    [United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    117 STAT. 1952

    Public Law 108-159
    108th Congress

    An Act

    To amend the Fair Credit Reporting Act, to prevent identity theft,
    improve resolution of consumer disputes, improve the accuracy of
    consumer records, make improvements in the use of, and consumer access
    to, credit information, and for other purposes. [NOTE: Dec. 4,
    2003 -  [H.R. 2622]]

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress [NOTE: Fair and Accurate Credit
    Transactions Act of 2003.] assembled,

    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This [NOTE: 15 USC 1601 note.] Act may be cited
    as the ``Fair and Accurate Credit Transactions Act of 2003''.

    (b) Table of Contents.--The table of contents for this Act is as
    follows:

    Sec. 1. Short title; table of contents.
    Sec. 2. Definitions.
    Sec. 3. Effective dates.

    TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION

    Subtitle A--Identity Theft Prevention

    Sec. 111. Amendment to definitions.
    Sec. 112. Fraud alerts and active duty alerts.
    Sec. 113. Truncation of credit card and debit card account numbers.
    Sec. 114. Establishment of procedures for the identification of possible
    instances of identity theft.
    Sec. 115. Authority to truncate social security numbers.

    Subtitle B--Protection and Restoration of Identity Theft Victim Credit
    History

    Sec. 151. Summary of rights of identity theft victims.
    Sec. 152. Blocking of information resulting from identity theft.
    Sec. 153. Coordination of identity theft complaint investigations.
    Sec. 154. Prevention of repollution of consumer reports.
    Sec. 155. Notice by debt collectors with respect to fraudulent
    information.
    Sec. 156. Statute of limitations.
    Sec. 157. Study on the use of technology to combat identity theft.

    TITLE II--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT
    INFORMATION

    Sec. 211. Free consumer reports.
    Sec. 212. Disclosure of credit scores.
    Sec. 213. Enhanced disclosure of the means available to opt out of
    prescreened lists.
    Sec. 214. Affiliate sharing.
    Sec. 215. Study of effects of credit scores and credit-based insurance
    scores on availability and affordability of financial
    products.
    Sec. 216. Disposal of consumer report information and records.
    Sec. 217. Requirement to disclose communications to a consumer reporting
    agency.

    TITLE III--ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION

    Sec. 311. Risk-based pricing notice.

    [[Page 1953]]
    117 STAT. 1953

    Sec. 312. Procedures to enhance the accuracy and integrity of
    information furnished to consumer reporting agencies.
    Sec. 313. FTC and consumer reporting agency action concerning
    complaints.
    Sec. 314. Improved disclosure of the results of reinvestigation.
    Sec. 315. Reconciling addresses.
    Sec. 316. Notice of dispute through reseller.
    Sec. 317. Reasonable reinvestigation required.
    Sec. 318. FTC study of issues relating to the Fair Credit Reporting Act.
    Sec. 319. FTC study of the accuracy of consumer reports.

    TITLE IV--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE
    FINANCIAL SYSTEM

    Sec. 411. Protection of medical information in the financial system.
    Sec. 412. Confidentiality of medical contact information in consumer
    reports.

    TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT

    Sec. 511. Short title.
    Sec. 512. Definitions.
    Sec. 513. Establishment of Financial Literacy and Education Commission.
    Sec. 514. Duties of the Commission.
    Sec. 515. Powers of the Commission.
    Sec. 516. Commission personnel matters.
    Sec. 517. Studies by the Comptroller General.
    Sec. 518. The national public service multimedia campaign to enhance the
    state of financial literacy.
    Sec. 519. Authorization of appropriations.

    TITLE VI--PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS

    Sec. 611. Certain employee investigation communications excluded from
    definition of consumer report.

    TITLE VII--RELATION TO STATE LAWS

    Sec. 711. Relation to State laws.

    TITLE VIII--MISCELLANEOUS

    Sec. 811. Clerical amendments.

    SEC. 2. [NOTE: 15 USC 1681 note.] DEFINITIONS.

    As used in this Act--
    (1) the term ``Board'' means the Board of Governors of the
    Federal Reserve System;
    (2) the term ``Commission'', other than as used in title V,
    means the Federal Trade Commission;
    (3) the terms ``consumer'', ``consumer report'', ``consumer
    reporting agency'', ``creditor'', ``Federal banking agencies'',
    and ``financial institution'' have the same meanings as in
    section 603 of the Fair Credit Reporting Act, as amended by this
    Act; and
    (4) the term ``affiliates'' means persons that are related
    by common ownership or affiliated by corporate control.

    SEC. 3. [NOTE: 15 USC 1681 note.] EFFECTIVE DATES.

    Except as otherwise specifically provided in this Act and the
    amendments made by this Act--
    (1) [NOTE: Regulations.] before the end of the 2-month
    period beginning on the date of enactment of this Act, the Board
    and the Commission shall jointly prescribe regulations in final
    form establishing effective dates for each provision of this
    Act; and
    (2) the regulations prescribed under paragraph (1) shall
    establish effective dates that are as early as possible, while
    allowing a reasonable time for the implementation of the
    provisions of this Act, but in no case shall any such effective
    date be later than 10 months after the date of issuance of such
    regulations in final form.

    [[Page 1954]]
    117 STAT. 1954

    TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION

    Subtitle A--Identity Theft Prevention

    SEC. 111. AMENDMENT TO DEFINITIONS.

    Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is
    amended by adding at the end the following:
    ``(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 Commission may
    prescribe, by regulation.
    ``(4) Identity theft report.--The term `identity theft
    report' has the meaning given that term by rule of the
    Commission, 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 Commission;
    and
    ``(C) the filing of which subjects the person filing
    the report to criminal penalties relating to the filing
    of false information if, in fact, the information in the
    report is false.
    ``(5) New credit plan.--The term `new credit plan' means a
    new account under an open end credit plan (as defined in section
    103(i) of the Truth in Lending Act) or a new credit transaction
    not under an open end credit plan.

    ``(r) Credit and Debit Related Terms--
    ``(1) Card issuer.--The term `card issuer' means--
    ``(A) a credit card issuer, in the case of a credit
    card; and

    [[Page 1955]]
    117 STAT. 1955

    ``(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 Federal Trade
    Commission.
    ``(w) 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.''.

    SEC. 112. FRAUD ALERTS AND ACTIVE DUTY ALERTS.

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

    ``Sec. 605A. [NOTE: 15 USC 1681c-1.] Identity theft prevention; fraud
    alerts and active duty alerts

    ``(a) One-Call Fraud Alerts.--
    ``(1) Initial alerts.--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

    [[Page 1956]]
    117 STAT. 1956

    victim of fraud or related crime, including identity theft, 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 90 days, 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 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).
    ``(2) Access to free reports.--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 a free copy of the file of the consumer pursuant
    to section 612(d); and
    ``(B) [NOTE: Deadline.] 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).

    ``(b) Extended 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, 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
    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).
    ``(2) Access to free reports.--In any case in which a
    consumer reporting agency includes a fraud alert in the file

    [[Page 1957]]
    117 STAT. 1957

    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
    ``(B) [NOTE: Deadline.] 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 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) include an active duty alert in the file of that
    active duty military consumer, and also provide that alert along
    with any credit score generated in using that file, during a
    period of not less than 12 months, or such longer period as the
    Commission 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) 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) 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).

    ``(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.
    ``(e) Referrals of Alerts.--Each consumer reporting agency described
    in section 603(p) that receives a referral of a 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).

    [[Page 1958]]
    117 STAT. 1958

    ``(f) Duty of Reseller To Reconvey Alert.--A reseller shall include
    in its report any fraud alert or active duty alert 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, the agency shall provide information to
    the consumer on how to contact the Commission and the consumer reporting
    agencies described in section 603(p) to obtain more detailed information
    and request alerts under this section.
    ``(h) Limitations on Use of Information for Credit Extensions.--
    ``(1) Requirements for initial and active duty alerts.--
    ``(A) Notification.--Each initial 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 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 alerts.--
    ``(A) Notification.--Each extended alert under this
    section shall include information that provides all
    prospective users of a consumer report relating to a
    consumer with--

    [[Page 1959]]
    117 STAT. 1959

    ``(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 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.''.

    (b) Rulemaking.--The [NOTE: 15 USC 1681c-1 note.] Commission shall
    prescribe regulations to define what constitutes appropriate proof of
    identity for purposes of sections 605A, 605B, and 609(a)(1) of the Fair
    Credit Reporting Act, as amended by this Act.

    SEC. 113. TRUNCATION OF CREDIT CARD AND DEBIT CARD ACCOUNT NUMBERS.

    Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c) is
    amended by adding at the end the following:
    ``(g) Truncation of Credit Card and Debit Card Numbers.--
    ``(1) In general.--Except as otherwise provided in this
    subsection, no person that accepts credit cards or debit cards
    for the transaction of business shall print more than the last 5
    digits of the card number or the expiration date upon any
    receipt provided to the cardholder at the point of the sale or
    transaction.
    ``(2) Limitation.--This [NOTE: Applicability.] 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

    [[Page 1960]]
    117 STAT. 1960

    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.''.

    SEC. 114. ESTABLISHMENT OF PROCEDURES FOR THE IDENTIFICATION OF POSSIBLE
    INSTANCES OF IDENTITY THEFT.

    Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m) is
    amended--
    (1) by striking ``(e)'' at the end; and
    (2) by adding at the end the following:

    ``(e) Red Flag Guidelines and Regulations Required.--
    ``(1) Guidelines.--The Federal banking agencies, the
    National Credit Union Administration, and the 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

    [[Page 1961]]
    117 STAT. 1961

    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.''.

    SEC. 115. AUTHORITY TO TRUNCATE SOCIAL SECURITY NUMBERS.

    Section 609(a)(1) of the Fair Credit Reporting Act (15 U.S.C.
    1681g(a)(1)) is amended by striking ``except that nothing'' and
    inserting the following: ``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''.

    Subtitle B--Protection and Restoration of Identity Theft Victim Credit
    History

    SEC. 151. SUMMARY OF RIGHTS OF IDENTITY THEFT VICTIMS.

    (a) In General.--
    (1) Summary.--Section 609 of the Fair Credit Reporting Act
    (15 U.S.C. 1681g) is amended by adding at the end the following:

    ``(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 [NOTE: Effective date.] 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
    Commission 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 Commission under paragraph (1), and information
    on how to contact the Commission to obtain more detailed
    information.

    ``(e) Information Available to Victims.--
    ``(1) In general.--For [NOTE: Deadline.] the purpose of
    documenting fraudulent transactions resulting from identity
    theft, not later than

    [[Page 1962]]
    117 STAT. 1962

    30 days after the date of receipt of a request from a victim in
    accordance with paragraph (3), and subject to verification of
    the identity of the victim and the claim of identity theft in
    accordance with paragraph (2), a business entity that has
    provided credit to, provided for consideration products, goods,
    or services to, accepted payment from, or otherwise entered into
    a commercial transaction for consideration with, a person who
    has allegedly made unauthorized use of the means of
    identification of the victim, shall provide a copy of
    application and business transaction records in the control of
    the business entity, whether maintained by the business entity
    or by another person on behalf of the business entity,
    evidencing any transaction alleged to be a result of identity
    theft to--
    ``(A) the victim;
    ``(B) any Federal, State, or local government law
    enforcement agency or officer specified by the victim in
    such a request; or
    ``(C) any law enforcement agency investigating the
    identity theft and authorized by the victim to take
    receipt of records provided under this subsection.
    ``(2) Verification of identity and claim.--Before a business
    entity provides any information under paragraph (1), unless the
    business entity, at its discretion, otherwise has a high degree
    of confidence that it knows the identity of the victim making a
    request under paragraph (1), the victim shall provide to the
    business entity--
    ``(A) as proof of positive identification of the
    victim, at the election of the business entity--
    ``(i) the presentation of a government-issued
    identification card;
    ``(ii) personally identifying information of
    the same type as was provided to the business
    entity by the unauthorized person; or
    ``(iii) personally identifying information
    that the business entity typically requests from
    new applicants or for new transactions, at the
    time of the victim's request for information,
    including any documentation described in clauses
    (i) and (ii); and
    ``(B) as proof of a claim of identity theft, at the
    election of the business entity--
    ``(i) a copy of a police report evidencing the
    claim of the victim of identity theft; and
    ``(ii) a properly completed--
    ``(I) copy of a standardized
    affidavit of identity theft developed
    and made available by the Commission; or
    ``(II) an affidavit of fact that is
    acceptable to the business entity for
    that purpose.
    ``(3) Procedures.--The request of a victim under paragraph
    (1) shall--
    ``(A) be in writing;
    ``(B) be mailed to an address specified by the
    business entity, if any; and
    ``(C) if asked by the business entity, include
    relevant information about any transaction alleged to be
    a result of identity theft to facilitate compliance with
    this section including--

