we need to do this. And, of course, price for the risk 
here, and that makes sense.
  But in this case you can't just be someone in the back room making a 
decision and then you wake up one day, you have done nothing wrong and 
they had a huge impact on how much you are paying for your credit, how 
much you are paying to take out a loan, if you own a small business to 
take out a loan, or get a lease for a car, things that affect your life 
every single day. That is really what we are talking about here.
  So I appreciate the ranking member's concerns, but I think in this 
case it is very focused. It is to really ensure that you don't have an 
oligopoly with all control.
  Mr. Chairman, I yield back the balance of my time.
  Mr. McHENRY. Mr. Chairman, as I said, this amendment is about 
socializing credit modeling. My colleague raised this issue that a few 
people in a room are making a decision that will affect millions of 
Americans.
  I think the consumer credit reporting agencies are deeply 
problematic. There is not real competition. When you have three 
controlling this marketplace with very little competition, the varied

[[Page H687]]

entries being massive because it is heavily regulated by government, a 
set of laws that act on them and regulations that act on them, that is 
problematic. It is an oligopoly.
  I have said that I think there are reasonable reforms that we could 
achieve in a bipartisan way through this House that could make it into 
law. This bill is dead on arrival in the Senate, and the President said 
he is going to veto it.
  This is not a bipartisan undertaking. In fact, instead of having that 
private-sector, behind-closed-doors group making this decision, you 
vest one government bureau with somebody under statute who is 
appointed, who cannot be fired, who can show up drunk at work 
basically, and the President doesn't have the authority to fire them 
under the statute, and you are going to give the CFPB this power and 
have a single director make this decision on the allocation of credit 
for all Americans?
  So private sector, a small group making a decision and you have three 
choices for your credit scores. Or do you want to have one government 
bureaucrat make all the decisions for the American people?
  So this is a fundamental debate, not just here on the House floor but 
on wider politics about how you allocate capital in the United States: 
Is it the government that should do this? Or should it be individual 
action and individual citizens who have that control?
  I fundamentally believe it is the individual citizens not government 
bureaucrats behind closed doors who are making those decisions. We need 
real innovation for consumer credit scores and consumer credit 
modeling. We need big data involved, we need machine learning, and we 
need to make sure that we root out inherent bias within the data 
sources. I think there are enormous things we can do. But investing in 
a government bureau that is unaccountable and a single director that is 
making these decisions is a worse outcome than what is already not that 
great.
  So I appreciate my colleague raising this issue because we both agree 
this is a problem. We just haven't been able to come to terms with how 
to do it.
  So while I oppose this amendment, I certainly respect my colleague 
from New Jersey as a serious policy maker, but on this we just don't 
agree.
  Mr. GOTTHEIMER. Will the gentleman yield?
  Mr. McHENRY. I yield to the gentleman from New Jersey.
  Mr. GOTTHEIMER. Mr. Chairman, it sounds like we are finding a place 
of common ground here where we certainly need more competition in this 
space, and the fact that the gentleman said big data and other 
externalities being brought to bear, I am looking forward to working 
with him on that because I think certainly we have got to make this 
better.
  Mr. McHENRY. Mr. Chairman, as I said, my colleague is a serious 
policy maker. At times we can come together, at other times we see 
things differently, and I think that is okay.
  Mr. Chairman, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from New Jersey (Mr. Gottheimer).
  The amendment was agreed to.


                 Amendment No. 7 Offered by Mr. Kildee

  The Acting CHAIR. It is now in order to consider amendment No. 7 
printed in part B of House Report 116-383.
  Mr. KILDEE. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Page 134, line 25, before ``in an area'' insert ``or 
     works''.
       Page 135, beginning on line 5, strike ``the date that is 3 
     months after such date.'' and insert the following: ``the 
     date that is the earlier of--
       ``(i) 6 months after the date on which the major disaster 
     or emergency was declared; and
       ``(ii) the later of--

       ``(I) 3 months after the date on which the major disaster 
     or emergency was declared; and
       ``(II) the date that the Director of the Bureau, in 
     consultation with the Administrator of the Federal Emergency 
     Management Agency, determines is the date on which 
     substantially all provision of assistance by the Federal 
     Emergency Management Agency under such major disaster or 
     emergency declaration has concluded.''.

  The Acting CHAIR. Pursuant to House Resolution 811, the gentleman 
from Michigan (Mr. Kildee) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Michigan.
  Mr. KILDEE. Mr. Chairman, I thank Congresswoman Ayanna Pressley and 
Chairwoman Maxine Waters for their leadership on this legislation and 
for advocating for consumers.
  The credit reporting system in this country is not consumer focused 
and is in need of a major overhaul.
  Consumer complaints about their credit reports are one of the most 
frequently reported issues submitted to the Consumer Financial 
Protection Bureau. Over 40 million Americans have errors in their 
credit reports. In fact, just last week one credit reporting company 
announced it was changing the credit scoring model which could 
arbitrarily reduce credit scores for millions of Americans without 
allowing any public input whatsoever.
  Having poor credit makes it harder and more expensive to borrow 
money, buy a home, or own a car. It also negatively impacts a person's 
ability to be approved for an apartment, get car insurance, and even to 
get a job. The lack of transparency and accuracy in the credit 
reporting system leaves borrowers at the mercy of credit reporting 
agencies, which is holding American families back.
  The Comprehensive CREDIT Act is a much-needed, comprehensive overhaul 
of the credit reporting system. This bill would enhance consumer rights 
and increase the accountability and transparency of consumer reporting 
agencies.
  Specifically, the bill would help rehabilitate credit for student 
borrowers with private loans. Right now Americans are experiencing a 
student loan debt crisis. Student loan debt is now at $1.3 trillion. 
This is the largest source of debt in the U.S., even more than credit 
card debt. This is delaying young people from making critical 
investments in their own future like buying a house, starting a family, 
or saving for their own children to go to college.
  The Comprehensive CREDIT Act would combat this by requiring a credit 
reporting agency to remove a delinquent or defaulted private education 
loan on a borrower's consumer report if they have shown a good history 
of loan repayment for 10 consecutive months after the delinquency or 
default. If a borrower has demonstrated a good faith effort to resume 
loan repayment after a delinquency or default, then they should not be 
punished with a lowered credit score.
  I also support the underlying legislation very strongly, and I have 
introduced an amendment that I think would strengthen the bill even 
further. My amendment would provide a 6-month grace period to preserve 
the credit score of borrowers living and working in an area impacted by 
a major disaster or emergency if there is an interruption in their 10 
consecutive months of loan repayment.
  In 2016 in my own hometown, the people of Flint experienced a 
drinking water emergency. I know many of you have heard me discuss this 
on many occasions. During that period people were not able to access 
safe drinking water, families were saddled with unexpected medical 
bills, parents and children poisoned by their water experienced adverse 
health conditions, and homeowners and businesses were negatively 
affected.
  People whose livelihoods were damaged by this crisis or any other 
natural disaster or emergency should not be penalized for failing to 
pay back student loans until they get back on their feet. When 
experiencing a crisis, borrowers should be provided flexibility to 
repay their loans when they are able to without affecting their 
underlying credit score. This relief would be provided to people living 
and working in an area experiencing a major disaster or emergency.
  My amendment and the underlying bill will help decrease the burden of 
student loans on Americans and improve their credit scores, especially 
those people living in areas impacted by emergencies or natural 
disasters.
  Mr. Chairman, I ask my colleagues to join me in supporting this 
amendment, and I reserve the balance of my time.
  Mr. McHENRY. Mr. Chairman, I claim the time in opposition.

