[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2622 Enrolled Bill (ENR)]
H.R.2622
One Hundred Eighth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, two thousand and three
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

f6c744d7e45af14a768d28ac239daa307c7c5e5460ec2697a039c9600666c954

(a) Short Title.--This 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:

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fc6c94b78cfeff77ee4213f116614b82966389a42aa63d4c4a567e807cbb1c3f

TITLE I

-IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION

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

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74dd80b6318e22b40edb1119d250245202db9c932dd16e8eda8e5c6921119918

TITLE II

-IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT

scores on availability and affordability of financial
products.

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e056863d4dcf2103982d4d5f0235970f6d91f3d30817efe54430d92b31b2ae01

information furnished to consumer reporting agencies.

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TITLE III

-ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION

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1c20be3ab2331df69da9440e1b55e2b198ca70ea9f0ebd6891d3ca8a52de2009

TITLE IV

-LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE

49a740b1623dd988996db0f4abf37d7e65f49736f2e7f3220ae3f1d51ad0f307

TITLE V

-FINANCIAL LITERACY AND EDUCATION IMPROVEMENT

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TITLE VI

-PROTECTING EMPLOYEE MISCONDUCT INVESTIGATIONS

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.

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TITLE VIII

-MISCELLANEOUS

Except as otherwise specifically provided in this Act and the
amendments made by this Act--
(1) 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.
Subtitle A--Identity Theft Prevention

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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
``(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.''.

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(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. 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 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) 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 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) 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).
``(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--
``(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 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.

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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 subsection shall apply only to receipts
that are electronically printed, and shall not apply to
transactions in which the sole means of recording a credit card or
debit card account number is by handwriting or by an imprint or
copy of the card.
``(3) Effective date.--This subsection shall become effective--
``(A) 3 years after the date of enactment of this
subsection, with respect to any cash register or other machine
or device that electronically prints receipts for credit card
or debit card transactions that is in use before January 1,
2005; and
``(B) 1 year after the date of enactment of this
subsection, with respect to any cash register or other machine
or device that electronically prints receipts for credit card
or debit card transactions that is first put into use on or
after January 1, 2005.''.

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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 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.''.

