[House Report 116-306]
[From the U.S. Government Publishing Office]


116th Congress    }                                            {   Report
                          HOUSE OF REPRESENTATIVES
 1st Session      }                                            {  116-306

======================================================================



 
              FREE CREDIT SCORES FOR CONSUMERS ACT OF 2019

                                _______
                                

 November 21, 2019.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Ms. Waters, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 3618]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 3618) to establish requirements relating to 
credit scores and educational credit scores, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     9
Background and Need for Legislation..............................     9
Section-by-Section Analysis......................................    11
Hearings.........................................................    13
Committee Consideration..........................................    13
Committee Votes..................................................    13
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    17
Statement of Performance Goals and Objectives....................    17
New Budget Authority and CBO Cost Estimate.......................    17
Committee Cost Estimate..........................................    19
Unfunded Mandate Statement.......................................    19
Advisory Committee...............................................    19
Application of Law to the Legislative Branch.....................
Earmark Statement................................................    19
Duplication of Federal Programs..................................    19
Changes to Existing Law..........................................    20

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Free Credit Scores for Consumers Act 
of 2019''.

SEC. 2. FINDINGS.

  Congress finds the following:
          (1) While nationwide consumer reporting agencies (``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.
          (2) A July 2011 report by the Consumer Financial Protection 
        Bureau (``Consumer Bureau'') titled ``The Impact of Differences 
        between Consumer- and Creditor-Purchased Credit Scores'' found 
        that the credit scores made available to and purchased by 
        consumers from CRAs are unlikely to be the same credit scores 
        used by creditors and lenders to evaluate consumers' 
        creditworthiness.
          (3) That report found that the scarcity of public educational 
        tools to inform consumers of the differences among credit 
        scores, the large combined market share and brand recognition 
        of FICO credit scores, and the marketing practices of some 
        credit score sellers may perpetuate consumers' confusion about 
        credit scores. As a result, some consumers may be purchasing an 
        educational credit score or subscribing to a credit monitoring 
        service sold by a CRA, without realizing the limitations and 
        usefulness of these products and services.
          (4) Similarly, a September 2012 Consumer Bureau report titled 
        ``Analysis of Differences between Consumer- and Creditor-
        Purchased Credit Scores'' found that consumers do not know 
        before they purchase a credit score from a CRA whether this 
        credit score will closely track or vary significantly from the 
        credit score sold to creditors or lenders. Given the lack of 
        transparency about the usefulness of credit scores that are 
        marketed for purchase by consumers from CRAs and the resulting 
        consumer confusion, the Consumer Bureau recommended that 
        companies selling scores to consumers clearly inform consumers 
        that the scores marketed to consumers for purchase by CRAs can 
        vary, sometimes substantially, from the scores that are 
        actually sold to and used by creditors and lenders.
          (5) A February 2011 study by Consumer Federation of America 
        and VantageScore also found that half of the consumers surveyed 
        did not know that a credit score is designed to indicate the 
        risk of not repaying a credit obligation. Consumers also did 
        not know who makes credit scores available, what numerical 
        range constitutes excellent credit standing, or the financial 
        implications of having a low credit score.
          (6) 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.
          (7) 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.
          (8) 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.

SEC. 3. 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 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) 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'' each place that term appears.

SEC. 4. EXPANDS EXPLANATORY INFORMATION GIVEN TO CONSUMERS ABOUT HOW 
                    SCORES ARE CALCULATED.

  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--
                          ``(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. 5. REQUIRES CONSUMER REPORTING AGENCIES TO DISCLOSE PROMINENTLY 
                    THE DIFFERENCES BETWEEN AND LIMITATIONS OF CREDIT 
                    SCORES AND EDUCATIONAL CREDIT SCORES REQUIRED PRIOR 
                    TO A CONSUMER OBTAINING SUCH SCORES.

  Section 609(f) of the Fair Credit Reporting Act (15 U.S.C. 1681g(f)), 
as amended by section 3, 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. 6. PROVIDES CONSUMERS WITH FREE CREDIT SCORE DISCLOSURES WITH 
                    THEIR FREE ANNUAL CONSUMER REPORTS UPON REQUEST AND 
                    CREATES INSTANCES WHEN CONSUMERS AUTOMATICALLY 
                    RECEIVE FREE CONSUMER REPORTS AND CREDIT SCORES.

  (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'' each 
                                place such term appears 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 
        ``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 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 fraud alert, extended 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'' and inserting 
``subsection''.

SEC. 7. REQUIRES PRIVATE EDUCATIONAL LENDERS TO PROVIDE CONSUMERS WITH 
                    FREE COPIES OF ANY CONSUMER REPORTS AND CREDIT 
                    SCORES THAT THEY USED FOR UNDERWRITING BEFORE 
                    CONSUMERS SIGN LOAN AGREEMENTS.

  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. 8. REQUIRES MOTOR VEHICLE LENDERS OR INDIRECT AUTO LENDERS TO 
                    PROVIDE CONSUMERS WITH FREE COPIES OF ANY CONSUMER 
                    REPORTS AND CREDIT SCORES THAT THEY USED FOR 
                    UNDERWRITING BEFORE CONSUMERS SIGN LEASE OR LOAN 
                    AGREEMENTS.

  Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g), as 
amended by section 6, 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. 9. REQUIRES RESIDENTIAL MORTGAGE LENDERS TO PROVIDE CONSUMERS WITH 
                    FREE COPIES OF ANY CONSUMER REPORTS AND CREDIT 
                    SCORES THAT THEY USED FOR UNDERWRITING BEFORE 
                    CONSUMERS SIGN LOAN AGREEMENTS.

  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);
                  (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 redesignated) 
        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 redesignated), 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.''.

SEC. 10. RULEMAKING.

  Not later than the end of the 2-year period beginning on the date of 
the enactment of this Act, the Bureau of Consumer Financial Protection 
shall issue final rules to implement the amendments made by this Act.

                          Purpose and Summary

    On July 5, 2019, Representative Joyce Beatty introduced 
H.R. 3618, the ``Free Credit Scores for Consumers Act of 2019'' 
which directs the nationwide consumer reporting agencies (CRAs) 
and nationwide specialty CRAs to give consumers free copies of 
their credit scores that are used by creditors in making credit 
decisions, as determined by the Consumer Financial Protection 
Bureau (CFPB), or if not practicable, educational credit scores 
whenever consumers obtain their free annual consumer reports. 
It also requires CRAs to include free credit scores with 
reports when consumers exercise their rights to free consumer 
reports under existing law, such as when individuals believe 
they may be or are victims of fraud. This bill also requires 
expanded explanatory information given to consumers about how 
scores are calculated by enhancing the contextual information 
that accompanies numerical scores to include both negative and 
positive factors that impacted their score.

                  Background and Need for Legislation

    Our nation's credit reporting system is broken yet has an 
impact on almost every American. Credit scores and credit 
reports are increasingly relied upon by creditors, employers, 
insurers, and even law enforcement. Yet it has been more than 
15 years since Congress enacted comprehensive reform of the 
consumer reporting system,\1\ and there have been numerous 
shortcomings with the current system identified during that 
time that need to be addressed. For example, the Federal Trade 
Commission (FTC) study found in 2012 that one out of every five 
consumers have a verified error on their consumer reports and 5 
percent had errors serious enough to result in them being 
denied credit or paying more for mortgages, auto loans, 
insurance policies, and other financial obligations.\2\ An 
analysis of the CFPB consumer complaint database revealed that 
in 2018, credit reports were the most complained about 
financial product, and the three major credit bureaus--Equifax, 
Experian and TransUnion--were the most-complained about 
financial companies.\3\ It is critical that Congress act 
swiftly to address these critical flaws and modernize the Fair 
Credit Reporting Act to ensure the credit reporting system 
works better for all Americans.
---------------------------------------------------------------------------
    \1\The Fair and Accurate Credit Transactions Act of 2003 (FACT Act; 
P.L. 108-159), among other things, allows consumers to request and 
obtain a free credit report once a year from each of the three 
nationwide consumer reporting agencies.
    \2\https://www.ftc.gov/sites/default/files/documents/reports/
section-319-fair-and-accurate-credit-transactions-act-2003-fifth-
interim-federal-trade-commission/130211factareport.pdf
    \3\https://uspirg.org/news/usp/youre-not-alone-cfpb-complaints-rise
---------------------------------------------------------------------------
    While current law provides consumers with the right to 
obtain free annual consumer reports from each of the nationwide 
CRAs and nationwide specialty CRAs, consumers are not entitled 
to a free credit score when they obtain this report. According 
to the CFPB, many consumers believe consumer reports are ``hard 
to get and hard to read.''\4\ Providing consumers with their 
credit scores, along with their free annual consumer reports, 
will help all consumers, regardless of their income, to better 
understand their credit standing.
---------------------------------------------------------------------------
    \4\Consumer Financial Protection Bureau, Consumer Voices on Credit 
Reports and Scores 19, available at https://files.consumerfinance.gov/
f/201502_cfpb_report_consumer-voices-on-credit-reports-and-scores.pdf.
---------------------------------------------------------------------------
    Many consumers do not understand how credit scores are 
calculated and what actions they can take to improve their 
credit standing. A 2015 CFPB survey 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 is necessary.\5\ The CFPB found that 
consumers were commonly confused by conflicting advice on how 
to improve their scores. Furthermore, when consumers apply for 
credit, they often do so without having critical information 
about their creditworthiness to be able to make more informed 
credit decisions. The CFPB previously found that consumers with 
accurate perceptions of their credit standing may be better 
equipped to shop for favorable credit terms.\6\
---------------------------------------------------------------------------
    \5\Id.
    \6\Consumer Financial Protection Bureau, The impact of differences 
between consumer- and creditor-purchased credit scores 2 (2011), 
available at https://files.consumerfinance.gov/f/2011/07/
Report_20110719_CreditScores.pdf.
---------------------------------------------------------------------------
    This legislation is supported by more than 80 consumer, 
civil rights, labor, and community organizations.\7\ The 
National Association of Federally-Insured Credit Unions and the 
National Association of Realtors are also supportive of this 
legislation.\8\
---------------------------------------------------------------------------
    \7\Supporting organizations include 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 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, and WV Citizen Action Group. 
See http://ourfinancialsecurity.org/2019/07/news-release-afr-statement-
financial-services-committee-markup-credit-reporting/.
    \8\National Association of Federally-Insured Credit Unions letter 
available at https://www.nafcu.org/system/files/files/7-10-
19%20Letter%20to%20House%20Financial%20Services%20on%20Markup.pdf. 
National Association of Realtors letter, available at https://
narfocus.com/billdatabase/clientfiles/172/2/3417.pdf.
---------------------------------------------------------------------------
    This legislation is substantially similar to Title VI of 
the discussion draft of Chairwoman Maxine Waters' legislation, 
the ``Comprehensive Consumer Credit Reporting Reform Act of 
2019,'' which was considered at a full committee hearing on 
February 26, 2019 and was introduced in previous Congresses.\9\
---------------------------------------------------------------------------
    \9\Financial Services Committee Hearing: Who's Keeping Score? 
Holding Credit Bureaus Accountable and Repairing a Broken System 
(2019). Hearing information available at https://
financialservices.house.gov/calendar/eventsingle.aspx?EventID=402343. 
Also see H.R. 5282 (114th Congress), the Comprehensive Consumer Credit 
Reporting Reform Act of 2016, introduced by Rep. Waters on May 19, 
2016, and H.R. 3755 (115th Congress), the Comprehensive Consumer Credit 
Reporting Reform Act of 2017, introduced by Rep. Waters on September 
13, 2017, available with additional materials at https://
financialservices.house.gov/news/documentsingle.aspx?DocumentID=400788.
---------------------------------------------------------------------------

                      Section-by-Section Analysis


Section 1. Short title

    This section provides that H.R. 3618 may be cited as the 
``Free Credit Scores for Consumers Act of 2019''.

Section 2. Findings

    This section highlights government and other reports 
finding that consumers have a hard time accessing and 
understanding their credit reports. Consumers would benefit 
from greater access and a better understanding of their 
reports, and the different types of credit scores that exist, 
and are used by lenders.