[[Page H688]]

  The Acting CHAIR. The gentleman from North Carolina is recognized for 
5 minutes.
  Mr. McHENRY. Mr. Chairman, I want to commend my colleague, Mr. 
Kildee, for representing his constituents' interests. The people in 
this Chamber know of his commitment to his neighbors in Flint, and he 
has been quite vocal and passionate about their plight. He has brought 
that debate here to the House floor in a very proper and good way, so 
he should be commended for that, I believe.
  We know that when you have a local concern like this you want to fix 
it. So many times when you have something that is applicable at the 
national level you learn from local circumstances.
  So let's look at the underlying bill first in order to describe this. 
What this bill says to the 8 percent of the student loan marketplace--8 
percent--this has nothing to do with the 92 percent that is controlled 
by the Federal Government. That is an Education and Labor Committee of 
jurisdiction and is not a part of this bill.
  Eight percent of the student loan marketplace is private. Private 
lenders are engaged, and those terms are already a part of a set of 
Federal laws and State laws. The underlying bill ignores the 
contractual terms of that, ignores the fact that you have in that 8 
percent of the student loan marketplace only 2 percent who are not 
paying or in default. Ninety-eight percent are paying. So my friend is 
trying to fix a problem on 2 percent. The Federal student loan 
portfolio has double-digit default rates and folks not paying.
  So we have a big issue here. It is a big societal issue. It is 
impacting two generations of Americans, and it is because Congress has 
passed bad law that is saddling and enabling a generation of students 
to saddle themselves with debt that they cannot repay. It is 
unconscionable what we have done.
  So what that bill does is say to that 8 percent of the marketplace: 
If you are behind--8 percent of the marketplace, 2 percent not paying 
or in default. So let's go to that 2 percent.
  We are saying: If you have been in default for months, perhaps years, 
and you make payments, and over 10 months you make nine of 10--why? 
Well, I couldn't determine during committee debate why it was nine. Why 
not 11 of 12? Why not 5 of 6? Why not three of seven? Nine of ten, 
because that was the determination we have gotten. And now we have an 
amendment that says, nine of ten? Well, maybe a little different.
  So I get the expression of resolve for fixing people's problems, but 
this bill is really bad. It is a really fundamentally flawed bill when 
you have these arbitrary timelines like this and it says you sort of 
pay and you sort of pay for a period of time and then all that fact 
that you didn't pay is just waved away.
  So that is the absurdity of the underlying bill.
  I say to Mr. Kildee, I am sorry to take up the debate to talk about 
how flawed that is. The gentleman's expression, though, about natural 
disasters is a reasonable one. If we can do a standalone bill on that 
then I think we would have not a dissenting vote on the House floor. So 
I would love to work with the gentleman on that, but I cannot support 
this amendment, and I have to oppose it.
  Mr. Chairman, I reserve the balance of my time.

                              {time}  1515

  Mr. KILDEE. Mr. Chairman, I appreciate my friend's expression. We 
served together my first 6 years on the Financial Services Committee. 
And if the event occurs that we need to pursue this relief in another 
fashion, I would look to forward to working with him. But it is my hope 
that we can act on this within this legislation.
  I do disagree with his assessment of the underlying legislation, but 
that is fine. That is the nature of this place, that we have 
disagreements sometimes over issues like this.
  In this case, where we do have a chance, as the gentleman described, 
to deal with a specific set of circumstances affecting specific 
individuals, we ought to take that opportunity and do something.
  I didn't know when I was elected that the community that I represent 
was going to face the crisis that it did, and nobody serving in this 
body knows whether or not their community, in the next month or year or 
10 years, will face a similar circumstance.
  So let's take the opportunity we have, as small as it may be in terms 
of the way the gentleman describes it. It is not small when it happens 
to you, and it is not small when it happens to your community.
  So I appreciate the gentleman's willingness to work with me in the 
future on this. I ask my colleagues to join me in supporting this 
amendment, and I yield back the balance of my time.
  Mr. McHENRY. Mr. Chair, may I inquire how much time remains.
  The Acting CHAIR. The gentleman from North Carolina has 1 minute 
remaining.
  Mr. McHENRY. Mr. Chair, I would say to the gentleman from Michigan 
that I commend him for offering this amendment; I commend him for the 
respect for this institution and how he interacts legislatively. He can 
be passionate about representing his constituents, his point of view, 
his legislation, his amendments, but, at the same time, where we can 
come to terms, we do that on a regular basis.
  So it is not all dysfunction here; it is not all dismay; it is not 
all disaster; it is not all acrimony. There are those of us who can 
still talk amidst a broken and divided government that we have.
  So I commend him for offering this amendment, and, again, as I said, 
I am opposed to the amendment.
  Mr. Chair, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Michigan (Mr. Kildee).
  The amendment was agreed to.


              Amendment No. 8 Offered by Mr. King of Iowa

  The Acting CHAIR. It is now in order to consider amendment No. 8 
printed in part B of House Report 116-383.
  Mr. KING of Iowa. Mr. Chairman, I have an amendment at the desk made 
in order by the rule.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Page 135, beginning on line 3, strike ``date on which the 
     major disaster or emergency was declared'' and insert 
     ``initial date of the incident period of the major disaster 
     or emergency''.

  The Acting CHAIR. Pursuant to House Resolution 811, the gentleman 
from Iowa (Mr. King) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Iowa.
  Mr. KING of Iowa. Mr. Chairman, this amendment, in reading through 
the bill, brings something forward that we have experienced a number of 
times in the natural disasters that have poured forth and the flooding 
in my district over the 17 years-plus that I have represented the folks 
in the Missouri River bottom, in particular; but, also, it affects 
everybody else around the country.
  In reading the base bill, it says that the 3-month grace period that 
is granted for a student loan begins on the date that the declaration 
of disaster is issued, and often that declaration of disaster is issued 
sometimes months after the disaster is over.
  The crisis is also over for the former student who was paying their 
student loans and having difficulty meeting those obligations because 
they have been the victim of a natural disaster, whether it be a 
hurricane, whether it be a flood, whether it be a tornado or some other 
type of natural disaster. This morning, I saw there was an earthquake 
down across from Florida, across the Caribbean.
  What this amendment does is move that date back to the initial date 
of the disaster itself rather than the date that it was declared a 
disaster. The language in the current bill says, ``date on which the 
major disaster or emergency was declared.'' Instead, the language 
becomes, ``initial date of the incident period of the major disaster or 
emergency.''
  Mr. Chairman, I would point out some of these dates along the way 
that stand out to me.
  There was flooding in North Dakota that began on October 9 of 2019 
and continued until October 26 of 2019. That disaster was declared not 
then, but declared on January 21, 2020. That would have been the first 
date that the grace period would kick in under this language. I ask 
that that grace period kick in immediately. Although the announcement 
will come from FEMA and wouldn't be on the first day of the disaster, 
that is the first day that they feel the financial stress.

[[Page H689]]

  I will go through a number of these.
  The courageous people of Hornick, Iowa, bounced back from that flood 
as strongly as anybody I have seen, but that began on March 12, and the 
disaster declaration came March 23. So they lost some of those days.
  And I look down to Tropical Storm Michael in North Carolina, and that 
disaster began October 10 to 12, 2018, and 4 months later, January 31, 
2019, was the declaration.
  So the credit of these people who are trying diligently to pay their 
student loans is damaged unless they have this grace period that begins 
when the stress period begins, and that is what my amendment does, Mr. 
Chairman, and I reserve the balance of my time.
  Mr. LAWSON of Florida. Mr. Chairman, I claim the time in opposition, 
although I am not opposed.
  The Acting CHAIR. Without objection, the gentleman from Florida is 
recognized for 5 minutes.
  There was no objection.
  Mr. LAWSON of Florida. Mr. Chairman, this amendment will allow for 
more time for private student loan borrowers in the process of 
rehabilitating their loans to repay their loans when also impacted by a 
geographical disaster or emergency.
  By changing the language from when a disaster or emergency is 
federally declared to when the actual disaster began, private student 
loan borrowers will have more time outside of when an emergency is 
officially federally declared to explain and have their situation taken 
into consideration for hardship.
  For example, it was a shame that it took President Trump more than 2 
weeks to declare the major disaster declaration after Puerto Rico 
received a string of earthquakes beginning December 28. Consumers 
should not be penalized by politics when they are in dire need for 
help.
  As climate change and other disasters continue to have devastating 
consequences across this country, students who are demonstrating that 
they can rehabilitate their loans and improve their credit scores 
should not have to additionally suffer because extreme events like 
these cause hardships that would reasonably interrupt a payment.
  It can take years for communities to recover from natural and other 
disasters, and this amendment further allows victims of these disasters 
the time that they deserve, a fair chance to improve their credit 
scores and future credit opportunities.
  I support this amendment, and I reserve the balance of my time.
  Mr. KING of Iowa. Mr. Chairman, may I inquire as to how much time 
remains.
  The Acting CHAIR. The gentleman from Iowa has 2\1/4\ minutes 
remaining. The gentleman from Florida has 3 minutes remaining.
  Mr. KING of Iowa. Mr. Chairman, I yield myself such time as I may 
consume.
  I appreciate the gentleman's remarks with regard to this amendment.
  I would point out that we have 435 Members in this United States 
Congress, and it was envisioned by our Founding Fathers that we would 
get ideas from every one of those districts. And they also recognized 
that we are all human, and no matter how diligent we might be, no 
matter how much we care about the people we are helping, sometimes 
things just kind of slide along, look good on the surface, and we are 
busy. So that is why we all want to look at this, and that is why I 
have the privilege to be here to offer this amendment.
  Having gone through natural disaster after natural disaster after 
natural disaster, suffered from them myself--in fact, the 1993 flood is 
probably why I am in Congress today, because I realized the degree of 
risk was not proportional to the potential for profit if you are under 
water.
  So I want to help those students who want to keep their credit in 
line, and I appreciate the support across Congress to do so.
  Mr. Chairman, I reserve the balance of my time.
  Mr. LAWSON of Florida. Mr. Chair, I yield myself the balance of my 
time.
  I urge all of my colleagues to support this amendment, and I yield 
back the balance of my time.
  Mr. KING of Iowa. Mr. Chairman, I appreciate the gentleman's remarks 
again, and I would just point out that, of this list of disasters that 
we have and the delays we have in declaring these disasters, there is 
one here on April 29.
  A disaster declaration was declared for severe storms and flooding 
within the Sac and Fox Tribe in Mississippi and Iowa--and I actually 
live in Sac County, although that is not part of that reservation--with 
an incident period spanning March 13 till April 1. However, the 
disaster declaration was April 29, so there was a month-and-a-half 
delay in that one.
  I have other examples of this, Mr. Chairman, but I think that we have 
made our point here today, and I appreciate the attendance and 
diligence of the Members on both sides of the aisle.
  Mr. Chairman, I urge adoption of my amendment, and I yield back the 
balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Iowa (Mr. King).
  The amendment was agreed to.