    [[Page 1963]]
    117 STAT. 1963

    ``(i) if known by the victim (or if readily
    obtainable by the victim), the date of the
    application or transaction; and
    ``(ii) if known by the victim (or if readily
    obtainable by the victim), any other identifying
    information such as an account or transaction
    number.
    ``(4) No charge to victim.--Information required to be
    provided under paragraph (1) shall be so provided without
    charge.
    ``(5) Authority to decline to provide information.--A
    business entity may decline to provide information under
    paragraph (1) if, in the exercise of good faith, the business
    entity determines that--
    ``(A) this subsection does not require disclosure of
    the information;
    ``(B) after reviewing the information provided
    pursuant to paragraph (2), the business entity does not
    have a high degree of confidence in knowing the true
    identity of the individual requesting the information;
    ``(C) the request for the information is based on a
    misrepresentation of fact by the individual requesting
    the information relevant to the request for information;
    or
    ``(D) the information requested is Internet
    navigational data or similar information about a
    person's visit to a website or online service.
    ``(6) Limitation on liability.--Except as provided in
    section 621, sections 616 and 617 do not apply to any violation
    of this subsection.
    ``(7) Limitation on civil liability.--No business entity may
    be held civilly liable under any provision of Federal, State, or
    other law for disclosure, made in good faith pursuant to this
    subsection.
    ``(8) No new recordkeeping obligation.--Nothing in this
    subsection creates an obligation on the part of a business
    entity to obtain, retain, or maintain information or records
    that are not otherwise required to be obtained, retained, or
    maintained in the ordinary course of its business or under other
    applicable law.
    ``(9) Rule of construction.--
    ``(A) In general.--No provision of subtitle A of
    title V of Public Law 106-102, prohibiting the
    disclosure of financial information by a business entity
    to third parties shall be used to deny disclosure of
    information to the victim under this subsection.
    ``(B) Limitation.--Except as provided in
    subparagraph (A), nothing in this subsection permits a
    business entity to disclose information, including
    information to law enforcement under subparagraphs (B)
    and (C) of paragraph (1), that the business entity is
    otherwise prohibited from disclosing under any other
    applicable provision of Federal or State law.
    ``(10) Affirmative defense.--In any civil action brought to
    enforce this subsection, it is an affirmative defense (which the
    defendant must establish by a preponderance of the evidence) for
    a business entity to file an affidavit or answer stating that--

    [[Page 1964]]
    117 STAT. 1964

    ``(A) the business entity has made a reasonably
    diligent search of its available business records; and
    ``(B) the records requested under this subsection do
    not exist or are not reasonably available.
    ``(11) Definition of victim.--For purposes of this
    subsection, the term `victim' means a consumer whose means of
    identification or financial information has been used or
    transferred (or has been alleged to have been used or
    transferred) without the authority of that consumer, with the
    intent to commit, or to aid or abet, an identity theft or a
    similar crime.
    ``(12) Effective date.--This subsection shall become
    effective 180 days after the date of enactment of this
    subsection.
    ``(13) Effectiveness study.--
    Not [NOTE: Deadline. Reports.] 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.''.
    (2) Relation to state laws.--Section 625(b)(1) of the Fair
    Credit Reporting Act (15 U.S.C. 1681t(b)(1), as so redesignated)
    is amended by adding at the end the following new subparagraph:
    ``(G) section 609(e), relating to information
    available to victims under section 609(e);''.

    (b) Public [NOTE: Deadline. 15 USC 1681c-1 note.] Campaign To
    Prevent Identity Theft.--Not later than 2 years after the date of
    enactment of this Act, the Commission shall establish and implement a
    media and distribution campaign to teach the public how to prevent
    identity theft. Such campaign shall include existing Commission
    education materials, as well as radio, television, and print public
    service announcements, video cassettes, interactive digital video discs
    (DVD's) or compact audio discs (CD's), and Internet resources.

    SEC. 152. BLOCKING OF INFORMATION RESULTING FROM IDENTITY THEFT.

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

    ``Sec. 605B. [NOTE: 15 USC 1681c-2.] Block of information resulting
    from identity theft

    ``(a) Block.--Except [NOTE: Deadline.] as otherwise provided in
    this section, a consumer reporting agency shall block the reporting of
    any information in the file of a consumer that the consumer identifies
    as information that resulted from an alleged identity theft, not later
    than 4 business days after the date of receipt by such agency of--
    ``(1) appropriate proof of the identity of the consumer;
    ``(2) a copy of an identity theft report;
    ``(3) the identification of such information by the
    consumer; and
    ``(4) a statement by the consumer that the information is
    not information relating to any transaction by the consumer.

    ``(b) Notification.--A consumer reporting agency shall promptly
    notify the furnisher of information identified by the consumer under
    subsection (a)--
    ``(1) that the information may be a result of identity
    theft;
    ``(2) that an identity theft report has been filed;
    ``(3) that a block has been requested under this section;
    and

    [[Page 1965]]
    117 STAT. 1965

    ``(4) of the effective dates of the block.

    ``(c) Authority To Decline or Rescind.--
    ``(1) In general.--A consumer reporting agency may decline
    to block, or may rescind any block, of information relating to a
    consumer under this section, if the consumer reporting agency
    reasonably determines that--
    ``(A) the information was blocked in error or a
    block was requested by the consumer in error;
    ``(B) the information was blocked, or a block was
    requested by the consumer, on the basis of a material
    misrepresentation of fact by the consumer relevant to
    the request to block; or
    ``(C) the consumer obtained possession of goods,
    services, or money as a result of the blocked
    transaction or transactions.
    ``(2) Notification to consumer.--If a block of information
    is declined or rescinded under this subsection, the affected
    consumer shall be notified promptly, in the same manner as
    consumers are notified of the reinsertion of information under
    section 611(a)(5)(B).
    ``(3) Significance of block.--For purposes of this
    subsection, if a consumer reporting agency rescinds a block, the
    presence of information in the file of a consumer prior to the
    blocking of such information is not evidence of whether the
    consumer knew or should have known that the consumer obtained
    possession of any goods, services, or money as a result of the
    block.

    ``(d) Exception for Resellers.--
    ``(1) No reseller file.--This section shall not apply to a
    consumer reporting agency, if the consumer reporting agency--
    ``(A) is a reseller;
    ``(B) is not, at the time of the request of the
    consumer under subsection (a), otherwise furnishing or
    reselling a consumer report concerning the information
    identified by the consumer; and
    ``(C) informs the consumer, by any means, that the
    consumer may report the identity theft to the Commission
    to obtain consumer information regarding identity theft.
    ``(2) Reseller with file.--The sole obligation of the
    consumer reporting agency under this section, with regard to any
    request of a consumer under this section, shall be to block the
    consumer report maintained by the consumer reporting agency from
    any subsequent use, if--
    ``(A) the consumer, in accordance with the
    provisions of subsection (a), identifies, to a consumer
    reporting agency, information in the file of the
    consumer that resulted from identity theft; and
    ``(B) the consumer reporting agency is a reseller of
    the identified information.
    ``(3) Notice.--In carrying out its obligation under
    paragraph (2), the reseller shall promptly provide a notice to
    the consumer of the decision to block the file. Such notice
    shall contain the name, address, and telephone number of each
    consumer reporting agency from which the consumer information
    was obtained for resale.

    [[Page 1966]]
    117 STAT. 1966

    ``(e) Exception for Verification Companies.--The provisions of this
    section do 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, except that, beginning 4 business days after receipt of
    information described in paragraphs (1) through (3) of subsection (a), a
    check services company shall not report to a national consumer reporting
    agency described in section 603(p), any information identified in the
    subject identity theft report as resulting from identity theft.
    ``(f) Access to Blocked Information by Law Enforcement Agencies.--No
    provision of this section shall be construed as requiring a consumer
    reporting agency to prevent a Federal, State, or local law enforcement
    agency from accessing blocked information in a consumer file to which
    the agency could otherwise obtain access under this title.''.
    (b) Clerical Amendment.--The table of sections for the Fair Credit
    Reporting Act (15 U.S.C. 1681 et seq.) is amended by inserting after the
    item relating to section 605 the following new items:

    ``605A. Identity theft prevention; fraud alerts and active duty alerts.
    ``605B. Block of information resulting from identity theft.''.

    SEC. 153. [NOTE: Procedures.] COORDINATION OF IDENTITY THEFT COMPLAINT
    INVESTIGATIONS.

    Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is
    amended by adding at the end the following:
    ``(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 and procedure for reporting identity
    theft.--The Commission, in consultation with the Federal banking
    agencies and the National Credit Union Administration, shall
    develop a model form and model procedures to be used by
    consumers who are victims of identity theft for contacting and
    informing creditors and consumer reporting agencies of the
    fraud.
    ``(3) Annual summary reports.--Each consumer reporting
    agency described in section 603(p) shall submit an annual
    summary report to the Commission on consumer complaints received
    by the agency on identity theft or fraud alerts.''.

    SEC. 154. PREVENTION OF REPOLLUTION OF CONSUMER REPORTS.

    (a) Prevention of Reinsertion of Erroneous Information.--Section
    623(a) of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)) is
    amended by adding at the end the following:
    ``(6) Duties of furnishers upon notice of identity theft-
    related information.--
    ``(A) Reasonable procedures.--A person that
    furnishes information to any consumer reporting agency
    shall have in place reasonable procedures to respond to
    any notification that it receives from a consumer
    reporting agency under section 605B relating to
    information resulting

    [[Page 1967]]
    117 STAT. 1967

    from identity theft, to prevent that person from
    refurnishing such blocked information.
    ``(B) Information alleged to result from identity
    theft.--If a consumer submits an identity theft report
    to a person who furnishes information to a consumer
    reporting agency at the address specified by that person
    for receiving such reports stating that information
    maintained by such person that purports to relate to the
    consumer resulted from identity theft, the person may
    not furnish such information that purports to relate to
    the consumer to any consumer reporting agency, unless
    the person subsequently knows or is informed by the
    consumer that the information is correct.''.

    (b) Prohibition on Sale or Transfer of Debt Caused by Identity
    Theft.--Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m),
    as amended by this Act, is amended by adding at the end the following:
    ``(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.''.

    SEC. 155. NOTICE BY DEBT COLLECTORS WITH RESPECT TO FRAUDULENT
    INFORMATION.

    Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m), as
    amended by this Act, is amended by adding at the end the following:
    ``(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

    [[Page 1968]]
    117 STAT. 1968

    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.''.

    SEC. 156. STATUTE OF LIMITATIONS.

    Section 618 of the Fair Credit Reporting Act (15 U.S.C. 1681p) is
    amended to read as follows:

    ``Sec. 618. Jurisdiction of courts; limitation of actions

    ``An action to enforce any liability created under this title may be
    brought in any appropriate United States district court, without regard
    to the amount in controversy, or in any other court of competent
    jurisdiction, not later than the earlier of--
    ``(1) 2 years after the date of discovery by the plaintiff
    of the violation that is the basis for such liability; or
    ``(2) 5 years after the date on which the violation that is
    the basis for such liability occurs.''.

    SEC. 157. STUDY ON THE USE OF TECHNOLOGY TO COMBAT IDENTITY THEFT.

    (a) Study Required.--The Secretary of the Treasury shall conduct a
    study of the use of biometrics and other similar technologies to reduce
    the incidence and costs to society of identity theft by providing
    convincing evidence of who actually performed a given financial
    transaction.
    (b) Consultation.--The Secretary of the Treasury shall consult with
    Federal banking agencies, the Commission, and representatives of
    financial institutions, consumer reporting agencies, Federal, State, and
    local government agencies that issue official forms or means of
    identification, State prosecutors, law enforcement agencies, the
    biometric industry, and the general public in formulating and conducting
    the study required by subsection (a).
    (c) Authorization of Appropriations.--There are authorized to be
    appropriated to the Secretary of the Treasury for fiscal year 2004, such
    sums as may be necessary to carry out the provisions of this section.
    (d) Report Required.--Before [NOTE: Deadline.] the end of the 180-
    day period beginning on the date of enactment of this Act, the Secretary
    shall submit a report to Congress containing the findings and
    conclusions of the study required under subsection (a), together with
    such recommendations for legislative or administrative actions as may be
    appropriate.

    TITLE II--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT
    INFORMATION

    SEC. 211. FREE CONSUMER REPORTS.

    (a) In General.--Section 612 of the Fair Credit Reporting Act (15
    U.S.C. 1681j) is amended--
    (1) by redesignating subsection (a) as subsection (f), and
    transferring it to the end of the section;
    (2) by inserting before subsection (b) the following:

    ``(a) Free Annual Disclosure.--
    ``(1) Nationwide consumer reporting agencies.--

    [[Page 1969]]
    117 STAT. 1969

    ``(A) In general.--All consumer reporting agencies
    described in subsections (p) and (w) of section 603
    shall make all disclosures pursuant to section 609 once
    during any 12-month period upon request of the consumer
    and without charge to the consumer.
    ``(B) Centralized [NOTE: Applicability.] source.--
    Subparagraph (A) shall apply with respect to a consumer
    reporting agency described in section 603(p) only if the
    request from the consumer is made using the centralized
    source established for such purpose in accordance with
    section 211(c) of the Fair and Accurate Credit
    Transactions Act of 2003.
    ``(C) Nationwide specialty consumer reporting
    agency.--
    ``(i) In general.--
    The [NOTE: Regulations.] Commission shall
    prescribe regulations applicable to each consumer
    reporting agency described in section 603(w) to
    require the establishment of a streamlined process
    for consumers to request consumer reports under
    subparagraph (A), which shall include, at a
    minimum, the establishment by each such agency of
    a toll-free telephone number for such requests.
    ``(ii) Considerations.--In prescribing
    regulations under clause (i), the Commission shall
    consider--
    ``(I) the significant demands that
    may be placed on consumer reporting
    agencies in providing such consumer
    reports;
    ``(II) appropriate means to ensure
    that consumer reporting agencies can
    satisfactorily meet those demands,
    including the efficacy of a system of
    staggering the availability to consumers
    of such consumer reports; and
    ``(III) the ease by which consumers
    should be able to contact consumer
    reporting agencies with respect to
    access to such consumer reports.
    ``(iii) Date of issuance.--
    The [NOTE: Deadline.] Commission shall issue the
    regulations required by this subparagraph in final
    form not later than 6 months after the date of
    enactment of the Fair and Accurate Credit
    Transactions Act of 2003.
    ``(iv) Consideration [NOTE: Effective
    date.] of ability to comply.--The regulations of
    the Commission under this subparagraph shall
    establish an effective date by which each
    nationwide specialty consumer reporting agency (as
    defined in section 603(w)) shall be required to
    comply with subsection (a), which effective date--
    ``(I) shall be established after
    consideration of the ability of each
    nationwide specialty consumer reporting
    agency to comply with subsection (a);
    and
    ``(II) [NOTE: Deadline.] shall be
    not later than 6 months after the date
    on which such regulations are issued in
    final form (or such additional period
    not to exceed 3 months, as the
    Commission determines appropriate).
    ``(2) Timing.--A [NOTE: Deadline.] consumer reporting
    agency shall provide a consumer report under paragraph (1) not
    later than 15 days

    [[Page 1970]]
    117 STAT. 1970

    after the date on which the request is received under paragraph
    (1).
    ``(3) Reinvestigations.--
    Notwithstanding [NOTE: Deadline.] the time periods specified
    in section 611(a)(1), a reinvestigation under that section by a
    consumer reporting agency upon a request of a consumer that is
    made after receiving a consumer report under this subsection
    shall be completed not later than 45 days after the date on
    which the request is received.
    ``(4) Exception for first 12 months of operation.--This
    subsection shall not apply to a consumer reporting agency that
    has not been furnishing consumer reports to third parties on a
    continuing basis during the 12-month period preceding a request
    under paragraph (1), with respect to consumers residing
    nationwide.'';
    (3) by redesignating subsection (d) as subsection (e);
    (4) by inserting before subsection (e), as redesignated, the
    following:

    ``(d) Free Disclosures in Connection With Fraud Alerts.--Upon the
    request of a consumer, a consumer reporting agency described in section
    603(p) shall make all disclosures pursuant to section 609 without charge
    to the consumer, as provided in subsections (a)(2) and (b)(2) of section
    605A, as applicable.'';
    (5) in subsection (e), as redesignated, by striking
    ``subsection (a)'' and inserting ``subsection (f)''; and
    (6) in subsection (f), as redesignated, by striking ``Except
    as provided in subsections (b), (c), and (d), a'' and inserting
    ``In the case of a request from a consumer other than a request
    that is covered by any of subsections (a) through (d), a''.