Section 3. Definitions

    This section amends section 603 of the Fair Credit 
Reporting Act by adding definitions for ``credit score,'' 
``educational credit score,'' ``key factors,'' ``credit scoring 
model.''
    This section also includes a conforming amendment to the 
Fair Credit Reporting Act.

Section 4. Expands explanatory information given to consumers about how 
        scores are calculated

    This section amends section 609(f) of the Fair Credit 
Reporting Act.
    The amendments made by this section require detailed 
explanatory information be provided to consumers about how 
scores are calculated. The amendments require consumer 
reporting agencies to include at least four key factors that 
adversely affected the consumer's credit score as well as at 
least four factors that positively affected the credit score, 
and specific actions per factor (as possible) a consumer can 
take to improve their credit score. The amendments also mandate 
that credit reporting agencies maintain file information for 
credit scores relating to the consumer for two years from the 
date that the information is generated.

Section 5. Requires consumer reporting agencies to disclose prominently 
        the differences between and limitations of credit scores and 
        educational credit scores required prior to a consumer 
        obtaining such scores

    This section amends section 609(f) of the Fair Credit 
Reporting Act by requiring consumer reporting agencies to 
include on the home page of their website, applications, 
solicitations or marketing materials or media, a disclaimer 
that details the differences between educational credit and 
standard credit scores.

Section 6. Provides consumers with free credit score disclosures with 
        their free annual consumer reports upon request and creates 
        instances when consumers automatically receive free consumer 
        reports and credit scores

    This section amends section 612 of the Fair Credit 
Reporting Act by requiring consumer reporting agencies 
nationwide to display on their website a disclosure informing 
consumers of their right to obtain a free credit score with 
their credit score report, as well as identify instances in 
which consumers are also entitled to free copies of such 
reports and scores.

Section 7. Requires private educational lenders to provide consumers 
        with free copies of any consumer reports and credit scores that 
        they used for underwriting before consumers sign loan 
        agreements

    This section amends section 609 of the Fair Credit 
Reporting Act by requiring private educational lenders to 
provide consumers with free copies of any consumer reports and 
credit scores that they used for underwriting before consumers 
sign loan agreements. The amendments made by this section also 
prohibit the costs to the private education lender of obtaining 
such consumer reports from being charged, directly or 
indirectly, to the consumer.

Section 8. Requires motor vehicle lenders or indirect auto lenders to 
        provide consumers with free copies of any consumer reports and 
        credit scores that they used for underwriting before consumers 
        sign lease or loan agreements

    This section amends section 609 of the Fair Credit 
Reporting Act.
    The amendments made by this section require motor vehicle 
lenders or indirect auto lenders to provide consumers with free 
copies of any consumer reports and credit scores that they used 
for underwriting before consumers sign lease or loan 
agreements. The amendments made by this section also prohibit 
the costs to the motor vehicle lender or indirect auto lender 
associated with procuring such reports from being transferred 
or charged directly or indirectly to the consumer.

Section 9. Requires residential mortgage lenders to provide consumers 
        with free copies of any consumer reports and credit scores that 
        they used for underwriting before consumers sign loan 
        agreements

    This section amends section 609(g) of the Fair Credit 
Reporting Act.
    The amendments made by this section require residential 
mortgage lenders to provide consumers with free copies of any 
consumer reports and credit scores that they used for 
underwriting before consumers sign loan agreements. The 
amendments also do not require any person to disclose any 
credit score or related information after a loan has closed and 
prohibits the costs to the creditor or lender associated with 
procuring such reports from being transferred or charged 
directly or indirectly to the consumer.

Section 10. Rulemaking

    This section gives the Consumer Financial Protection Bureau 
no later than two years of enactment of H.R. 3618 to issue 
final rules to implement the amendments made by this act.

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 for the 
116th Congress--
    (1) The Committee on Financial Services held a hearing, 
entitled ``Who's Keeping Score? Holding Credit Bureaus 
Accountable and Repairing a Broken System'' to consider the 
``Comprehensive Consumer Credit Reporting Reform Act of 2019'' 
(Title VI of the discussion draft is substantially similar to 
H.R. 3618) on February 26, 2019. The two-panel hearing 
consisted of first the three CEOs of the three largest Credit 
Reporting Agencies: Equifax, TransUnion, and Experian. 
Witnesses on the second panel included representatives from the 
National Fair Housing Alliance, the National Consumer Law 
Center, UnidosUS, U.S. Public Interest Research Group (PIRG), 
and a Paul Hastings partner and attorney. The hearing allowed 
Members of the Financial Services Committee to hear from 
witnesses about the continuing challenges modernizing the Fair 
Credit Reporting Act to better protect consumers and their 
data, as well as other legislation to help overcome those 
challenges.
    (2) The Committee on Financial Services' taskforce on 
Financial Technology held a hearing, entitled ``Examining the 
Use of Alternative Data in Underwriting and Credit Scoring to 
Expand Access to Credit'' on July 25, 2019 to discuss emerging 
technologies and how they impact access to credit, and their 
impact across communities. The panel consisted of 
representatives from the National Consumer Law Center, Tulane 
University Law School, The Government Accountability Office 
(GAO), Upstart, and Upturn.
    (3) In addition, during the 115th Congress, the Financial 
Services Committee held a two-part hearing on the Equifax data 
breach and related credit reporting and consumer data 
protection issues. The first part of the hearing entitled 
``Examining the Equifax Data Breach'' took place on October 5, 
2017 and featured the former Chairman and CEO to Equifax. The 
Committee also held a Minority Day hearing, which was a 
continuation of the hearing entitled, ``Examining the Equifax 
Data Breach'' and took place on October 25, 2017. Witnesses 
included representatives from the Consumer Financial Protection 
Bureau, the National Consumer Law Center, Georgetown University 
Law Center, and the Office of the New York State Attorney 
General.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
July 11, 2019, and ordered H.R. 3618 to be reported favorably 
to the House with an amendment in the nature of a substitute by 
a vote of 32 yeas and 26 nays, a quorum being present.

                  Committee Votes and Roll Call Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
following roll call votes occurred during the Committee's 
consideration of H.R. 3618:


  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

             Statement of Performance Goals and Objectives

    Pursuant to clause (3)(c) of rule XIII of the Rules of the 
House of Representatives, the goals of H.R. 3618 are to 
increase consumer knowledge of and access to credit reports and 
credit scores.

                 New Budget Authority and CBO Estimate

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, and pursuant to clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following estimate for 
H.R. 3618 from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 22, 2019.
Hon. Maxine Waters,
Chairwoman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Madam Chairwoman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3618, the Free 
Credit Scores for Consumers Act of 2019.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is David Hughes.
            Sincerely,
                                             Mark P. Hadley
                                 (For Phillip L. Swagel, Director).
    Enclosure.

    
    

    Under current law, nationwide credit reporting agencies 
(CRAs) are required to provide to consumers, annually upon 
request, a free credit report that lists factors such as bill 
payment history, current debt, and other elements used to 
assess creditworthiness. H.R. 3618 would require CRAs to:
           Provide to consumers, annually upon request, 
        a statement containing a FICO credit score, an 
        educational credit score (which measures credit risk, 
        but cannot be used by lenders), or an explanation why 
        neither can be furnished. Besides the credit score 
        itself, the statement would identify factors that 
        contributed to the score, the range of possible scores 
        under the model used, and the distribution of scores 
        among recipient consumers.
           Provide to consumers, upon request, their 
        past two years of credit scores on file.
           Include a free credit score with any free 
        credit report that must be furnished under current law. 
        (For example, CRAs must provide a free credit report to 
        consumers that assert they are identity theft victims.)
           Increase transparency efforts and to notify 
        consumers of their right to receive free credit reports 
        and scores.
    Using information from the Consumer Financial Protection 
Bureau, CBO estimates that enacting the bill would increase 
direct spending by $2 million for the agency to issue rules to 
implement the bill over the 2020-2021 period. Issuing rules 
would require the services of five full-time employees at an 
annual cost of $200,000 each.
    H.R. 3618 contains private-sector mandates as defined in 
the Unfunded Mandates Reform Act (UMRA). CBO estimates that the 
cost of those mandates would exceed UMRA's private-sector 
threshold ($164 million in 2019, adjusted annually for 
inflation).
    Using industry data, CBO estimates that CRAs would provide 
free credit scores to about 20 million consumers each year. The 
costs would vary depending on prices negotiated between the CRA 
and the entities that provide credit scores. Using an estimated 
negotiated cost per score of $9 (the median in the range of 
likely cost), CBO estimates that CRAs would spend roughly $185 
million annually to comply with the mandate.
    On the basis of industry information, CBO estimates that 
CRAs also would spend about $50 million annually to comply with 
the following requirements:
           Disclose at least four key factors that 
        positively affect a consumer's credit score or 
        educational credit score (credit score statements 
        already list key factors that negatively affect 
        scores--also required by the bill);
           Maintain scores in a consumer's file for at 
        least two years; and
           Establish and maintain a portal for 
        consumers' online or phone access to scores.
    CRAs could not refer to an educational credit score as a 
credit score in any application, solicitation, marketing, or 
informational material. That prohibition would impose minimal 
costs on CRAs, CBO estimates.
    Finally, H.R. 3618 would require private education, motor 
vehicle, and residential mortgage lenders to give consumers a 
copy of any credit report or score used in underwriting a loan. 
Because lenders already possess that information, their cost to 
comply with the mandate would be small.
    The bill contains no intergovernmental mandates as defined 
in UMRA.
    The CBO staff contacts for this estimate are David Hughes 
(for federal costs) and Rachel Austin (for mandates). The 
estimate was reviewed by H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                        Committee Cost Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 3618. 
However, clause 3(d)(2)(B) of that rule provides that this 
requirement does not apply when the committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act.

                       Unfunded Mandate Statement

    Pursuant to Section 423 of the Congressional Budget and 
Impoundment Control Act (as amended by Section 101(a)(2) of the 
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee 
adopts as its own the estimate of federal mandates regarding 
H.R. 3618, as amended, prepared by the Director of the 
Congressional Budget Office.

                           Advisory Committee

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

              Application of Law to the Legislative Branch

    H.R. 3618 does not apply to terms and conditions of 
employment or to access to public services or accommodations 
within the legislative branch.

                           Earmark Statement

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 3618 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as described in clauses 9(e), 9(f), and 9(g) of rule 
XXI.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee states that no 
provision of H.R. 3618 establishes or reauthorizes a program of 
the Federal Government known to be duplicative of another 
federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

          Changes in Existing Law Made by the Bill as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, H.R. 3618, as reported, are shown as follows:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                       FAIR CREDIT REPORTING ACT