                 Amendment No. 9 Offered by Ms. Sanchez

  The Acting CHAIR. It is now in order to consider amendment No. 9 
printed in part B of House Report 116-383.
  Ms. SANCHEZ. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Page 44, line 18, before the period insert ``(increased by 
     $1,000,000)''.
       Page 182, line 8, strike ``military'' and insert 
     ``uniformed''.
       Page 182, line 10, strike ``military'' and insert 
     ``uniformed''.
       Page 182, line 11, strike ``military'' and insert 
     ``uniformed''.
       Page 182, line 14, strike ``military'' and insert 
     ``uniformed''.
       Page 182, beginning on line 16, strike ``military''.
       Page 182, line 19, strike ``military'' and insert 
     ``uniformed''.
       Page 182, line 21, strike ``military'' and insert 
     ``uniformed''.
       Page 192, line 7, strike ``military'' and insert 
     ``uniformed''.
       In title IX, add at the end the following:

     SEC. 904. PROTECTIONS FOR ACTIVE DUTY UNIFORMED CONSUMER.

       (a) Definitions.--Section 603 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681a) is amended--
       (1) in subsection (q), by amending paragraph (1) to read as 
     follows:
       ``(1) Active duty uniformed consumer.--The term `active 
     duty uniformed consumer' means a consumer who is--
       ``(A) in military service and on active service (as defined 
     in section 101(d) of title 10, United States Code); or
       ``(B) a member of the uniformed services (as defined in 
     section 101(a) of title 10, United States Code) who is not a 
     member of the armed forces and is on active service.''; and
       (2) by inserting after subsection (dd) (as added by section 
     901) the following:
       ``(ee) Extended Active Duty Uniformed Consumer.--The term 
     `extended active duty uniformed consumer' means an active 
     duty uniformed consumer that is deployed--
       ``(1) in a combat zone (as defined under section 112(c) of 
     the Internal Revenue Code of 1986); or
       ``(2) aboard a United States vessel.''.
       (b) Prohibition on Including Certain Adverse Information in 
     Consumer Reports.--Section 605 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681c) is amended--
       (1) in subsection (a), as amended by section 809, by adding 
     at the end the following:
       ``(18) Any item of adverse information about a consumer, if 
     the action or inaction that gave rise to the item occurred 
     while the consumer was an extended active duty uniformed 
     consumer.''; and
       (2) by inserting after subsection (h) (as added by section 
     705) the following:
       ``(i) Notice of Status as an Extended Active Duty Uniformed 
     Consumer.--With respect to an item of adverse information 
     about a consumer, if the action or inaction that gave rise to 
     the item occurred while the consumer was an extended active 
     duty uniformed consumer, the consumer may provide appropriate 
     proof, including official orders, to a consumer reporting 
     agency that the consumer was an extended active duty 
     uniformed consumer at the time such action or inaction 
     occurred. The consumer reporting agency shall promptly delete 
     that item of adverse information from the file of the 
     consumer and notify the consumer and the furnisher of the 
     information of the deletion.''.
       (c) Communications Between the Consumer and Consumer 
     Reporting Agencies.--Section 605A of the Fair Credit 
     Reporting Act (15 U.S.C. 1681c-1) is amended--
       (1) in subsection (c), as amended by section 803, by adding 
     at the end the following:
       ``(2) Negative information alert.--Any time a consumer 
     reporting agency receives an item of adverse information 
     about a consumer, if the consumer has provided appropriate 
     proof that the consumer is an extended active duty uniformed 
     consumer, the consumer reporting agency shall promptly notify 
     the consumer--
       ``(A) that the agency has received such item of adverse 
     information, along with a description of the item; and

[[Page H690]]

       ``(B) the method by which the consumer can dispute the 
     validity of the item.
       ``(3) Contact information for extended active duty 
     uniformed consumers.--With respect to any consumer that has 
     provided appropriate proof to a consumer reporting agency 
     that the consumer is an extended active duty uniformed 
     consumer, if the consumer provides the consumer reporting 
     agency with separate contact information to be used when 
     communicating with the consumer while the consumer is an 
     extended active duty uniformed consumer, the consumer 
     reporting agency shall use such contact information for all 
     communications while the consumer is an extended active duty 
     uniformed consumer.''; and
       (2) in subsection (e), by amending paragraph (3) to read as 
     follows:
       ``(3) subparagraphs (A) and (B) of subsection (c)(1), in 
     the case of a referral under subsection (c)(1)(C).''.
       (d) Conforming Amendment.--The Fair Credit Reporting Act 
     (15 U.S.C. 1681 et seq.) is amended by striking ``active duty 
     military'' each place such term appears and inserting 
     ``active duty uniformed''.
       (e) Sense of Congress.--It is the sense of Congress that 
     any person making use of a consumer report containing an item 
     of adverse information should, if the action or inaction that 
     gave rise to the item occurred while the consumer was an 
     extended active duty uniformed consumer, take such fact into 
     account when evaluating the creditworthiness of the consumer.

  The Acting CHAIR. Pursuant to House Resolution 811, the gentlewoman 
from California (Ms. Sanchez) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from California.
  Ms. SANCHEZ. Mr. Chairman, I yield myself such time as I may consume.
  I am proud to vote today to protect consumers and improve our credit 
reporting system.
  I thank Chairwoman Waters and Representative Pressley for their hard 
work on this important legislative package, and I want to thank the 
Financial Services staff who have worked diligently behind the scenes.
  I would also like to thank the National Military Family Association, 
the National Consumer Law Center, and the Consumer Federation of 
America for their support of my amendment.
  My amendment today, which is based upon a bill that I have long 
championed, is focused on our friends and family in uniform who are 
serving abroad. Specifically, my amendment would allow servicemembers 
the ability to dispute negative information, or dings, on their credit 
report that occurred while they were serving in a combat zone or aboard 
a U.S. vessel.
  Those who are serving in the Army, Navy, Air Force, Marine Corps, 
Coast Guard, National Guard, the commissioned corps of the National 
Oceanic and Atmospheric Administration, and the Public Health Service 
would benefit from this amendment.
  This amendment isn't without guardrails. A credit reporting agency 
must be notified that the servicemember was on extended Active Duty at 
the time the hit to the credit report occurred. The credit reporting 
agency would then be required to conduct a review of the information 
and delete any negative information from the credit report should 
certain requirements be met.
  We must acknowledge the realities of deployment in today's 
technological world. Life goes on at home while our military members 
are deployed. Sometimes a bill payment is missed when an electronic 
payment agreement lapses, a credit card on file expires, or an 
unauthorized credit card is issued.
  This amendment allows for credit reports that more accurately reflect 
the full picture. This idea was born out of the incredible courage of 
two parents who faced an overwhelming grief that I hope never to 
experience.
  John Kelsall, president of my local chamber of commerce at the time, 
and his wife, Teri, a long-time southern California nonprofit leader, 
lost their son. Lieutenant Commander Jonas Kelsall, a proud Navy SEAL, 
was killed in Afghanistan in 2011. In order to keep their son's legacy 
alive, the Kelsalls founded a nonprofit veterans business incubator to 
assist U.S. military veterans upon their return to civilian life.
  Whenever I was back home, John and Teri would catch me up on the 
latest challenges and success stories from their organization. However, 
one hurdle kept coming up over and over and over again for these 
veteran would-be entrepreneurs.

