    [Public Papers of the Presidents of the United States: George W. Bush (2003, Book II)]
    [December 4, 2003]
    [Pages 1674-1677]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks on Signing the Fair and Accurate Credit Transactions Act of 2003
    December 4, 2003

        Thank you all for coming. Please be seated. Thanks. Good morning,
    everybody. Thanks for coming to the Roosevelt Room. Today we're taking
    important steps to ensure that all Americans of every income and
    background have fair access to credit.
        For our economy, reliable access to credit and capital is essential
    to growth and prosperity. For individuals, a chance to get ahead and to
    make a better life often depends on building credit. So many decisions,
    like buying a home or financing a car or owning a small business, are
    made easier by good credit. The bill I'm about to sign will help make
    sure that hard-working, law-abiding citizens are treated fairly when
    they apply for credit.

        This bill also confronts the problem of identity theft. A growing
    number of Americans are victimized by criminals who assume their
    identities and cause havoc in their financial affairs. With this
    legislation, the Federal Government is protecting our

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    citizens by taking the offensive against identity theft.
        I appreciate the fact that I'm joined up here by the Secretary of
    the Treasury, John Snow, and Tim Muris, who is the Chairman of the Federal Trade
    Commission. Muris is responsible for writing the regulations to make
    sure that the intention of the Congress is met.
        And speaking about the Congress, I want to thank the Members of the
    Congress, both Republicans and Democrats, who are here to join in the
    bill signing, good, honorable Members who have worked hard to protect
    our citizens. I appreciate Senator Paul Sarbanes for joining us today. I'm honored that Senator Bob
    Bennett has joined us as well, as well as
    Maria Cantwell and Elizabeth Dole. Thank you, Senators, for coming. Thanks for your
    good work on this. I also want to thank Richard Shelby for his good work. He's not with us today, but Shelby
    gets some credit. [Laughter] From the House--[laughter]--
    Congressman Oxley--I appreciate you, Mr.
    Chairman--Paul Gillmor, Spencer Bachus--thanks for coming, Spence. I appreciate you
    sponsoring this piece of legislation. Steve LaTourette and Darlene Hooley are
    here. Thank you all for coming.
        Again, I want to again congratulate the Congress for working on this
    important piece of legislation and exceeding expectations, I might add.
    At least you've exceeded the expectations of the administration on this
    bill. [Laughter]
        The legislation, the Fair and Accurate Credit Transactions Act of
    2003, carries forward the progress this Nation has made in recent years
    to help qualified Americans get fair access to credit. Before 1996,
    there were no uniform rules on borrower information and credit reports.
    Lenders did not always have consistent and full information about
    potential borrowers. Lenders too often made broad assumptions and
    decisions about categories of people rather than looking at individuals
    and their personal credit histories.
        Too often, lenders assumed the worst. And therefore, people with
    lower incomes and immigrants with little or no credit history, people
    who lived in certain neighborhoods had a more difficult time getting
    affordable loans. And that's not fair, and it's not right, and it does
    not reflect the spirit of this country.
        And so the Congress wisely acted. In 1996, Congress set uniform
    national standards on credit reporting. Credit histories are now more
    complete and thorough, and the lending process is fairer. Many Americans
    have been able to obtain loans that they would not have had otherwise,
    and that's important. According to estimates, over the last 7 years,
    more than 1 million men and women have obtained new or refinanced
    mortgages that would have been denied if there had not been a fair
    national standard.
        One of them is here today. I appreciate Shonelle Blake coming. She's
    got the toughest job in America. She's a single mom. She has two 4-year-
    olds, mom of twins. I know something about twins. [Laughter] In the
    early 1990s, Shonelle set herself two goals--she set high goals. One was
    to buy a house, and the other was to start a business. She made sure her
    credit was in order. She went to the HOPE Center in Los Angeles--I know
    something about there since I've been there myself--to help get a
    downpayment on a home. One year later, she got another loan to start her
    own insurance business.
        Shonelle is building a life of independence and success, in part
    because a loan was given to her based on her own merit. Because we had a
    national standard, she was able to get a loan. Because Congress did the
    right thing in 1996, this entrepreneur and mother was able to realize a
    dream. The national credit standards that help ensure that the lenders
    considered each applicant on her merits are what made the loan possible.
        John Bryant, who's with us--and it's good to
    see you again, John--of Operation

    [[Page 1676]]