    (b) Circumvention Prohibited.--The Fair Credit Reporting Act (15
    U.S.C. 1681 et seq.) is amended by adding after section 628, as added by
    section 216 of this Act, the following new section:

    ``Sec. 629. [NOTE: 15 USC 1681x.] Corporate and technological
    circumvention prohibited

    ``The [NOTE: Regulations. Effective date.] Commission shall
    prescribe regulations, to become effective not later than 90 days after
    the date of enactment of this section, to prevent a consumer reporting
    agency from circumventing or evading treatment as a consumer reporting
    agency described in section 603(p) for purposes of this title,
    including--
    ``(1) by means of a corporate reorganization or
    restructuring, including a merger, acquisition, dissolution,
    divestiture, or asset sale of a consumer reporting agency; or
    ``(2) by maintaining or merging public record and credit
    account information in a manner that is substantially equivalent
    to that described in paragraphs (1) and (2) of section 603(p),
    in the manner described in section 603(p).''.

    (c) Summary of Rights To Obtain and Dispute Information in Consumer
    Reports and To Obtain Credit Scores.--Section 609(c) of the Fair Credit
    Reporting Act (15 U.S.C. 1681g) is amended to read as follows:
    ``(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.

    [[Page 1971]]
    117 STAT. 1971

    ``(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 Commission
    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
    Commission prescribed under section 612(a)(1)(C).
    ``(C) Availability [NOTE: Public information.] 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
    Commission under paragraph (1);
    ``(B) in the case of a consumer reporting agency
    described in section 603(p), a toll-free telephone
    number established by the agency, at which personnel are
    accessible to consumers during normal business hours;
    ``(C) a list of all Federal agencies responsible for
    enforcing any provision of this title, and the address
    and any appropriate phone number of each such agency, in
    a form that will assist the consumer in selecting the
    appropriate agency;
    ``(D) a statement that the consumer may have
    additional rights under State law, and that the consumer
    may wish to contact a State or local consumer protection
    agency or a State attorney general (or the equivalent
    thereof) to learn of those rights; and
    ``(E) a statement that a consumer reporting agency
    is not required to remove accurate derogatory
    information from the file of a consumer, unless the
    information is outdated under section 605 or cannot be
    verified.''.

    [[Page 1972]]
    117 STAT. 1972

    (d) Rulemaking [NOTE: 15 USC 1681j note.] Required.--
    (1) In general.--The Commission shall prescribe regulations
    applicable to consumer reporting agencies described in section
    603(p) of the Fair Credit Reporting Act, to require the
    establishment of--
    (A) a centralized source through which consumers may
    obtain a consumer report from each such consumer
    reporting agency, using a single request, and without
    charge to the consumer, as provided in section 612(a) of
    the Fair Credit Reporting Act (as amended by this
    section); and
    (B) a standardized form for a consumer to make such
    a request for a consumer report by mail or through an
    Internet website.
    (2) Considerations.--In prescribing regulations under
    paragraph (1), the Commission shall consider--
    (A) the significant demands that may be placed on
    consumer reporting agencies in providing such consumer
    reports;
    (B) appropriate means to ensure that consumer
    reporting agencies can satisfactorily meet those
    demands, including the efficacy of a system of
    staggering the availability to consumers of such
    consumer reports; and
    (C) the ease by which consumers should be able to
    contact consumer reporting agencies with respect to
    access to such consumer reports.
    (3) Centralized source.--The centralized source for a
    request for a consumer report from a consumer required by this
    subsection shall provide for--
    (A) a toll-free telephone number for such purpose;
    (B) use of an Internet website for such purpose; and
    (C) a process for requests by mail for such purpose.
    (4) Transition.--The regulations of the Commission under
    paragraph (1) shall provide for an orderly transition by
    consumer reporting agencies described in section 603(p) of the
    Fair Credit Reporting Act to the centralized source for consumer
    report distribution required by section 612(a)(1)(B), as amended
    by this section, in a manner that--
    (A) does not temporarily overwhelm such consumer
    reporting agencies with requests for disclosures of
    consumer reports beyond their capacity to deliver; and
    (B) does not deny creditors, other users, and
    consumers access to consumer reports on a time-sensitive
    basis for specific purposes, such as home purchases or
    suspicions of identity theft, during the transition
    period.
    (5) Timing.--Regulations required by this subsection shall--
    (A) [NOTE: Deadline.] be issued in final form not
    later than 6 months after the date of enactment of this
    Act; and
    (B) [NOTE: Effective date.] become effective not
    later than 6 months after the date on which they are
    issued in final form.
    (6) Scope of regulations.--
    (A) In general.--The Commission shall, by rule,
    determine whether to require a consumer reporting agency
    that compiles and maintains files on consumers on
    substantially a nationwide basis, other than one
    described in section

    [[Page 1973]]
    117 STAT. 1973

    603(p) of the Fair Credit Reporting Act, to make free
    consumer reports available upon consumer request, and if
    so, whether such consumer reporting agencies should make
    such free reports available through the centralized
    source described in paragraph (1)(A).
    (B) Considerations.--Before making any determination
    under subparagraph (A), the Commission shall consider--
    (i) the number of requests for consumer
    reports to, and the number of consumer reports
    generated by, the consumer reporting agency, in
    comparison with consumer reporting agencies
    described in subsections (p) and (w) of section
    603 of the Fair Credit Reporting Act;
    (ii) the overall scope of the operations of
    the consumer reporting agency;
    (iii) the needs of consumers for access to
    consumer reports provided by consumer reporting
    agencies free of charge;
    (iv) the costs of providing access to consumer
    reports by consumer reporting agencies free of
    charge; and
    (v) the effects on the ongoing competitive
    viability of such consumer reporting agencies if
    such free access is required.

    SEC. 212. DISCLOSURE OF CREDIT SCORES.

    (a) Statement on Availability of Credit Scores.--Section 609(a) of
    the Fair Credit Reporting Act (15 U.S.C. 1681g(a)) is amended by adding
    at the end the following new paragraph:
    ``(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) Disclosure of Credit Scores.--Section 609 of the Fair Credit
    Reporting Act (15 U.S.C. 1681g), as amended by this Act, is amended by
    adding at the end the following:
    ``(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

    [[Page 1974]]
    117 STAT. 1974

    ``(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--

    [[Page 1975]]
    117 STAT. 1975

    ``(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
    Commission, 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.''.

    (c) Disclosure of Credit Scores by Certain Mortgage Lenders.--
    Section 609 of the Fair Credit Reporting Act (15 U.S.C. 1681g), as
    amended by this Act, is amended by adding at the end the following:
    ``(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

    [[Page 1976]]
    117 STAT. 1976

    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);

    [[Page 1977]]
    117 STAT. 1977

    ``(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.''.

    (d) Inclusion of Key Factor in Credit Score Information in Consumer
    Report.--Section 605(d) of the Fair Credit Reporting Act (15 U.S.C.
    1681c(d)) is amended--
    (1) by striking ``Disclosed.--Any consumer reporting
    agency'' and inserting ``Disclosed.--
    ``(1) Title 11 information.--Any consumer reporting
    agency''; and
    (2) by adding at the end the following new paragraph:
    ``(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) Technical and Conforming Amendments.--Section 625(b) of the Fair
    Credit Reporting Act (15 U.S.C. 1681t(b)), as so designated by section
    214 of this Act, is amended--
    (1) by striking ``or'' at the end of paragraph (2); and
    (2) by striking paragraph (3) and inserting the following:

    [[Page 1978]]
    117 STAT. 1978

    ``(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''.

    SEC. 213. ENHANCED DISCLOSURE OF THE MEANS AVAILABLE TO OPT OUT OF
    PRESCREENED LISTS.

    (a) Notice and Response Format for Users of Reports.--Section
    615(d)(2) of the Fair Credit Reporting Act (15 U.S.C. 1681m(d)(2)) is
    amended to read as follows:
    ``(2) Disclosure of address and telephone number; format.--A
    statement under paragraph (1) shall--

    [[Page 1979]]
    117 STAT. 1979

    ``(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 Commission, by rule, in
    consultation with the Federal banking agencies and the
    National Credit Union Administration.''.

    (b) Rulemaking [NOTE: Deadline. 15 USC 1681m note.] Schedule.--
    Regulations required by section 615(d)(2) of the Fair Credit Reporting
    Act, as amended by this section, shall be issued in final form not later
    than 1 year after the date of enactment of this Act.

    (c) Duration of Elections.--Section 604(e) of the Fair Credit
    Reporting Act (15 U.S.C. 1681b(e)) is amended in each of paragraphs
    (3)(A) and (4)(B)(i)), by striking ``2-year period'' each place that
    term appears and inserting ``5-year period''.
    (d) Public [NOTE: Internet. 15 USC 1681b note.] Awareness
    Campaign.--The Commission shall actively publicize and conspicuously
    post on its website any address and the toll-free telephone number
    established as part of a notification system for opting out of
    prescreening under section 604(e) of the Fair Credit Reporting Act (15
    U.S.C. 1681b(e)), and otherwise take measures to increase public
    awareness regarding the availability of the right to opt out of
    prescreening.

    (e) Analysis [NOTE: 15 USC 1601 note.] of Further Restrictions on
    Offers of Credit or Insurance.--
    (1) In general.--The Board shall conduct a study of--
    (A) the ability of consumers to avoid receiving
    written offers of credit or insurance in connection with
    transactions not initiated by the consumer; and
    (B) the potential impact that any further
    restrictions on providing consumers with such written
    offers of credit or insurance would have on consumers.
    (2) Report.--The [NOTE: Deadline.] Board shall submit a
    report summarizing the results of the study required under
    paragraph (1) to the Congress not later than 12 months after the
    date of enactment of this Act, together with such
    recommendations for legislative or administrative action as the
    Board may determine to be appropriate.
    (3) Content of report.--The report described in paragraph
    (2) shall address the following issues:
    (A) The current statutory or voluntary mechanisms
    that are available to a consumer to notify lenders and
    insurance providers that the consumer does not wish to
    receive written offers of credit or insurance.
    (B) The extent to which consumers are currently
    utilizing existing statutory and voluntary mechanisms to
    avoid receiving offers of credit or insurance.
    (C) The benefits provided to consumers as a result
    of receiving written offers of credit or insurance.
    (D) Whether consumers incur significant costs or are
    otherwise adversely affected by the receipt of written
    offers of credit or insurance.
    (E) Whether further restricting the ability of
    lenders and insurers to provide written offers of credit
    or insurance to consumers would affect--
    (i) the cost consumers pay to obtain credit or
    insurance;

    [[Page 1980]]
    117 STAT. 1980

    (ii) the availability of credit or insurance;
    (iii) consumers' knowledge about new or
    alternative products and services;
    (iv) the ability of lenders or insurers to
    compete with one another; and
    (v) the ability to offer credit or insurance
    products to consumers who have been traditionally
    underserved.

    SEC. 214. AFFILIATE SHARING.