732ade7504313b1e274ae64f572760af6ebb1517e1963bbd00faea800a9c999c

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

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(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 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 the purpose of documenting fraudulent
transactions resulting from identity theft, not later than 30 days
after the date of receipt of a request from a victim in accordance
with paragraph (3), and subject to verification of the identity of
the victim and the claim of identity theft in accordance with
paragraph (2), a business entity that has provided credit to,
provided for consideration products, goods, or services to,
accepted payment from, or otherwise entered into a commercial
transaction for consideration with, a person who has allegedly made
unauthorized use of the means of identification of the victim,
shall provide a copy of application and business transaction
records in the control of the business entity, whether maintained
by the business entity or by another person on behalf of the
business entity, evidencing any transaction alleged to be a result
of identity theft to--
``(A) the victim;
``(B) any Federal, State, or local government law
enforcement agency or officer specified by the victim in such a
request; or
``(C) any law enforcement agency investigating the identity
theft and authorized by the victim to take receipt of records
provided under this subsection.
``(2) Verification of identity and claim.--Before a business
entity provides any information under paragraph (1), unless the
business entity, at its discretion, otherwise has a high degree of
confidence that it knows the identity of the victim making a
request under paragraph (1), the victim shall provide to the
business entity--
``(A) as proof of positive identification of the victim, at
the election of the business entity--
``(i) the presentation of a government-issued
identification card;
``(ii) personally identifying information of the same
type as was provided to the business entity by the
unauthorized person; or
``(iii) personally identifying information that the
business entity typically requests from new applicants or
for new transactions, at the time of the victim's request
for information, including any documentation described in
clauses (i) and (ii); and
``(B) as proof of a claim of identity theft, at the
election of the business entity--
``(i) a copy of a police report evidencing the claim of
the victim of identity theft; and
``(ii) a properly completed--
``(I) copy of a standardized affidavit of identity
theft developed and made available by the 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--
``(i) if known by the victim (or if readily obtainable
by the victim), the date of the application or transaction;
and
``(ii) if known by the victim (or if readily obtainable
by the victim), any other identifying information such as
an account or transaction number.
``(4) No charge to victim.--Information required to be provided
under paragraph (1) shall be so provided without charge.
``(5) Authority to decline to provide information.--A business
entity may decline to provide information under paragraph (1) if,
in the exercise of good faith, the business entity determines
that--
``(A) this subsection does not require disclosure of the
information;
``(B) after reviewing the information provided pursuant to
paragraph (2), the business entity does not have a high degree
of confidence in knowing the true identity of the individual
requesting the information;
``(C) the request for the information is based on a
misrepresentation of fact by the individual requesting the
information relevant to the request for information; or
``(D) the information requested is Internet navigational
data or similar information about a person's visit to a website
or online service.
``(6) Limitation on liability.--Except as provided in section
621, sections 616 and 617 do not apply to any violation of this
subsection.
``(7) Limitation on civil liability.--No business entity may be
held civilly liable under any provision of Federal, State, or other
law for disclosure, made in good faith pursuant to this subsection.
``(8) No new recordkeeping obligation.--Nothing in this
subsection creates an obligation on the part of a business entity
to obtain, retain, or maintain information or records that are not
otherwise required to be obtained, retained, or maintained in the
ordinary course of its business or under other applicable law.
``(9) Rule of construction.--
``(A) In general.--No provision of subtitle A of title V of
Public Law 106-102, prohibiting the disclosure of financial
information by a business entity to third parties shall be used
to deny disclosure of information to the victim under this
subsection.
``(B) Limitation.--Except as provided in subparagraph (A),
nothing in this subsection permits a business entity to
disclose information, including information to law enforcement
under subparagraphs (B) and (C) of paragraph (1), that the
business entity is otherwise prohibited from disclosing under
any other applicable provision of Federal or State law.
``(10) Affirmative defense.--In any civil action brought to
enforce this subsection, it is an affirmative defense (which the
defendant must establish by a preponderance of the evidence) for a
business entity to file an affidavit or answer stating that--
``(A) the business entity has made a reasonably diligent
search of its available business records; and
``(B) the records requested under this subsection do not
exist or are not reasonably available.
``(11) Definition of victim.--For purposes of this subsection,
the term `victim' means a consumer whose means of identification or
financial information has been used or transferred (or has been
alleged to have been used or transferred) without the authority of
that consumer, with the intent to commit, or to aid or abet, an
identity theft or a similar crime.
``(12) Effective date.--This subsection shall become effective
180 days after the date of enactment of this subsection.
``(13) Effectiveness study.--Not later than 18 months after the
date of enactment of this subsection, the Comptroller General of
the United States shall submit a report to Congress assessing the
effectiveness of this provision.''.
(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 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.

a4588e35743572a5aa8fd5e5432068387d46f1f0cb4432632b13eee88682e1f1

(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. Block of information resulting from identity theft
``(a) Block.--Except 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
``(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.
``(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.''.

1457f0c40a0a6e3870f3542f0deb7d6feac16e5f21d7630c5d29dbd08b8624d6

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.''.

3d58964f5d04f4a18c531dcd6fd5031237b86e3143983b7b4e127bb9e50cdbb5

(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 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.''.

1f0ff92af629f54975e6f5a84ec6fc3108a5da6026a19b3dfe2a0cd9eaadbd90

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 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.''.