                              {time}  1530

  Terri and John shared stories of servicemembers and veterans who had 
trouble obtaining loans to help start their businesses. Why? Because 
while they were deployed, they missed payments, and this negatively 
affected their credit scores, even though, oftentimes, the delays were 
out of their control.
  I knew something had to be done. That is why, in 2014, I joined our 
colleague, Congressman Lamborn of Colorado, in introducing legislation 
to address this problem. I have been proud to strengthen the text of 
this bill over the years with the help of the National Consumer Law 
Center and military family support groups. Our country continues to ask 
so much from our men and women who serve in uniform. They deserve peace 
of mind during their Active Duty deployments.
  Mr. Chair, I urge all of my colleagues to support this amendment and 
the underlying legislative package, and I reserve the balance of my 
time.
  Mr. McHENRY. Mr. Chair, I claim the time in opposition, but I am not 
opposed to it.
  The Acting CHAIR. Without objection, the gentleman from North 
Carolina is recognized for 5 minutes.
  There was no objection.
  Mr. McHENRY. Mr. Chairman, this amendment introduces to the Fair 
Credit Reporting Act a definition for Active Duty uniformed consumer 
and establishes a special regime for the treatment of such consumers.
  It is understandable and commendable that we want to help the men and 
women who serve our country. They are involved in unique circumstances, 
not just here domestically but globally.
  While I support the need for our servicemen and women broadly, this 
amendment does not remedy the overarching issues in the underlying 
bill. There are some deeply problematic pieces to this bill, as I have 
said in this overall debate. Because of that, I would offer to work 
with the gentlewoman on this as a standalone measure that I believe we 
could pass with a wide majority through the House. Who knows in the 
Senate, given these days. But I believe that it would even have the 
opportunity for the President's signature, which is important for our 
process here in lawmaking.
  Unfortunately, the overall bill, even if this is added, won't see the 
light of day because the Senate is not going to take it up, and the 
President has already said he is going to veto it.
  Mr. Chair, I would offer to the gentlewoman to work with her on a 
standalone measure to achieve the very thing of her amendment. I am 
happy to yield if she has a response or if she is interested in working 
in a bipartisan way for a standalone measure to achieve this.
  I yield to the gentlewoman from California.
  Ms. SANCHEZ. Mr. Chair, I thank my colleague for the offer to work on 
this as a standalone bill. It was originally a standalone bill. It is 
being offered as an amendment to the bill. I understand that you have 
reservations on the underlying bill.
  My hope is that it will pass as an amendment and that the underlying 
bill will pass. But should that bill not be successful in being taken 
up in the Senate, I would surely love to work with my colleague on a 
standalone bill that will accomplish this very important goal of 
helping our men and women who serve in uniform make their lives just a 
little bit easier.
  We ask a lot of them as a Nation, and so I think helping them when 
they are on Active Duty and sometimes are late or miss payments is a 
worthwhile endeavor.
  Mr. McHENRY. Mr. Chair, reclaiming my time, I appreciate the offer 
and would be happy to work with the gentlewoman on that standalone 
measure.
  Mr. Chair, I yield back the balance of my time.
  Ms. SANCHEZ. Mr. Chair, again, I want to say that I have attempted to 
pass this bill as a standalone bill. I believe that it is properly 
included in the underlying bill, which I think is an excellent piece of 
legislation.
  Our country asks a lot of our men and women, and while you are on 
Active Duty, the last thing that you should worry about is late 
payments or missed payments, oftentimes because you are in far-flung 
regions of the world when it is not like you can just mail a letter 
back to make sure that your payment gets in on time.

[[Page H691]]

  Mr. Chair, I believe very strongly in this amendment. I ask my 
colleagues to support the amendment and support the underlying bill. I 
yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentlewoman from California (Ms. Sanchez).
  The amendment was agreed to.


                 Amendment No. 10 Offered by Mr. Cohen

  The Acting CHAIR. It is now in order to consider amendment No. 10 
printed in part B of House Report 116-383.
  Mr. COHEN. Mr. Chair, as I have an amendment at the desk, I stand and 
seek recognition.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Page 137, line 16, insert before the period the following: 
     ``as soon as possible, but in no case later than 5 days after 
     such completion''.

  The Acting CHAIR. Pursuant to House Resolution 811, the gentleman 
from Tennessee (Mr. Cohen) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Tennessee.
  Mr. COHEN. Mr. Chair, this amendment creates a specific time period 
for credit reporting agencies to change a consumer's credit report 
after consecutive payments have been made on certain private education 
loans.
  This bill offers credit rehabilitation for distressed private 
education loan borrowers. My amendment simply states that once a 
consumer has made the consecutive payments outlined in the standardized 
reporting codes, the consumer reporting agency must update a consumer's 
report immediately or within 5 business days, at the most.
  Credit reports and credit scores are tied to so many important 
factors in consumers' lives. They determine interest rates on 
mortgages, bank loans, and credit cards, and deposits for rent. They 
can even lower insurance premiums.
  Every day counts. Consumers shouldn't have to wait in limbo, not 
knowing exactly when a charge is going to be removed from their credit 
report, especially if they have been making consecutive payments and 
meet the criteria to have it removed.
  This amendment is supported by the National Consumer Law Center, 
which stated that ``putting a specific timeframe for compliance is a 
good idea. It provides clarity on what action needs to be taken for 
both compliance and enforcement purposes. It also ensures borrowers 
will get the benefits of the law promptly.''
  Mr. Chair, I thank Chairwoman Waters, Mr. Lawson, Congresswoman 
Pressley, and the Financial Services Committee staff--especially Yana 
Miles, Glen Sears, Avy Malik, Clement Abonyi, and Lisa Peto--for all of 
their hard work on this issue. I encourage my colleagues to support 
this amendment.
  Mr. Chair, I yield 1 minute to the gentlewoman from Massachusetts 
(Ms. Pressley), the sponsor of this comprehensive bill.
  Ms. PRESSLEY. Mr. Chair, my bill, the Comprehensive CREDIT Act, will 
greatly improve a fundamentally flawed credit reporting system, 
providing much-needed relief for families across the country.
  It works to protect consumers from unfair and misleading credit 
reporting practices, affirming the rights of all Americans to an 
equitable and transparent credit reporting process. My bill takes the 
burden off consumers while holding credit reporting agencies 
accountable and restoring fairness to the system.
  I thank my colleague from Tennessee (Mr. Cohen) for offering this 
amendment. CRAs are all too quick to add penalties and negative marks 
to credit reports, but the same urgency never seems to be applied to 
improving those reports.
  Once borrowers take the steps prescribed in this bill to improve 
their credit reports, they deserve to have the reports updated to 
reflect that in a reasonable timeframe.
  Credit scores are meant to be predictive, and the best predictor of 
future behavior is their most recent behavior. Our bill takes the 
burden off of consumers while holding debt reporting agencies 
accountable and restoring fairness to the system. This amendment would 
further strengthen our bill by ensuring that these changes happen in a 
timely manner.
  Mr. Chair, I am proud to support this amendment, and I urge my 
colleagues to do the same.
  Mr. McHENRY. Mr. Chair, I claim time in opposition to the amendment.
  The Acting CHAIR. The gentleman from North Carolina is recognized for 
5 minutes.
  Mr. McHENRY. Mr. Chair, it sounds like a bit of a broken record, but 
this amendment does two things.
  First, it continues to undermine the ability of private lenders to 
negotiate terms of their loans with student borrowers. Second, it 
continues the bill's theme of removing negative information, even if 
accurate, from credit scores and credit reports.
  Now, it was the decision by a Democratic House, Democratic Senate, 
Democratic President that has saddled a generation--in fact, two 
generations--of students with this massive, federally administered 
student loan program.
  This bill only deals with the 8 percent that is in the private 
marketplace. It is trying to put bad rules there to take that final 8 
percent, when in reality we should be focused on the 92 percent that 
the Federal Government has saddled, the 92 percent that is the Federal 
student loan program.
  They want to remove predictive information, which will lead to 
students taking on even more debt. We should be addressing the 
underlying factors that are causing the crisis, like the rising costs 
of higher education, the lack of underwriting standards in the Federal 
program.
  Instead, we are going to weaken the standards in the private market, 
the part of the marketplace that is actually working really, really 
well, where you only have default rates or folks who are not paying at 
2 percent or less. In the Federal program, we have double digits that 
are in the same sort of category.
  The underlying bill requires consumer reporting agencies to develop 
and use reporting codes to reflect a borrower's participation in the 
credit rehabilitation program. The amendment would require these codes 
to be removed no later than 5 days after the consumer makes nine 
payments in 10 months.
  Why nine payments in 10 months? As I said the last time I spoke about 
this, because that kind of feels right, apparently. That is kind of 
what we determined in the committee debate. Not that people have paid 
every month but, you know, they have paid 9 out of 10 months.
  What we are talking about here is not science in the underlying bill. 
In fact, the 5-day period, I am not sure how the sponsor came up with 
that. But this amendment expedites the requirement of a flawed program 
within the bill, so not making a titanic change, a major change to the 
bill. But it is a bad program that he is basically speeding up, in my 
view--a bad program, in my view--that he is obviously trying to enact 
more quickly.