    (a) Limitation.--The Fair Credit Reporting Act (15 U.S.C. 1601 et
    seq.) is amended--
    (1) by redesignating sections 624 (15 U.S.C. 1681t), 625 (15
    U.S.C. 1681u), and 626 (15 U.S.C. 6181v) as sections 625, 626,
    and 627, respectively; and
    (2) by inserting after section 623 the following:

    ``Sec. 624. [NOTE: 15 USC 1681s-3.] Affiliate sharing

    ``(a) Special Rule for Solicitation for Purposes of Marketing.--
    ``(1) Notice.--Any person that receives from another person
    related to it by common ownership or affiliated by corporate
    control a communication of information that would be a consumer
    report, but for clauses (i), (ii), and (iii) of section
    603(d)(2)(A), may not use the information to make a solicitation
    for marketing purposes to a consumer about its products or
    services, unless--
    ``(A) it is clearly and conspicuously disclosed to
    the consumer that the information may be communicated
    among such persons for purposes of making such
    solicitations to the consumer; and
    ``(B) the consumer is provided an opportunity and a
    simple method to prohibit the making of such
    solicitations to the consumer by such person.
    ``(2) Consumer choice.--
    ``(A) In general.--The notice required under
    paragraph (1) shall allow the consumer the opportunity
    to prohibit all solicitations referred to in such
    paragraph, and may allow the consumer to choose from
    different options when electing to prohibit the sending
    of such solicitations, including options regarding the
    types of entities and information covered, and which
    methods of delivering solicitations the consumer elects
    to prohibit.
    ``(B) Format.--Notwithstanding subparagraph (A), the
    notice required under paragraph (1) shall be clear,
    conspicuous, and concise, and any method provided under
    paragraph (1)(B) shall be simple. The regulations
    prescribed to implement this section shall provide
    specific guidance regarding how to comply with such
    standards.
    ``(3) Duration.--
    ``(A) In general.--The election of a consumer
    pursuant to paragraph (1)(B) to prohibit the making of
    solicitations shall be effective for at least 5 years,
    beginning on the date on which the person receives the
    election of the consumer, unless the consumer requests
    that such election be revoked.
    ``(B) Notice upon expiration of effective period.--
    At such time as the election of a consumer pursuant to

    [[Page 1981]]
    117 STAT. 1981

    paragraph (1)(B) is no longer effective, a person may
    not use information that the person receives in the
    manner described in paragraph (1) to make any
    solicitation for marketing purposes to the consumer,
    unless the consumer receives a notice and an
    opportunity, using a simple method, to extend the opt-
    out for another period of at least 5 years, pursuant to
    the procedures described in paragraph (1).
    ``(4) Scope.--This section shall not apply to a person--
    ``(A) using information to make a solicitation for
    marketing purposes to a consumer with whom the person
    has a pre-existing business relationship;
    ``(B) using information to facilitate communications
    to an individual for whose benefit the person provides
    employee benefit or other services pursuant to a
    contract with an employer related to and arising out of
    the current employment relationship or status of the
    individual as a participant or beneficiary of an
    employee benefit plan;
    ``(C) using information to perform services on
    behalf of another person related by common ownership or
    affiliated by corporate control, except that this
    subparagraph shall not be construed as permitting a
    person to send solicitations on behalf of another
    person, if such other person would not be permitted to
    send the solicitation on its own behalf as a result of
    the election of the consumer to prohibit solicitations
    under paragraph (1)(B);
    ``(D) using information in response to a
    communication initiated by the consumer;
    ``(E) using information in response to solicitations
    authorized or requested by the consumer; or
    ``(F) if compliance with this section by that person
    would prevent compliance by that person with any
    provision of State insurance laws pertaining to unfair
    discrimination in any State in which the person is
    lawfully doing business.
    ``(5) No retroactivity.--This subsection shall not prohibit
    the use of information to send a solicitation to a consumer if
    such information was received prior to the date on which persons
    are required to comply with regulations implementing this
    subsection.

    ``(b) Notice for Other Purposes Permissible.--A notice or other
    disclosure under this section may be coordinated and consolidated with
    any other notice required to be issued under any other provision of law
    by a person that is subject to this section, and a notice or other
    disclosure that is equivalent to the notice required by subsection (a),
    and that is provided by a person described in subsection (a) to a
    consumer together with disclosures required by any other provision of
    law, shall satisfy the requirements of subsection (a).
    ``(c) User Requirements.--Requirements with respect to the use by a
    person of information received from another person related to it by
    common ownership or affiliated by corporate control, such as the
    requirements of this section, constitute requirements with respect to
    the exchange of information among persons affiliated by common ownership
    or common corporate control, within the meaning of section 625(b)(2).

    [[Page 1982]]
    117 STAT. 1982

    ``(d) Definitions.--For purposes of this section, the following
    definitions shall apply:
    ``(1) Pre-existing business relationship.--The term `pre-
    existing business relationship' means a relationship between a
    person, or a person's licensed agent, and a consumer, based on--
    ``(A) a financial contract between a person and a
    consumer which is in force;
    ``(B) the purchase, rental, or lease by the consumer
    of that person's goods or services, or a financial
    transaction (including holding an active account or a
    policy in force or having another continuing
    relationship) between the consumer and that person
    during the 18-month period immediately preceding the
    date on which the consumer is sent a solicitation
    covered by this section;
    ``(C) an inquiry or application by the consumer
    regarding a product or service offered by that person,
    during the 3-month period immediately preceding the date
    on which the consumer is sent a solicitation covered by
    this section; or
    ``(D) any other pre-existing customer relationship
    defined in the regulations implementing this section.
    ``(2) Solicitation.--The term `solicitation' means the
    marketing of a product or service initiated by a person to a
    particular consumer that is based on an exchange of information
    described in subsection (a), and is intended to encourage the
    consumer to purchase such product or service, but does not
    include communications that are directed at the general public
    or determined not to be a solicitation by the regulations
    prescribed under this section.''.

    (b) Rulemaking [NOTE: 15 USC 1681s-3 note.] Required.--
    (1) In general.--The Federal banking agencies, the National
    Credit Union Administration, and the Commission, with respect to
    the entities that are subject to their respective enforcement
    authority under section 621 of the Fair Credit Reporting Act and
    the Securities and Exchange Commission, and in coordination as
    described in paragraph (2), shall prescribe regulations to
    implement section 624 of the Fair Credit Reporting Act, as added
    by this section.
    (2) Coordination.--Each agency required to prescribe
    regulations under paragraph (1) shall consult and coordinate
    with each other such agency so that, to the extent possible, the
    regulations prescribed by each such entity are consistent and
    comparable with the regulations prescribed by each other such
    agency.
    (3) Considerations.--In promulgating regulations under this
    subsection, each agency referred to in paragraph (1) shall--
    (A) ensure that affiliate sharing notification
    methods provide a simple means for consumers to make
    determinations and choices under section 624 of the Fair
    Credit Reporting Act, as added by this section;
    (B) consider the affiliate sharing notification
    practices employed on the date of enactment of this Act
    by persons that will be subject to that section 624; and
    (C) ensure that notices and disclosures may be
    coordinated and consolidated, as provided in subsection
    (b) of that section 624.

    [[Page 1983]]
    117 STAT. 1983

    (4) Timing.--Regulations required by this subsection shall--
    (A) [NOTE: Deadline.] be issued in final form not
    later than 9 months after the date of enactment of this
    Act; and
    (B) [NOTE: Effective date.] become effective not
    later than 6 months after the date on which they are
    issued in final form.

    (c) Technical and Conforming Amendments.--
    (1) Definitions.--Section 603(d)(2)(A) of the Fair Credit
    Reporting Act (15 U.S.C. 1681(d)(2)(A)) [NOTE: 15 USC
    1681a.] is amended by inserting ``subject to section 624,''
    after ``(A)''.
    (2) Relation to state laws.--Section 625(b)(1) of the Fair
    Credit Reporting Act (15 U.S.C. 1681t(b)(1)), as so designated
    by subsection (a) of this section, is amended--
    (A) by striking ``or'' after the semicolon at the
    end of subparagraph (E); and
    (B) by adding at the end the following new
    subparagraph:
    ``(H) section 624, relating to the exchange and use
    of information to make a solicitation for marketing
    purposes; or''.
    (3) Cross reference correction.--Section 627(d) of the Fair
    Credit Reporting Act (15 U.S.C. 1681v(d)), as so designated by
    subsection (a) of this section, is amended by striking ``section
    625'' and inserting ``section 626''.
    (4) Table of sections.--The table of sections for title VI
    of the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.)
    is amended by striking the items relating to sections 624
    through 626 and inserting the following:

    ``624. Affiliate sharing.
    ``625. Relation to State laws.
    ``626. Disclosures to FBI for counterintelligence purposes.
    ``627. Disclosures to governmental agencies for counterintelligence
    purposes.''.

    (e) Studies [NOTE: 15 USC 1681s-3 note.] of Information Sharing
    Practices.--
    (1) In general.--The Federal banking agencies, the National
    Credit Union Administration, and the Commission shall jointly
    conduct regular studies of the consumer information sharing
    practices by financial institutions and other persons that are
    creditors or users of consumer reports with their affiliates.
    (2) Matters for study.--In conducting the studies required
    by paragraph (1), the agencies described in paragraph (1)
    shall--
    (A) identify--
    (i) the purposes for which financial
    institutions and other creditors and users of
    consumer reports share consumer information;
    (ii) the types of information shared by such
    entities with their affiliates;
    (iii) the number of choices provided to
    consumers with respect to the control of such
    sharing, and the degree to and manner in which
    consumers exercise such choices, if at all; and
    (iv) whether such entities share or may share
    personally identifiable transaction or experience
    information with affiliates for purposes--
    (I) that are related to employment
    or hiring, including whether the person
    that is the subject

    [[Page 1984]]
    117 STAT. 1984

    of such information is given notice of
    such sharing, and the specific uses of
    such shared information; or
    (II) of general publication of such
    information; and
    (B) specifically examine the information sharing
    practices that financial institutions and other
    creditors and users of consumer reports and their
    affiliates employ for the purpose of making underwriting
    decisions or credit evaluations of consumers.
    (3) Reports.--
    (A) Initial report.--Not [NOTE: Deadlines.] later
    than 3 years after the date of enactment of this Act,
    the Federal banking agencies, the National Credit Union
    Administration, and the Commission shall jointly submit
    a report to the Congress on the results of the initial
    study conducted in accordance with this subsection,
    together with any recommendations for legislative or
    regulatory action.
    (B) Followup reports.--The Federal banking agencies,
    the National Credit Union Administration, and the
    Commission shall, not less frequently than once every 3
    years following the date of submission of the initial
    report under subparagraph (A), jointly submit a report
    to the Congress that, together with any recommendations
    for legislative or regulatory action--
    (i) documents any changes in the areas of
    study referred to in paragraph (2)(A) occurring
    since the date of submission of the previous
    report;
    (ii) identifies any changes in the practices
    of financial institutions and other creditors and
    users of consumer reports in sharing consumer
    information with their affiliates for the purpose
    of making underwriting decisions or credit
    evaluations of consumers occurring since the date
    of submission of the previous report; and
    (iii) examines the effects that changes
    described in clause (ii) have had, if any, on the
    degree to which such affiliate sharing practices
    reduce the need for financial institutions,
    creditors, and other users of consumer reports to
    rely on consumer reports for such decisions.

    SEC. 215. [NOTE: 15 USC 1681 note.] STUDY OF EFFECTS OF CREDIT SCORES
    AND CREDIT-BASED INSURANCE SCORES ON AVAILABILITY AND
    AFFORDABILITY OF FINANCIAL PRODUCTS.

    (a) Study Required.--The Commission and the Board, in consultation
    with the Office of Fair Housing and Equal Opportunity of the Department
    of Housing and Urban Development, shall conduct a study of--
    (1) the effects of the use of credit scores and credit-based
    insurance scores on the availability and affordability of
    financial products and services, including credit cards,
    mortgages, auto loans, and property and casualty insurance;
    (2) the statistical relationship, utilizing a multivariate
    analysis that controls for prohibited factors under the Equal
    Credit Opportunity Act and other known risk factors, between
    credit

    [[Page 1985]]
    117 STAT. 1985

    scores and credit-based insurance scores and the quantifiable
    risks and actual losses experienced by businesses;
    (3) the extent to which, if any, the use of credit scoring
    models, credit scores, and credit-based insurance scores impact
    on the availability and affordability of credit and insurance to
    the extent information is currently available or is available
    through proxies, by geography, income, ethnicity, race, color,
    religion, national origin, age, sex, marital status, and creed,
    including the extent to which the consideration or lack of
    consideration of certain factors by credit scoring systems could
    result in negative or differential treatment of protected
    classes under the Equal Credit Opportunity Act, and the extent
    to which, if any, the use of underwriting systems relying on
    these models could achieve comparable results through the use of
    factors with less negative impact; and
    (4) the extent to which credit scoring systems are used by
    businesses, the factors considered by such systems, and the
    effects of variables which are not considered by such systems.

    (b) Public Participation.--The Commission shall seek public input
    about the prescribed methodology and research design of the study
    described in subsection (a), including from relevant Federal regulators,
    State insurance regulators, community, civil rights, consumer, and
    housing groups.
    (c) Report Required.--
    (1) In general.--Before [NOTE: Deadline.] the end of the
    24-month period beginning on the date of enactment of this Act,
    the Commission shall submit a detailed report on the study
    conducted pursuant to subsection (a) to the Committee on
    Financial Services of the House of Representatives and the
    Committee on Banking, Housing, and Urban Affairs of the Senate.
    (2) Contents of report.--The report submitted under
    paragraph (1) shall include the findings and conclusions of the
    Commission, recommendations to address specific areas of
    concerns addressed in the study, and recommendations for
    legislative or administrative action that the Commission may
    determine to be necessary to ensure that credit and credit-based
    insurance scores are used appropriately and fairly to avoid
    negative effects.

    SEC. 216. DISPOSAL OF CONSUMER REPORT INFORMATION AND RECORDS.

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

    ``Sec. 628. [NOTE: 15 USC 1681w.] Disposal of records

    ``(a) Regulations.--
    ``(1) In general.--Not [NOTE: Deadline.] later than 1 year
    after the date of enactment of this section, the Federal banking
    agencies, the National Credit Union Administration, and the
    Commission with respect to the entities that are subject to
    their respective enforcement authority under section 621, and
    the Securities and Exchange Commission, and in coordination as
    described in paragraph (2), shall issue final regulations
    requiring any person that maintains or otherwise possesses
    consumer information, or any compilation of consumer
    information,

    [[Page 1986]]
    117 STAT. 1986

    derived from consumer reports for a business purpose to properly
    dispose of any such information or compilation.
    ``(2) Coordination.--Each agency required to prescribe
    regulations under paragraph (1) shall--
    ``(A) consult and coordinate with each other such
    agency so that, to the extent possible, the regulations
    prescribed by each such agency are consistent and
    comparable with the regulations by each such other
    agency; and
    ``(B) ensure that such regulations are consistent
    with the requirements and regulations issued pursuant to
    Public Law 106-102 and other provisions of Federal law.
    ``(3) Exemption authority.--In issuing regulations under
    this section, the Federal banking agencies, the National Credit
    Union Administration, the Commission, and the Securities and
    Exchange Commission may exempt any person or class of persons
    from application of those regulations, as such agency deems
    appropriate to carry out the purpose of this section.

