[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):
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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.