[House Report 116-362]
[From the U.S. Government Publishing Office]


116th Congress }                                             { Report
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                             { 116-362

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



 
    RESTORING UNFAIRLY IMPAIRED CREDIT AND PROTECTING CONSUMERS ACT

                                _______
                                

 December 23, 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. 3622]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 3622) to amend the Fair Credit Reporting act to 
restore the impaired credit of victims of predatory activities 
and unfair consumer reporting practices, to expand access to 
tools to protect vulnerable consumers from identity theft, 
fraud, or a related crime, and protect victims from further 
harm, 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..............................................    18
Background and Need for Legislation..............................    18
Section-by-Section Analysis......................................    20
Hearings.........................................................    24
Committee Consideration..........................................    24
Committee Votes..................................................    24
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    27
Statement of Performance Goals and Objectives....................    27
New Budget Authority and CBO Cost Estimate.......................    27
Committee Cost Estimate..........................................    31
Unfunded Mandate Statement.......................................    31
Advisory Committee...............................................    31
Application of Law to the Legislative Branch.....................    31
Earmark Statement................................................    31
Duplication of Federal Programs..................................    32
Changes to Existing Law..........................................    32

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Restoring Unfairly 
Impaired Credit and Protecting Consumers Act''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Effective date.
Sec. 4. General Bureau rulemaking.

    TITLE I--RESTORING THE IMPAIRED CREDIT OF VICTIMS OF PREDATORY 
           ACTIVITIES AND UNFAIR CONSUMER REPORTING PRACTICES

Sec. 101. Shortens the time period that most adverse credit information 
stays on consumer reports.
Sec. 102. Mandates the expedited removal of fully paid or settled debt 
from consumer reports.
Sec. 103. Imposes restrictions on the appearance of medical collections 
on consumer reports and requires the expedited removal of fully paid or 
settled medical collections from consumer reports.
Sec. 104. Provides credit restoration for victims of predatory mortgage 
lending and servicing.
Sec. 105. Provides credit relief for private education loans borrowers 
who were defrauded or mislead by proprietary education institution or 
career education programs.
Sec. 106. Establishes right for victims of financial abuse to have 
adverse information associated with an abuser's fraudulent activity 
removed from their consumer reports.
Sec. 107. Prohibits treatment of credit restoration or rehabilitation 
as adverse information.

  TITLE II--EXPANDING ACCESS TO TOOLS TO PROTECT VULNERABLE CONSUMERS 
  FROM IDENTITY THEFT, FRAUD, OR A RELATED CRIME, AND PROTECT VICTIMS 
                           FROM FURTHER HARM

Sec. 201. Identity theft report definition.
Sec. 202. Amendment to protection for files and credit records of 
protected consumers.
Sec. 203. Enhances fraud alert protections.
Sec. 204. Amendment to security freezes for consumer reports.
Sec. 205. Clarification of information to be included with agency 
disclosures.
Sec. 206. Provides access to fraud records for victims.
Sec. 207. Required Bureau to set procedures for reporting identity 
theft, fraud, and other related crime.
Sec. 208. Establishes the right to free credit monitoring and identity 
theft protection services for certain consumers.
Sec. 209. Ensures removal of inquiries resulting from identity theft, 
fraud, or other related crime from consumer reports.

                        TITLE III--MISCELLANEOUS

Sec. 301. Definitions.
Sec. 302. Technical correction related to risk-based pricing notices.
Sec. 303. FCRA findings and purpose; voids certain contracts not in the 
public interest.

SEC. 2. FINDINGS.

  Congress finds the following:
          (1) General findings.--
                  (A) Consumer reporting agencies (``CRAs'') are 
                companies that collect, compile, and provide 
                information about consumers in the form of consumer 
                reports for certain permissible statutory purposes 
                under the Fair Credit Reporting Act (15 U.S.C. 1681 et 
                seq.) (``FCRA''). The three largest CRAs in this 
                country are Equifax, TransUnion, and Experian. These 
                CRAs are referred to as nationwide CRAs and the reports 
                that they prepare are commonly referred to as credit 
                reports. Furnishers, such as creditors, lenders, and 
                debt collection agencies, voluntarily submit 
                information to CRAs about their accounts such as the 
                total amount for each loan or credit limit for each 
                credit card and the consumer's payment history on these 
                products. Reports also include identifying information 
                about a consumer, such as their birthdate, previous 
                mailing addresses, and current and previous employers.
                  (B) In a December 2012 paper, ``Key Dimensions and 
                Processes in the U.S. Credit Reporting System: A review 
                for how the nation's largest credit bureaus manage 
                consumer data'', the Bureau of Consumer Financial 
                Protection (``Consumer Bureau'') noted that the three 
                nationwide CRAs maintain credit files on approximately 
                200 million adults and receive information from about 
                10,000 furnishers. On a monthly basis, these furnishers 
                provide information on over 1.3 billion consumer credit 
                accounts or other trade lines.
                  (C) The 10 largest institutions furnishing credit 
                information to each of the nationwide CRAs account for 
                more than half of all accounts reflected in consumers' 
                credit files.
                  (D) Consumer reports play an increasingly important 
                role in the lives of American consumers. Most 
                creditors, for example, review these reports to make 
                decisions about whether to extend credit to consumers 
                and what terms and conditions to offer them. As such, 
                information contained in these reports affects whether 
                a person is able to get a private education loan to pay 
                for college costs, to secure a mortgage loan to buy a 
                home, or to obtain a credit card, as well as the terms 
                and conditions under which consumer credit products or 
                services are offered to them.
                  (E) Credit reports are also increasingly used for 
                many noncredit decisions, including by landlords to 
                determine whether to rent an apartment to a prospective 
                tenant and by employers to decide whether to hire 
                potential job applicants or to offer a promotion to 
                existing employees.
                  (F) CRAs have a statutory obligation to verify 
                independently the accuracy and completeness of 
                information included on the reports that they provide.
                  (G) The nationwide CRAs have failed to establish and 
                follow reasonable procedures, as required by existing 
                law, to establish the maximum level of accuracy of 
                information contained on consumer reports. Given the 
                repeated failures of these CRAs to comply with accuracy 
                requirements on their own, legislation is intended to 
                provide them with detailed guidance improving the 
                accuracy and completeness of information contained in 
                consumer reports, including procedures, policies, and 
                practices that these CRAs should already be following 
                to ensure full compliance with their existing 
                obligations.
                  (H) The presence of inaccurate or incomplete 
                information on these reports can result in substantial 
                financial and emotional harm to consumers. Credit 
                reporting errors can lead to the loss of a new 
                employment opportunity or a denial of a promotion in an 
                existing job, stop someone from being able to access 
                credit on favorable terms, prevent a person from 
                obtaining rental housing, or even trigger mental 
                distress.
                  (I) Current industry practices impose an unfair 
                burden of proof on consumers trying to fix errors on 
                their reports.
                  (J) Consumer reports containing inaccurate or 
                incomplete credit information also undermine the 
                ability of creditors and lenders to effectively and 
                accurately underwrite and price credit.
                  (K) Recognizing that credit reporting affects the 
                lives of almost all consumers in this country and that 
                the consequences of errors on a consumer report can be 
                catastrophic for a consumer, the Consumer Bureau began 
                accepting consumer complaints about credit reporting in 
                October 2012.
                  (L) As of February 2017, the Consumer Bureau has 
                handled approximately 185,717 credit reporting 
                complaints, making credit reporting consistently the 
                third most-complained-about subject matter on which the 
                Consumer Bureau accepts consumer complaints.
                  (M) In the ``Monthly Complaint Report Volume 20'', 
                released in February 2017, the Consumer Bureau noted 
                that 76 percent of credit reporting complaints involved 
                incorrect information on reports, with consumers 
                frequently expressing their frustrations about the 
                burdensome and time-consuming process to disputing 
                items.
                  (N) Other common types of credit reporting complaints 
                submitted to the Consumer Bureau related to the 
                improper use of a report, trouble obtaining a report or 
                credit score, CRAs' investigations, and credit 
                monitoring or identity protection.
                  (O) In the summer 2015 ``Supervisory Highlights'', 
                the Consumer Bureau noted that one or more of the 
                largest CRAs failed to adequately oversee furnishers to 
                ensure that they were adhering to the CRA's vetting 
                policies and to establish proper procedures to verify 
                public record information.
                  (P) According to the fall 2016 ``Supervisory 
                Highlights'', Consumer Bureau examiners determined that 
                one or more debt collectors never investigated indirect 
                disputes that lacked detail or were not accompanied by 
                attachments with relevant information from the 
                consumer. Examiners also found that notifications sent 
                to consumers about disputes considered frivolous failed 
                to identify for the consumers the type of material that 
                they could provide in order for the debt collector to 
                complete the investigation of the disputed item.
                  (Q) A February 2014 Consumer Bureau report titled 
                ``Credit Reporting Complaint Snapshot'' found that 
                consumers are confused about the extent to which the 
                nationwide CRAs are required to provide them with 
                validation and documentation of a debt that appears on 
                their credit report.
                  (R) As evidence that the current system lacks 
                sufficient market incentives for CRAs to develop more 
                robust procedures to increase the accuracy and 
                completeness of information on credit reports, 
                litigation discovery documented by the National 
                Consumer Law Center (``NCLC''), as part of a January 
                2009 report titled, ``Automated Injustice: How a 
                Mechanized Dispute System Frustrates Consumers Seeking 
                to Fix Errors in Their Credit Reports'', showed that at 
                least two of the three largest CRAs use quota systems 
                to force employees to process disputes hastily and 
                without the opportunity for conducting meaningful 
                investigations. At least one nationwide CRA only 
                allowed dispute resolution staff five minutes to handle 
                a consumer's call. Furthermore, these CRAs were found 
                to have awarded bonuses for meeting quotas and punished 
                those who didn't meet production numbers with 
                probation.
                  (S) Unlike most other business relationships, where 
                consumers can register their satisfaction or 
                unhappiness with a particular credit product or service 
                simply by taking their business elsewhere, consumers 
                have no say in whether their information is included in 
                the CRAs databases and limited legal remedies to hold 
                the CRAs accountable for inaccuracies or poor service.
                  (T) Accordingly, despite the existing statutory 
                mandate for CRAs to follow reasonable procedures to 
                assure the maximum possible accuracy of the information 
                whenever they prepare consumer reports, numerous 
                studies, the high volume of consumer complaints 
                submitted to the Consumer Bureau about incorrect 
                information on consumer reports, and supervisory 
                activities by the Consumer Bureau demonstrate that CRAs 
                continue to skirt their obligations under the law.
          (2) Private education loans.--
                  (A) The Consumer Bureau's October 2014 report titled 
                ``Annual Report of the CFPB Student Loan Ombudsman'' 
                noted many private education loan borrowers, who sought 
                to negotiate a modified repayment plan when they were 
                experiencing a period of financial distress, were 
                unable to get assistance from their loan holders, which 
                often resulting in them defaulting on their loans. This 
                pattern resembles the difficulty that a significant 
                number of mortgage loan borrowers experienced when they 
                sought to take responsible steps to work with their 
                mortgage loan servicer to avoid foreclosure during the 
                Great Recession.
                  (B) Although private student loan holders may allow a 
                borrower to postpone payments while enrolled in school 
                full-time, many limit this option to a certain time 
                period, usually 48 to 66 months. This limited time 
                period may not be sufficient for those who need 
                additional time to obtain their degree or who want to 
                continue their education by pursing a graduate or 
                professional degree. The Consumer Bureau found that 
                borrowers who were unable to make payments often 
                defaulted or had their accounts sent to collections 
                before they were even able to graduate.
          (3) Deceptive practices at certain proprietary education 
        institutions and career education programs.--
                  (A) NCLC cited the proliferation of law enforcement 
                actions against many for-profit schools in its June 
                2014 report, titled ``Ensuring Educational Integrity: 
                10 Steps to Improve State Oversight of For-profit 
                Schools'', to demonstrate the pervasive problem in this 
                sector of targeting low-income students with deceptive 
                high-pressure sales techniques involving inflated job 
                placement rates and misleading data on graduate wages, 
                and false representations about the transferability of 
                credits and the employability of graduates in 
                occupations that require licensure. Student loan 
                borrowers at these schools may be left with nothing but 
                worthless credentials and large debt. Those who default 
                on their student loans face years with damaged credit 
                that will adversely impact their ability to rent or buy 
                homes, purchase cars, and find employment.
                  (B) The closure and bankruptcy of Corinthian 
                Colleges, which was found to have deceived students by 
                steering them into high-interest student loans based on 
                misleading graduation rates and employment data, is a 
                good example of the problem. Even after its closure, 
                many Corinthian students remained saddled with student 
                loan debt, worthless degrees, and few prospects for 
                employment.
                  (C) Attending a two-year, for-profit college costs, 
                on average, four times as much as attending a community 
                college. Students at for-profit colleges represent only 
                about 11 percent of the total higher education 
                population but a startling 44 percent of all Federal 
                student loan defaults, according to the United States 
                Department of Education (``DOE'').
                  (D) According to NCLC, a disproportionate number of 
                for-profit students are low-income and people of color. 
                These schools target veterans, working parents, first-
                generation students, and non-English speaking students, 
                who may be more likely than their public or private 
                nonprofit school counterparts to drop out, incur 
                enormous student debt, and default on this debt. In the 
                2011-2012 school year, 28 percent of African Americans 
                and 15 percent of Latinos attending four-year 
                institutions were enrolled in a for-profit school, 
                compared to 10 percent of Whites.
                  (E) As highlighted in a press release titled ``Obama 
                Administration Announces Final Rules to Protect 
                Students from Poor-Performing Career College 
                Programs'', that was issued by the DOE on October 30, 
                2014, ``[t]oo often, students at career colleges--
                including thousands of veterans--are charged excessive 
                costs, but don't get the education they paid for. 
                Instead, students in such programs are provided with 
                poor quality training, often for low-wage jobs or in 
                occupations where there are simply no job 
                opportunities. They find themselves with large amounts 
                of debt and, too often, end up in default. In many 
                cases, students are drawn into these programs with 
                confusing or misleading information.''.
          (4) Medical debt.--
                  (A) Research by the Consumer Bureau has found that 
                the inclusion of medical collections on consumer 
                reports has unfairly reduced consumers' credit scores.
                  (B) The Consumer Bureau's review of 5 million 
                anonymized credit files from September 2011 to 
                September 2013, for example, found that credit scores 
                may underestimate a person's creditworthiness by up to 
                10 points for those who owe medical debt, and may 
                underestimate a person's creditworthiness by up to 22 
                points after the medical debt has been paid. For 
                consumers with lower credit scores, especially those on 
                the brink of what is considered subprime, a 10 to 22 
                point decrease in their credit scores can have a 
                significant impact on their lives, including by 
                affecting whether they are able to qualify for credit 
                and, if so, the terms and conditions under which it is 
                extended to them.
                  (C) The Consumer Bureau found that half of all 
                collections trade lines that appear on consumer reports 
                are related to medical bills claimed to be owed to 
                hospitals and other medical providers. These trade 
                lines affect the reports of nearly 1/5 of all consumers 
                in the credit reporting system.
                  (D) The Consumer Bureau has found that there are no 
                objective or enforceable standards that determine when 
                a debt can or should be reported as a collection trade 
                line. Because debt buyers and collectors determine 
                whether, when, and for how long to report a collection 
                account, there is only a limited relationship between 
                the time period reported, the severity of a 
                delinquency, and when or whether a collection trade 
                line appears on a consumer's credit report.
                  (E) Medical bills can be complex and confusing for 
                many consumers, which results in consumers' uncertainty 
                about what they owe, to whom, when, or for what, that 
                may cause some people, who ordinarily pay their bills 
                on time, to delay or withhold payments on their medical 
                debts. This uncertainty can also result in medical 
                collections appearing on consumer reports. In a 
                December 2014 report titled ``Consumer Credit Reports: 
                A Study of Medical and Non-Medical Collections'', the 
                Consumer Bureau found that a large portion of consumers 
                with medical collections show no other evidence of 
                financial distress and are consumers who ordinarily pay 
                their other financial obligations on time. Unlike with 
                most credit products or services, such as credit cards, 
                installment loans, utilities, or wireless or cable 
                services that have contractual account disclosures 
                describing the terms and conditions of use, most 
                consumers are not told what their out-of-pocket medical 
                costs will be in advance. Consumers needing urgent or 
                emergency care rarely know, or are provided, the cost 
                of a medical treatment or procedure before the service 
                is rendered.
                  (F) The Consumer Bureau concluded that the presence 
                of medical collections is less predictive of future 
                defaults or serious delinquencies than the presence of 
                a nonmedical collection in a study titled ``Data Point: 
                Medical Debt and Credit Scores'', issued in May 2014.
                  (G) FICO's latest credit scoring model, ``FICO 9'', 
                changes the treatment of paid collections to disregard 
                any collection matters that the consumer has paid in 
                full. FICO 9, however, is not yet widely used by 
                lenders.
                  (H) VantageScore's latest credit scoring model, 
                ``VantageScore 4.0'', will be available in the fall of 
                2017. This model will penalize medical collections less 
                than non-medical ones.
                  (I) The three nationwide CRAs entered into a 
                settlement agreement with the New York State attorney 
                general in 2015 to address deficiencies in their 
                dispute resolution process and enhance the accuracy of 
                items on reports. These policy changes will be 
                implemented in a three-phrased rollout, culminating by 
                June 2018. Subsequently, these CRAs entered into a 
                cooperative agreement with 31 State Attorneys General, 
                which was the basis of the creation of the National 
                Consumer Assistance Plan (``NCAP'') to change some of 
                their business practices.
                  (J) While the CRAs appear to be voluntarily adopting 
                policy changes on a nationwide basis, they are not 
                obligated to do so for consumers who reside in States 
                that are not party to any of the consent orders.
                  (K) As a result of the settlement agreements, the 
                three nationwide CRAs will set a 180-day waiting period 
                before including medical collections on a report and 
                will remove a medical collection from a report once it 
                is paid by an insurance company. While this change will 
                benefit many, once a medical collection appears on a 
                report, it will only be deleted or suppressed if it is 
                found to have been the insurance company's obligation 
                to pay and the insurer pays it. Given the research 
                showing there is little predictive value in medical 
                debt information, medical collections that are paid or 
                settled should quickly be removed from a report, 
                regardless of who pays or settles this debt.
          (5) Financial abuse by known persons.--
                  (A) Financial abuse and exploitation are frequently 
                associated with domestic violence. This type of abuse 
                may result in fraudulent charges to a credit card or 
                having fraudulent accounts created by the abuser in the 
                survivor's name. Financial abuse may also result in the 
                survivor's inability to make timely payments on their 
                valid obligations due to loss or changes in income that 
                can occur when their abuser steals from or coerces the 
                survivor to relinquish their paychecks or savings.
                  (B) By racking up substantial debts in the survivor's 
                name, abusers are able to exercise financial control 
                over their survivors to make it economically difficult 
                for the survivor, whose credit is often destroyed, to 
                escape the situation.
                  (C) Domestic abuse survivors with poor credit are 
                likely to face significant obstacles in establishing 
                financial independence from their abusers. This can be 
                due, in part, because consumer reports may be used when 
                a person attempts to obtain a checking account, 
                housing, insurance, utilities, employment, and even a 
                security clearance as required for certain jobs.
                  (D) Providing documentation of identity (``ID'') 
                theft in order to dispute information on one's consumer 
                report can be particularly challenging for those who 
                know their financial abuser.
                  (E) While it is easier for consumers who obtain a 
                police report to remove fraudulent information from 
                their consumer report and prevent it from reappearing 
                in the future, according to the Empire Justice Center, 
                safety and other noncredit concerns may impact the 
                capacity of a survivor of financial abuse committed by 
                a known person to turn to law enforcement to get a 
                police report.
                  (F) According to the Legal Aid Society in New York, 
                domestic abuse survivors, seeking to remove adverse 
                information stemming from financial abuse by contacting 
                their furnishers directly, are likely to face 
                skepticism about claims of ID theft perpetrated by a 
                partner because of an assumption that they are aware 
                of, and may have been complicit in, the activity which 
                the survivor alleges stems from financial abuse.
          (6) Deceptive and misleading marketing practices.--
                  (A) The Consumer Bureau's February 2015 report titled 
                ``Consumer Voices on Credit Reports and Scores'' found 
                that some consumers did not obtain a copy of their 
                consumer report due to concerns about security or of 
                being trapped into purchasing unwanted products like an 
                additional report or a credit monitoring service.
                  (B) In January 2017, the Consumer Bureau fined 
                TransUnion and Equifax for deceptively marketing credit 
                scores for purchase by consumers as the same credit 
                scores typically used by lenders to determine 
                creditworthiness and for luring consumers into costly 
                subscription services that were advertised as ``free'' 
                or ``$1'' that automatically charged recurring fees 
                unless cancelled by consumers. The Consumer Bureau also 
                found that Equifax was illegally advertising its 
                products on webpages that consumers accessed through 
                AnnualCreditReport.com before consumers obtained their 
                free disclosures. Because of these troubling practices, 
                TransUnion was ordered to pay $13.9 million in 
                restitution to harmed consumers and a civil penalty of 
                $3 million to the Consumer Bureau. Equifax was ordered 
                to pay more than $3.7 million to affected consumers as 
                well as a civil money penalty of $2.5 million to the 
                Consumer Bureau. As part of the consent orders, the 
                CRAs are also supposed to change the way that they sell 
                their products to consumers. The CRAs must also obtain 
                consumers' express consent before enrolling them into 
                subscription services as well as make it easer for 
                consumers to cancel these programs.
                  (C) The Consumer Bureau fined the other nationwide 
                CRA--Experian--in March 2017 for deceiving consumers 
                about the use of credit scores that it marketed and 
                sold to consumers as credit scores that were used by 
                lenders and for illegally advertising its products on 
                web pages that consumers accessed through 
                AnnualCreditReport.com before they obtained their free 
                annual disclosures. Experian was ordered to pay more 
                than $3.7 million in restitution to harmed consumers 
                and a civil monetary penalty of $2.5 million to the 
                Consumer Bureau.
                  (D) The Consumer Bureau's January and March 2017 
                consent orders with the three nationwide CRAs show that 
                these CRAs have enticed consumers into purchasing 
                products and services that they may not want or need, 
                in some instances by advertising products or services 
                ``free'' that automatically converted into an ongoing 
                subscription service at the regular price unless 
                cancelled by the consumer. Although these CRAs must now 
                change their deceptive marketing practices, codifying 
                these duties is an appropriate way to ensure that these 
                companies never revert back to such misleading tactics.
                  (E) Given the ubiquitous use of consumer reports in 
                consumers' lives and the fact that consumers' 
                participation in the credit reporting system is 
                involuntary, CRAs should also prioritize providing 
                consumers with the effective means to safeguard their 
                personal and financial information and improve their 
                credit standing, rather than seeking to exploit 
                consumers' concerns and confusion about credit 
                reporting and scoring, to boost their companies' 
                profits.
                  (F) Vulnerable consumers, who have legitimate 
                concerns about the security of their personal and 
                financial information, deserve clear, accurate, and 
                transparent information about the credit reporting 
                tools that may be available to them, such as fraud 
                alerts and freezes.
          (7) Protections for consumers' credit information.--
                  (A) Despite heightened awareness, incidents of ID 
                theft continue to rise. In February 2015, the FTC 
                reported that ID theft was the top consumer complaint 
                that it received for the 15th consecutive year. As 
                these incidents increase, consumers experience 
                significant financial loss and emotional distress from 
                the inability to safeguard effectively and 
                inexpensively their credit information from bad actors.
                  (B) According to a Carnegie Mellon study, children 
                are 50 times more likely than adults to have their 
                identities stolen. Child identities are valuable to 
                thieves because most children do not have existing 
                files, and their parents may not notice fraudulent 
                activity until their child applies for a student loan, 
                a job, or a credit card. As a result, the fraudulent 
                activity of the bad actors may go undetected for years.
                  (C) Despite the increasing incidents of children's ID 
                theft, parents who want to proactively prevent their 
                children from having their identity stolen, may not be 
                able to do so. Only one of the three nationwide CRAs 
                currently allows parents from any State to set up a 
                freeze for a minor child. At the other two nationwide 
                CRAs, parents can only obtain a freeze after a child 
                has become an ID theft victim because, it is only at 
                this point, that these CRAs have an existing credit 
                file for the child. While many States have enacted laws 
                to address this problem, there is no existing Federal 
                law.
                  (D) According to Javelin Strategy & Research's 2015 
                Identity Fraud study, $16 billion was stolen by 
                fraudsters from 12.7 million American consumers in 
                2014. Similarly, the United States Department of 
                Justice found an estimated 7 percent of all residents 
                age 16 or older (about 17.6 million persons) in this 
                country were victims of one or more incidents of ID 
                theft in 2014, and the number of elderly victims age 65 
                or older (about 86 percent) increased from 2.1 million 
                in 2012 to 2.6 million in 2014.
                  (E) Consumers frequently express concern about the 
                security of their financial information. According to a 
                2015 MasterCard survey, a majority of consumers (77 
                percent) have anxiety about the possibility that their 
                financial information and Social Security numbers may 
                be stolen or compromised, with about 55 percent of 
                consumers indicating that they would rather have naked 
                pictures of themselves leaked online than have their 
                financial information stolen.
                  (F) That survey also revealed that consumers' fears 
                about the online security of their financial 
                information even outweighed consumers' worries about 
                other physical security dangers such as having their 
                houses robbed (59 percent) or being pickpocketed (46 
                percent).
                  (G) According to Consumer Reports, roughly 50 million 
                American consumers spent about $3.5 billion in 2010 to 
                purchase products aimed at protecting their identity, 
                with the annual cost of these services ranging from 
                $120 to $300. As risks to consumers' personal and 
                financial information continue to grow, consumers need 
                additional protections to ensure that they have fair 
                and reasonable access to the full suite of ID theft and 
                fraud prevention measures that may be right for them.