           *       *       *       *       *       *       *
TITLE VI--CONSUMER CREDIT REPORTING

           *       *       *       *       *       *       *


Sec. 603. Definitions and rules of construction

  (a) Definitions and rules of construction set forth in this 
section are applicable for the purposes of this title.
  (b) The term ``person'' means any individual, partnership, 
corporation, trust, estate, cooperative, association, 
government or governmental subdivision or agency, or other 
entity.
  (c) The term ``consumer'' means an individual.
  (d) Consumer Report.--
          (1) In general.--The term ``consumer report'' means 
        any written, oral, or other communication of any 
        information by a consumer reporting agency bearing on a 
        consumer's credit worthiness, credit standing, credit 
        capacity, character, general reputation, personal 
        characteristics, or mode of living which is used or 
        expected to be used or collected in whole or in part 
        for the purpose of serving as a factor in establishing 
        the consumer's eligibility for--
                  (A) credit or insurance to be used primarily 
                for personal, family, or household purposes;
                  (B) employment purposes; or
                  (C) any other purpose authorized under 
                section 604.
          (2) Exclusions.--Except as provided in paragraph (3), 
        the term ``consumer report'' does not include--
                  (A) subject to section 624, any--
                          (i) report containing information 
                        solely as to transactions or 
                        experiences between the consumer and 
                        the person making the report;
                          (ii) communication of that 
                        information among persons related by 
                        common ownership or affiliated by 
                        corporate control; or
                          (iii) communication of other 
                        information among persons related by 
                        common ownership or affiliated by 
                        corporate control, if it is clearly and 
                        conspicuously disclosed to the consumer 
                        that the information may be 
                        communicated among such persons and the 
                        consumer is given the opportunity, 
                        before the time that the information is 
                        initially communicated, to direct that 
                        such information not be communicated 
                        among such persons;
                  (B) any authorization or approval of a 
                specific extension of credit directly or 
                indirectly by the issuer of a credit card or 
                similar device;
                  (C) any report in which a person who has been 
                requested by a third party to make a specific 
                extension of credit directly or indirectly to a 
                consumer conveys his or her decision with 
                respect to such request, if the third party 
                advises the consumer of the name and address of 
                the person to whom the request was made, and 
                such person makes the disclosures to the 
                consumer required under section 615; or
                  (D) a communication described in subsection 
                (o) or (x).
          (3) Restriction on sharing of medical information.--
        Except for information or any communication of 
        information disclosed as provided in section 604(g)(3), 
        the exclusions in paragraph (2) shall not apply with 
        respect to information disclosed to any person related 
        by common ownership or affiliated by corporate control, 
        if the information is--
                  (A) medical information;
                  (B) an individualized list or description 
                based on the payment transactions of the 
                consumer for medical products or services; or
                  (C) an aggregate list of identified consumers 
                based on payment transactions for medical 
                products or services.
  (e) The term ``investigative consumer report'' means a 
consumer report or portion thereof in which information on a 
consumer's character, general reputation, personal 
characteristics, or mode of living is obtained through personal 
interviews with neighbors, friends, or associates of the 
consumer reported on or with others with whom he is acquainted 
or who may have knowledge concerning any such items of 
information. However, such information shall not include 
specific factual information on a consumer's credit record 
obtained directly from a creditor of the consumer or from a 
consumer reporting agency when such information was obtained 
directly from a creditor of the consumer or from the consumer.
  (f) The term ``consumer reporting agency'' means any person 
which, for monetary fees, dues, or on a cooperative nonprofit 
basis, regularly engages in whole or in part in the practice of 
assembling or evaluating consumer credit information or other 
information on consumers for the purpose of furnishing consumer 
reports to third parties, and which uses any means or facility 
of interstate commerce for the purpose of preparing or 
furnishing consumer reports.
  (g) The term ``file'', when used in connection with 
information on any consumer, means all of the information on 
that consumer recorded and retained by a consumer reporting 
agency regardless of how the information is stored.
  (h) The term ``employment purposes'' when used in connection 
with a consumer report means a report used for the purpose of 
evaluating a consumer for employment, promotion, reassignment 
or retention as an employee.
  (i) Medical Information.--The term ``medical information''--
          (1) means information or data, whether oral or 
        recorded, in any form or medium, created by or derived 
        from a health care provider or the consumer, that 
        relates to--
                  (A) the past, present, or future physical, 
                mental, or behavioral health or condition of an 
                individual;
                  (B) the provision of health care to an 
                individual; or
                  (C) the payment for the provision of health 
                care to an individual.
          (2) does not include the age or gender of a consumer, 
        demographic information about the consumer, including a 
        consumer's residence address or e-mail address, or any 
        other information about a consumer that does not relate 
        to the physical, mental, or behavioral health or 
        condition of a consumer, including the existence or 
        value of any insurance policy.
  (j) Definitions Relating to Child Support Obligations.--
          (1) Overdue support.--The term ``overdue support'' 
        has the meaning given to such term in section 466(e) of 
        the Social Security Act.
          (2) State or local child support enforcement 
        agency.--The term ``State or local child support 
        enforcement agency'' means a State or local agency 
        which administers a State or local program for 
        establishing and enforcing child support obligations.
  (k) Adverse Action.--
          (1) Actions included.--The term ``adverse action''--
                  (A) has the same meaning as in section 
                701(d)(6) of the Equal Credit Opportunity Act; 
                and
                  (B) means--
                          (i) a denial or cancellation of, an 
                        increase in any charge for, or a 
                        reduction or other adverse or 
                        unfavorable change in the terms of 
                        coverage or amount of, any insurance, 
                        existing or applied for, in connection 
                        with the underwriting of insurance;
                          (ii) a denial of employment or any 
                        other decision for employment purposes 
                        that adversely affects any current or 
                        prospective employee;
                          (iii) a denial or cancellation of, an 
                        increase in any charge for, or any 
                        other adverse or unfavorable change in 
                        the terms of, any license or benefit 
                        described in section 604(a)(3)(D); and
                          (iv) an action taken or determination 
                        that is--
                                  (I) made in connection with 
                                an application that was made 
                                by, or a transaction that was 
                                initiated by, any consumer, or 
                                in connection with a review of 
                                an account under section 
                                604(a)(3)(F)(ii); and
                                  (II) adverse to the interests 
                                of the consumer.
          (2) Applicable findings, decisions, commentary, and 
        orders.--For purposes of any determination of whether 
        an action is an adverse action under paragraph (1)(A), 
        all appropriate final findings, decisions, commentary, 
        and orders issued under section 701(d)(6) of the Equal 
        Credit Opportunity Act by the Bureau or any court shall 
        apply.
  (l) Firm Offer of Credit or Insurance.--The term ``firm offer 
of credit or insurance'' means any offer of credit or insurance 
to a consumer that will be honored if the consumer is 
determined, based on information in a consumer report on the 
consumer, to meet the specific criteria used to select the 
consumer for the offer, except that the offer may be further 
conditioned on one or more of the following:
          (1) The consumer being determined, based on 
        information in the consumer's application for the 
        credit or insurance, to meet specific criteria bearing 
        on credit worthiness or insurability, as applicable, 
        that are established--
                  (A) before selection of the consumer for the 
                offer; and
                  (B) for the purpose of determining whether to 
                extend credit or insurance pursuant to the 
                offer.
          (2) Verification--
                  (A) that the consumer continues to meet the 
                specific criteria used to select the consumer 
                for the offer, by using information in a 
                consumer report on the consumer, information in 
                the consumer's application for the credit or 
                insurance, or other information bearing on the 
                credit worthiness or insurability of the 
                consumer; or
                  (B) of the information in the consumer's 
                application for the credit or insurance, to 
                determine that the consumer meets the specific 
                criteria bearing on credit worthiness or 
                insurability.
          (3) The consumer furnishing any collateral that is a 
        requirement for the extension of the credit or 
        insurance that was--
                  (A) established before selection of the 
                consumer for the offer of credit or insurance; 
                and
                  (B) disclosed to the consumer in the offer of 
                credit or insurance.
  (m) Credit or Insurance Transaction That Is Not Initiated by 
the Consumer.--The term ``credit or insurance transaction that 
is not initiated by the consumer'' does not include the use of 
a consumer report by a person with which the consumer has an 
account or insurance policy, for purposes of--
          (1) reviewing the account or insurance policy; or
          (2) collecting the account.
  (n) State.--The term ``State'' means any State, the 
Commonwealth of Puerto Rico, the District of Columbia, and any 
territory or possession of the United States.
  (o) Excluded Communications.--A communication is described in 
this subsection if it is a communication--
          (1) that, but for subsection (d)(2)(D), would be an 
        investigative consumer report;
          (2) that is made to a prospective employer for the 
        purpose of--
                  (A) procuring an employee for the employer; 
                or
                  (B) procuring an opportunity for a natural 
                person to work for the employer;
          (3) that is made by a person who regularly performs 
        such procurement;
          (4) that is not used by any person for any purpose 
        other than a purpose described in subparagraph (A) or 
        (B) of paragraph (2); and
          (5) with respect to which--
                  (A) the consumer who is the subject of the 
                communication--
                          (i) consents orally or in writing to 
                        the nature and scope of the 
                        communication, before the collection of 
                        any information for the purpose of 
                        making the communication;
                          (ii) consents orally or in writing to 
                        the making of the communication to a 
                        prospective employer, before the making 
                        of the communication; and
                          (iii) in the case of consent under 
                        clause (i) or (ii) given orally, is 
                        provided written confirmation of that 
                        consent by the person making the 
                        communication, not later than 3 
                        business days after the receipt of the 
                        consent by that person;
                  (B) the person who makes the communication 
                does not, for the purpose of making the 
                communication, make any inquiry that if made by 
                a prospective employer of the consumer who is 
                the subject of the communication would violate 
                any applicable Federal or State equal 
                employment opportunity law or regulation; and
                  (C) the person who makes the communication--
                          (i) discloses in writing to the 
                        consumer who is the subject of the 
                        communication, not later than 5 
                        business days after receiving any 
                        request from the consumer for such 
                        disclosure, the nature and substance of 
                        all information in the consumer's file 
                        at the time of the request, except that 
                        the sources of any information that is 
                        acquired solely for use in making the 
                        communication and is actually used for 
                        no other purpose, need not be disclosed 
                        other than under appropriate discovery 
                        procedures in any court of competent 
                        jurisdiction in which an action is 
                        brought; and
                          (ii) notifies the consumer who is the 
                        subject of the communication, in 
                        writing, of the consumer's right to 
                        request the information described in 
                        clause (i).
  (p) Consumer Reporting Agency That Compiles and Maintains 
Files on Consumers on a Nationwide Basis.--The term ``consumer 
reporting agency that compiles and maintains files on consumers 
on a nationwide basis'' means a consumer reporting agency that 
regularly engages in the practice of assembling or evaluating, 
and maintaining, for the purpose of furnishing consumer reports 
to third parties bearing on a consumer's credit worthiness, 
credit standing, or credit capacity, each of the following 
regarding consumers residing nationwide:
          (1) Public record information.
          (2) Credit account information from persons who 
        furnish that information regularly and in the ordinary 
        course of business.
  (q) Definitions Relating to Fraud Alerts.--
          (1) Active duty military consumer.--The term ``active 
        duty military consumer'' means a consumer in military 
        service who--
                  (A) is on active duty (as defined in section 
                101(d)(1) of title 10, United States Code) or 
                is a reservist performing duty under a call or 
                order to active duty under a provision of law 
                referred to in section 101(a)(13) of title 10, 
                United States Code; and
                  (B) is assigned to service away from the 
                usual duty station of the consumer.
          (2) Fraud alert; active duty alert.--The terms 
        ``fraud alert'' and ``active duty alert'' mean a 
        statement in the file of a consumer that--
                  (A) notifies all prospective users of a 
                consumer report relating to the consumer that 
                the consumer may be a victim of fraud, 
                including identity theft, or is an active duty 
                military consumer, as applicable; and
                  (B) is presented in a manner that facilitates 
                a clear and conspicuous view of the statement 
                described in subparagraph (A) by any person 
                requesting such consumer report.
          (3) Identity theft.--The term ``identity theft'' 
        means a fraud committed using the identifying 
        information of another person, subject to such further 
        definition as the Bureau may prescribe, by regulation.
          (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 alleges an identity theft;
                  (B) that is a copy of an official, valid 
                report filed by a consumer with an appropriate 
                Federal, State, or local law enforcement 
                agency, including the United States Postal 
                Inspection Service, or such other government 
                agency deemed appropriate by the Bureau; and
                  (C) the filing of which subjects the person 
                filing the report to criminal penalties 
                relating to the filing of false information if, 
                in fact, the information in the report is 
                false.
          (5) New credit plan.--The term ``new credit plan'' 
        means a new account under an open end credit plan (as 
        defined in section 103(i) of the Truth in Lending Act) 
        or a new credit transaction not under an open end 
        credit plan.
  (r) Credit and Debit Related Terms--
          (1) Card issuer.--The term ``card issuer'' means--
                  (A) a credit card issuer, in the case of a 
                credit card; and
                  (B) a debit card issuer, in the case of a 
                debit card.
          (2) Credit card.--The term ``credit card'' has the 
        same meaning as in section 103 of the Truth in Lending 
        Act.
          (3) Debit card.--The term ``debit card'' means any 
        card issued by a financial institution to a consumer 
        for use in initiating an electronic fund transfer from 
        the account of the consumer at such financial 
        institution, for the purpose of transferring money 
        between accounts or obtaining money, property, labor, 
        or services.
          (4) Account and electronic fund transfer.--The terms 
        ``account'' and ``electronic fund transfer'' have the 
        same meanings as in section 903 of the Electronic Fund 
        Transfer Act.
          (5) Credit and creditor.--The terms ``credit'' and 
        ``creditor'' have the same meanings as in section 702 
        of the Equal Credit Opportunity Act.
  (s) Federal Banking Agency.--The term ``Federal banking 
agency'' has the same meaning as in section 3 of the Federal 
Deposit Insurance Act.
  (t) Financial Institution.--The term ``financial 
institution'' means a State or National bank, a State or 
Federal savings and loan association, a mutual savings bank, a 
State or Federal credit union, or any other person that, 
directly or indirectly, holds a transaction account (as defined 
in section 19(b) of the Federal Reserve Act) belonging to a 
consumer.
  (u) Reseller.--The term ``reseller'' means a consumer 
reporting agency that--
          (1) assembles and merges information contained in the 
        database of another consumer reporting agency or 
        multiple consumer reporting agencies concerning any 
        consumer for purposes of furnishing such information to 
        any third party, to the extent of such activities; and
          (2) does not maintain a database of the assembled or 
        merged information from which new consumer reports are 
        produced.
  (v) Commission.--The term ``Commission'' means the Bureau.
  (w) The term ``Bureau'' means the Bureau of Consumer 
Financial Protection.
  (x) Nationwide Specialty Consumer Reporting Agency.--The term 
``nationwide specialty consumer reporting agency'' means a 
consumer reporting agency that compiles and maintains files on 
consumers on a nationwide basis relating to--
          (1) medical records or payments;
          (2) residential or tenant history;
          (3) check writing history;
          (4) employment history; or
          (5) insurance claims.
  (y) Exclusion of Certain Communications for Employee 
Investigations.--
          (1) Communications described in this subsection.--A 
        communication is described in this subsection if--
                  (A) but for subsection (d)(2)(D), the 
                communication would be a consumer report;
                  (B) the communication is made to an employer 
                in connection with an investigation of--
                          (i) suspected misconduct relating to 
                        employment; or
                          (ii) compliance with Federal, State, 
                        or local laws and regulations, the 
                        rules of a self-regulatory 
                        organization, or any preexisting 
                        written policies of the employer;
                  (C) the communication is not made for the 
                purpose of investigating a consumer's credit 
                worthiness, credit standing, or credit 
                capacity; and
                  (D) the communication is not provided to any 
                person except--
                          (i) to the employer or an agent of 
                        the employer;
                          (ii) to any Federal or State officer, 
                        agency, or department, or any officer, 
                        agency, or department of a unit of 
                        general local government;
                          (iii) to any self-regulatory 
                        organization with regulatory authority 
                        over the activities of the employer or 
                        employee;
                          (iv) as otherwise required by law; or
                          (v) pursuant to section 608.
          (2) Subsequent disclosure.--After taking any adverse 
        action based in whole or in part on a communication 
        described in paragraph (1), the employer shall disclose 
        to the consumer a summary containing the nature and 
        substance of the communication upon which the adverse 
        action is based, except that the sources of information 
        acquired solely for use in preparing what would be but 
        for subsection (d)(2)(D) an investigative consumer 
        report need not be disclosed.
          (3) Self-regulatory organization defined.--For 
        purposes of this subsection, the term ``self-regulatory 
        organization'' includes any self-regulatory 
        organization (as defined in section 3(a)(26) of the 
        Securities Exchange Act of 1934), any entity 
        established under title I of the Sarbanes-Oxley Act of 
        2002, any board of trade designated by the Commodity 
        Futures Trading Commission, and any futures association 
        registered with such Commission.
  (z) Veteran.--The term ``veteran'' has the meaning given the 
term in section 101 of title 38, United States Code.
  (aa) Veteran's Medical Debt.--The term ``veteran's medical 
debt''--
          (1) means a medical collection debt of a veteran owed 
        to a non-Department of Veterans Affairs health care 
        provider that was submitted to the Department for 
        payment for health care authorized by the Department of 
        Veterans Affairs; and
          (2) includes medical collection debt that the 
        Department of Veterans Affairs has wrongfully charged a 
        veteran.
  (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 
        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.