    ``(b) Rule of Construction.--Nothing in this section shall be
    construed--
    ``(1) to require a person to maintain or destroy any record
    pertaining to a consumer that is not imposed under other law; or
    ``(2) to alter or affect any requirement imposed under any
    other provision of law to maintain or destroy such a record.''.

    (b) Clerical Amendment.--The table of sections for title VI of the
    Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) is amended by
    inserting after the item relating to section 627, as added by section
    214 of this Act, the following:

    ``628. Disposal of records.
    ``629. Corporate and technological circumvention prohibited.''.

    SEC. 217. REQUIREMENT TO DISCLOSE COMMUNICATIONS TO A CONSUMER REPORTING
    AGENCY.

    (a) In General.--Section 623(a) of the Fair Credit Reporting Act (15
    U.S.C. 1681s-2(a)) as amended by this Act, is amended by inserting after
    paragraph (6), the following new paragraph:
    ``(7) Negative information.--
    ``(A) Notice to consumer required.--
    ``(i) In general.--If any financial
    institution that extends credit and regularly and
    in the ordinary course of business furnishes
    information to a consumer reporting agency
    described in section 603(p) furnishes negative
    information to such an agency regarding credit
    extended to a customer, the financial institution
    shall provide a notice of such furnishing of
    negative information, in writing, to the customer.
    ``(ii) Notice effective for subsequent
    submissions.--After providing such notice, the
    financial institution may submit additional
    negative information to a consumer reporting
    agency described in section 603(p) with respect to
    the same transaction, extension of credit,
    account, or customer without providing additional
    notice to the customer.
    ``(B) Time of notice.--
    ``(i) In [NOTE: Deadline.] general.--The
    notice required under subparagraph (A) shall be
    provided to the customer prior to, or no later
    than 30 days after, furnishing

    [[Page 1987]]
    117 STAT. 1987

    the negative information to a consumer reporting
    agency described in section 603(p).
    ``(ii) Coordination with new account
    disclosures.--If the notice is provided to the
    customer prior to furnishing the negative
    information to a consumer reporting agency, the
    notice may not be included in the initial
    disclosures provided under section 127(a) of the
    Truth in Lending Act.
    ``(C) Coordination with other disclosures.--The
    notice required under subparagraph (A)--
    ``(i) may be included on or with any notice of
    default, any billing statement, or any other
    materials provided to the customer; and
    ``(ii) must be clear and conspicuous.
    ``(D) Model disclosure.--
    ``(i) Duty of board to prepare.--The Board
    shall prescribe a brief model disclosure a
    financial institution may use to comply with
    subparagraph (A), which shall not exceed 30 words.
    ``(ii) Use of model not required.--No
    provision of this paragraph shall be construed as
    requiring a financial institution to use any such
    model form prescribed by the Board.
    ``(iii) Compliance using model.--A financial
    institution shall be deemed to be in compliance
    with subparagraph (A) if the financial institution
    uses any such model form prescribed by the Board,
    or the financial institution uses any such model
    form and rearranges its format.
    ``(E) Use of notice without submitting negative
    information.--No provision of this paragraph shall be
    construed as requiring a financial institution that has
    provided a customer with a notice described in
    subparagraph (A) to furnish negative information about
    the customer to a consumer reporting agency.
    ``(F) Safe harbor.--A financial institution shall
    not be liable for failure to perform the duties required
    by this paragraph if, at the time of the failure, the
    financial institution maintained reasonable policies and
    procedures to comply with this paragraph or the
    financial institution reasonably believed that the
    institution is prohibited, by law, from contacting the
    consumer.
    ``(G) Definitions.--For purposes of this paragraph,
    the following definitions shall apply:
    ``(i) Negative information.--The term
    `negative information' means information
    concerning a customer's delinquencies, late
    payments, insolvency, or any form of default.
    ``(ii) Customer; financial institution.--The
    terms `customer' and `financial institution' have
    the same meanings as in section 509 Public Law
    106-102.''.

    (b) Model Disclosure Form.--Before [NOTE: Deadline. Federal
    Register, publication. 15 USC 1681s-2 note.] the end of the 6-month
    period beginning on the date of enactment of this Act, the Board shall
    adopt the model disclosure required under the amendment

    [[Page 1988]]
    117 STAT. 1988

    made by subsection (a) after notice duly given in the Federal Register
    and an opportunity for public comment in accordance with section 553 of
    title 5, United States Code.

    TITLE III--ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION

    SEC. 311. RISK-BASED PRICING NOTICE.

    (a) Duties of Users.--Section 615 of the Fair Credit Reporting Act
    (15 U.S.C. 1681m), as amended by this Act, is amended by adding at the
    end the following:
    ``(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; and
    ``(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)).

    [[Page 1989]]
    117 STAT. 1989

    ``(6) Rulemaking.--
    ``(A) Rules required.--The Commission and the Board
    shall jointly prescribe rules.
    ``(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.
    ``(B) Administrative enforcement.--This section
    shall be enforced exclusively under section 621 by the
    Federal agencies and officials identified in that
    section.''.

    (b) Relation to State Laws.--Section 625(b)(1) of the Fair Credit
    Reporting Act (15 U.S.C. 1681t(b)(1)), as so designated by section 214
    of this Act, is amended by adding at the end the following:
    ``(I) section 615(h), relating to the duties of
    users of consumer reports to provide notice with respect
    to terms in certain credit transactions;''.

    SEC. 312. PROCEDURES TO ENHANCE THE ACCURACY AND INTEGRITY OF
    INFORMATION FURNISHED TO CONSUMER REPORTING AGENCIES.

    (a) Accuracy Guidelines and Regulations.--Section 623 of the Fair
    Credit Reporting Act (15 U.S.C. 1681s-2) is amended by adding at the end
    the following:
    ``(e) Accuracy Guidelines and Regulations Required.--
    ``(1) Guidelines.--The Federal banking agencies, the
    National Credit Union Administration, and the Commission shall,
    with respect to the entities that are subject to their
    respective enforcement authority under section 621, and in
    coordination as described in paragraph (2)--
    ``(A) establish and maintain guidelines for use by
    each person that furnishes information to a consumer
    reporting agency regarding the accuracy and integrity of
    the information relating to consumers that such entities
    furnish to

    [[Page 1990]]
    117 STAT. 1990

    consumer reporting agencies, and update such guidelines
    as often as necessary; and
    ``(B) prescribe regulations requiring each person
    that furnishes information to a consumer reporting
    agency to establish reasonable policies and procedures
    for implementing the guidelines established pursuant to
    subparagraph (A).
    ``(2) Coordination.--Each agency required to prescribe
    regulations under paragraph (1) shall consult and coordinate
    with each other such agency so that, to the extent possible, the
    regulations prescribed by each such entity are consistent and
    comparable with the regulations prescribed by each other such
    agency.
    ``(3) Criteria.--In developing the guidelines required by
    paragraph (1)(A), the agencies described in paragraph (1)
    shall--
    ``(A) identify patterns, practices, and specific
    forms of activity that can compromise the accuracy and
    integrity of information furnished to consumer reporting
    agencies;
    ``(B) review the methods (including technological
    means) used to furnish information relating to consumers
    to consumer reporting agencies;
    ``(C) determine whether persons that furnish
    information to consumer reporting agencies maintain and
    enforce policies to assure the accuracy and integrity of
    information furnished to consumer reporting agencies;
    and
    ``(D) examine the policies and processes that
    persons that furnish information to consumer reporting
    agencies employ to conduct reinvestigations and correct
    inaccurate information relating to consumers that has
    been furnished to consumer reporting agencies.''.

    (b) Duty of Furnishers To Provide Accurate Information.--Section
    623(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)(1)) is
    amended--
    (1) in subparagraph (A), by striking ``knows or consciously
    avoids knowing that the information is inaccurate'' and
    inserting ``knows or has reasonable cause to believe that the
    information is inaccurate''; and
    (2) by adding at the end the following:
    ``(D) Definition.--For purposes of subparagraph (A),
    the term `reasonable cause to believe that the
    information is inaccurate' means having specific
    knowledge, other than solely allegations by the
    consumer, that would cause a reasonable person to have
    substantial doubts about the accuracy of the
    information.''.

    (c) Ability of Consumer To Dispute Information Directly With
    Furnisher.--Section 623(a) of the Fair Credit Reporting Act (15 U.S.C.
    1681s-2(a)), as amended by this Act, is amended by adding at the end the
    following:
    ``(8) Ability of consumer to dispute information directly
    with furnisher.--
    ``(A) In general.--
    The [NOTE: Regulations.] Federal banking agencies, the
    National Credit Union Administration, and the Commission
    shall jointly prescribe regulations that shall identify
    the circumstances under which a furnisher shall be
    required to reinvestigate a dispute concerning the
    accuracy of

    [[Page 1991]]
    117 STAT. 1991

    information contained in a consumer report on the
    consumer, based on a direct request of a consumer.
    ``(B) Considerations.--In prescribing regulations
    under subparagraph (A), the agencies shall weigh--
    ``(i) the benefits to consumers with the costs
    on furnishers and the credit reporting system;
    ``(ii) the impact on the overall accuracy and
    integrity of consumer reports of any such
    requirements;
    ``(iii) whether direct contact by the consumer
    with the furnisher would likely result in the most
    expeditious resolution of any such dispute; and
    ``(iv) the potential impact on the credit
    reporting process if credit repair organizations,
    as defined in section 403(3), including entities
    that would be a credit repair organization, but
    for section 403(3)(B)(i), are able to circumvent
    the prohibition in subparagraph (G).
    ``(C) Applicability.--Subparagraphs (D) through (G)
    shall apply in any circumstance identified under the
    regulations promulgated under subparagraph (A).
    ``(D) Submitting a notice of dispute.--A consumer
    who seeks to dispute the accuracy of information shall
    provide a dispute notice directly to such person at the
    address specified by the person for such notices that--
    ``(i) identifies the specific information that
    is being disputed;
    ``(ii) explains the basis for the dispute; and
    ``(iii) includes all supporting documentation
    required by the furnisher to substantiate the
    basis of the dispute.
    ``(E) Duty of person after receiving notice of
    dispute.--After receiving a notice of dispute from a
    consumer pursuant to subparagraph (D), the person that
    provided the information in dispute to a consumer
    reporting agency shall--
    ``(i) conduct an investigation with respect to
    the disputed information;
    ``(ii) review all relevant information
    provided by the consumer with the notice;
    ``(iii) complete such person's investigation
    of the dispute and report the results of the
    investigation to the consumer before the
    expiration of the period under section 611(a)(1)
    within which a consumer reporting agency would be
    required to complete its action if the consumer
    had elected to dispute the information under that
    section; and
    ``(iv) if the investigation finds that the
    information reported was inaccurate, promptly
    notify each consumer reporting agency to which the
    person furnished the inaccurate information of
    that determination and provide to the agency any
    correction to that information that is necessary
    to make the information provided by the person
    accurate.
    ``(F) Frivolous or irrelevant dispute.--
    ``(i) In general.--This paragraph shall not
    apply if the person receiving a notice of a
    dispute from a

    [[Page 1992]]
    117 STAT. 1992

    consumer reasonably determines that the dispute is
    frivolous or irrelevant, including--
    ``(I) by reason of the failure of a
    consumer to provide sufficient
    information to investigate the disputed
    information; or
    ``(II) the submission by a consumer
    of a dispute that is substantially the
    same as a dispute previously submitted
    by or for the consumer, either directly
    to the person or through a consumer
    reporting agency under subsection (b),
    with respect to which the person has
    already performed the person's duties
    under this paragraph or subsection (b),
    as applicable.
    ``(ii) Notice [NOTE: Deadline.] of
    determination.--Upon making any determination
    under clause (i) that a dispute is frivolous or
    irrelevant, the person shall notify the consumer
    of such determination not later than 5 business
    days after making such determination, by mail or,
    if authorized by the consumer for that purpose, by
    any other means available to the person.
    ``(iii) Contents of notice.--A notice under
    clause (ii) shall include--
    ``(I) the reasons for the
    determination under clause (i); and
    ``(II) identification of any
    information required to investigate the
    disputed information, which may consist
    of a standardized form describing the
    general nature of such information.
    ``(G) Exclusion of credit repair organizations.--
    This paragraph shall not apply if the notice of the
    dispute is submitted by, is prepared on behalf of the
    consumer by, or is submitted on a form supplied to the
    consumer by, a credit repair organization, as defined in
    section 403(3), or an entity that would be a credit
    repair organization, but for section 403(3)(B)(i).''.

    (d) Furnisher Liability Exception.--Section 623(a)(5) of the Fair
    Credit Reporting Act (15 U.S.C. 1681s-2(a)(5)) is amended--
    (1) by striking ``A person'' and inserting the following:
    ``(A) In general.--A person'';
    (2) by inserting ``date of delinquency on the account, which
    shall be the'' before ``month'';
    (3) by inserting ``on the account'' before ``that
    immediately preceded''; and
    (4) by adding at the end the following:
    ``(B) Rule of construction.--For purposes of this
    paragraph only, and provided that the consumer does not
    dispute the information, a person that furnishes
    information on a delinquent account that is placed for
    collection, charged for profit or loss, or subjected to
    any similar action, complies with this paragraph, if--
    ``(i) the person reports the same date of
    delinquency as that provided by the creditor to
    which the account was owed at the time at which
    the commencement of the delinquency occurred, if
    the creditor previously reported that date of
    delinquency to a consumer reporting agency;

    [[Page 1993]]
    117 STAT. 1993

    ``(ii) the creditor did not previously report
    the date of delinquency to a consumer reporting
    agency, and the person establishes and follows
    reasonable procedures to obtain the date of
    delinquency from the creditor or another reliable
    source and reports that date to a consumer
    reporting agency as the date of delinquency; or
    ``(iii) the creditor did not previously report
    the date of delinquency to a consumer reporting
    agency and the date of delinquency cannot be
    reasonably obtained as provided in clause (ii),
    the person establishes and follows reasonable
    procedures to ensure the date reported as the date
    of delinquency precedes the date on which the
    account is placed for collection, charged to
    profit or loss, or subjected to any similar
    action, and reports such date to the credit
    reporting agency.''.