  Under this amendment, there will be no record of the borrower ever 
being delinquent or having been in default.
  Let's go back to the private loan market statistics. Again, 2 percent 
in the private student loan marketplace is in default of their loans, 
compared to the Federal student loan program, which has a default rate 
of 18 percent.
  Fannie and Freddie didn't have a default rate that high, and they got 
nationalized as a result of the financial crisis and sparked a 
financial crisis. We have 18 percent that is in default in the student 
loan program.
  Why are we messing with this small program when we should be taking 
on this bigger issue that is one that is a major struggle? There are a 
lot of ideas on both sides of the aisle for how we deal with that.
  We shouldn't be weakening underwriting standards, either in the 
Federal program or in the private program. We should have strong 
underwriting standards. We should not lead to more financial 
instability but a fairly structured and smart marketplace.
  Mr. Chair, I oppose this amendment and, again, reiterate that this 
amendment is about speeding up a bad program that is deeply flawed in 
the underlying bill, and that is why I oppose it.
  Mr. Chair, I reserve the balance of my time.

[[Page H692]]

  

  Mr. COHEN. Mr. Chair, first of all, Federal student loans already 
have the option to rehabilitate the loan after the borrower has made 9 
out of 10 consecutive on-time payments.
  H.R. 3621 simply brings private student loans in line with Federal 
student loans, so 9 out of 10. It is not science like climate change 
is, but it is pretty good, and it is based on current law for Federal 
student loans.
  Secondly, I would submit, don't try to make the perfect the enemy of 
the good. I was here for 8 years in the minority, and I don't remember 
the majority bringing any bills to help consumers on any student loans, 
any loans, or anything at all. Fortunately, we are in the majority, and 
we are bringing you bills to help consumers, and this bill helps people 
with student loans.
  Mr. Chair, I once again reiterate that I urge people to support this, 
and I reserve the balance of my time.
  Mr. McHENRY. Mr. Chair, may I inquire how much time is remaining on 
both sides.
  The Acting CHAIR. The gentleman from North Carolina has 30 seconds 
remaining. The gentleman from Tennessee has 1\1/4\ minutes.
  Mr. McHENRY. Mr. Chair, I am prepared to close, and I reserve the 
balance of my time.
  Mr. COHEN. Mr. Chair, I yield myself the balance of my time.
  Mr. Chair, simply, for the college students, for the debtors, for 
fairness, for justice, pass this bill, pass this amendment. I yield 
back the balance of my time.
  Mr. McHENRY. Mr. Chair, I yield myself the balance of my time.
  Mr. Chair, this is more aggressive than the bad Federal student loan 
program. If you are a delinquent borrower, you cannot access this like-
kind program. What this amendment is saying is, if you are a delinquent 
borrower, you can get in the front of the line and get that waived away 
as if you had been paying the whole time. This is a bad idea.
  If you want to address the problem, let's address the cost of 
college, not doing this gamesmanship of trying to socialize on the back 
end through credit scores and credit reporting agencies.
  Mr. Chair, I oppose the amendment, and I yield back the balance of my 
time.

                              {time}  1545

  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Tennessee (Mr. Cohen).
  The amendment was agreed to.


                 Amendment No. 11 Offered by Mr. Cohen

  The Acting CHAIR. It is now in order to consider amendment No. 11 
printed in part B of House Report 116-383.
  Mr. COHEN. Mr. Chair, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Page 162, line 15, after ``purposes'' insert the following: 
     ``, including for the purpose of denying employment,''.

  The Acting CHAIR. Pursuant to House Resolution 811, the gentleman 
from Tennessee (Mr. Cohen) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Tennessee.
  Mr. COHEN. Mr. Chair, first, I would just like to make some closing 
remarks on the previous argument. The gentleman is right. We need to 
make college more affordable, and I passed a bill in Tennessee when I 
was a senator, a referendum on the ballot that has raised over $5 
billion to send kids to college in Tennessee, $5 billion free 
scholarship money. So, yes, I don't talk the talk, I walk the walk.
  Mr. Chairman, my amendment makes it unequivocally clear that credit 
reports should not be used as the sole reason for the denial of 
employment.
  This amendment is for the countless constituents who have contacted 
my office with disturbing stories of being denied a job opportunity 
because of their credit report.
  This amendment is for the many people in this country who are 
currently in a vicious cycle: To pay down their debt, they need a job, 
but they can't get hired because of their debt.
  According to the Society for Human Resource Management, 43 percent of 
employers are conducting pre-employment credit checks, claiming that a 
potential employee's credit score is somehow an accurate predictor of 
future job performance. Nobody says that. Like nobody says that you 
have to have a crime in an impeachment article to impeach a President. 
Abuse of power is sufficient.
  Yet, there has not been any proof that a credit report or a credit 
score can predict how an employee will perform, none whatsoever.
  A credit report doesn't tell the whole story. Maybe a person had a 
long stretch of unemployment. Maybe they unexpectedly had a health or a 
medical crisis.
  This practice has had a disproportionate impact on some of our most 
vulnerable, credit-challenged citizens; recent college grads, divorced 
women, low-income families, senior citizens, and minorities.
  Everyone deserves the opportunity to begin rebuilding their credit 
history by obtaining employment. We should be doing everything in our 
power to help people find jobs during these tough economic times, not 
hinder them.
  Making sure credit reports are not used as a means for denial of 
employment has been a very important issue to me and my office, and I 
have introduced a bill, the Equal Employment for All Act, every 
Congress for the last 11 years.
  Unfortunately, in eight of those years, we were in the minority and 
so we couldn't get a hearing. But now, Mr. Lawson has brought a bill, 
which I appreciate greatly, and he is on the committee and this issue 
is now before us.
  What matters most is that important issues like this are addressed 
and fixed by Congress and get to the floor for a vote. I would like to 
thank Mr. Lawson.
  I would also like to go back and thank my former staffer, Michael 
Fulton, who worked tirelessly on the Equal Employment for All Act and 
the Fair Access to Credit Scores Act. I am happy to see that language 
to provide free credit scores is also included in the Comprehensive 
CREDIT Act of 2020.
  I want to thank again Chairwoman Waters and the dedicated staff on 
the Financial Services Committee. And I encourage all of my colleagues 
to support my amendment and vote for the overall bill.
  Mr. Chairman, I reserve the balance of my time.
  Mr. McHENRY. Mr. Chair, I claim the time in opposition. I am opposed 
to the amendment.
  The Acting CHAIR. The gentleman from North Carolina is recognized for 
5 minutes.
  Mr. McHENRY. Mr. Chairman, this amendment is more of the same. It 
prevents employers from identifying and fulfilling the needs of their 
companies.
  Now, use of a credit score, you would argue, is not perfect for every 
job, but there are certain cases where that would, in fact, be a 
reasonable thing and a reasonable limitation on employment; and I would 
ask the amendment sponsor if that is the case.
  Are there reasonable limitations that we could find here for the 
types of employment where a credit report may be helpful to an 
employer?
  I would ask the bill's sponsor, Mr. Cohen of Tennessee, who is here 
in the room, so your amendment says you cannot use the credit report 
for anything related to hiring; is that correct?
  I yield to the gentleman from Tennessee.
  Mr. COHEN. Right.
  Mr. McHENRY. I understand that correctly. Is there any reasonable 
limitation--as an employer, is there any reasonable expectation for 
using a credit report in a hiring process, in your view?
  Mr. COHEN. I am still having trouble hearing. Like in the 8 years 
when I was in the minority, I couldn't hear the majority party give me 
a chance to bring this to a vote. But I don't think the answer is yes. 
The answer is no.
  Mr. McHENRY. Reclaiming my time. If the amendment sponsor doesn't 
wish to engage in debate, then don't come to the House floor, Mr. 
Chair, unless you want to engage in a debate. I am offering a 
reasonable question. The gentleman may be so far in left field he can't 
hear me in this Chamber.
  But I would say this: As an employer, if you are handling cash, as an 
example, every day, is it a reasonable thing to check somebody's credit 
report to see if somebody has perhaps--I don't know--had problems with 
cash, or is

[[Page H693]]

massively in debt, or has not paid their bills. Is that a reasonable 
thing?
  Is it a reasonable thing if you get hired by the FBI to know that you 
have massive debt and, therefore, could fall victim to extortion?
  I think there is a reasonable limitation. And what the gentleman has 
already exposed with his unwillingness to even engage in a simple 
colloquy--the gentleman has been around this House long enough to know 
this general process, but he doesn't want to answer the question.
  The reason he doesn't want to answer the question is he doesn't 
believe any employer should be able to look at a consumer credit report 
for any hiring procedure, and I think that is patently absurd, Mr. 
Chair.