           *       *       *       *       *       *       *


Sec. 605. Requirements relating to information contained in consumer 
                    reports

  (a) Information Excluded From Consumer Reports.--Except as 
authorized under subsection (b), no consumer reporting agency 
may make any consumer report containing any of the following 
items of information:
  (1) Cases under title 11 of the United States Code or under 
the Bankruptcy Act that, from the date of entry of the order 
for relief or the date of adjudication, as the case may be, 
antedate the report by more than 10 years.
  (2) Civil suits, civil judgments, and records of arrest that, 
from date of entry, antedate the report by more than seven 
years or until the governing statute of limitations has 
expired, whichever is the longer period.
  (3) Paid tax liens which, from date of payment, antedate the 
report by more than seven years.
  (4) Accounts placed for collection or charged to profit and 
loss which antedate the report by more than seven years.
  (5) Any other adverse item of information, other than records 
of convictions of crimes which antedates the report by more 
than seven years.
          (6) The name, address, and telephone number of any 
        medical information furnisher that has notified the 
        agency of its status, unless--
                  (A) such name, address, and telephone number 
                are restricted or reported using codes that do 
                not identify, or provide information sufficient 
                to infer, the specific provider or the nature 
                of such services, products, or devices to a 
                person other than the consumer; or
                  (B) the report is being provided to an 
                insurance company for a purpose relating to 
                engaging in the business of insurance other 
                than property and casualty insurance.
          (7) With respect to a consumer reporting agency 
        described in section 603(p), any information related to 
        a veteran's medical debt if the date on which the 
        hospital care, medical services, or extended care 
        services was rendered relating to the debt antedates 
        the report by less than 1 year if the consumer 
        reporting agency has actual knowledge that the 
        information is related to a veteran's medical debt and 
        the consumer reporting agency is in compliance with its 
        obligation under section 302(c)(5) of the Economic 
        Growth, Regulatory Relief, and Consumer Protection Act.
          (8) With respect to a consumer reporting agency 
        described in section 603(p), any information related to 
        a fully paid or settled veteran's medical debt that had 
        been characterized as delinquent, charged off, or in 
        collection if the consumer reporting agency has actual 
        knowledge that the information is related to a 
        veteran's medical debt and the consumer reporting 
        agency is in compliance with its obligation under 
        section 302(c)(5) of the Economic Growth, Regulatory 
        Relief, and Consumer Protection Act.
  (b) The provisions of paragraphs (1) through (5) of 
subsection (a) are not applicable in the case of any consumer 
credit report to be used in connection with--
          (1) a credit transaction involving, or which may 
        reasonably be expected to involve, a principal amount 
        of $150,000 or more;
          (2) the underwriting of life insurance involving, or 
        which may reasonably be expected to involve, a face 
        amount of $150,000 or more; or
          (3) the employment of any individual at an annual 
        salary which equals, or which may reasonably be 
        expected to equal $75,000, or more.
  (c) Running of Reporting Period.--
          (1) In general.--The 7-year period referred to in 
        paragraphs (4) and (6) of subsection (a) shall begin, 
        with respect to any delinquent account that is placed 
        for collection (internally or by referral to a third 
        party, whichever is earlier), charged to profit and 
        loss, or subjected to any similar action, upon the 
        expiration of the 180-day period beginning on the date 
        of the commencement of the delinquency which 
        immediately preceded the collection activity, charge to 
        profit and loss, or similar action.
          (2) Effective date.--Paragraph (1) shall apply only 
        to items of information added to the file of a consumer 
        on or after the date that is 455 days after the date of 
        enactment of the Consumer Credit Reporting Reform Act 
        of 1996.
  (d) Information Required To Be Disclosed.--
          (1) Title 11 information.--Any consumer reporting 
        agency that furnishes a consumer report that contains 
        information regarding any case involving the consumer 
        that arises under title 11, United States Code, shall 
        include in the report an identification of the chapter 
        of such title 11 under which such case arises if 
        provided by the source of the information. If any case 
        arising or filed under title 11, United States Code, is 
        withdrawn by the consumer before a final judgment, the 
        consumer reporting agency shall include in the report 
        that such case or filing was withdrawn upon receipt of 
        documentation certifying such withdrawal.
          (2) Key factor in credit score information.--Any 
        consumer reporting agency that furnishes a consumer 
        report that contains any credit score or any other risk 
        score or predictor on any consumer shall include in the 
        report a clear and conspicuous statement that a key 
        factor [(as defined in section 609(f)(2)(B))] that 
        adversely affected such score or predictor was the 
        number of enquiries, if such a predictor was in fact a 
        key factor that adversely affected such score. This 
        paragraph shall not apply to a check services company, 
        acting as such, which issues authorizations for the 
        purpose of approving or processing negotiable 
        instruments, electronic fund transfers, or similar 
        methods of payments, but only to the extent that such 
        company is engaged in such activities.
  (e) Indication of Closure of Account by Consumer.--If a 
consumer reporting agency is notified pursuant to section 
623(a)(4) that a credit account of a consumer was voluntarily 
closed by the consumer, the agency shall indicate that fact in 
any consumer report that includes information related to the 
account.
  (f) Indication of Dispute by Consumer.--If a consumer 
reporting agency is notified pursuant to section 623(a)(3) that 
information regarding a consumer who was furnished to the 
agency is disputed by the consumer, the agency shall indicate 
that fact in each consumer report that includes the disputed 
information.
  (g) Truncation of Credit Card and Debit Card Numbers.--
          (1) In general.--Except as otherwise provided in this 
        subsection, no person that accepts credit cards or 
        debit cards for the transaction of business shall print 
        more than the last 5 digits of the card number or the 
        expiration date upon any receipt provided to the 
        cardholder at the point of the sale or transaction.
          (2) Limitation.--This subsection shall apply only to 
        receipts that are electronically printed, and shall not 
        apply to transactions in which the sole means of 
        recording a credit card or debit card account number is 
        by handwriting or by an imprint or copy of the card.
          (3) Effective date.--This subsection shall become 
        effective--
                  (A) 3 years after the date of enactment of 
                this subsection, with respect to any cash 
                register or other machine or device that 
                electronically prints receipts for credit card 
                or debit card transactions that is in use 
                before January 1, 2005; and
                  (B) 1 year after the date of enactment of 
                this subsection, with respect to any cash 
                register or other machine or device that 
                electronically prints receipts for credit card 
                or debit card transactions that is first put 
                into use on or after January 1, 2005.
  (h) Notice of Discrepancy in Address.--
          (1) In general.--If a person has requested a consumer 
        report relating to a consumer from a consumer reporting 
        agency described in section 603(p), the request 
        includes an address for the consumer that substantially 
        differs from the addresses in the file of the consumer, 
        and the agency provides a consumer report in response 
        to the request, the consumer reporting agency shall 
        notify the requester of the existence of the 
        discrepancy.
          (2) Regulations.--
                  (A) Regulations required.--The Bureau shall,, 
                in consultation with the Federal banking 
                agencies, the National Credit Union 
                Administration, and the Federal Trade 
                Commission,, prescribe regulations providing 
                guidance regarding reasonable policies and 
                procedures that a user of a consumer report 
                should employ when such user has received a 
                notice of discrepancy under paragraph (1).
                  (B) Policies and procedures to be included.--
                The regulations prescribed under subparagraph 
                (A) shall describe reasonable policies and 
                procedures for use by a user of a consumer 
                report--
                          (i) to form a reasonable belief that 
                        the user knows the identity of the 
                        person to whom the consumer report 
                        pertains; and
                          (ii) if the user establishes a 
                        continuing relationship with the 
                        consumer, and the user regularly and in 
                        the ordinary course of business 
                        furnishes information to the consumer 
                        reporting agency from which the notice 
                        of discrepancy pertaining to the 
                        consumer was obtained, to reconcile the 
                        address of the consumer with the 
                        consumer reporting agency by furnishing 
                        such address to such consumer reporting 
                        agency as part of information regularly 
                        furnished by the user for the period in 
                        which the relationship is established.