    HOPE, he's what we call a social entrepreneur, by the way. [Laughter] He
    has heard the call to help people like Shonelle realize her dreams--said this: He said, ``Shonelle
    would have been rejected. She wouldn't have been a homeowner, and she
    wouldn't have been a businessowner.'' That's what John said. And so the
    fair standards are important. The national standard was an important act
    that you all did, and I want to thank you for working on it in 1996.
        See, the bill I sign today will make the national fair credit
    standards permanent. Those standards were set to expire, the '96--the
    good of the '96 act was going away. And then the Congress stepped up and
    acted for the sake of the Shonelles of the world. And now the credit
    standards are a permanent part of the legislative history of the
    country. And I want to thank you for that. It's the right thing to do,
    and I appreciate your leadership. See, we're ensuring that lenders make
    decisions based upon the full and fair credit histories of each person
    and not on the categories that can lead to discrimination.
        And as we help people gain access to credit, we're strengthening the
    protections that help consumers build and keep a good credit history.
    That good record is ruined when criminals steal identities and run up
    purchases under stolen names. Like other forms of stealing, identity
    theft leaves the victim feeling terribly violated, and undoing the
    damage caused by identity theft can take months.
        Michael Berry is with us today. Thank you
    for coming, Michael. In January of 2002, Michael was applying for a
    credit line increase. He'd always paid his bills in a timely manner.
    He's a good citizen. But his application was rejected. They told him
    that he had taken out too many credit cards recently. It came as quite a
    surprise to Michael, since it wasn't true. He discovered that someone
    had stolen his financial identity. He made countless calls to credit
    bureaus and tracked down credit card purchases he had not made. He even
    found the address of the person who had taken out the cards. He closed
    the credit card accounts as fast as he could, but applications for more
    credit in his name were being made every day. And many were getting
    approved. He had to call every credit card company to get each card
    canceled before it was issued.
        Nearly 2 years later, Michael is still
    fighting the effects of the fraud. The system was broken. Michael is
    living testimony to what I'm saying when I said the system was broken,
    and Congress acted. I want to thank you all for stepping up and doing
    the right thing here.
        See, in an age when information about individuals can be found
    easily, sold easily, abused easily, Government must act to protect
    individual privacy. And with this new law, we're taking action. First,
    under this law, we're giving every consumer the right to get a copy of
    his or her credit report free of charge every year. That's important.
    The credit report is more than a record of past actions; it has great
    influence over a person's financial future. People should be able to
    check their credit report for accuracy and to challenge any errors. The
    bill does just that.
        Second, this law will help prevent identity theft before it occurs,
    by requiring merchants to delete all but the last five digits of a
    credit card number on store receipts. Many restaurants and merchants
    have already adopted this practice. All will now do so.
        Won't they, Tim? [Laughter] Just making
    sure he was awake. [Laughter]
        Chairman Timothy J. Muris. Always.
    [Laughter]
        The President. Slips of paper that most people throw away should not
    hold the key to their savings and financial secrets.
        Third, this law will create a national system of fraud detection so
    that identity theft can be traced and dealt with earlier. Up to now,
    victims of identity theft have been left to manage the problem
    themselves--ask Michael--by calling all their credit card

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    companies to shut down each of their accounts. And then the victims must
    call each of the three major credit rating agencies to report the crime
    and to protect their credit rating. Under this legislation, victims will
    only have to make one phone call to receive advice and to set off a
    nationwide fraud alert. It's an important reform. I appreciate you all
    for putting this into law. Credit bureaus will then take immediate
    measures to protect the consumer's credit standing.
        And fourth, this law will encourage lenders and credit agencies to
    take action before a victim even knows an identity crime has occurred.
    In many cases, identity thieves follow predictable patterns. Bank
    regulators working with credit agencies will draw up guidelines to
    identify these patterns and develop methods to stop identity theft
    before it ever happens.
        These practical steps will help consumers protect their credit and
    their good name. People work hard to build up good credit histories and
    rely on their credit to move forward in life. Today we're helping to
    make our credit system fair, fair to all, and to better protect those--
    better protect people from those who would abuse it.
        I'm pleased to sign into law the Fair and Accurate Credit
    Transactions Act of 2003, a good, solid piece of legislation.

    Note: The President spoke at 11 a.m. in the Roosevelt Room at the White
    House. In his remarks, he referred to John Bryant, chairman and chief
    executive officer, Operation HOPE, Inc. H.R. 2622, approved December 4,
    was assigned Public Law No. 108-159.