  So if employers have a real fear that hiring or retaining an 
individual can jeopardize the integrity of an institution, I think they 
should be able to check a credit report; just like in certain 
circumstances, somebody's criminal background could be harmful.
  I will give you an example. Elder abuse. I think it is reasonable to 
know if somebody has committed a violent crime or has extorted money 
from people. I think that is a reasonable circumstance, is it not?
  So I would say this: I offered a reasonable opportunity for a debate 
on this. This is an absurd amendment that should be rejected.
  Mr. Chair, I reserve the balance of my time.
  Mr. COHEN. Mr. Chair, it can't be the sole reason for denying a job, 
number one. That is what the bill says. And there are exemptions for 
circumstances when Federal, State, or local law call for it, or a 
national security clearance.
  Indeed, I think that if you are an administrator, if you are over, 
say, the foreign policy of the United States and the Defense 
Department, people should know if you have great debts to, like, Russia 
or something. People should have a right to know that because it could 
relate to your employment. But that is another issue.
  Mr. Chair, I yield 1 minute to the gentlewoman from Texas (Ms. 
Jackson Lee).
  Ms. JACKSON LEE. Mr. Chairman, I rise to support the underlying bill 
by Representative Pressley, and I thank her for her outstanding 
leadership. And I rise, in particular, to support the reasonable, smart 
amendment of Mr. Cohen. It says very clearly that it is the sole 
reason.
  Let me be clear again, to my good friend. A credit score, or owing 
bills, is not criminal. It is not a criminal act. It doesn't in any way 
diminish your ability to do your job.
  One percent of the American people own 90 percent of the wealth. That 
means that students with debt, and millennials, mostly, are not in that 
category. That means that you are not encouraging leadership if you use 
a credit score as the sole reason for denying an able leader that 
happens to be a millennial to get a job. I am outraged and insulted by 
the premise.
  Mr. Cohen's amendment is a smart amendment that indicates, give these 
individuals a chance, as does the underlying bill by Ms. Pressley.
  I rise enthusiastically to give relief to millennials and those with 
major student debt; one, under this act; and two, under Mr. Cohen's 
amendment not to deny them a job.
  I support the Cohen amendment. I support the underlying bill by Ms. 
Pressley, the Comprehensive CREDIT Act of 2020, and I believe we should 
vote ``yes'' on that amendment and ``yes'' on the bill. Do our job for 
the millennials.
  Mr. McHENRY. Mr. Chair, I reserve the balance of my time.
  Mr. COHEN. Mr. Chair, is the gentleman ready to close? Is the 
gentleman ready to learn if a President has debts to Russia before he 
can count the money?
  Mr. McHENRY. I will inquire of the Chair; how much time remains on 
both sides.
  The Acting CHAIR. The gentleman from North Carolina has 1\1/2\ 
minutes remaining. The gentleman from Tennessee has 30 seconds 
remaining.
  Mr. McHENRY. I have the right to close and I intend to do so.
  Mr. COHEN. Mr. Chairman, I yield back the balance of my time.
  Mr. McHENRY. Mr. Chair, for the express purpose of this amendment, in 
legislative text it says that you cannot use a consumer credit report 
or the information therein to deny employment. And the gentleman in the 
very debate, Mr. Chair, said that he thinks some different standard. 
But that is not what this amendment does.
  This is a deeply-flawed amendment that has not been--I think it has 
been thought through, because the gentleman wants to ban every 
potential limitation on employment, even in a sensitive industry, even 
dealing with the elderly, even dealing with children; and I think that 
is way too far to the left and out of the mainstream.
  And this amendment is not conforming with the rhetoric that he used 
on the floor. In fact, it is much more far-reaching.
  But it is also quite fitting with the overall bill, because the 
overall bill is about socializing credit; and if you socialize credit, 
you can't use any form or factor, and so I think this is really 
problematic.
  If employers have a real fear that hiring an individual can 
jeopardize the integrity of an institution, for instance, a financial 
institution, or cause harm to the very people they are trying to care 
for, or share sensitive information on their customers, then they 
should have the opportunity to not hire those people that will cause 
harm or wreck our financial system.
  So this is a way-out-left amendment, and it is a way-out-left bill.
  So while I oppose it, I wish the gentleman well. And I wish that we 
could actually engage in some reasonable debate like I had with other 
Members. But I realize not all Members are the same.
  Mr. Chairman, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Tennessee (Mr. Cohen).
  The amendment was agreed to.


                 Amendment No. 12 Offered by Mr. Takano

  The Acting CHAIR. It is now in order to consider amendment No. 12 
printed in part B of House Report 116-383.
  Mr. TAKANO. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Page 143, after line 8, insert the following:
       (c) Prohibition on Inclusion of Arrest Information if There 
     Is No Conviction.--Section 605(a) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681c(a)), as amended by section 
     809, is further amended by adding at the end the following:
       ``(18) Records of an arrest, if the consumer was not 
     convicted of any crime in connection with the arrest.''.

  The Acting CHAIR. Pursuant to House Resolution 811, the gentleman 
from California (Mr. Takano) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from California.
  Mr. TAKANO. Mr. Chair, I rise to offer an amendment to the 
Comprehensive CREDIT Act of 2020 that would prohibit the inclusion of 
arrest records on a consumer report if the arrest did not lead to a 
conviction.
  Consumer reporting in this country is extremely broken, and consumer 
reports regularly have unexpected errors. Millions of public records do 
not contain accurate information, which means that reports have been 
found to include outdated information and misclassified offenses.
  Additionally, incomplete reports fail to say whether or not a person 
who faced an arrest was exonerated or if criminal charges against them 
were dropped.
  An arrest does not prove criminal conduct and it is not a presumption 
of guilt. If a consumer was arrested and there was no subsequent 
conviction, that arrest should not be allowed to show on a consumer 
report.
  Now, due to the extreme bias in our criminal justice system, people 
of color are arrested and convicted at disproportionate levels in this 
country. For example, we know that African Americans and Hispanics are 
approximately two to three times more likely to be arrested than their 
White counterparts.

                              {time}  1600

  These disproportionate levels of arrests can negatively impact the 
ability for African Americans and Hispanics to obtain housing or find 
employment. That is why California, New York, and Kentucky have 
prohibited the inclusion of arrest records without a conviction on 
consumer reports. We need to

[[Page H694]]

follow their lead and implement this nationwide.
  I am encouraged by the work of my colleagues on the Financial 
Services Committee to limit the time adverse information can remain on 
a consumer credit report, including information pertaining to 
convictions.
  My amendment goes one step further by prohibiting arrest records from 
being included if they do not lead to a criminal conviction. Consumers 
deserve a fair shot in society and should not be penalized for wrongful 
arrests or arrests that did not lead to a guilty conviction.
  Mr. Chairman, I urge my colleagues to support my amendment, and I 
reserve the balance of my time.
  Mr. McHENRY. Mr. Chairman, I claim the time in opposition to the 
amendment.
  The Acting CHAIR. The gentleman from North Carolina is recognized for 
5 minutes.
  Mr. McHENRY. Mr. Chairman, this amendment would prohibit the 
inclusion of any arrest records on a consumer report if the arrest did 
not result in a conviction, but looking at the intention here, I would 
say to my colleague, I see the intention here.
  In my view, this needs a little more work. And I say this to a Member 
who is not on the Financial Services Committee. So it is a very 
thoughtful amendment. I appreciate the gentleman's approach.
  The difficulty here, and I am happy to yield, but the difficulty here 
is at what level? Is it multiple arrests that would be--I mean, I see 
this as the right intent.
  You don't want somebody who makes a mistake, and their court date--
because State courts are backed up, and you have a court date 6 months 
or a year in advance. You did something dumb. You are going to pay the 
price. You are a law-abiding citizen otherwise, but you broke the law, 
and you are accused of something very serious. In that period of time, 
you can't buy a house, potentially, you can't buy a car. I see that as 
the intention.
  Now, you also have the circumstance where you have somebody who has a 
traumatic life event and has a serious break from their previous 
reality, and over a short period of time, over that same 6 months, 
let's say, they have multiple arrests in increasing severity. We talk 
about the opioid crisis, but we have a larger societal crisis around 
mental illness and around abuse of illicit and otherwise heavily 
regulated drugs. So we have these periods of time that we have got to 
wrestle with in Federal law, but I see the gentleman's intent.
  So, while I am opposed to this amendment because I think it is too 
broad because I think there are severe penalties for that period of 
time, I think it is probably right and just to have a pause, and if 
something changes, then they need to remove the fact that you are even 
accused of a crime. That shouldn't be pertinent to somebody's long-term 
credit.
  So that is how I see it. If I am off base in some way, I am happy to 
engage on that.
  I yield to the gentleman from California for a response.
  Mr. TAKANO. Mr. Chairman, I appreciate the gentleman yielding.
  I want to point out to the gentleman that my amendment pertains to 
records of arrests that appear on consumer reports that did not lead to 
a conviction, so, what is recorded on the report is an arrest.
  I don't believe most Americans believe that it is fair for that 
consumer to suffer adverse ability to gain housing or to gain credit or 
whatever it may be, a job, but employers look at job----
  Mr. McHENRY. Mr. Chairman, reclaiming my time, on that subject 
matter, it is the period of time between the arrest and the court date 
is my concern.
  Mr. TAKANO. Mr. Chairman, is the gentleman concerned about the 
pending arrest?
  Mr. McHENRY. Yes.
  Mr. TAKANO. Mr. Chairman, we believe in those instances where there 
has been an arrest and there is a pending trial, so the arrest shows up 
on their record and there is a pending trial, we think it is a very 
small number of cases.
  I do agree with the gentleman from North Carolina that is something 
we should address, and I would be more than happy to work with him on 
final language if this should gain legs. I believe we can cure that 
particular instance.
  Mr. McHENRY. Mr. Chairman, I would say I think the gentleman from 
California (Mr. Takano) has offered a thoughtful amendment. We don't 
want any unjust actions taken against somebody because they are accused 
of something at one period of time or made a mistake and the courts 
found that that was not, in fact, something illegal.
  So I think he has the right intent. I think the gentleman's 
inclination is right. I would be happy to work with him on a standalone 
measure to achieve something similar, but I appreciate that.
  Mr. Chairman, I reserve the balance of my time.
  Mr. TAKANO. Mr. Chairman, I yield myself such time as I may consume.
  I appreciate the spirit in which the gentleman from North Carolina 
understands the intent here. I believe that most Americans seeing this 
language on its face would say it makes common sense. There is a kind 
of netherworld for that person who has been arrested but, yet, who has 
not been tried.
  I still say that our system of jurisprudence says that the person who 
has been arrested and not yet tried is still presumed to be innocent, 
and I still maintain that it is reasonable for Congress to hold a 
consumer reporting agency accountable to only reporting records of 
arrest for those who have been convicted.
  I understand there is some netherworld here, but I still think we 
need to err on the side of our system of jurisprudence, which says that 
we presume a person to be innocent until proven guilty, and a person 
who has been arrested and not yet gone to trial is in that status.