           *       *       *       *       *       *       *


Sec. 609. Disclosures to consumers

  (a) Every consumer reporting agency shall, upon request, and 
subject to section 610(a)(1), clearly and accurately disclose 
to the consumer:
          (1) All information in the consumer's file at the 
        time of the request, except that--
                  (A) if the consumer to whom the file relates 
                requests that the first 5 digits of the social 
                security number (or similar identification 
                number) of the consumer not be included in the 
                disclosure and the consumer reporting agency 
                has received appropriate proof of the identity 
                of the requester, the consumer reporting agency 
                shall so truncate such number in such 
                disclosure; and
                  (B) nothing in this paragraph shall be 
                construed to require a consumer reporting 
                agency to disclose to a consumer any 
                information concerning credit scores or any 
                other risk scores or predictors relating to the 
                consumer.
          (2) The sources of the information; except that the 
        sources of information acquired solely for use in 
        preparing an investigative consumer report and actually 
        used for no other purpose need not be disclosed: 
        Provided, That in the event an action is brought under 
        this title, such sources shall be available to the 
        plaintiff under appropriate discovery procedures in the 
        court in which the action is brought.
          (3)(A) Identification of each person (including each 
        end-user identified under section 607(e)(1)) that 
        procured a consumer report--
                  (i) for employment purposes, during the 2-
                year period preceding the date on which the 
                request is made; or
                  (ii) for any other purpose, during the 1-year 
                period preceding the date on which the request 
                is made.
          (B) An identification of a person under subparagraph 
        (A) shall include--
                  (i) the name of the person or, if applicable, 
                the trade name (written in full) under which 
                such person conducts business; and
                  (ii) upon request of the consumer, the 
                address and telephone number of the person.
          (C) Subparagraph (A) does not apply if--
                  (i) the end user is an agency or department 
                of the United States Government that procures 
                the report from the person for purposes of 
                determining the eligibility of the consumer to 
                whom the report relates to receive access or 
                continued access to classified information (as 
                defined in section 604(b)(4)(E)(i)); and
                  (ii) the head of the agency or department 
                makes a written finding as prescribed under 
                section 604(b)(4)(A).
          (4) The dates, original payees, and amounts of any 
        checks upon which is based any adverse characterization 
        of the consumer, included in the file at the time of 
        the disclosure.
          (5) A record of all inquiries received by the agency 
        during the 1-year period preceding the request that 
        identified the consumer in connection with a credit or 
        insurance transaction that was not initiated by the 
        consumer.
          (6) If the consumer requests the credit file and not 
        the credit score, a statement that the consumer may 
        request and obtain a credit score.
  (b) The requirements of subsection (a) respecting the 
disclosure of sources of information and the recipients of 
consumer reports do not apply to information received or 
consumer reports furnished prior to the effective date of this 
title except to the extent that the matter involved is 
contained in the files of the consumer reporting agency on that 
date.
  (c) Summary of Rights To Obtain and Dispute Information in 
Consumer Reports and To Obtain Credit Scores.--
          (1) Commission summary of rights required.--
                  (A) In general.--The Commission shall prepare 
                a model summary of the rights of consumers 
                under this title.
                  (B) Content of summary.--The summary of 
                rights prepared under subparagraph (A) shall 
                include a description of--
                          (i) the right of a consumer to obtain 
                        a copy of a consumer report under 
                        subsection (a) from each consumer 
                        reporting agency;
                          (ii) the frequency and circumstances 
                        under which a consumer is entitled to 
                        receive a consumer report without 
                        charge under section 612;
                          (iii) the right of a consumer to 
                        dispute information in the file of the 
                        consumer under section 611;
                          (iv) the right of a consumer to 
                        obtain a credit score from a consumer 
                        reporting agency, and a description of 
                        how to obtain a credit score;
                          (v) the method by which a consumer 
                        can contact, and obtain a consumer 
                        report from, a consumer reporting 
                        agency without charge, as provided in 
                        the regulations of the Bureau 
                        prescribed under section 211(c) of the 
                        Fair and Accurate Credit Transactions 
                        Act of 2003; and
                          (vi) the method by which a consumer 
                        can contact, and obtain a consumer 
                        report from, a consumer reporting 
                        agency described in section 603(w), as 
                        provided in the regulations of the 
                        Bureau prescribed under section 
                        612(a)(1)(C).
                  (C) Availability of summary of rights.--The 
                Commission shall--
                          (i) actively publicize the 
                        availability of the summary of rights 
                        prepared under this paragraph;
                          (ii) conspicuously post on its 
                        Internet website the availability of 
                        such summary of rights; and
                          (iii) promptly make such summary of 
                        rights available to consumers, on 
                        request.
          (2) Summary of rights required to be included with 
        agency disclosures.--A consumer reporting agency shall 
        provide to a consumer, with each written disclosure by 
        the agency to the consumer under this section--
                  (A) the summary of rights prepared by the 
                Bureau under paragraph (1);
                  (B) in the case of a consumer reporting 
                agency described in section 603(p), a toll-free 
                telephone number established by the agency, at 
                which personnel are accessible to consumers 
                during normal business hours;
                  (C) a list of all Federal agencies 
                responsible for enforcing any provision of this 
                title, and the address and any appropriate 
                phone number of each such agency, in a form 
                that will assist the consumer in selecting the 
                appropriate agency;
                  (D) a statement that the consumer may have 
                additional rights under State law, and that the 
                consumer may wish to contact a State or local 
                consumer protection agency or a State attorney 
                general (or the equivalent thereof) to learn of 
                those rights; and
                  (E) a statement that a consumer reporting 
                agency is not required to remove accurate 
                derogatory information from the file of a 
                consumer, unless the information is outdated 
                under section 605 or cannot be verified.
  (d) Summary of Rights of Identity Theft Victims.--
          (1) In general.--The Commission, in consultation with 
        the Federal banking agencies and the National Credit 
        Union Administration, shall prepare a model summary of 
        the rights of consumers under this title with respect 
        to the procedures for remedying the effects of fraud or 
        identity theft involving credit, an electronic fund 
        transfer, or an account or transaction at or with a 
        financial institution or other creditor.
          (2) Summary of rights and contact information.--
        Beginning 60 days after the date on which the model 
        summary of rights is prescribed in final form by the 
        Bureau pursuant to paragraph (1), if any consumer 
        contacts a consumer reporting agency and expresses a 
        belief that the consumer is a victim of fraud or 
        identity theft involving credit, an electronic fund 
        transfer, or an account or transaction at or with a 
        financial institution or other creditor, the consumer 
        reporting agency shall, in addition to any other action 
        that the agency may take, provide the consumer with a 
        summary of rights that contains all of the information 
        required by the Bureau under paragraph (1), and 
        information on how to contact the Bureau to obtain more 
        detailed information.
  (e) Information Available to Victims.--
          (1) In general.--For the purpose of documenting 
        fraudulent transactions resulting from identity theft, 
        not later than 30 days after the date of receipt of a 
        request from a victim in accordance with paragraph (3), 
        and subject to verification of the identity of the 
        victim and the claim of identity theft in accordance 
        with paragraph (2), a business entity that has provided 
        credit to, provided for consideration products, goods, 
        or services to, accepted payment from, or otherwise 
        entered into a commercial transaction for consideration 
        with, a person who has allegedly made unauthorized use 
        of the means of identification of the victim, shall 
        provide a copy of application and business transaction 
        records in the control of the business entity, whether 
        maintained by the business entity or by another person 
        on behalf of the business entity, evidencing any 
        transaction alleged to be a result of identity theft 
        to--
                  (A) the victim;
                  (B) any Federal, State, or local government 
                law enforcement agency or officer specified by 
                the victim in such a request; or
                  (C) any law enforcement agency investigating 
                the identity theft and authorized by the victim 
                to take receipt of records provided under this 
                subsection.
          (2) Verification of identity and claim.--Before a 
        business entity provides any information under 
        paragraph (1), unless the business entity, at its 
        discretion, otherwise has a high degree of confidence 
        that it knows the identity of the victim making a 
        request under paragraph (1), the victim shall provide 
        to the business entity--
                  (A) as proof of positive identification of 
                the victim, at the election of the business 
                entity--
                          (i) the presentation of a government-
                        issued identification card;
                          (ii) personally identifying 
                        information of the same type as was 
                        provided to the business entity by the 
                        unauthorized person; or
                          (iii) personally identifying 
                        information that the business entity 
                        typically requests from new applicants 
                        or for new transactions, at the time of 
                        the victim's request for information, 
                        including any documentation described 
                        in clauses (i) and (ii); and
                  (B) as proof of a claim of identity theft, at 
                the election of the business entity--
                          (i) a copy of a police report 
                        evidencing the claim of the victim of 
                        identity theft; and
                          (ii) a properly completed--
                                  (I) copy of a standardized 
                                affidavit of identity theft 
                                developed and made available by 
                                the Bureau; or
                                  (II) an affidavit of fact 
                                that is acceptable to the 
                                business entity for that 
                                purpose.
          (3) Procedures.--The request of a victim under 
        paragraph (1) shall--
                  (A) be in writing;
                  (B) be mailed to an address specified by the 
                business entity, if any; and
                  (C) if asked by the business entity, include 
                relevant information about any transaction 
                alleged to be a result of identity theft to 
                facilitate compliance with this section 
                including--
                          (i) if known by the victim (or if 
                        readily obtainable by the victim), the 
                        date of the application or transaction; 
                        and
                          (ii) if known by the victim (or if 
                        readily obtainable by the victim), any 
                        other identifying information such as 
                        an account or transaction number.
          (4) No charge to victim.--Information required to be 
        provided under paragraph (1) shall be so provided 
        without charge.
          (5) Authority to decline to provide information.--A 
        business entity may decline to provide information 
        under paragraph (1) if, in the exercise of good faith, 
        the business entity determines that--
                  (A) this subsection does not require 
                disclosure of the information;
                  (B) after reviewing the information provided 
                pursuant to paragraph (2), the business entity 
                does not have a high degree of confidence in 
                knowing the true identity of the individual 
                requesting the information;
                  (C) the request for the information is based 
                on a misrepresentation of fact by the 
                individual requesting the information relevant 
                to the request for information; or
                  (D) the information requested is Internet 
                navigational data or similar information about 
                a person's visit to a website or online 
                service.
          (6) Limitation on liability.--Except as provided in 
        section 621, sections 616 and 617 do not apply to any 
        violation of this subsection.
          (7) Limitation on civil liability.--No business 
        entity may be held civilly liable under any provision 
        of Federal, State, or other law for disclosure, made in 
        good faith pursuant to this subsection.
          (8) No new recordkeeping obligation.--Nothing in this 
        subsection creates an obligation on the part of a 
        business entity to obtain, retain, or maintain 
        information or records that are not otherwise required 
        to be obtained, retained, or maintained in the ordinary 
        course of its business or under other applicable law.
          (9) Rule of construction.--
                  (A) In general.--No provision of subtitle A 
                of title V of Public Law 106-102, prohibiting 
                the disclosure of financial information by a 
                business entity to third parties shall be used 
                to deny disclosure of information to the victim 
                under this subsection.
                  (B) Limitation.--Except as provided in 
                subparagraph (A), nothing in this subsection 
                permits a business entity to disclose 
                information, including information to law 
                enforcement under subparagraphs (B) and (C) of 
                paragraph (1), that the business entity is 
                otherwise prohibited from disclosing under any 
                other applicable provision of Federal or State 
                law.
          (10) Affirmative defense.--In any civil action 
        brought to enforce this subsection, it is an 
        affirmative defense (which the defendant must establish 
        by a preponderance of the evidence) for a business 
        entity to file an affidavit or answer stating that--
                  (A) the business entity has made a reasonably 
                diligent search of its available business 
                records; and
                  (B) the records requested under this 
                subsection do not exist or are not reasonably 
                available.
          (11) Definition of victim.--For purposes of this 
        subsection, the term ``victim'' means a consumer whose 
        means of identification or financial information has 
        been used or transferred (or has been alleged to have 
        been used or transferred) without the authority of that 
        consumer, with the intent to commit, or to aid or abet, 
        an identity theft or a similar crime.
          (12) Effective date.--This subsection shall become 
        effective 180 days after the date of enactment of this 
        subsection.
          (13) Effectiveness study.--Not later than 18 months 
        after the date of enactment of this subsection, the 
        Comptroller General of the United States shall submit a 
        report to Congress assessing the effectiveness of this 
        provision.
  [(f) Disclosure of Credit Scores.--
          [(1) In general.--Upon the request of a consumer for 
        a credit score, a consumer reporting agency shall 
        supply to the consumer a statement indicating that the 
        information and credit scoring model may be different 
        than the credit score that may be used by the lender, 
        and a notice which shall include--
                  [(A) the current credit score of the consumer 
                or the most recent credit score of the consumer 
                that was previously calculated by the credit 
                reporting agency for a purpose related to the 
                extension of credit;
                  [(B) the range of possible credit scores 
                under the model used;
                  [(C) all of the key factors that adversely 
                affected the credit score of the consumer in 
                the model used, the total number of which shall 
                not exceed 4, subject to paragraph (9);
                  [(D) the date on which the credit score was 
                created; and
                  [(E) the name of the person or entity that 
                provided the credit score or credit file upon 
                which the credit score was created.
          [(2) Definitions.--For purposes of this subsection, 
        the following definitions shall apply:
                  [(A) Credit score.--The term ``credit 
                score''--
                          [(i) means a numerical value or a 
                        categorization derived from a 
                        statistical tool or modeling system 
                        used by a person who makes or arranges 
                        a loan to predict the likelihood of 
                        certain credit behaviors, including 
                        default (and the numerical value or the 
                        categorization derived from such 
                        analysis may also be referred to as a 
                        ``risk predictor'' or ``risk score''); 
                        and
                          [(ii) does not include--
                                  [(I) any mortgage score or 
                                rating of an automated 
                                underwriting system that 
                                considers one or more factors 
                                in addition to credit 
                                information, including the loan 
                                to value ratio, the amount of 
                                down payment, or the financial 
                                assets of a consumer; or
                                  [(II) any other elements of 
                                the underwriting process or 
                                underwriting decision.
                  [(B) Key factors.--The term ``key factors'' 
                means all relevant elements or reasons 
                adversely affecting the credit score for the 
                particular individual, listed in the order of 
                their importance based on their effect on the 
                credit score.
          [(3) Timeframe and manner of disclosure.--The 
        information required by this subsection shall be 
        provided in the same timeframe and manner as the 
        information described in subsection (a).
          [(4) Applicability to certain uses.--This subsection 
        shall not be construed so as to compel a consumer 
        reporting agency to develop or disclose a score if the 
        agency does not--
                  [(A) distribute scores that are used in 
                connection with residential real property 
                loans; or
                  [(B) develop scores that assist credit 
                providers in understanding the general credit 
                behavior of a consumer and predicting the 
                future credit behavior of the consumer.
          [(5) Applicability to credit scores developed by 
        another person.--
                  [(A) In general.--This subsection shall not 
                be construed to require a consumer reporting 
                agency that distributes credit scores developed 
                by another person or entity to provide a 
                further explanation of them, or to process a 
                dispute arising pursuant to section 611, except 
                that the consumer reporting agency shall 
                provide the consumer with the name and address 
                and website for contacting the person or entity 
                who developed the score or developed the 
                methodology of the score.
                  [(B) Exception.--This paragraph shall not 
                apply to a consumer reporting agency that 
                develops or modifies scores that are developed 
                by another person or entity.
          [(6) Maintenance of credit scores not required.--This 
        subsection shall not be construed to require a consumer 
        reporting agency to maintain credit scores in its 
        files.
          [(7) Compliance in certain cases.--In complying with 
        this subsection, a consumer reporting agency shall--
                  [(A) supply the consumer with a credit score 
                that is derived from a credit scoring model 
                that is widely distributed to users by that 
                consumer reporting agency in connection with 
                residential real property loans or with a 
                credit score that assists the consumer in 
                understanding the credit scoring assessment of 
                the credit behavior of the consumer and 
                predictions about the future credit behavior of 
                the consumer; and
                  [(B) a statement indicating that the 
                information and credit scoring model may be 
                different than that used by the lender.
          [(8) Fair and reasonable fee.--A consumer reporting 
        agency may charge a fair and reasonable fee, as 
        determined by the Bureau, for providing the information 
        required under this subsection.
          [(9) Use of enquiries as a key factor.--If a key 
        factor that adversely affects the credit score of a 
        consumer consists of the number of enquiries made with 
        respect to a consumer report, that factor shall be 
        included in the disclosure pursuant to paragraph (1)(C) 
        without regard to the numerical limitation in such 
        paragraph.]
  (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--
                          (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).
          (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.
  (g) Disclosure of Credit Scores by Certain Mortgage 
Lenders.--
          (1) In general.--Any person who makes or arranges 
        loans and who uses [a consumer credit score] any 
        consumer reports or credit scores [, as defined in 
        subsection (f),] in connection with an application 
        initiated or sought by a consumer for a closed end loan 
        or the establishment of an open end loan for a consumer 
        purpose that is secured by 1 to 4 units of residential 
        real property (hereafter in this subsection referred to 
        as the ``lender'') shall provide [the following to the 
        consumer as soon as reasonably practicable:], 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).
                  [(A) Information required under subsection 
                (f).--
                          [(i) In general.--A copy of the 
                        information identified in subsection 
                        (f) that was obtained from a consumer 
                        reporting agency or was developed and 
                        used by the user of the information.
                          [(ii) Notice under subparagraph 
                        (d).--In addition to the information 
                        provided to it by a third party that 
                        provided the credit score or scores, a 
                        lender is only required to provide the 
                        notice contained in subparagraph (D).
                  [(B) Disclosures in case of automated 
                underwriting system.--
                          [(i) In general.--If a person that is 
                        subject to this subsection uses an 
                        automated underwriting system to 
                        underwrite a loan, that person may 
                        satisfy the obligation to provide a 
                        credit score by disclosing a credit 
                        score and associated key factors 
                        supplied by a consumer reporting 
                        agency.
                          [(ii) Numerical credit score.--
                        However, if a numerical credit score is 
                        generated by an automated underwriting 
                        system used by an enterprise, and that 
                        score is disclosed to the person, the 
                        score shall be disclosed to the 
                        consumer consistent with subparagraph 
                        (C).
                          [(iii) Enterprise defined.--For 
                        purposes of this subparagraph, the term 
                        ``enterprise'' has the same meaning as 
                        in paragraph (6) of section 1303 of the 
                        Federal Housing Enterprises Financial 
                        Safety and Soundness Act of 1992.
                  [(C) Disclosures of credit scores not 
                obtained from a consumer reporting agency.--A 
                person that is subject to the provisions of 
                this subsection and that uses a credit score, 
                other than a credit score provided by a 
                consumer reporting agency, may satisfy the 
                obligation to provide a credit score by 
                disclosing a credit score and associated key 
                factors supplied by a consumer reporting 
                agency.]
          (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.
          [(D)] (3) Notice to home loan applicants.--A copy of 
        the following notice, which shall include the name, 
        address, and telephone number of each consumer 
        reporting agency providing a credit score that was 
        used:

                  ``notice to the home loan applicant

  ``In connection with your application for a home loan, the 
lender must disclose to you, free of charge, the score that a 
consumer reporting agency distributed to users and the lender 
used in connection with your home loan, and the key factors 
[affecting your credit scores] affecting your credit score or 
scores.
   ``The credit score is a computer generated summary 
calculated at the time of the request and based on information 
that a consumer reporting agency or lender has on file. The 
scores are based on data about your credit history and payment 
patterns. Credit scores are important because they are used to 
assist the lender in determining whether you will obtain a 
loan. They may also be used to determine what interest rate you 
may be offered on the mortgage. Credit scores can change over 
time, depending on your conduct, how your credit history and 
payment patterns change, and how credit scoring technologies 
change.
   ``Because the score is based on information in your credit 
history, it is very important that you review the credit-
related information that is being furnished to make sure it is 
accurate. Credit records may vary from one company to another.
   ``If you have questions about your credit score or the 
credit information that is furnished to you, contact the 
consumer reporting agency at the address and telephone number 
provided with this notice, or contact the lender, if the lender 
developed or generated the credit score. The consumer reporting 
agency plays no part in the decision to take any action on the 
loan application and is unable to provide you with specific 
reasons for the decision on a loan application.
   ``If you have questions concerning the terms of the loan, 
contact the lender.''.
                  [(E) Actions not required under this 
                subsection.--This subsection shall not require 
                any person to--
                          [(i) explain the information provided 
                        pursuant to subsection (f);
                          [(ii) disclose any information other 
                        than a credit score or key factors, as 
                        defined in subsection (f);
                          [(iii) disclose any credit score or 
                        related information obtained by the 
                        user after a loan has closed;
                          [(iv) provide more than 1 disclosure 
                        per loan transaction; or
                          [(v) provide the disclosure required 
                        by this subsection when another person 
                        has made the disclosure to the consumer 
                        for that loan transaction.
                  [(F) No obligation for content.--
                          [(i) In general.--The obligation of 
                        any person pursuant to this subsection 
                        shall be limited solely to providing a 
                        copy of the information that was 
                        received from the consumer reporting 
                        agency.
                          [(ii) Limit on liability.--No person 
                        has liability under this subsection for 
                        the content of that information or for 
                        the omission of any information within 
                        the report provided by the consumer 
                        reporting agency.]
          [(G)]  (4)  Person defined as excluding enterprise.--
        As used in this subsection, the term ``person'' does 
        not include an enterprise (as defined in paragraph (6) 
        of section 1303 of the Federal Housing Enterprises 
        Financial Safety and Soundness Act of 1992).
          [(2)] (5) Prohibition on disclosure clauses null and 
        void.--
                  (A) In general.--Any provision in a contract 
                that prohibits the disclosure of a credit score 
                or scores by a person who makes or arranges 
                loans or a consumer reporting agency is void.
                  (B) No liability for disclosure under this 
                subsection.--A lender shall not have liability 
                under any contractual provision for disclosure 
                of a credit score or scores pursuant to this 
                subsection.
          (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.
  (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.
  (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. 612. CHARGES FOR CERTAIN DISCLOSURES.