    (e) Liability and Enforcement.--
    (1) Civil liability.--Section 623 of the Fair Credit
    Reporting Act (15 U.S.C. 1681s-2) is amended by striking
    subsections (c) and (d) and inserting the following:

    ``(c) Limitation on Liability.--Except as provided in section
    621(c)(1)(B), sections 616 and 617 do not apply to any violation of--
    ``(1) subsection (a) of this section, including any
    regulations issued thereunder;
    ``(2) subsection (e) of this section, except that nothing in
    this paragraph shall limit, expand, or otherwise affect
    liability under section 616 or 617, as applicable, for
    violations of subsection (b) of this section; or
    ``(3) subsection (e) of section 615.

    ``(d) Limitation on Enforcement.--The provisions of law described in
    paragraphs (1) through (3) of subsection (c) (other than with respect to
    the exception described in paragraph (2) of subsection (c)) shall be
    enforced exclusively as provided under section 621 by the Federal
    agencies and officials and the State officials identified in section
    621.''.
    (2) State actions.--Section 621(c) of the Fair Credit
    Reporting Act (15 U.S.C. 1681s(c)) is amended--
    (A) in paragraph (1)(B)(ii), by striking ``of
    section 623(a)'' and inserting ``described in any of
    paragraphs (1) through (3) of section 623(c)''; and
    (B) in paragraph (5)--
    (i) in each of subparagraphs (A) and (B), by
    striking ``of section 623(a)(1)'' each place that
    term appears and inserting ``described in any of
    paragraphs (1) through (3) of section 623(c)'';
    and
    (ii) by amending the paragraph heading to read
    as follows:
    ``(5) Limitations on state actions for certain violations.--
    ''.

    (f) Rule of Construction.--Nothing [NOTE: 15 USC 1681n note.] in
    this section, the amendments made by this section, or any other
    provision of this Act shall be construed to affect any liability under
    section 616 or 617 of the Fair Credit Reporting Act (15 U.S.C. 1681n,
    1681o) that existed on the day before the date of enactment of this Act.

    [[Page 1994]]
    117 STAT. 1994

    SEC. 313. FTC AND CONSUMER REPORTING AGENCY ACTION CONCERNING
    COMPLAINTS.

    (a) In General.--Section 611 of the Fair Credit Reporting Act (15
    U.S.C. 1681i) is amended by adding at the end the following:
    ``(e) Treatment of Complaints and Report to Congress.--
    ``(1) In general.--The Commission shall--
    ``(A) [NOTE: Records.] compile all complaints that
    it receives that a file of a consumer that is maintained
    by a consumer reporting agency described in section
    603(p) contains incomplete or inaccurate information,
    with respect to which, the consumer appears to have
    disputed the completeness or accuracy with the consumer
    reporting agency or otherwise utilized the procedures
    provided by subsection (a); and
    ``(B) transmit each such complaint to each consumer
    reporting agency involved.
    ``(2) Exclusion.--Complaints received or obtained by the
    Commission pursuant to its investigative authority under the
    Federal Trade Commission Act shall not be subject to paragraph
    (1).
    ``(3) Agency responsibilities.--Each consumer reporting
    agency described in section 603(p) that receives a complaint
    transmitted by the Commission pursuant to paragraph (1) shall--
    ``(A) review each such complaint to determine
    whether all legal obligations imposed on the consumer
    reporting agency under this title (including any
    obligation imposed by an applicable court or
    administrative order) have been met with respect to the
    subject matter of the complaint;
    ``(B) provide reports on a regular basis to the
    Commission regarding the determinations of and actions
    taken by the consumer reporting agency, if any, in
    connection with its review of such complaints; and
    ``(C) [NOTE: Records.] maintain, for a reasonable
    time period, records regarding the disposition of each
    such complaint that is sufficient to demonstrate
    compliance with this subsection.
    ``(4) Rulemaking authority.--The Commission may prescribe
    regulations, as appropriate to implement this subsection.
    ``(5) Annual report.--The Commission shall submit to the
    Committee on Banking, Housing, and Urban Affairs of the Senate
    and the Committee on Financial Services of the House of
    Representatives an annual report regarding information gathered
    by the Commission under this subsection.''.

    (b) Prompt [NOTE: 15 USC 1681i note.] Investigation of Disputed
    Consumer Information.--
    (1) Study required.--The Board and the Commission shall
    jointly study the extent to which, and the manner in which,
    consumer reporting agencies and furnishers of consumer
    information to consumer reporting agencies are complying with
    the procedures, time lines, and requirements under the Fair
    Credit Reporting Act for the prompt investigation of the
    disputed accuracy of any consumer information, the completeness
    of the information provided to consumer reporting agencies, and
    the prompt correction or deletion, in accordance with such Act,
    of any inaccurate or incomplete information or information that
    cannot be verified.
    (2) Report required.--Before [NOTE: Deadline.] the end of
    the 12-month period beginning on the date of enactment of this
    Act, the

    [[Page 1995]]
    117 STAT. 1995

    Board and the Commission shall jointly submit a progress report
    to the Congress on the results of the study required under
    paragraph (1).
    (3) Considerations.--In preparing the report required under
    paragraph (2), the Board and the Commission shall consider
    information relating to complaints compiled by the Commission
    under section 611(e) of the Fair Credit Reporting Act, as added
    by this section.
    (4) Recommendations.--The report required under paragraph
    (2) shall include such recommendations as the Board and the
    Commission jointly determine to be appropriate for legislative
    or administrative action, to ensure that--
    (A) consumer disputes with consumer reporting
    agencies over the accuracy or completeness of
    information in a consumer's file are promptly and fully
    investigated and any incorrect, incomplete, or
    unverifiable information is corrected or deleted
    immediately thereafter;
    (B) furnishers of information to consumer reporting
    agencies maintain full and prompt compliance with the
    duties and responsibilities established under section
    623 of the Fair Credit Reporting Act; and
    (C) consumer reporting agencies establish and
    maintain appropriate internal controls and management
    review procedures for maintaining full and continuous
    compliance with the procedures, time lines, and
    requirements under the Fair Credit Reporting Act for the
    prompt investigation of the disputed accuracy of any
    consumer information and the prompt correction or
    deletion, in accordance with such Act, of any inaccurate
    or incomplete information or information that cannot be
    verified.

    SEC. 314. IMPROVED DISCLOSURE OF THE RESULTS OF REINVESTIGATION.

    (a) In General.--Section 611(a)(5)(A) of the Fair Credit Reporting
    Act (15 U.S.C. 1681i(a)(5)(A)) is amended by striking ``shall'' and all
    that follows through the end of the subparagraph, and inserting the
    following: ``shall--
    ``(i) promptly delete that item of information
    from the file of the consumer, or modify that item
    of information, as appropriate, based on the
    results of the reinvestigation; and
    ``(ii) [NOTE: Notification.] promptly notify
    the furnisher of that information that the
    information has been modified or deleted from the
    file of the consumer.''.

    (b) Furnisher Requirements Relating to Inaccurate, Incomplete, or
    Unverifiable Information.--Section 623(b)(1) of the Fair Credit
    Reporting Act (15 U.S.C. 1681s-2(b)(1)) is amended--
    (1) in subparagraph (C), by striking ``and'' at the end; and
    (2) in subparagraph (D), by striking the period at the end
    and inserting the following: ``; and
    ``(E) if an item of information disputed by a
    consumer is found to be inaccurate or incomplete or
    cannot be verified after any reinvestigation under
    paragraph (1), for purposes

    [[Page 1996]]
    117 STAT. 1996

    of reporting to a consumer reporting agency only, as
    appropriate, based on the results of the reinvestigation
    promptly--
    ``(i) modify that item of information;
    ``(ii) delete that item of information; or
    ``(iii) permanently block the reporting of
    that item of information.''.

    SEC. 315. RECONCILING ADDRESSES.

    Section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c), as
    amended by this Act, is amended by adding at the end the following:
    ``(h) Notice of Discrepancy in Address.--
    ``(1) In general.--If a person has requested a consumer
    report relating to a consumer from a consumer reporting agency
    described in section 603(p), the request includes an address for
    the consumer that substantially differs from the addresses in
    the file of the consumer, and the agency provides a consumer
    report in response to the request, the consumer reporting agency
    shall notify the requester of the existence of the discrepancy.
    ``(2) Regulations.--
    ``(A) Regulations required.--The Federal banking
    agencies, the National Credit Union Administration, and
    the Commission shall jointly, with respect to the
    entities that are subject to their respective
    enforcement authority under section 621, 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. 316. NOTICE OF DISPUTE THROUGH RESELLER.

    (a) Requirement for Reinvestigation of Disputed Information Upon
    Notice From a Reseller.--Section 611(a) of the Fair Credit Reporting Act
    (15 U.S.C. 1681i(a)(1)(A)) is amended--
    (1) in paragraph (1)(A)--
    (A) by striking ``If the completeness'' and
    inserting ``Subject to subsection (f), if the
    completeness'';
    (B) by inserting ``, or indirectly through a
    reseller,'' after ``notifies the agency directly''; and

    [[Page 1997]]
    117 STAT. 1997

    (C) by inserting ``or reseller'' before the period
    at the end;
    (2) in paragraph (2)(A)--
    (A) by inserting ``or a reseller'' after ``dispute
    from any consumer''; and
    (B) by inserting ``or reseller'' before the period
    at the end; and
    (3) in paragraph (2)(B), by inserting ``or the reseller''
    after ``from the consumer''.

    (b) Reinvestigation Requirement Applicable to Resellers.--Section
    611 of the Fair Credit Reporting Act (15 U.S.C. 1681i), as amended by
    this Act, is amended by adding at the end the following:
    ``(f) Reinvestigation Requirement Applicable to Resellers.--
    ``(1) Exemption from general reinvestigation requirement.--
    Except as provided in paragraph (2), a reseller shall be exempt
    from the requirements of this section.
    ``(2) Action [NOTE: Deadline.] required upon receiving
    notice of a dispute.--If a reseller receives a notice from a
    consumer of a dispute concerning the completeness or accuracy of
    any item of information contained in a consumer report on such
    consumer produced by the reseller, the reseller shall, within 5
    business days of receiving the notice, and free of charge--
    ``(A) determine whether the item of information is
    incomplete or inaccurate as a result of an act or
    omission of the reseller; and
    ``(B) if--
    ``(i) [NOTE: Deadline.] the reseller
    determines that the item of information is
    incomplete or inaccurate as a result of an act or
    omission of the reseller, not later than 20 days
    after receiving the notice, correct the
    information in the consumer report or delete it;
    or
    ``(ii) if the reseller determines that the
    item of information is not incomplete or
    inaccurate as a result of an act or omission of
    the reseller, convey the notice of the dispute,
    together with all relevant information provided by
    the consumer, to each consumer reporting agency
    that provided the reseller with the information
    that is the subject of the dispute, using an
    address or a notification mechanism specified by
    the consumer reporting agency for such notices.
    ``(3) Responsibility of consumer reporting agency to notify
    consumer through reseller.--Upon the completion of a
    reinvestigation under this section of a dispute concerning the
    completeness or accuracy of any information in the file of a
    consumer by a consumer reporting agency that received notice of
    the dispute from a reseller under paragraph (2)--
    ``(A) the notice by the consumer reporting agency
    under paragraph (6), (7), or (8) of subsection (a) shall
    be provided to the reseller in lieu of the consumer; and
    ``(B) the reseller shall immediately reconvey such
    notice to the consumer, including any notice of a
    deletion by telephone in the manner required under
    paragraph (8)(A).
    ``(4) Reseller reinvestigations.--No provision of this
    subsection shall be construed as prohibiting a reseller from
    conducting a reinvestigation of a consumer dispute directly.''.

    [[Page 1998]]
    117 STAT. 1998

    (c) Technical and Conforming Amendment.--Section 611(a)(2)(B) of the
    Fair Credit Reporting Act (15 U.S.C. 1681i(a)(2)(B)) is amended in the
    subparagraph heading, by striking ``from consumer''.

    SEC. 317. REASONABLE REINVESTIGATION REQUIRED.

    Section 611(a)(1)(A) of the Fair Credit Reporting Act (15 U.S.C.
    1681i(a)(1)(A)) is amended by striking ``shall reinvestigate free of
    charge'' and inserting ``shall, free of charge, conduct a reasonable
    reinvestigation to determine whether the disputed information is
    inaccurate''.

    SEC. 318. [NOTE: 15 USC 1681 note.] FTC STUDY OF ISSUES RELATING TO
    THE FAIR CREDIT REPORTING ACT.

    (a) Study Required.--
    (1) In general.--The Commission shall conduct a study on
    ways to improve the operation of the Fair Credit Reporting Act.
    (2) Areas for study.--In conducting the study under
    paragraph (1), the Commission shall review--
    (A) the efficacy of increasing the number of points
    of identifying information that a credit reporting
    agency is required to match to ensure that a consumer is
    the correct individual to whom a consumer report relates
    before releasing a consumer report to a user,
    including--
    (i) the extent to which requiring additional
    points of such identifying information to match
    would--
    (I) enhance the accuracy of credit
    reports; and
    (II) combat the provision of
    incorrect consumer reports to users;
    (ii) the extent to which requiring an exact
    match of the first and last name, social security
    number, and address and ZIP Code of the consumer
    would enhance the likelihood of increasing credit
    report accuracy; and
    (iii) the effects of allowing consumer
    reporting agencies to use partial matches of
    social security numbers and name recognition
    software on the accuracy of credit reports;
    (B) requiring notification to consumers when
    negative information has been added to their credit
    reports, including--
    (i) the potential impact of such notification
    on the ability of consumers to identify errors on
    their credit reports; and
    (ii) the potential impact of such notification
    on the ability of consumers to remove fraudulent
    information from their credit reports;
    (C) the effects of requiring that a consumer who has
    experienced an adverse action based on a credit report
    receives a copy of the same credit report that the
    creditor relied on in taking the adverse action,
    including--
    (i) the extent to which providing such reports
    to consumers would increase the ability of
    consumers to identify errors in their credit
    reports; and
    (ii) the extent to which providing such
    reports to consumers would increase the ability of
    consumers

    [[Page 1999]]
    117 STAT. 1999

    to remove fraudulent information from their credit
    reports;
    (D) any common financial transactions that are not
    generally reported to the consumer reporting agencies,
    but would provide useful information in determining the
    credit worthiness of consumers; and
    (E) any actions that might be taken within a
    voluntary reporting system to encourage the reporting of
    the types of transactions described in subparagraph (D).
    (3) Costs and benefits.--With respect to each area of study
    described in paragraph (2), the Commission shall consider the
    extent to which such requirements would benefit consumers,
    balanced against the cost of implementing such provisions.