SEC. 3. EFFECTIVE DATE.

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

SEC. 4. GENERAL BUREAU RULEMAKING.

  Except as otherwise provided, 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.

    TITLE I--RESTORING THE IMPAIRED CREDIT OF VICTIMS OF PREDATORY 
           ACTIVITIES AND UNFAIR CONSUMER REPORTING PRACTICES

SEC. 101. SHORTENS THE TIME PERIOD THAT MOST ADVERSE CREDIT INFORMATION 
                    STAYS ON CONSUMER REPORTS.

  (a) In General.--Section 605 of the Fair Credit Reporting Act (15 
U.S.C. 1681c) is amended--
          (1) in subsection (a)--
                  (A) by striking ``Except as authorized under 
                subsection (b), no'' and inserting ``No'';
                  (B) in paragraph (1), by striking ``10 years'' and 
                inserting ``7 years'';
                  (C) in paragraph (2), by striking ``Civil suits, 
                civil judgments, and records'' and inserting 
                ``Records'';
                  (D) in paragraph (3), by striking ``seven years'' and 
                inserting ``4 years'';
                  (E) in paragraph (4), by striking ``seven years'' and 
                inserting ``4 years, except as provided in paragraph 
                (8), (10), (11), (12), or (13), or as required by 
                section 605C, 605D, 605E, or 605F'';
                  (F) in paragraph (5)--
                          (i) by striking ``, other than records of 
                        convictions of crimes''; and
                          (ii) by striking ``seven years'' and 
                        inserting ``4 years, except as required by 
                        section 605C, 605D, 605E, or 605F''; and
                  (G) by adding at the end the following new 
                paragraphs:
          ``(9) Civil suits and civil judgments (except as provided in 
        paragraph (8)) that, from date of entry, antedate the report by 
        more than 4 years or until the governing statute of limitations 
        has expired, whichever is the longer period.
          ``(10) A civil suit or civil judgment--
                  ``(A) brought by a private education loan holder 
                that, from the date of successful completion of credit 
                restoration or rehabilitation in accordance with the 
                requirements of section 605D or 605E, antedates the 
                report by 45 calendar days; or
                  ``(B) brought by a lender with respect to a covered 
                residential mortgage loan that antedates the report by 
                45 calendar days.
          ``(11) Records of convictions of crimes which antedate the 
        report by more than 7 years.
          ``(12) Any other adverse item of information relating to the 
        collection of debt that did not arise from a contract or an 
        agreement to pay by a consumer, including fines, tickets, and 
        other assessments, as determined by the Bureau, excluding tax 
        liability.'';
          (2) by striking subsection (b) and redesignating subsections 
        (c) through (h) as subsections (b) through (g), respectively; 
        and
          (3) in subsection (b) (as so redesignated), by striking ``7-
        year period referred to in paragraphs (4) and (6)'' and 
        inserting ``4-year period referred to in paragraphs (4) and 
        (5)''.
  (b) Conforming Amendments.--The Fair Credit Reporting Act (15 U.S.C. 
1681) is amended--
          (1) in section 616(d), by striking ``section 605(g)'' each 
        place that term appears and inserting ``section 605(f)''; and
          (2) in section 625(b)(5)(A), by striking ``section 605(g)'' 
        and inserting ``section 605(f)''.

SEC. 102. MANDATES THE EXPEDITED REMOVAL OF FULLY PAID OR SETTLED DEBT 
                    FROM CONSUMER REPORTS.

  Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)), 
as amended by section 101(a)(1), is further amended by adding at the 
end the following new paragraph:
          ``(13) Any other adverse item of information related to a 
        fully paid or settled debt that had been characterized as 
        delinquent, charged off, or in collection which, from the date 
        of payment or settlement, antedates the report by more than 45 
        calendar days.''.

SEC. 103. IMPOSES RESTRICTIONS ON THE APPEARANCE OF MEDICAL COLLECTIONS 
                    ON CONSUMER REPORTS AND REQUIRES THE EXPEDITED 
                    REMOVAL OF FULLY PAID OR SETTLED MEDICAL 
                    COLLECTIONS FROM CONSUMER REPORTS.

  (a) Removal of Fully Paid or Settled Medical Debt From Consumer 
Reports.--Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 
1681c(a)), as amended by section 102, is further amended by adding at 
the end the following new paragraph:
          ``(14) Any other adverse item of information related to a 
        fully paid or settled debt arising from the receipt of medical 
        services, products, or devices that had been characterized as 
        delinquent, charged off, or in collection which, from the date 
        of payment or settlement, antedates the report by more than 45 
        calendar days.''.
  (b) Establishing an Extended Time Period Before Certain Medical Debt 
Information May Be Reported.--Section 605(a) of such Act is further 
amended by adding at the end the following new paragraph:
          ``(15) Any information related to a debt arising from the 
        receipt of medical services, products, or devices, if the date 
        on which such debt was placed for collection, charged to profit 
        or loss, or subjected to any similar action antedates the 
        report by less than 365 calendar days.''.
  (c) Prohibition on Reporting Medically Necessary Procedures.--Section 
605(a) of such Act is further amended by adding at the end the 
following new paragraph:
          ``(16) Any information related to a debt arising from a 
        medically necessary procedure.''.
  (d) Technical Amendment.--Section 604(g)(1)(C) of the Fair Credit 
Reporting Act (15 U.S.C. 1681b(g)(1)(C)) is further amended by striking 
``devises'' and inserting ``devices''.

SEC. 104. PROVIDES CREDIT RESTORATION FOR VICTIMS OF PREDATORY MORTGAGE 
                    LENDING AND SERVICING.

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

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

  ``(a) In General.--A consumer reporting agency may not furnish any 
consumer report containing any adverse item of information relating to 
a covered residential mortgage loan (including the origination and 
servicing of such a loan, any loss mitigation activities related to 
such a loan, and any foreclosure, deed in lieu of foreclosure, or short 
sale related to such a loan), if the action or inaction to which the 
item of information relates--
          ``(1) resulted from an unfair, deceptive, or abusive act or 
        practice, or a fraudulent, discriminatory, or illegal activity 
        of a financial institution, as determined by the Bureau or a 
        court of competent jurisdiction; or
          ``(2) is related to an unfair, deceptive, or abusive act, 
        practice, or a fraudulent, discriminatory, or illegal activity 
        of a financial institution that is the subject of a settlement 
        agreement initiated on behalf of a consumer or consumers and 
        that is between the financial institution and an agency or 
        department of a local, State, or Federal Government, regardless 
        of whether such settlement includes an admission of wrongdoing.
  ``(b) Covered Residential Mortgage Loan Defined.--In this section, 
the term `covered residential mortgage loan' means any loan primarily 
for personal, family, or household use that is secured by a mortgage, 
deed of trust, or other equivalent consensual security interest on a 
dwelling (as defined in section 103(w) of the Truth in Lending Act), 
including a loan in which the proceeds will be used for--
          ``(1) a manufactured home (as defined in section 603 of the 
        Housing and Community Development Act of 1974 (42 U.S.C. 
        5402));
          ``(2) any installment sales contract, land contract, or 
        contract for deed on a residential property; or
          ``(3) a reverse mortgage transaction (as defined in section 
        103 of the Truth in Lending Act).''.
  (b) Table of Contents Amendment.--The table of contents of the Fair 
Credit Reporting Act is amended by inserting after the item relating to 
section 605B the following new item:

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

  (c) Effective Date.--The amendments made by this section shall take 
effect at the end of the 18-month period beginning on the date of the 
enactment of this Act.

SEC. 105. PROVIDES CREDIT RELIEF FOR PRIVATE EDUCATION LOANS BORROWERS 
                    WHO WERE DEFRAUDED OR MISLEAD BY PROPRIETARY 
                    EDUCATION INSTITUTION OR CAREER EDUCATION PROGRAMS.

  (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.), as amended by section 104, is further amended by inserting after 
section 605C the following new section:

``Sec. 605D. Private education loan credit restoration for defrauded 
                    student borrowers who attend certain proprietary 
                    educational institution or career education 
                    programs

  ``(a) Process for Certification as a Qualifying Private Education 
Loan Borrower.--
          ``(1) In general.--A consumer may submit a request to the 
        Bureau, along with a defraudment claim, to be certified as a 
        qualifying private education loan borrower with respect to a 
        private education loan.
          ``(2) Certification.--The Bureau shall certify a consumer 
        described in paragraph (1) as a qualifying private education 
        loan borrower with respect to a private education loan if the 
        Bureau or a court of competent jurisdiction determines that the 
        consumer has a valid defraudment claim with respect to such 
        loan.
  ``(b) Removal of Adverse Information.--Upon receipt of a notice 
described in subsection (d)(5), a consumer reporting agency shall 
remove any adverse information relating to any private education loan 
with respect to which a consumer is a qualifying private education loan 
borrower from any consumer report within 45 calendar days of receipt of 
such notification.
  ``(c) Disclosure.--The Bureau shall disclose the results of a 
certification determination in writing to the consumer that provides a 
clear and concise explanation of the basis for the determination of 
whether such consumer is a qualifying private education loan borrower 
with respect to a private education loan and, as applicable, an 
explanation of the consumer's right to have adverse information 
relating to such loan removed from their consumer report by a consumer 
reporting agency.
  ``(d) Procedures.--The Bureau shall--
          ``(1) establish procedures for a consumer to submit a request 
        described in subsection (a);
          ``(2) establish procedures to efficiently review, accept, and 
        process such a request;
          ``(3) develop ongoing outreach initiatives and education 
        programs to inform consumers of the circumstances under which 
        such consumer may be eligible to be certified as a qualifying 
        private education loan borrower with respect to a private 
        education loan;
          ``(4) establish procedures, including the manner, form, and 
        content of the notice informing a private educational loan 
        holder of the prohibition on reporting any adverse information 
        relating to a private education loan with respect to which a 
        consumer is a qualifying private education loan borrower; and
          ``(5) establish procedures, including the manner, form, and 
        content of the notice informing a consumer reporting agency of 
        the obligation to remove any adverse information as described 
        in subsection (c).
  ``(e) Standardized Reporting Codes.--A consumer reporting agency 
shall develop standardized reporting codes for use by private education 
loan holders to identify and report a qualifying private education loan 
borrower's status of a request to remove any adverse information 
relating to any private education loan with respect to which such 
consumer is a qualifying private education loan borrower. A consumer 
report in which a person furnishes such codes shall be deemed to comply 
with the requirements for accuracy and completeness required under 
sections 623(a)(1) and 630. Such codes shall not appear on any report 
provided to a third party, and shall be removed from the consumer's 
credit report upon the successful restoration of the consumer's credit 
under this section.
  ``(f) Defraudment Claim Defined.--For purposes of this section, the 
term `defraudment claim' means a claim made with respect to a consumer 
who is a borrower of a private education loan with respect to a 
proprietary educational institution or career education program in 
which the consumer alleges that--
          ``(1) the proprietary educational institution or career 
        education program--
                  ``(A) engaged in an unfair, deceptive, or abusive act 
                or practice, or a fraudulent, discriminatory, or 
                illegal activity--
                          ``(i) as defined by State law of the State in 
                        which the proprietary educational institution 
                        or career education program is headquartered or 
                        maintains or maintained significant operations; 
                        or
                          ``(ii) under Federal law;
                  ``(B) is the subject of an enforcement order, a 
                settlement agreement, a memorandum of understanding, a 
                suspension of tuition assistance, or any other action 
                relating to an unfair, deceptive, or abusive act or 
                practice that is between the proprietary educational 
                institution or career education program and an agency 
                or department of a local, State, or Federal Government; 
                or
                  ``(C) misrepresented facts to students or accrediting 
                agencies or associations about graduation or gainful 
                employment rates in recognized occupations or failed to 
                provide the coursework necessary for students to 
                successfully obtain a professional certification or 
                degree from the proprietary educational institution or 
                career education program; or
          ``(2) the consumer has submitted a valid defense to repayment 
        claim with respect to such loan, as determined by the Secretary 
        of Education.''.
  (b) Table of Contents Amendment.--The table of contents of the Fair 
Credit Reporting Act is amended by inserting after the item relating to 
section 605C (as added by section 104) the following new item:

``605D. Private education loan credit restoration for defrauded student 
borrowers who attend certain proprietary educational institution or 
career education programs.''.

SEC. 106. ESTABLISHES RIGHT FOR VICTIMS OF FINANCIAL ABUSE TO HAVE 
                    ADVERSE INFORMATION ASSOCIATED WITH AN ABUSER'S 
                    FRAUDULENT ACTIVITY REMOVED FROM THEIR CONSUMER 
                    REPORTS.

  (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.), as amended by section 105, is further amended by inserting after 
section 605D the following new section:

``Sec. 605E. Financial abuse prevention

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

``605E. Financial abuse prevention.''.

SEC. 107. PROHIBITS TREATMENT OF CREDIT RESTORATION OR REHABILITATION 
                    AS ADVERSE INFORMATION.

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

``Sec. 630. Prohibition of certain factors related to Federal credit 
                    restoration or rehabilitation

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

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

  TITLE II--EXPANDING ACCESS TO TOOLS TO PROTECT VULNERABLE CONSUMERS 
  FROM IDENTITY THEFT, FRAUD, OR A RELATED CRIME, AND PROTECT VICTIMS 
                           FROM FURTHER HARM

SEC. 201. IDENTITY THEFT REPORT DEFINITION.

  Paragraph (4) of section 603(q) of the Fair Credit Reporting Act (15 
U.S.C. 1681a(q)(4)) is amended to read as follows:
          ``(4) Identity theft report.--The term `identity theft 
        report' has the meaning given that term by rule of the Bureau, 
        and means, at a minimum, a report--
                  ``(A) that is a standardized affidavit that alleges 
                that a consumer has been a victim of identity theft, 
                fraud, or a related crime, or has been harmed by the 
                unauthorized disclosure of the consumer's financial or 
                personally identifiable information, that was developed 
                and made available by the Bureau; or
                  ``(B)(i) that alleges an identity theft, fraud, or a 
                related crime, or alleges harm from the unauthorized 
                disclosure of the consumer's financial or personally 
                identifiable information;
                  ``(ii) that is a copy of an official, valid report 
                filed by a consumer with an appropriate Federal, State, 
                or local law enforcement agency, including the United 
                States Postal Inspection Service, or such other 
                government agency deemed appropriate by the Bureau; and
                  ``(iii) the filing of which subjects the person 
                filing the report to criminal penalties relating to the 
                filing of false information if, in fact, the 
                information in the report is false.''.

SEC. 202. AMENDMENT TO PROTECTION FOR FILES AND CREDIT RECORDS OF 
                    PROTECTED CONSUMERS.

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

SEC. 203. ENHANCES FRAUD ALERT PROTECTIONS.