  Mr. Chairman, I reserve the balance of my time.
  Mr. McHENRY. Mr. Chairman, again, I still have concerns, but in the 
interest of due process, the direction of this amendment I think is a 
thoughtful one, and the gentleman's explanation is a strong explanation 
of his amendment.
  I would say in language such as no conviction, perhaps acquittal may 
be some better form of this, but this is something I am happy to work 
on if this ever gets to a conference committee, which I don't believe 
the bill will. But I am happy to engage with my colleague from 
California on the contents of this, and, as a separate measure, 
potentially, to work with him on that.
  Mr. Chairman, I yield back the balance of my time.
  Mr. TAKANO. Mr. Chairman, I yield myself the balance of my time.
  I urge that my colleagues back this very commonsense amendment, which 
would ensure that any person who has been arrested but never convicted 
or whose case has never been brought to trial--actually, not been 
convicted. I want to make it very clear, if they have not been 
convicted, they should not be listed on a consumer credit report.
  Mr. Chairman, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from California (Mr. Takano).
  The amendment was agreed to.


           Amendment No. 13 Offered by Mr. Brown of Maryland

  The Acting CHAIR. It is now in order to consider amendment No. 13 
printed in part B of House Report 116-383.
  Mr. BROWN of Maryland. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Page 44, line 18, before the period insert ``(increased by 
     $15,000,000)''.
       At the end of title IX, add the following:

     SEC. 904. SENSE OF CONGRESS.

       It is the sense of Congress that efforts to enhance 
     cybersecurity and implement routine security updates of 
     databases maintained by the nationwide consumer reporting 
     agencies that contain sensitive consumer data, including the 
     credit history and personal information of millions of 
     Americans, is critical to the national interest of the United 
     States.

     SEC. 905. CYBERSECURITY SUPERVISION AND EXAMINATION OF LARGE 
                   CONSUMER REPORTING AGENCIES.

       (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.), as amended by section 706, is further amended 
     by adding at the end the following:

[[Page H695]]

  


     ``SEC. 637. CYBERSECURITY SUPERVISION AND EXAMINATION OF 
                   LARGE CONSUMER REPORTING AGENCIES.

       ``(a) In General.--Consumer reporting agencies described 
     under section 603(p) shall be subject to cybersecurity 
     supervision and examination by the Bureau.
       ``(b) Minimum Training Requirements.--Consumer reporting 
     agencies described under section 603(p) shall meet minimum 
     training and ongoing certification requirements with respect 
     to cybersecurity at regular intervals, as established by the 
     Director of the Bureau.''.
       (b) Clerical Amendment.--The table of contents of the Fair 
     Credit Reporting Act, as amended by section 706, is further 
     amended by adding at the end the following:

``637. Cybersecurity supervision and examination of large consumer 
              reporting agencies.''.

  The Acting CHAIR. Pursuant to House Resolution 811, the gentleman 
from Maryland (Mr. Brown) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Maryland.
  Mr. BROWN of Maryland. Mr. Chairman, I yield myself such time as I 
may consume.
  I want to first recognize the hard work of the Financial Services 
Committee, under the leadership of Chairwoman Waters, and also the work 
and the commitment of Congresswoman Pressley on the underlying bill.
  This legislative package reforms the credit reporting industry and 
improves consumer protections.
  Credit scores play a critical role in the lives and financial futures 
of American consumers. The information relied upon by the industry is 
personal to us, things like when we were born, where we live, and where 
we work. This data is some of the most valuable information that we 
have in today's digital economy. It often is how we prove our very 
identity, if not existence. It is key to every aspect of our lives, 
from applying to college, purchasing a car, obtaining housing, 
investing in our futures, and, eventually, to collecting retirement.
  Credit agencies have not adequately secured this data and have 
violated our trust. The most egregious example of this is the Equifax 
breach of 2017. This theft was not a high-tech cyberattack. The 
weaknesses in the Equifax systems were known, as were the fixes, yet 
Equifax failed to take action.
  The credit agencies have demonstrated that they are not able to 
secure their systems by themselves. It is time for Congress to protect 
Americans from threats against their credit history and the misuse of 
their personal information.
  My amendment, Mr. Chairman, addresses this issue in two ways:
  First, it requires credit agencies to ensure they are meeting minimum 
training requirements for cybersecurity. Every major corporation and 
most Federal, State, and local government entities understand that 
cybersecurity training is crucial and have established training 
requirements and standards. Credit agencies should do the same.
  Second, it gives the Consumer Financial Protection Bureau the 
authority to examine the cybersecurity protocols and training of credit 
agencies, to ensure these agencies are taking appropriate steps to 
secure our critical personal information. This oversight will ensure 
that credit agencies are proactively adapting to the change in threats 
more institutions face in cyberspace.
  Mr. Chairman, I urge my colleagues to support this amendment and the 
underlying legislation, and I yield back the balance of my time.
  Mr. McHENRY. Mr. Chairman, I rise in opposition to this amendment, 
though I am not opposed to it.
  The Acting CHAIR. Without objection, the gentleman from North 
Carolina is recognized for 5 minutes.
  There was no objection.
  Mr. McHENRY. Mr. Chairman, I yield myself such time as I may consume.
  I am happy to see my friends on the other side of the aisle take the 
same interest that we have on this side of the aisle in protecting 
cybersecurity and protecting consumer data. I think it is great that 
this is a bipartisan concern that we share.
  This amendment reaffirms the data security concerns that Republicans 
have highlighted in the past with respect to credit reporting agencies, 
including back in February of last year, the only time we had a hearing 
in the House Financial Services Committee on the credit reporting 
agencies. We want to ensure that these credit reporting agencies 
protect our data.
  The collection and maintenance of our personal information and 
exposing that to risk is deeply problematic. All we need to do is look 
back a few years ago to the Equifax breach to understand how vital 
cybersecurity standards are, not only at the consumer credit reporting 
agencies, but across the financial sector.
  I appreciate the gentleman from Maryland using the language from my 
substitute amendment that I offered before the Rules Committee and 
before the House Financial Services Committee and incorporating it into 
this amendment. I am disappointed that the rest of the bill was not as 
bipartisan as this amendment text.
  Since this bill is not going anywhere, I would ask whether or not the 
author of the amendment would be interested in drafting a separate 
suspensionable--I think it has wide bipartisan support--a suspension-
worthy version of this as a stand-alone bill.
  I yield to the gentleman from Maryland.
  Mr. BROWN of Maryland. Mr. Chairman, I thank the gentleman for 
yielding.
  I don't share the gentleman from New Jersey's pessimism this early in 
the game, so I will reserve judgment and a response for the appropriate 
time.
  Mr. McHENRY. Mr. Chairman, reclaiming my time, I thank my new 
colleague, but bipartisanship is kind of rare to happen around here, so 
when it is offered, let's just go try to get it, try to work on it. 
That would be my suggestion, Mr. Chairman. Since this is the language, 
verbatim, from my substitute, I am trying to be charitable.
  But with that, like I said, I am not opposed to the amendment. In 
fact, I am proud to really have written the contents of what is being 
offered. I am grateful that the gentleman offered it and the Rules 
Committee approved it, because they didn't approve my stand-alone 
amendment in the nature of a substitute.
  Mr. Chairman, we are not going to resolve those broader issues, but I 
am happy to work with the gentleman if he is ever interested in a 
bipartisan bill on this measure. I am happy to do that.
  I am fine with the passage of this. I think the underlying bill is 
still deeply flawed. This doesn't tip the balance for me to make an 
awful bill really good, but it does make an awful bill just slightly 
less awful.
  Mr. Chairman, I yield back the balance of my time.