    (b) Report Required.--Not [NOTE: Deadline.] later than 1 year
    after the date of enactment of this Act, the chairman of the Commission
    shall submit a report to the Committee on Banking, Housing, and Urban
    Affairs of the Senate and the Committee on Financial Services of the
    House of Representatives containing a detailed summary of the findings
    and conclusions of the study under this section, together with such
    recommendations for legislative or administrative actions as may be
    appropriate.

    SEC. 319. [NOTE: 15 USC 1681 note.] FTC STUDY OF THE ACCURACY OF
    CONSUMER REPORTS.

    (a) Study Required.--Until the final report is submitted under
    subsection (b)(2), the Commission shall conduct an ongoing study of the
    accuracy and completeness of information contained in consumer reports
    prepared or maintained by consumer reporting agencies and methods for
    improving the accuracy and completeness of such information.
    (b) Biennial Reports Required.--
    (1) Interim reports.--The Commission shall submit an interim
    report to the Congress on the study conducted under subsection
    (a) at the end of the 1-year period beginning on the date of
    enactment of this Act and biennially thereafter for 8 years.
    (2) Final report.--The Commission shall submit a final
    report to the Congress on the study conducted under subsection
    (a) at the end of the 2-year period beginning on the date on
    which the final interim report is submitted to the Congress
    under paragraph (1).
    (3) Contents.--Each report submitted under this subsection
    shall contain a detailed summary of the findings and conclusions
    of the Commission with respect to the study required under
    subsection (a) and such recommendations for legislative and
    administrative action as the Commission may determine to be
    appropriate.

    TITLE IV--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE
    FINANCIAL SYSTEM

    SEC. 411. PROTECTION OF MEDICAL INFORMATION IN THE FINANCIAL SYSTEM.

    (a) In General.--Section 604(g) of the Fair Credit Reporting Act (15
    U.S.C. 1681b(g)) is amended to read as follows:

    [[Page 2000]]
    117 STAT. 2000

    ``(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 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, 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
    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 and subject to
    paragraph (6), by the Commission, any Federal banking
    agency or the National Credit Union Administration (with
    respect to any financial institution subject to the
    jurisdiction of such agency or Administration under
    paragraph (1), (2), or (3) of section 621(b), or the
    applicable State insurance

    [[Page 2001]]
    117 STAT. 2001

    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.--Each Federal banking
    agency and the National Credit Union Administration
    shall, subject to paragraph (6) and 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.
    ``(B) Final [NOTE: Deadline.] regulations
    required.--The Federal banking agencies and the National
    Credit Union Administration shall issue the regulations
    required under subparagraph (A) in final form before the
    end of the 6-month period beginning on the date of
    enactment of the Fair and Accurate Credit Transactions
    Act of 2003.
    ``(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.''.

    (b) Restriction on Sharing of Medical Information.--Section 603(d)
    of the Fair Credit Reporting Act (15 U.S.C. 1681a(d)) is amended--
    (1) in paragraph (2), by striking ``The term'' and inserting
    ``Except as provided in paragraph (3), the term''; and
    (2) by adding at the end the following new paragraph:
    ``(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.''.

    (c) Definition.--Section 603(i) of the Fair Credit Reporting Act (15
    U.S.C. 1681a(i)) is amended to read as follows:
    ``(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;

    [[Page 2002]]
    117 STAT. 2002

    ``(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.''.

    (d) Effective Dates.--This [NOTE: 15 USC 1681a note.] section
    shall take effect at the end of the 180-day period beginning on the date
    of enactment of this Act, except that paragraph (2) of section 604(g) of
    the Fair Credit Reporting Act (as amended by subsection (a) of this
    section) shall take effect on the later of--
    (1) the end of the 90-day period beginning on the date on
    which the regulations required under paragraph (5)(B) of such
    section 604(g) are issued in final form; or
    (2) the date specified in the regulations referred to in
    paragraph (1).

    SEC. 412. CONFIDENTIALITY OF MEDICAL CONTACT INFORMATION IN CONSUMER
    REPORTS.

    (a) Duties of Medical Information Furnishers.--Section 623(a) of the
    Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)), as amended by this
    Act, is amended by adding at the end the following:
    ``(9) Duty to provide notice of status as medical
    information furnisher.--A person whose primary business is
    providing medical services, products, or devices, or the
    person's agent or assignee, who furnishes information to a
    consumer reporting agency on a consumer shall be considered a
    medical information furnisher for purposes of this title, and
    shall notify the agency of such status.''.

    (b) Restriction of Dissemination of Medical Contact Information.--
    Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)) is
    amended by adding at the end the following:
    ``(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.''.

    (c) No Exceptions Allowed for Dollar Amounts.--Section 605(b) of the
    Fair Credit Reporting Act (15 U.S.C. 1681c(b)) is amended by striking
    ``The provisions of subsection (a)'' and inserting ``The provisions of
    paragraphs (1) through (5) of subsection (a)''.
    (d) Coordination [NOTE: 15 USC 1681b note.] With Other Laws.--No
    provision of any amendment made by this section shall be construed as
    altering, affecting, or superseding the applicability of any other
    provision of Federal law relating to medical confidentiality.

    [[Page 2003]]
    117 STAT. 2003

    (e) FTC Regulation of Coding of Trade Names.--Section 621 of the
    Fair Credit Reporting Act (15 U.S.C. 1681s), as amended by this Act, is
    amended by adding at the end the following:
    ``(g) FTC Regulation of Coding of Trade Names.--If the Commission
    determines that a person described in paragraph (9) of section 623(a)
    has not met the requirements of such paragraph, the Commission 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.''.
    (f) Technical and Conforming Amendments.--Section 604(g) of the Fair
    Credit Reporting Act (15 U.S.C. 1681b(g)), as amended by section 411 of
    this Act, is amended--
    (1) in paragraph (1), by inserting ``(other than medical
    contact information treated in the manner required under section
    605(a)(6))'' after ``a consumer report that contains medical
    information''; and
    (2) in paragraph (2), by inserting ``(other than medical
    information treated in the manner required under section
    605(a)(6))'' after ``a creditor shall not obtain or use medical
    information''.

    (g) Effective Date.--The amendments made by this section shall take
    effect at the end of the 15-month period beginning on the date of
    enactment of this Act.

    TITLE V--FINANCIAL [NOTE: Financial Literacy and Education Improvement
    Act.] LITERACY AND EDUCATION IMPROVEMENT

    SEC. 511. [NOTE: 20 USC 9701 note.] SHORT TITLE.

    This title may be cited as the ``Financial Literacy and Education
    Improvement Act''.

    SEC. 512. [NOTE: 20 USC 9701.] DEFINITIONS.

    As used in this title--
    (1) the term ``Chairperson'' means the Chairperson of the
    Financial Literacy and Education Commission; and
    (2) the term ``Commission'' means the Financial Literacy and
    Education Commission established under section 513.

    SEC. 513. [NOTE: 20 USC 9702.] ESTABLISHMENT OF FINANCIAL LITERACY AND
    EDUCATION COMMISSION.

    (a) In General.--There is established a commission to be known as
    the ``Financial Literacy and Education Commission''.
    (b) Purpose.--The Commission shall serve to improve the financial
    literacy and education of persons in the United States through
    development of a national strategy to promote financial literacy and
    education.
    (c) Membership.--
    (1) Composition.--The Commission shall be composed of--
    (A) the Secretary of the Treasury;
    (B) the respective head of each of the Federal
    banking agencies (as defined in section 3 of the Federal
    Deposit Insurance Act), the National Credit Union
    Administration, the Securities and Exchange Commission,
    each of the Departments of Education, Agriculture,
    Defense, Health and Human Services, Housing and Urban
    Development,

    [[Page 2004]]
    117 STAT. 2004

    Labor, and Veterans Affairs, the Federal Trade
    Commission, the General Services Administration, the
    Small Business Administration, the Social Security
    Administration, the Commodity Futures Trading
    Commission, and the Office of Personnel Management; and
    (C) [NOTE: President.] at the discretion of the
    President, not more than 5 individuals appointed by the
    President from among the administrative heads of any
    other Federal agencies, departments, or other Federal
    Government entities, whom the President determines to be
    engaged in a serious effort to improve financial
    literacy and education.
    (2) Alternates.--Each member of the Commission may designate
    an alternate if the member is unable to attend a meeting of the
    Commission. Such alternate shall be an individual who exercises
    significant decisionmaking authority.

    (d) Chairperson.--The Secretary of the Treasury shall serve as the
    Chairperson.
    (e) Meetings.--The Commission shall hold, at the call of the
    Chairperson, at least 1 meeting every 4 months. All such meetings shall
    be open to the public. The Commission may hold, at the call of the
    Chairperson, such other meetings as the Chairperson sees fit to carry
    out this title.
    (f) Quorum.--A majority of the members of the Commission shall
    constitute a quorum, but a lesser number of members may hold hearings.
    (g) Initial Meeting.--The [NOTE: Deadline.] Commission shall hold
    its first meeting not later than 60 days after the date of enactment of
    this Act.

    SEC. 514. [NOTE: 20 USC 9703.] DUTIES OF THE COMMISSION.

    (a) Duties.--
    (1) In general.--The Commission, through the authority of
    the members referred to in section 513(c), shall take such
    actions as it deems necessary to streamline, improve, or augment
    the financial literacy and education programs, grants, and
    materials of the Federal Government, including curricula for all
    Americans.
    (2) Areas of emphasis.--To improve financial literacy and
    education, the Commission shall emphasize, among other elements,
    basic personal income and household money management and
    planning skills, including how to--
    (A) create household budgets, initiate savings
    plans, and make strategic investment decisions for
    education, retirement, home ownership, wealth building,
    or other savings goals;
    (B) manage spending, credit, and debt, including
    credit card debt, effectively;
    (C) increase awareness of the availability and
    significance of credit reports and credit scores in
    obtaining credit, the importance of their accuracy (and
    how to correct inaccuracies), their effect on credit
    terms, and the effect common financial decisions may
    have on credit scores;
    (D) ascertain fair and favorable credit terms;
    (E) avoid abusive, predatory, or deceptive credit
    offers and financial products;
    (F) understand, evaluate, and compare financial
    products, services, and opportunities;

    [[Page 2005]]
    117 STAT. 2005

    (G) understand resources that ought to be easily
    accessible and affordable, and that inform and educate
    investors as to their rights and avenues of recourse
    when an investor believes his or her rights have been
    violated by unprofessional conduct of market
    intermediaries;
    (H) increase awareness of the particular financial
    needs and financial transactions (such as the sending of
    remittances) of consumers who are targeted in
    multilingual financial literacy and education programs
    and improve the development and distribution of
    multilingual financial literacy and education materials;
    (I) promote bringing individuals who lack basic
    banking services into the financial mainstream by
    opening and maintaining an account with a financial
    institution; and
    (J) improve financial literacy and education through
    all other related skills, including personal finance and
    related economic education, with the primary goal of
    programs not simply to improve knowledge, but rather to
    improve consumers' financial choices and outcomes.

    (b) Website.--
    (1) In general.--The Commission shall establish and maintain
    a website, such as the domain name ``FinancialLiteracy.gov'', or
    a similar domain name.
    (2) Purposes.--The website established under paragraph (1)
    shall--
    (A) serve as a clearinghouse of information about
    Federal financial literacy and education programs;
    (B) provide a coordinated entry point for accessing
    information about all Federal publications, grants, and
    materials promoting enhanced financial literacy and
    education;
    (C) offer information on all Federal grants to
    promote financial literacy and education, and on how to
    target, apply for, and receive a grant that is most
    appropriate under the circumstances;
    (D) as the Commission considers appropriate, feature
    website links to efforts that have no commercial content
    and that feature information about financial literacy
    and education programs, materials, or campaigns; and
    (E) offer such other information as the Commission
    finds appropriate to share with the public in the
    fulfillment of its purpose.

    (c) Toll-Free Hotline.--The Commission shall establish a toll-free
    telephone number that shall be made available to members of the public
    seeking information about issues pertaining to financial literacy and
    education.
    (d) Development and Dissemination of Materials.--The Commission
    shall--
    (1) develop materials to promote financial literacy and
    education; and
    (2) disseminate such materials to the general public.

    (e) Coordination of Efforts.--The Commission shall take such steps
    as are necessary to coordinate and promote financial literacy and
    education efforts at the State and local level, including promoting
    partnerships among Federal, State, and local governments, nonprofit
    organizations, and private enterprises.