  Section 605A of the Fair Credit Reporting Act (15 U.S.C. 1681c-1) is 
amended--
          (1) in subsection (a)--
                  (A) in the subsection heading, by striking ``One-
                Call'' and inserting ``One-Year'';
                  (B) in paragraph (1)--
                          (i) in the paragraph heading, by striking 
                        ``Initial alerts'' and inserting ``In 
                        general'';
                          (ii) by inserting ``or harmed by the 
                        unauthorized disclosure of the consumer's 
                        financial or personally identifiable 
                        information,'' after ``identity theft,'';
                          (iii) in subparagraph (A), by striking 
                        ``and'' at the end;
                          (iv) in subparagraph (B)--
                                  (I) by inserting ``1-year'' before 
                                ``fraud alert''; and
                                  (II) by striking the period at the 
                                end and inserting ``; and''; and
                          (v) by adding at the end the following new 
                        subparagraph:
                  ``(C) upon the expiration of the 1-year period 
                described in subparagraph (A) or a subsequent 1-year 
                period, and in response to a direct request by the 
                consumer or such representative, continue the fraud 
                alert for a period of 1 additional year if the 
                information asserted in this paragraph remains 
                applicable.''; and
                  (C) in paragraph (2)--
                          (i) in the paragraph heading, by inserting 
                        ``and credit or educational credit scores'' 
                        after ``reports'';
                          (ii) by inserting ``1-year'' before ``fraud 
                        alert'';
                          (iii) in subparagraph (A), by inserting ``and 
                        credit score or educational credit score'' 
                        after ``file''; and
                          (iv) in subparagraph (B), by striking ``any 
                        request described in subparagraph (A)'' and 
                        inserting ``the consumer reporting agency 
                        includes the 1-year fraud alert in the file of 
                        a consumer'';
          (2) in subsection (b)--
                  (A) in the subsection heading, by striking 
                ``Extended'' and inserting ``Seven-Year'';
                  (B) in paragraph (1)--
                          (i) in subparagraph (B)--
                                  (I) by striking ``5-year period 
                                beginning on the date of such request'' 
                                and inserting ``such 7-year period''; 
                                and
                                  (II) by striking ``and'' at the end;
                          (ii) in subparagraph (C)--
                                  (I) by striking ``extended'' and 
                                inserting ``7-year''; and
                                  (II) by striking the period at the 
                                end and inserting ``; and''; and
                          (iii) by adding at the end the following new 
                        subparagraph:
                  ``(D) upon the expiration of such 7-year period or a 
                subsequent 7-year period, and in response to a direct 
                request by the consumer or such representative, 
                continue the fraud alert for a period of 7 additional 
                years if the consumer or such representative submits an 
                updated identity theft report.''; and
                  (C) in paragraph (2)--
                          (i) in the paragraph heading, by inserting 
                        ``and credit or educational credit scores'' 
                        after ``reports''; and
                          (ii) by amending subparagraph (A) to read as 
                        follows:
                  ``(A) disclose to the consumer that the consumer may 
                request a free copy of the file and credit score or 
                educational credit score of the consumer pursuant to 
                section 612(d) during each 12-month period beginning on 
                the date on which the 7-year fraud alert was included 
                in the file and ending on the date of the last day that 
                the 7-year fraud alert applies to the consumer's file; 
                and'';
          (3) in subsection (c)--
                  (A) in paragraph (1), by inserting ``or educational 
                credit score'' after ``credit score'';
                  (B) by redesignating paragraphs (1), (2), and (3), as 
                subparagraphs (A), (B), and (C), respectively (and 
                conforming the margins accordingly);
                  (C) by striking ``Upon the direct request'' and 
                inserting:
          ``(1) In general.--Upon the direct request''; and
                  (D) by adding at the end the following new paragraph:
          ``(2) Access to free reports and credit or educational credit 
        scores.--If a consumer reporting agency includes an active duty 
        alert in the file of an active duty military consumer, the 
        consumer reporting agency shall--
                  ``(A) disclose to the active duty military consumer 
                that the active duty military consumer may request a 
                free copy of the file and credit score or educational 
                credit score of the active duty military consumer 
                pursuant to section 612(d), during each 12-month period 
                beginning on the date that the activity duty military 
                alert is requested and ending on the date of the last 
                day the active duty alert applies to the file of the 
                active duty military consumer; and
                  ``(B) provide to the active duty military consumer 
                all disclosures required to be made under section 609, 
                without charge to the consumer, not later than 3 
                business days after any request described in 
                subparagraph (A).'';
          (4) by amending subsection (d) to read as follows:
  ``(d) Procedures.--Each consumer reporting agency described in 
section 603(p) shall include on the webpage required under subsection 
(i) policies and procedures to comply with this section, including 
policies and procedures--
          ``(1) that inform consumers of the availability of 1-year 
        fraud alerts, 7-year fraud alerts, active duty alerts, and 
        security freezes (as applicable);
          ``(2) that allow consumers to request 1-year fraud alerts, 7-
        year fraud alerts, and active duty alerts (as applicable) and 
        to place, temporarily lift, or fully remove a security freeze 
        in a simple and easy manner; and
          ``(3) for asserting in good faith a suspicion that the 
        consumer has been or is about to become a victim of identity 
        theft, fraud, or a related crime, or harmed by the unauthorized 
        disclosure of the consumer's financial or personally 
        identifiable information, for a consumer seeking a 1-year fraud 
        alert or security freeze.'';
          (5) in subsection (e), by inserting ``1-year or 7-year'' 
        before ``fraud alert'';
          (6) in subsection (f), by striking ``or active duty alert'' 
        and inserting ``active duty alert, or security freeze (as 
        applicable)'';
          (7) in subsection (g)--
                  (A) by inserting ``or has been harmed by the 
                unauthorized disclosure of the consumer's financial or 
                personally identifiable information, or to inform such 
                agency of the consumer's participation in credit 
                restoration or rehabilitation under section 605C, 605D, 
                or 605E,'' after ``identity theft,''; and
                  (B) by inserting ``or security freezes'' after 
                ``request alerts'';
          (8) in subsection (h)--
                  (A) in paragraph (1)--
                          (i) in the paragraph heading, by striking 
                        ``initial'' and inserting ``1-year''; and
                          (ii) by striking ``initial'' and inserting 
                        ``1-year'' each place such term appears; and
                  (B) in paragraph (2)--
                          (i) in the paragraph heading, by striking 
                        ``extended'' and inserting ``7-year''; and
                          (ii) by striking ``extended'' and inserting 
                        ``7-year'' each place such term appears; and
          (9) in subsection (i)(4)--
                  (A) by striking subparagraphs (E) and (I); and
                  (B) by redesignating subparagraphs (F), (G), (H), and 
                (J) as subparagraphs (E), (F), (G), and (H), 
                respectively.

SEC. 204. AMENDMENT TO SECURITY FREEZES FOR CONSUMER REPORTS.

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

SEC. 205. CLARIFICATION OF INFORMATION TO BE INCLUDED WITH AGENCY 
                    DISCLOSURES.

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

SEC. 206. PROVIDES ACCESS TO FRAUD RECORDS FOR VICTIMS.

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

SEC. 207. REQUIRED BUREAU TO SET PROCEDURES FOR REPORTING IDENTITY 
                    THEFT, FRAUD, AND OTHER RELATED CRIME.

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

SEC. 208. ESTABLISHES THE RIGHT TO FREE CREDIT MONITORING AND IDENTITY 
                    THEFT PROTECTION SERVICES FOR CERTAIN CONSUMERS.

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

SEC. 209. ENSURES REMOVAL OF INQUIRIES RESULTING FROM IDENTITY THEFT, 
                    FRAUD, OR OTHER RELATED CRIME FROM CONSUMER 
                    REPORTS.

  Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)), 
as amended by section 103, is further amended by adding at the end the 
following:
          ``(17) Information about inquiries made for a credit report 
        based on requests that the consumer reporting agency verifies 
        were initiated as the result of identity theft, fraud, or other 
        related crime.''.

                        TITLE III--MISCELLANEOUS

SEC. 301. DEFINITIONS.

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

SEC. 302. TECHNICAL CORRECTION RELATED TO RISK-BASED PRICING NOTICES.

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

SEC. 303. FCRA FINDINGS AND PURPOSE; VOIDS CERTAIN CONTRACTS NOT IN THE 
                    PUBLIC INTEREST.

  (a) FCRA Findings and Purpose.--Section 602 of the Fair Credit 
Reporting Act (15 U.S.C. 1681(a)) is amended--
          (1) in subsection (a)--
                  (A) by amending paragraph (1) to read as follows:
  ``(1) Many financial and non-financial decisions affecting consumers' 
lives depend upon fair, complete, and accurate credit reporting. 
Inaccurate and incomplete credit reports directly impair the efficiency 
of the financial system and undermine the integrity of using credit 
reports in other circumstances, and unfair credit reporting and credit 
scoring methods undermine the public confidence which is essential to 
the continued functioning of the financial services system and the 
provision of many other consumer products and services.''; and
                  (B) in paragraph (4), by inserting after ``agencies'' 
                the following: ``, furnishers, and credit scoring 
                developers''; and
          (2) in subsection (b)--
                  (A) by striking ``It is the purpose of this title to 
                require'' and inserting the following: ``The purpose of 
                this title is the following:
          ``(1) To require''; and
                  (B) by adding at the end the following:
          ``(2) To prohibit any practices and procedures with respect 
        to credit reports and credit scores that are not in the public 
        interest.''.
  (b) Voiding of Certain Contracts Not in the Public Interest.--
          The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), as 
        amended by section 107, is further amended--
          (1) by adding at the end the following new section:

``Sec. 631. Voiding of certain contracts not in the public interest

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

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

                          Purpose and Summary

    On July 5, 2019, Representative Rashida Tlaib introduced 
H.R. 3622, ``Restoring Unfairly Impaired Credit and Protecting 
Consumers Act,'' which shortens the time period most adverse 
credit information stays on consumer reports by reducing the 
statutory time periods from 7 to 4 years and from 10 to 7 years 
for bankruptcy information. Credit Reporting Agencies (CRAs) 
would also be required to remove adverse information from 
reports relating to a residential mortgage or private education 
loan that are found to have resulted from an unfair, deceptive, 
or abusive act or practice, or a fraudulent, discriminatory, or 
illegal activity of a financial institution as determined by 
the Consumer Financial Protection Bureau (CFPB) or a court. In 
addition, the bill mandates the expedited removal of paid or 
settled debt from consumer reports. CRAs would be prohibited 
from including medical collections on reports until 365 
calendar days after the date of the first delinquency.\1\ The 
bill establishes the right for victims of financial abuse to 
have adverse information associated with an abuser's fraudulent 
activity removed from their consumer reports. It also protects 
victims of fraudulent activity by expanding access to identity 
theft (ID) protection tools beyond victims of ID theft to all 
victims of fraud.
---------------------------------------------------------------------------
    \1\Currently, CRAs wait at least 180 days before including medical 
collections on a report. See Credit Reporting Agencies Multistate 
Settlement available at https://www.mass.gov/service-details/credit-
reporting-agencies-multistate-settlement.
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                  Background and Need for Legislation

    Our nation's credit reporting system impacts 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,\2\ and numerous shortcomings with the current system 
have been identified during that time that need to be 
addressed. For example, a 2012 Federal Trade Commission (FTC) 
study found 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.\3\ An analysis of the Consumer 
Financial Protection Bureau's (CFPB) consumer complaint 
database in 2018 revealed that credit reports were the most 
complained about financial product, and the three major credit 
bureaus--Equifax, Experian and TransUnion--were the financial 
companies with the most complaints.\4\ These critical flaws 
must be addressed and the Fair Credit Reporting Act must be 
modernized to ensure the credit reporting system works better 
for all Americans.
---------------------------------------------------------------------------
    \2\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.
    \3\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
    \4\https://uspirg.org/news/usp/youre-not-alone-cfpb-complaints-rise
---------------------------------------------------------------------------
    According to research, the value of most negative 
information contained on consumer reports in predicting the 
likelihood of defaulting or being late on a payment gradually 
diminishes after two years.\5\ As such, maintaining adverse 
credit information on consumer reports long after its 
predictive value has expired does not improve creditors' 
underwriting, yet can impede some consumers' ability to obtain 
a job or promotion, given that some employers review consumers' 
full reports in making employment decisions. Furthermore, the 
current time frames that adverse information remains on a 
consumer report are not a universal standard. For example, the 
time limit for negative information in Sweden is three 
years.\6\
---------------------------------------------------------------------------
    \5\Vantage Score, What Influences your VantageScore Credit Score 
(2013), available at https://www.vantagescore.com/pdf/
VantageScore%20Infographic%2005.pdf.
    \6\Marieke Bos and Leonard Nakamura, Working Paper No. 12-19/R, 
Should Defaults Be Forgotten? Evidence from Quasi-Experimental 
Variation in Removal of Negative Consumer Credit Information 1 Federal 
Reserve Bank of Philadelphia (2013), available at https://
www.philadelphiafed.org/-/media/research-and-data/publications/working-
papers/2012/wp12-29R.pdf.
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    The CFPB has found that the medical pricing, billing, and 
reimbursement process lacks transparency and is prone to 
consumer confusion, which can result in consumers delaying or 
withholding payments until they have adequate time to clarify 
or resolve disputes with their insurance companies or medical 
service providers about what they actually owe.\7\
---------------------------------------------------------------------------
    \7\Consumer Financial Protection Bureau, Consumer credit reports: A 
study of medical and non-medical collections (2014), available at 
https://files.consumerfinance.gov/f/201412_cfpb_reports_`consumer-
credit-medical-and-non-medical-collections.pdf.
---------------------------------------------------------------------------
    Victims of predatory lending activity also experience 
obstacles that unfairly follow them long after the debt is 
addressed. For example, large numbers of minority borrowers who 
were eligible for safe and affordable loans were 
inappropriately steered towards high-priced subprime loans with 
ruinous features, which ultimately tarnished their 
creditworthiness.\8\ According to FICO, from 2008 to 2009, 
about 50 million people experienced a 20-point drop in their 
credit scores and about 21 million people had their scores 
decline by more than 50 points.\9\
---------------------------------------------------------------------------
    \8\Debbie Gruenstein Bocian, Wei Li, Carolina Reid, Lost Ground, 
2011: Disparities in Mortgage Lending and Foreclosures, Center for 
Responsible Lending (2011), available at https://
www.responsiblelending.org/mortgage-lending/research-analysis/Lost-
Ground-2011.pdf.
    \9\FICOblog, Score Performance (2011), available at https://
www.fico.com/blogs/tag/score-performance/page/5/.
---------------------------------------------------------------------------
    According to a 2015 MasterCard survey,\10\ a majority of 
consumers (77 percent) are anxious about their information 
being stolen or compromised. Consumers' concerns about the 
online security of their financial information even outweighs 
fears about physical security dangers such as having their 
houses robbed (59 percent) or being pickpocketed (46 percent).
---------------------------------------------------------------------------
    \10\Mastercard, MasterCard Survey Reveals Americans Anxious about 
Personal Security but Optimistic About New Ways to Pay (2015), 
available at https://newsroom.mastercard.com/press-releases/mastercard-
survey-reveals-americans-anxious-about-personal-security-but-
optimistic-about-new-ways-to-pay/.
---------------------------------------------------------------------------
    This legislation is supported by more than 80 consumer, 
civil rights, labor, and community organizations.\11\ The 
National Association of Realtors and the National Patient 
Advocate Foundation also support this legislation.\12\
---------------------------------------------------------------------------
    \11\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/.
    \12\National Association of Realtors letter, available at https://
narfocus.com/billdatabase/clientfiles/172/2/3417.pdf. National Patient 
Advocate Foundation letter dated and sent to the House Financial 
Services Committee on July 11, 2019, discussing the needed protections 
of H.R. 3622. ``These protections are also important to help families 
avoid household material hardships and support patient and family 
quality of life, enabling affected individuals to focus on treatment 
and recovery rather than distressing financial hardship caused by 
illness.''
---------------------------------------------------------------------------
    This legislation is substantially similar to Titles IV and 
VIII 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.\13\
---------------------------------------------------------------------------
    \13\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. Title

    This section provides that H.R. 3622 may be cited as the 
``Restoring Unfairly Impaired Credit and Protecting Consumers 
Act.''

Section 2. Findings

    This section highlights reports and studies finding that 
the credit reporting agencies have failed to ensure complete 
protection and accuracy of consumer data. The findings also 
discusses that many of the complaints submitted to the Consumer 
Financial Protection Bureau's consumer complaint database 
feature consumer frustration with the burden required to 
address fraudulent activity and other errors on their credit 
reports. The findings also address the difficulties that 
victims of fraudulent activity and/or predatory lending face in 
recovering from the illegal or unethical action that results in 
damaging information on their credit reports.

Section 3. Effective date

    This section provides that the changes made by this act 
will go into effect two years after its enactment.

Section 4. General bureau rulemaking

    This section directs the Consumer Financial Protection 
Bureau to issue final rules implementing this Act within two 
years of the enactment of this act.

    TITLE I. RESTORING THE IMPAIRED CREDIT OF VICTIMS OF PREDATORY 
           ACTIVITIES AND UNFAIR CONSUMER REPORTING PRACTICES

Section 101. Shortens the time period that most adverse credit 
        information stays on consumer reports

    This section amends Section 605 of the Fair Credit 
Reporting Act by reducing the statutory time period that 
adverse credit information remains on consumer reports from 7 
to 4 years, and 10 to 7 years for bankruptcies.

Section 102. Mandates the expedited removal of fully paid or settled 
        debt from consumer reports

    This section amends Section 605(a) of the Fair Credit 
Reporting Act by mandating the expedited removal of fully paid 
or settled debt items from consumer reports by requiring 
consumer reporting agencies to remove collection items from the 
report within 45 days after it is fully paid or settled, 
regardless of who pays the debt.

Section 103. Imposes restrictions on the appearance of medical 
        collections on consumer reports and requires the expedited 
        removal of fully paid or settled medical collections from 
        consumer reports

    This section amends Section 605(a) and Section 604(g)(1)(C) 
of the Fair Credit Reporting Act.
    The amendments made by this section require consumer 
reporting agencies to remove paid or fully settled medical 
collections from reports within 45 days, regardless of who pays 
the debt. The amendments also extend the time period before 
medical debt may be reported to 365 calendar days. The revised 
provisions also ban the reporting of debt arising from 
medically necessary procedures.

Section 104. Provides credit restoration for victims of predatory 
        mortgage lending and servicing

    This section creates a new section, 605C to the Fair Credit 
Reporting Act.
    The new section 605C prohibits consumer reporting agencies 
from furnishing any report containing adverse information 
related to a covered residential mortgage (including the 
origination and servicing of such a loan, any loss mitigation 
activities related to such a loan, and any foreclosure, deed in 
lieu of foreclosure, or short sale related to such a loan), if 
the action or inaction stems from or is related to an 
discriminatory, unfair, deceptive, abusive, or illegal activity 
of a financial institution as determined by the Consumer 
Financial Protection Bureau or the courts.

Section 105. Provides credit relief for private education loans 
        borrowers who were defrauded or mislead by proprietary 
        education institution or career education programs

    This section creates a new section, 605D to the Fair Credit 
Reporting Act.
    The new section 605D requires consumer reporting agencies 
to remove any adverse information relating to any private 
education loan within 45 days, once the court or the Consumer 
Financial Protection Bureau determines that the consumer has a 
valid fraud claim. This section also directs the Consumer 
Financial Protection Bureau to establish processes and 
procedures to manage consumer student loan issues including the 
consumer reporting agency responsibility of removing such 
adverse information from consumer reports.

Section 106. Establishes right for victims of financial abuse to have 
        adverse information associated with an abuser's fraudulent 
        activity removed from their consumer reports

    This section creates a new section, 605E to the Fair Credit 
Reporting Act.
    The new section 605E provides that a consumer who has 
adverse information on their credit report due to the actions 
of an abusive spouse, family member, caregiver, or person to 
which the consumer had a dating relationship may apply to the 
appropriate court of jurisdiction to require the removal of the 
adverse information from the credit report.

Section 107. Prohibits treatment of credit restoration or 
        rehabilitation as adverse information

    This section creates a new section, 630 to the Fair Credit 
Reporting Act.
    The new section 630 prohibits credit scoring models from 
using a consumer's participation in credit restoration or 
rehabilitation, including the absence of payment history data 
in a manner adverse to a consumer's credit score.

  TITLE II--EXPANDING ACCESS TO TOOLS TO PROTECT VULNERABLE CONSUMERS 
  FROM IDENTITY THEFT, FRAUD, OR A RELATED CRIME, AND PROTECT VICTIMS 
                           FROM FURTHER HARM

Section 201. Identity theft report definition

    This section amends section 603(g) of the Fair Credit 
Reporting Act by defining ``identity theft report.''

Section 202. Amendment to protection for files and credit records of 
        protected consumers

    This section amends section 603(g) and section 605A(j) of 
the Fair Credit Reporting Act.
    The amendments made by this section outline the definition 
of a credit freeze and also determine circumstances in which 
the credit freeze may not apply to the use of a consumer report 
such as; for the purposes of reviewing the active account, 
collecting the financial obligation owed on the account, or 
facilitating the extension of credit by a person whom the 
consumer has granted access to.

Section 203. Enhances fraud alert protections

    This section amends section 605A of the Fair Credit 
Reporting Act by extending the time period of fraud protections 
from 90 days to one year and extends protections beyond 
identity theft and fraud to unauthorized disclosures of the 
consumer's data.

Section 204. Amendment to security freezes for consumer reports

    This section amends section 605A(i) of the Fair Credit 
Reporting Act by allowing consumers to request a temporary 
removal of security freezes and clarifies that this subsection 
does not supersede state law relating to security freezes.

Section 205. Clarification of information to be included with agency 
        disclosures

    This section amends section 609(c)(2) of the Fair Credit 
Reporting Act by making technical clarifications on consumer 
reporting agency disclosures.

Section 206. Provides access to fraud records for victims

    This section amends section 609(e) of the Fair Credit 
Reporting Act by expanding identity theft protections to 
protections for fraudulent activity.