4a7bf09be03f454b0d731d77ffbd053623c7954c4aaac2cca3fe79b510953b82

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.''.

a9b9fe03d48087536173a29b276dab75aa69bab10d433f1f749f1f9c96309146

(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 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.
INFORMATION

e12160851f95b3bd05630113eae2c44548fab343f4b2f1a8c52a345da85ea014

(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.--
``(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 source.--Subparagraph (A) shall apply
with respect to a consumer reporting agency described in
section 603(p) only if the request from the consumer is made
using the centralized source established for such purpose in
accordance with section 211(c) of the Fair and Accurate Credit
Transactions Act of 2003.
``(C) Nationwide specialty consumer reporting agency.--
``(i) In general.--The Commission 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 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 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) 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 consumer reporting agency shall provide a
consumer report under paragraph (1) not later than 15 days after
the date on which the request is received under paragraph (1).
``(3) Reinvestigations.--Notwithstanding the time periods
specified in section 611(a)(1), a reinvestigation under that
section by a consumer reporting agency upon a request of a consumer
that is made after receiving a consumer report 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. Corporate and technological circumvention prohibited
``The 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.
``(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 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.''.
(d) Rulemaking 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) be issued in final form not later than 6 months after
the date of enactment of this Act; and
(B) 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 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.

3462ffe43c2bb5537d58262c9a113909609f5a4e6e8e5d8842f34e8c2e07114b

(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
``(E) the name of the person or entity that provided the
credit score or credit file upon which the credit score was
created.
``(2) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Credit score.--The term `credit score'--
``(i) means a numerical value or a categorization
derived from a statistical tool or modeling system used by
a person who makes or arranges a loan to predict the
likelihood of certain credit behaviors, including default
(and the numerical value or the categorization derived from
such analysis may also be referred to as a `risk predictor'
or `risk score'); and
``(ii) does not include--
``(I) any mortgage score or rating of an automated
underwriting system that considers one or more factors
in addition to credit information, including the loan
to value ratio, the amount of down payment, or the
financial assets of a consumer; or
``(II) any other elements of the underwriting
process or underwriting decision.
``(B) Key factors.--The term `key factors' means all
relevant elements or reasons adversely affecting the credit
score for the particular individual, listed in the order of
their importance based on their effect on the credit score.
``(3) Timeframe and manner of disclosure.--The information
required by this subsection shall be provided in the same timeframe
and manner as the information described in subsection (a).
``(4) Applicability to certain uses.--This subsection shall not
be construed so as to compel a consumer reporting agency to develop
or disclose a score if the agency does not--
``(A) distribute scores that are used in connection with
residential real property loans; or
``(B) develop scores that assist credit providers in
understanding the general credit behavior of a consumer and
predicting the future credit behavior of the consumer.
``(5) Applicability to credit scores developed by another
person.--
``(A) In general.--This subsection shall not be construed
to require a consumer reporting agency that distributes credit
scores developed by another person or entity to provide a
further explanation of them, or to process a dispute arising
pursuant to section 611, except that the consumer reporting
agency shall provide the consumer with the name and address and
website for contacting the person or entity who developed the
score or developed the methodology of the score.
``(B) Exception.--This paragraph shall not apply to a
consumer reporting agency that develops or modifies scores that
are developed by another person or entity.
``(6) Maintenance of credit scores not required.--This
subsection shall not be construed to require a consumer reporting
agency to maintain credit scores in its files.
``(7) Compliance in certain cases.--In complying with this
subsection, a consumer reporting agency shall--
``(A) supply the consumer with a credit score that is
derived from a credit scoring model that is widely distributed
to users by that consumer reporting agency in connection with
residential real property loans or with a credit score that
assists the consumer in understanding the credit scoring
assessment of the credit behavior of the consumer and
predictions about the future credit behavior of the consumer;
and
``(B) a statement indicating that the information and
credit scoring model may be different than that used by the
lender.
``(8) Fair and reasonable fee.--A consumer reporting agency may
charge a fair and reasonable fee, as determined by the 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 disclosed to the consumer
consistent with subparagraph (C).