    [[Page 2006]]
    117 STAT. 2006

    (f) National Strategy.--
    (1) In general.--The Commission shall--
    (A) [NOTE: Deadline.] not later than 18 months
    after the date of enactment of this Act, develop a
    national strategy to promote basic financial literacy
    and education among all American consumers; and
    (B) coordinate Federal efforts to implement the
    strategy developed under subparagraph (A).
    (2) Strategy.--The strategy to promote basic financial
    literacy and education required to be developed under paragraph
    (1) shall provide for--
    (A) participation by State and local governments and
    private, nonprofit, and public institutions in the
    creation and implementation of such strategy;
    (B) the development of methods--
    (i) to increase the general financial
    education level of current and future consumers of
    financial services and products; and
    (ii) to enhance the general understanding of
    financial services and products;
    (C) review of Federal activities designed to promote
    financial literacy and education, and development of a
    plan to improve coordination of such activities; and
    (D) the identification of areas of overlap and
    duplication among Federal financial literacy and
    education activities and proposed means of eliminating
    any such overlap and duplication.
    (3) National strategy review.--The Commission shall, not
    less than annually, review the national strategy developed under
    this subsection and make such changes and recommendations as it
    deems necessary.

    (g) Consultation.--The Commission shall actively consult with a
    variety of representatives from private and nonprofit organizations and
    State and local agencies, as determined appropriate by the Commission.
    (h) Reports.--
    (1) In general.--Not [NOTE: Deadline.] later than 18
    months after the date of the first meeting of the Commission,
    and annually thereafter, the Commission shall issue a report,
    the Strategy for Assuring Financial Empowerment (``SAFE
    Strategy''), to the Committee on Banking, Housing, and Urban
    Affairs of the Senate and the Committee on Financial Services of
    the House of Representatives on the progress of the Commission
    in carrying out this title.
    (2) Contents.--The report required under paragraph (1) shall
    include--
    (A) the national strategy for financial literacy and
    education, as described under subsection (f);
    (B) information concerning the implementation of the
    duties of the Commission under subsections (a) through
    (g);
    (C) an assessment of the success of the Commission
    in implementing the national strategy developed under
    subsection (f);
    (D) an assessment of the availability, utilization,
    and impact of Federal financial literacy and education
    materials;

    [[Page 2007]]
    117 STAT. 2007

    (E) information concerning the content and public
    use of--
    (i) the website established under subsection
    (b); and
    (ii) the toll-free telephone number
    established under subsection (c);
    (F) a brief survey of the financial literacy and
    education materials developed under subsection (d), and
    data regarding the dissemination and impact of such
    materials, as measured by improved financial
    decisionmaking;
    (G) a brief summary of any hearings conducted by the
    Commission, including a list of witnesses who testified
    at such hearings;
    (H) information about the activities of the
    Commission planned for the next fiscal year;
    (I) a summary of all Federal financial literacy and
    education activities targeted to communities that have
    historically lacked access to financial literacy
    materials and education, and have been underserved by
    the mainstream financial systems; and
    (J) such other materials relating to the duties of
    the Commission as the Commission deems appropriate.
    (3) Initial report.--The initial report under paragraph (1)
    shall include information regarding all Federal programs,
    materials, and grants which seek to improve financial literacy,
    and assess the effectiveness of such programs.

    (i) Testimony.--The Commission shall annually provide testimony by
    the Chairperson to the Committee on Banking, Housing, and Urban Affairs
    of the Senate and the Committee on Financial Services of the House of
    Representatives.

    SEC. 515. [NOTE: 20 USC 9704.] POWERS OF THE COMMISSION.

    (a) Hearings.--
    (1) In general.--The Commission shall hold such hearings,
    sit and act at such times and places, take such testimony, and
    receive such evidence as the Commission deems appropriate to
    carry out this title.
    (2) Participation.--In hearings held under this subsection,
    the Commission shall consider inviting witnesses from, among
    other groups--
    (A) other Federal Government officials;
    (B) State and local government officials;
    (C) consumer and community groups;
    (D) nonprofit financial literacy and education
    groups (such as those involved in personal finance and
    economic education); and
    (E) the financial services industry.

    (b) Information From Federal Agencies.--The Commission may secure
    directly from any Federal department or agency such information as the
    Commission considers necessary to carry out this title. Upon request of
    the Chairperson, the head of such department or agency shall furnish
    such information to the Commission.
    (c) Periodic Studies.--The Commission may conduct periodic studies
    regarding the state of financial literacy and education in the United
    States, as the Commission determines appropriate.
    (d) Multilingual.--The Commission may take any action to develop and
    promote financial literacy and education materials

    [[Page 2008]]
    117 STAT. 2008

    in languages other than English, as the Commission deems appropriate,
    including for the website established under section 514(b), at the toll-
    free number established under section 514(c), and in the materials
    developed and disseminated under section 514(d).

    SEC. 516. [NOTE: 20 USC 9705.] COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--Each member of the Commission shall
    serve without compensation in addition to that received for their
    service as an officer or employee of the United States.
    (b) Travel Expenses.--The members of the Commission shall be allowed
    travel expenses, including per diem in lieu of subsistence, at rates
    authorized for employees of agencies under subchapter I of chapter 57 of
    title 5, United States Code, while away from their homes or regular
    places of business in the performance of services for the Commission.
    (c) Assistance.--
    (1) In general.--The Director of the Office of Financial
    Education of the Department of the Treasury shall provide
    assistance to the Commission, upon request of the Commission,
    without reimbursement.
    (2) Detail of government employees.--Any Federal Government
    employee may be detailed to the Commission without
    reimbursement, and such detail shall be without interruption or
    loss of civil service status or privilege.

    SEC. 517. [NOTE: 20 USC 9706.] STUDIES BY THE COMPTROLLER GENERAL.

    (a) Effectiveness Study.--Not [NOTE: Deadline. Reports.] later
    than 3 years after the date of enactment of this Act, the Comptroller
    General of the United States shall submit a report to Congress assessing
    the effectiveness of the Commission in promoting financial literacy and
    education.

    (b) Study and Report on the Need and Means for Improving Financial
    Literacy Among Consumers.--
    (1) Study required.--The Comptroller General of the United
    States shall conduct a study to assess the extent of consumers'
    knowledge and awareness of credit reports, credit scores, and
    the dispute resolution process, and on methods for improving
    financial literacy among consumers.
    (2) Factors to be included.--The study required under
    paragraph (1) shall include the following issues:
    (A) The number of consumers who view their credit
    reports.
    (B) Under what conditions and for what purposes do
    consumers primarily obtain a copy of their consumer
    report (such as for the purpose of ensuring the
    completeness and accuracy of the contents, to protect
    against fraud, in response to an adverse action based on
    the report, or in response to suspected identity theft)
    and approximately what percentage of the total number of
    consumers who obtain a copy of their consumer report do
    so for each such primary purpose.
    (C) The extent of consumers' knowledge of the data
    collection process.
    (D) The extent to which consumers know how to get a
    copy of a consumer report.
    (E) The extent to which consumers know and
    understand the factors that positively or negatively
    impact credit scores.

    [[Page 2009]]
    117 STAT. 2009

    (3) Report required.--Before [NOTE: Deadline.] the end of
    the 12-month period beginning on the date of enactment of this
    Act, the Comptroller General shall submit a report to Congress
    on the findings and conclusions of the Comptroller General
    pursuant to the study conducted under this subsection, together
    with such recommendations for legislative or administrative
    action as the Comptroller General may determine to be
    appropriate, including recommendations on methods for improving
    financial literacy among consumers.

    SEC. 518. [NOTE: 20 USC 9707.] THE NATIONAL PUBLIC SERVICE MULTIMEDIA
    CAMPAIGN TO ENHANCE THE STATE OF FINANCIAL LITERACY.

    (a) In General.--The Secretary of the Treasury (in this section
    referred to as the ``Secretary''), after review of the recommendations
    of the Commission, as part of the national strategy, shall develop,
    implement, and conduct a pilot national public service multimedia
    campaign to enhance the state of financial literacy and education in the
    United States.
    (b) Program Requirements.--
    (1) Public service campaign.--The Secretary, after review of
    the recommendations of the Commission, shall select and work
    with a nonprofit organization or organizations that are
    especially well-qualified in the distribution of public service
    campaigns, and have secured private sector funds to produce the
    pilot national public service multimedia campaign.
    (2) Development of multimedia campaign.--The Secretary,
    after review of the recommendations of the Commission, shall
    develop, in consultation with nonprofit, public, or private
    organizations, especially those that are well qualified by
    virtue of their experience in the field of financial literacy
    and education, to develop the financial literacy national public
    service multimedia campaign.
    (3) Focus of campaign.--The pilot national public service
    multimedia campaign shall be consistent with the national
    strategy, and shall promote the toll-free telephone number and
    the website developed under this title.

    (c) Multilingual.--The Secretary may develop the multimedia campaign
    in languages other than English, as the Secretary deems appropriate.
    (d) Performance Measures.--The Secretary shall develop measures to
    evaluate the effectiveness of the pilot national public service
    multimedia campaign, as measured by improved financial decision making
    among individuals.
    (e) Report.--For each fiscal year for which there are appropriations
    pursuant to the authorization in subsection (e), the Secretary shall
    submit a report to the Committee on Banking, Housing, and Urban Affairs
    and the Committee on Appropriations of the Senate and the Committee on
    Financial Services and the Committee on Appropriations of the House of
    Representatives, describing the status and implementation of the
    provisions of this section and the state of financial literacy and
    education in the United States.
    (f) Authorization of Appropriations.--There are authorized to be
    appropriated to the Secretary, not to exceed $3,000,000 for fiscal years
    2004, 2005, and 2006, for the development, production, and distribution
    of a pilot national public service multimedia campaign under this
    section.

    [[Page 2010]]
    117 STAT. 2010

    SEC. 519. [NOTE: 20 USC 9708.] AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission such sums
    as may be necessary to carry out this title, including administrative
    expenses of the Commission.

    TITLE VI--PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS

    SEC. 611. CERTAIN EMPLOYEE INVESTIGATION COMMUNICATIONS EXCLUDED FROM
    DEFINITION OF CONSUMER REPORT.

    (a) In General.--Section 603 of the Fair Credit Reporting Act (15
    U.S.C. 1681a), as amended by this Act is amended by adding at the end
    the following:
    ``(x) 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

    [[Page 2011]]
    117 STAT. 2011

    Trading Commission, and any futures association registered with
    such Commission.''.

    (b) Technical and Conforming Amendment.--Section 603(d)(2)(D) of the
    Fair Credit Reporting Act (15 U.S.C. 1681a(d)(2)(D)) is amended by
    inserting ``or (x)'' after ``subsection (o)''.

    TITLE VII--RELATION TO STATE LAWS

    SEC. 711. RELATION TO STATE LAWS.

    Section 625 of the Fair Credit Reporting Act (15 U.S.C. 1681t), as
    so designated by section 214 of this Act, is amended--
    (1) in subsection (a), by inserting ``or for the prevention
    or mitigation of identity theft,'' after ``information on
    consumers,'';
    (2) in subsection (b), by adding at the end the following:
    ``(5) with respect to the conduct required by the specific
    provisions of--
    ``(A) section 605(g);
    ``(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.''; and
    (3) in subsection (d)--
    (A) by striking paragraph (2);
    (B) by striking ``(c)--'' and all that follows
    through ``do not affect'' and inserting ``(c) do not
    affect''; and
    (C) by striking ``1996; and'' and inserting
    ``1996.''.

    TITLE VIII--MISCELLANEOUS

    SEC. 811. CLERICAL AMENDMENTS.

    (a) Short Title.--Section 601 of the Fair Credit Reporting Act (15
    U.S.C. 1601 note) is amended by striking ``the Fair Credit Reporting
    Act.'' and inserting ``the `Fair Credit Reporting Act'.''.
    (b) Section 604.--Section 604(a) of the Fair Credit Reporting Act
    (15 U.S.C. 1681b(a)) is amended in paragraphs (1) through (5), other
    than subparagraphs (E) and (F) of paragraph (3), by moving each margin 2
    ems to the right.
    (c) Section 605.--
    (1) Section 605(a)(1) of the Fair Credit Reporting Act (15
    U.S.C. 1681c(a)(1)) is amended by striking ``(1) cases'' and
    inserting ``(1) Cases''.
    (2)(A) [NOTE: 15 USC 1681c.] Section 5(1) of Public Law
    105-347 (112 Stat. 3211) is amended by striking ``Judgments
    which'' and inserting ``judgments which''.
    (B) [NOTE: 15 USC 1681c note.] The amendment made by
    subparagraph (A) shall be deemed to have the same effective date
    as section 5(1) of Public Law 105-347 (112 Stat. 3211).

    (d) Section 609.--Section 609(a) of the Fair Credit Reporting Act
    (15 U.S.C. 1681g(a)) is amended--

    [[Page 2012]]
    117 STAT. 2012

    (1) in paragraph (2), by moving the margin 2 ems to the
    right; and
    (2) in paragraph (3)(C), by moving the margins 2 ems to the
    left.

    (e) Section 617.--Section 617(a)(1) of the Fair Credit Reporting Act
    (15 U.S.C. 1681o(a)(1)) is amended by adding ``and'' at the end.
    (f) Section 621.--Section 621(b)(1)(B) of the Fair Credit Reporting
    Act (15 U.S.C. 1681s(b)(1)(B)) is amended by striking ``25(a)'' and
    inserting ``25A''.
    (g) Title 31.--Section 5318 of title 31, United States Code, is
    amended by redesignating the second item designated as subsection (l)
    (relating to applicability of rules) as subsection (m).
    (h) Conforming Amendment.--Section 2411(c) of Public Law 104-208
    (110 Stat. 3009-445) [NOTE: 15 USC 1681m.] is repealed.

    Approved December 4, 2003.

    LEGISLATIVE HISTORY--H.R. 2622 (S. 1753):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: Nos. 108-263 and Pt.2 (Comm. on Financial Services) and
    108-396 (Comm. of Conference).
    SENATE REPORTS: No. 108-166 accompanying S. 1753 (Comm. on Banking,
    Housing, and Urban Affairs).
    CONGRESSIONAL RECORD, Vol. 149 (2003):
    Sept. 10, considered and passed House.
    Nov. 5, considered and passed Senate, amended, in lieu of S.
    1753.
    Nov. 21, House agreed to conference report.
    Nov. 22, Senate agreed to conference report.
    WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
    Dec. 4, Presidential remarks.