Section 207. Required Bureau to set procedures for reporting identity 
        theft, fraud, and other related crime

    This section amends section 621(f)(2) of the Fair Credit 
Reporting Act by directing the Consumer Financial Protection 
Bureau to expand identity theft protections to protections for 
fraudulent activity and to establish reporting procedures.

Section 208. Establishes the right to free credit monitoring and 
        identity theft protection services for certain consumers

    This section amends section 605A of the Fair Credit 
Reporting Act.
    The amendments made by this section direct the Consumer 
Financial Protection Bureau to establish, through a rulemaking, 
classes of consumers who may receive free credit monitoring and 
identity theft protection services, including servicemembers, 
victims of fraudulent activity, a consumer who is unemployed, 
is over the age of 65, or is a recipient of public assistance.

Section 209. Ensures removal of inquiries resulting from identity 
        theft, fraud, or other related crime from consumer reports

    This section amends section 605(a) of the Fair Credit 
Reporting Act by directing the removal of inquiries made as a 
result of fraudulent activity.

                        TITLE III--MISCELLANEOUS

Section 301. Definitions related to days

    This section amends section 603 of the Fair Credit 
Reporting Act by defining ``calendar day'' and ``business 
day''.

Section 302. Technical correction related to risk-based pricing notices

    This section amends section 615(h)(8) of the Fair Credit 
Reporting Act by making certain technical corrections.

Section 303. FCRA findings and purpose; voids certain contracts not in 
        the public interest

    This section amends section 602 of the Fair Credit 
Reporting Act by amending the findings and purpose section of 
the Fair Credit Reporting Act to highlight the importance of 
fair, complete, and accurate reporting. The amendments made by 
this section also make any contract that requires a person to 
not follow provisions in this title, is against the public 
interest, or circumvents the purposes of this title, to be 
considered null and void.

                                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'' 
(Titles IV and VIII of the discussion draft is substantially 
similar to H.R. 3622) 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) 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. 3622 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. 3622:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

  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. 3622 are to protect 
the credit reports of victims of predatory lending and/or 
fraudulent activity.

                 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. 3622 from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, December 20, 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. 3622, the 
Restoring Unfairly Impaired Credit and Protecting Consumers 
Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is David Hughes.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.
    
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    The bill would:
           Reduce the amount of time adverse 
        information may appear on consumer reports, establish 
        processes for certain consumers to remove adverse 
        information from their consumer reports, and expand 
        fraud and identity theft protections for consumers
           Impose intergovernmental and private-sector 
        mandates on consumer reporting agencies, other 
        businesses, and states
    Estimated budgetary effects would primarily stem from:
           Hiring additional Consumer Financial 
        Protection Bureau employees to issue final rules and 
        conduct ongoing outreach to borrowers who were 
        defrauded
    Bill Summary: H.R. 3622 would reduce the length of time 
that adverse credit information may appear on consumer reports 
assembled by consumer reporting agencies (CRAs) from 7 years to 
4 years and shorten the period of time that adverse bankruptcy 
information may appear on such reports from 10 years to 7 
years. The bill would require CRAs to remove fully paid or 
settled debt information from consumer reports after 45 days. 
H.R. 3622 also would disallow CRAs from assembling consumer 
reports that contain adverse information about noncontractual 
debt (such as fines or tickets); debt arising from medical 
costs placed for collection in the past year; debt arising from 
medically necessary procedures; and private education or 
residential mortgage debt resulting from unfair, deceptive, or 
abusive acts or practices or the fraudulent, discriminatory, or 
illegal activities of a financial institution.
    Under the bill, the Consumer Financial Protection Bureau 
(CFPB) would establish processes by which borrowers with 
fraudulent private education loans could remove adverse 
information regarding those loans from any consumer report. The 
CFPB would conduct ongoing outreach to inform consumers about 
their right to remove such information. H.R. 3622 would allow 
victims of financial exploitation to apply to a court to remove 
adverse credit information that resulted from such exploitation 
from any consumer report.
    Finally, H.R. 3622 would create additional and expand 
existing fraud and identity theft protections for consumers. 
Under the bill, if a business transacts with a person who uses 
a fraudulent identity, that business would be required to 
notify both the victim of that transaction and law enforcement. 
Among various other provisions, H.R. 3622 would require CRAs to 
offer free electronic credit monitoring services to certain 
consumers, including victims of identity theft, the unemployed, 
those on public welfare assistance, and the elderly.
    Estimated Federal cost: The estimated budgetary effect of 
H.R. 3622 is shown in Table 1. The costs of the legislation 
fall within budget function 370 (commerce and housing credit).

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 3622
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         By fiscal year, millions of dollars--
                                                             -------------------------------------------------------------------------------------------
                                                               2020   2021   2022   2023   2024   2025   2026   2027   2028   2029  2020-2024  2020-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Increases in Direct Spending
 
Estimated Budget Authority..................................      3      1      *      *      *      *      *      *      *      *         4          5
Estimated Outlays...........................................      3      1      *      *      *      *      *      *      *      *         4          5
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted early in calendar year 2020.
    Using information from the CFPB, CBO estimates that 
enacting H.R. 3622 would increase direct spending by $5 million 
over the 2020-2029 period. About 18 full-time CFPB employees 
would be required to issue final rules over the 2020-2021 
period. The CFPB also would hire one employee to spend a 
portion of their time implementing outreach initiatives to 
defrauded private education loan borrowers. CBO estimates the 
cost of each CFPB employee is about $200,000 per year.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in Table 2.

  TABLE 2.--CBO`S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 3622, THE RESTORING IMPAIRED CREDIT AND PROTECTING CONSUMERS ACT, AS ORDERED
                                         REPORTED BY THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON JULY 11, 2019
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         By fiscal year, millions of dollars--
                                                             -------------------------------------------------------------------------------------------
                                                               2020   2021   2022   2023   2024   2025   2026   2027   2028  42029  2020-2024  2020-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Net Increase in the Deficit
 
Pay-As-You-Go Effect........................................      3      1      0      0      0      0      0      0      0      0         4          5
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components do not sum to totals because of rounding.

    Increase in long-term deficits: None.
    Mandates: The bill contains intergovernmental and private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA). CBO estimates the cost to comply with the 
intergovernmental mandates would not exceed the threshold 
established in UMRA ($82 million in 2019, adjusted annually for 
inflation). Because implementation costs would depend on rules 
to be established by the CFPB, CBO cannot determine whether the 
cost of the private-sector mandates would exceed the threshold 
established in UMRA ($164 million in 2019, adjusted annually 
for inflation).
    The bill would impose a number of new requirements on CRAs. 
Those requirements, which CBO estimates would impose small 
compliance costs on CRAs, include:
           Meeting shorter deadlines to remove paid tax 
        liens from consumer reports;
           Removing adverse credit information from a 
        consumer report when that issue has been resolved 
        either through completed payment or a court settlement;
           Inserting fraud alerts in the files of 
        consumers affected by the unauthorized disclosure of 
        personally identifiable information; and
           Editing their webpages to inform consumers 
        of the availability of one-year fraud alerts, seven-
        year fraud alerts, active duty alerts, and credit 
        security freezes.
    Further, the bill would prohibit credit scoring models 
(including educational credit scores developed by CRAs) from 
attributing a consumer`s participation in credit restoration or 
rehabilitation as adverse information. H.R. 3622 would prohibit 
people who obtain consumer reports from using credit 
restoration and rehabilitation information when establishing a 
consumer`s eligibility for credit or for employment purposes. 
According to industry sources, the incremental cost to comply 
with these prohibitions would be small.
    The bill also would require businesses to disclose to law 
enforcement and the victim records of fraudulent commercial 
transactions. The incremental cost of the mandate would be 
small because the mandated entities already collect or possess 
the records.
    In addition, H.R. 3622 would direct the CFPB to issue 
several rules that would impose new requirements on CRAs. 
Because CFPB has not yet established those rules, CBO cannot 
determine the aggregate cost to comply with those mandates. 
Specifically, the bill would direct CFPB to:
           Define the scope of identity theft 
        protection and credit monitoring services that would be 
        offered free of charge by CRAs to some consumers;
           Establish classes of consumers that would be 
        eligible for free identity theft protection and credit 
        monitoring services from CRAs; and
           Approve borrowers claiming fraud in private 
        education loan transactions to have adverse loan 
        information removed from their consumer report by a 
        CRA.
    Finally, the bill would preempt state laws governing 
security freezes, credit monitoring, and identity theft 
protection of a consumer`s credit. Although the preemption 
would limit the application of state laws, CBO estimates that 
it would impose no duty on state governments that would result 
in additional spending or a loss of revenues.
    Estimate prepared by: Federal costs: David Hughes; 
Mandates: Rachel Austin.
    Estimate reviewed by: Kim Cawley, Chief, Natural Resources 
Cost Estimates Unit; Susan Willie, Chief, Mandates Unit; H. 
Samuel Papenfuss, Deputy Assistant Director for Budget 
Analysis; Theresa Gullo, 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. 3622. 
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. 3622, 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. 3622 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. 3622 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. 3622 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. 3622, 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.
601. Short title.
     * * * * * * *
Sec. 605C. Credit restoration for victims of predatory mortgage lending.
Sec. 605D. Private education loan credit restoration for defrauded 
          student borrowers who attend certain proprietary educational 
          institution or career education programs.
Sec. 605E. Financial abuse prevention.
     * * * * * * *
Sec. 630. Prohibition of certain factors related to Federal credit 
          restoration or rehabilitation.
Sec. 631. Voiding of certain contracts not in the public interest.

           *       *       *       *       *       *       *


Sec. 602. Findings and purpose

  (a) The Congress makes the following findings:
  [(1) The banking system is dependent upon fair and accurate 
credit reporting. Inaccurate credit reports directly impair the 
efficiency of the banking system, and unfair credit reporting 
methods undermine the public confidence which is essential to 
the continued functioning of the banking system.]
  (1) Many financial and non-financial decisions affecting 
consumers` lives depend upon fair, complete, and accurate 
credit reporting. Inaccurate and incomplete credit reports 
directly impair the efficiency of the financial system and 
undermine the integrity of using credit reports in other 
circumstances, and unfair credit reporting and credit scoring 
methods undermine the public confidence which is essential to 
the continued functioning of the financial services system and 
the provision of many other consumer products and services.
  (2) An elaborate mechanism has been developed for 
investigating and evaluating the credit worthiness, credit 
standing, credit capacity, character, and general reputation of 
consumers.
  (3) Consumer reporting agencies have assumed a vital role in 
assembling and evaluating consumer credit and other information 
on consumers.
  (4) There is a need to insure that consumer reporting 
agencies, furnishers, and credit scoring developers exercise 
their grave responsibilities with fairness, impartiality, and a 
respect for the consumer``s right to privacy.
  (b) [It is the purpose of this title to require] The purpose 
of this title is the following:
          (1) To require  that consumer reporting agencies 
        adopt reasonable procedures for meeting the needs of 
        commerce for consumer credit, personnel, insurance, and 
        other information in a manner which is fair and 
        equitable to the consumer, with regard to the 
        confidentiality, accuracy, relevancy, and proper 
        utilization of such information in accordance with the 
        requirements of this title.
          (2) To prohibit any practices and procedures with 
        respect to credit reports and credit scores that are 
        not in the public interest.

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, except that 
such term excludes a record created pursuant to section 
605A(j).
  (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.]
          (4) Identity theft report.--The term ``identity theft 
        report'' has the meaning given that term by rule of the 
        Bureau, and means, at a minimum, a report--
                  (A) that is a standardized affidavit that 
                alleges that a consumer has been a victim of 
                identity theft, fraud, or a related crime, or 
                has been harmed by the unauthorized disclosure 
                of the consumer`s financial or personally 
                identifiable information, that was developed 
                and made available by the Bureau; or
                  (B)(i) that alleges an identity theft, fraud, 
                or a related crime, or alleges harm from the 
                unauthorized disclosure of the consumer`s 
                financial or personally identifiable 
                information;
                  (ii) that is a copy of an official, valid 
                report filed by a consumer with an appropriate 
                Federal, State, or local law enforcement 
                agency, including the United States Postal 
                Inspection Service, or such other government 
                agency deemed appropriate by the Bureau; and
                  (iii) the filing of which subjects the person 
                filing the report to criminal penalties 
                relating to the filing of false information if, 
                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) Definitions Related to Days.--
          (1) Calendar day; day.--The term ``calendar day'' or 
        ``day'' means a calendar day, excluding any federally 
        recognized holiday.
          (2) Business day.--The term ``business day'' means a 
        day between and including Monday to Friday, and 
        excluding any federally recognized holiday.