``(iii) Enterprise defined.--For purposes of this
subparagraph, the term `enterprise' has the same meaning as
in paragraph (6) of section 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992.
``(C) Disclosures of credit scores not obtained from a
consumer reporting agency.--A person that is subject to the
provisions of this subsection and that uses a credit score,
other than a credit score provided by a consumer reporting
agency, may satisfy the obligation to provide a credit score by
disclosing a credit score and associated key factors supplied
by a consumer reporting agency.
``(D) Notice to home loan applicants.--A copy of the
following notice, which shall include the name, address, and
telephone number of each consumer reporting agency providing a
credit score that was used:
`notice to the home loan applicant
`In connection with your application for a home loan, the lender
must disclose to you the score that a consumer reporting agency
distributed to users and the lender used in connection with your home
loan, and the key factors affecting your credit scores.
`The credit score is a computer generated summary calculated at the
time of the request and based on information that a consumer reporting
agency or lender has on file. The scores are based on data about your
credit history and payment patterns. Credit scores are important
because they are used to assist the lender in determining whether you
will obtain a loan. They may also be used to determine what interest
rate you may be offered on the mortgage. Credit scores can change over
time, depending on your conduct, how your credit history and payment
patterns change, and how credit scoring technologies change.
`Because the score is based on information in your credit history,
it is very important that you review the credit-related information
that is being furnished to make sure it is accurate. Credit records may
vary from one company to another.
`If you have questions about your credit score or the credit
information that is furnished to you, contact the consumer reporting
agency at the address and telephone number provided with this notice,
or contact the lender, if the lender developed or generated the credit
score. The consumer reporting agency plays no part in the decision to
take any action on the loan application and is unable to provide you
with specific reasons for the decision on a loan application.
`If you have questions concerning the terms of the loan, contact
the lender.'.
``(E) Actions not required under this subsection.--This
subsection shall not require any person to--
``(i) explain the information provided pursuant to
subsection (f);
``(ii) disclose any information other than a credit
score or key factors, as defined in subsection (f);
``(iii) disclose any credit score or related
information obtained by the user after a loan has closed;
``(iv) provide more than 1 disclosure per loan
transaction; or
``(v) provide the disclosure required by this
subsection when another person has made the disclosure to
the consumer for that loan transaction.
``(F) No obligation for content.--
``(i) In general.--The obligation of any person
pursuant to this subsection shall be limited solely to
providing a copy of the information that was received from
the consumer reporting agency.
``(ii) Limit on liability.--No person has liability
under this subsection for the content of that information
or for the omission of any information within the report
provided by the consumer reporting agency.
``(G) Person defined as excluding enterprise.--As used in
this subsection, the term `person' does not include an
enterprise (as defined in paragraph (6) of section 1303 of the
Federal Housing Enterprises Financial Safety and Soundness Act
of 1992).
``(2) Prohibition on disclosure clauses null and void.--
``(A) In general.--Any provision in a contract that
prohibits the disclosure of a credit score by a person who
makes or arranges loans or a consumer reporting agency is void.
``(B) No liability for disclosure under this subsection.--A
lender shall not have liability under any contractual provision
for disclosure of a credit score pursuant to this
subsection.''.
(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:
``(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''.

21d174cdbdea76597aed5b4d6cca57ce3cc18ba5b08551a7de1d4c4bfdf14a3c

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--
``(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 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 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 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 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;
(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.

06dbf3b38116338951d399bebd51b692d1142b3f2cb42b7c9f6f539f077acc3e

(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. 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 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).
``(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 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.
(4) Timing.--Regulations required by this subsection shall--
(A) be issued in final form not later than 9 months after
the date of enactment of this Act; and
(B) 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)) 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 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 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 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.

4ec457923233a8f9276876820ae7d367ea9a607664b9d2c2c7277b077ec4fb56

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
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 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.