  (a) Free Annual Disclosure.--
          (1) Nationwide consumer reporting agencies.--
                  (A) In general.--All consumer reporting 
                agencies described in subsections (p) and (w) 
                of section 603 shall make all disclosures 
                pursuant to section 609 (including the 
                disclosure of a credit score or educational 
                credit score under subsection (f) of such 
                section) once during any 12-month period upon 
                request of the consumer and without charge to 
                the consumer.
                  (B) Centralized source.--Subparagraph (A) 
                shall apply with respect to a consumer 
                reporting agency described in section 603(p) 
                only if the request from the consumer is made 
                using the centralized source established for 
                such purpose in accordance with section 211(c) 
                of the Fair and Accurate Credit Transactions 
                Act of 2003.
                  (C) Nationwide specialty consumer reporting 
                agency.--
                          (i) In general.--The [Commission] 
                        Bureau shall prescribe regulations 
                        applicable to each consumer reporting 
                        agency described in section 603(w) to 
                        require the establishment of a 
                        streamlined process for consumers to 
                        request consumer reports, credit 
                        scores, and educational credit scores 
                        (as applicable) under subparagraph (A), 
                        which shall include, at a minimum, the 
                        establishment by each such agency of a 
                        toll-free telephone number for such 
                        requests.
                          (ii) Considerations.--In prescribing 
                        regulations under clause (i), the 
                        Bureau shall consider--
                                  (I) the significant demands 
                                that may be placed on consumer 
                                reporting agencies in providing 
                                such consumer reports, credit 
                                scores, and educational credit 
                                scores (as applicable);
                                  (II) appropriate means to 
                                ensure that consumer reporting 
                                agencies can satisfactorily 
                                meet those demands, including 
                                the efficacy of a system of 
                                staggering the availability to 
                                consumers of such consumer 
                                reports, credit scores, and 
                                educational credit scores (as 
                                applicable); and
                                  (III) the ease by which 
                                consumers should be able to 
                                contact consumer reporting 
                                agencies with respect to access 
                                to such consumer reports, 
                                credit scores, and educational 
                                credit scores (as applicable).
                          (iii) Date of issuance.--The 
                        [Commission] Bureau shall issue the 
                        regulations required by this 
                        subparagraph in final form not later 
                        than 6 months after the date of 
                        enactment of the Fair and Accurate 
                        Credit Transactions Act of 2003.
                          (iv) Consideration of ability to 
                        comply.--The regulations of the Bureau 
                        under this subparagraph shall establish 
                        an effective date by which each 
                        nationwide specialty consumer reporting 
                        agency (as defined in section 603(w)) 
                        shall be required to comply with 
                        subsection (a), which effective date--
                                  (I) shall be established 
                                after consideration of the 
                                ability of each nationwide 
                                specialty consumer reporting 
                                agency to comply with 
                                subsection (a); and
                                  (II) shall be not later than 
                                6 months after the date on 
                                which such regulations are 
                                issued in final form (or such 
                                additional period not to exceed 
                                3 months, as the Bureau 
                                determines appropriate).
          (2) Timing.--A consumer reporting agency shall 
        provide a consumer report, credit score, or educational 
        credit score under paragraph (1) not later than [15 
        days] 3 business days after the date on which the 
        request is received under paragraph (1).
          (3) Reinvestigations.--Notwithstanding the time 
        periods specified in section 611(a)(1), a 
        reinvestigation under that section by a consumer 
        reporting agency upon a request of a consumer that is 
        made after receiving a consumer report, credit score, 
        or educational credit score under this subsection shall 
        be completed not later than 45 days after the date on 
        which the request is received.
          (4) Exception for first 12 months of operation.--This 
        subsection shall not apply to a consumer reporting 
        agency that has not been furnishing consumer reports, 
        credit scores, or educational credit scores to third 
        parties on a continuing basis during the 12-month 
        period preceding a request under paragraph (1), with 
        respect to consumers residing nationwide.
  (b) Free Disclosure After Adverse Notice to Consumer.--Each 
consumer reporting agency that maintains a file on a consumer 
shall make all disclosures pursuant to section 609 (including 
the disclosure of a credit score or educational credit score, 
as applicable, under subsection (f) of such section) without 
charge to the consumer if, not later than 60 days after receipt 
by such consumer of a notification pursuant to section 615, or 
of a notification from a debt collection agency affiliated with 
that consumer reporting agency stating that the consumer's 
credit rating may be or has been adversely affected, the 
consumer makes a request under section 609.
  (c) Free Disclosure Under Certain Other Circumstances.--Upon 
the request of the consumer, a consumer reporting agency shall 
make all disclosures pursuant to section 609 (including the 
disclosure of a credit score or educational credit score under 
subsection (f) of such section) once during any 12-month period 
without charge to that consumer if the consumer certifies in 
writing that the consumer--
          (1) is unemployed and intends to apply for employment 
        in the 60-day period beginning on the date on which the 
        certification is made;
          (2) is a recipient of public welfare assistance[; 
        or];
          (3) has reason to believe that the file on the 
        consumer at the agency contains inaccurate information 
        due to fraud[.];
          (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.
  (d) Free Disclosures in Connection With Fraud Alerts.--Upon 
the request of a consumer, a consumer reporting agency 
described in section 603(p) shall make all disclosures pursuant 
to section 609 (including the disclosure of a credit score or 
educational credit score under subsection (f) of such section) 
without charge to the consumer, as provided in subsections 
(a)(2) and (b)(2) of section 605A, as applicable.
  (e) Other Charges Prohibited.--A consumer reporting agency 
shall not impose any charge on a consumer for providing any 
notification required by this title or making any disclosure 
required by this title, except as authorized by subsection (f).
  (f) Reasonable Charges Allowed for Certain Disclosures.--
          (1) In general.--In the case of a request from a 
        consumer other than a request that is covered by any of 
        subsections (a) through (d), a consumer reporting 
        agency may impose a [reasonable charge on a consumer--]
                  [(A) for making a disclosure to the consumer 
                pursuant to section 609] reasonable charge on a 
                consumer for providing a consumer report to a 
                consumer, which charge--
                  [(i)] (A) shall not exceed $8; and
                  [(ii)] (B) shall be indicated to the consumer 
                before making the [disclosure; and] disclosure.
                  [(B) for furnishing, pursuant to section 
                611(d), following a reinvestigation under 
                section 611(a), a statement, codification, or 
                summary to a person designated by the consumer 
                under that section after the 30-day period 
                beginning on the date of notification of the 
                consumer under paragraph (6) or (8) of section 
                611(a) with respect to the reinvestigation, 
                which charge--
                          [(i) shall not exceed the charge that 
                        the agency would impose on each 
                        designated recipient for a consumer 
                        report; and
                          [(ii) shall be indicated to the 
                        consumer before furnishing such 
                        information.]
          (2) Modification of amount.--The Bureau shall 
        increase the amount referred to in paragraph (1)(A)(i) 
        on January 1 of each year, based proportionally on 
        changes in the Consumer Price Index, with fractional 
        changes rounded to the nearest fifty cents.
  (g) Prevention of Deceptive Marketing of Credit Reports.--
          (1) In general.--Subject to rulemaking pursuant to 
        section 205(b) of the Credit CARD Act of 2009, any 
        advertisement for a free credit report in any medium 
        shall prominently disclose in such advertisement that 
        free credit reports are available under Federal law at: 
        ``AnnualCreditReport.com'' (or such other source as may 
        be authorized under Federal law).
          (2) Television and radio advertisement.--In the case 
        of an advertisement broadcast by television, the 
        disclosures required under paragraph (1) shall be 
        included in the audio and visual part of such 
        advertisement. In the case of an advertisement 
        broadcast by televison or radio, the disclosure 
        required under paragraph (1) shall consist only of the 
        following: ``This is not the free credit report 
        provided for by Federal law''.
  (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 
                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:

``SEC. ``

   Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 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:

``SEC. ``

   Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 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 fraud alert, extended 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.