Sec. 604. Permissible purposes of reports

  (a) In General.--Subject to subsection (c), any consumer 
reporting agency may furnish a consumer report under the 
following circumstances and no other:
          (1) In response to the order of a court having 
        jurisdiction to issue such an order, or a subpoena 
        issued in connection with proceedings before a Federal 
        grand jury.
          (2) In accordance with the written instructions of 
        the consumer to whom it relates.
          (3) To a person which it has reason to believe--
                  (A) intends to use the information in 
                connection with a credit transaction involving 
                the consumer on whom the information is to be 
                furnished and involving the extension of credit 
                to, or review or collection of an account of, 
                the consumer; or
                  (B) intends to use the information for 
                employment purposes; or
                  (C) intends to use the information in 
                connection with the underwriting of insurance 
                involving the consumer; or
                  (D) intends to use the information in 
                connection with a determination of the 
                consumer`s eligibility for a license or other 
                benefit granted by a governmental 
                instrumentality required by law to consider an 
                applicant`s financial responsibility or status; 
                or
                  (E) intends to use the information, as a 
                potential investor or servicer, or current 
                insurer, in connection with a valuation of, or 
                an assessment of the credit or prepayment risks 
                associated with, an existing credit obligation; 
                or
                  (F) otherwise has a legitimate business need 
                for the information--
                          (i) in connection with a business 
                        transaction that is initiated by the 
                        consumer; or
                          (ii) to review an account to 
                        determine whether the consumer 
                        continues to meet the terms of the 
                        account.
                  (G) executive departments and agencies in 
                connection with the issuance of government-
                sponsored individually-billed travel charge 
                cards.
          (4) In response to a request by the head of a State 
        or local child support enforcement agency (or a State 
        or local government official authorized by the head of 
        such an agency), if the person making the request 
        certifies to the consumer reporting agency that--
                  (A) the consumer report is needed for the 
                purpose of establishing an individual`s 
                capacity to make child support payments, 
                determining the appropriate level of such 
                payments, or enforcing a child support order, 
                award, agreement, or judgment;
                  (B) the parentage of the consumer for the 
                child to which the obligation relates has been 
                established or acknowledged by the consumer in 
                accordance with State laws under which the 
                obligation arises (if required by those laws); 
                and
                  (C) the consumer report will be kept 
                confidential, will be used solely for a purpose 
                described in subparagraph (A), and will not be 
                used in connection with any other civil, 
                administrative, or criminal proceeding, or for 
                any other purpose.
          (5) To an agency administering a State plan under 
        section 454 of the Social Security Act (42 U.S.C. 654) 
        for use to set an initial or modified child support 
        award.
          (6) To the Federal Deposit Insurance Corporation or 
        the National Credit Union Administration as part of its 
        preparation for its appointment or as part of its 
        exercise of powers, as conservator, receiver, or 
        liquidating agent for an insured depository institution 
        or insured credit union under the Federal Deposit 
        Insurance Act or the Federal Credit Union Act, or other 
        applicable Federal or State law, or in connection with 
        the resolution or liquidation of a failed or failing 
        insured depository institution or insured credit union, 
        as applicable.
  (b) Conditions for Furnishing and Using Consumer Reports for 
Employment Purposes.--
          (1) Certification from user.--A consumer reporting 
        agency may furnish a consumer report for employment 
        purposes only if--
                  (A) the person who obtains such report from 
                the agency certifies to the agency that--
                          (i) the person has complied with 
                        paragraph (2) with respect to the 
                        consumer report, and the person will 
                        comply with paragraph (3) with respect 
                        to the consumer report if paragraph (3) 
                        becomes applicable; and
                          (ii) information from the consumer 
                        report will not be used in violation of 
                        any applicable Federal or State equal 
                        employment opportunity law or 
                        regulation; and
                  (B) the consumer reporting agency provides 
                with the report, or has previously provided, a 
                summary of the consumer`s rights under this 
                title, as prescribed by the Bureau under 
                section 609(c)(3).
          (2) Disclosure to consumer.--
                  (A) In general.--Except as provided in 
                subparagraph (B), a person may not procure a 
                consumer report, or cause a consumer report to 
                be procured, for employment purposes with 
                respect to any consumer, unless--
                          (i) a clear and conspicuous 
                        disclosure has been made in writing to 
                        the consumer at any time before the 
                        report is procured or caused to be 
                        procured, in a document that consists 
                        solely of the disclosure, that a 
                        consumer report may be obtained for 
                        employment purposes; and
                          (ii) the consumer has authorized in 
                        writing (which authorization may be 
                        made on the document referred to in 
                        clause (i)) the procurement of the 
                        report by that person.
                  (B) Application by mail, telephone, computer, 
                or other similar means.--If a consumer 
                described in subparagraph (C) applies for 
                employment by mail, telephone, computer, or 
                other similar means, at any time before a 
                consumer report is procured or caused to be 
                procured in connection with that application--
                          (i) the person who procures the 
                        consumer report on the consumer for 
                        employment purposes shall provide to 
                        the consumer, by oral, written, or 
                        electronic means, notice that a 
                        consumer report may be obtained for 
                        employment purposes, and a summary of 
                        the consumer`s rights under section 
                        615(a)(3); and
                          (ii) the consumer shall have 
                        consented, orally, in writing, or 
                        electronically to the procurement of 
                        the report by that person.
                  (C) Scope.--Subparagraph (B) shall apply to a 
                person procuring a consumer report on a 
                consumer in connection with the consumer`s 
                application for employment only if--
                          (i) the consumer is applying for a 
                        position over which the Secretary of 
                        Transportation has the power to 
                        establish qualifications and maximum 
                        hours of service pursuant to the 
                        provisions of section 31502 of title 
                        49, or a position subject to safety 
                        regulation by a State transportation 
                        agency; and
                          (ii) as of the time at which the 
                        person procures the report or causes 
                        the report to be procured the only 
                        interaction between the consumer and 
                        the person in connection with that 
                        employment application has been by 
                        mail, telephone, computer, or other 
                        similar means.
          (3) Conditions on use for adverse actions.--
                  (A) In general.--Except as provided in 
                subparagraph (B), in using a consumer report 
                for employment purposes, before taking any 
                adverse action based in whole or in part on the 
                report, the person intending to take such 
                adverse action shall provide to the consumer to 
                whom the report relates--
                          (i) a copy of the report; and
                          (ii) a description in writing of the 
                        rights of the consumer under this 
                        title, as prescribed by the Bureau 
                        under section 609(c)(3).
                  (B) Application by mail, telephone, computer, 
                or other similar means.--
                          (i) If a consumer described in 
                        subparagraph (C) applies for employment 
                        by mail, telephone, computer, or other 
                        similar means, and if a person who has 
                        procured a consumer report on the 
                        consumer for employment purposes takes 
                        adverse action on the employment 
                        application based in whole or in part 
                        on the report, then the person must 
                        provide to the consumer to whom the 
                        report relates, in lieu of the notices 
                        required under subparagraph (A) of this 
                        section and under section 615(a), 
                        within 3 business days of taking such 
                        action, an oral, written or electronic 
                        notification--
                                  (I) that adverse action has 
                                been taken based in whole or in 
                                part on a consumer report 
                                received from a consumer 
                                reporting agency;
                                  (II) of the name, address and 
                                telephone number of the 
                                consumer reporting agency that 
                                furnished the consumer report 
                                (including a toll-free 
                                telephone number established by 
                                the agency if the agency 
                                compiles and maintains files on 
                                consumers on a nationwide 
                                basis);
                                  (III) that the consumer 
                                reporting agency did not make 
                                the decision to take the 
                                adverse action and is unable to 
                                provide to the consumer the 
                                specific reasons why the 
                                adverse action was taken; and
                                  (IV) that the consumer may, 
                                upon providing proper 
                                identification, request a free 
                                copy of a report and may 
                                dispute with the consumer 
                                reporting agency the accuracy 
                                or completeness of any 
                                information in a report.
                          (ii) If, under clause (B)(i)(IV), the 
                        consumer requests a copy of a consumer 
                        report from the person who procured the 
                        report, then, within 3 business days of 
                        receiving the consumer`s request, 
                        together with proper identification, 
                        the person must send or provide to the 
                        consumer a copy of a report and a copy 
                        of the consumer`s rights as prescribed 
                        by the Bureau under section 609(c)(3).
                  (C) Scope.--Subparagraph (B) shall apply to a 
                person procuring a consumer report on a 
                consumer in connection with the consumer`s 
                application for employment only if--
                          (i) the consumer is applying for a 
                        position over which the Secretary of 
                        Transportation has the power to 
                        establish qualifications and maximum 
                        hours of service pursuant to the 
                        provisions of section 31502 of title 
                        49, or a position subject to safety 
                        regulation by a State transportation 
                        agency; and
                          (ii) as of the time at which the 
                        person procures the report or causes 
                        the report to be procured the only 
                        interaction between the consumer and 
                        the person in connection with that 
                        employment application has been by 
                        mail, telephone, computer, or other 
                        similar means.
          (4) Exception for national security investigations.--
                  (A) In general.--In the case of an agency or 
                department of the United States Government 
                which seeks to obtain and use a consumer report 
                for employment purposes, paragraph (3) shall 
                not apply to any adverse action by such agency 
                or department which is based in part on such 
                consumer report, if the head of such agency or 
                department makes a written finding that--
                          (i) the consumer report is relevant 
                        to a national security investigation of 
                        such agency or department;
                          (ii) the investigation is within the 
                        jurisdiction of such agency or 
                        department;
                          (iii) there is reason to believe that 
                        compliance with paragraph (3) will--
                                  (I) endanger the life or 
                                physical safety of any person;
                                  (II) result in flight from 
                                prosecution;
                                  (III) result in the 
                                destruction of, or tampering 
                                with, evidence relevant to the 
                                investigation;
                                  (IV) result in the 
                                intimidation of a potential 
                                witness relevant to the 
                                investigation;
                                  (V) result in the compromise 
                                of classified information; or
                                  (VI) otherwise seriously 
                                jeopardize or unduly delay the 
                                investigation or another 
                                official proceeding.
                  (B) Notification of consumer upon conclusion 
                of investigation.--Upon the conclusion of a 
                national security investigation described in 
                subparagraph (A), or upon the determination 
                that the exception under subparagraph (A) is no 
                longer required for the reasons set forth in 
                such subparagraph, the official exercising the 
                authority in such subparagraph shall provide to 
                the consumer who is the subject of the consumer 
                report with regard to which such finding was 
                made--
                          (i) a copy of such consumer report 
                        with any classified information 
                        redacted as necessary;
                          (ii) notice of any adverse action 
                        which is based, in part, on the 
                        consumer report; and
                          (iii) the identification with 
                        reasonable specificity of the nature of 
                        the investigation for which the 
                        consumer report was sought.
                  (C) Delegation by head of agency or 
                department.--For purposes of subparagraphs (A) 
                and (B), the head of any agency or department 
                of the United States Government may delegate 
                his or her authorities under this paragraph to 
                an official of such agency or department who 
                has personnel security responsibilities and is 
                a member of the Senior Executive Service or 
                equivalent civilian or military rank.
                  (D) Definitions.--For purposes of this 
                paragraph, the following definitions shall 
                apply:
                          (i) Classified information.--The term 
                        ``classified information'' means 
                        information that is protected from 
                        unauthorized disclosure under Executive 
                        Order No. 12958 or successor orders.
                          (ii) National security 
                        investigation.--The term ``national 
                        security investigation'' means any 
                        official inquiry by an agency or 
                        department of the United States 
                        Government to determine the eligibility 
                        of a consumer to receive access or 
                        continued access to classified 
                        information or to determine whether 
                        classified information has been lost or 
                        compromised.
  (c) Furnishing Reports in Connection With Credit or Insurance 
Transactions That Are Not Initiated by the Consumer.--
          (1) In general.--A consumer reporting agency may 
        furnish a consumer report relating to any consumer 
        pursuant to subparagraph (A) or (C) of subsection 
        (a)(3) in connection with any credit or insurance 
        transaction that is not initiated by the consumer only 
        if--
                  (A) the consumer authorizes the agency to 
                provide such report to such person; or
                  (B)(i) the transaction consists of a firm 
                offer of credit or insurance;
                  (ii) the consumer reporting agency has 
                complied with subsection (e);
                  (iii) there is not in effect an election by 
                the consumer, made in accordance with 
                subsection (e), to have the consumer`s name and 
                address excluded from lists of names provided 
                by the agency pursuant to this paragraph; and
                  (iv) the consumer report does not contain a 
                date of birth that shows that the consumer has 
                not attained the age of 21, or, if the date of 
                birth on the consumer report shows that the 
                consumer has not attained the age of 21, such 
                consumer consents to the consumer reporting 
                agency to such furnishing.
          (2) Limits on information received under paragraph 
        (1)(b).--A person may receive pursuant to paragraph 
        (1)(B) only--
                  (A) the name and address of a consumer;
                  (B) an identifier that is not unique to the 
                consumer and that is used by the person solely 
                for the purpose of verifying the identity of 
                the consumer; and
                  (C) other information pertaining to a 
                consumer that does not identify the 
                relationship or experience of the consumer with 
                respect to a particular creditor or other 
                entity.
          (3) Information regarding inquiries.--Except as 
        provided in section 609(a)(5), a consumer reporting 
        agency shall not furnish to any person a record of 
        inquiries in connection with a credit or insurance 
        transaction that is not initiated by a consumer.
  (d) Reserved.--
  (e) Election of Consumer To Be Excluded From Lists.--
          (1) In general.--A consumer may elect to have the 
        consumer`s name and address excluded from any list 
        provided by a consumer reporting agency under 
        subsection (c)(1)(B) in connection with a credit or 
        insurance transaction that is not initiated by the 
        consumer by notifying the agency in accordance with 
        paragraph (2) that the consumer does not consent to any 
        use of a consumer report relating to the consumer in 
        connection with any credit or insurance transaction 
        that is not initiated by the consumer.
          (2) Manner of notification.--A consumer shall notify 
        a consumer reporting agency under paragraph (1)--
                  (A) through the notification system 
                maintained by the agency under paragraph (5); 
                or
                  (B) by submitting to the agency a signed 
                notice of election form issued by the agency 
                for purposes of this subparagraph.
          (3) Response of agency after notification through 
        system.--Upon receipt of notification of the election 
        of a consumer under paragraph (1) through the 
        notification system maintained by the agency under 
        paragraph (5), a consumer reporting agency shall--
                  (A) inform the consumer that the election is 
                effective only for the 5-year period following 
                the election if the consumer does not submit to 
                the agency a signed notice of election form 
                issued by the agency for purposes of paragraph 
                (2)(B); and
                  (B) provide to the consumer a notice of 
                election form, if requested by the consumer, 
                not later than 5 business days after receipt of 
                the notification of the election through the 
                system established under paragraph (5), in the 
                case of a request made at the time the consumer 
                provides notification through the system.
          (4) Effectiveness of election.--An election of a 
        consumer under paragraph (1)--
                  (A) shall be effective with respect to a 
                consumer reporting agency beginning 5 business 
                days after the date on which the consumer 
                notifies the agency in accordance with 
                paragraph (2);
                  (B) shall be effective with respect to a 
                consumer reporting agency--
                          (i) subject to subparagraph (C), 
                        during the 5-year period beginning 5 
                        business days after the date on which 
                        the consumer notifies the agency of the 
                        election, in the case of an election 
                        for which a consumer notifies the 
                        agency only in accordance with 
                        paragraph (2)(A); or
                          (ii) until the consumer notifies the 
                        agency under subparagraph (C), in the 
                        case of an election for which a 
                        consumer notifies the agency in 
                        accordance with paragraph (2)(B);
                  (C) shall not be effective after the date on 
                which the consumer notifies the agency, through 
                the notification system established by the 
                agency under paragraph (5), that the election 
                is no longer effective; and
                  (D) shall be effective with respect to each 
                affiliate of the agency.
          (5) Notification system.--
                  (A) In general.--Each consumer reporting 
                agency that, under subsection (c)(1)(B), 
                furnishes a consumer report in connection with 
                a credit or insurance transaction that is not 
                initiated by a consumer shall--
                          (i) establish and maintain a 
                        notification system, including a toll-
                        free telephone number, which permits 
                        any consumer whose consumer report is 
                        maintained by the agency to notify the 
                        agency, with appropriate 
                        identification, of the consumer`s 
                        election to have the consumer`s name 
                        and address excluded from any such list 
                        of names and addresses provided by the 
                        agency for such a transaction; and
                          (ii) publish by not later than 365 
                        days after the date of enactment of the 
                        Consumer Credit Reporting Reform Act of 
                        1996, and not less than annually 
                        thereafter, in a publication of general 
                        circulation in the area served by the 
                        agency--
                                  (I) a notification that 
                                information in consumer files 
                                maintained by the agency may be 
                                used in connection with such 
                                transactions; and
                                  (II) the address and toll-
                                free telephone number for 
                                consumers to use to notify the 
                                agency of the consumer`s 
                                election under clause (i).
                  (B) Establishment and maintenance as 
                compliance.--Establishment and maintenance of a 
                notification system (including a toll-free 
                telephone number) and publication by a consumer 
                reporting agency on the agency`s own behalf and 
                on behalf of any of its affiliates in 
                accordance with this paragraph is deemed to be 
                compliance with this paragraph by each of those 
                affiliates.
          (6) Notification system by agencies that operate 
        nationwide.--Each consumer reporting agency that 
        compiles and maintains files on consumers on a 
        nationwide basis shall establish and maintain a 
        notification system for purposes of paragraph (5) 
        jointly with other such consumer reporting agencies.
  (f) Certain Use or Obtaining of Information Prohibited.--A 
person shall not use or obtain a consumer report for any 
purpose unless--
          (1) the consumer report is obtained for a purpose for 
        which the consumer report is authorized to be furnished 
        under this section; and
          (2) the purpose is certified in accordance with 
        section 607 by a prospective user of the report through 
        a general or specific certification.
  (g) Protection of Medical Information.--
          (1) Limitation on consumer reporting agencies.--A 
        consumer reporting agency shall not furnish for 
        employment purposes, or in connection with a credit or 
        insurance transaction, a consumer report that contains 
        medical information (other than medical contact 
        information treated in the manner required under 
        section 605(a)(6)) about a consumer, unless--
                  (A) if furnished in connection with an 
                insurance transaction, the consumer 
                affirmatively consents to the furnishing of the 
                report;
                  (B) if furnished for employment purposes or 
                in connection with a credit transaction--
                          (i) the information to be furnished 
                        is relevant to process or effect the 
                        employment or credit transaction; and
                          (ii) the consumer provides specific 
                        written consent for the furnishing of 
                        the report that describes in clear and 
                        conspicuous language the use for which 
                        the information will be furnished; or
                  (C) the information to be furnished pertains 
                solely to transactions, accounts, or balances 
                relating to debts arising from the receipt of 
                medical services, products, or [devises] 
                devices, where such information, other than 
                account status or amounts, is restricted or 
                reported using codes that do not identify, or 
                do not provide information sufficient to infer, 
                the specific provider or the nature of such 
                services, products, or devices, as provided in 
                section 605(a)(6).
          (2) Limitation on creditors.--Except as permitted 
        pursuant to paragraph (3)(C) or regulations prescribed 
        under paragraph (5)(A), a creditor shall not obtain or 
        use medical information (other than medical information 
        treated in the manner required under section 605(a)(6)) 
        pertaining to a consumer in connection with any 
        determination of the consumer`s eligibility, or 
        continued eligibility, for credit.
          (3) Actions authorized by federal law, insurance 
        activities and regulatory determinations.--Section 
        603(d)(3) shall not be construed so as to treat 
        information or any communication of information as a 
        consumer report if the information or communication is 
        disclosed--
                  (A) in connection with the business of 
                insurance or annuities, including the 
                activities described in section 18B of the 
                model Privacy of Consumer Financial and Health 
                Information Regulation issued by the National 
                Association of Insurance Commissioners (as in 
                effect on January 1, 2003);
                  (B) for any purpose permitted without 
                authorization under the Standards for 
                Individually Identifiable Health Information 
                promulgated by the Department of Health and 
                Human Services pursuant to the Health Insurance 
                Portability and Accountability Act of 1996, or 
                referred to under section 1179 of such Act, or 
                described in section 502(e) of Public Law 106-
                102; or
                  (C) as otherwise determined to be necessary 
                and appropriate, by regulation or order, by the 
                Bureau or the applicable State insurance 
                authority (with respect to any person engaged 
                in providing insurance or annuities).
          (4) Limitation on redisclosure of medical 
        information.--Any person that receives medical 
        information pursuant to paragraph (1) or (3) shall not 
        disclose such information to any other person, except 
        as necessary to carry out the purpose for which the 
        information was initially disclosed, or as otherwise 
        permitted by statute, regulation, or order.
          (5) Regulations and effective date for paragraph 
        (2).--
                  (A) Regulations required.--The Bureau may, 
                after notice and opportunity for comment, 
                prescribe regulations that permit transactions 
                under paragraph (2) that are determined to be 
                necessary and appropriate to protect legitimate 
                operational, transactional, risk, consumer, and 
                other needs (and which shall include permitting 
                actions necessary for administrative 
                verification purposes), consistent with the 
                intent of paragraph (2) to restrict the use of 
                medical information for inappropriate purposes.
          (6) Coordination with other laws.--No provision of 
        this subsection shall be construed as altering, 
        affecting, or superseding the applicability of any 
        other provision of Federal law relating to medical 
        confidentiality.

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

  (a) Information Excluded From Consumer Reports.--[Except as 
authorized under subsection (b), no] 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] 7 years.
  (2) [Civil suits, civil judgments, and records] 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 years.
  (4) Accounts placed for collection or charged to profit and 
loss which antedate the report by more than [seven years] 4 
years, except as provided in paragraph (8), (10), (11), (12), 
or (13), or as required by section 605C, 605D, 605E, or 605F.
  (5) Any other adverse item of information[, other than 
records of convictions of crimes] which antedates the report by 
more than [seven years] 4 years, except as required by section 
605C, 605D, 605E, or 605F.
          (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.
          (9) Civil suits and civil judgments (except as 
        provided in paragraph (8)) that, from date of entry, 
        antedate the report by more than 4 years or until the 
        governing statute of limitations has expired, whichever 
        is the longer period.
          (10) A civil suit or civil judgment--
                  (A) brought by a private education loan 
                holder that, from the date of successful 
                completion of credit restoration or 
                rehabilitation in accordance with the 
                requirements of section 605D or 605E, antedates 
                the report by 45 calendar days; or
                  (B) brought by a lender with respect to a 
                covered residential mortgage loan that 
                antedates the report by 45 calendar days.
          (11) Records of convictions of crimes which antedate 
        the report by more than 7 years.
          (12) Any other adverse item of information relating 
        to the collection of debt that did not arise from a 
        contract or an agreement to pay by a consumer, 
        including fines, tickets, and other assessments, as 
        determined by the Bureau, excluding tax liability.
          (13) Any other adverse item of information related to 
        a fully paid or settled debt that had been 
        characterized as delinquent, charged off, or in 
        collection which, from the date of payment or 
        settlement, antedates the report by more than 45 
        calendar days.
          (14) Any other adverse item of information related to 
        a fully paid or settled debt arising from the receipt 
        of medical services, products, or devices that had been 
        characterized as delinquent, charged off, or in 
        collection which, from the date of payment or 
        settlement, antedates the report by more than 45 
        calendar days.
          (15) Any information related to a debt arising from 
        the receipt of medical services, products, or devices, 
        if the date on which such debt was placed for 
        collection, charged to profit or loss, or subjected to 
        any similar action antedates the report by less than 
        365 calendar days.
          (16) Any information related to a debt arising from a 
        medically necessary procedure.
          (17) Information about inquiries made for a credit 
        report based on requests that the consumer reporting 
        agency verifies were initiated as the result of 
        identity theft, fraud, or other related crime.
  [(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)] (b) Running of Reporting Period.--
          (1) In general.--The [7-year period referred to in 
        paragraphs (4) and (6)] 4-year period referred to in 
        paragraphs (4) and (5) 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)] (c) 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)] (d) 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)] (e) 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)] (f) 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)] (g) 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. 605A. Identity theft prevention; fraud alerts and active duty 
                    alerts