5a07c8f5134322c9198557dedf00235a0e6798f6cc9d04352e1c19fd2464f100

(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. Disposal of records
``(a) Regulations.--
``(1) In general.--Not 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, 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.''.

d6ae6a80388dc37a59d94c7dac52a1325e58892afc8eede6f5da3816a87cc8e7

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 general.--The notice required under
subparagraph (A) shall be provided to the customer prior
to, or no later than 30 days after, furnishing 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 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 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.

0f839e9ee47eb89928c6799dc334bbbd1f6b52ed891a45e40f541e0e0d419c38

(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)).
``(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;''.

796bb2ab763af9be3accac1d19656e254ab75d9de723d32a0889b585bdf04356

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 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 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 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 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 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;
``(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 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.

1487f7a30210e93bdb384acd728979e8da608187c12bfd28538064db561c1b2f

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) 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) 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 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 the end of the 12-month period
beginning on the date of enactment of this Act, the 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.

621f400814839d05a1ea02f5c6ff2be6e32bc58d6bc75feba4c9f7de11f275ee

(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) 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 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.''.

d7b825b2e5a34d4691a12b166eafd36ab71ab25dabde6b4a10f43133e6568427

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.''.

d2674eee01a68490d4dd5926d9f9fbcaa3a69229e60e859f40aff20bd4d84078

(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
(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 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) 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.''.
(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''.

dfee97692187f42935e98e090d6c880b8f0bede081446c00b71ba2e07a29744c

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''.

baddfc7bc5161b09a960aad120d542440304335b9f2d5adbfc03079a9c90c79d

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 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 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.

86a1fb6fe9ccd272fe97318ad0250f67a5f593d82a8b3e38d831e1940bc8858a

(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.
FINANCIAL SYSTEM

92d2d5ba12860b88cdbe1a84ea95cf4456f0176af2e145c8f0e98332b070c315

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

1f77b2c95f332e5dff9e2e152202747cbdaaafec5c5a790b5419109d0ff343e7

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 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.
(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.

66b609724cf409b9261c33d12d3145793ea0eed1dbafefa46be7c584b5817419

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

2258b81e59349405eae88bc28a441f3eebac302004ef8e09ff3399564e089132

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.

0fb6c7f8825a77f88f66c4707e3b3305314935908554e6b864283fb15a7e4589

(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, 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) 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 Commission shall hold its first meeting
not later than 60 days after the date of enactment of this Act.

7185142558cb7a61e3bdcb9abb20ecc3025ab2f1c9c480294e3c434c3066e998

(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;
(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.
(f) National Strategy.--
(1) In general.--The Commission shall--
(A) 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 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;
(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.

88fc4dffb891a46165a554bfc7effc00c73147787bff81ccd139e9d37c00a5a6

(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 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).

c7af337b2bd3c927b151f6986557337a0776ecf696b0e781164df149ce9c4fac

(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.

cb774ebd6c291f10e4c56a69c33ba9a9cdcd03bc32354710f85100116983c82d

(a) Effectiveness Study.--Not 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.
(3) Report required.--Before 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.

6fac83ddfecc99663670f0284775c1d20212873d3e0ae266baa505bd9d566826

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.

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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.

2b46d7ab28c1f02f149b0feb3ad64d662e5464b3d11cee85ed39c69d0f338fa9

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 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)''.

82da1a991d2f7e5c025cd04b2426b00b3cb2bc0d1e6886d1349c007b0c16fe62

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.''.

c565283602b364134ac895a5a52dda2bc8ff1fc0fa941f24a55d8963292c91f8

TITLE VII

-RELATION TO STATE LAWS

(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) Section 5(1) of Public Law 105-347 (112 Stat. 3211) is
amended by striking ``Judgments which'' and inserting ``judgments
which''.
(B) 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--
(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) is repealed.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

8ae7f048cf0bcc6385689330d4654e49e7960a9cc1b2148fa46c5bf096852492

Fair Credit Reporting bill — HR. 2622

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