                              {time}  1615

  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Maryland (Mr. Brown).
  The question was taken; and the Acting Chair announced that the ayes 
appeared to have it.
  Mr. BROWN of Maryland. Mr. Chair, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Maryland 
will be postponed.


                Amendment No. 14 Offered by Mr. Panetta

  The Acting CHAIR. It is now in order to consider amendment No. 14 
printed in part B of House Report 116-383.
  Mr. PANETTA. Mr. Chair, I do have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Page 135, line 21, insert ``, including homelessness (as 
     defined by the Secretary of Housing and Urban Development),'' 
     after ``barriers''.

  The Acting CHAIR. Pursuant to House Resolution 811, the gentleman 
from California (Mr. Panetta) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from California.
  Mr. PANETTA. Mr. Chair, I thank Mr. Lawson, Ms. Pressley, and the 
ranking member for their work on this bill.
  I rise to offer an amendment to H.R. 3621, the Student Borrower 
Credit Improvement Act.
  As we all know, this bill that we are considering today strengthens 
consumer protections for all Americans by making overdue reforms to 
credit reporting.

[[Page H696]]

  Specifically, the Student Borrower Credit Improvement Act gives 
borrowers facing economic hardship an opportunity to repair their 
credit profiles and prevent certain prior delinquencies from being 
reported.
  These borrowers, who are working to do everything right, deserve that 
chance to repair their credit scores. But at times, when a borrower 
experiences sudden economic hardship, it can be nearly impossible to 
make payments on time. That is why the legislation in front of us 
allows borrowers to pause their repayments when they demonstrate undue 
hardship resulting from an unusual extenuating life circumstance.
  My amendment would include homelessness, as defined by HUD, as an 
extenuating life circumstance demonstrating a hardship, therefore 
making them eligible for that type of grace period that this 
legislation allows.
  When a borrower experiences homelessness, it is nearly impossible to 
focus on anything else, and securing a safe place to live becomes a top 
priority.
  This amendment would ensure that a borrower who is experiencing 
homelessness can focus on finding a place to stay without worrying 
about missing a payment.
  A Federal Reserve study has shown that student loan debt has caused a 
third of borrowers to move in with their parents after school. But many 
students with debt lack that type of support system, and faced with a 
lack of housing options, they do become homeless.
  On the central coast of California, where I represent, there are some 
borrowers who face homelessness even before graduating college. 
Students at the local university, the University of California at Santa 
Cruz, many of them have been forced to live in vehicles in the 
university's parking lots.
  By including my amendment in this legislation, we can ensure that 
borrowers experiencing homelessness are given a temporary reprieve and 
preserve their ability to repair their credit.
  Mr. Chair, I reserve the balance of my time.
  Mr. McHENRY. Mr. Chair, I claim the time in opposition to the 
amendment, even though I am not opposed to it.
  The Acting CHAIR. Without objection, the gentleman from North 
Carolina is recognized for 5 minutes.
  There was no objection.
  Mr. McHENRY. Mr. Chair, as we all know, homelessness is an issue that 
has plagued the lives of many Americans across this country, and we 
know the particular crisis that is in Los Angeles.
  I know that the gentleman is trying to deal with the particular 
issues of his home State, and so I commend him for that. But he is also 
highlighting something that has been a big debate--not debate, but a 
big point of discussion, I would say, and shared concern about 
homelessness that we have in the Financial Services Committee.
  I know every committee of jurisdiction has homelessness as a part of 
their agenda, but we are the committee that does housing, and we are 
trying to draw some consensus on how we deal with this homelessness 
crisis.
  We have a crisis of affordability across the country, but in 
particular, in high growth areas. It is a blessing that it is a high-
growth area, but there is an enormous number of challenges that come 
along the way.
  It means that commutes get longer for people who are working-class 
folks. It means that you have folks who are making serious life 
decisions with a great limitation, right? So that impairs, I think, 
economic growth.
  It is not just in New York or Los Angeles or San Francisco where 
there is a homelessness crisis. I say this not using it as words of 
attack to the sponsor of this. It is not. We have a homelessness crisis 
in every community in America because we have homeless. We have a 
veterans homelessness crisis because if we have a single veteran who is 
homeless, that is not in keeping with who we are as America.
  So I think it is important to raise this issue of homelessness in 
every way we can. I think a number of the policies that have been 
offered this Congress will make things worse, not better.
  For the affordability challenge, I feel like national rent control 
policies and things of that sort will move us in the wrong direction 
for ensuring that we have enough housing stock for those who seek it. 
With the changing nature of how people want to live, we have to make 
sure that housing stock fits with that so you are able to grow housing 
stock to meet that need, not just for young people, but for old people 
and everybody in between, as I find out I am getting old, right?
  But with this, I appreciate my colleague for offering this amendment. 
I think it is a thoughtful approach. It gives us the opportunity to 
have a wider discussion about homelessness and the challenges therein 
to those experiencing it, to the communities that are struggling with 
it, and to all of us to come to terms with the best way to approach it.
  Look, this doesn't tip the balance in my view of the underlying bill. 
For those of you who have been paying attention to this debate, I won't 
repeat myself on this, but this is the final amendment.
  I think the bill's sponsor is of goodwill in trying to address this. 
The underlying bill is still deeply problematic to me, but I commend my 
colleague for raising that.
  Mr. Chair, I reserve the balance of my time.
  Mr. PANETTA. Mr. Chair, I thank Mr. McHenry for his very thoughtful 
comments.
  Mr. Chair, I yield the remainder of my time to the gentlewoman from 
Massachusetts (Ms. Pressley).
  Ms. PRESSLEY. Mr. Chair, I find very often we tend to stereotype and 
present a very shallow narrative as to who experiences homelessness or 
is on the precipice of experiencing it.
  The reality is that struggle is certainly not a character flaw, and 
hardship is transcendent. Many of us have disruptive life events: a 
layoff, a death, a natural disaster, displacement. I could go on.
  The point is that far too many Americans are living on the brink of 
financial collapse. So while this administration continues to undo 
basic protections for those experiencing homelessness, we must be 
working to support them and help them to regain stability.
  There is no hierarchy of hurt. As someone who faced multiple eviction 
notices growing up, I can tell you that losing one's home is every bit 
as traumatic as losing one's job or being diagnosed with a life-
threatening illness.
  We should be working to help people find housing, not punishing and 
criminalizing those without it.
  This amendment would make it clear that Americans facing homelessness 
are able to get relief under our bill. I am proud to support it.
  Mr. Chair, I thank my colleague from California for offering this 
amendment. And in that this is the final amendment, I want to thank 
Chairwoman Waters for her leadership; the dedicated Financial Services 
Committee staff; Representative Lawson; and my dedicated A Team, 
specifically Aya Ibrahim, who has been the lead on this bill.
  Mr. McHENRY. Mr. Chair, again, for the overall bill, to put a bow on 
this, if you will, this bill is about socializing credit scores. If you 
socialize credit scores, you can socialize credit. If you can socialize 
credit, then you can have government make the decision about the 
allocation of credit in the private sector.
  This is a larger narrative from the far left in this country, which 
has now taken the opportunity to attempt to make legislative gains.
  The President has said he will not sign this bill, thankfully, which 
is good for the American consumer. Furthermore, I don't see this seeing 
the light of day in the Senate.
  Having said that, we still need to have a serious bipartisan 
conversation about how to reform the credit reporting agencies and the 
law that underlies their regulatory framework.
  Mr. Chair, I am grateful for the opportunity to debate here on the 
House floor. While I am not opposed to this amendment, I remain opposed 
to the overall bill and will urge my colleagues to vote ``no'' on that. 
But, again, I commend the gentleman from California (Mr. Panetta) for 
his offering of a thoughtful amendment dealing with homelessness and 
raising this issue, not as a local issue, but as one of national import 
and one worthy of debate here on the House floor.
  Mr. Chair, I yield back the balance of my time.

[[Page H697]]

  

  Mr. PANETTA. Mr. Chair, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from California (Mr. Panetta).
  The amendment was agreed to.
  Mr. LAWSON of Florida. Mr. Chair, I move that the Committee do now 
rise.
  The motion was agreed to.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Panetta) having assumed the chair, Mr. Payne, Acting Chair of the 
Committee of the Whole House on the state of the Union, reported that 
that Committee, having had under consideration the bill (H.R. 3621) to 
amend the Fair Credit Reporting Act to remove adverse information for 
certain defaulted or delinquent private education loan borrowers who 
demonstrate a history of loan repayment, and for other purposes, had 
come to no resolution thereon.

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