  (a)  [One-Call] One-Year Fraud Alerts.--
          (1)  [Initial alerts] In general.--Upon the direct 
        request of a consumer, or an individual acting on 
        behalf of or as a personal representative of a 
        consumer, who asserts in good faith a suspicion that 
        the consumer has been or is about to become a victim of 
        fraud or related crime, including identity theft, or 
        harmed by the unauthorized disclosure of the consumer's 
        financial or personally identifiable information, a 
        consumer reporting agency described in section 603(p) 
        that maintains a file on the consumer and has received 
        appropriate proof of the identity of the requester 
        shall--
                  (A) include a fraud alert in the file of that 
                consumer, and also provide that alert along 
                with any credit score generated in using that 
                file, for a period of not less than 1 year, 
                beginning on the date of such request, unless 
                the consumer or such representative requests 
                that such fraud alert be removed before the end 
                of such period, and the agency has received 
                appropriate proof of the identity of the 
                requester for such purpose; [and]
                  (B) refer the information regarding the 1-
                year fraud alert under this paragraph to each 
                of the other consumer reporting agencies 
                described in section 603(p), in accordance with 
                procedures developed under section 621(f)[.]; 
                and
                  (C) upon the expiration of the 1-year period 
                described in subparagraph (A) or a subsequent 
                1-year period, and in response to a direct 
                request by the consumer or such representative, 
                continue the fraud alert for a period of 1 
                additional year if the information asserted in 
                this paragraph remains applicable.
          (2) Access to free reports and credit or educational 
        credit scores.--In any case in which a consumer 
        reporting agency includes a 1-year fraud alert in the 
        file of a consumer pursuant to this subsection, the 
        consumer reporting agency shall--
                  (A) disclose to the consumer that the 
                consumer may request a free copy of the file 
                and credit score or educational credit score of 
                the consumer pursuant to section 612(d); and
                  (B) provide to the consumer all disclosures 
                required to be made under section 609, without 
                charge to the consumer, not later than 3 
                business days after [any request described in 
                subparagraph (A)] the consumer reporting agency 
                includes the 1-year fraud alert in the file of 
                a consumer.
  (b)  [Extended] Seven-Year Alerts.--
          (1) In general.--Upon the direct request of a 
        consumer, or an individual acting on behalf of or as a 
        personal representative of a consumer, who submits an 
        identity theft report to a consumer reporting agency 
        described in section 603(p) that maintains a file on 
        the consumer, if the agency has received appropriate 
        proof of the identity of the requester, the agency 
        shall--
                  (A) include a fraud alert in the file of that 
                consumer, and also provide that alert along 
                with any credit score generated in using that 
                file, during the 7-year period beginning on the 
                date of such request, unless the consumer or 
                such representative requests that such fraud 
                alert be removed before the end of such period 
                and the agency has received appropriate proof 
                of the identity of the requester for such 
                purpose;
                  (B) during the [5-year period beginning on 
                the date of such request] such 7-year period, 
                exclude the consumer from any list of consumers 
                prepared by the consumer reporting agency and 
                provided to any third party to offer credit or 
                insurance to the consumer as part of a 
                transaction that was not initiated by the 
                consumer, unless the consumer or such 
                representative requests that such exclusion be 
                rescinded before the end of such period; [and]
                  (C) refer the information regarding the 
                [extended] 7-year fraud alert under this 
                paragraph to each of the other consumer 
                reporting agencies described in section 603(p), 
                in accordance with procedures developed under 
                section 621(f)[.]; and
                  (D) upon the expiration of such 7-year period 
                or a subsequent 7-year period, and in response 
                to a direct request by the consumer or such 
                representative, continue the fraud alert for a 
                period of 7 additional years if the consumer or 
                such representative submits an updated identity 
                theft report.
          (2) Access to free reports and credit or educational 
        credit scores.--In any case in which a consumer 
        reporting agency includes a fraud alert in the file of 
        a consumer pursuant to this subsection, the consumer 
        reporting agency shall--
                  [(A) disclose to the consumer that the 
                consumer may request 2 free copies of the file 
                of the consumer pursuant to section 612(d) 
                during the 12-month period beginning on the 
                date on which the fraud alert was included in 
                the file; and]
                  (A) disclose to the consumer that the 
                consumer may request a free copy of the file 
                and credit score or educational credit score of 
                the consumer pursuant to section 612(d) during 
                each 12-month period beginning on the date on 
                which the 7-year fraud alert was included in 
                the file and ending on the date of the last day 
                that the 7-year fraud alert applies to the 
                consumer's file; and
                  (B) provide to the consumer all disclosures 
                required to be made under section 609, without 
                charge to the consumer, not later than 3 
                business days after any request described in 
                subparagraph (A).
  (c) Active Duty Alerts.--[Upon the direct request]
          (1) In general._Upon the direct request  of an active 
        duty military consumer, or an individual acting on 
        behalf of or as a personal representative of an active 
        duty military consumer, a consumer reporting agency 
        described in section 603(p) that maintains a file on 
        the active duty military consumer and has received 
        appropriate proof of the identity of the requester 
        shall--
                  [(1)] (A) include an active duty alert in the 
                file of that active duty military consumer, and 
                also provide that alert along with any credit 
                score or educational credit score generated in 
                using that file, during a period of not less 
                than 12 months, or such longer period as the 
                Bureau shall determine, by regulation, 
                beginning on the date of the request, unless 
                the active duty military consumer or such 
                representative requests that such fraud alert 
                be removed before the end of such period, and 
                the agency has received appropriate proof of 
                the identity of the requester for such purpose;
                  [(2)] (B) during the 2-year period beginning 
                on the date of such request, exclude the active 
                duty military consumer from any list of 
                consumers prepared by the consumer reporting 
                agency and provided to any third party to offer 
                credit or insurance to the consumer as part of 
                a transaction that was not initiated by the 
                consumer, unless the consumer requests that 
                such exclusion be rescinded before the end of 
                such period; and
                  [(3)] (C) refer the information regarding the 
                active duty alert to each of the other consumer 
                reporting agencies described in section 603(p), 
                in accordance with procedures developed under 
                section 621(f).
          (2) Access to free reports and credit or educational 
        credit scores.--If a consumer reporting agency includes 
        an active duty alert in the file of an active duty 
        military consumer, the consumer reporting agency 
        shall--
                  (A) disclose to the active duty military 
                consumer that the active duty military consumer 
                may request a free copy of the file and credit 
                score or educational credit score of the active 
                duty military consumer pursuant to section 
                612(d), during each 12-month period beginning 
                on the date that the activity duty military 
                alert is requested and ending on the date of 
                the last day the active duty alert applies to 
                the file of the active duty military consumer; 
                and
                  (B) provide to the active duty military 
                consumer all disclosures required to be made 
                under section 609, without charge to the 
                consumer, not later than 3 business days after 
                any request described in subparagraph (A).
  [(d) Procedures.--Each consumer reporting agency described in 
section 603(p) shall establish policies and procedures to 
comply with this section, including procedures that inform 
consumers of the availability of initial, extended, and active 
duty alerts and procedures that allow consumers and active duty 
military consumers to request initial, extended, or active duty 
alerts (as applicable) in a simple and easy manner, including 
by telephone.]
  (d) Procedures.--Each consumer reporting agency described in 
section 603(p) shall include on the webpage required under 
subsection (i) policies and procedures to comply with this 
section, including policies and procedures--
          (1) that inform consumers of the availability of 1-
        year fraud alerts, 7-year fraud alerts, active duty 
        alerts, and security freezes (as applicable);
          (2) that allow consumers to request 1-year fraud 
        alerts, 7-year fraud alerts, and active duty alerts (as 
        applicable) and to place, temporarily lift, or fully 
        remove a security freeze in a simple and easy manner; 
        and
          (3) for asserting in good faith a suspicion that the 
        consumer has been or is about to become a victim of 
        identity theft, fraud, or a related crime, or harmed by 
        the unauthorized disclosure of the consumer's financial 
        or personally identifiable information, for a consumer 
        seeking a 1-year fraud alert or security freeze.
  (e) Referrals of Alerts.--Each consumer reporting agency 
described in section 603(p) that receives a referral of a 1-
year or 7-year fraud alert or active duty alert from another 
consumer reporting agency pursuant to this section shall, as 
though the agency received the request from the consumer 
directly, follow the procedures required under--
          (1) paragraphs (1)(A) and (2) of subsection (a), in 
        the case of a referral under subsection (a)(1)(B);
          (2) paragraphs (1)(A), (1)(B), and (2) of subsection 
        (b), in the case of a referral under subsection 
        (b)(1)(C); and
          (3) paragraphs (1) and (2) of subsection (c), in the 
        case of a referral under subsection (c)(3).
  (f) Duty of Reseller To Reconvey Alert.--A reseller shall 
include in its report any fraud alert [or active duty alert] 
active duty alert, or security freeze (as applicable) placed in 
the file of a consumer pursuant to this section by another 
consumer reporting agency.
  (g) Duty of Other Consumer Reporting Agencies To Provide 
Contact Information.--If a consumer contacts any consumer 
reporting agency that is not described in section 603(p) to 
communicate a suspicion that the consumer has been or is about 
to become a victim of fraud or related crime, including 
identity theft, or has been harmed by the unauthorized 
disclosure of the consumer's financial or personally 
identifiable information, or to inform such agency of the 
consumer's participation in credit restoration or 
rehabilitation under section 605C, 605D, or 605E, the agency 
shall provide information to the consumer on how to contact the 
Bureau and the consumer reporting agencies described in section 
603(p) to obtain more detailed information and request alerts 
or security freezes under this section.
  (h) Limitations on Use of Information for Credit 
Extensions.--
          (1) Requirements for [initial] 1-year and active duty 
        alerts.--
                  (A) Notification.--Each [initial] 1-year 
                fraud alert and active duty alert under this 
                section shall include information that notifies 
                all prospective users of a consumer report on 
                the consumer to which the alert relates that 
                the consumer does not authorize the 
                establishment of any new credit plan or 
                extension of credit, other than under an open-
                end credit plan (as defined in section 103(i)), 
                in the name of the consumer, or issuance of an 
                additional card on an existing credit account 
                requested by a consumer, or any increase in 
                credit limit on an existing credit account 
                requested by a consumer, except in accordance 
                with subparagraph (B).
                  (B) Limitation on users.--
                          (i) In general.--No prospective user 
                        of a consumer report that includes an 
                        [initial] 1-year fraud alert or an 
                        active duty alert in accordance with 
                        this section may establish a new credit 
                        plan or extension of credit, other than 
                        under an open-end credit plan (as 
                        defined in section 103(i)), in the name 
                        of the consumer, or issue an additional 
                        card on an existing credit account 
                        requested by a consumer, or grant any 
                        increase in credit limit on an existing 
                        credit account requested by a consumer, 
                        unless the user utilizes reasonable 
                        policies and procedures to form a 
                        reasonable belief that the user knows 
                        the identity of the person making the 
                        request.
                          (ii) Verification.--If a consumer 
                        requesting the alert has specified a 
                        telephone number to be used for 
                        identity verification purposes, before 
                        authorizing any new credit plan or 
                        extension described in clause (i) in 
                        the name of such consumer, a user of 
                        such consumer report shall contact the 
                        consumer using that telephone number or 
                        take reasonable steps to verify the 
                        consumer's identity and confirm that 
                        the application for a new credit plan 
                        is not the result of identity theft.
          (2) Requirements for [extended] 7-year alerts.--
                  (A) Notification.--Each [extended] 7-year 
                alert under this section shall include 
                information that provides all prospective users 
                of a consumer report relating to a consumer 
                with--
                          (i) notification that the consumer 
                        does not authorize the establishment of 
                        any new credit plan or extension of 
                        credit described in clause (i), other 
                        than under an open-end credit plan (as 
                        defined in section 103(i)), in the name 
                        of the consumer, or issuance of an 
                        additional card on an existing credit 
                        account requested by a consumer, or any 
                        increase in credit limit on an existing 
                        credit account requested by a consumer, 
                        except in accordance with subparagraph 
                        (B); and
                          (ii) a telephone number or other 
                        reasonable contact method designated by 
                        the consumer.
                  (B) Limitation on users.--No prospective user 
                of a consumer report or of a credit score 
                generated using the information in the file of 
                a consumer that includes an [extended] 7-year 
                fraud alert in accordance with this section may 
                establish a new credit plan or extension of 
                credit, other than under an open-end credit 
                plan (as defined in section 103(i)), in the 
                name of the consumer, or issue an additional 
                card on an existing credit account requested by 
                a consumer, or any increase in credit limit on 
                an existing credit account requested by a 
                consumer, unless the user contacts the consumer 
                in person or using the contact method described 
                in subparagraph (A)(ii) to confirm that the 
                application for a new credit plan or increase 
                in credit limit, or request for an additional 
                card is not the result of identity theft.
  (i)  [National Security Freeze.--] Security Freezes for 
Consumer Reports._
          (1) Definitions.--For purposes of this subsection:
                  (A) The term ``consumer reporting agency'' 
                means a consumer reporting agency described in 
                section 603(p).
                  (B) The term ``proper identification'' has 
                the meaning of such term as used under section 
                610.
                  (C) The term ``security freeze'' means a 
                restriction that prohibits a consumer reporting 
                agency from disclosing the contents of a 
                consumer report that is subject to such 
                security freeze to any person requesting the 
                consumer report.
          (2) Placement of security freeze.--
                  (A) In general.--Upon receiving a direct 
                request from a consumer that a consumer 
                reporting agency place a security freeze, and 
                upon receiving proper identification from the 
                consumer, the consumer reporting agency shall, 
                free of charge, place the security freeze not 
                later than--
                          (i) in the case of a request that is 
                        by toll-free telephone or secure 
                        electronic means, 1 business day after 
                        receiving the request directly from the 
                        consumer; or
                          (ii) in the case of a request that is 
                        by mail, 3 business days after 
                        receiving the request directly from the 
                        consumer.
                  (B) Confirmation and additional 
                information.--Not later than 5 business days 
                after placing a security freeze under 
                subparagraph (A), a consumer reporting agency 
                shall--
                          (i) send confirmation of the 
                        placement to the consumer; and
                          (ii) inform the consumer of--
                                  (I) the process by which the 
                                consumer may remove the 
                                security freeze, including a 
                                mechanism to authenticate the 
                                consumer; and
                                  (II) the consumer's right 
                                described in section 
                                615(d)(1)(D).
                  (C) Notice to third parties.--A consumer 
                reporting agency may advise a third party that 
                a security freeze has been placed with respect 
                to a consumer under subparagraph (A).
          (3) Removal of security freeze.--
                  (A) In general.--A consumer reporting agency 
                shall remove a security freeze placed on the 
                consumer report of a consumer only in the 
                following cases:
                          (i) Upon the direct request of the 
                        consumer.
                          (ii) The security freeze was placed 
                        due to a material misrepresentation of 
                        fact by the consumer.
                  (B) Notice if removal not by request.--If a 
                consumer reporting agency removes a security 
                freeze under subparagraph (A)(ii), the consumer 
                reporting agency shall notify the consumer in 
                writing prior to removing the security freeze.
                  (C) Removal of security freeze by consumer 
                request.--Except as provided in subparagraph 
                (A)(ii), a security freeze shall remain in 
                place until the consumer directly requests that 
                the security freeze be removed. Upon receiving 
                a direct request from a consumer that a 
                consumer reporting agency remove a security 
                freeze, and upon receiving proper 
                identification from the consumer, the consumer 
                reporting agency shall, free of charge, remove 
                the security freeze not later than--
                          (i) in the case of a request that is 
                        by toll-free telephone or secure 
                        electronic means, 1 hour after 
                        receiving the request for removal; or
                          (ii) in the case of a request that is 
                        by mail, 3 business days after 
                        receiving the request for removal.
                  (D) Third-party requests.--If a third party 
                requests access to a consumer report of a 
                consumer with respect to which a security 
                freeze is in effect, where such request is in 
                connection with an application for credit, and 
                the consumer does not allow such consumer 
                report to be accessed, the third party may 
                treat the application as incomplete.
                  (E) Temporary removal of security freeze.--
                [Upon receiving a direct request from a 
                consumer under subparagraph (A)(i), if the 
                consumer requests a temporary removal of a 
                security freeze, the consumer reporting agency 
                shall, in accordance with subparagraph (C),] 
                Upon receiving a direct request from a consumer 
                for a temporary removal of a security freeze, a 
                consumer reporting agency shall remove the 
                security freeze for the period of time 
                specified by the consumer.
          (4) Exceptions.--A security freeze shall not apply to 
        the making of a consumer report for use of the 
        following:
                  [(A) A person or entity, or a subsidiary, 
                affiliate, or agent of that person or entity, 
                or an assignee of a financial obligation owed 
                by the consumer to that person or entity, or a 
                prospective assignee of a financial obligation 
                owed by the consumer to that person or entity 
                in conjunction with the proposed purchase of 
                the financial obligation, with which the 
                consumer has or had prior to assignment an 
                account or contract including a demand deposit 
                account, or to whom the consumer issued a 
                negotiable instrument, for the purposes of 
                reviewing the account or collecting the 
                financial obligation owed for the account, 
                contract, or negotiable instrument. For 
                purposes of this subparagraph, ``reviewing the 
                account'' includes activities related to 
                account maintenance, monitoring, credit line 
                increases, and account upgrades and 
                enhancements.]
                  (A) A person, or the person's subsidiary, 
                affiliate, agent, subcontractor, or assignee 
                with whom the consumer has, or prior to 
                assignment had, an authorized account, 
                contract, or debtor-creditor relationship for 
                the purposes of reviewing the active account or 
                collecting the financial obligation owed on the 
                account, contract, or debt.
                  (B) Any Federal, State, or local agency, law 
                enforcement agency, trial court, or private 
                collection agency acting pursuant to a court 
                order, warrant, or subpoena.
                  (C) A child support agency acting pursuant to 
                part D of title IV of the Social Security Act 
                (42 U.S.C. 651 et seq.).
                  (D) A Federal agency or a State or its agents 
                or assigns acting to investigate fraud or 
                acting to investigate or collect delinquent 
                taxes or unpaid court orders or to fulfill any 
                of its other statutory responsibilities, 
                provided such responsibilities are consistent 
                with a permissible purpose under section 604.
                  [(E) By a person using credit information for 
                the purposes described under section 604(c).]
                  [(F)] (E) Any person or entity administering 
                a credit file monitoring subscription or 
                similar service to which the consumer has 
                subscribed.
                  [(G)] (F) Any person or entity for the 
                purpose of providing a consumer with a copy of 
                the consumer's consumer report or credit score, 
                upon the request of the consumer.
                  [(H)] (G) Any person using the information in 
                connection with the underwriting of insurance.
                  [(I) Any person using the information for 
                employment, tenant, or background screening 
                purposes.]
                  [(J)] (H) Any person using the information 
                for assessing, verifying, or authenticating a 
                consumer's identity for purposes other than the 
                granting of credit, or for investigating or 
                preventing actual or potential fraud.
          (5) Notice of rights.--At any time a consumer is 
        required to receive a summary of rights required under 
        section 609, the following notice shall be included:

         ``CONSUMERS HAVE THE RIGHT TO OBTAIN A SECURITY FREEZE

   `` `You have a right to place a `security freeze' on your 
credit report, which will prohibit a consumer reporting agency 
from releasing information in your credit report without your 
express authorization. The security freeze is designed to 
prevent credit, loans, and services from being approved in your 
name without your consent. However, you should be aware that 
using a security freeze to take control over who gets access to 
the personal and financial information in your credit report 
may delay, interfere with, or prohibit the timely approval of 
any subsequent request or application you make regarding a new 
loan, credit, mortgage, or any other account involving the 
extension of credit.'
   `` `As an alternative to a security freeze, you have the 
right to place an initial or extended fraud alert on your 
credit file at no cost. An initial fraud alert is a 1-year 
alert that is placed on a consumer's credit file. Upon seeing a 
fraud alert display on a consumer's credit file, a business is 
required to take steps to verify the consumer's identity before 
extending new credit. If you are a victim of identity theft, 
you are entitled to an extended fraud alert, which is a fraud 
alert lasting 7 years.'
   `` `A security freeze does not apply to a person or entity, 
or its affiliates, or collection agencies acting on behalf of 
the person or entity, with which you have an existing account 
that requests information in your credit report for the 
purposes of reviewing or collecting the account. Reviewing the 
account includes activities related to account maintenance, 
monitoring, credit line increases, and account upgrades and 
enhancements.'''.
          (6) Webpage.--
                  (A) Consumer reporting agencies.--A consumer 
                reporting agency shall establish a webpage 
                that--
                          (i) allows a consumer to request a 
                        security freeze;
                          (ii) allows a consumer to request an 
                        [initial fraud alert] 1-year fraud 
                        alert;
                          (iii) allows a consumer to request an 
                        [extended fraud alert] 7-year fraud 
                        alert;
                          (iv) allows a consumer to request an 
                        active duty [fraud] alert;
                          (v) allows a consumer to opt-out of 
                        the use of information in a consumer 
                        report to send the consumer a 
                        solicitation of credit or insurance, in 
                        accordance with section 615(d); and
                          (vi) shall not be the only mechanism 
                        by which a consumer may request a 
                        security freeze.
                  (B) FTC.--The Federal Trade Commission shall 
                establish a single webpage that includes a link 
                to each webpage established under subparagraph 
                (A) within the Federal Trade Commission's 
                website www.Identitytheft.gov, or a successor 
                website.
          (7) Relation to state law.--This subsection does not 
        modify or supersede the laws of any State relating to 
        security freezes or other similar actions, except to 
        the extent those laws are inconsistent with any 
        provision of this title, and then only to the extent of 
        the inconsistency. For purposes of this subsection, a 
        term or provision of a State law is not inconsistent 
        with the provisions of this subsection if the term or 
        provision affords greater protection to the consumer 
        than the protection provided under this subsection as 
        determined by the Bureau.
  (j) National Protection for Files and Credit Records of 
Protected Consumers.--
          (1) Definitions.--As used in this subsection:
                  (A) The term ``consumer reporting agency'' 
                means a consumer reporting agency described in 
                section 603(p).
                  (B) The term ``protected consumer'' means an 
                individual who is--
                          (i) under the age of 16 years at the 
                        time a request for the placement of a 
                        security freeze is made; or
                          (ii) [an incapacitated person or a 
                        protected person] a person for whom a 
                        guardian or conservator has been 
                        appointed.
                  (C) The term ``protected consumer's 
                representative'' means a person who provides to 
                a consumer reporting agency sufficient proof of 
                authority to act on behalf of a protected 
                consumer.
                  (D) The term ``record'' means a compilation 
                of information that--
                          (i) identifies a protected consumer;
                          (ii) is created by a consumer 
                        reporting agency solely for the purpose 
                        of complying with this subsection; and
                          (iii) may not be created or used to 
                        consider the protected consumer's 
                        credit worthiness, credit standing, 
                        credit capacity, character, general 
                        reputation, personal characteristics, 
                        or mode of living.
                  [(E) The term ``security freeze'' means a 
                restriction that prohibits a consumer reporting 
                agency from disclosing the contents of a 
                consumer report that is the subject of such 
                security freeze or, in the case of a protected 
                consumer for whom the consumer reporting agency 
                does not have a file, a record that is subject 
                to such security freeze to any person 
                requesting the consumer report for the purpose 
                of opening a new account involving the 
                extension of credit.]
                  (E) The term ``security freeze''--
                          (i) has the meaning given in 
                        subsection (i)(1)(C); and
                          (ii) with respect to a protected 
                        consumer for whom the consumer 
                        reporting agency does not have a file, 
                        means a record that is subject to a 
                        security freeze that a consumer 
                        reporting agency is prohibited from 
                        disclosing to any person requesting the 
                        consumer report for the purpose of 
                        opening a new account involving the 
                        extension of credit.
                  (F) The term ``sufficient proof of 
                authority'' means documentation that shows a 
                protected consumer's representative has 
                authority to act on behalf of a protected 
                consumer and includes--
                          (i) an order issued by a court of 
                        law;
                          (ii) a lawfully executed and valid 
                        power of attorney;
                          (iii) a document issued by a Federal, 
                        State, or local government agency in 
                        the United States showing proof of 
                        parentage, including a birth 
                        certificate; or
                          (iv) with respect to a protected 
                        consumer who has been placed in a 
                        foster care setting, a written 
                        communication from a county welfare 
                        department or its agent or designee, or 
                        a county probation department or its 
                        agent or designee, certifying that the 
                        protected consumer is in a foster care 
                        setting under its jurisdiction.
                  (G) The term ``sufficient proof of 
                identification'' means information or 
                documentation that identifies a protected 
                consumer and a protected consumer's 
                representative and includes--
                          (i) a social security number or a 
                        copy of a social security card issued 
                        by the Social Security Administration;
                          (ii) a certified or official copy of 
                        a birth certificate issued by the 
                        entity authorized to issue the birth 
                        certificate; or
                          (iii) a copy of a driver's license, 
                        an identification card issued by the 
                        motor vehicle administration, or any 
                        other government issued identification.
          (2) Placement of security freeze for a protected 
        consumer.--
                  (A) In general.--Upon receiving a direct 
                request from a protected consumer's 
                representative that a consumer reporting agency 
                place a security freeze, and upon receiving 
                sufficient proof of identification and 
                sufficient proof of authority, the consumer 
                reporting agency shall, free of charge, place 
                the security freeze not later than--
                          (i) in the case of a request that is 
                        by toll-free telephone or secure 
                        electronic means, 1 business day after 
                        receiving the request directly from the 
                        protected consumer's representative; or
                          (ii) in the case of a request that is 
                        by mail, 3 business days after 
                        receiving the request directly from the 
                        protected consumer's representative.
                  (B) Confirmation and additional 
                information.--Not later than 5 business days 
                after placing a security freeze under 
                subparagraph (A), a consumer reporting agency 
                shall--
                          (i) send confirmation of the 
                        placement to the protected consumer's 
                        representative; and
                          (ii) inform the protected consumer's 
                        representative of the process by which 
                        the protected consumer may remove the 
                        security freeze, including a mechanism 
                        to authenticate the protected 
                        consumer's representative.
                  (C) Creation of file.--If a consumer 
                reporting agency does not have a file 
                pertaining to a protected consumer when the 
                consumer reporting agency receives a direct 
                request under subparagraph (A), the consumer 
                reporting agency shall create a record for the 
                protected consumer.
          (3) Prohibition on release of record or file of 
        protected consumer.--After a security freeze has been 
        placed under paragraph (2)(A), and unless the security 
        freeze is removed in accordance with this subsection, a 
        consumer reporting agency may not release the protected 
        consumer's consumer report, any information derived 
        from the protected consumer's consumer report, or any 
        record created for the protected consumer.
          (4) Removal of a protected consumer security 
        freeze.--
                  (A) In general.--A consumer reporting agency 
                shall remove a security freeze placed on the 
                consumer report of a protected consumer only in 
                the following cases:
                          (i) Upon the direct request of the 
                        protected consumer's representative.
                          (ii) Upon the direct request of the 
                        protected consumer, if the protected 
                        consumer is not under the age of 16 
                        years at the time of the request.
                          (iii) The security freeze was placed 
                        due to a material misrepresentation of 
                        fact by the protected consumer's 
                        representative.
                  (B) Notice if removal not by request.--If a 
                consumer reporting agency removes a security 
                freeze under subparagraph (A)(iii), the 
                consumer reporting agency shall notify the 
                protected consumer's representative in writing 
                prior to removing the security freeze.
                  (C) Removal of freeze by request.--Except as 
                provided in subparagraph (A)(iii), a security 
                freeze shall remain in place until a protected 
                consumer's representative or protected consumer 
                described in subparagraph (A)(ii) directly 
                requests that the security freeze be removed. 
                Upon receiving a direct request from the 
                protected consumer's representative or 
                protected consumer described in subparagraph 
                (A)(ii) that a consumer reporting agency remove 
                a security freeze, and upon receiving 
                sufficient proof of identification and 
                sufficient proof of authority, the consumer 
                reporting agency shall, free of charge, remove 
                the security freeze not later than--
                          (i) in the case of a request that is 
                        by toll-free telephone or secure 
                        electronic means, 1 hour after 
                        receiving the request for removal; or
                          (ii) in the case of a request that is 
                        by mail, 3 business days after 
                        receiving the request for removal.
                  (D) Temporary removal of security freeze.--
                Upon receiving a direct request from [a 
                protected consumer or a protected consumer's 
                representative under subparagraph (A)(i)] a 
                protected consumer described under subparagraph 
                (A)(ii) or a protected consumer's 
                representative, if the protected consumer or 
                protected consumer's representative requests a 
                temporary removal of a security freeze, the 
                consumer reporting agency shall, in accordance 
                with subparagraph (C), remove the security 
                freeze for the period of time specified by the 
                protected consumer or protected consumer's 
                representative.
  (k) Credit Monitoring.--
          (1) Definitions.--In this subsection:
                  (A) The term ``active duty military 
                consumer'' includes a member of the National 
                Guard.
                  (B) The term ``National Guard'' has the 
                meaning given the term in section 101(c) of 
                title 10, United States Code.
          (2) Credit monitoring.--A consumer reporting agency 
        described in section 603(p) shall provide a free 
        electronic credit monitoring service that, at a 
        minimum, notifies a consumer of material additions or 
        modifications to the file of the consumer at the 
        consumer reporting agency to any consumer who provides 
        to the consumer reporting agency--
                  (A) appropriate proof that the consumer is an 
                active duty military consumer; and
                  (B) contact information of the consumer.
          (3) Rulemaking.--Not later than 1 year after the date 
        of enactment of this subsection, the Federal Trade 
        Commission shall promulgate regulations regarding the 
        requirements of this subsection, which shall at a 
        minimum include--
                  (A) a definition of an electronic credit 
                monitoring service and material additions or 
                modifications to the file of a consumer; and
                  (B) what constitutes appropriate proof.
          [(4) Applicability.--
                  [(A) Sections 616 and 617 shall not apply to 
                any violation of this subsection.
                  [(B) This subsection shall be enforced 
                exclusively under section 621 by the Federal 
                agencies and Federal and State officials 
                identified in that section.]
[Section 208(a)(1) of H.R. 3622 (as reported) amends subsection 
(k) by striking paragraph (4) on the date of enactment. 
Subsection (k), as amended, is further amended by section 
208(b), effective two years after the date of enactment, to 
read as follows:]
  [(k) Credit Monitoring.--
          [(1) Definitions.--In this subsection:
                  [(A) The term ``active duty military 
                consumer'' includes a member of the National 
                Guard.
                  [(B) The term ``National Guard'' has the 
                meaning given the term in section 101(c) of 
                title 10, United States Code.
          [(2) Credit monitoring.--A consumer reporting agency 
        described in section 603(p) shall provide a free 
        electronic credit monitoring service that, at a 
        minimum, notifies a consumer of material additions or 
        modifications to the file of the consumer at the 
        consumer reporting agency to any consumer who provides 
        to the consumer reporting agency--
                  [(A) appropriate proof that the consumer is 
                an active duty military consumer; and
                  [(B) contact information of the consumer.
          [(3) Rulemaking.--Not later than 1 year after the 
        date of enactment of this subsection, the Federal Trade 
        Commission shall promulgate regulations regarding the 
        requirements of this subsection, which shall at a 
        minimum include--
                  [(A) a definition of an electronic credit 
                monitoring service and material additions or 
                modifications to the file of a consumer; and
                  [(B) what constitutes appropriate proof.
  (k) Credit Monitoring and Identity Theft Protection 
Services.--
          (1) In general.--Upon the direct request of a 
        consumer, a consumer reporting agency described in 
        section 603(p) that maintains a file on the consumer 
        and has received appropriate proof of the identity of 
        the requester (as described in section 1022.123 of 
        title 12, Code of Federal Regulations) shall provide 
        the consumer with credit monitoring and identity theft 
        protection services not later than 1 business day after 
        receiving such request sent by postal mail, toll-free 
        telephone, or secure electronic means as established by 
        the agency.
          (2) Fees.--
                  (A) Classes of consumers.--The Bureau may 
                establish classes of consumers eligible to 
                receive credit monitoring and identity theft 
                protection services free of charge.
                  (B) No fee.--A consumer reporting agency 
                described in section 603(p) may not charge a 
                consumer a fee to receive credit monitoring and 
                identity theft protection services if the 
                consumer or a representative of the consumer--
                          (i) asserts in good faith a suspicion 
                        that the consumer has been or is about 
                        to become a victim of identity theft, 
                        fraud, or a related crime, or harmed by 
                        the unauthorized disclosure of the 
                        consumer's financial or personally 
                        identifiable information;
                          (ii) is unemployed and intends to 
                        apply for employment in the 60-day 
                        period beginning on the date on which 
                        the request is made;
                          (iii) is a recipient of public 
                        welfare assistance;
                          (iv) is an active duty military 
                        consumer or a member of the National 
                        Guard (as defined in section 101(c) of 
                        title 10, United States Code);
                          (v) is 65 years of age or older; or
                          (vi) is a member of a class 
                        established by the Bureau under 
                        subparagraph (A).
          (3) Bureau rulemaking.--The Bureau shall issue 
        regulations--
                  (A) to define the scope of credit monitoring 
                and identity theft protection services required 
                under this subsection; and
                  (B) to set a fair and reasonable fee that a 
                consumer reporting agency may charge a consumer 
                (other than a consumer described under 
                paragraph (2)(B)) for such credit monitoring 
                and identity theft protection services.
          (4) Relation to state law.--This subsection does not 
        modify or supersede of the laws of any State relating 
        to credit monitoring and identity theft protection 
        services or other similar actions, except to the extent 
        those laws are inconsistent with any provision of this 
        title, and then only to the extent of the 
        inconsistency. For purposes of this subsection, a term 
        or provision of a State law is not inconsistent with 
        the provisions of this subsection if the term or 
        provision affords greater protection to the consumer 
        than the protection provided under this subsection as 
        determined by the Bureau.

           *       *       *       *       *       *       *


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

  (a) In General.--A consumer reporting agency may not furnish 
any consumer report containing any adverse item of information 
relating to a covered residential mortgage loan (including the 
origination and servicing of such a loan, any loss mitigation 
activities related to such a loan, and any foreclosure, deed in 
lieu of foreclosure, or short sale related to such a loan), if 
the action or inaction to which the item of information 
relates--
          (1) resulted from an unfair, deceptive, or abusive 
        act or practice, or a fraudulent, discriminatory, or 
        illegal activity of a financial institution, as 
        determined by the Bureau or a court of competent 
        jurisdiction; or
          (2) is related to an unfair, deceptive, or abusive 
        act, practice, or a fraudulent, discriminatory, or 
        illegal activity of a financial institution that is the 
        subject of a settlement agreement initiated on behalf 
        of a consumer or consumers and that is between the 
        financial institution and an agency or department of a 
        local, State, or Federal Government, regardless of 
        whether such settlement includes an admission of 
        wrongdoing.
  (b) Covered Residential Mortgage Loan Defined.--In this 
section, the term ``covered residential mortgage loan'' means 
any loan primarily for personal, family, or household use that 
is secured by a mortgage, deed of trust, or other equivalent 
consensual security interest on a dwelling (as defined in 
section 103(w) of the Truth in Lending Act), including a loan 
in which the proceeds will be used for--
          (1) a manufactured home (as defined in section 603 of 
        the Housing and Community Development Act of 1974 (42 
        U.S.C. 5402));
          (2) any installment sales contract, land contract, or 
        contract for deed on a residential property; or
          (3) a reverse mortgage transaction (as defined in 
        section 103 of the Truth in Lending Act).

Sec. 605D. Private education loan credit restoration for defrauded 
                    student borrowers who attend certain proprietary 
                    educational institution or career education 
                    programs

  (a) Process for Certification as a Qualifying Private 
Education Loan Borrower.--
          (1) In general.--A consumer may submit a request to 
        the Bureau, along with a defraudment claim, to be 
        certified as a qualifying private education loan 
        borrower with respect to a private education loan.
          (2) Certification.--The Bureau shall certify a 
        consumer described in paragraph (1) as a qualifying 
        private education loan borrower with respect to a 
        private education loan if the Bureau or a court of 
        competent jurisdiction determines that the consumer has 
        a valid defraudment claim with respect to such loan.
  (b) Removal of Adverse Information.--Upon receipt of a notice 
described in subsection (d)(5), a consumer reporting agency 
shall remove any adverse information relating to any private 
education loan with respect to which a consumer is a qualifying 
private education loan borrower from any consumer report within 
45 calendar days of receipt of such notification.
  (c) Disclosure.--The Bureau shall disclose the results of a 
certification determination in writing to the consumer that 
provides a clear and concise explanation of the basis for the 
determination of whether such consumer is a qualifying private 
education loan borrower with respect to a private education 
loan and, as applicable, an explanation of the consumer's right 
to have adverse information relating to such loan removed from 
their consumer report by a consumer reporting agency.
  (d) Procedures.--The Bureau shall--
          (1) establish procedures for a consumer to submit a 
        request described in subsection (a);
          (2) establish procedures to efficiently review, 
        accept, and process such a request;
          (3) develop ongoing outreach initiatives and 
        education programs to inform consumers of the 
        circumstances under which such consumer may be eligible 
        to be certified as a qualifying private education loan 
        borrower with respect to a private education loan;
          (4) establish procedures, including the manner, form, 
        and content of the notice informing a private 
        educational loan holder of the prohibition on reporting 
        any adverse information relating to a private education 
        loan with respect to which a consumer is a qualifying 
        private education loan borrower; and
          (5) establish procedures, including the manner, form, 
        and content of the notice informing a consumer 
        reporting agency of the obligation to remove any 
        adverse information as described in subsection (c).
  (e) Standardized Reporting Codes.--A consumer reporting 
agency shall develop standardized reporting codes for use by 
private education loan holders to identify and report a 
qualifying private education loan borrower's status of a 
request to remove any adverse information relating to any 
private education loan with respect to which such consumer is a 
qualifying private education loan borrower. A consumer report 
in which a person furnishes such codes shall be deemed to 
comply with the requirements for accuracy and completeness 
required under sections 623(a)(1) and 630. Such codes shall not 
appear on any report provided to a third party, and shall be 
removed from the consumer's credit report upon the successful 
restoration of the consumer's credit under this section.
  (f) Defraudment Claim Defined.--For purposes of this section, 
the term ``defraudment claim'' means a claim made with respect 
to a consumer who is a borrower of a private education loan 
with respect to a proprietary educational institution or career 
education program in which the consumer alleges that--
          (1) the proprietary educational institution or career 
        education program--
                  (A) engaged in an unfair, deceptive, or 
                abusive act or practice, or a fraudulent, 
                discriminatory, or illegal activity--
                          (i) as defined by State law of the 
                        State in which the proprietary 
                        educational institution or career 
                        education program is headquartered or 
                        maintains or maintained significant 
                        operations; or
                          (ii) under Federal law;
                  (B) is the subject of an enforcement order, a 
                settlement agreement, a memorandum of 
                understanding, a suspension of tuition 
                assistance, or any other action relating to an 
                unfair, deceptive, or abusive act or practice 
                that is between the proprietary educational 
                institution or career education program and an 
                agency or department of a local, State, or 
                Federal Government; or
                  (C) misrepresented facts to students or 
                accrediting agencies or associations about 
                graduation or gainful employment rates in 
                recognized occupations or failed to provide the 
                coursework necessary for students to 
                successfully obtain a professional 
                certification or degree from the proprietary 
                educational institution or career education 
                program; or
          (2) the consumer has submitted a valid defense to 
        repayment claim with respect to such loan, as 
        determined by the Secretary of Education.

Sec. 605E. Financial abuse prevention

  For a consumer who is the victim of intentionally abusive or 
harmful financial behavior, as determined by a court of 
competent jurisdiction including a family court, juvenile 
court, or other court with personal jurisdiction, that was 
conducted by a spouse, family or household member, caregiver, 
or person with whom such consumer had a dating relationship in 
a manner which resulted in the inclusion of an adverse item of 
information on the consumer report of the consumer, and the 
consumer did not participate in or consent to such behavior, 
the consumer may apply to a court of competent jurisdiction, 
including a family court, juvenile court, or other court with 
personal jurisdiction, for an order to require the removal of 
such adverse information from the consumer's file maintained by 
any consumer reporting agency.

           *       *       *       *       *       *       *


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)] consumer 
                reporting agency described in subsection (p) or 
                (x) of section 603, a toll-free telephone 
                number established by [the agency] such an 
                agency, at which personnel are accessible to 
                consumers during normal business hours and an 
                Internet website address;
                  (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] outdated, required to be 
                removed, 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] claim of fraudulent activity 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] 
        any fraudulent transaction 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] 
                fraudulent activity--
                          [(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.]
                          (i) a copy of an identity theft 
                        report; 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] 
                fraudulent activity 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)] (8) 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)] (9) 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)] (10) 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], fraud, or 
        a related crime.
          [(12)] (11) Effective date.--This subsection shall 
        become effective 180 days after the date of enactment 
        of this subsection.
          [(13)] (12) 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.
  (g) Disclosure of Credit Scores by Certain Mortgage 
Lenders.--
          (1) In general.--Any person who makes or arranges 
        loans and who uses a consumer credit score, as defined 
        in subsection (f), in connection with an application 
        initiated or sought by a consumer for a closed end loan 
        or the establishment of an open end loan for a consumer 
        purpose that is secured by 1 to 4 units of residential 
        real property (hereafter in this subsection referred to 
        as the ``lender'') shall provide the following to the 
        consumer as soon as reasonably practicable:
                  (A) Information required under subsection 
                (f).--
                          (i) In general.--A copy of the 
                        information identified in subsection 
                        (f) that was obtained from a consumer 
                        reporting agency or was developed and 
                        used by the user of the information.
                          (ii) Notice under subparagraph (d).--
                        In addition to the information provided 
                        to it by a third party that provided 
                        the credit score or scores, a lender is 
                        only required to provide the notice 
                        contained in subparagraph (D).
                  (B) Disclosures in case of automated 
                underwriting system.--
                          (i) In general.--If a person that is 
                        subject to this subsection uses an 
                        automated underwriting system to 
                        underwrite a loan, that person may 
                        satisfy the obligation to provide a 
                        credit score by disclosing a credit 
                        score and associated key factors 
                        supplied by a consumer reporting 
                        agency.
                          (ii) Numerical credit score.--
                        However, if a numerical credit score is 
                        generated by an automated underwriting 
                        system used by an enterprise, and that 
                        score is disclosed to the person, the 
                        score shall be disclosed to the 
                        consumer consistent with subparagraph 
                        (C).
                          (iii) Enterprise defined.--For 
                        purposes of this subparagraph, the term 
                        ``enterprise'' has the same meaning as 
                        in paragraph (6) of section 1303 of the 
                        Federal Housing Enterprises Financial 
                        Safety and Soundness Act of 1992.
                  (C) Disclosures of credit scores not obtained 
                from a consumer reporting agency.--A person 
                that is subject to the provisions of this 
                subsection and that uses a credit score, other 
                than a credit score provided by a consumer 
                reporting agency, may satisfy the obligation to 
                provide a credit score by disclosing a credit 
                score and associated key factors supplied by a 
                consumer reporting agency.
                  (D) Notice to home loan applicants.--A copy 
                of the following notice, which shall include 
                the name, address, and telephone number of each 
                consumer reporting agency providing a credit 
                score that was used:

                  ``notice to the home loan applicant

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

           *       *       *       *       *       *       *


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);
          (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).
          (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 
        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] this subsection.
                  (B) Administrative enforcement.--[This 
                section] This subsection shall be enforced 
                exclusively under section 621 by the Federal 
                agencies and officials identified in that 
                section.

Sec. 616. Civil liability for willful noncompliance

  (a) In General.--Any person who willfully fails to comply 
with any requirement imposed under this title with respect to 
any consumer is liable to that consumer in an amount equal to 
the sum of--
          (1)(A) any actual damages sustained by the consumer 
        as a result of the failure or damages of not less than 
        $100 and not more than $1,000; or
          (B) in the case of liability of a natural person for 
        obtaining a consumer report under false pretenses or 
        knowingly without a permissible purpose, actual damages 
        sustained by the consumer as a result of the failure or 
        $1,000, whichever is greater;
          (2) such amount of punitive damages as the court may 
        allow; and
          (3) in the case of any successful action to enforce 
        any liability under this section, the costs of the 
        action together with reasonable attorney's fees as 
        determined by the court.
  (b) Civil Liability for Knowing Noncompliance.--Any person 
who obtains a consumer report from a consumer reporting agency 
under false pretenses or knowingly without a permissible 
purpose shall be liable to the consumer reporting agency for 
actual damages sustained by the consumer reporting agency or 
$1,000, whichever is greater.
  (c) Attorney's Fees.--Upon a finding by the court that an 
unsuccessful pleading, motion, or other paper filed in 
connection with an action under this section was filed in bad 
faith or for purposes of harassment, the court shall award to 
the prevailing party attorney's fees reasonable in relation to 
the work expended in responding to the pleading, motion, or 
other paper.
  (d) Clarification of Willful Noncompliance.--For the purposes 
of this section, any person who printed an expiration date on 
any receipt provided to a consumer cardholder at a point of 
sale or transaction between December 4, 2004, and the date of 
the enactment of this subsection but otherwise complied with 
the requirements of [section 605(g)] section 605(f) for such 
receipt shall not be in willful noncompliance with [section 
605(g)] section 605(f) by reason of printing such expiration 
date on the receipt.