           *       *       *       *       *       *       *


Sec. 615. Requirements on users of consumer reports

  (a) Duties of Users Taking Adverse Actions on the Basis of 
Information Contained in Consumer Reports.--If any person takes 
any adverse action with respect to any consumer that is based 
in whole or in part on any information contained in a consumer 
report, the person shall--
          (1) provide oral, written, or electronic notice of 
        the adverse action to the consumer;
          (2) provide to the consumer written or electronic 
        disclosure--
                  (A) of a numerical credit score [as defined 
                in section 609(f)(2)(A)] used by such person in 
                taking any adverse action based in whole or in 
                part on any information in a consumer report; 
                and
                  (B) of the information [set forth in 
                subparagraphs (B) through (E) of section 
                609(f)(1)] with respect to a credit score 
                described in section 609(f)(2), if available;
          (3) provide to the consumer orally, in writing, or 
        electronically--
                  (A) the name, address, and telephone number 
                of the consumer reporting agency (including a 
                toll-free telephone number established by the 
                agency if the agency compiles and maintains 
                files on consumers on a nationwide basis) that 
                furnished the report to the person; and
                  (B) a statement that the consumer reporting 
                agency did not make the decision to take the 
                adverse action and is unable to provide the 
                consumer the specific reasons why the adverse 
                action was taken; and
          (4) provide to the consumer an oral, written, or 
        electronic notice of the consumer's right--
                  (A) to obtain, under section 612, a free copy 
                of a consumer report on the consumer from the 
                consumer reporting agency referred to in 
                paragraph (3), which notice shall include an 
                indication of the 60-day period under that 
                section for obtaining such a copy; and
                  (B) to dispute, under section 611, with a 
                consumer reporting agency the accuracy or 
                completeness of any information in a consumer 
                report furnished by the agency.
  (b) Adverse Action Based on Information Obtained From Third 
Parties Other Than Consumer Reporting Agencies.--
          (1) In general.--Whenever credit for personal, 
        family, or household purposes involving a consumer is 
        denied or the charge for such credit is increased 
        either wholly or partly because of information obtained 
        from a person other than a consumer reporting agency 
        bearing upon the consumer's credit worthiness, credit 
        standing, credit capacity, character, general 
        reputation, personal characteristics, or mode of 
        living, the user of such information shall, within a 
        reasonable period of time, upon the consumer's written 
        request for the reasons for such adverse action 
        received within sixty days after learning of such 
        adverse action, disclose the nature of the information 
        to the consumer. The user of such information shall 
        clearly and accurately disclose to the consumer his 
        right to make such written request at the time such 
        adverse action is communicated to the consumer.
          (2) Duties of person taking certain actions based on 
        information provided by affiliate.--
                  (A) Duties, generally.--If a person takes an 
                action described in subparagraph (B) with 
                respect to a consumer, based in whole or in 
                part on information described in subparagraph 
                (C), the person shall--
                          (i) notify the consumer of the 
                        action, including a statement that the 
                        consumer may obtain the information in 
                        accordance with clause (ii); and
                          (ii) upon a written request from the 
                        consumer received within 60 days after 
                        transmittal of the notice required by 
                        clause (i), disclose to the consumer 
                        the nature of the information upon 
                        which the action is based by not later 
                        than 30 days after receipt of the 
                        request.
                  (B) Action described.--An action referred to 
                in subparagraph (A) is an adverse action 
                described in section 603(k)(1)(A), taken in 
                connection with a transaction initiated by the 
                consumer, or any adverse action described in 
                clause (i) or (ii) of section 603(k)(1)(B).
                  (C) Information described.--Information 
                referred to in subparagraph (A)--
                          (i) except as provided in clause 
                        (ii), is information that--
                                  (I) is furnished to the 
                                person taking the action by a 
                                person related by common 
                                ownership or affiliated by 
                                common corporate control to the 
                                person taking the action; and
                                  (II) bears on the credit 
                                worthiness, credit standing, 
                                credit capacity, character, 
                                general reputation, personal 
                                characteristics, or mode of 
                                living of the consumer; and
                          (ii) does not include--
                                  (I) information solely as to 
                                transactions or experiences 
                                between the consumer and the 
                                person furnishing the 
                                information; or
                                  (II) information in a 
                                consumer report.
  (c) No person shall be held liable for any violation of this 
section if he shows by a preponderance of the evidence that at 
the time of the alleged violation he maintained reasonable 
procedures to assure compliance with the provisions of this 
section.
  (d) Duties of Users Making Written Credit or Insurance 
Solicitations on the Basis of Information Contained in Consumer 
Files.--
          (1) In general.--Any person who uses a consumer 
        report on any consumer in connection with any credit or 
        insurance transaction that is not initiated by the 
        consumer, that is provided to that person under section 
        604(c)(1)(B), shall provide with each written 
        solicitation made to the consumer regarding the 
        transaction a clear and conspicuous statement that--
                  (A) information contained in the consumer's 
                consumer report was used in connection with the 
                transaction;
                  (B) the consumer received the offer of credit 
                or insurance because the consumer satisfied the 
                criteria for credit worthiness or insurability 
                under which the consumer was selected for the 
                offer;
                  (C) if applicable, the credit or insurance 
                may not be extended if, after the consumer 
                responds to the offer, the consumer does not 
                meet the criteria used to select the consumer 
                for the offer or any applicable criteria 
                bearing on credit worthiness or insurability or 
                does not furnish any required collateral;
                  (D) the consumer has a right to prohibit 
                information contained in the consumer's file 
                with any consumer reporting agency from being 
                used in connection with any credit or insurance 
                transaction that is not initiated by the 
                consumer; and
                  (E) the consumer may exercise the right 
                referred to in subparagraph (D) by notifying a 
                notification system established under section 
                604(e).
          (2) Disclosure of address and telephone number; 
        format.--A statement under paragraph (1) shall--
                  (A) include the address and toll-free 
                telephone number of the appropriate 
                notification system established under section 
                604(e); and
                  (B) be presented in such format and in such 
                type size and manner as to be simple and easy 
                to understand, as established by the Bureau, by 
                rule, in consultation with the Federal Trade 
                Commission, the Federal banking agencies, and 
                the National Credit Union Administration.
          (3) Maintaining criteria on file.--A person who makes 
        an offer of credit or insurance to a consumer under a 
        credit or insurance transaction described in paragraph 
        (1) shall maintain on file the criteria used to select 
        the consumer to receive the offer, all criteria bearing 
        on credit worthiness or insurability, as applicable, 
        that are the basis for determining whether or not to 
        extend credit or insurance pursuant to the offer, and 
        any requirement for the furnishing of collateral as a 
        condition of the extension of credit or insurance, 
        until the expiration of the 3-year period beginning on 
        the date on which the offer is made to the consumer.
          (4) Authority of federal agencies regarding unfair or 
        deceptive acts or practices not affected.--This section 
        is not intended to affect the authority of any Federal 
        or State agency to enforce a prohibition against unfair 
        or deceptive acts or practices, including the making of 
        false or misleading statements in connection with a 
        credit or insurance transaction that is not initiated 
        by the consumer.
  (e) Red Flag Guidelines and Regulations Required.--
          (1) Guidelines.--The Federal banking agencies, the 
        National Credit Union Administration, the Federal Trade 
        Commission, the Commodity Futures Trading Commission, 
        and the Securities and Exchange Commission shall 
        jointly, with respect to the entities that are subject 
        to their respective enforcement authority under section 
        621--
                  (A) establish and maintain guidelines for use 
                by each financial institution and each creditor 
                regarding identity theft with respect to 
                account holders at, or customers of, such 
                entities, and update such guidelines as often 
                as necessary;
                  (B) prescribe regulations requiring each 
                financial institution and each creditor to 
                establish reasonable policies and procedures 
                for implementing the guidelines established 
                pursuant to subparagraph (A), to identify 
                possible risks to account holders or customers 
                or to the safety and soundness of the 
                institution or customers; and
                  (C) prescribe regulations applicable to card 
                issuers to ensure that, if a card issuer 
                receives notification of a change of address 
                for an existing account, and within a short 
                period of time (during at least the first 30 
                days after such notification is received) 
                receives a request for an additional or 
                replacement card for the same account, the card 
                issuer may not issue the additional or 
                replacement card, unless the card issuer, in 
                accordance with reasonable policies and 
                procedures--
                          (i) notifies the cardholder of the 
                        request at the former address of the 
                        cardholder and provides to the 
                        cardholder a means of promptly 
                        reporting incorrect address changes;
                          (ii) notifies the cardholder of the 
                        request by such other means of 
                        communication as the cardholder and the 
                        card issuer previously agreed to; or
                          (iii) uses other means of assessing 
                        the validity of the change of address, 
                        in accordance with reasonable policies 
                        and procedures established by the card 
                        issuer in accordance with the 
                        regulations prescribed under 
                        subparagraph (B).
          (2) Criteria.--
                  (A) In general.--In developing the guidelines 
                required by paragraph (1)(A), the agencies 
                described in paragraph (1) shall identify 
                patterns, practices, and specific forms of 
                activity that indicate the possible existence 
                of identity theft.
                  (B) Inactive accounts.--In developing the 
                guidelines required by paragraph (1)(A), the 
                agencies described in paragraph (1) shall 
                consider including reasonable guidelines 
                providing that when a transaction occurs with 
                respect to a credit or deposit account that has 
                been inactive for more than 2 years, the 
                creditor or financial institution shall follow 
                reasonable policies and procedures that provide 
                for notice to be given to a consumer in a 
                manner reasonably designed to reduce the 
                likelihood of identity theft with respect to 
                such account.
          (3) Consistency with verification requirements.--
        Guidelines established pursuant to paragraph (1) shall 
        not be inconsistent with the policies and procedures 
        required under section 5318(l) of title 31, United 
        States Code.
          (4) Definitions.--As used in this subsection, the 
        term ``creditor''--
                  (A) means a creditor, as defined in section 
                702 of the Equal Credit Opportunity Act (15 
                U.S.C. 1691a), that regularly and in the 
                ordinary course of business--
                          (i) obtains or uses consumer reports, 
                        directly or indirectly, in connection 
                        with a credit transaction;
                          (ii) furnishes information to 
                        consumer reporting agencies, as 
                        described in section 623, in connection 
                        with a credit transaction; or
                          (iii) advances funds to or on behalf 
                        of a person, based on an obligation of 
                        the person to repay the funds or 
                        repayable from specific property 
                        pledged by or on behalf of the person;
                  (B) does not include a creditor described in 
                subparagraph (A)(iii) that advances funds on 
                behalf of a person for expenses incidental to a 
                service provided by the creditor to that 
                person; and
                  (C) includes any other type of creditor, as 
                defined in that section 702, as the agency 
                described in paragraph (1) having authority 
                over that creditor may determine appropriate by 
                rule promulgated by that agency, based on a 
                determination that such creditor offers or 
                maintains accounts that are subject to a 
                reasonably foreseeable risk of identity theft.
  (f) Prohibition on Sale or Transfer of Debt Caused by 
Identity Theft.--
          (1) In general.--No person shall sell, transfer for 
        consideration, or place for collection a debt that such 
        person has been notified under section 605B has 
        resulted from identity theft.
          (2) Applicability.--The prohibitions of this 
        subsection shall apply to all persons collecting a debt 
        described in paragraph (1) after the date of a 
        notification under paragraph (1).
          (3) Rule of construction.--Nothing in this subsection 
        shall be construed to prohibit--
                  (A) the repurchase of a debt in any case in 
                which the assignee of the debt requires such 
                repurchase because the debt has resulted from 
                identity theft;
                  (B) the securitization of a debt or the 
                pledging of a portfolio of debt as collateral 
                in connection with a borrowing; or
                  (C) the transfer of debt as a result of a 
                merger, acquisition, purchase and assumption 
                transaction, or transfer of substantially all 
                of the assets of an entity.
  (g) Debt Collector Communications Concerning Identity 
Theft.--If a person acting as a debt collector (as that term is 
defined in title VIII) on behalf of a third party that is a 
creditor or other user of a consumer report is notified that 
any information relating to a debt that the person is 
attempting to collect may be fraudulent or may be the result of 
identity theft, that person shall--
          (1) notify the third party that the information may 
        be fraudulent or may be the result of identity theft; 
        and
          (2) upon request of the consumer to whom the debt 
        purportedly relates, provide to the consumer all 
        information to which the consumer would otherwise be 
        entitled if the consumer were not a victim of identity 
        theft, but wished to dispute the debt under provisions 
        of law applicable to that person.
  (h) Duties of Users in Certain Credit Transactions.--
          (1) In general.--Subject to rules prescribed as 
        provided in paragraph (6), if any person uses a 
        consumer report in connection with an application for, 
        or a grant, extension, or other provision of, credit on 
        material terms that are materially less favorable than 
        the most favorable terms available to a substantial 
        proportion of consumers from or through that person, 
        based in whole or in part on a consumer report, the 
        person shall provide an oral, written, or electronic 
        notice to the consumer in the form and manner required 
        by regulations prescribed in accordance with this 
        subsection.
          (2) Timing.--The notice required under paragraph (1) 
        may be provided at the time of an application for, or a 
        grant, extension, or other provision of, credit or the 
        time of communication of an approval of an application 
        for, or grant, extension, or other provision of, 
        credit, except as provided in the regulations 
        prescribed under paragraph (6).
          (3) Exceptions.--No notice shall be required from a 
        person under this subsection if--
                  (A) the consumer applied for specific 
                material terms and was granted those terms, 
                unless those terms were initially specified by 
                the person after the transaction was initiated 
                by the consumer and after the person obtained a 
                consumer report; or
                  (B) the person has provided or will provide a 
                notice to the consumer under subsection (a) in 
                connection with the transaction.
          (4) Other notice not sufficient.--A person that is 
        required to provide a notice under subsection (a) 
        cannot meet that requirement by providing a notice 
        under this subsection.
          (5) Content and delivery of notice.--A notice under 
        this subsection shall, at a minimum--
                  (A) include a statement informing the 
                consumer that the terms offered to the consumer 
                are set based on information from a consumer 
                report;
                  (B) identify the consumer reporting agency 
                furnishing the report;
                  (C) include a statement informing the 
                consumer that the consumer may obtain a copy of 
                a consumer report from that consumer reporting 
                agency without charge;
                  (D) include the contact information specified 
                by that consumer reporting agency for obtaining 
                such consumer reports (including a toll-free 
                telephone number established by the agency in 
                the case of a consumer reporting agency 
                described in section 603(p)); and
                  (E) include a statement informing the 
                consumer of--
                          (i) a numerical credit score [as 
                        defined in section 609(f)(2)(A)], used 
                        by such person in making the credit 
                        decision described in paragraph (1) 
                        based in whole or in part on any 
                        information in a consumer report; and
                          (ii) the information [set forth in 
                        subparagraphs (B) through (E) of 
                        section 609(f)(1)] with respect to a 
                        credit score described in section 
                        609(f)(2), if available.
          (6) Rulemaking.--
                  (A) Rules required.--The Bureau shall 
                prescribe rules to carry out this subsection.
                  (B) Content.--Rules required by subparagraph 
                (A) shall address, but are not limited to--
                          (i) the form, content, time, and 
                        manner of delivery of any notice under 
                        this subsection;
                          (ii) clarification of the meaning of 
                        terms used in this subsection, 
                        including what credit terms are 
                        material, and when credit terms are 
                        materially less favorable;
                          (iii) exceptions to the notice 
                        requirement under this subsection for 
                        classes of persons or transactions 
                        regarding which the agencies determine 
                        that notice would not significantly 
                        benefit consumers;
                          (iv) a model notice that may be used 
                        to comply with this subsection; and
                          (v) the timing of the notice required 
                        under paragraph (1), including the 
                        circumstances under which the notice 
                        must be provided after the terms 
                        offered to the consumer were set based 
                        on information from a consumer report.
          (7) Compliance.--A person shall not be liable for 
        failure to perform the duties required by this 
        [section] subsection if, at the time of the failure, 
        the person maintained reasonable policies and 
        procedures to comply with this section.
          (8) Enforcement.--
                  (A) No civil actions.--Sections 616 and 617 
                shall not apply to any failure by any person to 
                comply with this section.
                  (B) Administrative enforcement.--This section 
                shall be enforced exclusively under section 621 
                by the Federal agencies and officials 
                identified in that section.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    Committee Republicans believe H.R. 3618, the Free Credit 
Scores for Consumers Act, would implement a labor-intensive 
reporting and disclosure process that would have the reverse 
effect of preventing consumers from accessing valuable 
information. In short, this legislation seeks to impose federal 
mandates on the private sector without any evidence or analysis 
of demonstrated need or potential intended and unintended 
consequences of such mandates. The debate surrounding H.R. 3618 
also fails to consider existing options available to consumers.
    Committee Republicans share the goal of providing consumers 
with the tools needed for financial success. However, and 
despite the name and messaging surrounding the bill, H.R. 3618 
goes far beyond providing a free credit score to consumers. 
H.R. 3618 creates a costly and complex process by which 
furnishers, including financial institutions, will be required 
to provide consumers with overwhelming amounts of information 
on a regular basis, including any previous credit score in the 
consumer's file. However, there is nothing to suggest this 
information has been requested by consumers or at a minimum 
would be helpful to consumers. Furthermore, Committee 
Republicans remain concerned that too much information could 
prove to be unhelpful to consumers. Finally, H.R. 3618 could be 
interpreted to require that a furnisher erase previous consumer 
credit scores within a two-year period. Deleting such 
historical data could be detrimental to many consumers and 
negatively impact underwriting and access to credit.
    While credit reporting agencies are statutorily required to 
provide an annual free credit report to consumers, the credit 
report does not necessarily include a FICO score. The FICO 
score is the most prevalent credit score used in loan 
underwriting. Notwithstanding its inclusion in a credit report, 
it is widely available to many consumers through a wide variety 
of financial firms including banks, credit unions, and credit 
card issuers.
    Committee Republicans remain committed to ensuring 
consumers have access to credit scores and strengthening 
consumers' financial education. Congressman Emmer offered an 
amendment that would have required disclosure of credit and 
educational credit scores but removed the cumbersome 
requirements. However, Congressman Emmer's amendment was 
rejected by a party line vote of 26-32. Without this amendment, 
Committee Republicans do not believe this legislation will 
provide consumers with access to important information and will 
only add another burden on the private sector, unfortunately 
increasing the cost of credit for those who can least afford 
it.
                                   David Kustoff.
                                   Barry Loudermilk.
                                   Lance Gooden.
                                   William R. Timmons, IV.
                                   Tom Emmer.
                                   Scott R. Tipton.
                                   Ted Budd.
                                   Peter T. King.
                                   Roger Williams.
                                   Trey Hollingsworth.
                                   J. French Hill.
                                   John W. Rose.
                                   Warren Davidson.
                                   Anthony Gonzalez.
                                   Denver Riggleman.
                                   Andy Barr.
                                   Blaine Luetkemeyer.
                                   Bill Huizenga.
                                   Steve Stivers.
                                   Alexander X. Mooney.
                                   Bill Posey.
                                   Frank D. Lucas.
                                   Ann Wagner.
                                   Lee M. Zeldin.
                                   Patrick T. McHenry.
                                   Bryan Steil.