           *       *       *       *       *       *       *


Sec. 621. Administrative enforcement

  (a) Enforcement by Federal Trade Commission.--
          (1) In general.--The Federal Trade Commission shall 
        be authorized to enforce compliance with the 
        requirements imposed by this title under the Federal 
        Trade Commission Act (15 U.S.C. 41 et seq.), with 
        respect to consumer reporting agencies and all other 
        persons subject thereto, except to the extent that 
        enforcement of the requirements imposed under this 
        title is specifically committed to some other 
        Government agency under any of subparagraphs (A) 
        through (G) of subsection (b)(1), and subject to 
        subtitle B of the Consumer Financial Protection Act of 
        2010, subsection (b). For the purpose of the exercise 
        by the Federal Trade Commission of its functions and 
        powers under the Federal Trade Commission Act, a 
        violation of any requirement or prohibition imposed 
        under this title shall constitute an unfair or 
        deceptive act or practice in commerce, in violation of 
        section 5(a) of the Federal Trade Commission Act (15 
        U.S.C. 45(a)), and shall be subject to enforcement by 
        the Federal Trade Commission under section 5(b) of that 
        Act with respect to any consumer reporting agency or 
        person that is subject to enforcement by the Federal 
        Trade Commission pursuant to this subsection, 
        irrespective of whether that person is engaged in 
        commerce or meets any other jurisdictional tests under 
        the Federal Trade Commission Act. The Federal Trade 
        Commission shall have such procedural, investigative, 
        and enforcement powers, including the power to issue 
        procedural rules in enforcing compliance with the 
        requirements imposed under this title and to require 
        the filing of reports, the production of documents, and 
        the appearance of witnesses, as though the applicable 
        terms and conditions of the Federal Trade Commission 
        Act were part of this title. Any person violating any 
        of the provisions of this title shall be subject to the 
        penalties and entitled to the privileges and immunities 
        provided in the Federal Trade Commission Act as though 
        the applicable terms and provisions of such Act are 
        part of this title.
          (2) Penalties.--
                  (A) Knowing violations.--Except as otherwise 
                provided by subtitle B of the Consumer 
                Financial Protection Act of 2010, in the event 
                of a knowing violation, which constitutes a 
                pattern or practice of violations of this 
                title, the Federal Trade Commission may 
                commence a civil action to recover a civil 
                penalty in a district court of the United 
                States against any person that violates this 
                title. In such action, such person shall be 
                liable for a civil penalty of not more than 
                $2,500 per violation.
                  (B) Determining penalty amount.--In 
                determining the amount of a civil penalty under 
                subparagraph (A), the court shall take into 
                account the degree of culpability, any history 
                of such prior conduct, ability to pay, effect 
                on ability to continue to do business, and such 
                other matters as justice may require.
                  (C) Limitation.--Notwithstanding paragraph 
                (2), a court may not impose any civil penalty 
                on a person for a violation of section 
                623(a)(1), unless the person has been enjoined 
                from committing the violation, or ordered not 
                to commit the violation, in an action or 
                proceeding brought by or on behalf of the 
                Federal Trade Commission, and has violated the 
                injunction or order, and the court may not 
                impose any civil penalty for any violation 
                occurring before the date of the violation of 
                the injunction or order.
  (b) Enforcement by Other Agencies.--
          (1) In general.--Subject to subtitle B of the 
        Consumer Financial Protection Act of 2010, compliance 
        with the requirements imposed under this title with 
        respect to consumer reporting agencies, persons who use 
        consumer reports from such agencies, persons who 
        furnish information to such agencies, and users of 
        information that are subject to section 615(d) shall be 
        enforced under--
                  (A) section 8 of the Federal Deposit 
                Insurance Act (12 U.S.C. 1818), by the 
                appropriate Federal banking agency, as defined 
                in section 3(q) of the Federal Deposit 
                Insurance Act (12 U.S.C. 1813(q)), with respect 
                to--
                          (i) any national bank or State 
                        savings association, and any Federal 
                        branch or Federal agency of a foreign 
                        bank;
                          (ii) any member bank of the Federal 
                        Reserve System (other than a national 
                        bank), a branch or agency of a foreign 
                        bank (other than a Federal branch, 
                        Federal agency, or insured State branch 
                        of a foreign bank), a commercial 
                        lending company owned or controlled by 
                        a foreign bank, and any organization 
                        operating under section 25 or 25A of 
                        the Federal Reserve Act; and
                          (iii) any bank or Federal savings 
                        association insured by the Federal 
                        Deposit Insurance Corporation (other 
                        than a member of the Federal Reserve 
                        System) and any insured State branch of 
                        a foreign bank;
                  (B) the Federal Credit Union Act (12 U.S.C. 
                1751 et seq.), by the Administrator of the 
                National Credit Union Administration with 
                respect to any Federal credit union;
                  (C) subtitle IV of title 49, United States 
                Code, by the Secretary of Transportation, with 
                respect to all carriers subject to the 
                jurisdiction of the Surface Transportation 
                Board;
                  (D) the Federal Aviation Act of 1958 (49 
                U.S.C. App. 1301 et seq.), by the Secretary of 
                Transportation, with respect to any air carrier 
                or foreign air carrier subject to that Act;
                  (E) the Packers and Stockyards Act, 1921 (7 
                U.S.C. 181 et seq.) (except as provided in 
                section 406 of that Act), by the Secretary of 
                Agriculture, with respect to any activities 
                subject to that Act;
                  (F) the Commodity Exchange Act, with respect 
                to a person subject to the jurisdiction of the 
                Commodity Futures Trading Commission;
                  (G) the Federal securities laws, and any 
                other laws that are subject to the jurisdiction 
                of the Securities and Exchange Commission, with 
                respect to a person that is subject to the 
                jurisdiction of the Securities and Exchange 
                Commission; and
                  (H) subtitle E of the Consumer Financial 
                Protection Act of 2010, by the Bureau, with 
                respect to any person subject to this title.
          (2) Incorporated definitions.--The terms used in 
        paragraph (1) that are not defined in this title or 
        otherwise defined in section 3(s) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1813(s)) have the same 
        meanings as in section 1(b) of the International 
        Banking Act of 1978 (12 U.S.C. 3101).
  (c) State Action for Violations.--
          (1) Authority of states.--In addition to such other 
        remedies as are provided under State law, if the chief 
        law enforcement officer of a State, or an official or 
        agency designated by a State, has reason to believe 
        that any person has violated or is violating this 
        title, the State--
                  (A) may bring an action to enjoin such 
                violation in any appropriate United States 
                district court or in any other court of 
                competent jurisdiction;
                  (B) subject to paragraph (5), may bring an 
                action on behalf of the residents of the State 
                to recover--
                          (i) damages for which the person is 
                        liable to such residents under sections 
                        616 and 617 as a result of the 
                        violation;
                          (ii) in the case of a violation 
                        described in any of paragraphs (1) 
                        through (3) of section 623(c), damages 
                        for which the person would, but for 
                        section 623(c), be liable to such 
                        residents as a result of the violation; 
                        or
                          (iii) damages of not more than $1,000 
                        for each willful or negligent 
                        violation; and
                  (C) in the case of any successful action 
                under subparagraph (A) or (B), shall be awarded 
                the costs of the action and reasonable attorney 
                fees as determined by the court.
          (2) Rights of federal regulators.--The State shall 
        serve prior written notice of any action under 
        paragraph (1) upon the Bureau and the Federal Trade 
        Commission or the appropriate Federal regulator 
        determined under subsection (b) and provide the Bureau 
        and the Federal Trade Commission or appropriate Federal 
        regulator with a copy of its complaint, except in any 
        case in which such prior notice is not feasible, in 
        which case the State shall serve such notice 
        immediately upon instituting such action. The Bureau 
        and the Federal Trade Commission or appropriate Federal 
        regulator shall have the right--
                  (A) to intervene in the action;
                  (B) upon so intervening, to be heard on all 
                matters arising therein;
                  (C) to remove the action to the appropriate 
                United States district court; and
                  (D) to file petitions for appeal.
          (3) Investigatory powers.--For purposes of bringing 
        any action under this subsection, nothing in this 
        subsection shall prevent the chief law enforcement 
        officer, or an official or agency designated by a 
        State, from exercising the powers conferred on the 
        chief law enforcement officer or such official by the 
        laws of such State to conduct investigations or to 
        administer oaths or affirmations or to compel the 
        attendance of witnesses or the production of 
        documentary and other evidence.
          (4) Limitation on state action while federal action 
        pending.--If the Bureau, the Federal Trade Commission, 
        or the appropriate Federal regulator has instituted a 
        civil action or an administrative action under section 
        8 of the Federal Deposit Insurance Act for a violation 
        of this title, no State may, during the pendency of 
        such action, bring an action under this section against 
        any defendant named in the complaint of the Bureau, the 
        Federal Trade Commission, or the appropriate Federal 
        regulator for any violation of this title that is 
        alleged in that complaint.
          (5) Limitations on state actions for certain 
        violations.--
                  (A) Violation of injunction required.--A 
                State may not bring an action against a person 
                under paragraph (1)(B) for a violation 
                described in any of paragraphs (1) through (3) 
                of section 623(c), unless--
                          (i) the person has been enjoined from 
                        committing the violation, in an action 
                        brought by the State under paragraph 
                        (1)(A); and
                          (ii) the person has violated the 
                        injunction.
                  (B) Limitation on damages recoverable.--In an 
                action against a person under paragraph (1)(B) 
                for a violation described in any of paragraphs 
                (1) through (3) of section 623(c), a State may 
                not recover any damages incurred before the 
                date of the violation of an injunction on which 
                the action is based.
  (d) For the purpose of the exercise by any agency referred to 
in subsection (b) of its powers under any Act referred to in 
that subsection, a violation of any requirement imposed under 
this title shall be deemed to be a violation of a requirement 
imposed under that Act. In addition to its powers under any 
provision of law specifically referred to in subsection (b), 
each of the agencies referred to in that subsection may 
exercise, for the purpose of enforcing compliance with any 
requirement imposed under this title any other authority 
conferred on it by law.
  (e) Regulatory Authority.--
          (1) In general.--The Bureau shall prescribe such 
        regulations as are necessary to carry out the purposes 
        of this title, except with respect to sections 615(e) 
        and 628. The Bureau may prescribe regulations as may be 
        necessary or appropriate to administer and carry out 
        the purposes and objectives of this title, and to 
        prevent evasions thereof or to facilitate compliance 
        therewith. Except as provided in section 1029(a) of the 
        Consumer Financial Protection Act of 2010, the 
        regulations prescribed by the Bureau under this title 
        shall apply to any person that is subject to this 
        title, notwithstanding the enforcement authorities 
        granted to other agencies under this section.
          (2) Deference.--Notwithstanding any power granted to 
        any Federal agency under this title, the deference that 
        a court affords to a Federal agency with respect to a 
        determination made by such agency relating to the 
        meaning or interpretation of any provision of this 
        title that is subject to the jurisdiction of such 
        agency shall be applied as if that agency were the only 
        agency authorized to apply, enforce, interpret, or 
        administer the provisions of this title The regulations 
        prescribed by the Bureau under this title shall apply 
        to any person that is subject to this title, 
        notwithstanding the enforcement authorities granted to 
        other agencies under this section.
  (f) Coordination of Consumer Complaint Investigations.--
          (1) In general.--Each consumer reporting agency 
        described in section 603(p) shall develop and maintain 
        procedures for the referral to each other such agency 
        of any consumer complaint received by the agency 
        alleging identity theft, or requesting a fraud alert 
        under section 605A or a block under section 605B.
          (2)  [Model form] Standardized affidavit and 
        procedure for reporting identity theft.--[The 
        Commission] The Bureau, in consultation with the 
        Federal Trade Commission, the Federal banking agencies, 
        and the National Credit Union Administration, shall 
        develop a [model form] standardized affidavit and model 
        procedures to be used by consumers who are victims of 
        identity theft, fraud, or a related crime, or otherwise 
        are harmed by the unauthorized disclosure of the 
        consumer's financial or personally identifiable 
        information, for contacting and informing creditors and 
        consumer reporting agencies of the [fraud.] identity 
        theft, fraud, or other related crime. Such standardized 
        affidavit and procedures shall not include a 
        requirement that a consumer obtain a police report.
          (3) Annual summary reports.--Each consumer reporting 
        agency described in section 603(p) shall submit an 
        annual summary report to the Bureau on consumer 
        complaints received by the agency on identity theft or 
        fraud alerts.
  (g) Bureau Regulation of Coding of Trade Names.--If the 
Bureau determines that a person described in paragraph (9) of 
section 623(a) has not met the requirements of such paragraph, 
the Bureau shall take action to ensure the person's compliance 
with such paragraph, which may include issuing model guidance 
or prescribing reasonable policies and procedures, as necessary 
to ensure that such person complies with such paragraph.

           *       *       *       *       *       *       *


Sec. 625. Relation to State laws

  (a) In General.--Except as provided in subsections (b) and 
(c), this title does not annul, alter, affect, or exempt any 
person subject to the provisions of this title from complying 
with the laws of any State with respect to the collection, 
distribution, or use of any information on consumers, or for 
the prevention or mitigation of identity theft, except to the 
extent that those laws are inconsistent with any provision of 
this title, and then only to the extent of the inconsistency.
  (b) General Exceptions.--No requirement or prohibition may be 
imposed under the laws of any State--
          (1) with respect to any subject matter regulated 
        under--
                  (A) subsection (c) or (e) of section 604, 
                relating to the prescreening of consumer 
                reports;
                  (B) section 611, relating to the time by 
                which a consumer reporting agency must take any 
                action, including the provision of notification 
                to a consumer or other person, in any procedure 
                related to the disputed accuracy of information 
                in a consumer's file, except that this 
                subparagraph shall not apply to any State law 
                in effect on the date of enactment of the 
                Consumer Credit Reporting Reform Act of 1996;
                  (C) subsections (a) and (b) of section 615, 
                relating to the duties of a person who takes 
                any adverse action with respect to a consumer;
                  (D) section 615(d), relating to the duties of 
                persons who use a consumer report of a consumer 
                in connection with any credit or insurance 
                transaction that is not initiated by the 
                consumer and that consists of a firm offer of 
                credit or insurance;
                  (E) section 605, relating to information 
                contained in consumer reports, except that this 
                subparagraph shall not apply to any State law 
                in effect on the date of enactment of the 
                Consumer Credit Reporting Reform Act of 1996;
                  (F) section 623, relating to the 
                responsibilities of persons who furnish 
                information to consumer reporting agencies, 
                except that this paragraph shall not apply--
                          (i) with respect to section 54A(a) of 
                        chapter 93 of the Massachusetts 
                        Annotated Laws (as in effect on the 
                        date of enactment of the Consumer 
                        Credit Reporting Reform Act of 1996); 
                        or
                          (ii) with respect to section 
                        1785.25(a) of the California Civil Code 
                        (as in effect on the date of enactment 
                        of the Consumer Credit Reporting Reform 
                        Act of 1996);
                  (G) section 609(e), relating to information 
                available to victims under section 609(e);
                  (H) section 624, relating to the exchange and 
                use of information to make a solicitation for 
                marketing purposes;
                  (I) section 615(h), relating to the duties of 
                users of consumer reports to provide notice 
                with respect to terms in certain credit 
                transactions;
                  (J) subsections (i) and (j) of section 605A 
                relating to security freezes; or
                  (K) subsection (k) of section 605A, relating 
                to credit monitoring for active duty military 
                consumers, as defined in that subsection;
          (2) with respect to the exchange of information among 
        persons affiliated by common ownership or common 
        corporate control, except that this paragraph shall not 
        apply with respect to subsection (a) or (c)(1) of 
        section 2480e of title 9, Vermont Statutes Annotated 
        (as in effect on the date of enactment of the Consumer 
        Credit Reporting Reform Act of 1996);
          (3) with respect to the disclosures required to be 
        made under subsection (c), (d), (e), or (g) of section 
        609, or subsection (f) of section 609 relating to the 
        disclosure of credit scores for credit granting 
        purposes, except that this paragraph--
                  (A) shall not apply with respect to sections 
                1785.10, 1785.16, and 1785.20.2 of the 
                California Civil Code (as in effect on the date 
                of enactment of the Fair and Accurate Credit 
                Transactions Act of 2003) and section 1785.15 
                through section 1785.15.2 of such Code (as in 
                effect on such date);
                  (B) shall not apply with respect to sections 
                5-3-106(2) and 212-14.3-104.3 of the Colorado 
                Revised Statutes (as in effect on the date of 
                enactment of the Fair and Accurate Credit 
                Transactions Act of 2003); and
                  (C) shall not be construed as limiting, 
                annulling, affecting, or superseding any 
                provision of the laws of any State regulating 
                the use in an insurance activity, or regulating 
                disclosures concerning such use, of a credit-
                based insurance score of a consumer by any 
                person engaged in the business of insurance;
          (4) with respect to the frequency of any disclosure 
        under section 612(a), except that this paragraph shall 
        not apply--
                  (A) with respect to section 12-14.3-105(1)(d) 
                of the Colorado Revised Statutes (as in effect 
                on the date of enactment of the Fair and 
                Accurate Credit Transactions Act of 2003);
                  (B) with respect to section 10-1-393(29)(C) 
                of the Georgia Code (as in effect on the date 
                of enactment of the Fair and Accurate Credit 
                Transactions Act of 2003);
                  (C) with respect to section 1316.2 of title 
                10 of the Maine Revised Statutes (as in effect 
                on the date of enactment of the Fair and 
                Accurate Credit Transactions Act of 2003);
                  (D) with respect to sections 14-1209(a)(1) 
                and 14-1209(b)(1)(i) of the Commercial Law 
                Article of the Code of Maryland (as in effect 
                on the date of enactment of the Fair and 
                Accurate Credit Transactions Act of 2003);
                  (E) with respect to section 59(d) and section 
                59(e) of chapter 93 of the General Laws of 
                Massachusetts (as in effect on the date of 
                enactment of the Fair and Accurate Credit 
                Transactions Act of 2003);
                  (F) with respect to section 56:11-37.10(a)(1) 
                of the New Jersey Revised Statutes (as in 
                effect on the date of enactment of the Fair and 
                Accurate Credit Transactions Act of 2003); or
                  (G) with respect to section 2480c(a)(1) of 
                title 9 of the Vermont Statutes Annotated (as 
                in effect on the date of enactment of the Fair 
                and Accurate Credit Transactions Act of 2003); 
                or
          (5) with respect to the conduct required by the 
        specific provisions of--
                  (A) [section 605(g)] section 605(f);
                  (B) section 605A;
                  (C) section 605B;
                  (D) section 609(a)(1)(A);
                  (E) section 612(a);
                  (F) subsections (e), (f), and (g) of section 
                615;
                  (G) section 621(f);
                  (H) section 623(a)(6); or
                  (I) section 628.
  (c) Definition of Firm Offer of Credit or Insurance.--
Notwithstanding any definition of the term ``firm offer of 
credit or insurance'' (or any equivalent term) under the laws 
of any State, the definition of that term contained in section 
603(l) shall be construed to apply in the enforcement and 
interpretation of the laws of any State governing consumer 
reports.
  (d) Limitations.--Subsections (b) and (c) do not affect any 
settlement, agreement, or consent judgment between any State 
Attorney General and any consumer reporting agency in effect on 
the date of enactment of the Consumer Credit Reporting Reform 
Act of 1996.

           *       *       *       *       *       *       *


Sec. 630. Prohibition of certain factors related to Federal credit 
                    restoration or rehabilitation

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

Sec. 631. Voiding of certain contracts not in the public interest

  (a) In General.--Any provision contained in a contract that 
requires a person to not follow a provision of this title, that 
is against the public interest, or that otherwise circumvents 
the purposes of this title shall be null and void.
  (b) Rule of Construction.--Nothing in subsection (a) shall be 
construed as affecting other provisions of a contract that are 
not described under subsection (a).

                             MINORITY VIEWS

    Committee Republicans are concerned that H.R. 3622, the 
Restoring Unfairly Impaired Credit and Protecting Consumers 
Act, will have the perverse effect of limiting consumer access 
to credit further alienating individuals from financial 
inclusion.
    H.R. 3622, as amended, would reduce the timeframe adverse 
credit information remains on a consumer report from seven to 
four years for consumer debt information and from ten to seven 
years information for bankruptcies. The bill further requires 
certain fully paid debt be removed from consumer credit reports 
expeditiously.
    Committee Republicans recognize the direct implications 
credit history and ability to repay have on American consumers. 
Removing predictive information has the potential to increase 
the cost of credit, particularly for those borrowers who have 
limited credit histories, because of the role credit reporting 
plays in the underwriting process. The number of defaults in 
the credit system also affects credit availability for the 
remaining millions of consumers. Moreover, requiring the 
expedited removal of debt from such reports will undermine the 
safety and soundness of financial institutions and the 
financial system more broadly. The federal government should 
not micromanage data used in this private sector process but 
instead work to establish sensible guardrails and consumer 
protections.
    Notwithstanding H.R. 3622, Committee Republicans agree that 
aspects of the credit reporting process need reform, such as 
removing certain adverse information from consumer reports. For 
example, during the markup of H.R. 3622, Ranking Member McHenry 
and other Committee Republicans expressed support for 
provisions that remove adverse information for victims of 
predatory lending and financial abuse. In fact, Congressman 
Loudermilk offered an amendment that would require removal of 
adverse information related to predatory lending and financial 
abuse as well as paid, non-elective medical debt. The amendment 
was defeated by a party line vote of 26-32.
    Finally, Committee Republicans believe that had additional 
hearings taken place, a bipartisan product reforming the 
consumer reporting industry could have been produced. 
Unfortunately, Committee Democrats defeated every Republican 
amendment offered during debate on consumer reporting while 
advancing numerous pieces of partisan legislation, including 
H.R. 3622. A bipartisan product would stand a much better 
chance of being signed into law. Needless partisanship does 
nothing to help consumers. Committee Republicans continue to 
stand ready to discuss these important issues with Democrats.

                                   David Kustoff.
                                   Barry Loudermilk.
                                   Lance Gooden.
                                   William R. Timmons, IV.
                                   Tom Emmer.
                                   Scortt 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.